It’s certainly welcome news that analysts at the state Department of Labor forecast strong job growth in Alaska this year. They expect to see about 5,400 new jobs, a solid increase of almost 2% over last year.
If the numbers come true, it would fully restore the state to its pre-pandemic employment numbers of 2019. Federally funded infrastructure projects, North Slope oil field development and construction will be the big drivers of job growth.
But no one really knows where all those new workers will come from. Just like many other states, Alaska is short on new residents and new hires as the economy rebuilds from its COVID misery.
“We have high job openings and a short supply of workers to fill them; the U.S. Bureau of Labor Statistics estimates Alaska has two job openings for every unemployed person seeking work,” the state report said.
One culprit is aging, which is irreversible. The number of Alaskans in their prime working years (ages 18 to 64) fell by 30,000 from 2013 to 2022.
The other reason for the worker shortage is fewer new residents moving here to replace the Alaskans who leave — which the state and municipalities need to confront.
“This net migration loss was big enough in several recent years to drive down the population overall,” the Department of Labor report said. “Movers in both directions tend to be in their 20s and 30s; prime working-age people likely to bring children with them. Losing them and their families, along with the current population aging in place, has exacerbated our labor shortage.”
Particularly in Southeast, and especially in Wrangell.
Wrangell’s 25% drop in its working-age population from 2013 to 2022 was the largest among the 10 Southeast boroughs and census areas covered in the report. The community also was among the largest losers in Southeast for more people leaving town than moving here — a net loss of 12.1% in population 2013-2022.
“Quality of life is a hard thing to measure,” the state analysts wrote. “The clearest way to assess whether a community has the combination of things people are looking for is to determine whether more people are moving in than out. … More than ever, communities that can attract people to live there and retain their existing populations will have an advantage in the competition for workers.”
It’s clear that borough officials, the chamber of commerce and community groups know the problem and are working to make Wrangell more attractive for new residents. The latest state report reminds everyone of the urgency.
— Wrangell Sentinel
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