Gradual but steady job growth continued in November, state says. But petroleum employment set for takeoff with new projects in construction

Steady growth in Alaska jobs continued in November, according to estimates by state labor economists. Total wage and salary employment was up 1.6 percent with private sector jobs up 2 percent, comparing year-over-year with November, 2022.

The estimates are compiled monthly by the Alaska Department of Labor and Workforce Development. Data is from surveys of employers by state economists.

A regional breakdown shows Anchorage and Mat-Su generally tracking the statewide trends in year-over-year comparisons, which is not surprising given that more than half the state’s population is in the two communities.

Interior Alaska showed slow growth in November, with jobs up 0.2 percent compared with the same month a year prior. Southeast and the Gulf of Alaska region, which includes Kodiak and Cordova, showed the most robust growth in November at 2.1 percent in Southeast and 2.8 percent in the Gulf coast region.

The populations are small in both regions, however.

The November report also reflects continued recovery in the state’s economy after a sharp contraction during the pandemic.

However, jobs in oil and gas employment is set to take off sharply as work on two new North Slope oil projects accelerates through the winter.

ConocoPhillips and Santos, Ltd. will each employ about 1,200 on the Willow project, for ConocoPhillips, and Pikka, a new oilfield being developed by Santos, an Australian company, and its partner, Repsol, based in Madrid.

Oil and gas jobs totaled 7,600 in November, according to the labor department estimates, so the Santos and ConocoPhillips additions will bring the totals to about 10,000 through the winter.

That’s still below the 15,000 employed in petroleum in 2015 before the collapse of oil prices the following year and later the pandemic.

However, work on the two projects is expected to continue for several years. Pikka is to be complete in 2026 and Willow will be finished in 2029.

Oil and gas jobs have been increasing by 300 to 400 per month through the fall with increased activity not only by Santos and ConocoPhillips but by Hilcorp Energy as well. Hilcorp is the operator of the large Prudhoe Bay field as well as the nearby Milne Point field, with new development work underway in both.

Petroleum is closely watched because it is one of the state’s highest-wage industries.

But in other industries the November employment report also showed gradual increases year-over-year, or compared with November 2022.

Health care was up 3.3 percent year-over-year, a gain of 1,300 jobs against November 2022. Most of that was in hospitals, the labor department said. Total health care employment was at 40,500 in November.

Leisure and hospitality, which includes hotel employment as well as restaurants and bars, was up 2.6 percent year-over-year to a total of 31,200 in November. Leisure and hospitality jobs are closely watched because the trends generally reflect spending of disposable income by Alaskans.

November is also outside the summer and fall visitor season, so it reflects spending mainly by residents within the state.