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Editor's note: Every year, the Juneau Economic Development Council (JEDC) prepares an economic indicators report for Juneau and the entire Southeast Alaskan region. What follows is the executive summary of the report. If you're interested in reading more, visit http://jedc.org or stop by the JEDC office for a full copy of the report. This year's report was produced by JEDC Program Officer Meilani Schijvens.

If your impression was that 2009 was a rough year economically for Juneau, the numbers are in, and your instincts were correct. Juneau residents and businesses clearly experienced the negative effects of the national economic recession in 2009. However, these economic challenges were not unique to Juneau. Alaska's employment decreased for the first time in 22 years, and the effects of the recession hit much harder in the Lower 48. Despite economic challenges, there were also positive 2009 indicators, and indications that some things will improve in 2010.

Employment and Wages

Employment and payroll were both down in 2009 (mostly in the private sector)1

In 2009, annual average employment in Juneau shrank by 3.5 percent, with losses almost entirely confined to Juneau's private sector. Annual average employment in the private sector was down 6.1 percent, or 661 annual average jobs.2 Juneau's private sector also paid out $16.6 million less in wages. A summary of the most significant changes is below:

In positive news, the continuing loss of State jobs we have seen in past years did not materialize in 2009, with Juneau holding onto a similar number of State jobs in 2009 as in 2008. (In the previous two years, Juneau had lost 145 State jobs). Other key employment related findings for 2009 include:

• Juneau's average 2009 unemployment rate was 6.1 percent, significantly lower than the state and national averages for that same year of 8.0 percent and 9.3 percent, respectively.

• In 2008, 5,188 non-locals earned $104 million in Juneau, making up about a quarter of the total Juneau workforce and a third of the private sector workforce.

Demographics

The populations of both Juneau and Southeast were up in 2009 (albeit slightly)3

• In 2009 the population of Juneau increased by less than one percent (256 people) to 30,661.

• The population of the region also increased by less than one percent (175 people) to 69,338.

Juneau has more seniors and kids

Between 2006 and 2009, despite an overall population decline of one half of one percent, the number of seniors in Juneau between the ages of 60 and 75 grew by 24 percent (675 seniors). Juneau's shifting demographics mean that Juneau's senior population is becoming more significant by the year.

During the same period, there has also been significant growth among Juneau's youngest residents. Between 2006 and 2009 the population of children under 10 in Juneau increased by 10 percent (or by 400 children).

Juneau crime was down (but that doesn't mean that its low)4

Juneau residents are somewhat less likely to experience a violent crime than the average U.S. resident but more likely to be the victim of property crime. Juneau's property crime rate was 37.8 property crimes per 1,000 people in Juneau in 2008, versus the national rate of 32.1. Juneau residents often do not lock their houses and cars, directly contributing to the higher theft and larceny rates. In 2008, 974 cases of theft were reported in Juneau. Although this figure is high, it represents a 14 percent decrease in theft from 2007.5

Enrollment in grade school and University increased6

In the 2009-2010 school year, the number of K-12 students enrolled in the Juneau School District increased for the first time since 2001. On October 1, 2009, 4,953 students were enrolled in Juneau schools, a one half of one percent (23 student) increase from the previous year. While middle school and high school student populations were still down incrementally, elementary school enrollment was up by three percent, or 60 students, from the October 2008 count.

In the fall of 2009, 2,811 students attended the University of Alaska Southeast at its Juneau campus. This represents an increase of 6.8 percent from fall 2008.

Housing

Despite the national housing crisis everywhere else, Juneau housing prices are up7

The average price of a single-family residence in the first half of 2010 was $313,385-a four percent increase over the first half of 2009 and similar to 2006 prices. The number of home sales in the second quarter of 2010 were unusually high, due to the start of Kensington mining operations (and the 200 new jobs that came with it) and the end of the first time buyer tax federal tax credit.

The average monthly cost, including utilities, for a rental unit in Juneau was $1,131 in 2009, a less than one percent increase over 2008.8

The median monthly Juneau homeowner cost was $2,040 in 2008 (for homeowners with a mortgage). Comparatively, these costs are 17 percent higher than the Alaska median and 35 percent higher than the national median.9

New housing construction is down10

In 2009, 38 new housing units were permitted for construction in Juneau (down from 39 in 2008). New housing construction is down significantly from earlier years: In 1996, 307 housing units were permitted. The annual average number of housing units permitted in Juneau between 1996 and 2008 was 129.

Transportation (Ships, Planes, Buses)

In 2009, 49,000 fewer people arrived in Juneau via air, cruise ship, or ferry. This represents a four percent decrease in total passenger disembarkations over 2008. These declines mirror national and international declines in travel and spending due to the recession. In 2009, the following number of passengers arrived:

• 1.02 million cruise ship tourists - a one-percent decline in cruise passenger traffic over 2008 represents the first cruise traffic decrease since 1989.

• 73,189 ferry passengers - a one-year decrease of 12 percent from 2008. (Unexpected repair issues played an additional role in decreased AMHS passenger arrivals).

• 257,719 deplaning Alaska Airlines passengers - down nine percent from 2008 figures.

• 22,853 passengers from other airlines-down 5 percent from 2008.

On the other hand, residents and visitors took 1,229,061 trips on Capital City Transit buses in FY10, meaning ridership was up one half of one percent over FY2009.

Passenger numbers will improve moving forward

In the first half of 2010, Alaska Airlines passenger deplanements were up 3.1 percent (4,321 more passengers) compared to the first half of 2009. Statistics for May 2010 show an 8.5 percent increase in passenger deplanements compared to May 2009.

While Juneau will see even fewer cruise passengers in 2010 than in 2009, the number of cruise passengers visiting Juneau should be back over a million again by 2012. Juneau's current cruise lines have reduced ships and sailings to Juneau in 2010, decreasing capacity by 150,000 from 2009. However, Disney Cruise Line, Crystal Cruises, Oceania Cruises and Inner Sea Discoveries have each announced sailings for 2011 that could bring more than 65,000 "new" passengers to Juneau. Moreover, in June 2010 Governor Parnell signed legislation reducing the amount of the Juneau cruise ship head tax to entice cruise lines such as Princess and Holland America to bring ships and sailings back to 2008 levels.

Key Industry Statistics

Mining

By 2011, JEDC expects Juneau's two mines to have 550 employees and a combined payroll of $45 to $50 million annually.

The Kensington Mine - After two decades of efforts, the Coeur-owned Kensington Mine began producing gold in June of 2010. Coeur management anticipates that Kensington will produce 50,000 ounces of gold during the remainder of 2010 and will average approximately 125,000 ounces of gold annually over the mine's initial 12.5-year life. The Kensington will eventually require 200 employees to operate the mine.

Hecla Greens Creek Mine - In 2009, Greens Creek produced 7.5 million ounces of silver in 2009. The mine also produced 67,278 ounces of gold, 70,379 tons of zinc and 22,253 tons of lead.

Juneau's 2009 largest private sector employer was once again the Greens Creek Mine with 333 employees.

Fishing and Seafood

In 2009, according to Fish and Game, the ex-vessel value of the Southeast Alaska fisheries (money paid to fishermen) was $234 million, an 18 percent decline over 2008. Conversely, the pounds of seafood landed in Southeast Alaska in 2009-283 million-was up 22 percent over 2008. In 2009, a total of 190 million pounds of seafood was processed in Southeast Alaska by 597 processors.

According to the Alaska Commercial Fisheries Entry Commission (CFEC), 4,674 Southeast Alaska residents (2,129 commercial fishermen and 2,545 crew members) fished in 2009, including 697 Juneau residents. Regionally, this represents a less than one percent increase in the number of fishermen from 2009 numbers, and a three percent increase in fisheries participation among Juneau residents.

Please stop by JEDC, located at 612 W. Willoughby Ave, to pick up a copy of the full report, or visit jedc.org for an electronic copy. JEDC is extremely grateful to our corporate sponsors whose generous support enables us to create this annual publication. We also want to give special credit to JEDC staff member Meilani Schijvens for producing this year's report.