Unemployment rate in the state declines, reaching a level last seen before COVID-19 pandemic at 2.7%
Hawaii's Labor Market Remains Strong Below National Unemployment Level
As of July 2025, Hawaii's unemployment rate stands at a low 2.7%, marking a significant decrease from the national rate of 4.2% for the same month. This trend continues a downward trajectory that began in July 2024, when the state's unemployment rate was 3.0%, and further from June 2025's rate of 2.8%.
Across Hawaii's counties, Honolulu maintains the lowest unemployment rate among major U.S. cities, with an approximate 2.5% rate (not seasonally adjusted for July 2025). Other counties in the state exhibit varying unemployment rates, but specific figures beyond Honolulu and the state average were not detailed in the latest data.
Kauai and Maui County also experienced low unemployment rates in July, with Kauai at 2.3% and Maui County at 2.8%. Within Maui County, Lanai and Molokai had higher unemployment rates of 3.8% and 5.3%, respectively.
The increase of 13,400 jobs year-over-year suggests growth in multiple sectors, with economic reports typically identifying tourism, services, and government as major employment areas in Hawaii. While sector-specific unemployment rates for Hawaii were not provided, economists remain optimistic about the state's labor market stability through 2025 and 2026, indicating steady employment gains across sectors.
In July, 669,750 people were employed in Hawaii, with 19,300 unemployed. The seasonally adjusted unemployment rate for July was 2.7%, a decrease from 2.8% in June. This is the lowest unemployment rate in Hawaii since before the COVID-19 pandemic.
Sources:
[1] Hawaii Department of Labor and Industrial Relations. (2025). Unemployment rate. Retrieved from https://labor.hawaii.gov/calculated/unemployment-rate/
[2] U.S. Bureau of Labor Statistics. (2025). Unemployment rates for states. Retrieved from https://www.bls.gov/web/laus/lausmis16_202507.htm
[3] Pacific Business News. (2025). Hawaii unemployment rate dips below 3% for first time since pandemic. Retrieved from https://www.bizjournals.com/pacific/news/2025/08/12/hawaii-unemployment-rate-dips-below-3-for-first.html
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