The number of jobs in Anchorage is expected to fully recover from the Covid-19 pandemic this year, but business leaders say the lack of housing and overall high prices continue to make it difficult to attract and retain workers.
Those are a few of the headlines from the annual Anchorage Economic Development Corporation forecast, released at a luncheon downtown Wednesday.
President and CEO Jenna Wright said Anchorage saw slight population growth in 2024, which was the first time the city’s population grew since 2016. She said 2024 was a “really good” year overall for the city’s economy.
“For the first time in almost a decade, we are so thrilled to report that Anchorage’s population expanded ever so slightly,” Wright said. “The city added 1000s of jobs, our incomes increased, and our population even edged higher for the first time in many, many years.”
The city’s population is forecast to stay steady, according to the report, but the working age population, which includes workers between 16 and 64, shrank for the 11th consecutive year.
Anchorage has lost 18,418 workers since 2014, according to the report.
The number of births is declining alongside the dwindling workforce. As Anchorage’s population continues to age, Wright said the city is competing at a national level to increase the labor pool.
“What we're seeing is that many Anchorage based companies are staffing up as best they can in state, but they're also working with lower 48 union halls to try to get the workers they need for the busy construction season,” she said.
Anchorage hasn’t built enough housing to meet demand, and Wright says it’s a barrier for employers to hire workers. The price of the average single-family home last year was $514,000 according to the report, 40% higher than in 2019.
Mayor Suzanne LaFrance said the city is working to build 10,000 homes in 10 years in an effort to curb outmigration and homelessness.
“Our strategy [of building] 10,000 homes in 10 years is a direct call to action, knowing we need about 1000 units of housing a year to ensure that Anchorage is a viable place to live for all who call it home,” LaFrance said.
Construction and healthcare are expected to lead job growth, according to the forecast.
