The Economic Benefits of Alaska’s Construction Industry
T
he construction industry is a critical component of Alaska’s economy.
It is integral to all industrial, commercial, residential, and infrastructure development in Alaska. Its economic reach spans the entire state, from the smallest village to the largest city.
JOBS THROUGHOUT ALASKA
Alaska’s construction industry is an important source of jobs and wages. The industry employed 25,200 workers, including 17,103 wage and salary employees.
Every census area and borough in Alaska has construction industry employers. Of the $1.6 billion in wages paid by Alaska’s 2,663 construction industry employers, almost half are paid in Anchorage ($718 million). Matanuska-Susitna Borough was second ($284 million), followed closely by the Fairbanks North Star Borough ($282 million).
These wages do not include self-employment income. Over one-third of Alaska’s construction companies and nearly half of construction jobs are based in Anchorage; however, Anchorage-based workers often provide construction services throughout the state.
Important take-aways of the Alaska construction industry include:
- ABOVE AVERAGE WAGE RATE
Only a few Alaska industry sectors have higher average annual wages than construction (e.g., oil and gas, and mining). The average wage for a construction worker was $93,500, 37 percent higher than the overall statewide average wage ($68,100). - SEASONALITY
The industry is an important source of jobs year-round, never falling below 13,900 jobs at any point in the year. However, construction employment in Alaska tends to be seasonal, with summer employment about 40 percent higher than the winter low point. - INDUSTRY DIVERSITY
Specialty-trade contractors make up 43 percent of total construction jobs and 36 percent of total wages, followed by heavy construction jobs (32 percent) and wages (35 percent), and building construction jobs (25 percent) and wages (29 percent).
Construction Industry by the Numbers
25,200
Number of Alaska construction workers, including wage and salary and self-employed workers
1 in 20
Share of jobs in Alaska’s economy that were in the construction sector
$2.5
BILLION
Total labor income of construction workers, including self-employed workers
Percentage of construction wages paid to Alaska residents
$93,500
Average annual construction worker wage
+37%
Percentage of construction worker wage above the average wage for all Alaska workers
Percentage of construction jobs held by Alaska residents
2,663
Number of construction industry employers in Alaska
41,900
Total number of statewide construction-related jobs, including multiplier effects
$3.6
BILLION
Total statewide labor income impact, including multiplier effects
+10.8%
Predicted growth in construction trades between 2020 and 2030
$6.7
BILLION
Estimated 2025 construction spending, up from 2024 spending forecast
25,200
Number of Alaska construction workers, including wage and salary and self-employed workers
1 in 20
Share of jobs in Alaska’s economy that were in the construction sector
$2.5
BILLION
Total labor income of construction workers, including self-employed workers
Percentage of construction wages paid to Alaska residents
$93,500
Average annual construction worker wage
+37%
Percentage of construction worker wage above the average wage for all Alaska workers
Percentage of construction jobs held by Alaska residents
2,663
Number of construction industry employers in Alaska
41,900
Total number of statewide construction-related jobs, including multiplier effects
$3.6
BILLION
Total statewide labor income impact, including multiplier effects
+10.8%
Predicted growth in construction trades between 2020 and 2030
$6.7
BILLION
Estimated 2025 construction spending, up from 2024 spending forecast
Workforce Needs
The Alaska Department of Labor and Workforce Development projects average annual openings of 1,315 in construction occupations through 2032. Openings reflect opportunities for a new worker to enter a construction occupation, including openings due to:
- OCCUPATIONAL TRANSFERS
These openings are the result of worker turnover. As workers leave construction occupations for different jobs, they are expected to create about 702 openings each year. - LABOR FORCE EXITS
These openings are the result of workers leaving the workforce entirely due to retirement, moving out of Alaska, or other circumstances. Construction workers leaving Alaska’s labor force are expected to create 469 openings each year. - INDUSTRY GROWTH
These openings are the result of higher demand for workers in construction occupations. New growth opportunities are expected to create about 144 openings each year.
PUBLIC PROJECTS
- STATE APPROPRIATIONS
State capital budget appropriations for construction (including federal funds) increased in SFY2025. This increase was significantly impacted by a single, large federal broadband grant appropriated to the State of Alaska. In SFY2025, the state capital budget for construction was $3.19 billion, including $511 million in state funding support. - FEDERAL FUNDING
Passed in November 2021, the federal Infrastructure Investment and Jobs Act (IIJA) authorized billions in funding for infrastructure construction nationwide. As of November 2024, $570 billion in funding had been awarded, about 66 percent of the total funding authorized. Between FFY2022 and FFY2025, Alaska entities have been awarded $8.5 billion in IIJA funding. About 60 percent of funding has been awarded to the State of Alaska in formula funding and competitive grants.
Information prepared by McKinley Research Group for the Associated General Contractors of Alaska/Construction Industry Progress Fund. The full report and more resources are available to download at agcak.org/news-publications. Photo provided by Swalling General Contractors.