Alaska’s job market will continue to recover this year, but it is still far from the level it was prior to the pandemic.
This is according to the job forecast by the state’s Department of Labor. Karinne Wiebold, an economist for the state, authored the report in the department’s monthly magazine.
She stated that “pretty much every industry will grow next year.” But many of them are returning to pre-pandemic levels. This is a kind of normalcy return.”
When the pandemic struck, the state’s employment market suffered a major blow in 2020. Wiebold stated that this was not true for the Kenai Peninsula as it is for other areas of the state. This could be because the peninsula didn’t suffer such large losses from the canceled cruise ships.
She said that the Kenai Fjords National Park enjoyed one of its best years in 2021. “And that was propelled both by local visitors and some independent, non-cruise-based travellers.”
This is a stark contrast to Denali National Park, where the majority of visitors come from cruise ships.
The state has slowly been gaining employment across all areas since the early days of the pandemic.
Low labor force participation is one example of a factor that limits growth nationally.
However, Alaska’s overall recovery has been slower than other states. Wiebold stated that national problems are compounded because of Alaska’s dependence on oil and tourism.
She said that oil has been on a wild ride. It’s not easy to determine why our jobs have taken longer to recover than other Lower 48. It could be due to our remote location and it is just a little harder to get things moving again.
She also said that Alaska entered the pandemic in a weak spot after a three-year recession. When COVID-19 struck in early 2020, the state was only just beginning to recover from its recession.
A minimum of one piece is expected to create jobs in this year’s legislative session: the federal infrastructure bill, which was passed by Congress in 2021. The Kenai Peninsula is where the money will be used to improve airports and harbors as well as other projects for fish passage and bluff stabilization.
Wiebold stated, “But what’s really hard at this point? Really tracking down where that money is going and when it will hit the road.”
One industry forecasted to surpass its pre-pandemic levels is construction, along with transportation and warehousing.
She said, “That’s it.” “Those two will grow beyond pre-pandemic levels. Everyone else is still playing catch up. The oil and gas are a good example.
Wielbold stated that even with the expected growth this year, employment levels in this industry will still be down 25% from their level before the pandemic. This is a difference of over 2,000 jobs.
Wiebold stated, “So there are plenty of industries which have a long road to grow.”
She said that Alaska’s job market remains a workers market because there are so many open jobs. This gives workers a lot of freedom to choose where and how they want to work.
