A hiring boom in the construction industry is expected to help create 20,020 new jobs overall in the state and boost employment by 2.9 percent over a two-year period ending in the first quarter of 2017.

Construction is projected to lead the economic expansion with a 12.1 percent growth rate and 3,880 new jobs, according to the Employment Forecasts for the Short-Term Future — 2017 publication released today by the state Department of Labor & Industrial Relations. The forecasts date back to the first quarter of 2015.

“This is certainly good news and confirms that our economy remains strong,” Gov. David Ige said in a statement. “We remain focused on diversifying our economy beyond tourism and the military, which is why I am taking a comprehensive, long-term approach to develop an innovation economy that offers the best promise of high-quality, living wage jobs in Hawaii.”

Statewide employment will grow to 720,960 in the first quarter of 2017 from 700,940 in the first quarter of 2015, according to the Labor Department. It said on an annual basis that this 1.4 percent increase equals 10,180 new jobs resulting from growth. About 17,040 job openings are expected to arise due to replacement needs, bringing the total annual projected job openings to 27,220, the Labor Department said.