Hawaii’s seasonally adjusted unemployment rate fell to 2.2% in November, down from 2.5% in September, according to data released Tuesday by the state Department of Business, Economic Development and Tourism. Due to a federal government shutdown, no data was published for October.
The rate remained the second lowest in the country in November, trailing only South Dakota at 2.1%, according to U.S. Bureau of Labor Statistics data released Wednesday.
The last time Hawaii recorded a lower rate was March 2020, when unemployment stood at 2.1% shortly before the COVID-19 pandemic began. Hawaii previously reached a 2.0% jobless rate in late 2017.
Eugene Tian, who retired as the state’s chief economist in May, said the November decrease was driven by employment gains outpacing labor force growth. From September to November, the labor force grew by about 1,000 people, or 0.15%, while the number of employed individuals increased by 2,800, or 0.42%.
The seasonally adjusted labor force stood at 688,000 in November, up from 687,000 in September. Employment rose to 672,650 from 669,850, while the number unemployed declined to 15,350 from 17,200, based on a household survey.
Nonfarm payroll jobs—measured by a separate employer survey—increased by 1,700 between September and November, led by gains in construction and professional and business services, each of which added about 1,000 jobs.
Construction jobs reached a high of 42,000 in November. However, Tian noted that completed construction values, as measured by the state’s contracting tax base, declined monthly from May to September. Private building permits also decreased each month from August to November.
Tian cautioned that unemployment figures may be revised upward in March, when the Bureau of Labor Statistics benchmarks its data based on more comprehensive surveys.
“Due to sampling errors for the monthly data, it is possible that the labor statistics may overstate the current conditions,” he said. “I expect the unemployment rates will be adjusted toward higher levels when the numbers are benchmarked in March.”
He added that if more people enter the workforce and employment levels remain steady, the unemployment rate could rise. Hawaii’s labor force participation rate held at 60.4% from August through November, below the national rate of 62.5% and Hawaii’s 2019 monthly average of 61.1%.
While the statewide seasonally adjusted rate declined, all four major counties saw increases in their unadjusted unemployment rates:
— Honolulu County rose to 2.3% from 2.2%
— Hawaii County increased to 2.7% from 2.5%
— Kauai County ticked up to 2.3% from 2.2%
— Maui County rose to 2.6% from 2.5%
Within Maui County, Molokai’s unemployment fell to 4.0% from 5.9%, and Lanai’s dropped to 1.1% from 2.2%. Maui Island’s rate rose to 2.6% from 2.3%
Nationally, the U.S. unemployment rate was 4.6% in November, up from 4.4% in September.
No unemployment data for October was available at the state or federal levels due to the government shutdown.
