Hawai'i's seasonally adjusted unemployment rate shot up to 4.2 percent in August, the highest it's been in more than six years, according to figures released yesterday by the state Department of Labor and Industrial Relations.

The unemployment rate has been steadily rising in recent months as layoffs at local businesses have increased. More than 5,200 workers have been laid off since the start of the year.

The last time the state's unemployment rate was at 4.2 percent was in April 2002 when the state and nation was recovering from the economic impact of the 9/11 terrorists attacks.

Nationally, the unemployment rate also continued to rise and reached 6.1 percent in August, 0.4 of a percentage point higher than in July. In August 2007, the nation's jobless rate was 4.7 percent.

David Hammes, head of the economics department at the University of Hawai'i-Hilo, said although Hawai'i's rate is rising, it doesn't necessarily mean bad news for the state.

Hammes pointed to the labor force in August, which had 636,050 employed, up from 628,850 the same month last year. At the same time, the number of unemployed increased from 17,350 in August 2007 to 28,100 last month.

"What's the least bad way of having your unemployment rate go up? The least bad way is when employment is rising, but unemployment just tends to be rising a little bit faster," Hammes said. "The percentage will scare you. You say, '2.7 to 4.2? The sky is falling!' But if you can look at the numbers a little more closely you say, 'More people are working.' "

Hammes added that 4 or 5 percent unemployment is considered by economists to be an efficient level at which the economy can operate.

"It sounds like we're being terribly heartless, but it's the notion that the duration is not for a lifetime, and it's a shifting and sifting and search that people go through, which we refer to as frictional unemployment."

Darwin Ching, labor department director, said the department is "encouraged by the number of jobs created even during these challenging times."

There are segments in the economy that are expanding. The state reported job increases in the construction, as well as leisure and hospitality industries. The government also added 1,500 positions in August.

One company that is hiring new employees is tax and business consultant Grant Thornton, which has scheduled a job recruiting event today. Patrick Oki, a partner with the firm, said he hopes to expand his staff of 60 by 12 this year.

Oki said in tough times, more people and businesses seem to seek the help of accounting firms. As the economy has soured, he said, his firm has received more inquiries from prospective clients as well as employees.

"Most companies are going to need accountants, regardless of the condition of the economy," Oki said. "Overall, the accounting industry is not that affected by a downturn in the economy."