Unemployment Decreases A Little

Mar. 16, 2001
No. 01-44

Alaska's statewide unemployment rate decreased slightly to 7.5% in February from the 7.8% rate recorded in January. The statewide unemployment rate is typically fairly stable in February, as Alaska's economy nears the end of the winter season. The number of jobless Alaskans fell to just over 24,000 in February, a decrease of about 800 from January. The comparable national unemployment rate for February was 4.6%. Rachel Baker, an economist with the Alaska Department of Labor and Workforce Development, reported the statistics.

In several areas, openings in Alaska's winter fisheries contributed to significant declines in February unemployment rates. Bottomfish openings, primarily pollock, put many seafood processing workers back to work in the Gulf Coast and Southwest regions of the state. Kodiak's unemployment rate dropped from 11.4% in January to 6.2% in February, and the Aleutians East Borough rate fell from 8.9% to 3.6%. The opilio crab harvest also affected the unemployment rate in the Aleutians West Borough. February's rate was 6.4%, compared with 7.9% one year ago, when the opilio crab harvest was postponed for several months.

The Northern region was the only area with an over-the-month increase in the February unemployment rate. North Slope oil field activity slowed a bit during the month, which is fairly typical for February, and contributed to the increased rate. The highest unemployment rate in the state was 18.3% in the Yukon-Koyukuk Census Area. The lowest rate was 3.6% in the Aleutians East Borough.

Accompanying the decrease in the February unemployment rate was a gain of 6,500 wage and salary jobs. Seafood processors were the largest job gainers, but construction, transportation, services and the public sector all added jobs as well. A small broad-based job expansion is typical in February as many industries begin rebounding from mid-winter low points.

Benchmark: March 2000 Source: Alaska Department of Labor and Workforce Development, Research and Analysis Section.

• Comparisons between different time periods are not as meaningful as other time series produced by Research and 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 Alaska 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.

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