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Hawaii’s unemployment rate is now at an all-time low and could be the best in the country.
The seasonally adjusted number plunged to 2.2 percent in October, according to data released Thursday by the state Department of Labor and Industrial Relations.
That easily surpassed the previous record low of 2.4 percent achieved for three months in 2006 and for five months in 1989. The October number was the lowest on record under current methodology dating back to 1976.
As of September, Hawaii’s unemployment rate was tied for the second lowest in the country with Colorado at 2.5 percent and just behind the leader, North Dakota, at 2.4 percent. Hawaii will find out today where it stands nationally after the U.S. Department of Labor releases data for all states.
But while the low jobless rate indicates a strong labor market, there are some negatives in the unemployment report as well. Declines in Hawaii’s labor force and in the number of people employed and unemployed indicate that Hawaii residents may be leaving the state because they couldn’t find a job and are seeking better opportunities on the mainland, according to Eugene Tian, chief economist for the state Department of Business, Economic Development and Tourism.
“The 2.2 percent record unemployment rate in October indicates the short supply of labor in our state,” Tian said.
Shrinking workforce
The labor force, which includes people who are employed, those who are unemployed but actively seeking work, and those who are self-employed, fell last month to 686,600 from 688,800 in September. The number of people employed fell to 671,450 from 671,750 the previous month while the 15,150 unemployed was the lowest since March 1991.
The leisure and hospitality sector, fueled by the state’s strong tourism industry, showed the biggest gain with an increase of 1,000 jobs while construction jobs rose by 800. Educational and health services had the biggest job drop-off at 600 with the trade, transportation and utilities category down 500 positions and the professional and business services sector also down 500 jobs.
“Some industries continue to perform well while others continue to lose jobs,” Tian said.
Tian noted that Island Air’s Nov. 10 shutdown, which resulted in the loss of 423 jobs, was not included in this report.
“It will have some impact on next month’s report if they couldn’t find a job,” he said. “But because the unemployment rate is so low, it will be easier for them to find a job at this time.”
Hawaiian Airlines has helped soften the impact by holding jobs fairs this week on the four major islands for displaced Island Air employees.
Tian said the state plans to release its next economic forecast on Wednesday and said that report will project stable growth with Hawaii’s gross domestic product — the broadest measure of economic output — holding at 1.5 percent.
The unemployment rate fell in all four of the main counties. State and national labor-force data are adjusted for seasonal factors, but the county jobs data are not seasonally adjusted and thus do not take into account variations such as the winter holiday and summer vacation seasons.
Honolulu County’s rate declined to 1.8 percent from 2.3 percent, Hawaii County’s rate decreased to 2.3 percent from 2.8 percent, Kauai County’s rate fell to 1.8 percent from 2.3 percent and Maui County’s rate dropped to 2 percent from 2.6 percent. Within Maui County, Maui island’s rate fell to 1.9 percent from 2.4 percent, Molokai’s rate declined to 5.1 percent from 6.7 percent and Lanai’s rate decreased to 2.4 percent from 4.3 percent.
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