A drop in new and existing jobs is forecast in Southeast Alaska this year due to federal layoffs, funding cuts and steady population decline in the region, according to a recent report released by the Alaska Department of Labor and Workforce Development.
Economist Dan Robinson heads the state’s labor research department. He said the region is expected to lose about 100 jobs this year, but it’s not clear exactly how many of those are in the federal sector.
“We don’t yet have a really good handle on what our federal job numbers will be, but they’re not growing for the first time in a long time,” he said. “They’re almost certain to fall.”
Robinson said the Trump administration’s continuous push to shrink the federal workforce and reduce government spending will counter job growth in the Southeast region.
According to preliminary data, the department estimates Alaska lost about 300 federal jobs statewide in 2025, and more cuts are expected this year.
Robinson said those cuts, paired with Southeast’s steadily declining birth rates and outmigration, will likely put major constraints on the region’s economy. A previous report by the department found Southeast’s overall population is projected to drop by about 17% by 2050, or roughly 12,000 people.
“Fundamentally, what’s a challenge for Southeast region is our negative net migration, so more people wanting to leave the region than move here,” he said.
Cruise ship tourism and mining continue to be bright spots for Southeast jobs and its economy. Last year, Juneau welcomed just under 1.7 million cruise ship passengers, and new and proposed docks are anticipated to open up more job opportunities.
The state overall is expected to experience a 1% growth of an additional 3,000 jobs this year. Most of that is made up of jobs in oil and gas, health care, construction and transportation, according to the report.
