Alaska Hire Background and Status
According to Department of Labor and Workforce Development (DOLWD) Commissioner Heidi Drygas, “Governor Walker strongly supports Alaska Hire, and it is my top priority at the Department of Labor and Workforce Development. Creating more job opportunities for Alaskans requires coordination across a range of industries and use of many different public policy tools. Alaska Hire also demands consideration of labor market conditions, from the availability of affordable housing to the supply of skilled workers in particular industries.” (Alaska Economic Trends, July 2015).
According to the DOLWD Research and Analysis (R & A) section, the largest driver of non-resident employment in Alaska is seasonal work. In 2013, there were 419,465 total workers employed in Alaska. Of these, 86,290 (20.6 percent) were “non-resident workers” based upon the criteria for eligibility to receive an Alaska Permanent Fund Dividend, illustrating Alaska’s historical dependence upon out of state workers to fill job openings. Those workers primarily filled seafood processing and tourism positions that are very difficult to fill with residents during the busy summer. For example, in 2013, seafood processing employed 17,631 nonresident workers and 6,146 residents. These jobs pay well but are short term.
Non-resident worker percentages were also high in the trade, transportation, utilities, and leisure/hospitality industries. The non-resident workforce for these industries accounted for more than half, or 54 percent, of all non-resident workers in 2013. Other industries with high percentages of non-residents include oil and gas, construction, metal mining, and other visitor-related industries. These industries generally have one or more of the following characteristics: high seasonal variation, a need for workers with specialized skills, or work sites in remote locations.
R & A produces an annual report, required by AS 36.10.130, which details nonresident employment in the state. According to the most recent report (http://live.laborstats.alaska.gov/reshire/nonres.pdf): It also helps the state meet its constitutional obligation to use, develop, and conserve its natural resources “for the maximum benefit of its people.” Knowing the industries and occupations in which nonresidents are working can guide policy makers in promoting the hiring of Alaska residents, whether through creating or expanding certain types of training programs, collaborating with companies to help them identify qualified local workers, or requiring that publicly funded projects hire Alaskans to the extent the law allows.
Two of the main findings in this most recent report:
According to the DOLWD Research and Analysis (R & A) section, the largest driver of non-resident employment in Alaska is seasonal work. In 2013, there were 419,465 total workers employed in Alaska. Of these, 86,290 (20.6 percent) were “non-resident workers” based upon the criteria for eligibility to receive an Alaska Permanent Fund Dividend, illustrating Alaska’s historical dependence upon out of state workers to fill job openings. Those workers primarily filled seafood processing and tourism positions that are very difficult to fill with residents during the busy summer. For example, in 2013, seafood processing employed 17,631 nonresident workers and 6,146 residents. These jobs pay well but are short term.
Non-resident worker percentages were also high in the trade, transportation, utilities, and leisure/hospitality industries. The non-resident workforce for these industries accounted for more than half, or 54 percent, of all non-resident workers in 2013. Other industries with high percentages of non-residents include oil and gas, construction, metal mining, and other visitor-related industries. These industries generally have one or more of the following characteristics: high seasonal variation, a need for workers with specialized skills, or work sites in remote locations.
R & A produces an annual report, required by AS 36.10.130, which details nonresident employment in the state. According to the most recent report (http://live.laborstats.alaska.gov/reshire/nonres.pdf): It also helps the state meet its constitutional obligation to use, develop, and conserve its natural resources “for the maximum benefit of its people.” Knowing the industries and occupations in which nonresidents are working can guide policy makers in promoting the hiring of Alaska residents, whether through creating or expanding certain types of training programs, collaborating with companies to help them identify qualified local workers, or requiring that publicly funded projects hire Alaskans to the extent the law allows.
Two of the main findings in this most recent report:
- A large percentage of Alaska’s nonresident workforce is employed in the state’s most seasonal industries, with seafood processing at the top of that list.
- High-paying, year-round jobs with high percentages of nonresidents are most heavily concentrated in the oil and gas industry, where remote work sites play a major factor. It is easier for North Slope oil workers, who generally work a schedule such as two weeks on and two weeks off, to live elsewhere than it is for those with a typical Monday through Friday schedule and a need for a reasonable daily commute.
Alaska Hire Efforts
- Employment Preference Determination (Alaska Hire) July 1, 2015
- Alaska Workforce Investment Board Resolution to Increase Alaska Hire
- DOLWD and DOC are exploring expansion of seafood work release programs, to improve Alaska Hire in the industry that has the highest rates of non-resident hire
- DOLWD and US DOL are investigating whether any Alaska employers are violating H2B rules and excluding Alaska workers. This could have potentially significant impact on improving resident hire rates in the seafood, hospitality, and jewelry retail industries. Investigations are in response to apparent attempts to avoid Alaska Hire by certain employers.
- DOLWD is using WIOA statewide activity funds to support Alaska Hire rates in 1) wildland fire fighting, in partnership with DOC and DNR; and 2) aviation, in partnership with the Alaska Air Carriers Association (AACA). AACA is working to create Registered Apprenticeship programs for Commercial Pilot, Airframe and Powerplant Mechanic, and Aircraft Dispatcher, which will help grow an Alaska resident workforce for those occupations.