Alaska has seen a dramatic drop in federal and state jobs over the past year. According to the latest report from the state labor department, there were 1,300 fewer federal employees and 400 fewer state workers.

At the same time, Alaska added 800 private sector jobs, driven largely by new positions in mining, logging, oil and gas, along with trade, transportation, warehousing and utilities.

Overall, the state had 900 fewer jobs in August than in August 2025, with new private-sector jobs offset by the cut in federal and state employees.

Manufacturing – primarily seafood processing – was down 500 jobs over the year, with weak salmon runs contributing. Construction lost 400 jobs. Professional and business services and leisure and hospitality were each down by 200. Retail, information and financial activities were each down by 100.

Health care positions, however, jumped by 100, and “other services” increased by 300 jobs.

Local government jobs, such as city, borough and tribal employees, remained stable at 37,300.

Alaska’s seasonally adjusted unemployment rate was 4.3 percent, and the U.S. rate was 4.1 percent. Both were unchanged from the month before.

The federal employee data does not include uniformed military personnel.

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