Alaska Employment: 347,200 Jobs Puts July Unemployment Rate at 3.8 Percent
FUNTAP P | DREAMSTIME
Alaska’s unemployment rate barely budged from June to July, slowly diverging from the nationwide rate. The Alaska Department of Labor and Workforce Development (DOLWD) puts the seasonally adjusted figure at 3.8 percent, up from 3.7 in June, the same level as April and March.
Growth Slowing
The comparable national rate dipped slightly from 3.6 percent in June to 3.5 percent in July. Alaska typically has higher unemployment than the rest of the country, with brief exceptions during the COVID-19 spike in early 2020 and for one month in early 2022. Since then, state and national figures have converged just below 4 percent.
The unadjusted unemployment rate in the Anchorage area fell to 3.5 percent from June’s 3.9, with the Municipality of Anchorage posting 3.2 percent and the Matanuska-Susitna Borough at 4.4 percent. The state’s lowest unemployment was in the Bristol Bay Borough at 1 percent, followed by the Aleutians East Borough at 1.4 percent, thanks to Bering Sea fisheries.
Total number of jobs in Alaska was up by 1 percent year over year, an increase of 3,600 since July 2022. Growth is slowing from the previous month’s 1.9 percent year-over-year gain. DOLWD estimates total nonfarm employment at 347,200.
Most Alaska industries grew or remained flat with three exceptions. Manufacturing, which is primarily seafood processing in Alaska, was down 1,900 jobs over the year, an 8.5 percent drop. July is the peak employment month due to salmon harvesting, but both harvest and processing volume can vary considerably year to year. The other sectors with annual job losses were information and financial activities, each down by 100 over the year.
The federal government’s job count was up by 600 compared to July 2022. Local government, which includes public schools, was up by 400 jobs, and state government, which includes the University of Alaska, was up by 300.
Leisure and hospitality added 2,100 jobs over the year, benefiting from a record-setting number of cruise ship visitors. Healthcare added 600 jobs, followed by oil and gas and the professional and business services sectors with 400 each. The increase in oil and gas represents 5.7 percent annual growth, the largest of any industry sector.
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.