Hawaii just landed at the very bottom of the unemployment charts, and not in a bad way. The islands logged a seasonally adjusted jobless rate of 2.2 percent in January, tying South Dakota for the lowest in the country. That is the same rate Hawaii posted in December, even as the monthly payroll survey showed nonfarm jobs increasing by 2,600. It all adds up to a very tight job market on paper, although economists warn that the headline number can hide deeper labor force problems.
State figures for January show 672,750 residents employed and 15,300 unemployed, for a seasonally adjusted labor force of about 688,000. The not seasonally adjusted unemployment rate was slightly lower at 2.1 percent. These household and payroll counts come from the state's monthly release, according to DBEDT.
The broader national context comes from the U.S. Bureau of Labor Statistics. Its January state report lists Hawaii and South Dakota at 2.2 percent, the lowest unemployment rates among the states. The federal release also notes that the figures are preliminary and have recently been revised, so state rankings can shift as benchmarking rolls through. That is the federal framing that currently puts Hawaii at the top of the pack, according to the Bureau of Labor Statistics.
Where Jobs Were Added
On the payroll side, the state’s establishment survey showed total nonagricultural jobs rising by 2,600 from December to January. The gains were led by professional and business services, which added about 1,000 jobs. Private education and health increased by roughly 700 jobs, and leisure and hospitality picked up about 400. Offsetting some of that growth, trade, transportation and utilities shed around 500 jobs. Those industry-by-industry figures are laid out in the state payroll tables, according to DBEDT.
What The Low Rate Masks
That glittering unemployment rate does not mean everyone is working. A low jobless number can also signal a smaller or less engaged labor force, something experts say is happening in Hawaii. “More people in Hawaii are not working or not looking for jobs,” former DBEDT chief economist Eugene Tian told the Honolulu paper, a point he says helps explain how the islands can report near record low unemployment even while participation lags. The local interview and reporting are detailed in the Honolulu Star-Advertiser.
Policymakers and employers are expected to watch closely as revisions come in and as spring benchmarking of payrolls updates the picture. For now, Hawaii’s labor market looks like a mixed bag: strong job counts in the official tallies, alongside lingering questions about how many people have stepped away from the workforce entirely.
