Hawaii’s unemployment rate remained at 3.1 percent in March even as more people in the state entered the workforce.
The labor force, which includes people who are employed and those who are unemployed but actively seeking work, jumped by 2,750 in March to a record 690,300 from the previous high of 687,550 in February, according to data released Friday by the state Department of Labor and Industrial Relations.
There were 668,800 people employed in March, a record, topping the previous high of 666,350 people reached in February. The unemployed, though, rose to 21,550 from 21,200 over the same period as more people began seeking jobs.
“The good news is that the number of jobs increased and that in spite of a growing labor force, the unemployment rate stayed the same,” said Jack Suyderhoud, a professor of business economics at the University of Hawaii Shidler College of Business. “It says that the economy continues to be relatively strong and there continues to be growth. One always has to remember, though, that the labor market is a trailing indicator of the economy, so it’s basically a reflection of the strength in the economy — but kind of looking back rather than looking forward.”
In another measure of the economy, total nonfarm jobs last month rose by 4,400 to 653,000 from 648,600 in February and jumped by 18,600, or 2.9 percent, over the past year.
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.
Until February the last time Hawaii’s seasonally adjusted jobless rate was this low was November 2007, when it also was at 3.1 percent. The unemployment rate a year ago was 3.9 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 from October through December 2006 and May through September 1989.
Hawaii’s 3.1 percent unemployment rate last month was tied for the fifth lowest in the nation with North Dakota and trailed only South Dakota (2.5 percent), New Hampshire (2.6 percent), Colorado (2.9 percent) and Nebraska (3.0 percent). Hawaii’s jobless rate also was the sixth lowest in the nation year to date.
The U.S. jobless rate, which was previously announced, was 5.0 percent in March.
The largest increases in nonfarm jobs last month came from the construction sector (up 1,300), professional and business services (up 1,300) and educational and health services (up 1,200).
“The March data on unemployment and job count indicate our economy continues to expand, led by construction, which saw job growth of 20.9 percent in March and 19.2 percent for the first three months of 2016,” said Eugene Tian, chief economist for the state Department of Business, Economic Development and Tourism.
Initial unemployment claims plunged during March by 231, or 17 percent, from the same time a year ago while weekly claims dropped by 2,035,
or 23.6 percent, over the same time frame. During the month, initial claims and weekly claims increased by 4.5 percent and 0.3 percent, respectively, from February.
The unemployment rate fell in Kauai County but rose 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.
Kauai County’s rate declined to 3.5 percent from 3.6 percent while Honolulu County’s rate rose to 3.0 percent from 2.9 percent. Hawaii County’s rate increased to 3.9 percent from 3.8 percent, and Maui County’s rate rose to 3.4 percent from
3.3 percent.
Within Maui County, Maui’s jobless rate rose to 3.3 percent from 3.1 percent, but Molokai’s rate dropped to 5.6 percent from 8.3 percent and Lanai’s rate declined to 5.3 percent from 5.8 percent.