Hawaii Unemployment Rose in August
The state's jobless count increased as more residents entered the labor force looking for work.
Updated on Sept. 22, 2026 in Employment
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In August 2026, the number of unemployed individuals in Hawaii rose to 18,800 from 18,350 in July, even as the seasonally adjusted unemployment rate held steady at 2.7%. This expansion in the number of job seekers accompanied a growth in the state's total labor force to 692,750.
Why it matters
The rise in unemployment amidst a growing labor force signals an influx of new job seekers, which can impact local talent acquisition and wage competition. With Hawaii maintaining the fourth-lowest unemployment rate in the nation, local operators face a persistent challenge in securing labor within this tight market.
Hawaii's unemployment reached 18,800 in August, up from 18,350 in July, against a total labor force of 692,750. While the statewide rate held at 2.7%, the state added 100 nonfarm payroll jobs to reach a total of 643,000.
The players
Hawaii
A state economy characterized by a low unemployment rate of 2.7% and significant reliance on the leisure and hospitality sector.
The details
Employment dynamics shifted across sectors in August, with professional and business services adding 700 jobs while the leisure and hospitality industry shed 700. These figures are derived from two distinct sources: a household survey used for labor force size and unemployment, and a mail survey of employers used for payroll job counts. The ongoing tension between labor force growth and sector-specific hiring creates varying recruitment pressures for businesses.
Timeline
August 2026: The number of unemployed individuals rose to 18,800.
July 2026: The number of unemployed individuals was 18,350.
2017: Hawaii recorded its lowest unemployment rate of 2.0%.
December 2019: The total labor force reached 693,073.
March 2020: Total employment reached 675,985.
Market Landscape
Hawaii's current labor force size reflects a continued adjustment following the 2020 COVID-19 employment contraction. The state's 2.7% unemployment rate aligns with a broader trend of low joblessness compared to the national average of 4.1%.
Business operators should anticipate continued competition for talent as the labor force expands and sector-specific churn persists. Monitoring the disparity between hospitality and professional services hiring will be essential for managing wage pressures and recruitment strategies.
The takeaway
The rise in unemployment despite a low 2.7% rate indicates an active labor market where new job seekers are entering the workforce. Operators should track the professional and business services growth trajectory as a leading indicator for local sector-wide demand.
Further reading
For more data on local market conditions, see Employment.
Source note: This article includes information reported by Hawaii Tribune-Herald.
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