A study paints a more optimistic economic portrait for Anchorage over the next three years, projecting the city will exit its economic recession by 2019.
The outlook study released Wednesday by the Anchorage Economic Development Corporation expects the city to see positive indicators by next year, with job losses leveling out and economic confidence rising, KTUU-TV reported .
The city has lost about 6,000 jobs since 2015, according to the state Department of Labor and Workforce Development. There were hundreds of job losses for the petroleum and construction sectors while industries health care expanded. The city also experienced economic strain with the recent closure of some major retail chains.
While unemployment increased earlier this year, those losses are expected to smooth out by next year, effectively ending the period of economic recession, according to the Anchorage study. The study projects limited employment gains through 2020, but 800 new jobs are expected in 2021.
The economic development corporation expects disposable income for residents to increase over the next several years. That disposable income projection is tied to the Permanent Fund Dividend, the annual money paid to Alaska residents from investment earnings of mineral royalties.
“The anticipated 2018 Permanent Fund Dividend of $1,600 will pump more money into the economy toward the end of the year,” the study stated.
The city’s population decline is projected to stop this year and remain stagnant for the next two year. The city is projected see marginal population growth in 2021.
