Total wages were up slightly in the first quarter of this year in Alaska, but an economist said the change was too small for it to indicate a big shift in the state's troubled economy.
New state data show that wages in most sectors of Alaska's economy increased compared to the first quarter of 2016, and wages overall rose by 0.6 percent or $25 million, the Alaska Department of Labor and Workforce Development said Monday. Total wages in the first quarter of 2017 in the state totaled nearly $4.3 billion.
The increase comes after four straight quarters of declining wages in 2016, compared to 2015.
“Four quarters of losses and then this quarter of just barely a gain — it’s not enough information to say we’re turning it around yet,” said Karinne Wiebold, an economist at the state labor department. “It’s just one little glimmer of positive.”
Employment last month was down compared to the previous year, she added.
Health care saw the biggest gains, with wage growth of 11.4 percent. The accommodation sector saw an increase of 6.5 percent, transportation and warehousing wages grew nearly 5 percent, and local government wages went up 4.4 percent. Many areas showed modest gains.
[Alaska's median income ticked up last year; income inequality went down]
“I don’t really have a firm grasp on what exactly would be driving it, except that it’s broad-based, and that’s nice to see,” Wiebold said.
The oil and gas industry saw the biggest drop in wages, at 14 percent, and construction saw a nearly 11 percent drop.
The wages were not adjusted for inflation. Wiebold said that's because for comparing wages just a year apart, inflation isn't a big factor.