Juneau: Alaska's capital city faring well.

• Author: Barbour, Tracy
• Position: Towns in Transition - Statistical data

[ILLUSTRATION OMITTED]

Juneau has a fairly diverse and thriving economy compared to many other places in Alaska. The economic system of Alaska's capital city is bolstered by a long natural resources legacy fueled in great part by mining and fishing. Juneau's role as a social services hub and its ample supply of steady government jobs help to keep the economy strong, said to Mali Abrahamson, an Alaska Department of Labor economist who focuses on Southeast Alaska. In fact, she says Juneau's abundance of local, State, federal and tribal jobs are an important part of what makes its economy so diverse. "Within government employment, there's such an array of occupations, from managing the PFD to being a deckhand on a boat," Abrahamson said.

The government is the largest employer for the city and borough of Juneau, representing more than 40 percent of jobs compared to 25 percent for government employment statewide. The impact of government employment is extremely significant for Juneau. "All of those workers have to buy goods and services, rent houses and send their kids to school," Abrahamson said. "That's really important for the demand in the local economy."

Employment in Juneau and the rest of Southeast Alaska took a hit in 2009. The city experienced a 3.4 percent decrease--627 jobs--in total employment almost exclusively in the private sector. The job loss wasn't as bad as in other parts of Alaska or other states because it was dampened by the strong government component. But Juneau's employment numbers rebounded between 2009 and 2010, growing by 404 jobs. Of those gains, 252 jobs were in the private sector.

This year, it was a different story, according to Brian Holst, executive director of the Juneau Economic Development Council (JEDC). "We don't have full numbers for 2011 yet, but we anticipate that government employment will be relatively flat," he said in an Oct. 25 interview.

Holst feels the stability of the government sector is critical to Juneau's economy staying vibrant. But having relatively flat government employment is positive for the local economy. Overall, it's been a good year for Juneau's economy relative to the last few years. "Juneau, like much of Alaska has fared well during the national recession," Holst said. "We see that the population is up, total payroll is up, housing starts are up and home values are increasing."

BRIGHT SPOTS IN THE ECONOMY

Holst says the mining industry is an absolute bright spot on Juneau's...