The state Department of Labor and Workforce Development just released some preliminary numbers in overall unemployment and economic growth for last year in Mat-Su. According to state labor economist Neil Fried, the numbers are not as strong as in recent years, but they are still the strongest in the state.

"Economic growth came in at a healthy 3.4 percent in the Mat-Su. That's nearly a point higher than Anchorage's growth rate," Fried said. "A big reason for that growth can be directly attributed to the retail industry and the real estate industry."

Wasilla, which seems to attract the lion's share of retail outlets, in 2001 saw Sears move into the vacant Wal-Mart on the Parks Highway and expand its entire product line. Two other large retailers, Office Max and Home Depot are also giving Wasilla a very close look. Wasilla's Wal-Mart still ranks as one of the chain's top national producers.

Fried says he expects more growth in the retail and services sectors. The one industry that he says may not grow at the same rate it has over the last five years is the area's tourism industry.

"The (Mount) McKinley Princess Lodge and the Talkeetna (Alaskan) Lodge are both linked to outside tourism," Fried said. "Right now those two resorts are seeing lower advance reservation numbers coming in. That could mean a potential downturn in what has become a very important part of the Mat-Su's overall economy, both in terms of revenue and employment."

Another indicator that the area seems to be weathering the state's economic downturn better than most Alaskan communities is its unemployment rate.

"The Mat-Su's unemployment rate did go up to 7.7 percent, but that growth was less than both Fairbanks and Anchorage. The leap in unemployment statewide can be directly attributable to the loss of jobs in the state's oil industry."

One of the main reasons the Mat-Su economy is showing consistent growth is the real estate industry, and in particular the new housing industry. The average new home in the Mat-Su costs about $145,000 including a half-acre to an acre of land.

The target market is Anchorage. More and more people who call Anchorage their workplace are opting to live in the Matanuska-Sustina area. The reasons for this migration are twofold: more home for the money and more land for the money.

As Anchorage continues to run out of land, the Mat-Su continues to develop more land. The traffic count on the Glenn Highway from the Mat-Su to Anchorage also continues to grow. The latest figures show that more than 25,000 Valley residents make the commute to Anchorage daily.

The Mat-Su Borough School District has had to keep up with the growth by building five new schools, most of them elementary and middle schools. Three of those schools are in the Palmer-Wasilla area. A new middle school and a high school in the Meadow Lakes area just west of Wasilla are scheduled for completion next year.

Another indicator of growth is the ongoing dilemma of planning and zoning, especially in the core area of Palmer and Wasilla. The Matanuska-Susitna Borough is currently trying to develop a zoning plan for properties along the Palmer-Wasilla Highway.

The highway continues to show signs of commercial development along its entire length. Just behind that development are scores of residential subdivisions. Borough planners say they are hoping that public input will help them make the decisions needed to prevent land-use conflicts in the future.

There is one more growth indicator that seems to show closer ties between Anchorage and the Mat-Su area. A proposed causeway from the Port of Anchorage to Port MacKenzie is back on the drawing board. The cost of a Knik Arm crossing would be astronomical, but there seems to be support for the concept in both Juneau and Washington, D.C.

Even without the bridge, planning is under way for a ferry link between the two ports. The idea of the Mat-Su area and Anchorage growing together is becoming more of a reality.