State data: Alaska jobs grow, but out-migration of working-age adults continues

Alaska jobs grew at a 1.8% annual rate during August, down slightly from 2% growth, year-over-year, during July, according to data released Sept. 25 by the state Department of Labor and Workforce Development.

Construction and oil and gas work showed continued strong gains of 12.9% in August for construction and 6.5% for petroleum, both compared with the same month of 2023. About 22,700 were working in construction in August and 8,200 were employed in oil and gas for producing companies as well as oil service firms.

Professional and business service jobs, which includes engineering, were up 3.4% in August year-over-year, to 30,800 working in the field. Transportation, warehouse and utility employment increased 1.9% against August 2023, for a total of 27,200 employed.

Retail and leisure and hospitality were flat, however, with zero growth against August 2023. Both industries are affected by general consumer spending in the state as well as visitor spending in hotels, restaurants and retail establishments.

The state labor information is based on surveys of employers by the state labor department that are subject to revision when employers submit required hiring data, which is done on a quarterly basis.

On a related issue, community and business leaders continue to worry about the outflow of working-age people and families from Alaska. What is puzzling is that this continues despite the recent growth in Alaska employment, particularly in high-wage jobs like oil and gas.

Labor economists say the out-migration is about typical but fewer people are moving to Alaska and once here appear to not stay long. Out-migration also appears to be mainly in modest-wage occupations. High living costs, particularly in housing, may be a major factor in this. Among professionals there are concerns over school funding and staffing along with housing.

State data showed that net out-migration increased over the last two years. In 2023 3,200 people moved out of the state against people moving north and those moving out were mainly working-age adults. This was the 11th straight year of net out-migration from the state.

Anchorage, Fairbanks and most other areas of the state saw increased numbers moving out while Mat-Su, Kenai and Petersburg saw more people moving in, state labor economists said. Population is relatively stable because natural child births have offset the losses from out-migration. The state’s population did decline from 2016 to 2020, however, due mainly to the collapse of oil prices in 2016 and depressed state oil revenues in several years following, which dampened the state’s economy.