Unemployment Rises To 5.2 Percent In September

Oct. 19, 2001
No. 01-83

With the summer visitor season winding down, Alaska's unemployment rate rose two tenths of a percentage point in September to 5.2%. The unemployed numbered 17,147 in September, up about 500 from August. The comparable national unemployment rate for September was 4.7%, a drop from August's rate of 4.9%.

Initial claims for unemployment in September were up 25 percent from last month to 6,380. The increase was largely seasonal, however, and is below September 2000's number of initial claims by almost 300 (a 4.3% decrease).

Because the most current employment data reflects the state of the labor market prior to the September 11 terrorist attacks, it is still unclear how Alaska will be affected in either the short or long term. Preliminary information suggests that the state has mostly recovered, at least economically, from the sudden interruption of routine business and the complete shutdown of some industries. It appears that the state's economy is in tune with normal seasonal trends.

"Alaska's unemployment rate is still near record lows, and current indicators suggest the state's economy is continuing to grow at a modest rate," according to Dan Robinson, a labor economist with the Alaska Department of Labor and Workforce Development. September's unemployment rate is the same as in September 2000 and is the third lowest September rate in the last 20 years.

Regional unemployment in September reflected the statewide seasonal trend. The Anchorage/Mat-Su region's rate increased from 4.1% to 4.2%; Fairbanks saw an increase of three tenths of a percentage point to 4.7%; and in Juneau the rate jumped from 3.8% in August to 4.4%. Most other areas also saw slight increases.

The Wade Hampton Census Area once again had the highest rate in the state at 16.4%, though down significantly from last month's rate of 17.8%. The Sitka and Aleutians East boroughs tied for the state's lowest rate at 3.2%.

Wage and salary employment contracted by about 5,200 jobs over the month, a typical seasonal decline. Employment is up two percent over the year. Nearly half of the state's over-the-year job growth has come from the services sector, which has added 2,900 jobs since September 2000. Construction and government have also contributed significantly, adding 900 jobs each.

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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