Business/Economy

National employment rate now outpacing Alaska's

JUNEAU -- While the U.S. economy appears to be finally picking up some steam, Alaska employment is showing some signs of stalling or of faltering, according to new Department of Labor and Workforce Development data released Friday.

Alaska's seasonally adjusted unemployment rate held at 6.8 percent in September, identical to August, but above the 6.6 percent rate in September of last year, even while the national economy improved.

The U.S. seasonally adjusted rate was 5.9 percent in September, down from 6.1 percent in August. But the most dramatic change was compared to last year, when the national rate was 7.2 percent and higher than the Alaska rate.

The national unemployment rate over the last year fell by 1.3 percentage points and is at a six-year low, while Alaska's rate rose.

Labor department economist Neal Fried said Alaska is likely headed back to a period of higher unemployment rates than the nation.

The national rate first shot up above Alaska's rate in 2008 and stubbornly stuck there has throughout the great recession. During most of Alaska's history, its economy -- dominated by seasonal businesses -- has almost always had a higher unemployment rate that the nation, he said.

"The nation's rate went above ours for the first time ever (in 2008), and that's sort of an indication of the severity of that recession," Fried said.

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Alaska's rate looked good by comparison for several years, even though it actually went up somewhat.

"That wasn't something that was happening to our rate; that's something that happened to the nation's rate," he said.

Now, Fried said, Alaska's unemployment rate is likely to settle back to its traditional status of holding higher than the national rate.

During the recession, higher oil prices and state spending helped Alaska hold jobs, but oil prices are now faltering and state spending cuts are under discussion.

State monthly job numbers show Alaska down by 1,700 jobs in August compared to August of 2013.

The preliminary numbers for August show the state with 357,700 non-farm jobs, compared to 359,400 for August of 2013.

Service-providing jobs showed the biggest decline, followed by government. Key industries of seafood processing and mining, including oil and gas, generally grew or remained steady.

The lowest unemployment rates in the state were in two of Alaska's most tourist-dependent communities, Skagway and Denali. They'll likely be among the state's highest within a few months.

Anchorage's unemployment rate, at 5.2 percent in September, was below the national rate. Fairbanks' rate was 5.0 percent, while Juneau was 4.1 percent.

The highest unemployment rate in the state, 20.5 percent, was in the Wade Hampton Census Area on the Bering Sea coast.

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