In a recent issue of Trends, the Alaska Department of Labor and Workforce Development highlighted the growth in the Mat-Su economy. The borough has seen a large increase in population, while the state saw a modest growth. Since 2010, population in the Mat-Su has grown by 15 percent, which is much higher than the 4 percent that was seen throughout the state in the same time frame. New home construction is also strong and even during the state’s recession, the Mat-Su saw job growth.
The Mat-Su Borough is now the 2nd most populous borough, surpassing Fairbanks in 2015. It is also the only other region other than Anchorage with more than 100,000 people. The borough is quite large and its three incorporated cities, Palmer, Wasilla, and Houston, only account for 17 percent of its population. There are 26 other unincorporated communities that make up the rest of the borough.
Housing prices make the Mat-Su Borough very attractive and is one of the reasons that many people have moved out to the Mat-Su while continued to work in Anchorage. In the first quarter of 2017, the average price of a single-family home in the Mat-Su was $283,156. This is nearly a third less than the average home in Anchorage. For those who live and work in the Mat-Su, houses are no more affordable than they are in Anchorage. There are lower wages in the Mat-Su, so workers who choose to live and work in the Mat-Su face the same challenges as they would if they lived and worked in Anchorage. The savings comes if a worker is willing/able to make the daily commute into Anchorage. There are also many people who live in the Mat-Su, but work on the North Slope. Only 56 percent of Mat-Su residents also work in the Mat-Su.
There has been slight growth in the Mat-Su in the past few years, even with the recession. In early 2017, employment grew by a half a percentage point, which is down from 2 percent the year prior. The unemployment rate has begun to rise in the Mat-Su, but at a slower rate than other places in Alaska. There is a diverse mix of industry throughout the Mat-Su. Government employees account for 22 percent of the workforce, while the rest are spread fairly evenly throughout other sectors.
The Mat-Su Borough seems to be avoiding most of the signs of recession, but the true extent of the State’s recession won’t be seen until the full 2016 and 2017 numbers are available.
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