Alaskanomics

Job Hoppers in Alaska- A Department of Labor study

The Alaska Department of Labor and Workforce Development publishes a monthly report called Alaska Economic Trends. This month the main article focused on the concept of “job hoppers”, specifically in Alaska. For the purpose of the study, the state defined a job hopper as someone who has worked for at least three different employers in a 10-year period for less than two years each and has never stayed a single employer for four year or more during that time. Individuals also had to have been an Alaska resident at some point during the time studied.

There has not been regularly published information on the national numbers, but here in Alaska, it is clear that job hopping is more common in younger age groups and the overall number of job hoppers has decreased since 2001. In 2011, over 50% of Alaska workers between 20 and 24 could be considered job hoppers, while that number dropped significantly to 26% for workers from age 35 to 44. It’s not difficult to see that younger workers change jobs more frequently while they are in school or training programs. Younger workers will often take jobs that they do not intend to stay in long, and use them as stepping stones into different, longer term positions. The report notes that each age group had a decrease in job hoppers from 2001 to 2011. This could be because workers are less likely to quit their jobs during or immediately following a recession.

The Department of Labor also looked at job hoppers by industry and found that in Alaska construction had the highest amount of job hoppers across all age groups. This is not surprising because construction is often seasonal and based on a specific project. Alaska’s economy relies heavily on seasonal workers. Construction, tourism and fishing are all strong industries in the state, but are extremely seasonal, which makes a true job hopping comparison difficult. For many seasonal workers, the decision to job hop isn’t voluntary, rather workers must go where there are jobs. Many of the industries that have a high percentage of job hoppers are either seasonal or relatively low paying; sometimes both.

As we move forward and out the recession, it will be interesting to see if workers who are currently in their 20s and early 30s will settle into a career at the same rate as their predecessors, or if they will continue to job hop.

For the complete Department of Labor article and related topics, please visit www.labor.alaska.gov/trends

Anchorage Chamber Lunch with Senator Lisa Murkowski

(Photo Credit: Anchorage Chamber of Commerce)

Today, the Anchorage Chamber hosted US Senator Lisa Murkowski at its weekly, Monday Forum. The Senator shared that there was a large number of high ranking visitors that we have seen in the state this month and how the visits were important to the political climate. In August, the Chief of the US Forest Service, Administrator of the EPA, the acting Under Secretary of Commerce for NOAA, the Air Force Chief of Staff, the Commandant of the Coast Guard  and the Secretary of the Interior have all visited, or will visit, Alaska and learned how their respective agencies work within the Alaskan environment.

Senator Murkowski continued by discussing the importance of the military in regards to Alaska’s economy. Alaska has strategic military value and the Pentagon is beginning to realize the potential across the state.

The Senator spoke in depth about economic concerns and the Affordable Care Act (ACA) and how each affected the State of Alaska and its residents. She noted that even though we don’t know a specific date, we will bump up against the debt ceiling in the coming months. The Senator feels it is important to figure out a solution to the problem before it is too late and feels that Congress can do a better job of finding ways to fix the current budget. She stated that the sequestration does not provide solutions to the problem of the $16.9 trillion debt that the US currently holds.

The final subject that the Senator addressed before taking questions from the audience was the Affordable Care Act (ACA). Senator Murkowski agreed that the US needed healthcare reform but did not feel that the ACA addressed the true problems of needing increased access and decreasing the cost of healthcare. She believed that defunding the act was not the solution because it would leave the law on the books and would burden individuals and families. Senator Murkowski agreed that there were good parts to the new law, including the provision to allow dependents to remain on a parent’s plan until age 26, as well as the changes to insurers being able to limit coverage to individuals with pre-existing conditions. She stated that change will come when there is a reduction in cost of healthcare to individuals and families.

Senator Murkowski wrapped up her presentation with a note that she felt that it was time for the Congress to start governing. Too much time was being spent on messaging and working to secure votes for the next election. She wanted Congress to lead the way and start to create laws that would make a difference, rather than blaming the other side for the Nation’s problems.

Senator Murkowski is the first Alaskan born senator and the 6^th to represent Alaska in Congress. She was re-elected in 2010 and holds a number of committee positions, including being a ranking member of the Committee on Energy and Natural Resources.

July Unemployment Rate at 6.3% in Alaska

The Alaska Department of Labor released the July unemployment numbers today. Alaska’s seasonally adjusted rate was 6.3% in July, up three-tenths of a percent from June’s revised rate. Alaska is still well below the national average of 7.4%. The not-seasonally adjusted rate was 5.9%, which is down six-tenths of a percent from June. Declines are typical between June and July due to summer employment in the tourism and fishing industries.

Bristol Bay Borough and the Municipality of Skagway have the lowest unemployment rates in the state at 1.1% and 2.3% respectively. Both areas depend heavily on a single summer industry. In Bristol Bay it’s salmon fishing and in Skagway it’s tourism. Summer Pollock and salmon fisheries are in full swing by July in the Aleutians, which is the reason for the drop in unemployment during the summer months.

Both the national rate and Alaska’s rate dropped eight-tenths of a percent from where they were one year ago.  

SB21 Encourages Development and a Strong Alaska Economy

The 2014 primary election will be a truly interesting occurrence in Alaska. Not only are there a number of highly contested races on the ballot, pending final approval of the collected signatures, it looks like voters will have an opportunity to decide to keep the new oil tax structure that was signed into law with SB21 this spring. As addressed in an earlier blog post, we believe that SB21 promotes economic development and makes Alaska competitive with other oil producing states and regions. SB21 is a good thing for the Alaska economy and voters should understand the consequences of a vote to repeal the oil tax structure.

A repeal would bring a high level of uncertainty to the industry. It would be difficult for companies to make long-term investment strategies that include Alaska because they would be uncertain of future tax rates. Oil companies would be forced to look elsewhere for development. Alaska would lose vital jobs and the economy would suffer. It is important to understand that the economy does not mean only what is put into the State Government Treasury, it means opportunities for careers and investment in the private sector. Alaska needs to be consistent with its tax structure to encourage future development.

Oil production accounted for just over 90% of Alaska’s unrestricted general fund revenues in fiscal year 2012. The general fund pays for almost every state service. This includes education, infrastructure, and public health and safety. If oil production declines even faster because companies are not able to invest due to an uncertain climate, every Alaskan will be impacted. Jobs will disappear and the Alaskan economy will be devastated. Over 50% of working Alaskans are directly or indirectly dependent on oil and gas exploration and development. SB21 allows Alaska to be globally competitive in the industry and has already shown that oil companies are willing to invest in development to keep our economy strong.

The current tax reform has been vigorously debated in the Alaska Legislature since 2008. Voters made their voices heard by electing individuals on both sides of the reform debate. This is how our system works. During the 2012 election, candidates made their opinions very clear on the oil tax reform issue and voters took to the polls to show their support for their candidate. Once in office, legislators looked at all angles of this highly complex issue through research, testimony and public opinion to make informed decisions for their constituents. The decision to enact SB21 was not one that was taken lightly. It is a positive step for the Alaska economy and we have already seen an increase in investment from major oil companies. ConocoPhillips and BP have pledged an additional $4 billion in investment and development along the North Slope. SB21 is working and should not be repealed.