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Alaska's unemployment rate fell one-tenth of a percent in June, settling in at 6.8 percent, but state economists say it is too early to tell if the drop indicates a reversal of the rising unemployment trend impacting the state's economy since early 2007.

In a press release issued Friday, the Alaska Department of Labor and Workforce Development reported that the state's unemployment rate has been slowly but steadily increasing for more than a year, despite consistent job growth over that period.

A national slowdown in job growth is likely behind Alaska's rising unemployment rates in 2008, the state said.

Seasonally adjusted, June's 6.8 percent unemployment rate is down from 6.9 percent in May, but up from the 6.1 percent registered in June 2007.

Nationally, the May and June 2008 rate was 5.5 percent, up significantly from the 4.6 percent in June 2007.

According to state analysts, when the national economy is weaker relative to Alaska, job seekers in Alaska are less likely to look Outside for work. Conversely, Outsiders are more likely to head north to find jobs. Together, those factors produce higher unemployment rates in Alaska, the Labor Department said.

Growth in the oil and gas industry added 1,100 jobs since June 2007. Government employment also increased 1,100 - the sector includes public schools, the University of Alaska and federally recognized tribal entities.

But Construction and seafood processing saw some significant declines. Overall, however, the state saw a net increase of 1,500 payroll jobs between June 2007 and June 2008, the state reported.

"Although both the Alaska and U.S. unemployment rates have climbed since 2997, Alaska has not seen the corresponding loss in jobs that is generally more problematic for an economy," labor economist Dan Robinson said in the press release.

Reached Friday in Juneau, Robinson said the fact that Alaska's economy continues to create new jobs distinguishes it from the U.S. economy. Most experts now considered the nation as a whole to be in recession, he said.

"Anytime you have five straight months of unemployment increases -- and we're now in the sixth -- we've eventually been declared to be in a recession," he said.

Robinson also noted that while Alaska's government sector saw an increase, there actually wasn't much growth in that sector. Jobs were added in education at both the state and local levels, but much of the overall growth was attributable to temporary summertime employment, such as in parks and recreation, he said.

"I don't think we have a trend of state government growing," he said.

The data released Friday included labor force, unemployment and employment numbers for various locales around the state. Here's how the Kenai Peninsula Borough stacked up.

Area Labor Force Unemployment Rate Employment

Statewide 367,002 25,325 6.9 341,677

Anchorage 156,433 9,111 5.8 147,322

Fairbanks-North Star 46,827 2,885 6.2 43,942

Kenai Peninsula 28,077 2,085 7.4 25,992

Juneau 18,990 944 5.0 18,046

North Slope 4,937 258 4.6 4,679

Note: These figures are not seasonally adjusted, thus the statewide rate shown here is 6.9 percent, not the 6.8 percent reported in the accompanying story.

Hal Spence can be reached at hspence@ptialaska.net.