Alaskanomics

Unemployment Remains Steady at 6.5 Percent

The Alaska Department of Labor released its November unemployment rates on Friday. The seasonally adjusted rate has remained unchanged for the past four months and is at 6.3 percent. The national rate has been slowly declining and currently sits at 7.0 percent.

Due to the seasonal nature of many jobs throughout the state, 26 of 29 boroughs and census areas showed an increase in the unemployment rate in November. The Denali Borough and Hoonah-Angoon Census area showed the largest increases. The Municipality of Skagway had the highest level of unemployment with just over 1 in 5 residents being unemployed. The three areas with the lowest unemployment are the City and Borough of Juneau (4.5 percent), the Municipality of Anchorage (4.7 percent) and the North Slope Borough (4.7 percent).

While Alaska’s unemployment rate is still below the national average, the gap is closing between the two rates. Next month, the annual rates will be released and analysis of 2013 and predictions for 2014 will be given. Many will look at the forecast for the Alaska as well as major employment areas throughout the state. At a local level, the Anchorage Economic Development Corporation will host its annual Economic Forecast Luncheon at the end of January.

For the Department of Labor’s complete report, please visit http://labor.alaska.gov/news/2013/news13-56.pdf

Focusing on Alaska's Future- Governor Parnell's Proposed FY15 Budget

Governor Sean Parnell discussed his FY15 budget proposal at this afternoon’s Anchorage Chamber of Commerce luncheon. The Governor outlined his plan to reduce State spending and reduce the burden of the unfunded pension liability payments by making an investment this next fiscal year. There were four guiding principles that were helped shape the Governor’s proposed budget. They are to live within our means, budget for priorities, fix what we’ve got, and finish what we’ve started.

It is no secret that the largest revenue source for the State of Alaska is oil revenue and with the new tax structure, there is more revenue being brought into the system than there would have been under ACES. Governor Parnell stated that Alaska must do as any household must, and live within its means. This is not only important for the current budget, but we must look to the future and make sure that we are not simply pushing our problems to our children and grandchild to solve.  The Governor proposes transferring $3 billion from a budget savings account into the state’s retirement trust funds. This will pay down the debt and lower the annual payment for the state, resulting in over $2.1 billion in savings by the year 2036.

The priorities in the Governor’s proposed budget are education, resources and energy, public safety, transportation and infrastructure, and military support.  A few highlights include, fully funding and forward funding K-12 education and pupil transportation, increased number of VPSOs, Troopers and investigators, fixing schools, roads and infrastructure, and deferred maintenance. Governor Parnell stressed the importance of strategic investments in Alaska’s future, especially when it comes to resources and energy, infrastructure, education, and public safety.

Governor Parnell thanked the state departments and commissioners for doing a good job at reducing state spending and working within the budgets that they are given. He concluded his presentation noting that he was incredibly optimistic for Alaska’s future. The economy is growing and our fiscal future is solid. The Governor also believed that the state has a unique opportunity to work together to do what is right for Alaskans.

For more information about the Governor’s proposed budget, visit http://gov.alaska.gov/parnell/press-room/full-press-release.html?pr=6690