October Hawaii jobless rate holds steady at 7.2%

Hawaii’s unemployment rate was 7.2 percent in October, even with September, up 2.6 percentage points from a year ago and up from 4.6 percent in October 2008. For the month, there were 16,800 more people out of work this year than last, the U.S. Department of Labor said on Nov. 20 -- of the 645,500 people in the work force, 46,700 were without jobs for the month.

Hawaii’s jobless rate is still below the national figure, which rose to 10.2 percent in October, up from 9.8 percent in September. California’s rate was 12.5 percent. Meanwhile, the national unemployment rate continued to rise from 9.8 percent in September to 10.2 percent in October, which was the highest jobless rate since 1983.

Almost one in six Americans is unemployed, underemployed or working a part-time job while preferring full-time work. Combined, the ranks of jobless and underemployed in the U.S. grew to 17.5 percent in October, up from 8.4 percent in November 2007, when the recession started.

The economy lost another 190,000 jobs in October, the Labor Department said, despite President Barack Obama's administration's claims on the recovery.gov web site that the $787 billion stimulus bill passed by Congress directly saved or created some 640,329 jobs as of the end of October. By industry, factories lost 61,000 jobs, construction fell by 62,000 jobs and the service industry lost 61,000 jobs.

Government employment was unchanged.

Hawaii had seven “mass layoffs” in October, up from six in September, which resulted in the loss of 630 jobs for at least 31 days, the Labor Department said. In October 2008, there were nine mass layoff events that resulted in the loss of 910 jobs.

A mass layoff is when there are 50 or more initial claims for unemployment insurance benefits from one employer during a five-week period, with at least 50 workers separated for more than 30 days. Nationwide there were 1,934 mass layoffs in October with 193,904 workers losing their jobs for at least 31 days, seasonally adjusted.

Locally, Maui Land & Pineapple is quitting the pineapple business after 97 years and will lay off up to 285 employees. The Kahului-based company announced Tuesday a restructuring plan between its two operating companies, Maui Pineapple Co. and Kapalua Land Co. The new direction will focus on Kapalua Resort.

The company said it will immediately stop planting pineapple and cease pineapple operations by the end of the year, ending the pineapple business on Maui and leaving only a small Dole Food Co. pineapple operation on Oahu growing the crop. The announcement came just days after the company reported a $25.5 million third-quarter loss.

Job losses in Hawaii should slow next year as visitor arrivals begin a slow recovery, economist Leroy Laney predicted Nov. 5. The number of jobs in the state are estimated to fall 3 percent this year and another 0.5 percent next year. 2010 will be a “year of stabilization,” Laney said at the First Hawaiian Bank annual economic outlook forum. Continued job losses will increase Hawaii’s unemployment rate to 7.5 percent in 2010, said Laney, a professor of economics and finance at Hawaii Pacific University.

Unemployment benefits extended

Hawaii’s jobless can get an extra 14 weeks of unemployment benefits, according to the Hawaii Department of Labor and Industrial Relations. Benefits of up to $570 a week have been extended from 59 weeks -- already up from the 26-week limit in place before the recession -- to 73 weeks for certain unemployed people under the new federal Worker, Homeownership and Business Assistance Act of 2009.

The state Labor Department said it will send notices to claimants who are eligible for the extended benefits. The additional benefits are entirely federally funded and will not have an impact on the state’s general fund or the unemployment insurance trust fund.