Hawaii's jobless rate continues to increase

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Hawai'i's unemployment rate continued its steady climb in February, hitting its highest level in almost four years.

The seasonally adjusted unemployment rate rose to 3.2 percent in February, up from 3.1 percent in January, the state Department of Labor and Industrial Relations reported yesterday. The February rate was up from 2.4 percent last February and equaled a previous high of 3.2 percent reached in May 2004.

Nonetheless, Hawai'i's rate was among the lowest in the country and was well below the national average of 4.8 percent in February. The national rate was down from 4.9 percent in January.

Hawai'i's rising unemployment rate comes as other indicators point to a slowing economy in Hawai'i and across the nation. The slowdown in Hawai'i, however, is not expected to turn into a recession, which is being forecast for parts of the country.

"Historically, Hawai'i has been able to weather the economic downturns experienced in the Mainland," said Darwin L.D. Ching, director of labor and industrial relations. "As reflected in Hawai'i's low unemployment rates versus the national rates over a considerable stretch of time, the local economy continues to exhibit resiliency, as our economy continues to grow at a moderated pace."

Five states had lower unemployment rates than Hawai'i in January, with South Dakota the lowest at 2.6 percent, followed by Wyoming at 2.7 percent.

Hawai'i's seasonably adjusted labor force in February was 650,300 and was composed of 629,400 employed and 20,900 unemployed. A year earlier, the labor force was 651,200, with 635,400 employed and 15,800 unemployed, the state said.

The largest number of job losses was in the government sector. The state government reported a loss of 500 jobs, predominantly in the Department of Education. Another 200 jobs were lost at the city level and 100 at the federal level, according to the report.

There was also a net loss of 700 jobs in the category of trade, transportation and utilities. The layoffs associated with the removal of an NCL America ship more than offset a gain in jobs from the opening of the Nordstrom store at Ala Moana Center.

The construction sector gained 300 jobs, reversing a loss of 100 jobs in the field in January. Over the past year, the sector has generated 1,800 new jobs, mainly in commercial, industrial and resort construction.

Hiring in the leisure and hospitality sector was unchanged. The government sector posted the largest number of jobs.

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