State posts first increase in jobless rate since January

Hawaii was one of only 10 states that experienced an increase in unemployment in October, but the jobless rate was still one of the lowest in the country, the state reported Friday.

The state’s seasonally adjusted unemployment rate edged up to 4.4 percent in October after holding steady at 4.3 percent in September and August, according to a report from the state Department of Labor and Industrial Relations. It was the first increase in Hawaii’s jobless rate since January when the rate rose to 5.2 percent from 5.1 percent in December.

Hawaii’s unemployment rate has been on a downward trend since hitting a high of 7.1 percent in the summer of 2009 during the last recession. Even at that level, however, Hawaii’s rate was significantly lower than the national average, which peaked at 10 percent during the economic downturn. The national unemployment rate was 7.3 percent in October.

Hawaii’s jobless rate in October was the fourth lowest in the country, trailing North Dakota at 2.7 percent, South Dakota at 3.7 percent and Nebraska at 3.9 percent.

The University of Hawaii Economic Research Organization is forecasting continued improvement in the state’s job market and a commensurate decline in the unemployment rate over the next few years. UHERO researchers expect the annual average unemployment rate to drop from 4.6 percent in 2013 to 4 percent in 2014 and 3.7 percent in 2015.

Hawaii’s labor force rose to 648,300 in October, an increase of 3,100 from September, according to the DLIR.

The state and national numbers are adjusted for seasonal factors, such as students returning to school after working summer jobs.

County jobs data are not seasonally adjusted. The report showed that the jobless rate increased to 6.4 percent from 6.1 percent in Hawaii County, to 5.6 percent from 5.2 percent in Kauai County, and to 5 percent from 4.8 percent in Maui County.

The jobless rate is derived largely from a monthly telephone survey of households. A separate survey of businesses showed the number of nonagricultural payroll jobs in Hawaii fell by 700 in October from September on a net basis. The biggest changes were in the construction industry, which lost 800 jobs, and the trade, transportation and utilities sector, which gained 1,000 jobs, according to the report.

Compared to October 2012, the number of overall jobs increased by 6,600, according to the report.

A broader measure of unemployment reported by the DLIR that includes discouraged workers and those working part time but who would like to be in full-time jobs is more than double the official rate. Called the U-6 rate, it was 11.3 percent in Hawaii for the four quarters ended Sept. 31. Nationally the U-6 rate was 14.1 percent during the same period.