A recent salary study of Alaska’s state workforce has found that the majority of state employees are earning wages that are competitive within the state’s labor market and similar jurisdictions in the Lower 48. Conducted by consulting firm Segal and approved for funding in 2023, the study has been in development for over a year and has incorporated recent pay increases. The final report revealed that 72% of state employees in benchmark jobs covered by the report earn base salaries that meet or exceed comparable wages in the broader labor economy. Additionally, 57% were found to be at or above the 65th percentile of market wages when measured.
Public employee unions, hoping for favorable findings to aid in upcoming salary negotiations, may be disappointed by the results of the study. Certain sectors, such as public safety roles and legal and judicial workers, were found to be particularly competitive in terms of pay. The study focuses solely on base pay and does not include differentials, bonuses, or other supplemental compensation.
Despite the overall positive findings, 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 job classifications. Segal also recommended that the state reduce the number of job classifications, which currently exceed 1,000, in order to streamline the system and allow for quicker adjustments to changes in the labor market. Governor Mike Dunleavy’s focus on public safety as a top priority for his administration aligns with the study’s findings that employees in those roles are already at or above market rates.
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Photo credit mustreadalaska.com
