Alaska job growth slows as oil field construction moves toward completion

Alaska job growth is slowing as work on oil projects moves toward completion of one new oil field, Pikka, as activity continues on ConocoPhillips’ Willow project.

These two initiatives along with Hilcorp Energy’s work at the Prudhoe Bay and Milne Point fields, have mainly fueled employment gains over the past year.

Pikka is approaching completion, so its construction pace will slow this fall. Willow has three more winter seasons of construction before it is completed in 2029.

Total Alaska employment was up 0.8% and private sector jobs were up 1% in July according to employer surveys by the Alaska Department of Labor and Workforce Development. The increases are year-over-year and measured against job counts in July, in 2024. Growth accelerated during last winter with the pace of North Slope work, but is now slowing.

Winter is when most North Slope construction happens and the last two winter seasons have set records in construction employment, at least since building of the Trans Alaska Pipeline System.About 5,000 were employed between contractors for Santos, Ltd., at the Pikka project, and ConocoPhillips at Willow.

If it weren’t for oil work and government-funded construction under the federal Infrastructure Investment of Jobs Act, or IIJA, the Alaska job numbers would be essentially flat. Tourism is slow this year, with a tepid growth of 0.2% in leisure and hospitality jobs, which is an indicator of trends in the visitor industry.

Tourism has been growing steadily in recent years but has slowed this year because of concerns for the economy and, for overseas visitors, worry about delays and detainment at international arrival airports due to President Donald Trump’s border policies.

Retail jobs in Alaska are down, at –1.5%, and financial services, another general indicator, is also down, 0.9% and information services jobs were also down, at –8/9%. Keep in mind that retail jobs were eroded by increased in on-line shipping and financial and information service employment is affected by technology improvements. Federal government employment is down, at –1.2%. State job numbers were flat while municipal employment was up 0.3% (this includes tribal employment).

Health care jobs, which has been steadily growing for several years, was up 2.1% in July, and professional and business services, a category that includes environmental services and consulting as well as engineering, was up 1.3%.

The state employment estimates exclude uniformed military but does include jobs with the University of Alaska and public schools. Also, the data is based on surveys of employers that are voluntary and are subject to revision.

The revised data is published quarterly and are based actual employee counts by employers, which are required under state law.

While oil employment will decline somewhat this winter with completion of the Pikka field Santos Ltd. has said what it will move into a phase two expansion of the field soon after production begins in the current phase one. That will increase construction jobs again.

Meanwhile, work at Willow construction will continue and ConocoPhillips also plans a major exploration program this winter, which will boost jobs during the cold weather months.