The State of Alaska’s Department of Labor and Workforce Development released employment numbers for March. Total employment was down an estimated 0.8 percent from March 2018 to March 2017. This is a loss of approximately 2,600 jobs.
The highest percentage of lost jobs came from the oil and gas industry. In the past year, the industry has lost 6.0 percent of its jobs, or about -600 jobs. Retail lost more jobs at -700 jobs, but it was a much lower percentage at 2.0 percent. Health care continues to be the one sector that has seen job gains in the recent past. The sector added about 1,000 jobs since March 2017, which is a 2.7 percent increase.
Even with the reported job losses in the oil and gas sector, there was good news reported in the Anchorage Daily News within the sector late last month. North Slope Oil hit $73, which is 170% higher than the price of oil in January 2016 when it hit a low of $26.23. This will do doubt help the confidence that companies have in the state’s economy. Another bright spot is the report that ConocoPhillips reports strongest Alaska profits since mid-2014. Oil prices have been steadily rising and ConocoPhillips has worked to decrease its operating costs in Alaska. They also announced new oil discoveries in Arctic Alaska. They noted that this could significantly boost oil production in Alaska.
Many are hoping that we are seen the bottom of the recession in Alaska and that jobs will start to increase and the unemployment rate will also edge closer to the national average, which has been steadily lower than Alaska’s for the past few years.
The seasonally adjusted unemployment rate in Alaska remained at 7.3 percent in March. The national average is 4.1 percent. In comparison, the not-seasonally adjusted rate dropped three-tenths of a percent to 7.9 percent. Unemployment fell in 26 of the 29 boroughs in March. The Aleutians East Borough and Aleutians West Census Area had the lowest rates at 1.8 and 2.5 percent, respectively. Both areas have busy winter fisheries.
For detailed employment numbers, visit the Department of Labor and Workforce Development.
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