The state's seasonably adjusted unemployment rate in June hit a five-year high of 3.8 percent, more than a percentage point higher than the same month last year.

Hawai'i's unemployment has been on a steady climb this year and received several spikes with the closures of Aloha and ATA airlines, Molokai Ranch and the departure of Norwegian Cruise Lines' Pride of Aloha in May. Last month's 3.8 percent rate was 0.2 percentage point higher than in May and 1.2 percentage points higher than June 2007, according to the state Department of Labor and Industrial Relations.

Although the state's jobless rate is rising, it still is well below the national average of 5.5 percent. The national unemployment rate in June 2007 was 4.6 percent, according to the U.S. Department of Labor Bureau of Labor Statistics.

Hawai'i is tied with two other states for the sixth lowest unemployment rate in the country, with South Dakota leading the nation at 2.8 percent.

At 3.8 percent, the jobless rate is approaching a projection by the state Department of Business, Economic Development and Tourism that unemployment could hit 3.9 percent this year because of the shutdown of the airlines in late March and early April. Labor officials said it would take at least a couple of months before the full impact of the layoffs was felt.

Initially, 1,803 former Aloha employees filed for unemployment benefits, said James Hardway, labor department spokesman. As of Monday, 827 of them have stopped filing weekly claims for benefits, meaning they likely have found jobs, Hardway said.

Hawai'i's workforce grew last month when compared with a year earlier. There were 638,150 people employed in Hawai'i in June and 25,200 unemployed, for a seasonably adjusted workforce of 663,400.

In June 2007, the labor force consisted of 633,200 employed and 16,650 unemployed.

Although Hawai'i's unemployment rate is rising and there are signs that the economy is softening, Labor Department Director Darwin Ching said he is optimistic that the state's job market will remain steady.

"We continue to remain cautiously optimistic that Hawai'i will be able to continue to show its resiliency, particularly in the private sector, in creating new jobs for those affected by the recent closures in the private sector," Ching said.

Private sector industries that saw job losses last month were in leisure and hospitality, which saw a decrease of 800 positions partially caused by the temporary closure of the Royal Hawaiian hotel for renovations and the shutdown of Molokai Ranch, the department said.

Job gains were seen in educational and health services, up 400 jobs; and construction, which had 100 more jobs in June than a month earlier.

In another measure of employment, the state reported that seasonably adjusted nonfarm payroll jobs decreased by 400 to 626,900 from May to June.