Business/Economy

Alaska eked out job gains in early 2014

JUNEAU -- Alaska employment edged up a bit in the first half of 2014, led by growth in the construction sector, but cuts to government spending are already taking a toll, according to the Alaska Department of Labor and Workforce Development.

Employment in Alaska grew 0.6 percent this year compared to the first half of 2013, according to the department's Research and Analysis Section. During the six-month period Alaska had 332,478 jobs, up 1,978 from the same time in 2013.

Wage growth was stronger than job growth, increasing 3 percent for the period, after adjusting for inflation. That amounted to total wages of $6.7 billion paid in Alaska, up by $253 million during the period.

Construction and seafood processing sectors were among those showing the strongest rates of growth, while the biggest total job gains were in construction and retail trade.

The important oil and gas industry sector showed a gain of 386 jobs, or 2.8 percent. State economist Caroline Schultz said that the construction industry's growth of 979 jobs, or 6.6 percent, was largely a result of activity on the North Slope as well.

Major box store openings led the retail sector to an addition of 881 jobs but because of the size of the sector that was an increase of only 2.5 percent.

Biggest job losses came in the government sector, which was down overall, but with federal government jobs losses leading the way. That sector had the biggest number of jobs lost at 714, and the fastest rate of decline at minus 4.6 percent.

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This is the fourth year of federal job losses in Alaska.

Local government employment decreased by 411 jobs, or minus 1.1 percent, due to school district cuts across the state, Schultz said.

State government jobs were up 503 for the period but Schultz said that about 200 of those jobs were due to an "anomaly" in the way some university staff and student workers were counted in 2014 but not in 2013.

The numbers issued this week come from the Quarterly Census of Employment and Wages, and are considered more accurate than the monthly unemployment numbers, which are estimated from a sample of employers.

"The QCEW numbers take longer to collect and process but are ultimately the most reliable employment count and are used to benchmark other employment series, including the monthly employment estimates," Schultz said.

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