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Alaska’s median household income in 2003 was $52,391; its per capita personal income (PCPI) in 2005 was $35,612, ranking Alaska 16th in the United States for PCPI. The average annual growth rate of PCPI between 1994 and 2004 was 3.1 percent, compared to the average annual growth rate for the nation at 4.1 percent. Alaska boasts a home ownership rate of 62.5 percent. Its unemployment rate is 6.8 percent. Alaska does not have a personal income tax, and currently there is no sales tax, although some jurisdictions impose local sales taxes. Alaska’s cost of living ranks higher than the national average.

Alaska’s economy relies heavily on the natural resources within its borders and along its shores. Mining of petroleum and natural gas continues to provide the most economic value to the state. Alaska also boasts the largest silver and zinc mines in the nation, and holds half of the coal of the country. The Last Frontier is a leader in commercial fishing, with its salmon, halibut, crab, and cod, among other fish. The processing of the fish, from freezing to canning, provides many manufacturing opportunities. Despite the lack of suitable farm land due to its extreme climate, Alaska does rely on farm products such as vegetables, dairy products, and livestock. Lumber and wood products remain important. Additionally, many government jobs drive the Alaskan economy, and its strategic location has historically led to many defense-related positions and facilities. Increasingly, tourism contributes greatly to the state, as people from around the world visit the spectacular natural wonders of Alaska in greater numbers and with improved access. With greater exposure and the addition of new research facilities, Alaska will no doubt draw increased interest in scientific research endeavors to the Last Frontier.

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