The number of unemployed in the state last month rose by 66 percent from a year earlier and the outlook for the rest of the year and 2009 isn't very bright.

There were 30,250 people without jobs in October, up from 18,200 in the same month last year and 30,050 in September, according to statistics released yesterday by the state Department of Labor and Industrial Relations. The last time the state reported more than 30,200 unemployed was in the months following the Sept. 11 terrorist attacks.

Although more people were out of work, the state's seasonally adjusted unemployment rate was 4.5 percent last month, unchanged from September, but 1.7 percentage points higher than October 2007. The state's seasonally adjusted labor force stood at 665,350 in October, down from September's 667,450.

On a national level, the unemployment rate last month reached a 14-year high of 6.5 percent, up from September's 6.1 percent and 4.7 percent a year ago.

As the economy continues to struggle, economic forecasters are calling for even tougher times ahead.

The number of people filing first-time claims for unemployment insurance in Hawai'i has gone up steadily in recent months. In the week ending Nov. 15, claims totaled 2,087, a 104 percent increase over the same week a year ago.

In a revised forecast by the University of Hawai'i Economic Research Organization, the number of jobs are expected to decline by 1.4 percent next year, compared with a previous forecast of a 0.8 percent decline. The report revised downward its 2009 job forecast for most industries, particularly in transportation and utilities, and the accommodations and food service sectors, which UHERO projects will contract by an additional 1.5 percentage points compared with a forecast made in September.

The deterioration of the labor market will lead to a greater unemployment rate, which the report said will peak at 6.2 percent in the second half of 2009. Unemployment is expected to remain above 5 percent through 2011, the report said.

"The severity and expected duration of U.S. and global recessions will also mean a slower pace of local job recovery," the report said. "We will not approach the job peak reached in the first quarter of this year until the final quarter of 2011."

Last month, nonagricultural jobs stood at 621,200, down 1,000 from September and 1,900 from a year earlier. The private sector saw job losses in nearly every industry, according to the labor department.

Despite the negative numbers, the state's labor chief remained optimistic that a push to increase construction work will lead to a stronger economy and better employment situation.

"We are working hard to accelerate $1 billion worth of capital improvement projects, which will positively impact the construction industry and the economy as a whole," said Darwin Ching, labor director.