Nonresident Hire Rises Amid Workforce Shortage

Wage growth in the construction sector far outpaced the Lower 48. DOLWD shows a sharp increase over the last two years to $51.96 compared to $38.28 nationally.

Nonresident hire is not enough to counteract net out-migration. For a twelfth year in 2023, more people moved out of Alaska than moved in. Both numbers usually bounce around 40,000, but Robinson says a streak of negative migration running longer than three or four years is unprecedented.

A year ago, Robinson sounded a similar alarm at a convening of agencies and organizations focused on filling workforce needs. Since then, the Alaska Workforce Investment Board (AWIB) embarked on an assessment of how schools, government agencies, and employers might contribute to solutions.

That assessment yielded three main findings, according to AWIB Executive Director Dirk Craft. In a report last week to the Employment First conference hosted by DOLWD’s Division of Vocational Rehabilitation the Governor’s Council on Disabilities and Special Education, Craft described those three takeaways: “We need better K-12 career guidance; we need to reduce barriers to employment; and we need to be marketing our opportunities in the state and out of state.”

Craft noted that a pilot program for career guidance is underway, and results are not yet available. To open more pathways to employment, he says AWIB is seizing opportunities for growth in apprenticeships. “One of the things we’re looking at is a transition from a federal office of apprenticeship to a state apprenticeship agency. That would mean we obtain recognition from the US Department of Labor to start our own apprenticeship agency and register our own apprenticeships in Alaska,” Craft reported.

Along the college track, last week the Associated General Contractors of Alaska (AGC) donated $200,000 to the UA System’s Construction Management Workforce Initiative.

“Over the past twenty years, AGC has given more than half a million dollars in support of engineering and construction programs at UA to help address critical shortages of construction professionals,” said AGC Executive Director Alicia Amberg. “If we can train and retain a skilled workforce in Alaska, we will be able to meet our infrastructure needs into the future.”

The gift from AGC helped to exceed the $800,000 fundraising goal to establish a new endowment for the Construction Management Workforce Initiative. Funds have already been invested to enhance training and increase enrollment in construction programs through the Anchorage, Fairbanks, and Southeast campuses.

As she accepted AGC’s donation, UA President Pat Pitney said, “This gift will aid the university’s work to equip students with the relevant skills they need to enter the workforce. It will also provide ongoing education for those in the industry who want to advance in their careers.”

The Alaska Department of Commerce, Community, and Economic Development is addressing the third takeaway from AWIB’s needs assessment: industry-specific marketing plans. “They’re using some of the broadband funds to make that a possibility,” Craft reported, “and they’re also partnering with different industry organizations that are already working on their own efforts. What happens sometimes is you have a lot of people working in different silos on the exact same project, but aligning those resources can get more bang for your buck.”

Marketing is aimed both at in-state and, as it happens, potential nonresident hires. “A lot of times a nonresident with a certain skill set makes it possible for there to be more jobs for Alaska residents,” Robinson says. “So we want to be careful not to say, ‘High percent nonresident bad, low percentage good.’”

Meanwhile, AWIB plans to step up its assessments to gather feedback annually. Craft says, “It’s critical we make sure these strategies align with career and technical education as a means to create viable and accessible career pathways for all Alaskans.”