Anchorage businesses are optimistic about the future, but finding workers remains a top concern, according to new survey results from the Anchorage Economic Development Corp.
AEDC’s latest Annual Business Confidence Index Report is based on survey responses from 150 Anchorage-area businesses and organizations.
This year’s composite index decreased two points from last year to 58.2, but it’s still above the 10-year average. At the corporation’s annual economic development luncheon Wednesday, AEDC president and CEO Jenna Wright said it’s a good sign that businesses are excited about operating in Anchorage.
“This makes sense, because we’ve got a lot to look forward to,” Wright said. “Fantastic job growth in many of our sectors, private and public capital investments are being made across the city, and transformative public education models we employed in our high schools.”
But there are still concerns. According to the survey, business owners say the top barriers limiting business growth are the availability of labor, affordable housing, the condition of the state economy and the cost of labor. The report shows half of Alaska business owners expect the economy to improve in 2024. That’s more than the 10-year average of 40%.
Wright said Anchorage consumers are less optimistic which could be attributed to outmigration and expensive housing costs.
“So far this year, Anchorage consumers were in neutral territory when considering their local economy and personal financial situation, but are feeling markedly bleak about their expectations for the future,” she said.
Businesses ranked the impacts of homelessness as the top issue for the Anchorage economy, followed by affordable housing and attracting workforce from outside Alaska. The majority of responses favor a reduction to the Permanent Fund dividend and state spending.
Ava White reports on economics and hosts the statewide morning news at Alaska Public Media. Reach her at awhite@alaskapublic.org or 907-550-8445. Read more about Ava here.
