Nearly 500 jobs could be cut as the dust settles on the 2016 state operating budget, but the local economy may not immediately feel the impact of those losses.
More than half of those positions will come from vacant spots.
Deputy Commissioner of the Alaska Department of Administration Leslie Ridle says that could “soften” the situation here in Juneau.
“The first round of cuts, people cut empty positions but they cut real live bodies, too,” she says. “So in the next round, because the empty positions, most of them have already been cut, it’ll be even more actual people that get cut in a second round of budget reductions.”
That’s expected next year. In 2014, government employment fell in Alaska by 760 jobs, but Juneau remained relatively flat.
Alaska State Department of Labor Economist Conor Bell says the city’s slow population growth could be good for people looking for jobs.
“There’s more working age people leaving than moving to Juneau and so even if we’re not seeing strong employment growth. It makes it a little better than it seems for job seekers,” he says.
Statewide, the private sector grew by about 1,200 jobs last year. Industries like hospitality, mining and construction are expected to continue to do well in the capital city.
However, new construction may cool towards the end of the year as funding for future projects dry up.
