Alaskanomics

Unemployment Rate at 6.5 percent in July

The Alaska Department of Labor and Workforce Development released the latest unemployment numbers on Friday. The unemployment rate in Alaska continued to be relatively flat for the month of July.  The seasonally adjusted rate was 6.5 percent in July, up only one-tenth of a percent from June. The national average was 6.2 percent in July, which was also a one-tenth of a percent increase.

The summer season is in full swing and the not-seasonally adjusted rates reflect high employment throughout the state. Bristol Bay Borough reported a 1.0 percent unemployment rate due to a strong sockeye season this year. Summer fishing also accounted for large drops in the monthly rates in the Aleutians East Borough and the Dillingham Census Area, with 6.7 and 7.4 percent respectively.

The Wade Hampton Census Area continues to be the highest rate in the state. Their July unemployment rate was 26.2 percent.

For detailed employment estimates, visit http://live.laborstats.alaska.gov/ces/

Keep Alaska Competitive and Vote No on 1

With five days to go until the Primary Election on August 19, the battle over oil tax structure is fierce.  The vote is too close to call and both sides are urging everyone to get out and vote. The facts of the debate seem to fade away as the issue is becoming extremely emotional.

Northrim Bank has publically supported the ‘Vote No’ effort and has contributed to the Keep Alaska Competitive campaign because it is important that Alaska is competitive for development and production of our natural resources. The tax structure put in place by SB21 returns some competitive edge to Alaska and production has increased in the short time that SB21 has been in place. The production numbers of FY14 were finalized on August 6 and there was only a 0.1 percent decline for the year. After an 8.2 percent decline in FY13, an average of only 565 fewer barrels a day FY14 is a welcome change.

Both sides of the debate agree that a change was needed for Alaska’s oil tax structure. SB21 provides incentives for new oil, which will help increase production. New projects have already been announced after the passage of SB21 last year. There have also been new investors to the North Slope and many agree that the new projects are a direct result of a more favorable business climate in Alaska.

North America is well on its way to being energy independent and Alaska can be part of increased production and development if ‘Vote No’ prevails on August 19.  A ‘No’ vote is a vote for Alaska’s future. It means more jobs for Alaskans, increased revenue for the State, and a stronger chance for the gas pipeline to be completed. This is one of the most important issues to face Alaska since statehood. We encourage all Alaska voters to be engaged in the process and to ‘Vote No’ on ballot measure 1 on August 19.