Public-sector employment: government and military stabilize economy.

• Author: Orr, Vanessa
• Position: GOVERNMENT

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In a tough economy, jobs--or the lack of them--are a subject foremost in people's minds. In Alaska, 2009 marked the first time in 21 years of growth that the state experienced a drop in employment. The good news for the 49th state, however, is that all levels of the public sector grew, helping the state to fare better than many states in the Lower 48.

"State and local government numbers are often a reflection of an area's fiscal health, and in Alaska's case, other states would love to be in our fiscal position," said Neal Fried, economist, Alaska Department of Labor and Workforce Development. "If you look at the employment count for government in Alaska, the public sector is larger than the national average. That, combined with the fact that oil prices remained relatively high, helped us to avoid hits like were felt in other parts of the country."

According to preliminary data for 2009, Alaska claimed 17,000 federal civilian workers last year; an increase of 100 jobs from the previous year. State government jobs numbered 25,400, which includes the university system, railroad, State institutions and State government. Local government employment, which includes school districts and city and borough government, equaled 41,800 jobs, an increase over 2008 by approximately 600 jobs.

"All pieces of government grew a little last year in contrast with most of the rest of the economy," said Fried. "In 2010, it looks like health care, social assistance and government will continue to grow, with federal government getting an extra boost from the 2010 census. It is projected that in 2010, overall, government will grow by 1 percent, similar to 2009."

While most of these jobs are located in Anchorage, Fairbanks and Juneau, Fried says local government exists everywhere. "School districts are very often the largest single employer in many communities," he added. "It is not unusual in rural communities to have more government positions than private-sector jobs."

MILITARY COMPONENT

One other factor affecting Alaska's economic well being is the number of active duty personnel, or uniformed military, employed within the state. According to Fried, active duty personnel in 2009 equaled 23,191, including positions in the Coast Guard.

"The employment numbers in Fairbanks and Anchorage skew a little differently because each area has two large military installations, which results in a disproportionate amount of military workers and civilian...