Average Hawaii
paychecks rank 19th

Isle wage statistics reveal
a shortage of high-paying jobs

Blue-collar workers in Oahu's hottest industries -- tourism and construction -- lead the nation in wages.

But despite the high cost of living in Hawaii, the state's average wage ranks 19th nationally at $36,300 and is just slightly below the U.S. average of $37,020.

Hawaii has more service and construction jobs than it can fill, but there are fewer high-paying professional jobs than in other regions, which bring down the state's average wage. While Hawaii's waiters, bartenders, bellhops, porters and laundry attendants make more than their peers in other regions of the United States, their supervisors as a whole do not.

Those are some of the findings of a survey released yesterday by the U.S. Bureau of Labor Statistics, which analyzed 2004 wages by area and occupation.

"The bulk of Hawaii's employment is in lower-paid occupations," said Charlotte Wee, regional economist for the Bureau of Labor Statistics, who herself is a Hawaii expatriate who moved to San Francisco for a better job.

For instance, the average wage of a hotel clerk in Hawaii is $30,410, which puts workers in that industry at the top of the nation. On the other hand, Hawaii's hotel lodging managers are ranked seventh nationally with a wage of $52,510. These white-collar professionals earn more than the U.S. average of $44,060 but bring home far less money than their top-ranked peers, who earn an average wage of $76,330 in Washington state.

"The cost of living and wages do seem to go hand in hand for most regions of the United States, but while Hawaii has a higher cost of living, it's ranked below the national average for wages," Wee said.

The mix of occupations in Hawaii skews the data because the state has a disproportionate number of lower-paying service industry jobs as compared with other regions, she said.

"Hawaii doesn't have as many software engineers, scientists, engineers or professionals as other states," Wee said.

In higher-level occupations, such as engineering managers, Hawaii workers earn an average of $110,180, ranking fifth in the nation for the job. But, while Massachusetts and New Jersey both have about 5,000 engineering managers in their states, there are only 710 of those positions in Hawaii, Wee said.

"That's really good work, if you can get it," she said.

Overall, workers in the District of Columbia have the highest average wage in the nation at $56,750 -- $20,450 more than their Hawaii counterparts.

For annual median wage, Hawaii actually ranks just above the national median with half the work force making above $29,270 and half below it. The U.S. median is $28,770, with the District of Columbia again leading the way at $45,040.

Hawaii's lower pay resonates with Greg Kingsley, a former Oahu resident and Iolani graduate who moved to Cleveland last year after realizing it is hard to make a living wage or find professional advancement in Hawaii's economy.

Kingsley said he worked for the former Aloha Island Air for a time after earning his degree from Embry-Riddle Aeronautical University, but he had to leave the state to become an aircraft maintenance controller.

In his first six months at Flight Options, a corporate aircraft company based in Cleveland, Kingsley said he already has earned the equivalent of his full salary at Aloha Island Air. He has also been able to buy a three-bedroom, two-bath house for $130,000, he said.

"The power of the dollar in Hawaii is absolutely weak," Kingsley said. "That's why I moved to, yuck, Cleveland. ... It's no paradise, but the pay/resume-building experience is worth it."

Though Hawaii has far to go in the creation of higher-paying jobs, the state has made progress in average wages, said James Hardway, special assistant to the state labor director.

Hawaii's average wage grew 3.4 percent from 2002 to 2004, with workers earning an average of $1,190 more, Hardway said.

The state also has created more jobs, albeit higher-paid ones are still needed, he said.

"Our unemployment numbers have been decreasing while our available work force has been increasing," Hardway said.

In June, Hawaii posted a 2.7 percent unemployment rate, the best in the nation, he said. And there are plenty of jobs in the state's service sector and construction industries.

According to state data, construction workers in Hawaii earned an average wage of $47,700, nearly $10,000 above the national average. But while there are plenty of construction jobs available, a lack of skilled workers has made them difficult to fill, Hardway said.

More higher-paying positions will be created in Hawaii when the state's work-force initiatives begin to produce better-educated and skilled workers, he said.

"If you don't have a skilled work force to man the positions, why would any business open up those jobs?" Hardway said. "It doesn't make sense to bring jobs to an area where no one is qualified."