Alaska’s economy remains among the nation’s lowest performing, yet other indicators suggest potential for growth and recovery in 2023.
Nearly recovered from the COVID-19 slump, Alaska’s resource industries are optimistic for 2023—if enough workers can be found to fill job openings.
High inflation in 2022 means higher pay in 2023. Thanks to an automatic adjustment, the state minimum wage is rising from $10.34 per hour to $10.85.
The US Department of Housing and Urban Development crunched numbers for 2020 and found average prices increased 8 to 9 percent, with demand exceeding supply.
The fifth annual survey by the Alaska Small Business Development Center at UAA finds a more positive attitude among business owners, compared to the challenges of the last two years.
A forecast for the Alaska economy in 2022 anticipates approximately the same 2.2 percent job growth as 2021, unless federal infrastructure spending rolls out quickly.
When 2022 arrived, Alaskans working for minimum wage received an annual inflation adjustment of zero, holding their pay at $10.34 per hour.
The state Department of Labor & Workforce Development puts the seasonally adjusted rate at 6.3 percent in September, a slight decrease from August and approximately the same level of unemployment Alaska saw from 2015 through 2017.
While nothing can be certain, projections are that by the second half of the year most of the city’s major industries will see some growth.
Economists were cautiously optimistic in their predictions for what 2020 would hold for the state’s economy. What none of them saw coming—what nobody saw coming—was the COVID-19 pandemic and the crippling economic damage it would cause.