Jobs
Unemployment in This State Is 75% Above National Average
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The jobless rate in America has dropped to a five-decade low of 3.5%. In some states, that figure is well below 3%. A notable exception to the trend is Alaska, the state with the highest unemployment rate, 6.1% in November.
The unemployment rates by state for November were just issued by the U.S. Bureau of Labor Statistics. The state with the second-highest unemployment rate was Mississippi at 5.6%. The lowest rate was 2.3% in Vermont, which is two-thirds of the national average.
Alaska has had one of the highest unemployment rates among all states for several reasons. The makeup of the industries that employ large numbers of people there is one reason. According to King Economics Group, “Alaska has a lot of jobs that only happen in the summer. This includes tourism, commercial fishing, firefighting, and others. These seasonal jobs create a great deal of fluctuation in Alaska’s monthly unemployment data.”
Due to these seasonal trends, some parts of Alaska have unusually low unemployment rates in the summer. Both the Aleutians East Borough and Aleutians West Census Areas have rates below 3% in the summer. In an area that has almost no tourism, the rate is much higher. The jobless level in the Kusilvak Census Area is regularly above 15%. The area is well north and west of Alaska’s most populated area. Its total population is just over 8,000, as a matter of fact.
Ironically, the median household income in Alaska is among the highest of all states. At $74,346, it ranks eighth. This is about $12,000 above the national average. At the top of the list of reasons is the Alaska Permanent Fund. The state controls the fund and pays out money based on oil industry production and revenue in the state. It has been in place since 1982. The figure fluctuates, but it is around $1,000 per person per year.
The oil industry shows that an industry can create income without creating jobs. Alaska is a prime example.
24/7 Wall St.
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