Alaska Unemployment a Record Low in January

Feb. 18, 2000
No. 00-34

Despite a relatively sharp seasonal increase, Alaska's 7.4% unemployment rate set a record low for the month of January. The previous all-time record low of 7.8% was posted in January 1998.

"Up until 1998, it was common to have unemployment near ten percent in January," said John Boucher, a labor economist with the Alaska Department of Labor and Workforce Development. "The last three years have all seen January unemployment in the seven to eight percent range."

The state's unemployment rate increased one and one-half percentage points from December's 5.9% rate. The number of

1999 the unemployment rate was 7.9% and there were more than 24,500 unemployed Alaskans. The comparable national unemployment rate (civilian not seasonally adjusted) in January was 4.5%.

While statewide unemployment was at an all time low for January, it was noted that urban areas of Alaska are primarily responsible for the lower rate. Of 27 regional unemployment rates produced, 17 posted unemployment exceeding ten percent. The highest unemployment rate in the state was 19.2%, posted in the Prince of Wales-Outer Ketchikan census area. This area was affected by the recent closure of a sawmill on Annette Island and layoffs in the logging industry. The lowest unemployment rate was in Anchorage, where 4.9% of the labor force was unemployed.

One notable exception to the trend toward higher unemployment was Kodiak, which benefited from winter groundfish openings. Kodiak's unemployment rate fell from 11.0% in December to 7.2% in January. The Lake and Peninsula Borough was the only other area to lower its unemployment rate in January, also due to winter fishing activity.

Wage and salary employment statistics corroborated the increasing statewide unemployment rate as 6,700 jobs were lost compared to December. "Retail trade, services, construction, and government were the largest job losers in January," Boucher said. "Most of these losses can be accounted for by seasonal fluctuations."

Alaska's seafood processors were the major exception to the pattern of job losses. Winter fisheries helped boost January's employment in Kodiak and western Alaska.

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.  

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