Hawaii joblessness at 30-year high: 6.5%
By Greg Wiles
Advertiser Staff Writer
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Hawai'i's unemployment rate climbed to its highest level in more than three decades last month as 6.5 percent of the state's workforce was idled.
Figures released by the U.S. Bureau of Labor Statistics shows unemployment more than doubled from the 3.1 percent seasonally adjusted rate a year earlier.
The jobless rate was the highest since October 1978, when unemployment hit 6.6 percent as high inflation dampened state and national economies.
Hawai'i's unemployment rate has been steadily rising since the second half of last year as a troublesome economic downturn took a toll on jobs. In February, Maui Land & Pineapple Co. announced 98 layoffs, and several well-known restaurants closed, including Nick's Fishmarket, E&O Trading Co. and Brew Moon.
While bad news for the state, Hawai'i's unemployment rate remained below the national average of 8.1 percent.
"Hawai'i usually follows the rest of the nation," said labor economist Lawrence "Bill" Boyd. But "our rate tends to be a little bit lower."
Hawai'i's 6.5 percent rate tied with Texas for the 15th lowest rate in the country.
Honolulu's joblessness was 5.4 percent as unemployment inched higher on O'ahu.
Other figures released yesterday show:
JOBLESS RANKS RISE
The rising rate was not a surprise given a nagging recession that's contributed to job losses here and on the Mainland. It's expected that unemployment will continue to rise here, with 236 workers being added to the jobless ranks this month when the Hawaii Superferry shut down.
The University of Hawai'i Economic Research Organization has forecast unemployment will rise to 7 percent this year and increase more next year as the state works through the worst economic downturn since statehood.
Boyd said Hawai'i's unemployment rate would be higher if not for the number of multiple job holders in the state. He said as much as 8 percent to 9 percent of the workforce here hold more than one job, while nationally the figure is more on the level of 6 percent to 7 percent.
Thus more people could be losing one of their jobs and still be counted as employed when their income has declined, Boyd said.
All states and the District of Columbia had higher year-over-year rates, and 49 states and the District of Columbia saw their unemployment rates move higher in February from the previous month, when Hawai'i's rate was 6.1 percent.
Seven states including California, Nevada and Oregon had unemployment rates that topped 10 percent last month. That's up from four states in January.
TOUGH ON MAINLAND
Economists predict the national jobless rate will hit 10 percent by year's end even if the recession were to end later this year as some hope.
Michigan's jobless rate climbed to 12 percent, the highest in the country. South Carolina registered the second-highest at 11 percent and Oregon came in third at 10.8 percent.
North Carolina came in fourth with an unemployment rate of 10.7 percent, the highest there on records dating to 1976. California and Rhode Island tied for fifth place at 10.5 percent each.
That was a record high for Rhode Island. The seventh state with a jobless rate above 10 percent was Nevada at 10.1 percent.
Wyoming once again had the lowest unemployment rate, 3.9 percent.
The Associated Press contributed to this report.Reach Greg Wiles at gwiles@honoluluadvertiser.com.
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