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The Honolulu Advertiser
Posted on: Sunday, July 5, 2009

Average time finding job in Hawaii doubles


BY Greg Wiles
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser
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Hawai'i's economic malaise has not only raised unemployment to its highest level in more than three decades but also has nearly doubled the time it takes for workers who lose their jobs to find new ones.

As of May, out-of-work job seekers spent an average of 22.7 weeks finding new employment in Hawai'i. A year earlier, a Hawai'i job search took 11.4 weeks, according to federal Current Population Survey data.

"I'm just stunned by that figure," said Labor Economist Lawrence "Bill" Boyd, who serves on the faculty for the Center for Labor Education and Research at the University of Hawai'i-West O'ahu. "That's just a very bad thing."

Hawai'i's unemployment rate jumped to its highest level in more than 31 years in May, reaching 7.4 percent. But beneath the rising jobless rate are also trends in the increasing number of people unemployed, lengthening duration and the deepening crisis for those on unemployment rolls.

Moreover, when a broader measure of unemployment is used — one including people who are underemployed and those who've stopped looking for work are included — Hawai'i's unemployment rate jumps into the double digits.

Dave Tupou, 36, has first-hand experience with the months of disappointment faced by job seekers. In March, he was let go from a masonry job and hasn't been able to find steady work.

"It's been hard especially looking for a job that will pay for bills," said Tupou, who said he's been to interviews where 15 other people show up for the same position.

"What they ask is how much you're willing to work for."

Tupou and his family have cut back to meet their downsized budget, moving with their son and daughter from a three-bedroom house to a two-bedroom apartment on a busy Palolo street. His wife has taken a job for $10 an hour; they've sold a car and there's little in the way of going out to restaurants.

"Now if we get a little extra, we go out to McDonald's to sit down with the kids."

Tupou doesn't qualify for unemployment benefits, having worked as an independent contractor at his last job. He's among the ranks of thousands of Hawai'i's jobless, including those who've been self-employed, who aren't collecting unemployment checks.

RATE DOUBLES

In May, there were 46,763 people unemployed in the state based on seasonally unadjusted numbers. That was more than twice the 22,250 a year earlier.

Of those who were unemployed, roughly a third, or 13,788, had been out of work for more than six months. That was more than four times the number of people in the same predicament in May 2008.

Making matters worse, many unemployed workers have exhausted their unemployment benefits.

Less than half of the unemployed are filing for unemployment claims weekly, Boyd said. Currently, 26 weeks of state benefits and another 33 weeks of federal benefits are available.

"You think everybody that's laid off gets unemployment benefits," Boyd said. "Nationally, only a third of people without work are receiving unemployment benefits.

"The unemployment rate doesn't tell all of the story. It's much more negative because the longer duration of your unemployment, the longer the effects on lifetime earnings."

Long-term unemployment also has insidious effects.

Boyd studied the effects of sugar cane plantation shutdowns that occurred in Hawai'i in the early 1990s and found that people became easily discouraged in looking for work.

Studies show that people who are jobless for long periods can get depressed, have higher suicide rates, alcoholism and mental health problems.

People typically lose health insurance but can't qualify for Medicaid because they have too many assets, Boyd said. "It's a very corrosive thing," Boyd said.

COSTS INCREASING

Whether you are collecting the average $427.63 weekly unemployment check or not, costs are rising. On July 1, a host of government taxes and fees went into effect, including reimposition of excise taxes on gasoline, higher bus fares and property taxes.

"There's little work and even less money going around right now so it's tough," said Ray Mount, 36, an unemployed journeyman tile setter who lives with his girlfriend and their two daughters.

"You've got to watch every penny now."

Mount, a Kihei resident, hasn't had a steady job in two months, but has scraped by with infrequent small jobs and dipping into savings.

The family watches for ads in newspapers for sales, has cut back driving and finds things to do at home rather than going out for entertainment.

"If it gets much worse than this, I don't know what we'll do."

STATE AID

Some people are turning to other benefits offered by the state, including a successor program for Food Stamps, which now falls under the Supplemental Nutrition Assistance Program.

The number of people receiving SNAP benefits in May was 117,648, or more than a fifth more than a year earlier, according to the state Department of Human Services. The increase is attributed to a number of reasons, including better state outreach and people having a tougher time in the current economy.

There's also been a 9.5 percent rise in the number of households receiving temporary assistance over the past year, although not many of the recently unemployed are thought to be included because they probably have too many assets to qualify.

Some people like Hilo resident Tavina Owens, 23, are making a go of it by living with family while looking for work. Owens usually works summers in Alaska, but no job was available this year.

"I have been looking for a job for seven months," Owens said in an e-mail, bemoaning her inability to pay a tax bill and what that might do to her credit rating.

"I have posted at least 100 applications online so far and enrolled in about six online/resume deals."

Boyd noted while the Hawai'i unemployment rate in May of 7.4 percent compared with the national rate of 9.4 percent, a broader measure shows the state and national figures are closer.

That rate, known as U-6, includes the unemployed, people who are working part time but want full-time positions, as well as people who've stopped looking for jobs but would accept one if offered.

Hawai'i's U-6 rate in March was 14.8 percent, Boyd said. The national rate was 16.2 percent.

'I'M IN HAWAI'I'

On Maui, Bennett, an unemployed painter who asked that his last name not be used, is among the jobless. He's seeking SNAP benefits and a job paying more than $10 a hour.

Bennett, 21, said being unemployed has its hardships, including finding suitable housing. He's moving into a tent on someone's property in exchange for clearing scrub brush.

But all in all, the lifelong Hawai'i resident considers himself lucky.

"I'm in Hawai'i," said Bennett, musing about the state's offerings, including its natural beauty and climate. "Hawai'i's probably the best place to be in the U.S. at this time."

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