Southcentral spotlight: anchorage economy showing steady growth.

• Author: Barbour, Tracy
• Position: Regional Review - Anchorage Economic Development Corp.

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Southcentral Alaska encompasses the shorelines and uplands of the central Gulf of Alaska. While it has no official boundary, the area is broadly considered to include Cook Inlet, the Matanuska-Susitna Valley, the Kenai Peninsula, Prince William Sound and the Copper River Valley. The terrain of Southcentral contains a number of majestic mountains, including the Chugach, Talkeetna, Kenai and Wrangell mountains, as well as the Alaska Range.

More than half of the state's population resides in Southcentral, with Anchorage being the most populous city. Other Southcentral communities include Palmer, Wasilla, Seward, Kenai, Soldotna, Homer, Valdez and Cordova. The economy of the area is primarily driven by tourism, fisheries and petroleum production.

The Southcentral climate is relatively mild, with temperatures ranging from an average high of 65 degrees Fahrenheit in July to an average low of -10 degrees in December. This makes the region a popular place for residents and vacationers who enjoy up to 18 hours of daylight each day in June and July.

DIVERSITY BENEFITS ANCHORAGE

The Municipality of Anchorage, boasting a population of about 292,000, is one of the most culturally diverse parts of the state. The cultural diversity is evident in the Anchorage School District, where minority students comprise 52 percent of the student population and a total of about 90 different languages are spoken at home among students. After English, the five most common languages spoken among students are Spanish, Hmong, Samoan, Filipino and Yupik.

Anchorage is also distinctive because of its economic diversity. The city's economy is driven by government; trade; health and educational services; business and professional services; oil, gas and mining; and leisure and hospitality.

Economic and cultural diversity are a major part of Anchorage's appeal, including its spectacular scenery, quality of life and great location, according Bill Popp, president and CEO of the Anchorage Economic Development Corp. (AEDC). "Within minutes, you can be in the true Alaska wilderness," he said.

Popp says Anchorage has many things to be happy about, including its return to a state of steady growth. The city's unemployment rate is dropping, falling 1.3 percentage points in March of this year from its recent high of 7.8 percent in March 2010.

"We're trending very nicely," Popp said. "Our unemployment is currently averaging 6.5 percent for the first quarter and that is in the face of a larger work...