Today’s Workforce and Alaska’s Future Workforce

veryone keeps asking, “Where did the employees go? Why can’t we find people to fill our positions?” Today, I would like to offer hope for filling our needs as employers. The workforce suffered a sudden shift due to the COVID-19 pandemic. Since 2020, the workforce has started to improve, but it has not reached its full potential.

This change was coming even before COVID-19. The Baby Boomers were aging out; they have been the largest sector of the workforce across the United States, and they were responsible for various jobs. When COVID-19 hit, many Baby Boomers decided they did not need to return to work. According to Inc. magazine, in 2020 more than 4 million older workers left the workforce. They felt they had enough savings to stop working, and it was time to retire. This created a huge vacancy in the workforce because now all the positions had to be filled with a younger workforce with a smaller population. It had an adverse trickle effect on the skilled and unskilled labor positions.

In 2020, the workforce lost in total more than 5 million workers due to the pandemic. This meant that the skilled labor force took a huge hit. We also saw a decrease in the number of men available for skilled labor. Many more people are going to college to pursue a degree, yet the Bureau of Labor Statistics reports that 60 percent of all jobs created between 2020 and 2030 will not require a college degree. The skilled trades offer many good jobs and opportunities for the next generations, but we need to educate the upcoming workforce early so they know the opportunities that are available.

Of the workforce in skilled trades, 90 percent are men between the ages of 24 and 54 years old. The following trades in particular have a workforce primarily comprised of men:

• Plumbers: 98 percent
• Construction equipment operators: 97 percent
• Highway maintenance: 96 percent
• Welders: 94 percent
• Machinist: 95 percent
• Electrician: 97 percent

Women, who are more than capable of doing the work for many trades, are an as-of-yet untapped resource. During World War II, women were called to fill pilot and manufacturing positions because there were not enough men to fill the roles. Women are able to fill many roles in the skilled labor field, though it would require a change in culture to happen. That cultural shift starts with employers and educating our youth about opportunities.

COVID-19 brought changes for many in the workplace. Many employees worked different schedules and started working from home, realizing that a lot of work could be done from home. At the same time, many realized they missed being at work and interacting with people. Now, employers are offering more flexible schedules and hybrid work environments. Many employees are looking for a schedule with some remote work and some in-office work.

The younger generations are tech-savvy. They have also watched their parents and grandparents work hard to make a living, even at the expense of family relationships. Many do not want that life. They are driving a cultural shift in increased work/life balance. Flexible schedules and hybrid work environments may be one way to attract and keep employees.

Neilsberg Research reports the Alaska population was at an all-time high in 2016, at 742,575 people. This was followed by a dramatic decline from 2017 to 2019.

Wages were a factor in Alaska’s population loss. Alaska used to be the leader in wages, compared to the cost of living. Over the years, we have dropped to 8th in the United States. During COVID-19, wages increased in Alaska, and they have not dropped. Employers had to pay more—and still do—to get good employees.

The good news is that the population showed an increase in 2023 and 2024, and we are now almost back to the population of 2016. In the staffing industry, we have also noticed a change in the ability to find qualified candidates. It is starting to get easier to find the people needed to fill positions.

We must focus on the future and consider where we will find employees. It’s essential to start engaging with young people in high school and even before, going into schools and educating all students about opportunities available to them. Additionally, we must collaborate with local organizations that provide training and education for older and middle-aged individuals.

Staffing companies can be a solution to helping employers meet their staffing needs. Staffing companies do this daily—they are the professionals at it. Suppose we utilize all our resources and work with our community to continue to attract new people to Alaska. Alaska can be a great place to work, play, and live.