Dec. 8 – Alaska’s average wage rose to $68,123 last year in an extra good year for wage increases, according to Alaska economists.
The 5% increase, compared to $64,751 in 2022, was “fairly large” historically, said Karinne Wiebold, a state economist who helped write about the topic in the state’s newest journal Alaska Economic Trends.
The increase exceeded inflation, in contrast to the average wage increase of 4.2% last year, she said in an interview.
“What also makes it remarkable is that the increases were across the board,” she said.
“Generally you see wages going up here or there depending on what’s happening (in the economy). And by 2023, this was the case almost everywhere,” she said.
Employers paid more to attract workers last year in response to widespread labor shortages, she said.
An aging workforce and years of net migration have limited the labor force, with more people leaving Alaska than coming here in 11 years, economists say.
[Earlier coverage: Alaska’s working-age population continues its long decline, a headwind for the economy]
In addition, workers also sought higher wages last year in response to inflation, contributing to “wage pressure,” Wiebold said.
Wiebold said the effect of worker demand on wages was especially evident in construction, where average wages rose the most.
Construction wages rose to $93,472, up 10% from $84,870 in 2022.
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Construction is the state’s fastest-growing industry, said Dan Robinson, the agency’s research chief, at a recent business conference in Anchorage.
Major oilfield projects and federal infrastructure spending helped boost demand for industry workers, he said.
Construction job growth has helped fuel job growth in Alaska. Job growth in the state is happening faster than the rest of the U.S., reversing a trend from previous years, Robinson said.
Wages in the construction sector lagged behind only a few industries last year.
Oil and gas workers had the highest wages on average, at $181,143, up 4% from 2022.
Federal workers were also among the top earners, with an average wage of $94,783, an increase of 6%.
The report also linked educational attainment to wages, showing that big payouts are possible in Alaska in occupations without degrees. It also showed that top incomes rise with more education.
In a category for jobs that did not require a bachelor’s degree, gas plant operators, air traffic controllers, detectives and detectives earned just over $120,000, the report said.
