Alaska is the largest, northernmost, and snowiest state in the US. At the same time, it is one of the five least populous states with the lowest GDP at current prices. It stands at just $64,257 million. By comparison, it is $3,558,512 million for California and $1,024,019 million for Illinois.
Thus, Alaska is considered one of the weakest economies in the country. In 2022, its contribution to the nation's total wealth remains less than 0.5%. With that said, Alaska's GDP per capita is surprisingly high: $87,782. While in prosperous Texas, it is only $79,736.
Fishing and extraction of natural resources in the form of oil and gas all contribute to the economy and help strengthen it. In the last two years, there has been more than a 10 percent growth in GDP at current prices. Also, tourism has been booming here considerably.
Nevertheless, business owners have many stumbling blocks to the growth of their companies. These include the difficulty in finding senior staff, the high cost of maintaining the firms, and more.
Let's take a closer look at the statistics for this region!
Table of Content
Most often, workers are employed by businesses in these industries:
Industry | Small Business Employment |
---|---|
Health Care and Social Assistance | 28,051 |
Accommodation and Food Services | 21,022 |
Retail Trade | 14,552 |
Construction | 12,787 |
The least number of employees are hired by companies in these industries:
Industry | Small Business Employment |
---|---|
Utilities | 1,754 |
Mining, Quarrying, and Oil and Gas Extraction | 1,704 |
Management of Companies and Enterprises | 1,546 |
Agriculture, Forestry, and Fishing and Hunting | 634 |
Below, you will find the list of the state's most widely represented industries:
Industry | Number of Firms |
---|---|
Agriculture, Forestry, and Fishing and Hunting | 8,892 |
Professional, Scientific, and Technical Services | 8,452 |
Construction | 6,958 |
Retail Trade | 6,317 |
Real Estate and Rental and Leasing | 5,934 |
The table shows the least overcrowded fields in Alaska:
Industry | Number of Firms |
---|---|
Manufacturing | 1,578 |
Wholesale Trade | 1,001 |
Information | 694 |
Mining, Quarrying, and Oil and Gas Extraction | 404 |
Despite the fact of weak economy in the state, we can see great results in decreasing unemployment rates and increasing wages in Alaska. The authorities strive to help entrepreneurs strengthen the state's indicators: incentives, subsidies, and a convenient tax system.
Nevertheless, it is worth assessing all the challenges of doing business in Alaska (difficulties in recruiting staff and expensive company maintenance) in order not to stumble.
This information will help you decide whether or not to open a business in Alaska. Let this article guide you in making the right choice!