Economy
Recession lingers, but some industries stabilize
Job losses deepened in May after easing in April, but the declines were mainly in retail and an effect of recent Sam’s Stores and Sears closings in Anchorage, which were national corporate decisions not linked to the Alaska recession, state economists say. A related industry, leisure and entertainment, was generally stable in May, with only a minor decline. Construction showed no decline for the first time since the recession started, and transportation and warehousing services showed modest increases. Oil and gas showed a 400-job decline, but this has eased since larger losses earlier this year and in 2017. Health care was up 1,000, continuing a long-term growth trend. Total Alaska wage and salary employment was 333,300 in May, down 0.6 percent, or 2,000 jobs, from May 2017. The data are estimates compiled by the state Department of Labor and Workforce Development. Confirmed numbers are released later.
State to contract for marketing, sales of state park merchandise
The state Division of Parks will be putting out a Request for Proposals later this year for a vendor to handle marketing and sales of state park-related merchandise. The division already has some products developed and handles sales internally, but needs an experienced third party for effort to reach its potential. Most U.S. state parks sell merchandise to cover costs. Alaska already funds about 50 percent of its costs, excluding federally-supported programs, with various users fees from cabins, park visits, etc. The goal is 60 percent, which the merchandising could accomplish. Alaska has the largest state park system in the nation.
FCC probes Alaska telecom’s charges to rural hospitals
The Federal Communications Commission is looking at rates charged by telecom operators to small Alaska hospitals before releasing funds for Alaska rural hospital internet service support. It isn’t known whether the review may extend to other rates charged by the telecoms to rural institutions such as schools and libraries. Meanwhile, the Commission has decided to allow the payments to be inflation-indexed (previously they were not) which would effectively make more money available for the internet subsidies. Internet is vital to the operation of health care providers these days, for patient medical information as well as telemedicine.
The FCC issues have resulted in underpayment of the Alaska telecom companies for the service, raising the possibility that some hospitals will be disconnected unless the money is paid. The Cordova hospital was close to being cut off. The FCC contends that service cannot legally be cut to hospitals. The telecom firms disagree with this, given that payments have not been made.