The state unemployment rate jumped to 4.9 percent in December, significantly higher than a year ago but an improvement from November, according to figures released yesterday by the state Department of Labor and Industrial Relations. December jobless rate
rises to 4.9%By Lyn Danninger
ldanninger@starbulletin.com
While still substantially above December 2000's unemployment rate of 3.6 percent, the number represents a 0.6 percentage point decrease from November's 5.5 percent unemployment rate.
"You'd expect the (unemployment) rate to down seasonally in December. But it's quite likely the January unemployment rate will go higher. In good or bad times, the unemployment rate is always higher then," said Leroy Laney, professor of economics and finance at Hawaii Pacific University.
The most recent unemployment numbers for the first two weeks of January confirm Laney's expectations.
For the first two weeks of the month, 5,460 people filed claims for unemployment, said Tom Jackson, spokesman for the state Department of Labor and Industrial Relations.
"Normally, it's been averaging about 2,000 per week and before Sept. 11, it was about 1,400 per week," Jackson said.
The overall state unemployment rate for the fourth quarter of last year averaged 5.2 percent.
In contrast, the average statewide unemployment for the first three quarters of last year was 4.4 percent.
Nationally, the December unemployment rate was 5.4 percent, a slight increase from November's 5.3 percent.
Statewide, there was a net increase of 3,200 non-agricultural jobs in December.
The month's employment gains were primarily due to hiring for the holiday season. The retail trade added 1,400 jobs which came primarily from general merchandise, apparel and accessory stores.
Services saw an increase of 900 jobs. Within that sector, hotel employment improved by 300 jobs, due in large part to visitor attendance at both the Honolulu Marathon and the events related to the 60th anniversary of the attack on Pearl Harbor.
The number of jobs related to delivery of health care services also increased, showing a gain of 200 jobs.
Government employment grew during December by 1,600 jobs, largely due to seasonal hires within the U.S. Postal Service and workers at the University of Hawaii.
Employment in manufacturing, wholesale trade, finance, insurance and real estate industries remained largely unchanged.
The combined transportation, communications and utilities sectors saw a reduction of 800 jobs with airline and ground transportation firms that cater to the visitor industry continuing to suffer fallout from Sept. 11.
Both Laney and University of Hawaii economics professor Carl Bonham expect some improvement in the economy and employment sometime during the second quarter.
But affecting the numbers will be how many people pull out of the labor force, to pick up and move out of state, retire or work from home, Bonham said.
"When prospects for good employment deteriorate, you tend to get people pulling out," he said.