Honolulu job market sees improvement

The Honolulu job market improved over the past year, according to data compiled by Portfolio.com. The area now ranks 32nd among the nation's top 100 job markets, according to a report released in October. This marks a year-to-year improvement; Honolulu ranked 41st in 2008.

The study noted the area lost 12,800 private sector jobs, or 3.6 percent, from 2008 to 2009 and its 6.9 percent unemployment rate as of June. Honolulu saw raw growth of 9,400 private sector jobs between 2004 and 2009, an increase of 2.8 percent.

Nearly 6 million private sector jobs have vanished nationwide since June 2008, or 485,000 jobs per month. The national unemployment rate has skyrocketed nearly four points over the same span – from 5.6 percent at last year’s midpoint to 9.5 percent this year.

In late October, a Watson Wyatt survey reported that wage and hiring freezes have begun to thaw at U.S. companies that implemented them during the recession. The Washington-based human resources consulting firm said 54 percent of employers that froze salaries plan to unfreeze them within the next six months, up sharply from 33 percent in August and just 17 percent in June. At companies that implemented hiring freezes, 49 percent expect to at least partially reverse them in the next six months.

"The general economic picture right now is definitely brighter than it was just a few months ago," says Watson Wyatt global director of strategic rewards consulting Laura Sejen. "However, the recovery is uneven and most employers aren't fully convinced that improvements they've seen are here to stay [and] they remain concerned about their ability to attract and retain the right people."

Not all companies are out of the woods either. Watson Wyatt says about one-fifth of those surveyed still anticipate making layoffs this year or next. And with the holiday season approaching, there is still little reason to hope for a big office party. Only 37 percent of employers plan to organize a holiday party this year, compared to 70 percent in 2007.