Chilkat Valley News - Serving Haines and Klukwan, Alaska since 1966

The Haines unemployment rate remained one of the highest in the state in June, according to statistics released by the Alaska Department of Labor and Workforce Development.

The unemployment rate in Haines dropped to 20% in June, down 2.6% from May, a difference of six fewer unemployment claims. Although, state economist Karinne Wiebold said a difference this small at the borough level is somewhat unreliable.

The Haines unemployment rate remains significantly elevated compared to last year. In June 2019, it was 5.8%.

The Haines rate in June is also well above the statewide average, 12.3%, and nationwide average, 11.2%. Wiebold said this has a lot to do with the seasonal nature of the Haines economy.

“Southeast is being hit disproportionately hard because of the emphasis on seafood processing and tourism jobs,” Wiebold said.

The seasonal nature of employment means the unemployment rate is unlikely to improve for some time.

“Unfortunately, I think (unemployment) is going to stay high for us in Southeast for a while, especially with our cruise ship dependence,” Wiebold said. She said the Southeast unemployment numbers will likely remain high until next summer, and even then, job availability will depend on how well the cruise ship industry has recovered.

Wiebold said job loss numbers in Southeast are likely worse than the unemployment rate suggests. In a typical year, many seasonal workers come to Southeast to work in the tourism industry. But this year, because jobs aren’t available, many seasonal workers have likely remained in their home states.

June is the second-to-last month unemployed workers are eligible to receive the $600 federal boost to weekly unemployment checks. Unless the U.S. Congress comes to an agreement about continued unemployment funding, at the end of July, those claiming unemployment in Alaska will be reduced to the state’s weekly payments, which range from $56 to $370, depending on past earnings.

Continued federal funding for unemployment insurance is currently under debate in the U.S. House and Senate. House Democrats have proposed keeping the $600 weekly boost in place.

On Monday, U.S. Senate Republicans proposed cutting the federal boost to $200 until states are able to implement a new system that pays workers 70% of the wages they earned while employed. The proposal is designed to avoid situations where workers are paid more to remain unemployed than to return to work. Some have criticized the proposal for the burden it will place on state unemployment offices, which will be responsible for calculating the wage percentage.