With continuing oil-price impacts on Alaska jobs and a looming state budget impasse that could send thousands of public employees to the unemployment line, Gov. Bill Walker (I) on June 10 reinstated a 90% local-hire rule for state-funded construction projects. The rule, which would affect both blue- and white-collar jobs, is drawing a mixed reaction from local contractors.
According to Walker, a governor is allowed to restore the rule if Alaska joblessness remains significantly above the national average. State unemployment reached 6.8% in May, compared to a national average of 5.5%, says the U.S. Labor Dept. Suspended in 2013, the rule takes effect on July 1. "Relatively low oil prices mean depressed capital budgets, and depressed oil company investments may remain with us for some time," said Walker in a statement. "In these economic circumstances, Alaska hire is more important than ever." He said the rule "is good for workers, but it's also the right decision from the perspective of quality projects. Alaskans will do the job right because we're the ones who will drive on those roads and use that infrastructure."
