Alaska’s Seafood Industry Crisis: Challenges, Labor Shortages, and the Path Forward

by Oleg Nikitenko November 16, 2024

Facts, Figures, and the Labor Shortage

As highlighted in our first article, "The Alaska Seafood Industry Crisis: Challenges, Costs & Solutions" , Alaska’s seafood industry is facing mounting challenges. Inflation, rising costs, and a shrinking labor pool have left the sector struggling to maintain profitability and productivity. Labor shortages are particularly dire, affecting operations across the board—from fish processing to essential technical roles.

Even the most optimistic efforts to recruit workers have fallen short. In 2022, the industry was 25–40% short of processing workers, severely limiting production capacity. The shortage is even worse for skilled technical roles, with departments like fish processing equipment maintenance, electrical systems, and refrigeration operating with only 10–15% of the workforce needed to maintain basic operations.

This shortage is further compounded by the inability to produce value-added seafood products—higher-margin goods requiring more labor-intensive processing. Instead, Alaska is forced to export raw materials in a primitive form for reprocessing in Asian markets. This dependence reduces profitability and prevents the state from tapping into the lucrative domestic North American market for finished seafood products.

The Shrinking Labor Pool: By the Numbers

Over the past two decades, Alaska’s working-age population has steadily declined, creating a critical labor shortage for industries that rely on manual and technical skills.

1. Declining Workforce

In 2013, Alaska’s working-age population peaked at 479,000.
By 2022, this number had dropped to 449,000, a loss of 30,000 workers in less than a decade.

2. Aging Population

In 2020, Alaska had more residents transitioning into retirement (65+) than entering adulthood (18–24).
By 2030, the 60+ population is expected to grow by 30%, while the working-age group will shrink by 5%.

3. Outmigration

Since 2013, Alaska has experienced a net migration loss every year, with younger demographics disproportionately leaving.

Challenges of Working in Alaska’s Seafood Industry

The nature of work in Alaska’s seafood sector makes it increasingly difficult to attract and retain employees.

1. Seasonal Instability

The seasonal nature of the seafood industry creates major hurdles for recruitment:

High Transportation and Living Costs: Many workers are reluctant to travel to Alaska for a few weeks of summer work due to the high cost of airfare and accommodations. Fewer seasonal workers are available during critical summer harvests, while the need for labor spikes again during busy winter and spring seasons when travel is even less feasible.
Overseas Workers Not an Option: Complicated, expensive, and time-consuming visa and work-permit processes make it impractical to fill gaps with overseas workers.

2. Physically Demanding Work

Processing fish is labor-intensive, requiring repetitive tasks, heavy lifting, and long hours.
Extended Shifts: During fishing seasons, shifts can extend to 12–14 hours due to labor shortages. While workers are most productive during the first six hours, fatigue leads to mistakes and inefficiencies, reducing the quality of value-added seafood products.

3. Harsh Working Conditions

Workers are exposed to cold temperatures, constant drafts, and the noise pollution of processing equipment.
For those working on fishing vessels, the shaking ground of the ocean adds to the physical toll.

4. Remote Locations

Processing facilities are often in remote areas with limited access to healthcare, childcare, and community amenities.
Isolation discourages workers from relocating or committing to seasonal work.

5. The Challenges of Automation

Automation may seem like a potential solution to labor shortages, but it brings its own challenges:

High Costs and Development: Replacing labor with machines requires significant investments in advanced technology, much of which is still in development. Fish processing machines must be able to handle irregular shapes, textures, and sizes, demanding NASA-level technology to achieve the necessary precision.
Skilled Workforce Required: Even with automation, the industry would need highly trained technicians and engineers to maintain and repair the equipment. These roles require specialized training and are already in short supply.
Rising Costs in the Short Term: Salaries for beginner processors are expected to increase each year due to high inflation and the labor shortage, while seafood product prices are likely to remain stagnant due to global competition.

The Impact of the Labor Shortage

The labor crisis is having severe consequences for Alaska’s seafood industry:

Reduced Productivity: A lack of workers means slower processing times and missed production targets, straining profitability.
Higher Training Costs: With fewer experienced workers, companies spend more time and money training new hires, many of whom leave after short stints.
Reliance on Overseas Processing: Alaska increasingly exports raw materials to Asian markets for reprocessing, missing out on the economic benefits of producing value-added seafood products domestically.

Aquaculture: A Potential Solution

Aquaculture, or fish farming, is one potential avenue for addressing Alaska’s labor shortage and production challenges. Globally, aquaculture has surpassed wild-catch fisheries in seafood production, providing stable, year-round employment and reducing reliance on seasonal labor.

While aquaculture in Alaska is currently limited due to cultural and regulatory barriers, it could play a significant role in stabilizing the state’s seafood workforce and diversifying its economy.

Why Consider Aquaculture?

Year-Round Employment: Aquaculture operations run continuously, offering stable jobs that attract a broader labor pool.
Domestic Production: By investing in aquaculture, Alaska could reduce its dependence on overseas reprocessing and capture more value within the North American seafood market.
Scalability: Aquaculture allows for controlled growth to meet rising global seafood demand.

We will explore aquaculture in more detail in our next article, examining its potential as a long-term solution to Alaska’s labor challenges and its role in the future of sustainable seafood production.

Conclusion

Alaska’s seafood industry is at a critical juncture. The combination of an aging workforce, shrinking labor pool, seasonal instability, and high costs has created a labor crisis that threatens the industry’s future. Without immediate action to attract workers and explore innovative solutions, the state risks losing its competitive edge in the global seafood market.

By addressing these labor challenges head-on, the industry can rebuild its workforce and secure long-term growth. To stay informed about these developments, subscribe to our blog and explore more insights on the Global Seafoods YouTube Channel .