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The Honolulu Advertiser
Posted on: Thursday, March 29, 2001



State adjusted unemployment rate rises


By John Duchemin
Advertiser Staff Writer

Hawai'i unemployment was lower in February 2001 than in February 2000, a sign the state's economy was still improving in the early part of this year.

But when adjusted for seasonal variations, the latest state data show an increase in joblessness after an extended low period, thanks in part to a fall-off in construction jobs.

Also, joblessness rose on the Big Island and Kaua'i — a trend that has now continued for three months on both islands.

Statewide seasonally adjusted unemployment rose in February to 4.4 percent, up from 4.1 percent in January, according to federal data released yesterday by the Hawai'i Department of Labor and Industrial Relations.

That's still below the national average of 4.6 percent, and is down from February 2000's adjusted Hawai'i rate of 4.7 percent. But the rate dropped last spring to 4.1 percent and stayed at or below 4.2 percent for eight straight months.

The government adjusts the rate to account for seasonal variations, like holiday hiring, crop harvest seasons and school-year job cycles. This allows for month-to-month tracking of unemployment trends.

The unadjusted Hawai'i rate was 4.3 percent in February 2001, down from 4.6 percent in February 2000.

The unemployment rate measures the percentage of residents out of work and looking for jobs. The Hawai'i rate dropped below the national average in November for the first time in five years.

Job growth recently has been driven by strong increases in the service and construction sectors. But construction has reversed that trend. The sector shed 700 jobs from January to February, and growth has slackened since July, the department reported.

Unemployment dropped on O'ahu and Maui, but rose on Moloka'i, Kaua'i and the Big Island, the state reported.

The last two islands had enjoyed an extended run of falling unemployment before the increases this winter.

The unadjusted unemployment rate by island: O'ahu, 3.7 percent; the Big Island, 6.5 percent; Kaua'i, 7.2 percent; Maui, 3.9 percent; Moloka'i, 15.4 percent; Lana'i, 3.5 percent.