When unemployment claims spiked in the early days of the COVID-19 pandemic, the state was woefully unprepared. More than 200,000 claims were filed in the first two months. Tens of thousands of people waited months to get that first unemployment check — if they got one at all. Some claims were swallowed up by an antiquated mainframe system, never to be seen again. It was borderline chaos.
In the wake of Maui’s destructive wildfires, the state now faces another unemployment crisis. Like the pandemic, it came suddenly and unexpectedly.
And while fewer people lost their jobs, their suffering is no less; in fact, having also lost nearly everything else — their homes and whatever was in them — it is likely many will need more assistance over a longer period of time. The state Department of Labor and Industrial Relations (DLIR) and other agencies must be prepared for the long haul.
More than 15,000 Maui residents have filed for unemployment assistance in the wake of the devastating wildfires. This time, thanks to some upgrades to DLIR’s upfront web system and mainframe, applicants should find it easier to navigate the system online. So far, the load is manageable, DLIR says. The agency must make sure it remains that way.
Last month’s fires did extensive and lasting damage, leaving many Maui residents, especially those at the lower end of the socioeconomic scale, dangerously exposed. Some grim statistics bear this out.
Roughly 800 businesses employing about 7,000 workers were lost in Lahaina, along with $2.7 million a day, estimates from the state Department of Business, Economic Development and Tourism (DBEDT) show. The loss of an estimated 2,000 homes cost about $1.7 million in monthly rental income.
Tourism, the No. 1 driver of Maui’s economy, also suffered severe losses. Passenger arrivals in Kahului fell by 70%, from 7,000 a day to 2,000. Estimated losses from business closures and visitor spending on Maui: $11 million a day since Aug. 9. Many hotels are filled not with tourists, but with displaced and now-homeless West Maui residents.
The tourism numbers are especially troubling. A 2021 DBEDT analysis of the pandemic’s effect on the labor market found that tourism workers suffered the steepest job losses and drops in actual hours worked when compared to nontourism workers. The analysis also found that the highest unemployment rates could be found among those who were younger, who were less educated and who worked in low-wage jobs.
It’s reasonable to conclude that Maui can expect similar results, especially with the leveling of Lahaina, a once-bustling visitor hub.
Of course, it’s impossible to predict how long Maui’s recovery will take, and what that will look like. Much will depend on the ability of Maui’s leaders and the community at large to reach consensus on how to rebuild Lahaina. But in the meantime, people need jobs or unemployment relief now.
Bringing back tourism — an essential piece of the recovery puzzle — remains a challenge. The horrors of Aug. 8 have made it difficult to persuade tourists to return to Maui. Still, the state and the industry must persist, as a tourism rebound would be among the quickest routes to putting Maui residents back to work. Hotels already are reducing room rates and airlines are cutting fares. And on Friday, Gov. Josh Green announced that West Maui would be open to visitors again beginning Oct. 8.
DLIR has resources for disaster recovery jobs through the federal disaster unemployment assistance program. It also has a HireMaui portal where available jobs are posted. They can be found at labor.hawaii.gov/blog/mauiwildfires/.
Private agencies also have stepped forward. Among them is the Council for Native Hawaiian Advancement, which offers free workforce development training for Maui residents (hawaiiancouncil.org/maui-workforce-dev/).
The efforts of these and many other agencies and organizations are crucial. They must ensure that as West Maui recovers, no one is left behind.