Sitka has acquired nearly 200 jobs this year, wages are rising, but the population continues to decline. These figures were announced at the tail end of the Southeast Alaska Annual Economic Conference held last week in Sitka.
Meilani Schijvens owns Raincoast Data, a research and consulting company based in Juneau. On September 17, she shared data she collected for her annual economic report, “Economic Status of Sitka.”
Regarding the total number of jobs, Schijvens said the three biggest industries in the community are tourism, seafood and healthcare. Looking at the salary, the same three industries top the list in a different order.
“If you look at wages, the wage was $381 million. Healthcare is your number one wage provider, followed by seafood and visitors,” she said. “These three sectors really burn your economy.”
She said Sitka's healthcare industry has risen by 8% over the past three years, with healthcare wages rising more than double. That expansion will affect the growth of other industries as the Southeast Alaska Regional Health Consortium (SEARHC) builds a new $410 million hospital on Sitka's Japonski Island.
“Your healthcare sector is not only fueling the healthcare economy, but also promoting many other aspects of the Sitka economy, particularly the construction sector,” Schijvens said.
And while the seafood industry, one of Sitka's top three employers, remains, revenues have fallen this year. Schijvens said low fish prices are a driving factor for several species, which will affect the revenues of Sitka's fishing boats and processors.
“There are many opportunities for individual success stories, but as a sector as a whole, Sitka has declined by 7%, with 71 jobs dropping,” Schijvens said. “Revenue fell 29% as it fell by $26 million.”
Overall, however, Sitka's employment and income is increasing, similar to the optimism of the business community (link to the study). But like the rest of the southeast, Sitka's population continues to immerse. Schijvens pointed to data from the Alaska Department of Labor.
“Their prediction for Sitka is that over the next 25 years, Sitka will lose 24% of your population, and another 2,000. This is not going to happen.
“We can make sure this isn't a real thing that happens, but we only put a lot of effort into it from the many people sitting in this room,” she added.
Schijvens said the community needs to double down and focus on solving the local housing crisis to maintain working-age people in Sitka.
Check out the full presentation from Schijvens
