Alaska Employment: 324,300 Jobs Drops March Unemployment to 4.6 Percent
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An increase of nearly 9,000 jobs compared to a year before kept the state’s unemployment rate from rising. The Alaska Department of Labor and Workforce Development puts the seasonally adjusted figure for March at 4.6 percent, down from 4.7 in February. A year earlier, the rate was 3.8 percent.
2.6 Percent Job Growth
The statewide rate in March compares to the national rate of 3.8 percent, which is a slight decrease from February. Rates have more than recovered from levels prior to the COVID-19 pandemic; unemployment rates were typically higher than 6 percent prior to the oil price crash of 2014.
The unadjusted unemployment rate in the Anchorage area fell to 4.3 percent in March, down from February’s 4.8. The region combining Anchorage and Matanuska-Susitna Borough had the lowest unemployment of any region in the state. The Southwest region saw the lowest unadjusted rates in the Aleutians East at 2.5 percent and Aleutians West at 2.1 percent, yet the region also includes the Kusilvak Census Area with the highest unemployment at 16 percent.
The total number of nonfarm jobs in March was 324,300, up by more than 2,000 from February and an increase of 8,900 compared to March 2023. Jobs added in the past year represent 2.8 percent growth, faster than the 2.6 percent growth rate in February. Private sector employment grew by 3.2 percent since last year, outpacing government job growth of 1.8 percent.
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May 2024
The industry sector that lost the most jobs was information services. After months of a flat workforce, the number dropped from 4,600 to 4,400, or a 4.3 percent contraction. The leisure and hospitality sector also lost 200 jobs, year over year, out of a larger pool of workers, for 0.6 percent shrinkage. And the manufacturing sector counted 12,200 jobs in March, 100 fewer than the year before, for a 0.8 percent loss.
Meanwhile, North Slope activity boosted the construction sector to double-digit growth: 16.4 percent, adding 2,400 workers more than March 2023, for a total of 17,000. Healthcare and the transportation, warehousing, and utilities sectors each grew by more than 1,000 workers, too. The mining and logging category, which includes oil and gas, added 1,200 jobs, yet just 500 of those are attributed to oil and gas.
The relatively large percentage gain in job totals ranks Alaska among the fastest-growing states. Only Idaho (3.7 percent) and Nevada (3.4 percent) had high year-over-year growth rates. However, Nevada still struggles with a 5.1 percent unemployment rate, the second highest, surpassed only by California’s 5.3 percent.
Making History
The track of oil and gas development in Alaska shows the footprints of bold companies and hard-working individuals who shaped the industry in the past and continue to innovate today. The May 2024 issue of Alaska Business explores that history while looking forward to new product development, the energy transition for the fishing fleet, and the ethics of AI tools in business.