Statewide Jobless Rate 5.4% In October

November 19, 1999
No. 00-19

Alaska's statewide unemployment rate increased nearly a full percentage point from 4.5% in September to 5.4% in October. John Boucher, a labor economist with the Alaska Department of Labor and Workforce Development, reported the increase. More than 17,200 Alaskans were unemployed in October, a significant, but not unexpected, increase from September, when about 14,300 were unemployed. In October, 1998, the unemployment rate was 5.3% and the number of jobless Alaskans was near 16,900. The comparable national unemployment rate (civilian not seasonally adjusted) in October was 3.8%.

The unemployment rate in most areas of the state moved in concert with the statewide unemployment rate, but rural Alaska generally experienced larger increases. "Rural Alaska tends to rely on seasonal industries such as fishing and tourism for employment opportunities," Boucher said. "When summer ends, it usually means higher unemployment rates in rural Alaska."

The most dramatic changes in unemployment rates in October were in boroughs where the visitor and/or fishing industries play key roles. "The Denali Borough's unemployment rate increased from 4.4% in September to 9.3% in October as visitor activity around Denali National Park shut down for the winter," Boucher said. In the Haines Borough the unemployment rate more than doubled, increasing from 3.0% in September to 8.8% in October as seafood processing and tourism-related activity slowed. The lowest unemployment rate in the state was in the Lake and Peninsula Borough at 3.8% and the state's highest unemployment rate was 12.2% in the Northwest Arctic Borough.

Alaska's wage and salary job count began a broad, steep seasonal decline in October. Over-the-month job losses totaled 11,100. With the exceptions of government and mining, all of the state's major industries lost ground in October. The seafood processing industry, followed by tourism-related job losses at hotels and eating and drinking establishments, led October's job loss. The construction industry's job count also dwindled as road-building activity slowed due to the onset of colder weather. Government's employment numbers increased slightly because the public education sector continued staffing up for the school year.

Labor Force by Region and Census Area

Benchmark: March 1998

P/ denotes preliminary estimates

R/ denotes revised estimates

Comparisons between different time periods are not as meaningful as other time series produced by Research & Analysis.

The official definition of unemployment currently in place excludes anyone who has not made an active attempt to find work in the four-week period up to and including the week that includes the 12th of the reference month. Due to the scarcity of employment opportunities in rural Alaskan locations, many individuals do not meet the official definition of unemployed because they have not conducted an active job search. These individuals are considered not in the labor force.

Source: Alaska Department of Labor and Workforce Development, Research and Analysis Section.

Return to Index

###