Alaska's workforce is becoming increasingly reliant on nonresidents, with 23.5% of workers in 2023 not being state residents. All major industries are showing this trend, driven by an ongoing worker shortage.
The number of nonresident workers in Alaska hit a record high in 2023, with nearly one in every four workers in the state not being residents. According to the Alaska Department of Labor and Workforce Development, 92,664 nonresidents made up 23.5% of Alaska's workforce, the highest percentage since 1995. This reliance on out-of-state labor is spreading across all major industries in Alaska.
While industries like seafood processing and tourism have long depended on nonresident workers, nearly all sectors are increasingly relying on them. This trend is likely driven by an ongoing worker shortage in Alaska, which has persisted into 2024. Rob Kreiger, a state economist, noted that the construction sector saw the largest percentage increase in nonresident hires in 2023, likely fueled by projects funded through the Infrastructure Investment and Jobs Act of 2021 and increased oil activity. The state economists use Alaska Permanent Fund dividend applications to analyze worker residency. Other industries experiencing significant increases in nonresident employment include oil and gas, metals mining, and healthcare. The tourism industry saw a slight increase in its reliance on nonresident workers as well. The report highlights a shift in Alaska's labor market, with a growing dependence on workers from outside the state. This trend has implications for the state's economy, demographics, and future workforce needs
NONRESIDENT WORKERS ALASKA LABOR MARKET CONSTRUCTION INDUSTRY INFRASTRUCTURE INVESTMENT WORKER SHORTAGE
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