Alaska is losing federal jobs faster than almost any state

Alaska shed 4.5% of its federal jobs in 2025, the third-steepest drop of any state, and the cuts sped up as the year closed. Because federal civilian jobs make up nearly 5% of Alaska's employment, and the military footprint is far larger, those losses pull down the statewide totals.

One economist says the annual number undersells it. Brock Wilson of UAA's Institute of Social and Economic Research told a Commonwealth North forum in June that measured over two years, from April 2024 to April 2026, the federal civilian workforce fell 15.8% in Alaska, worse than the 14.8% national decline. "We are seeing a larger decline than most other places," he said.

The losses have piled up all year in the state's monthly reports. June alone brought 1,300 federal and 600 state cuts against 1,000 private-sector gains, a net loss of 900 jobs.

Behind the numbers are people who describe the cuts as chaotic. Dismissed workers lost not just jobs but housing tied to their federal employment and research projects mid-stream, often unclear on why or how they were let go. The Foraker Group, which advises Alaska nonprofits, warns the damage runs past payrolls into grant funding and community services, and hits hardest where the federal government is a top employer.