Oil and gas industry employment drops

State labor officials say Alaska’s seasonally adjusted unemployment rate stood at 6.8 percent in November, essentially unchanged from October’s revised 6.9 percent, while the comparable national rate was 4.6 percent.

November’s unadjusted unemployment rate was 6.6 percent, up two-tenths of a percentage point, which is a typical seasonal increase, said the Alaska Department of Labor and Workforce Development.

Kusilvak Census Area had the highest rate, 16.8 percent, followed by Yukon-Koyukuk Census Area at 16.3 percent. These areas’ rates both declined from October, as did rates in the Bethel and Nome census areas and Northwest Arctic Borough. The unemployment rate in the North Slope Borough was unchanged.

The lowest rate was in the Aleutians East Borough at 2.8 percent, followed by the Aleutians West Census Area at 4.0 percent. Urban areas’ rates were below the statewide average, which is typical in winter. Juneau was the lowest at 4.5 percent, following by 5.3 percent in Anchorage and 5.7 percent in Fairbanks.

Preliminary estimates showed statewide payroll employment down by 8,400 jobs, or 2.6 percent, compared to a year ago. The oil and gas industry lost the most at 2,900 jobs, followed by construction and professional and business services, which were also affected by the oil industry slowdown.

Job losses extended beyond natural resource development and included the trae, transportation and utilities sector, which lost 1,500 jobs. Health care was the only source of private sector growth, with 500 more jobs than last November.

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State government employment was down 1,300 jobs from a year ago, while the number of federal and local jobs rose.

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