A salary study of Alaska’s state workforce was released Wednesday, revealing that a majority of state employees are earning wages that are competitive within the state’s labor market and similar jurisdictions in the Lower 48.
The study, conducted by consulting firm Segal and approved for funding in 2023, has been in development for over a year. The contractor went out for more data and incorporated recently bargained and statutory pay increases.
A draft was completed last summer and has undergone several months of refinement before being posted publicly.
The analysis comes amid hounding from public employee unions, which have been sure the findings will help them as they gear up for salary negotiations.
They may be disappointed. According to the final report, 72% of Alaska’s state employees, in benchmark jobs covered by the report, earn base salaries that meet or exceed comparable wages in the broader labor economy. When measured against the 65th percentile of market wages, 57% of employees were found to be at or above that level.
The study focuses on base pay and does not include differentials, bonuses, or supplemental compensation — providing a clear view of how the state pay stacks up on core salary alone.
Certain sectors stood out as particularly competitive. Employees in public safety roles, including police, fire, and corrections, are at or above market rates, as are legal and judicial workers. This aligns with Gov. Mike Dunleavy’s ongoing emphasis on public safety as a top priority for his administration.
While the results may temper some union arguments for sweeping wage increases, union leaders are still expected to use the data as a starting point to address specific pay gaps and cost-of-living concerns across different classifications.
One recommendation that Segal made was for the state to reduce the number of job classifications, which are now over 1,000. Streamlining the system would allow the State to more quickly adjust to changes in the labor market.
