State population growth seen in 2006 will do little to loosen the tightest labor market in the nation, economists said yesterday. The U.S. census bureau estimated the state’s population inched up 1 percent to $1.285 million in 2006. Unemployment in
State population growth seen in 2006 will do little to loosen the tightest labor market in the nation, economists said yesterday.
The U.S. census bureau estimated the state’s population inched up 1 percent to $1.285 million in 2006.
Unemployment in the state reached 2.7 percent for the year through October according to the Department of Business, Economic Development and Tourism, well below the national average of 4.5 percent, estimated by the Bureau of Labor Statistics.
And while unemployment fell slightly, the number of wage and salary jobs grew 2.7 percent through October � creating an economy ripe for new job seekers.
“Hawai�i is in the expansion cycle,” said Eugene Tian, research statistics officer with the state Department of Business, Economic Development and Tourism. “A 1 percent increase is not enough. We need about 1.5 percent because businesses are having a hard time looking for people.”
On Kaua�i unemployment registered at 2.0 percent in October, according to the BLS, making it difficult for new business owners to attract staff.
New employers like Costco created 200 jobs on Kaua�i, competing with existing businesses for employees.
The tight market indicates economic growth, which likely will result in a greater influx of residents, said Pearl Imada Iboshi, who heads the research and economics analysis division of DBEDT.
“The economy tends to grow in cycles,” she said, “and population growth will follow.”
In the mid-90s, population growth fell below 1 percent, partly due to a slow economy, she said.
Growth does put some strain on infrastructure, including roads and waste management systems, she said.
The changing face of Hawai�i
Census Bureau data shows that Hawai�i continues to lose residents to the Mainland, but foreign immigrants and births more than make up for the loss.
The Census estimates that 3,136 Hawai�i residents moved away from the islands in the year prior to July 1, while about 6,720 people moved here from other countries.
In all, Hawai�i’s population increased by 12,220 people as its total population rose to 1,285,498.
“This has been happening in the last few years,” Tian said. “We lost people to the Mainland, but we gained more from the foreign countries in migration.”
Hawai�i is the 42nd most populous state, ahead of Rhode Island and trailing New Hampshire.
Nearly twice as many people were born than died in Hawai�i � 17,782 to 9,189 � resulting in a net increase of 8,593 people, according to the Census.
Many of the people who leave Hawai�i for the Mainland are in the military or move in search of a more affordable cost of living, Tian said.
The Philippines remains the largest source of immigrants to the state, and that trend is expected to continue because new U.S. citizens among the islands’ large Filipino population likely bring more family members to the islands in coming years, he said.
Nationwide, the population increased by 1 percent, or 2.8 million, to reach a total of 299,398,484 as of July 1, according to the Census. As of Friday, the U.S. population exceeded 300,449,000.
The Census also reported that Arizona is now the fastest-growing state in the nation, while Texas gained the most in population with 579,275 new residents.
Charlotte Woolard, business writer, can be reached at 245-3681 (ext. 251) or cwoolard@kauaipubco.com.
The Associated Press contributed to this article.
