Oil Dependence and Economic Activity
Setting the stage
Let's quickly look at where this oil decline has left the state
What about Alaska's important economic base?
Why have some states recovered?
Aggregate relationship between oil prices and employment
Where does this leave us?
General takeaways
Steps forward
• Government employment is an important part of the
Alaska economy. As of June 2018, federal/State/local
employment combined to be 80,300 as of June 2018.
⚫ This most recession which started in October 2015 has
cost the state between 12,500 and 13,000 jobs.
⚫ Capital spending is a very important driver of construction
activity but has been bare bones for multiple years.
• The state has also used a significant portion of its savings
to fill the gap created by the loss of oil revenues.
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Mouhcine Guettabi, PhD
Oil dependence and economic activityView entire presentation