Alaska Economy Continues To Grow; Income Up

Jun. 7, 2002
No. 02-32

Labor Commissioner Cites Facts to Debunk Outside Ad Attacks

A series of attack ads running on Alaska television relies on misleading information and half-truths to paint a false portrait of Alaska's economy, Alaska Department of Labor and Workforce Development (DOL) Commissioner Ed Flanagan said today.

"Let's look at the facts: Alaska just posted the thirteenth consecutive year of job growth in 2001, the second longest period of expansion in the state's history," Flanagan said. "2001 also marked the state's second lowest unemployment rate in its history at 6.3 percent. Since 1994, the number of Alaskans has increased in every sector of wage earners, from high paying professional jobs to service sector employees."

In fact, Alaska was one of only a few states where the unemployment rate did not increase in 2001. Thanks to a more mature, diversified economy, labor economists say Alaska has better weathered fluctuations in oil prices, fish prices, and other resource industry cyclical trends than it has in the past.

Flanagan also noted the U.S. Dept. of Commerce ranked Alaska fourth among the states for personal income growth in 2001. The figures reflect growth in high paying jobs in oil and gas industry, continued strength in construction, and growth in the mining sector.

The Virginia-based group "Americans for Job Security" is currently running the ads on Alaska television. The group refuses to disclose any information about themselves or who funds them. Officials with the Department of Labor, the University of Alaska's Institute of Social and Economic Research (ISER), and Governing magazine, all cited as sources in the ads, have said the use of their information was inaccurate, misleading, and inappropriate.

The misrepresentation of DOL information involves the ad's assertion that "youth are fleeing Alaska." In an article titled, "The Aging of Alaska's Workforce," in the September 2000 issue of Alaska Economic Trends, DOL economist Jeff Hadland and demographer Greg Williams reported, "There has not been any general increase in out-migration of persons of college age, except for that related to military cutbacks. In fact, the percentage of 18-year-olds leaving the state (about 9 percent annually) is lower than at any time during the 1990s."

DOL reports also show that the state now enjoys the smallest percent of nonresident workers in Alaska since 1988. In 2000, nonresident workers comprised 17.9 percent of all workers in Alaska, a large decrease from the peak year of 1992 when 78,000 nonresidents made up nearly 24 percent of all workers in the state.

"Look at the facts and you'll see that Alaskans are hard at work and will continue to have job opportunities because of our economic diversification," Flanagan said. "We don't need outsiders misrepresenting our state's economic conditions."

For accurate facts and figures go to the DOL Research & Analysis section web site, for more information.

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