The September 11th attack
Hawai'i jobless claims double in the past week
| • | State Department of Labor Web site |
By Johnny Brannon
Advertiser Staff Writer
The number of Hawai'i workers seeking unemployment benefits each week has roughly doubled since the Sept. 11 terrorist attacks on the East Coast, and officials expect the trend to continue amid what has become a growing tourism slump.
Nearly 2,600 people flooded unemployment offices from Monday to Thursday, and many more continued to line up yesterday, though officials will not have a total count until Monday.
"It was busier today than yesterday, and we're anticipating that the numbers are going to continue to increase," said state Department of Labor and Industrial Relations spokesman Tom Jackson.
About 1,400 people had applied for benefits during each of the four weeks prior to the attacks, but some 1,200 filed claims this past Monday and Tuesday alone.
"It's a big-time change and it's killing me," said waiter Tony Leung, who found himself in the unemployment line for the first time after his work hours were slashed indefinitely. "I really, really hope it picks back up soon."
So far, the only large employers to publicly announce major layoffs in Hawai'i are the state's airlines. Aloha moved Wednesday to eliminate 250 jobs, and Hawaiian later in the week indicated it would cut an undisclosed number soon.
Continental Airlines told the state labor department this week that it expects to lay off about 45 to 50 Hawai'i mechanics early next month, Jackson said yesterday.
Continental announced last week that it would cut flights by 20 percent and lay off 12,000 employees to avoid a potential bankruptcy filing in the wake of the terrorist attacks, which scared away passengers and raised security costs.
Ron Wright, Continental's managing director in Hawai'i , said yesterday that he could not confirm the Hawai'i layoff numbers because the company's decisions about layoffs are still "in process." He said the airline may have more information early next week. But, he said, he expected the final number of layoffs in Hawai'i would be "not large," because Continental currently plans no cutbacks in its flights between Hawai'i and the Mainland.
The layoffs come as companies throughout the state's $11 billion tourism industry have been stung, and many scrambled this week to adjust staffing levels. Analysts believe occupancy rates at some hotels have dipped as low as 20 percent, and revenue has slowed to a trickle for businesses from restaurants to wedding companies.
"I've been in the industry for 14 years and this is the first time I've ever seen everything just go down at the same time," said Jack Hufstetler, operations manager for a major hotel entertainment producer. "I've rode the waves up and down, but never seen everyone hit so hard at the same time. It's just down to nothing."
Industry leaders hope the state can successfully market itself as a safe haven for travelers from the Mainland and abroad. Another goal is to persuade Hawai'i residents to vacation on the Neighbor Islands or in Waikiki rather than Las Vegas or other destinations.
"People who are canceling trips can still have a great vacation in Hawai'i," said Cynthia Rankin of Starwood Hotels, which operates more than 7,000 rooms across the state.
