FAIRBANKS, Alaska (KTUU) – Peaking between 2022 and 2023, the job market in Fairbanks will see reduced growth in 2025 at just 1.3% according to the Alaska Department of Labor and Workforce Development.

The anticipated growth in employment for this year is slightly lower than in 2024.

The modest growth reflects a stable economy bolstered by federal infrastructure projects, growth in military investment, mining, and tourism as stated in the report from the DOWLD.

Federal infrastructure projects were a big contributing factor to the Fairbanks area economy in 2024 and several projects remain to be completed.

“There’s been some lack of bidding on some of the projects‚” said Dan Robinson, an economist with Alaska’s DOLWD.

That has extended the timeline of some of the projects according to Robinson.

“We could assume you know a fairly strong contribution from that funding for the next four or five years at least.”

The arrival of the F-35 Lightning squadron and now the addition of four KC-135 refueling planes has helped provide a boost in economic activity and the job market. According to the DOLWD, the four KC-135 planes are expected to bring in 200 more airmen and their families.

Mining also remains a strong sector for Fairbanks with the Manh Choh mine coming online in 2023. While the mine itself is located in Tetlin near Tok, the ore is brought back through Fairbanks to Fort Knox for processing — adding to the jobs market in the Fairbanks area.

Lastly, tourism in Fairbanks and nearby areas has increased since the COVID-19 pandemic. This area is expected “to remain flat” for 2025 as stated in the Fairbanks jobs forecast.

There could be further increases for this sector in the coming years. That’s because “the 2021 Pretty Rocks landslide closed the only road into [Denali National Park] through summer of 2026,” according to the report.

Some limitations to growth could be related to a labor shortage as there was a slight decrease in Alaska’s working-age population. As to whether or not the decrease is impacting the Fairbanks area — that has yet to be confirmed.

Another area that’s reducing growth is the consolidation of public schools in Fairbanks, spurred by a budget deficit for the Fairbanks North Star Borough School District. Robinson described the funding situation as “messy” and a “steady loss of funding to inflation” — causing instability and insecurity for the school district.

“It doesn’t allow you to hire, hire teachers with the promise that they’ll have a job beyond this year,” Robinson explained. A drop in enrollment has added to that insecurity as well.

That specifically pertains to the K-12 system — the University of Alaska Fairbanks has added 300 jobs since the 2020-2021 academic year and the state anticipates they’ll add another 100 jobs in 2025.

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