Hawaii’s seasonally adjusted unemployment rate dipped by one-tenth of a point to an eight-year low of 3.2 percent in January after the number was revised upward for December.
The last time the rate was this low was in January 2008, according to data released Friday by the state Department of Labor and Industrial Relations. The unemployment rate a year ago was 4 percent.
Total nonfarm jobs in
January rose by 2,300 to 644,300 from 642,000 in
December and jumped by 11,900 over the past year.
“It’s continued affirmation of the fact that the economy in Hawaii has been on pretty solid footing and that it is expanding significantly by tourism, which continues to be robust,” said Jack Suyderhoud, an economic adviser to First Hawaiian Bank and professor of business economics at the University of Hawaii Shidler College of Business. “The January tourism numbers were up smartly (6.2 percent) so things are looking pretty good in the labor market.”
Suyderhoud said one of the worrisome things is that labor force statistics tend to lag behind the economy as there always is a lapse before those numbers begin to follow a particular trend.
“But there are no real signs that the economy is slowing down in Hawaii,” he said. “For instance, tax collections are doing pretty well. So there’s a lot of momentum in the economy. I think the continued addition to construction jobs is a good sign.”
The U.S. jobless rate, which was previously announced, was 4.9 percent in January and February. Hawaii is to announce its February unemployment rate on March 24.
The Hawaii labor force, which includes people who are employed and those unemployed but actively seeking work, jumped by 3,150 in January to a record 684,250 from the previous high of 681,100 in December.
There were 662,650 people employed in January, a record, topping the previous high of 658,750 people reached in December. Those unemployed decreased to 21,550 from 22,350 over the same period. A year earlier 27,000 were unemployed.
The largest increase in nonfarm jobs in January came from the leisure and hospitality industries, which rose by 1,300 jobs, to 116,900, from December. Most of that increase was in food services and drinking establishments. The trade, transportation and utilities segment increased by 1,200 jobs, to 119,200, with retail trade primarily accounting for the increase. Construction jobs, which have been picking up steam with all the activity in Kakaako, rose by 600 jobs to 38,500.
Government employment collectively at the federal, state and local levels dropped by 2,800, to 124,100, largely in the Department of Education and University of Hawaii system.
Initial unemployment claims plunged during January by 426, or 23.9 percent, from the same time a year ago while weekly claims dropped by 2,939, or 29.5 percent, over the same time frame. During the month, however, initial claims and weekly claims increased by 8 percent and 5 percent, respectively, from December.
Despite Hawaii’s jobless rate being at an eight-year low, the state’s underemployment rate — which measures labor underutilization — remains high as it ended 2015 at an average 6 percent. The underemployment rate includes people who are employed but not in the field they wanted, or are working part time but would rather work full time.
“The (labor underutilization number) is so stubbornly high,” Suyderhoud said. “That kind of indicates that the job market, while overall doing pretty well, is not having a deep expansion. There are a lot of people who remain underemployed relative to what their expectations and their desires are.”
The unemployment rate and nonfarm payroll numbers are derived from separate surveys. 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 payroll jobs. The nonfarm payroll jobs figure includes people who might hold multiple jobs but doesn’t include people who are self-employed.
Unemployment rates fell in all four main Hawaii counties. 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 summer vacation seasons.
Honolulu County’s rate declined to 3 percent from 3.9 percent, Hawaii County’s rate fell to 3.8 percent from
5 percent, Kauai County’s rate dropped to 3.6 percent from 4.6 percent and Maui County’s rate fell to 3.3 percent from 4.3 percent.
Within Maui County, Maui island’s jobless rate fell to 3.3 percent from 4.2 percent, Molokai’s rate declined to 6.3 percent from 8.5 percent and Lanai’s rate fell to
2.8 percent from 3.5 percent.
