Economy

Source: Alaska Department of Labor and Workforce Development
Source Link: http://laborstats.alaska.gov/cgi/dataanalysis/AreaSelection.asp?tableName=Labforce

Discussion:

The discussion will be written after a full convening of Sitka Indicators stakeholder group.

Source: Alaska Department of Labor and Workforce Development
Source Link: http://laborstats.alaska.gov/cgi/dataanalysis/?PAGEID=94&SUBID=185

Notes:

• Excluded groups: Certain segments of Alaska’s employed population are excluded from unemployment insurance coverage, and no ongoing method of collecting employment and payroll information is available for these individuals. Research and Analysis acknowledges the importance of this economic activity, but has no reliable method to augment the data published here. The largest segments of the employed population excluded from these data include:

  • Self-employed individuals
  • Fishers
  • Unpaid family help
  • Domestics
  • Most individuals engaged in agriculture

• For a complete listing of all the occupations compliled under each sector, click here.

Discussion:

The discussion will be written after a full convening of Sitka Indicators stakeholder group.

Source: Alaska Department of Labor and Workforce Development
Source Link: http://laborstats.alaska.gov/cgi/dataanalysis/?PAGEID=94&SUBID=185

Notes:

• Excluded groups: Certain segments of Alaska’s employed population are excluded from unemployment insurance coverage, and no ongoing method of collecting employment and payroll information is available for these individuals. Research and Analysis acknowledges the importance of this economic activity, but has no reliable method to augment the data published here. The largest segments of the employed population excluded from these data include:

  • Self-employed individuals
  • Fishers
  • Unpaid family help
  • Domestics
  • Most individuals engaged in agriculture

• For a complete listing of all the occupations compliled under each sector, click here.

Discussion:

The discussion will be written after a full convening of Sitka Indicators stakeholder group.

Source: Regional Economic Information System, Bureau of Economic Analysis
Source Link: http://www.bea.gov/regional/reis/

Notes:

• Per capita personal income was computed using Census Bureau midyear population estimates. Estimates for 2000-2007 reflect county population estimates available as of April 2009.
• All state and local area dollar estimates are in current dollars (not adjusted for inflation).

Discussion:

The discussion will be written after a full convening of Sitka Indicators stakeholder group.

Sitka’s Unemployment Rate Low

How are we doing?

In 2000, Sitka’s unemployment rate dropped to 5%, just slightly lower than it was in 1990. Over the past 10 years, unemployment in Sitka has been lower than the statewide average, with the exception of the year immediately following the APC mill closure. The rate for a given year does not reflect fluctuations within that year. Sitka’s rates tend to go up in the winter and down in the summer because of the seasonal nature of some of Sitka’s leading industries.

Why is this important?

The unemployment rate reflects the number of people looking for work but not finding it. It does not include those whose unemployment benefits have run out. Unemployment rates are one indicator of the overall economic health of a community, and Sitka’s diverse economy has helped keep those rates fairly low.

Services is Sitka’s Largest Employment Sector

How are we doing?

Sitka has witnessed a steady increase in its services sector from 806 employees in 1991 to 1,259 in 1999. The leaders in the services sector in 1999 were: health services 36%, social services 16%, membership organizations 12%, hotels 11%, and education 8%. Manufacturing jobs have declined by 62% since the APC mill closure, but manufacturing still remains among the leading employment sectors because it includes seafood processing. Commercial fishing jobs, however, are not reflected in the Department of Labor statistics because most fishermen and deckhands are self-employed.

Why is this important?

Diversity strengthens Sitka’s economy for times when any sectors of the economy weaken. Sitka’s diversity proved to be a strength in the years following the APC mill closure. The rise in Sitka’s services sector at a time of decline in manufacturing is not a shift unique to Sitka, but parallels national trends of recent years.

Commercial Fishing in Sitka Faces Challenges

How are we doing?

Sitka fishers’ incomes vary each year depending on market prices and abundance of respective species. The graph reflects totals for all commercial fisheries combined. Salmon fisheries make up the largest percentage of these combined harvests. Both the number of permits fished and the number of people fishing their permits have dropped over the last decade from 521 people fishing 1,016 permits in 1990 to 444 people fishing 832 permits in 2000. (These numbers do not include crew members.) Many fishers hold more than one permit and take part in different fisheries.

Why is this important?

Commercial fishing continues to be one of the economic mainstays of Sitka. While biological cycles and environmental factors affect annual fish stocks, fisheries management has kept most stocks strong. The livelihoods of Sitka fishers will likely parallel the strength of global markets and will be specifically affected by the dominance of farmed fish.

Sitka’s Per Capita Income Growing

How are we doing?

In 1999, Sitkans’ per capita annual incomes averaged $1,200 more than that of Alaskans and Americans overall. The national per capita income has caught up to Alaska’s per capita income, mostly because of lower wage growth in Alaska. Sitka’s per capita income has gained strength after the wage slump associated with the APC mill closure.

Why is this important?

Per capita income is used as an economic tool and does not represent actual individual income. Per capita income is the total personal income divided by the number of residents. Total personal income includes earnings (e.g. wages and salaries, business income), dividends, interest, rental income, and transfer payments (such as social security).

Cruise Ship Visitors Important Element in Local Economy

How are we doing?

Following a rise and fall in cruise ship activity, the number of cruise ship visitors in 2000 amounted to nearly the same number as in 1991. Though cruise ship numbers have generally declined since their peak in 1996, other aspects of the visitor industry have helped reduce that impact. Convention activity in Sitka has doubled since 1993. Conventioneers contributed more than an estimated $3 million to the local economy in 2000.

Why is this important?

Cruise ship tourism has become a vital part of the local economy, and yet it is not without its controversies. The small town character of Sitka is something highly valued by locals and visitors alike. Keeping that character while at the same time maintaining a strong visitor industry will require the careful thought and attention of both local citizens and industry representatives.

Food and Heating Costs On the Rise

How are we doing?

In Sitka, weekly food costs have remained relatively stable over the last decade for a family of four. In 2000, the weekly food cost for a family of four was $120 in Sitka, and $101 in Anchorage, where costs have been consistently lower. A family’s cost for heating their home with oil is similarly higher in Sitka than in Anchorage. The average cost of a 55 gallon tank of #1 heating oil in Sitka has risen 56% since 1990 and 28% in Anchorage during the same time period.

Why is this important?

Food is typically a family’s second highest monthly expenditure following the cost of housing. The cost of food index is the price of a standardized basket of basic groceries, though it does not reflect all items at the grocery store. For Alaskan families, heating a home is an equally important expenditure. The recent rise in heating oil prices has meant that Sitkans have had to budget more for this essential cost of living.

Public Assistance Claims Down Following Welfare to Work

How are we doing?

Public assistance programs remain important for some Sitka families. These include Food Stamps, Heating Assistance, Adult Public Assistance, Medicaid, and Temporary Assistance. Efforts to move families from
welfare to work have resulted in a Temporary Assistance case load reduction of nearly 60%. Recipients with employment barriers, such as mental illness, drug and alcohol abuse, learning disabilities, and family violence, represent a higher proportion of the case load than in the past. Tlingit & Haida Central Council has recently taken over welfare services for the Alaska Native population.

Why is this important?

The number of people receiving some form of public assistance is a measure of the extent to which Sitkans require help to meet basic needs. Strong partnerships between state and community agencies provide case
management, child care, workforce development and other supportive services for these families and individuals.

Number of Sitka Jobs and Businesses Growing

How are we doing?

The number of full and part-time jobs grew in 1998 after eight years of no growth or job loss. The exception to this trend has been the number of Sitkans who are self-employed or own businesses. The number of these jobs has risen consistently from 13% of all jobs in 1980 to 33% in 1997. Sitka also hosts a significant number of nonresident workers. In 1997, nonresident workers made up as much as 22% of the labor pool, with average wages only half that of residents.

Why is this important?

The number of jobs in Sitka is an important indicator of the health of Sitka’s economy. The number of jobs generated by a company or government agency is often cited as its contribution to the local economy. It’s impor-tant to note that proprietorships and wage and salary jobs refer to numbers of full and part-time jobs, not numbers of people employed. Many Sitkans work more than one job and many jobs do not necessarily pay a living wage. Despite fluctuations in the number of jobs in Sitka, a pretty consistent 50% of the population has been employed at any one time over the last decade.

Economy Adjusts after Mill Closure

How are we doing?

In 1998, Sitka’s unemployment rate dropped to its lowest level since 1990. This low rate likely reflects the tight national labor market and the overall economic health of Sitka. The unemployment rate has consistently been one of the lowest in the state, except for a brief rise to over 10% following the 1993 APC mill closure. It should be noted that unemployment rates do not in clude those whose unemployment benefits have run out.

Why is this important?

The unemployment rate reflects the number of people looking for work but not finding it. Despite its relatively low level, Sitka’s unemployment rate remains above many areas in the lower 48. This is likely due to the seasonal nature of many industries in Sitka, which leads to higher unemployment in the winter and a higher average rate for the year.

Employment by Industry Shifts in Sitka

How are we doing?

A lot of Sitkans are working at different jobs than they were ten years ago. The most obvious changes are in the service and manufacturing areas. Manufacturing jobs, which include timber processing, have dropped 67%; service jobs, including most in the health field, have grown 33% over the same time period. While manufacturing, wholesale trade, and federal government sectors have lost jobs, the retail trade, service, local and state government and construction sectors have contributed a net addition of 330 jobs to the economy.

Why is this important?

The shift away from relatively high paid manufacturing and federal government jobs has meant a depression of wages. These are just now beginning to rise. The greater the diversity of the economy, the more resilient it is when one or another sector weakens. This diversity proved a strength when the APC mill shut down in 1993. It should be noted that shrinkage of Sitka’s Manufacturing sector and growth of the Services sector is not unique; it mirrors a national trend of recent years.

Wages Up After Three-Year Plateau

How are we doing?

After the 1993 closure of the APC mill, average wages among wage and salary employees fell and remained unchanged for three years. In 1998, the average wage increased by 2.2%, the largest percent increase since 1992.

Why is this important?

Trends in wage growth affect Sitkans who are not self employed or owners of their own businesses. Average monthly wage is a strong indicator of how the average working aged family is faring economically.

Total Personal Income Climbs in Sitka

How are we doing?

The total personal income generated by all persons living in Sitka has increased 15% since 1990. Total personal income includes the earnings (wages and salaries, other labor income, business owners’ income); dividends, interest, and rent, and transfer payments (such as social security) received by residents of Sitka. Both transfer and capital payments have grown as Sitkans retire and the stock market booms.

Why is this important?

When evaluating the health of Sitka’s economy and the buying power of its citizens, it is important to consider all sources of wealth. As Sitka changes demographically, it is likely that an even larger percentage of total personal income will come from transfer payments like Social Security and investments that are often liquidated after retirement. This shift is likely to lend more stability to the local economy because this income is not subject to local economic conditions.

Per Capita Income Equals State After Four Year Slump

How are we doing?

Sitka’s per capita income is the total personal income generated divided by the number of Sitka residents. At $24,995 in 1997, Sitkans’ per capita income is roughly equal to Alaska as a whole, but $1,529 lower than the Southeast region. Since 1990, per capita income has increased 16% for Sitka, 13% for Southeast, and 18% for the state. The comparative strength of per capita income in Southeast is largely due to higher wages in Juneau.

Why is this important?

Per capita income is a key measure of personal wealth and the vitality of Sitka’s economy. Over the last twenty years, Alaska’s per capita income has been lower than that of the nation as a whole, mostly because of slower wage growth. Sitka’s per capita income has gained relative strength after a wage slump associated with the APC mill closure.

Flow of Cruise Ship Passengers Down in 1997 and 1998

How are we doing?

The estimated number of cruise ship passengers visiting Sitka has fallen 35% from the high of 252,000 passengers in 1996. There has also been a decrease in marine ferry passengers of 17% since 1989. The number of Alaska Airlines passengers has increased 10% over 1992 levels. In the case of airline and marine highway passengers, the figures do not distinguish between travel by locals and visitors. The number of convention goers tracked by the Sitka Convention and Visitors Bureau have increased 300% from 1,780 in 1993 to 7,216 visitors in 1998.

Why is this important?

Tourism has been a controversial issue among communities in Southeast. Many Sitkans appreciate the economic value of tourism, but some have misgivings about the impact large scale tourism can have on the small town feel of the community.

Food Costs Remain Relatively Stable

How are we doing?

Over the last five years the relatively volatile cost of food has remained largely unchanged. Food remains more expensive in Sitka than in larger communities like Juneau and Anchorage, as well as the country as a whole. While the cost of commodities like food are still more expensive in Alaska than the country as a whole, the margin is not as large as it used to be. Sitkans also enrich their diets with subsistence resources which helps to keep grocery bills down.

Why is this important?

Beyond the cost of housing, the cost of food is the largest monthly expenditure for many families. The cost of food index is the price of a basic basket of groceries estimated to feed a family of four with teenaged children. While the index does not reflect all the items at the grocery store, it is a good measure of how the price of food changes over time.

Sitka Mortgages Fluctuate While Rents Remain Stable

How are we doing?

Average rents in Sitka have increased $50 or 8% over the last five years while the average mortgage has risen 15% since 1991. Rent has been relatively stable over the last five years, increasing at or below the rate of inflation, while mortgages have fluctuated. The average rent in Sitka is average for the entire Southeast region. Rents in Sitka are on average $140 lower than Juneau, $20 higher than Ketchikan and $80 higher than Wrangell and Petersburg.

Why is this important?

Housing is the single largest constant cost for most families, and affordable housing is of major concern to Sitkans. Housing costs are relatively high across Alaska because of high construction, maintenance, and land costs. The average rent and mortgage data that is available is inadequate for judging long-term trends, but it is a good indicator of housing costs for most Sitkans over the last five years.