Department forecasts 'modest' growth in Alaska

AP News
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Posted: Jan 05, 2012 2:23 PM
Department forecasts 'modest' growth in Alaska

The state labor department is forecasting what it calls modest economic growth of 1.2 percent this year in Alaska.

That would translate to 3,900 jobs, and mark the third straight year of growth in the state. Preliminary estimates show employment grew by 1.6 percent last year, the most since 2005, when it grew by 1.8 percent.

The department expects oil revenues and federal funding to continue to be major contributors to the state's economy though it notes that both these could decline in the future.

It projects growth in industries including mining and health care.

Southeast Alaska, Anchorage and Fairbanks are all expected to add jobs this year. While the others saw growth, Fairbanks' employment was flat last year, which the department partly attributes to large military deployment.