Unemployment Begins Seasonal Decline

Apr. 20, 2001
No. 01-50

Alaska's statewide unemployment rate began a seasonal decline in March, dropping to 6.7% from the 7.5% rate recorded in February. The number of unemployed Alaskans dropped by more than 2,500 to just over 21,600 in March. In March 2000, there were more than 25,000 unemployed Alaskans. The comparable national unemployment rate in March was 4.6%.

March's seasonal unemployment decline was felt across most of the state as rates fell in nearly every area. Exceptions were noted in Bethel, the Aleutians West Census Area, and Kodiak, where the March rate remained unchanged from February. The Wade Hampton Census Area had the highest unemployment rate in the state at 17.9%, while the Aleutians East Borough posted the lowest rate at 3.6%.

Brisk construction activity contributed to the relatively low statewide unemployment rate. Although 2000 was a good year for Alaska's construction industry, this year's season is shaping up to be even better. As an indication, the number of unemployment weeks paid for the construction industry in March 2001 was 13.5% below the March 2000 statewide level. Significant over-the-year declines in weeks paid to unemployed construction workers took place in Anchorage and Fairbanks.

A statewide increase of 3,100 wage and salary jobs accompanied March's unemployment decline. Every major sector of Alaska's economy except seafood processing added jobs last month. Seasonal gains in mining, construction, and transportation contributed to job growth. Employment growth in the services industry was broad-based while retail trade's depended largely on additional jobs in eating and drinking places.

Over-the-year employment growth in March was strong for Alaska's mining and services industries. Nearly 1,600 jobs have been added to the state's oil and gas sector since March 2000. The manufacturing and finance sectors were the only over-the-year job losers in March. Additional job losses in seafood processing, particularly in the Southwest region, and the continuing downward trend in the number of lumber and wood products jobs combined to pull down manufacturing employment in March.

LaborForce by Region and Census Area

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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