LIHU‘E — Unemployment on Kaua‘i dropped from nearly 9 percent in April to 8.5 percent last month — the lowest it has been since December 2008, said Office of Economic Development Workforce Investment Act specialist Jan Miyamoto. “Although we anticipated
LIHU‘E — Unemployment on Kaua‘i dropped from nearly 9 percent in April to 8.5 percent last month — the lowest it has been since December 2008, said Office of Economic Development Workforce Investment Act specialist Jan Miyamoto.
“Although we anticipated that the unemployment rate would continue to decline in May, we were a bit surprised to see it decline by 0.4 percent,” said WorkWise Kaua‘i Branch Manager Bill Grier. “That’s a fairly significant reduction …”
The “total labor force” — the number of people either seeking employment or currently holding jobs — decreased by 100, Miyamoto said. “The reduction may be attributable to people leaving the island, as well as those who ‘left the workforce’ because they depleted their benefits and are not actively looking for work.”
Yet the total number of individuals employed in May “remained stable,” Miyamoto said.
This could mean one of three things: all who had jobs in April still had jobs in May, the number who lost their jobs equaled the number who started employment or a combination of the two, she said.
The number of unemployed people previously collecting benefits declined by 150 in May, Miyamoto said. “This decline could be attributable to people finding work as well as not counting those who are now discouraged workers.”
Discouraged workers encompass those who are not currently looking for a job, but are available to work and have sought employment within the past 12 months.
When including discouraged workers, the unemployment rate for the state from the second quarter of 2009 to the first quarter of 2010 was 16 percent, according to the U.S. Bureau of Labor Statistics.
However, there is “across-the-board evidence” that people are finding jobs on Kaua‘i, Grier said.
“As the economy gradually improves employers are beginning to replace workers lost during the worst of the recession,” he said.
Walk-in traffic at the WorkWise office in Lihu‘e was down in May compared to April, Grier said. Individuals seeking general employment services, assistance with unemployment insurance issues, and those inquiring about opportunities available through the company’s programs all declined in May compared to April.
The job count on Kaua‘i increased by 250 in May, Miyamoto said. If the trend continues it could be “the best indicator of our improving economy.”
Even though the largest number of unemployment claims for Kaua‘i have been in the construction industry, followed by accommodation and food services, both of the industries declined in the number of claims received last month, said Department of Labor and Industrial Relations spokesperson Ryan Markham.
“People are slowly getting back to work,” Grier said. “For those out of work these are still tough times, but there seems to be reasonable hope for most that the worst is now behind us and we are working our way back to a more normal employment environment.”
To read about the University of Hawai‘i Economic Research Organization’s predictions for employment see the Business Week section inside today’s edition.
• Coco Zickos, business and environmental writer, can be reached at 245-3681 (ext. 251) or czickos@kauaipubco.com.
