Alaska Department of Labor Tony Knowles, Governor

In the NWAB, most residents are Inupiat Eskimo, who participate in subsistence harvest of caribou, salmon, seal and moose. A tightly integrated social area, its economic powerhouse is the Red Dog Mine. Alaska Department of Labor Tony Knowles, Governor

January 1999 Volume 19 Number 1 ISSN 0160-3345 Alaska Economic Trends is a monthly publication dealing with a variety of economic-related issues in the state. Alaska Economic Trends is funded by the Employment Security Division and published by the Alaska Department of Labor, P.O. Box 21149, Juneau, Alaska 99802-1149. Printed and distributed by Assets, Inc., a vocational training and employment program, at a cost of $.70 per copy. For more information, call the AKDOL Publications Office at (907) 465-6019 or email the authors. Material in this publication is public information and, with appropriate credit, may be reproduced without permission. Diana Kelm, Editor Joanne Erskine, Associate Editor Neal Fried is a labor economist with the Research and Analysis Section, Administrative Services Division, Alaska Department of Labor in Anchorage. Brigitta Windisch-Cole is a labor economist with the Research and Analysis Section, Administrative Services Division, Alaska Department of Labor in Anchorage. Gaile Haynes is an employment security analyst with the Unemployment Insurance Section, Employment Security Division, Alaska Department of Labor in Juneau. Profile: Northwest Arctic Borough 3 Unemployment Insurance 10 Employment Scene 14 Year Winds Down on Positive Note

Population of Communities in Northwest Arctic Borough 1990 1998 Northwest Arctic Borough 6,113 6,844 Ambler 311 315 Buckland 318 408 Deering 157 156 Kiana 385 402 Kivalina 317 349 Kobuk 69 102 Kotzebue 2,751 2,964 Noatak 333 410 Noorvik 531 598 Selawik 596 746 Shungnak 223 257 Remainder of census subarea 122 137 Red Dog 39 42 Candle 10 11 Source: Alaska Department of Labor, Research and Analysis Section

A Statistical Snapshot Of the Northwest Arctic Borough Alaska Northwest Arctic Borough Population 1998 621,400 6,844 A young population and large households Median age (1997) 32.2 23.0 Persons per household (1997) 2.7 3.75 with more children (1997) Percent under 5 years old 8.5% 11.5% Percent school age population (5 to 17) 23.2 32.2 Percent adult workforce population (18 to 64) 63.2 51.2 Percent seniors (65 years & over) 5.1 5.1...and more women Percent female (1997) 47.9% 48.1% Demographics of the region (1997) Percent Native American 16.7% 87.1% Percent White 74.2 11.7 Percent African American 4.5 0.2 Percent Asian/Pacific Islander 4.6 1.1 Percent Hispanic 4.5 1.6 More unemployed (1997) Percent of all 16 years + in labor force (est.) 72.2% 54.5% Percent unemployed (annual average) 7.9 16.1 Income measured: Personal per capita income (1996) $24,597 $18,392 Wage and salary employment) 32,781 38,515 (annual average 1997) Educational Attainment (1990) Percent high school graduate or higher 86.6% 63.8% Percent bachelor's degree or higher 23.0% 11.9% Sources: Alaska Department of Labor, Research and Analysis Section; U.S. Department of Commerce, Bureau of Economic Analysis, and Bureau of the Census

2,250 2,000 1,750 1,500 1,250 School Enrollments Increase Northwest Arctic Borough School October Enrollment Counts (Grades K-12) 1,000 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 Source: Alaska Department of Education District

18.2% 0.9% is Largest Employer Services 25.2% 31.6% Finance/Insur/ Real Estate 4.9% 9.1% Source: Alaska Department of Labor, Research and Analysis Section Trans/Comm/Util 10.3%

Major Employers In Northwest Arctic Borough Annual Average Employment Rank Employer 1997 1 Cominco Alaska Inc. 370 2 Maniilaq Association Inc. 369 3 Northwest Arctic Borough School Dist. 356 4 Veco Inc. 96 5 Kikiktagruk Inupiat Corp. 93 6 City of Kotzebue 74 7 NANA/Marriott, joint venture 63 8 Federal 62 9 State 58 10 Baker Aviation, Inc. 45 11 Arrow Transportation International, Inc. 42 12 Carr Gottstein Foods 37 13 Alaska Commercial Company 34 14 Nullagvik Hotel 33 15 City of Noorvik 30 16 OTZ Telephone Cooperative, Inc. 28 17 Selawik Council 25 17 Lions Club of Kotzebue 25 Source: Alaska Department of Labor, Research and Analysis Section

Wage and Salary Employment In the Northwest Arctic Borough 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 Total Industries 1,822 1,823 1,732 1,785 1,991 2,220 2,190 2,227 2,298 2,465 2,509 2,436 2,564 * * * 41 116 266 327 337 335 343 358 360 467 * * * * 33 43 28 9 11 23 42 24 19 Manufacturing * * * * * * * * * * * 2 0 Trans/Comm/Util 120 99 153 153 167 192 202 210 223 230 236 251 263 188 232 209 171 184 152 101 127 242 224 256 243 233 Finance/Insur/R.E. 81 69 86 84 65 101 80 60 65 96 90 103 125 Services 251 277 336 354 413 438 472 516 522 643 688 630 645 1,132 1,104 910 932 1,009 1,028 974 964 895 900 837 823 809 Federal 137 151 111 101 89 79 78 79 75 67 63 63 62 State 93 92 93 88 86 84 77 79 77 73 62 60 58 Local 903 862 705 744 834 865 819 806 744 760 712 700 689 Miscellaneous * * * * * * * * * 6 2 1 0 * Nondisclosable Source: Alaska Department of Labor, Research and Analysis Section

's Payroll the Largest In Northwest Arctic Borough in 1997 Red Dog Mine 26.7% 1.2% Other 6.5% 26.2% * Contractors during Red Dog Mine expansion project Source: Alaska Department of Labor, Research and Analysis Section * Services 18.9% Finance/ Insur/R.E. 4.3% 5.6% Trans/Comm/Util 10.3%

Distribution 90.0% of FUTA Taxes (Federal Unemployment Tax Act) 90% Tax Credit to Employer * 10% 10.0% Given to State * If employer pays timely and Alaska complies with federal law Source: Alaska Department of Labor, Employment Security Division

67.0% Satisfaction with VICTOR* From UI client surveys *Telephonic claim filing system 67% Very Good 24.0% 24% Good 5% Adequate 5.0% 2% 2% 2.0% 2.0% Poor Unsatisfactory Source: Alaska Department of Labor, Employment Security Division

Overall Service Satisfaction 38.0% Good Very Good 54.0% 0% Unsatisfactory 7.0% Adequate 1.0% Poor Source: Alaska Department of Labor, Employment Security Division

Courtesy and Respect How claimants felt they were treated 67% Very Good 26% Good Source: Alaska Department of Labor, Employment Security Division 5% Adequate 2% Poor

(continued on page 18) 50,000 40,000 30,000 20,000 10,000 Retail Creates 10,000 Jobs In 10 years Annual av erage average retail employ retail ment employment 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998* *Based on 10 months Source: Alaska Department of Labor, Research and Analysis Section

by Place of Work Alaska Nonagricultural Wage and Salary Employment Total Nonag. Wage & Salary Goods-producing Service-producing Oil & Gas Extraction Manufacturing Durable Goods Lumber & Wood Products Nondurable Goods Seafood Processing Transportation/Comm/Utilities Trucking & Warehousing Water Transportation Air Transportation Communications Electric, Gas & Sanitary Svcs. Wholesale Retail Gen. Merchandise & Apparel Food Stores Eating & Drinking Places Finance/Insurance/Real Estate Services & Misc. Hotels & Lodging Places Business Services Health Services Legal Services Social Services Engineering & Mgmt. Svcs. Federal State Local preliminary revised Changes from: 10/98 9/98 10/97 9/98 10/97 275,400 285,700 269,500-10,300 5,900 38,900 43,400 38,200-4,500 700 236,500 242,300 231,300-5,800 5,200 11,100 11,200 10,700-100 400 9,400 9,400 8,900 0 500 14,700 16,000 14,200-1,300 500 13,100 16,200 13,300-3,100-200 3,000 3,200 3,400-200 -400 1,800 1,900 2,300-100 -500 10,100 13,000 9,900-2,900 200 7,500 10,300 7,200-2,800 300 25,300 26,700 24,500-1,400 800 2,900 3,000 2,800-100 100 2,000 2,600 2,000-600 0 8,800 9,000 8,300-200 500 4,400 4,500 4,200-100 200 2,500 2,400 2,400 100 100 56,300 59,000 55,100-2,700 1,200 8,700 9,000 8,700-300 0 47,600 50,000 46,400-2,400 1,200 9,800 9,900 9,700-100 100 7,000 7,100 6,900-100 100 15,700 17,600 15,100-1,900 600 12,500 12,800 12,200-300 300 67,700 70,600 65,400-2,900 2,300 6,300 8,300 6,000-2,000 300 8,900 9,300 8,600-400 300 15,100 15,000 14,800 100 300 1,700 1,700 1,700 0 0 7,300 7,200 6,900 100 400 7,800 7,800 7,500 0 300 74,700 73,200 74,100 1,500 600 16,900 17,500 17,000-600 -100 21,700 21,100 21,400 600 300 36,100 34,600 35,700 1,500 400 Municipality of Anchorage Total Nonag. Wage & Salary Goods-producing Service-producing Oil & Gas Extraction Manufacturing Transportation/Comm/Utilities Air Transportation Communications Wholesale Retail Gen. Merchandise & Apparel Food Stores Eating & Drinking Places Finance/Insurance/Real Estate Services & Misc. Hotels & Lodging Places Business Services Health Services Legal Services Social Services Engineering & Mgmt. Svcs. Federal State Local preliminary revised Changes from: 10/98 9/98 10/97 9/98 10/97 129,000 129,900 125,000-900 4,000 12,300 12,900 11,400-600 900 116,700 117,000 113,600-300 3,100 2,700 2,700 2,500 0 200 2,500 2,500 2,400 0 100 7,600 8,200 7,000-600 600 2,000 2,000 1,900 0 100 12,900 12,900 12,300 0 600 5,600 5,400 5,200 200 400 2,600 2,600 2,400 0 200 31,200 31,600 30,500-400 700 6,400 6,400 6,400 0 0 24,800 25,200 24,100-400 700 5,000 4,900 4,900 100 100 2,900 3,000 2,900-100 0 8,700 9,200 8,400-500 300 7,300 7,300 7,200 0 100 36,500 36,900 35,200-400 1,300 2,600 2,800 2,500-200 100 6,300 6,400 6,200-100 100 7,900 7,900 7,700 0 200 1,200 1,200 1,200 0 0 3,300 3,300 3,100 0 200 5,800 5,700 5,600 100 200 28,800 28,300 28,400 500 400 9,800 10,000 9,900-200 -100 8,600 8,200 8,400 400 200 10,400 10,100 10,100 300 300 Notes to Exhibits 2, 3, 4 Nonagricultural excludes self-employed workers, fishers, domestics, and unpaid family workers as well as agricultural workers. category includes employees of public school systems and the University of Alaska. Exhibits 2 & 3 Prepared in cooperation with the U.S. Department of Labor, Bureau of Labor Statistics. Exhibit 4 Prepared in part with funding from the Employment Security Division. Hours and Earnings for Selected Industries Source: Alaska Department of Labor, Research and Analysis Section Average Weekly Earnings Average Weekly Hours Average Hourly Earnings preliminary revised preliminary revised preliminary revised 10/98 9/98 10/97 10/98 9/98 10/97 10/98 9/98 10/97 Manufacturing Seafood Processing Transportation/Comm/Utilities Wholesale Retail Finance/Insurance/Real Estate $1,514.05 $1,382.73 $1,325.70 53.5 48.5 49.1 $28.30 $28.51 $27.00 1,131.27 1,107.14 1,118.48 42.9 41.7 44.0 26.37 26.55 25.42 581.53 625.54 650.33 51.6 57.6 55.3 11.27 10.86 11.76 469.24 557.15 521.86 54.5 61.7 60.4 8.61 9.03 8.64 676.60 682.64 662.59 34.0 34.9 34.6 19.90 19.56 19.15 433.53 426.30 420.84 33.4 33.7 33.4 12.98 12.65 12.60 628.26 626.08 641.44 37.0 37.2 38.0 16.98 16.83 16.88 399.18 391.24 380.44 32.8 33.1 32.6 12.17 11.82 11.67 556.76 530.82 516.19 36.2 35.2 36.3 15.38 15.08 14.22 Average hours and earnings estimates are based on data for full-time and part-time production workers (manufacturing) and nonsupervisory workers (nonmanufacturing). Averages are for gross earnings and hours paid, including overtime pay and hours. Benchmark: March 1997 Source: Alaska Department of Labor, Research and Analysis Section

Nonagricultural Wage and Salary Employment by Place of Work Fairbanks preliminary revised Changes from: North Star Borough 10/98 9/98 10/97 9/98 10/97 Total Nonag. Wage & Salary Goods-producing Service-producing Manufacturing Transportation/Comm/Utilities Trucking & Warehousing Air Transportation Communications Wholesale Retail Gen. Merchandise & Apparel Food Stores Eating & Drinking Places Finance/Insurance/Real Estate Services & Misc. Hotels & Lodging Places Health Services Federal State Local Southeast Region Total Nonag. Wage & Salary Goods-producing Service-producing Manufacturing Durable Goods Lumber & Wood Products Nondurable Goods Seafood Processing Transportation/Comm/Utilities Wholesale Retail Food Stores Finance/Insurance/Real Estate Services & Misc. Health Services Federal State Local Northern Region Total Nonag. Wage & Salary Goods-producing Service-producing Oil & Gas Extraction Federal State Local 33,650 34,250 33,000-600 650 4,000 4,350 3,850-350 150 29,650 29,900 29,150-250 500 1,300 1,400 1,300-100 0 2,100 2,350 2,000-250 100 600 600 550 0 50 3,100 3,350 3,000-250 100 550 600 600-50 -50 700 750 700-50 0 500 500 400 0 100 6,900 6,950 6,850-50 50 850 850 800 0 50 6,050 6,100 6,050-50 0 1,250 1,200 1,350 50-100 750 750 800 0-50 2,050 2,100 1,950-50 100 1,100 1,100 1,050 0 50 8,050 8,400 7,950-350 100 750 1,000 700-250 50 1,950 1,900 1,950 50 0 10,500 10,100 10,300 400 200 3,200 3,400 3,200-200 0 4,400 3,950 4,300 450 100 2,900 2,750 2,800 150 100 35,450 39,650 35,700-4,200-250 5,350 6,500 5,650-1,150-300 30,100 33,150 30,050-3,050 50 400 400 350 0 50 1,700 1,750 1,800-50 -100 3,250 4,350 3,500-1,100-250 1,600 1,650 1,800-50 -200 1,400 1,450 1,600-50 -200 1,650 2,700 1,700-1,050-50 1,300 2,350 1,250-1,050 50 2,900 3,700 2,950-800 -50 6,200 7,300 6,300-1,100-100 600 650 600-50 0 5,600 6,650 5,700-1,050-100 1,300 1,400 1,350-100 -50 1,550 1,700 1,550-150 0 7,000 7,950 6,850-950 150 1,650 1,650 1,650 0 0 12,450 12,500 12,400-50 50 1,800 1,950 1,900-150 -100 5,300 5,300 5,200 0 100 5,350 5,250 5,300 100 50 15,950 16,050 15,750-100 200 5,500 5,650 5,350-150 150 10,450 10,400 10,400 50 50 5,050 5,050 5,000 0 50 4,650 4,600 4,550 50 100 4,650 4,600 4,850 50-200 150 150 200 0-50 300 350 300-50 0 4,200 4,100 4,350 100-150 preliminary revised Changes from: Interior Region 10/98 9/98 10/97 9/98 10/97 Total Nonag. Wage & Salary Goods-producing Service-producing Manufacturing Transportation/Comm/Utilities Finance/Insurance/Real Estate Services & Misc. Hotels & Lodging Places Federal State Local Anchorage/Mat-Su Region Total Nonag. Wage & Salary Goods-producing Service-producing Manufacturing Transportation/Comm/Utilities Finance/Insurance/Real Estate Services & Misc. Federal State Local Southwest Region Total Nonag. Wage & Salary Goods-producing Service-producing Seafood Processing Federal State Local Gulf Coast Region Total Nonag. Wage & Salary Goods-producing Service-producing Oil & Gas Extraction Manufacturing Seafood Processing Transportation/Comm/Utilities Wholesale Retail Eating & Drinking Places Finance/Insurance/Real Estate Services & Misc. Health Services Federal State Local 39,150 40,800 38,400-1,650 750 4,400 4,650 4,400-250 0 34,750 36,150 34,000-1,400 750 1,600 1,600 1,600 0 0 2,200 2,400 2,200-200 0 600 650 600-50 0 3,700 4,050 3,550-350 150 7,800 8,450 7,700-650 100 1,150 1,200 1,150-50 0 9,150 9,950 8,950-800 200 1,100 1,750 1,000-650 100 12,950 12,500 12,650 450 300 3,800 4,050 3,750-250 50 4,650 4,200 4,550 450 100 4,500 4,250 4,350 250 150 141,450 142,450 136,950-1,000 4,500 13,700 14,400 12,850-700 850 127,750 128,050 124,100-300 3,650 2,700 2,700 2,550 0 150 8,750 9,450 8,100-700 650 2,250 2,250 2,200 0 50 14,000 14,000 13,300 0 700 34,150 34,700 33,350-550 800 7,800 7,800 7,700 0 100 39,900 40,400 38,300-500 1,600 31,900 31,150 31,450 750 450 10,000 10,100 10,050-100 -50 9,400 9,050 9,200 350 200 12,500 12,000 12,200 500 300 16,800 17,600 16,400-800 400 3,800 4,500 3,750-700 50 13,000 13,100 12,650-100 350 3,550 4,200 3,500-650 50 5,900 5,600 5,800 300 100 400 400 400 0 0 500 500 500 0 0 5,000 4,700 4,900 300 100 26,350 29,250 26,150-2,900 200 6,300 7,550 6,300-1,250 0 20,050 21,700 19,850-1,650 200 1,350 1,400 1,200-50 150 1,350 1,400 1,200-50 150 1,450 1,550 1,450-100 0 3,500 4,600 3,650-1,100-150 2,550 3,600 2,400-1,050 150 2,250 2,500 2,250-250 0 4,950 5,600 4,850-650 100 550 750 550-200 0 4,400 4,850 4,300-450 100 1,350 1,700 1,350-350 0 700 700 700 0 0 5,350 6,000 5,250-650 100 1,150 1,150 1,150 0 0 6,800 6,900 6,800-100 0 700 800 700-100 0 1,600 1,700 1,650-100 -50 4,500 4,400 4,450 100 50

Unemployment Rates by Region and Census Area Not Seasonally Adjusted United States Alaska Statewide Anch/Mat-Su Region Municipality of Anchorage Mat-Su Borough Gulf Coast Region Kenai Peninsula Borough Kodiak Island Borough Valdez-Cordova Interior Region Denali Borough Fairbanks North Star Borough Southeast Fairbanks Yukon-Koyukuk Northern Region Nome North Slope Borough Northwest Arctic Borough Southeast Region Haines Borough Juneau Borough Ketchikan Gateway Borough Prince of Wales-Outer Ketchikan Sitka Borough Skagway-Hoonah-Angoon Wrangell-Petersburg Yakutat Borough Southwest Region Aleutians East Borough Aleutians West Bethel Bristol Bay Borough Dillingham Lake & Peninsula Borough Wade Hampton Seasonally Adjusted United States Alaska Statewide Percent Unemployed preliminary revised 10/98 9/98 10/97 4.2 4.4 4.4 5.8 4.8 7.1 4.6 4.1 6.1 4.2 3.8 5.5 6.7 5.5 8.6 9.3 6.6 11.5 10.7 7.8 12.9 5.6 4.0 7.5 8.6 5.4 11.5 6.3 4.9 7.1 10.4 2.3 12.5 5.7 4.6 6.5 10.1 7.2 9.2 10.6 10.0 13.1 8.3 8.3 8.8 8.5 8.6 8.5 6.2 6.3 6.2 11.2 11.0 13.2 6.4 4.6 7.3 9.1 5.6 9.7 5.9 4.5 6.7 7.2 4.4 8.3 8.5 7.0 8.7 4.5 4.1 5.4 4.8 3.7 6.9 7.3 4.8 8.5 7.5 6.7 6.6 7.3 7.0 7.7 2.7 1.7 2.6 4.1 4.6 6.7 8.6 8.3 8.8 8.1 4.4 9.6 7.5 5.9 7.6 4.6 3.3 6.4 11.0 12.7 9.7 4.6 4.6 4.8 6.1 5.9 7.6 (continued from page 15) 1997 Benchmark Comparisons between different time periods are not as meaningful as other time series produced by Research and Analysis. The official definition of unemployment currently in place excludes anyone who has not made an active attempt to find work in the four-week period up to and including the week that includes the 12th of the reference month. Due to the scarcity of employment opportunities in rural Alaska, many individuals do not meet the official definition of unemployed because they have not conducted an active job search. They are considered not in the labor force. Source: Alaska Department of Labor, Research and Analysis Section

The Alaska Department of Labor's Employer site on the Internet can be reached at http://www.labor.state.ak.us/employer/ employer.htm One of the websites linked to this page is the Unemployment Insurance site at http://www.labor.state.ak.us/ esd_unemployment_insurance/ui.htm The site lists questions frequently asked about unemployment insurance, with the answers just a click away. Questions and answers cover the purpose of the unemployment insurance system, eligibility, benefits, applying, how benefits are paid and for how long, and where to get help finding work. The site also gives access to the phone numbers for the UI Call Centers. Information on appeals regarding UI is also available here. Unemployment Insurance claimants will want a copy of the UI Claimant Handbook, available through this netsite.