Finding hope in a doldrum Alaskan economy

The Alaskan economy has faced setback after setback. Recent economic news has been grim with reports that the state ranks at or near 50th in the nation for certain measures of economic growth. A stagnant economy that has been years in the making poses unfortunate choices to young people. Graduating college seniors must choose between staying in Alaska or moving to the lower 48’s warmer climes.

According to the U.S. Census Bureau, the state’s population is shrinking so much that even our largest city, Anchorage, which peaked at 301,801 people in 2013, has faced declines by the thousands. The latest Census Bureau estimates show that Anchorage has 288,121 residents.

Even with a declining population, housing prices have soared because of inflation. According to Alaska Department of Labor and Workforce Development data, in 2021 Alaskan homes sold for an average of $388,648 while that number was $303,626 in 2013. This is a 28% increase from 2013 to 2021 while during the same period the dollar only inflated by 17%, according to the Bureau of Labor Statistics.

Alongside housing costs, it is no secret that Alaskans pay a steeper price for most goods than our counterparts to the south because of high shipping costs. A trip to the gas pump or the grocery store is usually more expensive than in other states.

According to the University of Alaska Center for Economic Development, the Alaska economy has measured poorly on several key indicators including employment growth, unemployment levels, gross domestic product, and net migration. When adjusted for inflation, the report’s data show that the state’s GDP shrank by 7.1% from 2015 to 2021.

UAA seniors graduating this semester are all too familiar with the economic situation. Many are having issues deciding what to do post graduation as the U.S. economy picks up speed coming out of the pandemic and Alaska lags behind. The choice might seem obvious – leave before things get worse.

To get an idea for options available to seniors, TNL conducted an interview with Alexis Rasley who is a Career Development Coordinator at UAA Career Services. Rasley said that Career Services and the university have a multitude of resources available to help, even in hard economic times.

Rasley said: “What’s really, really important is: A. knowing exactly what you want. I think when you’re throwing out a bunch of resumes everywhere, not really sure what you’re hopeful for, that can be tricky. B. Once you really know what you want - tailoring that resume and that cover letter specifically. Every single resume and cover letter needs to be specific to the job you’re applying for.”

In the Career Services office, there is a wide selection of career development books available for students to read. These range from resume example texts to personal skills assessments that can help in the job application process.

Rasley mentioned that the university utilizes Handshake as a local and national outreach employment tool. They form partnerships with local Alaskan businesses to facilitate student employment and networking prospects. Handshake is much like the popular online networking service Indeed. However, Handshake is made specifically for students and therefore the participating employers are seeking college-aged talent.

Alaskans have unfortunately had a large number of politicians and administrators who have failed to solve the economic problems we are currently facing. Some people have come to the consensus that the state has relied far too much on oil for far too long.

UAA professors Kevin Berry and Matthew Berman share this consensus. In an opinion piece published by the Anchorage Daily News on Oct. 11, Berry wrote about the state’s multitude of funding issues and decades of policymaking that has made Alaska unattractive to young people. The piece describes a more economically vibrant Alaska that would be possible by shifting the focus from oil to infrastructure development — especially in the tourism industry — and a budget that will produce quality education for all students.

Berman agrees with Berry’s take and wrote in an email that “the state has relied on the oil and gas industry for the past 50 years, and the industry, while still an important part of the state economy, is inevitably declining.”

Berman went on to write that there was a point in time, before oil, that Alaskans were willing to pay higher taxes to fund essential aspects of the state’s workings like infrastructure improvements and education on all levels from kindergarten to university.

Alaskans will ultimately decide what becomes of the state. Through voting, advocating for economic diversity, and employing their skills on the local or state levels, Alaskans can weather the storm and come out with a stronger, more vibrant economy. The people of Alaska brought themselves to this crisis and are therefore able to undo it if hard work is done on rethinking what makes Alaska tick.

As for graduating seniors, they should base their decisions on what is best for them and their families. For some that means staying and making a difference here, but for others it means moving to states that have invested in themselves through economic diversification, adequate education funding, and infrastructure investment.