Hawaii unemployment dropped sharply in August for the second month in a row as the economy continued to grow on the strength of its tourism and construction sectors.

The seasonally adjusted rate fell to a seven-year low of 3.5 percent last month, down from 3.7 percent in August and 4.0 percent in June, according to data released Thursday by the state Department of Labor and Industrial Relations. The last time the seasonally adjusted jobless rate was lower was March 2008 when it was 3.4 percent.

Payroll jobs increased by 8,200 from July with leisure and hospitality (up 700) and construction (up 500) leading the way. But the labor force, which includes those who are employed and those unemployed but actively seeking work, rose by just 100 to continue a recent trend showing that either fewer people are looking for work or people are leaving the state.

“This report is an indication the labor market continues to improve, but there’s a mixed signal,” said Eugene Tian, chief economist for the state Department of Business, Economic Development and Tourism. “We do have an increase in employment because we do see more people are employed, but at same time we see fewer people coming back to the labor force.”

Hawaii’s labor force rose to 673,050 in August from 672,950 in July. But the labor force has been shrinking from earlier in the year.

“The first half of the year, the average was about 675,000 in the labor force, but then it dropped to an average of about 673,000,” Tian said. “So that means there are fewer people in the labor force than before.”

There were a record 649,350 employed last month versus 648,100 in July, while those unemployed declined to 23,700 from 24,800 over the same period. The previous employment record, which includes those who are self-employed, was 649,000 in June.

Hawaii’s lowest unemployment rate ever was 2.3 percent in October, November and December 2006, and its current 3.5 percent rate is one of the five lowest in the country.

“Both the 20 percent drop in unemployment claims and additional 8,200 (payroll) jobs in one month reflect that our economy is performing well and sustaining high levels of job growth,” state Labor Department Director Linda Chu Takayama said in a statement.

Nationally, the unemployment rate is following the same downward path as Hawaii. The U.S. rate was 5.1 percent in August, down from 5.3 percent in July.

Kapolei resident Marc Reese, 50, who retired from the Air Force last summer after a 26-year career, has been looking for a job while working as a technology consultant. On Thursday he received a job offer.

“Searching for a job is always challenging,” Reese said. “But the key is finding something that you’re going to enjoy and falls within your specialized skills. While there may be many jobs out there, finding one out there that fully resonates with you is important.”

The underemployed rate for Hawaii’s labor force was 10.1 percent from July 2014 to the end of June. Underemployed includes those unemployed, working part time when they’d rather work full time, or not working in the job they would prefer, according to the state Labor Department.

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 nonfarm payroll jobs figure includes people who might hold multiple jobs but doesn’t include people who are self-employed.

The county unemployment numbers were mixed. 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 remained at 3.1 percent while Hawaii County’s rate dipped to 4.2 percent from 4.3 percent. Kauai County’s rate rose to 3.8 percent from 3.7, and Maui County’s rate edged up to 3.4 percent from 3.3 percent.

Within Maui County, Maui island’s jobless rate rose to 3.2 percent from 3.1 percent, Molokai’s rate increased to 9.2 percent from 8.8 percent and Lanai’s rate climbed to 2.9 percent from 2.1 percent.