Percentage of nonresident workers in Alaska hits highest point in years

The number of nonresidents in the Alaska workforce has reached its highest rate in nearly 25 years.

About 22.5% of Alaska’s workforce lived outside Alaska in 2023, the highest since at least 2000, according to preliminary data released by Dan Robinson, research chief with the Alaska Department of Labor and Workforce Development.

The increase is partly a result of job growth fueled by major projects underway in the state, he said.

Another factor is Alaska’s declining population of working-age residents. That has dropped for many years, part of a long-term trend of more people leaving Alaska than arriving.

The percentage of nonresident workers has increased since 2020, according to data Robinson presented at this month’s annual conference held by the Resource Development Council.

The percentage is up slightly from its highest rate in recent history, when it was 21.6% in 2015, he said.

Comparable records date back to about 2000, he said.

The nonresident worker rate in Alaska is closely watched, requiring an annual report to the governor each year.

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Seafood processing, tourism, oil field services and mining rely on a large percentage of out-of-state workers, this year’s report shows.

Major projects like the Pikka and Willow oil fields, as well as infrastructure projects related to the 2021 Infrastructure Investment and Jobs Act, have boosted the demand for workers.

“Alaska broadly has had more job growth than the (rest of the) U.S. for the last two years,” Robinson said, with construction jobs leading the way.

Economically, it’s a plus for an Alaskan to hold a job instead of a nonresident, since more money stays in the state, Robinson said.

But nonresident workers provide benefits as well.

They support economic growth, allowing employers to fill positions if an Alaskan isn’t available. And in some cases, the unique skills a nonresident brings to Alaska can create jobs, such as a mining or petroleum technician whose work might lead to new opportunities, Robinson said.

“Don’t assume that every nonresident worker is a bad thing for the economy,” he said.

More details about the 2023 nonresident workforce, including final numbers, will be published in January in the labor department’s report to the Legislature, Robinson said.