Isle jobs forecast to increase 4%

Jobs in construction, retail sales and tourism will be among the fastest growing areas of employment through next year as Hawaii’s economy hits its stride, according to a forecast released Wednesday by the state Department of Labor and Industrial Relations.

The overall labor market is expected to add 26,690 jobs between the third quarter of 2012 and the third quarter of 2014, a gain of 4 percent, the DLIR reported.

The new data reflect a continuation of a trend that began in 2011 when Hawaii’s job market began to grow after three straight years of declines brought on by a recession.

All 12 major industries are forecast to grow during the two-year period, according to the report.

"The building industry will spark the most rapid growth approaching 13 percent, while the government sector will not even reach 1 percent growth," the report’s authors wrote. "Construction should make a convincing comeback from the recession it has struggled to emerge from the last several years."

The growth rate forecast for construction translates into 3,750 more jobs. The highest demand within the industry is forecast in the specialty trades, including drywall installation, roofing and tile setting, according to the report.

Retailers are expected to add 2,900 jobs for a 4.3 percent increase.

The visitor industry, which went "gangbusters" in 2012, is expected to see some moderation in hiring. Still, the additional 4,610 jobs being forecast would represent growth of 4.3 percent over two years.

By contrast, the government — the state’s largest employer — is expected to add just 560 jobs over the two-year period for growth of 0.7 percent.

"Although both state and local governments will manage modest increases as tax revenues regain strength, the federal government is forced to shed jobs due to sequestration," according to the report.

Unlike the monthly labor market report released by DLIR, Wednesday’s biennial report includes self-employed and unpaid workers in family businesses. That group is forecast to grow by 2,030, led by a 1,910 increase in the self employed.

The job growth in Hawaii has corresponded with a decline in the unemployment rate. The statewide jobless rate fell to 4.6 percent in June, the lowest level in nearly five years.

In addition, the number of people filing first-time claims for unemployment benefits has been on a downward trend since the start of 2010 when it peaked at about 2,600 per week. Over the past month filings have averaged about 1,700 per week.