New federal statistics that young Alaskan workers face greater unemployment than the general population. KDLG’s Chase Cavanaugh has more.
Research by the US Bureau of Labor Statistics suggests that unemployment among youth is higher than the state’s average rate. In 2013, about 17% of 16-19 year olds were unemployed, and 10% of those 20 to 24. By comparison, Alaska’s overall unemployment rate was about 6%. State Department of Labor economist Neil Fried says part of this is due to the seasonality of Alaska jobs, such as fishing, but more can be attributed to people moving or simply not having enough work experience.
“A lot of them are graduating from school, and after they do that they look for work or they go into the military or they physically move somewhere. Generally speaking, their jobs, it doesn’t matter if they move around as much because of the earnings and the kinds of jobs that they’re concentrated in, it doesn’t make a big difference. Younger workers, just by definition of age, have less work experience, and therefore, that can also be a barrier or make it harder for those workers to find employment.”
Another trend is less participation in the labor force, which means a person is neither employed nor searching for a job. For 20 to 24 year olds, the rate has hovered between 70 and 80% each year, while for teenagers, the rate dropped from 47% in 2003 to 42% in 2013. Fried says part of this has to do with a more competitive labor market, while for young people in particular, it’s a matter of training.
“If we looked at younger people ten years ago versus today, a smaller percent of those younger workers are in the labor market today, and I think one of the reasons is because more of them are choosing postsecondary training of some sort.”
While Fried admits that it can be difficult to find jobs in Alaska, particularly in rural areas, he says the youth unemployment rate, defined as 16 to 24 year olds, was 12.3% in 2013, the 15th lowest in the country.
“This has generally, in recent years, been a better place for younger people to find employment. We have one of the lower unemployment rates for younger workers in the country, and I think part of that’s just cause generally speaking, we’ve had a better job market than most of the rest of the country.”
More information on youth unemployment can be found in the August issue of Alaska Economic Trends, a publication of the state’s Department of Labor and Workforce Development.