City’s unemployment rate inched higher in September

A rise in Honolulu’s unemployment rate to 5.7 percent in September from 5.5 percent in August caused the city to fall further in a ranking of metropolitan areas with the nation’s lowest jobless rates, according to a report released Wednesday.

Honolulu had the 37th-lowest unemployment rate in September out of 372 metropolitan areas surveyed by the U.S. Bureau of Labor Statistics. That was down from 21st lowest in August and 15th lowest in July.

Despite the increase, Honolulu compared favorably with the nation as a whole, which had an average rate of 9.1 percent in September. Honolulu was one of 61 metropolitan areas where the unemployment rate rose in September from August. The rate fell in 280 metro areas and was unchanged in 31.

Metro rates are not adjusted for seasonal changes, such as students leaving the work force when they return to school in the fall.

Honolulu’s September rate compared with rates of 9.5 percent for Hawaii County, 8.7 percent for Kauai County and 7.9 percent for Maui County. The statewide unadjusted rate was 6.6 percent in September. When adjusted for seasonal factors the statewide rate was 6.4 percent.

Honolulu was in a group of 40 cities with rates below 6 percent in September. Bismarck, N.D., had the nation’s lowest rate at 2.5 percent in September. The job market in North Dakota has been helped by a boom in its oil drilling industry.

El Centro, Calif., reported the nation’s highest rate at 29.6 percent, followed by Yuma, Ariz., at 27 percent. The cities are in adjacent counties with heavy farm economies and large contingents of migrant labor. California accounted for eight of the nation’s 10 highest rates in September, the bureau said.

Nationwide, employers added a net 103,000 jobs in September as national unemployment held steady at 9.1 percent for the third straight month. The gains were only about enough to keep up with population growth. The economy needs to generate at least twice that total to reduce the unemployment rate.