DLNR PRESS RELEASE: HAWAII’I UNEMPLOYMENT RATE AT 8.1% IN MAY – The number of jobs increased by 55,400 during the year
Posted on June 22, 2021 in Latest News, Press Room
HONOLULU – The Hawaii State Department of Labor and Industrial Relations (DLIR) today announced that the seasonally adjusted unemployment rate for May was 8.1% from 8.5% in April. Statewide, 595,300 were employed and 52,150 were unemployed in May for a total seasonally adjusted labor force of 647,450. Nationally, the seasonally adjusted unemployment rate was 5.8% in May, against 6.1% in April.
The unemployment rate figures for the State of Hawaii and the United States in this release are seasonally adjusted, according to the methodology of the United States Bureau of Labor Statistics (BLS). The unadjusted rate for the state was 7.5% in May, down from the revised rate of 8.0% in April. Initial jobless claims for the month of May were 2,639, down from the previous month of 1,209 (or 31.4%). The total number of continuous weeks claimed for current state benefits for the month of May was 17,299, a decrease of 520 (or 2.9%) from the previous month. Compared to a year ago, initial claims have fallen from 8,440 to 2,639 or 76.2% and weeks claimed have fallen from a record 102,500 or 85.6%.
Salaried employment in industry (Establishment survey)
In another measure of employment, total non-farm employment increased by 4,000 in the month. Job gains took place in leisure and hospitality (+2,800), professional and business services (+1,100), other services (+700), education and health services (+ 200) and manufacturing (+100). For the 2sd In a consecutive month, leisure and hospitality expansion has been robust in both accommodation, food services and drinking places. Within professional and business services, employment gains were greatest in the administrative, support and waste management and remediation services sub-sector. Employment remained unchanged in Information. Job losses were recorded in financial activities (-100), construction (-200) and trade, transport and utilities (-600). The contraction in trade, transport and utilities was concentrated in retail trade. Public employment has remained stable. During the year (May 2020 was the 2sd months of pandemic effects), non-farm employment increased by 55,400, or 10.9%). However, compared to March 2020 (the last month before the effects of the pandemic), non-farm jobs fell by 90,600, or -13.8%.
Seasonal fluctuations in the number of employed and unemployed reflect the hiring and layoff patterns that accompany regular events such as the winter vacation season and the summer vacation season. These variations make it difficult to say whether month-to-month changes in employment and unemployment are due to normal seasonal trends or to changing economic conditions. Therefore, the BLS uses a statistical technique called seasonal adjustment to solve these problems. This technique uses historical labor force data and data on the number of jobs to identify seasonal movements and to calculate the magnitude and direction of these movements. A seasonal adjustment factor is then developed and applied to the estimates to remove the effects of regular seasonal fluctuations on the data. Seasonally adjusted statistical series allow more meaningful comparisons of data between months or with an annual average.
Current Population Survey (Households) (CPS)
A survey conducted for employment status in the week that includes the 12e day of each month generates unemployment rate statistics, which is a separate survey from the Establishments Survey which gives the number of jobs in the industry. The CPS survey contacts approximately 1,000 households in Hawai’i to determine a person’s current employment status. Employed persons include: 1) all persons who performed paid or gainful work during the survey reference week, 2) all persons who performed at least 15 hours of unpaid work in a family business operated by a member of their household, and 3) all persons temporarily absent from their regular job, whether paid or not. People considered unemployed are those who are unemployed, have actively looked for work in the previous four weeks and are available for work. Workers on temporary layoff are counted as unemployed, regardless of whether they have carried out a specific job search activity. Inactive persons are those who are not classified as employed or unemployed during the reference week of the survey.
Baseline changes in local unemployment statistics data
State and sub-state level data for 2010-2020 have revised entries and have been re-estimated to reflect revised population controls and model re-estimation.
Change in monthly employment estimates
This release includes revised employment figures for the seasonally adjusted series. The revised data reflect historical corrections applied to unadjusted series at the supersector or sector level going back to 2004 to 2020. For years, analysts at DLIR’s Bureau of Research and Statistics have compiled monthly employment estimates for Hawai’i and our metropolitan areas. These estimates were based on a monthly survey of Hawaiian businesses and analysts’ knowledge of our local economies. Starting with the production of the preliminary estimates for March 2011, responsibility for producing the state and metropolitan area (MSA) estimates has shifted from individual state agencies to the United States Bureau of Labor Statistics (BLS).
For Hawai’i, this means that the transition of MSA statewide, Honolulu and Kahului-Wailuku-Lahaina estimates for seasonally adjusted and unadjusted areas is produced by the BLS. State agencies will continue to provide the BLS with information on local events that may affect the estimates, such as strikes or layoffs / hiring at companies not covered by the survey, and to disseminate and analyze the findings. estimates from current employment statistics (CES) for local data. users. The BLS believes this change is designed to improve the cost-effectiveness of the CES program and to reduce potential bias in state and region estimates. Part of the cost savings generated by this change should be spent on increasing survey response rates in the coming years, which will reduce the level of statistical error in the ETUC estimates. Until then, state analysts believe the change could lead to increased month-to-month variability in industry employment figures, especially for the counties and islands of Hawaii. The BLS can be contacted at (202) 691-6533 with any questions regarding these estimates.
Unadjusted employment estimates for Hawai’i County, Kauai County, Island of Maui, Molokai and Lanai are produced by the Hawaii State Department of Labor and Industrial Relations’ i.
Seasonally adjusted labor force and unemployment estimates for Honolulu & Maui Co.
The BLS publishes seasonally adjusted, seasonally adjusted unemployment and civilian labor force estimates for all metropolitan areas, including the City and County of Honolulu and County of Maui. The BLS publishes this data monthly in the Employment and unemployment in the metropolitan area Press release. The schedule is available on http://www.bls.gov/news.release/metro.toc.htm.
Alternative measures of labor underutilization
|Alternative measures of labor underutilization for states, Q2 2020 to Q1 2021 averages (percent).|
The six alternative measures of labor underutilization based on the Current Population Survey (CPS) and compiled on the basis of a four-quarter moving average defined:
U-1, persons unemployed for 15 weeks or more, as a percentage of the civilian labor force;
U-2, those who lost their jobs and those who completed temporary jobs, as a percentage of the civilian labor force;
U-3, total unemployed, as a percentage of the civilian labor force (this is the definition used for the official unemployment rate);
U-4, total unemployed plus discouraged workers, as a percentage of the civilian labor force plus discouraged workers;
U-5, total unemployed, plus discouraged workers, plus all other marginally attached workers *, as a percentage of the civilian labor force plus all marginally attached workers; and
U-6, total unemployed, plus all marginally attached workers, plus total part-time employees for economic reasons, as a percentage of the civilian labor force plus all marginally attached workers.
* Individuals who want and are available for work, and who have looked for a job in the past 12 months (or since their last job ended if they had one in the past 12 months), but have not counted as unemployed because they had not looked for work in the four weeks preceding the survey, for reasons such as childcare or transportation issues, for example. Discouraged workers are a subset of the marginally attached.
Note that the state unemployment rates (U-3) that are shown are derived directly from the CPS. As a result, these U-3 measures may differ from official state unemployment rates for the last four-quarter period. The latter are estimates developed from statistical models that incorporate estimates from the CPS, as well as input data from other sources, such as state unemployment claims data.
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