Rain Coast Data reports on economic conditions

Last Tuesday evening, in the agenda packet for the borough assembly's meeting, was

a report on Wrangell's economic conditions. The report, by Rain Coast Data, was updated this past October, and looks at a variety of aspects of the local economy.

With the COVID-19 pandemic impacting many aspects of life in Wrangell, the community's economic survival has

been a topic of much discussion.

"In 2019, Wrangell, Alaska had 1,143 year-round

equivalent jobs and nearly $50 million in workforce earnings," the report reads. "The top

economic drivers of the

community were seafood, tourism, health care, and industrial maritime ... However in 2020, the COVID-19 virus devastated the global economy, with Southeast Alaska and Wrangell in particular, reeling from the impacts."

Some of the impacts of COVID-19 can be seen in the tourism industry. An estimated 26,500 visitors to Wrangell did not materialize because of the pandemic. This is estimated at $6.24 million not spent in Wrangell's economy.

Furthermore, according to the report, Wrangell's fishery had its worst year since 1976. COVID-19 has added reduced demand and prices to an already hurting industry. Unemployment in Wrangell is estimated at 10.7 percent, for the first seven months of 2020. This is the highest unemployment rate in the past decade, with 2010-2019 numbers varying from 6.9 percent to 8.4 percent.

An October 2020 survey of local businesses also brought in some additional information on the impacts of COVID-19.

Over 100 businesses responded, according to the report.

According to the survey, responding employers had laid off 32 percent of their total workforce in response to the pandemic. Business revenue is down about 50 percent compared to 2019. Over 21 percent of respondents said they were at risk for closing permanently, plus an additional 2 percent of respondents that have already closed.

"This document, Wrangell Alaska Economic Conditions Report, provides a baseline summary of the economy of Wrangell prior to the 2020 pandemic event, to provide an economic planning tool for stabilizing and re-growing the economy moving forward," the report reads.

This report, and others, can be found online at http://www.raincoastdata.com.

The city has responded to the pandemic, and the

community's economic troubles, in a variety of ways. For example, thanks to funding from the CARES Act, they have a number of grant opportunities for businesses and people who are struggling in this time. A recent press release from the city announced that the deadline to apply for these grants has been extended to Nov. 13. Some of the grants include general household assistance, targeted visitor industry relief, general small business grants, and others.

"The City has designated $915,000 of the CARES Act funds received from the State of Alaska to these assistance

programs which are intended to provide economic relief in the areas of most need within the community," the press release reads. "Each program

will require a separate application be completed by each business, non-profit or resident. Each program application

provides eligibility requirements and identifies the supporting information to be submitted. All programs are first- come, first-served based on receipt of a completed application."

More information about these grant opportunities can be found at http://www.wrangell.com.

 

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