Hawaii’s unemployment rate continues to approach historic lows.
The state’s seasonally adjusted number fell to its lowest level in more than eight years as it dipped by one-tenth of a point in February to 3.1 percent from the previous month.
The ruling affects all restaurants that are covered by the federal Wage and Hour Law, “so virtually all restaurants,” labor and employment lawyer Christopher Cole said. There are certain minimum revenue requirements that would make it possible that some small restaurants might fall outside the law’s coverage, he said.
Hawaii’s jobless rate hasn’t been this low since November 2007, according to data released Thursday by the state Department of Labor and Industrial Relations. The unemployment rate a year ago was 4 percent.
The state’s lowest unemployment rate dating back to January 1976 — the oldest available data on the U.S. Labor Department website — was 2.4 percent achieved each month from October through December of 2006 and May through September of 1989.
Total nonfarm jobs in February rose by 4,700 to 649,000 from 644,300 in January and jumped by 15,600, or 2.5 percent, over the past year.
The U.S. jobless rate, which was previously announced, was 4.9 percent in February.
“It’s basically the same story as last month,” said Jack Suyderhoud, an economic adviser to First Hawaiian Bank and professor of business economics at the University of Hawaii Shidler College of Business. “There’s continued improvement in the economy. January visitor numbers were really good, so it looks like the visitor sector is remaining robust.”
Suyderhoud said there’s no telling how long the state’s economic expansion can continue.
“That’s the $64,000 question,” he said. “As long as the tourism counts look pretty good, which is largely a function of the national economy, and as long as construction stays robust, there’s going to be this momentum that’s going to carry us in 2016.”
Suyderhoud added that low oil prices and low interest rates also will supply momentum.
The Hawaii labor force, which includes people who are employed and those unemployed but actively seeking work, jumped by 3,200 in February to a record 687,550 from the previous high of 684,350 in January.
There were 666,400 people employed in February, a record, topping the previous high of 662,700 people reached in January. Those unemployed decreased to 21,150 from 21,600 over the same period. A year earlier 26,700 were unemployed.
The largest increase in nonfarm jobs in February came from the trade, transportation and utilities segment as well as the construction sector. Both segments showed job increases of 800.
Most of the expansion in trade, transportation and utilities was in retail trade. Construction jobs, meanwhile, have been picking up steam with all the activity in Kakaako and totaled 39,300 jobs in February compared with 38,500 in January and 33,000 in February 2015.
Government employment collectively at the federal, state and local levels rose by 2,100, to 126,200, mostly the result of seasonal shifts in employment at the Department of Education and the University of Hawaii system.
Initial unemployment claims plunged during February by 329, or 23.4 percent, from the same time a year ago while weekly claims dropped by 2,502, or 27.6 percent, over the same time frame. During the month, initial claims and weekly claims decreased by 20.4 percent and 6.7 percent, respectively, from January.
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.
The unemployment rate fell in Honolulu County and remained the same in the other three main counties in the state. 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 2.8 percent from 3.0 percent, Hawaii County’s rate remained at 3.8 percent, Kauai County’s rate stayed at 3.6 percent and Maui County’s rate held at 3.4 percent.
Within Maui County, Maui island’s jobless rate fell to 3.2 percent from 3.3 percent, but Molokai’s rate jumped to 8.4 percent from 6.2 percent and Lanai’s rate more than doubled to 5.8 percent from 2.8 percent.
