Hawaii’s unemployment rate resumed its downward trend in March, falling to 5.1 percent after holding steady at 5.2 percent during the previous two months, the state Department of Labor and Industrial Relations reported Friday.
The state’s jobless rate, which rose as high as 7.1 percent during the 2008-2009 recession, has fallen by a full percentage point during the past year.
Despite the downward trend in unemployment, other data in the March report suggested there were still soft spots in Hawaii’s labor market.
While the number of unemployed fell by 500 in March, there was an even larger decline of 3,200 in the number of employed. The result was a shrinkage of the labor force, which is still down about 6,100 from March 2012.
The labor force is made up of those with jobs and those who are unemployed but looking for work. If people stop searching for work, they’re not counted in the labor force even if they would like a job.
Hawaii’s 5.1 percent unemployment rate in March compared with a 7.6 percent rate nationally.
The statewide and national labor force data are adjusted for seasonal variations, such as the hiring of temporary workers for the holiday shopping season.
County data are not seasonally adjusted. The unemployment rate fell to 4.6 percent from 4.9 percent in Honolulu County, to 7.6 percent from 7.9 percent in Hawaii County, to 6.4 percent from 6.9 percent in Kauai County and to 5.7 percent from 6 percent in Maui County.
The labor force data are derived largely from a telephone survey of households. A separate survey of businesses showed that the number of nonfarm payroll jobs fell to 609,300 in March, a decline of 500 from February.
There was a loss of 800 positions in the trade, transportation and utilities sector, including 200 jobs at clothing retailers. There also were 200 positions lost in each of the following categories: financial activities, professional and business services, and other services.
The construction industry added 700 jobs in March, boosting hiring over the past year by 3,100 positions. The number of leisure and hospitality jobs increased by 500 in March and by 1,400 over the past year.
