 Ketchikan's Unemployment 8.5 Up from 8.1% January 21, 2003
Ketchikan's unemployment rate for December was reported at 8.5%, up from 8.1% reported in November. The average November-to-December increase for Alaska over the last decade is two to three-tenths of a percentage point, so the magnitude of this year's increase is noteworthy reports Dan Robinson. At 7.6 percent, the rate is now significantly higher than December 2001's rate of 6.2 percent. According to Robinson, several factors contributed to the unusually large increase. Claims for unemployment insurance were up 15 percent in December. Also, the monthly sample survey of Alaska households shows a marked increase in unemployment. The household survey adds an important piece to the puzzle because it attempts to count unemployed Alaskans who have not claimed unemployment insurance benefits, either because they are not eligible or for other reasons. Robinson reported employment estimates from November to December dropped, following the normal seasonal pattern. The state is still showing over-the-year growth. This month's numbers continue a pattern that has repeated itself for much of the last year: modest but steady growth in employment combined with a higher rate of growth in unemployment. The weak national economy may be an indirect cause of higher unemployment in Alaska according to Robinson. During the booming economy of the late 90s, the prospect of plentiful jobs in the lower 48 undoubtedly lured many jobless Alaskans south. The current national economy has less to offer and more jobless Alaskans may be deciding to stay in the state to look for work. Robinson noted the woes of Alaska's fishing industry also may be playing a part. Self-employed commercial fishers may once have been able to earn enough money during the fishing season to remain out of the labor market for the rest of the year. Lower prices and smaller profits may be forcing many of them out of the industry or at least causing them to seek jobs during the off-season. Anchorage, Fairbanks, and Juneau all saw moderate increases in their unemployment rates, although they remain below the statewide level. The highest regional unemployment rates continue to be in the Southwest, Gulf Coast, and Northern Regions.
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