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Federal Government A Major Role In Alaska's Economy

Jan. 31, 2002
No. 02-07

February 2002 Alaska Economic Trends

After decades of declining influence on Alaska's economy, with the closing of military bases and the downsizing of civilian employment, the federal government is once again a major force to be reckoned with, according to the Alaska Department of Labor and Workforce Development's February Alaska Economic Trends. 

According to the article, "The Federal Government in Alaska," by labor economists Neal Fried and Brigitta Windisch-Cole, the federal government spent nearly $6 billion in the state in 2000, a more than $1.7 billion increase above the 1995 level. Also interesting is that the sources of federal growth are not from "traditional" federal expenditures, which fell due to reductions in the civilian and federal workforce and uniformed military during the 1990s. The most dramatic growth is in federal grants to the state, which nearly doubled from $1.2 billion in 1995 to $2.2 billion in 2000. On a per capita basis, Alaska ranks number one among all states in federal grants.

February 2002's Trends also reports on Alaska's Employment Scene. Some notable findings: Alaska's average annual pay has reached $35,125; total payroll for the first half of 2001 was strong, up 5.6%; and the oil and construction industries continued to show strength in 2001.

Alaska Economic Trends is available online. Email to subscribe. 

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