Hawai'i's unemployment rate last month shot up to levels not seen in more than 31 years, and some economists say joblessness will get worse before it gets better.

Unemployment jumped to 7.4 percent on a seasonally adjusted basis in May as companies shed workers because of an economic downturn blanketing the state. The state Department of Labor and Industrial Relations reported there were 47,850 unemployed, or almost enough to fill Aloha Stadium.

"No one is hiring at all," said David Sampley, a journeyman plasterer on the Big Island who has been seeking a job for four months. "I've been calling friends that do similar trades, and they're looking for work, too. They just mention how lucky I am to get unemployment (benefits)."

The May jobs report was similar to many of the monthly reports issued over the past year — unemployment increased, the number of jobs decreased and Neighbor Island joblessness was worse than O'ahu's. The statewide rate was the highest since December 1977.

Hawai'i isn't alone in the surging numbers as job losses sweep the country because of an economic downturn, and several states — including California, Nevada and Oregon — reported record unemployment. And while the rate is lower than the national average, it is still presenting problems for the state's economy and those without jobs.

Locally, the job drought is resulting in unprecedented numbers at job fairs.

Yesterday, a fair with 40 employers at Marine Corps Base Hawaii at Kane'ohe Bay was opened to civilians, resulting in the highest attendance — 1,438 — in its 14-year history. In May, a job fair at the Neal Blaisdell Center attracted a record crowd of 6,500.

"This has been one hell of a rocky road," said R. Lee Donaldson, a Honolulu resident with a wealth of retail management experience.

Donaldson began looking for a job in December and thought he'd have something by April at the latest.

"Around May I started sweating it, and now we're in June," he said.

Both Sampley and Donaldson work in two of the hardest-hit industries by the current recession. But some economists say the job situation may get worse in coming months as the recession takes its course and other events, including the state furlough program, affect unemployment rolls.

"We've certainly not seen the worst of the unemployment problem here yet," said Byron Gangnes, director of the Hawai'i Economy Project at the University of Hawai'i Economic Research Organization.

"I'm pretty sure we're not done going up. It would be a big surprise to me if this is the peak."

8.1 PERCENT RATE FORECAST

UHERO has forecast unemployment will average 7.4 percent this year and 8.1 percent next. While the economy may start improving by the end of this year, unemployment often lags behind a pickup in the economy because employers are cautious to take on new workers until they are certain economic problems have dissipated, Gangnes said.

Gov. Linda Lingle's furlough program that cuts state worker pay by 13.8 percent is included in the UHERO forecast and is expected to have an indirect effect on employment. Less pay for the workers translates into less consumer spending, which in turn may force businesses to cut back payrolls further, Gangnes said.

"It will create some additional unemployment," he said. "We don't know how much."

Gangnes noted the May unemployment rate was still below the 10.2 percent record reached in March 1976. Joblessness may have been higher before that, but records using the current methodology only go back to the start of 1977.

He said the current job losses are notable in terms of their number and how fast it occurred. He said there have been 26,000 jobs lost since January last year.

NEIGHBOR ISLANDS HURTING

Other data in the May unemployment report show that more than one of every 10 workers were without a paycheck on the islands of Hawai'i, Kaua'i, Moloka'i and Lana'i during the month. Neighbor Island data are not adjusted for seasonal variations. This included: