Jobless rate at 2-year low

By John Duchemin
Advertiser Staff Writer

Unemployment dropped last month in Hawai'i to 3.8 percent, the lowest level since December 2000 and significantly below the national rate.

That was well below the level a year earlier, after 9/11, of 5.0 percent.

State unemployment has continued to drop since peaking in late 2001 and early 2002 as the economy struggled from the Sept. 11 terrorist attacks' severe impact on tourism. Hotels and other tourism employers laid off thousands, contributing to a brief spike in the unemployment rate.

As the economy started to rebound, joblessness soon dropped — at least superficially. The unemployment rate, which surveys the percentage of people who are looking for work, has fallen, but the job count has not grown.

Some Hawai'i economists say that is a sign people are avoiding the job market altogether by entering school or opting not to work.

The Hawai'i unemployment rate has been below the national rate since late 2000, when the U.S. economy began to cool off after the high-tech booms. Hawai'i continued to enjoy low unemployment and moderate job growth through mid-2001.

Unemployment was lower in every Hawai'i county in December. O'ahu's rate remained lowest, at 3.4 percent, down from 4.6 percent in December 2001.

Maui County's jobless rate was 4.1 percent, down from 5.8 percent, while the Big Island rate dropped to 5.0 percent from 6.0 percent the previous December.

Kaua'i's unemployment rate was 5.2 percent, down from 6.5 percent in December 2001.

Reach John Duchemin at jduchemin@honoluluadvertiser.com or at 525-8062.