A shrinking workforce is holding back Anchorage’s economic recovery after COVID-19, report finds

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A shrinking workforce is holding back Anchorage’s economic recovery after COVID-19, report finds
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People — especially young people — leaving Alaska to work elsewhere is a major contributor to a severe labor shortage that’s holding back the city’s economic recovery, according to a new report.

A server prepares to clean a table at a restaurant in Eagle River on Thursday, March 4, 2021.

“Practically every employer in Anchorage has jobs open that are going unfilled for lack of qualified candidates,” he said.The openings range from skilled jobs like doctors, architects, accountants, teachers and legal aides to lower-paying jobs like food-service worker and janitors, Popp said.The cause of the worker shortfall has been years in the making, Popp said. The data doesn’t support the myth of potential workers lazily sitting at home, watching TV and living off government subsidies.

Those long-term forces are compounded by trends that arose during the pandemic in 2020, such as people becoming unable to work because theyAnchorage employers have adapted in part by hiring workers from outside the city and state in what amounts to a national competition for some workers, Popp said.Three-quarters of the city’s workforce is locally based, he said. Eleven percent come from the Matanuska-Susitna Borough, and 12% come from the Lower 48, he said.

Buoying that sector is the return of cruise ships to Southcentral Alaska for the first time since 2019, he said. Also, passenger numbers at the Ted Stevens Anchorage International Airport, at 1.8 million visitors through May, is well above last year. The huge number of jobs available should generate optimism, but a consumer sentiment survey of future expectations was not optimistic, he said.

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