By AlaskaWatchman.com

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.

Click here to support the Alaska Watchman.

Alaska cuts 1,700 state and federal jobs, adds 800 private sector workers in past year

Joel Davidson
Joel is Editor-in-Chief of the Alaska Watchman. Joel is an award winning journalist and has been reporting for over 24 years, He is a proud father of 8 children, and lives in Palmer, Alaska.


7 Comments

  • Tina says:

    A Democrat Governor (if he is elected) will add those state jobs back into the workforce Despite telling Alaskans they can’t afford a full PFD.
    It’s why Wilson. Bronson, and Taylor need to take leadership to either two suspend so we have 1 or two work together to take votes from JKT while the other receives the first place votes.
    Voters not for the Marxist/communist form of governance taking over the Deocrat party. They need to rank the Governor Republican candidates in a uniform order. I suggest rank in their primary order for making it easier

  • John Hancock says:

    “Alaska cuts 1,700 state and federal jobs”
    Now, that IS good news.

  • Evan S Singh says:

    Which state and federal jobs? The USDA meat inspector? FAA air traffic controller? State troopers? USCG airborne paramedics? State parks maintenance? School security? Anchorage fired department fire fighters and EMTs? 800 private jobs. What kind? Burger flippers, shelf stockers, call center demons, custodians, lawyers, physicians?

    Joel is short on facts that could guide those of us who think critically employing evidence and reason. It does no one any good, Joel, to pander to the government-bad-private-sector-good conservatives.

  • Diana says:

    Yahoo! Cut jobs and abolished the outdated positions that don’t fit the work! That’s great! Time form reorganization that fits the work and technology!

  • Doug glenn says:

    Privatize DOT and save $450 million a year. The private sector builds the infrastructure they can maintain it.