(The Center Square) – The U.S. Commerce Department reported a 3.3% 4th quarter expansion of the U.S economy, for 2023. This is good news for key sectors in Anchorage which are poised to benefit from the economic growth of the Lower 48 states.
The 2024 Anchorage Economic Forecast Report indicates the strength of the national economy directly affects national consumer confidence which in turn is reflected in the demand for goods. The health of the Asia-North America route transiting goods through the Ted Stevens Anchorage International Airport, ANC, depends on this confidence.
Over the last two years, Anchorage has seen the largest jobs growth in the transportation and warehousing sector, and the leisure and hospitality sector, which depends on the willingness of Americans to spend on travel, and their level of confidence in the economy.
Both sectors are currently trending at a 5% jobs increase.
Employment in the transportation sector in Anchorage has seen a steady rise over the last three years with 11,407 jobs in 2021; 12,671 in 2022 and 13,100 in 2023. This is projected to continue this year with a forecasted 13,300 transportation job opportunities.
On the visitor side of transport, air passenger volumes show only slight increases and have not fully recovered from the impacts of the pandemic. In 2022, 5.3 million passengers traversed Anchorage, up from 4.5 million in the previous year, to 5.6 million in 2023 and a projected 5.7 million for 2024. Air fares decreased by 9.4% from 2022-2023.
Business travel is expected to rebound with Anchorage showing strong convention and meeting attendance in 2023.
In 2024, cruise lines plan to improve capacity to levels greater than pre-pandemic visitation tallies. In 2022 cross-gulf cruise ship passengers reached 299,000. This rose to 415,000 in 2023 and is forecasted at 463,000 passengers for 2024.
Leisure and hospitality will benefit from strong continued confidence by consumers to encourage spending and “the visitor industry will support industry demand,” the report states.
Employment in this sector has seen positive strides growing from 14,632 jobs in 2022 to 16,071 in 2023. It is forecasted to reach 17,300 in 2024.
“Over the coming year, we expect modest growth by most measures. Our outlook for the number of working-age people living in Anchorage is a notable exception. Anchorage has lost more than 17,000 working-age residents over the past decade,” the report noted.
