Hawaii’s unemployment rate inched up one-tenth of a percentage point in June to 3.3 percent, its highest level this year, according to data released Friday by the state Department of Labor and Industrial Relations.
The 3.3 percent jobless rate in June was up from 3.2 percent in May and matched the Hawaii numbers reached in November and December.
“That is still one of the lowest in the nation, so it’s still very good,” said Eugene Tian, chief economist for the state Department of Business, Economic Development and Tourism. “One month variation doesn’t tell the trend. It doesn’t mean we’re trending down. Usually we look at longer periods like six months, so we’re still good.”
Total nonfarm payroll jobs last month rose by 3,600, to 650,900, and increased by 14,700, or 2.3 percent, over the past year. The nonfarm payroll jobs figure includes people who might hold multiple jobs but doesn’t include people who are self-employed.
However, the construction sector, which had been at an all-time high for employment, saw its job count slip in June by 600 workers, to 40,000.
“That is accepted because building permits have been slowing and declined 39 percent over the first five months of the year,” said Tian. “We knew sooner or later that construction jobs would be reflected in the decrease in building permits. When issuing building permits, it takes about a half-year to one year to start construction, so it’s not surprising to see construction jobs decrease.”
For the month, Hawaii had the sixth-lowest unemployment rate in the country behind South Dakota (2.7 percent), New Hampshire (2.8 percent), Nebraska (3.0 percent), North Dakota (3.2 percent) and Vermont (3.2 percent).
The state’s lowest unemployment rate dating back to January 1976 — the oldest available data on the U.S. Labor Department website — was 2.4 percent, achieved from October through December 2006 and May through September 1989.
The U.S. unemployment rate was 4.9 percent in June, up from 4.7 percent in May.
In another measure of the Hawaii economy, the state’s labor force, which includes people who are employed and those who are unemployed but actively seeking work, fell to 685,350 last month from 688,000 in May.
There were 662,500 people employed in June, down from 665,650 the previous month, while the number unemployed increased to 22,850 from 22,350.
Among the payroll jobs, the largest increase last month came from the leisure and hospitality industry, which rose by 2,000 jobs, and professional and business services, up 1,900.
Hawaii’s unemployment rate is derived largely from a monthly telephone survey of households, while a separate survey of businesses determines the number of nonfarm payroll jobs.
The unemployment rate rose in all four major counties from the previous month. State and national labor force data are adjusted for seasonal factors, but the county jobs data are not seasonally adjusted and thus do not take into account variations such as the winter holiday and summer vacation seasons.
Honolulu County’s rate increased to 3.6 percent from 2.9 percent. Hawaii County’s rate rose to 5.0 percent from 4.0 percent. Kauai County’s rate increased to 4.0 percent from 3.4 percent, and Maui County’s rate rose to 3.9 percent from 3.2 percent.
Within Maui County, Maui’s jobless rate increased to 3.6 percent from 3.0 percent, and Molokai’s rate jumped to 11.5 percent from 7.6 percent. Lanai’s rate remained at 7.5 percent.