Unemployed Alaskans Not Using State Unemployment Insurance

Courtesy of Ron Niebrugge

Despite having the highest unemployment rate of any state, Alaska is seeing fewer claims for unemployment insurance.

The State Labor Department reports that first-time claims are lower than the 10 year average, even though the unemployment rate rose to 6.8 percent in June. Just 2.76 percent of workers covered by the State Unemployment Insurance program are collecting benefits.

State of Alaska Economist Neil Fried suggested that because of the seasonal nature of Alaska’s economy, being first historically isn’t an odd thing, and he believes that a trend of outward worker migration has made it easier for remaining workers to get employed.

Neil Fried

State of Alaska Economist Neil Fried: That potential workforce, during the last four years or so has actually strunk, so there aren’t as many people out there competing for work.” 

With the seasonal nature of much of the state’s workforce and Alaska’s vast remoteness, UI benefits are supposed to bridge the economic gap for the individual worker, and also provide a stabilizing influence on local economies. That system isn’t working as well since many receiving unemployment benefits are not spending their checks in Alaska.

State of Alaska Economist Neil Fried: “The number of people that we claiming against earnings that they had earned in Alaska did grow quite a bit in 2016, which is telling us that there was a larger group of people that left the state who are looking for jobs somewhere else in the country, but who are receiving unemployment claims that are being paid against the earnings they made in Alaska.”

In order to qualify for unemployment benefits workers must have earned wages with a total gross income of $2,500 earned over two calendar quarters during the covered employment 18 month base period.

They must maintain their eligibility while receiving benefits by being able and available for full time work, actively seeking and reporting weekly work searches and registering for work as required.

The Alaska Department of Labor & Workforce Development encourages workers to apply for benefits immediately when they become unemployed or are working less than full time. Weekly benefits are not paid retroactively.

The State advises the fastest and easiest way to apply for UI benefits is online at my.alaska.gov. There enrollees can file a new claim, reopen a claim or find out about claim status. and file bi-weekly claims 24 hours and day, seven days a week.