Valley growth subject of state publication

December 6, 2005

DAWN DE BUSK\Frontiersman reporter

MAT-SU - The Valley is surging ahead of the rest of the state economically, according to the most recent edition of the state labor department's monthly publication, which focused on Mat-Su.

The population is growing more quickly in Mat-Su than in other parts of Alaska - by almost 20 percent annually since 2000, according to the December edition of &#8220Alaska Economic Trends,” which was released Monday.

More people are moving here. More jobs and businesses are being created here. More people are driving on Mat-Su roads and more homes and even a new hospital are going up.

&#8220There won't be any shocking news. Sometimes when people see the numbers, they realize how big and obvious the trends are. It's been going on for quite a while. The cumulative effect over the last decade has been dramatic. And you don't use that term ‘dramatic' to describe growth in other places in Alaska,” said Neil Fried, economist for the Alaska Department of Labor and Workforce Development, who wrote the edition's lead story.

The December edition of &#8220Alaska Economic Trends” may be downloaded from http://almis.labor.state.ak.us.

Four sectors of industry - health care, leisure and hospitality, retail and construction - have created 500-plus additional positions, Fried said. While more people are spending their income in the Valley, businesses that cater to hungry appetites, home-building, the purchase of clothes and electronics and places that provide recreation activities like bowling are hiring more employees.

&#8220Growth in the retail sector is a natural reaction to population growth. Almost every industry in the Valley has grown,” he said. &#8220Housing is a big ingredient and a big attraction,” Fried said.

Growth in the Valley has been outpacing growth in the rest of the state for the past decade. Even the small community of Talkeetna has grown by 9 percent since 2000 - slower than in other parts of the Valley, but faster than statewide, Fried said.

The statewide growth is at 5 percent. From 2000 to 2004, Anchorage's population grew by 7 percent, and the Kenai Peninsula Borough saw a 2.6-percent jump.

The Knik-Fairview area has been experiencing rapid growth in population, growing by 31 percent from 2000 to 2004, compared to 18 percent for the Valley overall, according to Fried.

There were 2,220 people living in Knik-Fairview in 2004 who weren't living there at the turn of the millennium, he said.

Statistics regarding the Valley reveal that its residents depart from the state norm in several ways, he said.

Forty-five percent of the employed population in the Valley works somewhere else, Fried said. About one-third, or 34 percent, of those workers commute to Anchorage jobs and about 4 percent of Valley residents work on the North Slope.

&#8220Also unique compared to the rest of the state: In most places, after you adjust for income, there's leakages of income out of the community. But it's the reverse. A huge chunk of income and wages coming into the Valley are from somewhere else,” Fried said.

People may pick up copies of the &#8220Alaska Economic Trends” publication at the state's Department of Labor offices, get a subscription to it or read it on the Web.

&#8220This article will be of interest not only to residents, but to people wanting to buy a home out there or start a business. Already, branches of businesses in Anchorage have moved to the Valley, following their customers,” Fried said. &#8220The Valley is the hot spot, and you people know that,” he said.

Contact Dawn De Busk at 352-2252 or dawn.debusk@frontiersman.com.