Isles’ personal income grows, but at slower clip

The pace of personal income growth in Hawaii slowed in the first quarter from the preceding three-month period, while accelerating for the nation as a whole, a federal agency reported Wednesday.

Personal income, which includes salaries and wages, investment income and federal government payments, rose in Hawaii by 0.9 percent in the first quarter, down from a 1.2 percent growth rate in the fourth quarter of 2011, according to a report from the U.S. Bureau of Economic Analysis.

Nationally, personal income growth doubled to 0.8 percent in the first quarter from 0.4 percent in the fourth quarter of 2011.

Personal income paid to Hawaii residents totaled $60.68 billion at a seasonally adjusted annual rate in the January-through-March quarter, up from $60.12 billion in the previous quarter.

The figures are not adjusted for inflation, which erodes the value of personal income. The state Department of Business, Economic Development and Tourism is forecasting personal income in Hawaii to grow by 4.8 percent this year but by only 1.7 percent after inflation is taken into account.

Dividends, interest and rent income led the way with a 1.9 percent increase in the first quarter. Government transfer receipts, which includes Social Security and food stamps, grew 0.9 percent.

Salaries and earnings rose by 0.6 percent.

The accommodation and food service industry made the largest contribution to the first quarter increase in salaries, followed by the construction and transportation sectors.

In a separate report released Wednesday, Honolulu continued to lose ground in a ranking of metropolitan areas with the lowest unemployment rates.

Honolulu’s jobless rate rose to 5.6 percent in May from 5.3 percent in April, according to the U.S. Bureau of Labor Statistics. Honolulu dropped into a tie for the 47th lowest jobless rate in May from 46th lowest in April on a list of the nation’s largest 372 metropolitan areas.

Metropolitan unemployment rates are not adjusted for seasonal changes, such as an influx of working age students into the labor force when school recesses for summer break.