ALASKA ECONOMIC TRENDS JULY 1998 Inside: 9-Construction Generates Employment Surge ’81 ’82 ’83 ’84 ’85 ’86 ’87 ’88 ’89 ’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 Annual Sales Tax Revenue (July-June) 1 Sales Tax Revenues Help Fill the City of Nome’s Coffers 1/ In January 1996 sales tax increased from 3% to 4% Source: City of Nome. The Nome Census Area- ONE HUNDRED YEARS LATER BY BRIGITTA WINDISCH-COLE At the turn of the century, gold discoveries pre- cipitated a stampede of fortune seekers to the Bering Strait region along Alaska’s northwest coast. Thousands of would-be miners landed at a shoreline location that was to become the community of Nome. Tony Knowles, Governor State of Alaska Alaska Department of Labor /1 TRENDS
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1/ In January 1996 sales tax increased from 3% to 4%Source: City of Nome.
The Nome Census Area- ONEHUNDREDYEARSLATERBY BRIGITTA WINDISCH-COLE
At the turn of thecentury, golddiscoveries pre-cipitated a stampedeof fortune seekers tothe Bering Straitregion along Alaska'snorthwest coast.Thousands of would-beminers landed at ashoreline location thatwas to become thecommunity of Nome.
Tony Knowles, Governor State of Alaska Alaska Department of Labor
/1
TRENDS
2 ALASKA ECONOMIC TRENDS JULY, 1998
With this July issue of Alaska Economic Trends, theDepartment of Labor is witnessing the disappearanceof two familiar faces—the face of Trends itself aswell as that of its designer. Jim Fowler, retired June30. Over the years, Jim's covers became a hallmarkof our economic and labor market information. Histopical cover cartoons drew readers into the moreserious material of our lead stories. Jim has beenwith the Labor Department for about 19 years, but itwould take a calculator and some knowledge ofdepartment history to figure out just how manyTrends covers that would be. Jim leaves behind aredesigned Trends, with a new face, which readerswill notice with this issue.
Alaska EconomicTrends is a monthly
publication dealing witha variety of economic-
related issues in thestate.
Alaska EconomicTrends is funded by
the EmploymentSecurity Division and
published by theAlaska Department of
Labor, P.O. Box 21149,Juneau, Alaska 99802-
1149. For moreinformation, call the
DOL PublicationsOffice at (907) 465-
6019 or email theauthors.
Material in thispublication is public
information and, withappropriate credit, maybe reproduced without
John Boucher is an economist with the Research and AnalysisSection, Administrative Services Division, Alaska Departmentof Labor. John is located in Juneau.
[email protected] Windisch-Cole is an economist with the Research andAnalysis Section, Administrative Services Division, AlaskaDepartment of Labor. Brigitta is located in Anchorage.
Alaska Population Overview 1997Estimates is now available from the AlaskaDepartment of Labor, Research and AnalysisSection. This publication presents the lateststate and sub-state population estimates.Other examples of information aboutAlaska's population include population byage, male/female, and by race and ethnicity.To receive a copy of the publication, contactthe DOL Research and Analysis Section at(907) 465-4500 or email the SubscriptionsOffice at the address listed above.
t the turn of the century,gold discoveries pre-cipitated a stampede offortune seekers to the
Bering Strait region along Alaska'snorthwest coast. Thousands of would-be miners landed at a shoreline locationthat was to become the community ofNome. In 1900, according to the U.S.Census, the city of Nome was the largestsettlement in Alaska, with 12,488people. Local chronicles tell that, duringthe summer months of 1901, thispopulation may have reached 20,000.As elsewhere, Nome's gold rush lastedonly a few summers. By 1910, itspopulation had shrunk to 3,200residents. In 1920, only 852 people wererecorded as living in the town. However,residents did remain, and Nome is nowone of the oldest commerce and tradecenters in the state. In 1997, the cityhad 3,595 residents and ranked as thetwentieth largest among Alaska'sinhabited places. The Nome CensusArea includes 16 communities besidesthe city of Nome. Altogether 9,178inhabitants live in the area. (SeeExhibit 2.)
Today, gold is still mined in the Nomearea, though on a much smaller scale.Tourism has evolved into a big localbusiness. Government is a largeemployer, but private sectoremployment has grown. Subsistence,as in most of rural Alaska, continues toplay an important role.
The Fame of Nome
News of the 1898 gold discoveries atAnvil Creek spread quickly amongprospectors who had been seeking theirfortunes in the Klondike of Canada'sYukon Territory. After gold was foundon the beaches of Nome in 1899,
thousands of fortune seekers arrived onsteamships from San Francisco andSeattle. Many of those opportunists,their imaginations filled with visions ofgold-strewn beaches, expected to make
a quick fortune. Other entrepreneurshad more realistic views on how to buildwealth, and concentrated on sellingsupplies, groceries and services to theprospectors. As a result of the stampede,
The Nome Census Area-
A
One HundredYears Later
AnnualAverage
1990 1997 Growth Rate
Nome Census Area 8,288 9,178 1.5%Brevig Mission city 198 261 4.0%Council 8 0Diomede city 178 174 -0.3%Elim city 264 291 1.4%Gambell city 525 653 3.2%Golovin city 127 152 2.6%Koyuk city 231 272 2.4%Nome city 3,500 3,595 0.4%Port Clarence CDP 26 24 -1.2%St. Michael city 295 341 2.1%Savoonga city 519 622 2.6%Shaktoolik city 178 226 3.5%Shishmaref city 456 542 2.5%Solomon 6 0Stebbins city 400 513 3.6%Teller city 232 265 1.9%Unalakleet city 714 803 1.7%Wales city 161 162 0.9%White Mountain city 180 193 1.0%Remainder of Nome Census Area 90 89 0.0%
Source: Alaska Department of Labor, Research and AnalysisSection.
Indigenous people settled the area over4,000 years before gold was discovered,and their ethnicity is reflected in thearea's demographics. With the exceptionof Nome, the vast majority of the area'spopulation, nearly 81 percent, are AlaskaNatives. (See Exhibit 3.) Area Nativescan trace their cultural roots to one ofthree distinct groups of Inuit (Eskimo)
people. While residents on the SewardPeninsula mostly identify with theInupiat culture, descendants of theCentral Yupiks tend to live south ofUnalakleet. Most Inuit people withSiberian Yupik ancestry live on St.Lawrence Island and are closely relatedto the Chukotska people of the RussianFar East in culture and language.
the town of Nome was founded in 1901and became the fifth Alaska settlementto incorporate as a city. After the goldrush, several hundred settlers remainedin the area. Some continued to minegold on their own, while others workedfor the more profitable miningcompanies.
Still others developed commerce orprovided services to the residentpopulation. In spite of the harsh climateand six major catastrophes that eachdestroyed the town (fires in 1905 and1934 and violent storms in 1900, 1913,1945 and 1974), residents persevered.In addition, Nome's population enduredthe 1918-1925 influenza epidemic anddiphtheria outbreak, which helpedcreate the notoriety of the Iditarod Trail.Every year since 1972, dog mushershave raced dog teams from Anchorageto Nome to commemorate the 1925delivery of life-saving serum.
A vast pieceof Arctic Tundra
The U.S. Census Bureau boundariesaround the Nome Census Area enclose a23,013 square mile section of tundralandscape in northwest Alaska. Ingeographic terms, the area includes amajor portion of the Seward Peninsulaand a narrow southern stretch along theNorton Sound coast. The area extendswest into the Bering Sea to encompassthe three islands of St. Lawrence, Kingand Little Diomede. Some call the entireNome area the Bering Strait region.
Seventeen communities of varying sizesare inhabited today. (See Exhibit 2.)Savoonga and Gambell are located onSt. Lawrence Island. Diomede City(Inalik) is the only community on LittleDiomede Island. Nearly 16 percent ofthe Nome Census Area's populationresides on these two remote islands. Onthe mainland, the other communitiesare located close to or along the coastand can only be reached by air or, duringsix months of the year, waterways.During winter, a frozen or snow-coveredtundra permits travel by snowmobile ordog sled.
Alaska Nome CA Population 1997 611,300 9,178
The population is younger, with more persons per household Median age (1997) 32.2 27.3 Persons per household (1997) 2.7 3.3
...and there are more children and more seniors (1997) Percent under 5 years old 8.5 10.9 Percent school age population (5 to 17) 23.2 28.9 Percent adult workforce population (18 to 64) 63.2 54.5 Percent seniors (65 years & over) 5.1 5.7
...and fewer women . Percent female (1997) 47.9 47.0
Demographics of the region (1997) Percent Native American 16.7 80.6 Percent White 74.2 18.1 Percent African American 4.5 0.6 Percent Asian/Pacific Islander 4.6 0.7 Percent Hispanic 4.5 1.2
Higher unemployment levels (1997) Percent of all 16+ in labor force/1 72.2 57.6 Percent unemployed 7.9 11.7
Income measurements Personal per capita income (1996) $24,597 $17,754 Wage and salary employment $32,781 $26,967 (annual average wage 1997)
Educational attainment (1990) Percent high school graduate or higher 86.6% 65.0% Percent bachelor's degree or higher 23.0% 13.8%
1/based on 1997 population estimatesSources: Alaska Department of Labor, Research and Analysis Section. U. S. Department of Commerce, Bureau of Economic Analysis.
3A Snapshot of
the Nome CensusArea
CurrentStatistics and
CensusInformation
ALASKA ECONOMIC TRENDS JULY, 1998 5
A typical westernAlaska region
In many ways, the economy of the NomeCensus Area mirrors that of otherwestern Alaska coastal areas. Economicactivity is concentrated in the regionalhub. The City of Nome, therefore,benefits not only from providing servicesand trade to its own population, but alsoto residents in outlying communities.Over 1,400 wage and salary jobs (nearly40 percent) in the Nome Census Areaare connected with either the services orretail industry. Among services, healthcare dominates. The Norton SoundHealth Corporation is the second largestemployer in the region, averaging over400 employees. (See Exhibit 4.) Thisorganization is the primary health careprovider for the area's Alaska Nativesas well as for the rest of the area'spopulation. Though headquartered inNome, many of the corporation'semployees work in the smallercommunities. The visitor industry hasspurred retail, services andtransportation employment. Unlikemost other areas in Alaska, Nome has apopular and busy winter visitor season.
Tourism gives a big boostto Nome's economy
Probably the most important attractionto Nome is the legendary Iditarod TrailSled Dog Race. Today's route is a 1,049-mile trail that starts at Wasilla in theMatanuska Valley of SouthcentralAlaska and ends in Nome. Every year,in March, thousands of visitors come toNome to watch the dog teams sprintacross the finish line. The final leg of thetrail winds along the Norton Sound coastthrough Unalakleet, Koyuk, Golovin,Shaktoolik, and White Mountain, allsettlements of the Nome Census Area.The month of March is filled with specialevents in Nome. During the Iditarod,the town hosts the largest regionalbasketball tournament in the state. Mostvillages of western Alaska and eventeams from Anchorage participate.
In summer, many visit Nome tocommemorate its colorful past or to enjoynature. Bird watchers come to observerare migratory birds. The NomeConvention and Visitors Bureau noted
that, in 1994, about 11,800 visitors camewith organized tours. In addition, localvisitor industry observers report thatthe number of independent travelers isrising. The city's coffers have benefitedfrom increased visitor spending. A salestax (currently at 4%) has become animportant source of public revenue. (SeeExhibit 1.)
Native corporations arebig employers
Regional and local Native corporationshave created many jobs. Three of thesecorporations, or their affiliates, areamong the area's largest employers. Theyinclude Norton Sound HealthCorporation, Kawerak Inc., and Bering
Location/ Ann. Avg.Rank Employer Headquarters Employment
19971 Bering Strait School District Unalakleet 4732 Norton Sound Health Corporation Nome 4123 Kawerak Inc. Nome 1564 Nome Public Schools Nome 1255 Alaska Gold Company Nome 686 Ryan Air Service Nome 637 Stebbins City Council Stebbins 558 City of Nome Nome 519 Bering Straits Regional Housing Authority Nome 45
10 Nome Joint Utilities Nome 4511 Alaska Commercial Company Nome 4412 Alaska Department of Corrections Nome 4213 Alaska Department of Transportation Nome 41
and Public Facilities14 MJW Inc. (Board of Trade Saloon) Nome 4115 Olson Air Service Inc. Nome 3916 Shishmaref IRA Shishmaref 3917 Bering Air Incorporated Nome 3718 Cape Smythe Air Service Inc. Nome 3419 City of Teller Teller 3020 Gambell Common Council Gambell 2721 Nome Nugget Inn Nome 2722 University of Alaska Fairbanks Nome 2723 Golovin Fire Department Bingo Account Golovin 2624 City of Brevig Mission Brevig Mission 2525 City of St. Michael St. Michael 2526 Alaska Airlines Inc. Nome 25
Note: Firms with identical employment ranked by unrounded employment.Source: Alaska Department of Labor, Research and Analysis Section.
4 Employers with
25 or MoreEmployees in the
Nome CensusArea
6 ALASKA ECONOMIC TRENDS JULY, 1998
Straits Regional Housing Authority. (SeeExhibit 4.) These corporations wereestablished when the Alaska NativeClaims Settlement Act of 1971 returnedland ownership and its use to theindigenous people. The area's regionalcorporation is the Bering Straits NativeCorporation (BSNC). It owns developedreal estate in Nome and Valdez, a carrental agency, a construction firm, andother businesses. The nonprofitextension of BSNC is Kawerak Inc.,which provides educational, cultural, andsocial services. In addition, this multi-faceted organization deals with landmanagement, natural resource andsubsistence issues. The villagecorporations and Nome's own SitnasuakNative Corporation also administer landholdings. These corporations and theirnonprofit extensions are involved in localbusiness development, social and tribalissues.
Airways are the mosttraveled routes
Transportation, mostly airline andcommunications related, is the area'sthird largest private sector employer,providing 9.3% of all payroll jobs. (SeeExhibit 5.) About a dozen airlines ofvarious sizes are headquartered, or havestations, in Nome. The smaller onessupport the outlying communities, whilelarger airline companies connect the areawith other neighboring regional centers,Fairbanks or Anchorage. A distinct Nomeairway, available as a charter service,opened an entry to the Russian Far East(the Chukotsk Peninsula) after the IronCurtain was lifted. Not only the closeproximity to Russia but also the renewedfamily relationships among the Yupikpeople, once kept apart by internationalpolitics, have helped to build this specialgateway.
School-related jobs existin nearly everycommunity
The public sector plays a dominant rolein the Nome area's employment scene.About 40 percent of all wage and salaryearners hold public sector jobs. (SeeExhibit 5.) Federal and stateemployment has decreased some duringthe past seven years. (See Exhibit 7.)
Service ProvidersDominate
Private SectorEmployers
19975
1/ Other: construction and manufacturing industry employment
2/ Transportation, Communications, Utilities
3/ Finance, Insurance, Real Estate
Source: Alaska Department of Labor, Research and Analysis Section.
Other /12.6%
T.C.U./29.3%
Trade12.3%
FIRE/36.5%Services
28.0%
Mining2.1%
Government39.2%
But local government, mostly school-related, has grown. School enrollmentshave risen nearly every year, althoughenrollment levels in the city of Nomehave varied. (See Exhibit 6.) Thisparallels the area's general populationtrend. While population in ruralcommunities has grown, mainly throughnatural increase, the fluctuating cityschool enrollment suggests that Nome'spopulation is more transient. The BeringStrait School District, headquartered inUnalakleet, is the area's largestemployer. (See Exhibit 4.) The district'sworkforce is spread throughout 16 bushcommunities. In smaller settlements,these full or part-time jobs are considered
premium because of their higher wagesand stability. In general, wage and salaryjobs are scarce in rural northwest Alaska,and the school payrolls provide neededcash.
Nome's oldest industryfaces a downturn
Nome's gold mining industry, in its 100-year existence, has experienced manyups and downs. Both World Wars I andII during this era virtually brought goldproduction to a standstill. Industrydownturns have led to other shut downs—a fate that will soon recur. AlaskaGold Company, the state's largest placer
ALASKA ECONOMIC TRENDS JULY, 1998 7
mine, has announced a closure that willaffect nearly 70 miners. At this time,gold prices, currently hovering around$300 per ounce, are too low to sustainthe operation. The mine's closure willhave a negative effect on the area'seconomy because about two percent ofall wage and salary jobs will be lost. Inmonetary terms, this effect will morethan double, as these jobs provided overfour percent of the area's total wageearnings in 1997. Indirect effects willalso be felt as support industries lose abig customer. In the near future, it willbe up to the few independent placerminers, mostly family businesses, touphold gold mining as a Nome tradition.A change in the price of gold, however,could make the shut down of AlaskaGold Company temporary.
Subsistence andcommercial fisheries mix
Hunting and personal use fishing havebeen important self-sustainingeconomies for many years. In the NomeCensus Area, wildlife is abundant andhunting moose, sea mammals and otherwildlife is a long-standing tradition. Thissubsistence hunting and fishing lifestyle
City of Nome Schools 751 776 773 724 712 719 716 771 781
Bering Strait School District 1,334 1,347 1,430 1,473 1,526 1,603 1,673 1,673 1,727
8 ALASKA ECONOMIC TRENDS JULY, 1998
also helps to stretch cash dollars in anarea where grocery bills run high.Fishing has evolved over the years to beboth of subsistence and commercial use.Commercial herring, salmon, halibut andcrab harvests now help inject cash intothe area's communities. During the 1996season, for example, over 210 peoplefished commercially and their harvestyielded $2.3 million. As elsewhere,Bering Strait and Norton Sound fishershave felt the downturn of market pricesfor salmon and other species, and, lately,harvest volume in several fisheries hasbeen disappointing.
The Bering Sea fisherybenefits all Nome areacommunities
A new fishery development introducedthe Community Development Quota(CDQ) program in 1992 to assure thatresidents reap more of the benefits fromthe adjacent Bering Sea. Seven CDQgroups were formed in western Alaskato manage a special fishing harvestallocation and distribute the proceedsamong their member villages. Currently,
these groups share a 7.5% annualexclusive harvest right for several highseas fisheries. This year, crab became aCDQ species with an introductory harvestshare of 3.5%, which will increase to a7.5% allotment by the year 2000. In theBering Strait region, the Norton SoundEconomic Development Corporation(NSEDC) manages the CDQ program.All settlements in the Nome Census Areaare members of this Norton Sound CDQgroup, with the exception of Shishmaref,which is not located on the Bering Sea.Shishmaref residents, however, do receivescholarships and work training fromNSEDC. Between 1992 and 1997, theCDQ program generated nearly $26.6million for the region.
Norton Sound Economic DevelopmentCorporation has initiated developmentprograms for its member villages tomodernize and market the local fisheries,build a sound infrastructure, promoteeducation and design work trainingprograms. Savoonga, for example,received funds to build a cold storageplant to develop its halibut fishery.Recently, the organization purchased 50percent of Glacier Fisheries LTD, which
operates two catcher/processing vesselsin the Bering Sea.
The outlook for theNome area
Need is going to drive the developmentof the area's infrastructure. Water andsewer system upgrades in Nome willcontinue this year. A senior housingproject in Nome and the clean-up workof a former military site are also on theconstruction schedule. The BeringStraits Native Corporation will startto build a $3.3 million hotel this year.Plans have been submitted by the ArmyCorps of Engineers to constructnavigation improvements at the portin Nome that could cost nearly $25million. If commerce improves inRussia's Far East, the visitor industrycould expand and even crossinternational borders. The CommunityDevelopment Quota program willexpand, thereby stimulating economicdevelopment in member communities.Moreover, there are always hopes thatgold prices will recover sufficiently forAlaska's largest placer mine operatorto resume production.
ALASKA ECONOMIC TRENDS JULY, 1998 9
laska's unemployment rate fell a full percentage point in April, comingin at 6.0%. April was the fourth consecutive month that the statewideunemployment rate set an all-time low for the month. In April 1989, the
workforce that was needed to respond to the Exxon Valdez oil spill clean-uphelped push the state's unemployment rate down to 6.6%. Last year, theunemployment rate for April was significantly higher at 8.7%. With morethan one-quarter of 1998 in the books, the unemployment rate is on pace toshatter the previous annual low of 6.7% set in 1989. (See Exhibit 1.) A surge inoil industry activity and a healthy national economy are two importantfactors in the current record low levels of unemployment.
ConstructionGenerates
EmploymentSurge
AlaskaEmploymentScene
BY JOHN BOUCHER
A
The record-setting pace of theunemployment rate moved Alaska closerto the national unemployment rate, butit was still well above the nation's becauseof the extraordinary performance of thenational economy. The U.S. civilian notseasonally adjusted unemployment rateset a 25-year low in April at 4.1%. (SeeExhibit 6.)
Alaska's urban areas led the way inApril's jobless statistics. Anchorage,Fairbanks and Juneau all hadunemployment rates below the statewideaverage, while the Kenai and Matanuska-Susitna Boroughs both saw large dropsin their unemployment rates. SouthwestAlaska was the primary exception to theoverall trend of dropping unemploymentrates in April. A slowdown in employmentrelated to the winter fisheries was theprimary cause of higher unemploymentrates in parts of that region. The YakutatBorough, at 15.2% unemployed, had thehighest unemployment rate in the state.Yakutat is suffering a downturn inlogging activity related to the Asian crisis.
1Unemployment On
Record-Low Pacemonthly unemployment rates:
1998 compared to 1989
Source: Alaska Department of Labor, Research and Analysis Section.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0.0%
p/ denotes preliminary estimates.r/ denotes revised estimates.Government includes employees of public school systems and the University of Alaska.
Average hours and earnings estimates are based on data for full-time and part-time production workers (manufacturing)and nonsupervisory workers (nonmanufacturing). Averages are for gross earnings and hours paid, including overtimepay and hours.
A wide variety of activity is pushingAlaska's construction industry toanother strong performance in 1998.Anchorage-area construction work ispropelling the state's employmentnumbers forward. The valuation ofAnchorage construction is projected totop the $400 million mark, which wouldbe the highest valuation since the tailend of the building boom that occurredin the mid-1980s. Residential,commercial and public constructionprojects are contributing to the mix inAnchorage. Residential units areexpected to top 1,500 during the year,which would also be the highest totalsince 1986. Commercial and industrialprojects underway, such as the MarriottResidence Inn, the 350-room Columbia-Sussex hotel, the Federal Expressfreight-handling facility and a 16-screentheater complex are pumping upAnchorage's construction counts. Otherprojects such as the Native HeritageCultural Center, improvements atAnchorage International Airport, andpotentially the Alaska Seafood Centerwill also move ahead this summer.Public construction is perking up asnumerous Anchorage-area highway andstreet jobs are paving the way toemployment gains. The largest dollar-wise are the $38 million Whittier accesstunnel and the $20 million Minnesota/International Airport Road interchange.Anchorage's military base constructionis also keeping the area workforce busyon the nearly completed Elmendorfhospital and a new base exchange/commissary facility.
Outside of Anchorage, the constructionpicture is not as vigorous, but it is stillperforming fairly well. Oil industryactivity, particularly construction of oilprocessing modules for the North Slope,will be a big contributor to employmentboth inside and outside of Anchorageduring the next year or more. The onlyreal negative in Alaska's constructionpicture in April was the over-the-yearlosses being posted in Interior Alaska.This loss is attributable to the end ofconstruction activity associated with theHealy Clean Coal project.
5Alaska's Per CapitaIncome Falls Below
National Average
Source: U. S. Department of Commerce, Bureau of Economic Analysis.1970 1976 1982 1988 1997
80%
100%
120%
140%
160%
180%
200%Alaska’s per capita income as % of U.S. average
Against the backdrop of an already busyconstruction season, the State of Alaskacommitted to one of the more ambitiouscapital expenditure packages in recentyears, which will result in additionalconstruction activity both this year andnext. In a $700 million package, thestate committed funds to a variety ofprojects from school construction andmaintenance projects to economicdevelopment projects.
Per capita income figuresreleased
The U.S. Department of Commerce,Bureau of Economic Analysis, releasedpreliminary per capita income figures,and Alaska slipped one notch in thestate rankings from 18th to 19th. Percapita income in Alaska has been on asteady decline since the mid-1980s, and1997 marked the first time that thestate's per capita income has fallen belowthe national average. (See Exhibit 5.)
After a paltry 1.6% rate of income growthin 1996, income growth rebounded to3.1% in 1997. Unlike 1996, incomegrowth surpassed the rate of inflation.Still, Alaska was among the five slowestgrowing states in terms of per capitaincome growth last year. Slower wagegrowth, caused by the decline in highpaying oil and gas and timber industryjobs in 1997, was a primary cause for therelatively slow income growth. On thehorizon, 1998 could be a good year forAlaska's per capita income numbers,since the oil industry has reboundedstrongly and the economy is currentlygrowing at the fastest rate since theearly 1990s.
April posts seasonal surge
Alaska's economy geared up for anotheractive summer in the month of April, asthe state added 3,800 jobs. Theconstruction industry led the way,accounting for over 1,100 of the job gain.
ALASKA ECONOMIC TRENDS JULY, 1998 13
6 Percent Unemployed
p/ r/Not Seasonally Adjusted 4/98 3/98 4/97
United States 4.1 5.0 4.8
Alaska Statewide 6.0 7.0 8.7 Anch./Mat-Su Region 4.9 5.5 7.2 Municipality of Anchorage 4.4 4.8 6.2 Mat-Su Borough 7.4 8.6 11.9 Gulf Coast Region 9.5 11.0 14.2 Kenai Peninsula Borough 10.8 12.8 15.4 Kodiak Island Borough 5.3 5.9 11.3 Valdez-Cordova 9.9 10.6 13.1 Interior Region 6.4 7.7 9.8 Denali Borough 7.4 12.8 14.3 Fairbanks North Star Borough 5.8 6.8 9.0 Southeast Fairbanks 10.9 12.8 15.6 Yukon-Koyukuk 14.0 16.3 17.1 Northern Region 7.8 7.7 11.7 Nome 9.2 8.4 14.1 North Slope Borough 4.3 5.0 5.6 Northwest Arctic Borough 11.0 10.8 16.9 Southeast Region 6.8 8.9 8.6 Haines Borough 11.6 15.4 13.8 Juneau Borough 5.0 6.4 6.5 Ketchikan Gateway Borough 7.2 8.7 9.5 Prince of Wales-Outer Ketchikan11.0 15.3 14.0 Sitka Borough 4.8 6.6 6.8 Skagway-Hoonah-Angoon 8.0 11.6 10.1 Wrangell-Petersburg 9.4 12.7 10.2 Yakutat Borough 15.2 18.5 12.2 Southwest Region 7.0 6.8 8.7 Aleutians East Borough 2.3 1.5 3.8 Aleutians West 4.4 3.5 5.2 Bethel 7.2 7.0 9.2 Bristol Bay Borough 7.0 9.0 10.5 Dillingham 5.9 6.2 8.2 Lake & Peninsula Borough 9.6 10.3 10.7 Wade Hampton 13.3 13.0 14.3Seasonally Adjusted United States 4.3 4.7 5.0 Alaska Statewide 5.7 6.0 8.3
Unemployment Ratesby Region & Census
Area
p/ denotes preliminary estimates
r/ denotes revised estimates
Benchmark: March 1997
Data presented here are intended to show the relative condition ofAlaska's labor force for the reference month. Data published for prioryears are not necessarily comparable to current information, whichdoes not reflect benchmark revisions.
The official definition of unemployment currently in place excludesanyone who has not made an active attempt to find work in the four-week period up to and including the week that includes the 12th ofthe reference month. Due to the scarcity of employment opportunitiesin rural Alaska locations, many individuals do not meet the officialdefinition of unemployed because they have not conducted an activejob search. These individuals are considered not in the labor force.
Source: Alaska Department of Labor, Research and AnalysisSection.
Anchorage-area construction projectsare generating a good portion of thesurge in construction activity, and recentdevelopments indicate the constructionsector will continue on a hot streakthrough at least the end of the year.Meanwhile, a thriving national economyand a growing Alaska job market arekeeping the state's unemployment onpace to set a record low.
(Continued from page 12)
14 ALASKA ECONOMIC TRENDS JULY, 1998
Online inAugust...
Information about employment and trainingservices at local Alaska Employment Service(AES) offices, and a look at their surroundingareas, will be available on the AlaskaDepartment of Labor's Internet site inAugust. The Internet address for the AEShomepage is
of.htmVisitors to each local office site will beable to link to other agencies and activities inthe region as well as go on virtual photographic toursto points of interest. Currently, sites at Nome, Tok, Valdez,Homer, and Glennallen are nearly ready for public display.Staff in the Employment Security Division will beworking on the project over the comingmonths until all 19 local offices havetheir own individual Internetsites.
ALASKA ECONOMIC TRENDS JULY, 1998 15
Anchorage: Phone 269-4800
Bethel: Phone 543-2210
Dillingham: Phone 842-5579
Eagle River: Phone 694-6904/07
Mat-Su: Phone 352-2500
Fairbanks: Phone 451-5967
Glennallen: Phone 822-3350
Kotzebue: Phone 442-3280
Nome: Phone 443-2626/2460
Tok: Phone 883-5629
Valdez: Phone 835-4910
Kenai: Phone 283-2927
Homer: Phone 235-7791
Kodiak: Phone 486-3105
Seward: Phone 224-5276
Juneau: Phone 465-4562
Petersburg: Phone 772-3791
Sitka: Phone 747-3347/3423/6921
Ketchikan: Phone 225-3181/82/83
Alaska Employment Service
The Alaska Department of Labor shall foster and promote thewelfare of the wage earners of the state and improve their working
conditions and advance their opportunities for profitable employment.