Hawaii’s seasonally adjusted unemployment rate rose for the first time in 18 months in January, but the state’s chief economist said the increase actually could be a sign of growth as more people looked for work and pushed up the labor force to a record high.
The state’s jobless rate ticked up one-tenth of a point to 4.1 percent in January, according to data released Monday by the state Department of Labor and Industrial Relations. The last time the state jobless rate rose was in August 2013 when it increased one-tenth of a point to 4.8 percent.
However, the uptick in January was tempered by a strong labor force — which includes those who are employed and others who are unemployed but actively seeking work — rising to 673,550 in January from 670,800 in December.
There also were 5,300 more nonfarm payroll jobs created in January from the previous month.
"The increase in the unemployment rate may not be a bad thing because more people are coming back to the labor force either as a new resident or coming back from being a discouraged worker and not looking for jobs," said chief economist Eugene Tian of the state Department of Business, Economic Development & Tourism.
Tian also said that the 5,300 increase in payroll jobs includes people who might hold multiple jobs.
Hawaii’s unemployment rate, which at the end of 2014 was 4 percent and tied for the seventh lowest in the nation, hit an all-time low of 2.3 percent in October, November and December 2006. The last time Hawaii’s jobless rate was below 4 percent was in May 2008, when it hit 3.8 percent.
The state’s recent peak for unemployment was 7.1 percent in July and August 2009 following the recession.
Hawaii’s unemployment rate is derived largely from a monthly telephone survey of households, while a separate survey of businesses determines the number of nonfarm jobs.
The state’s largest increase in nonfarm jobs in January over the previous month was in trade, transportation and utilities with a gain of 1,900. The bulk of the rise in the three sectors was in retail trade because there was a smaller than typical drop-off of holiday season workers.
Leisure and hospitality, with a concentration in food services and drinking establishments, was next with a gain of 1,200.
Construction industry work increased by 1,000 jobs largely due to building construction. Professional and business services, also up 1,000 jobs, had a significantly smaller seasonal release of workers in temporary help services and professional employer organizations.
The 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 the summer vacation seasons.
For the counties, the unemployment rate statewide rose across all islands in January.
The rate increased in Honolulu County to 4.0 percent from 3.5 percent, rose in Hawaii County to 5.2 percent from 4.7 percent, increased in Kauai County to 4.8 percent from 4.3 percent and rose in Maui County to 4.4 percent from 3.8 percent.
Within Maui County, Maui island’s jobless rate rose to 4.3 percent from 3.6 percent, and Lanai increased to 3.4 percent from 2.3 percent. Molokai’s jobless rate decreased to 8.3 percent from 10.5 percent.
