Hawaii Unemployment Edges Upward in September

The state unemployment rate reached 2.8 percent while Kauaʻi recorded a significant jump to 5.1 percent.

Updated on Oct. 20, 2026 in Employment

Isometric editorial illustration of a metal anchor chain on a volcanic landscape, representing the regional economic stability of the Hawaiian islands. — Hawaii's unemployment rate reached 2.8 percent in September 2026, driven by a sharp increase in joblessness on the island of Kauaʻi. AI Illustration. Upload story photo >

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Hawaii reported a statewide seasonally adjusted unemployment rate of 2.8 percent for September 2026, up slightly from 2.7 percent in August. Kauaʻi saw a more pronounced increase, with its unemployment rate rising from 2.5 percent to 5.1 percent during the same period.

Why it matters

The latest employment figures reflect shifting labor dynamics across the islands as seasonal job gains in leisure and hospitality attempt to offset losses in sectors like construction. Tracking these county-level fluctuations is essential for understanding regional economic stability across the state.

Hawaii recorded a total labor force of 694,900 individuals in September, while the national unemployment rate rose to 4.2 percent. The state added 400 nonfarm jobs over the past year, led by a gain of 1,000 in leisure and hospitality versus 700 lost in construction.

The players

Department of Business, Economic Development and Tourism

This is the state agency responsible for overseeing and reporting on the economic and employment statistics for Hawaii.

The details

Statewide job trends show a mixed environment where growth in the hospitality sector is currently balancing contractions in construction and government payrolls. While Kauaʻi experienced the highest unemployment rate in the state, other areas remained lower, with Honolulu reporting 3.0 percent, Maui County at 3.1 percent, and Hawaiʻi County at 3.5 percent.

September 2026 was the period covered by the latest unemployment data.
October 19, 2026, was when the state released these employment figures.

Macro View

This story follows the established pattern of Hawaii's tourism-dependent labor market cycles as documented by state economic reports. These shifts typically mirror historical seasonal variations in visitor spending and employment demand across the islands.

Residents should be aware that local job market conditions can vary significantly by county, particularly in construction and service sectors. Those navigating the current job market may find differing levels of opportunity depending on the region's reliance on tourism versus other industries.

The takeaway

Economic volatility in tourism-heavy regions like Kauaʻi can create localized challenges even when the state's overall unemployment remains relatively low. Readers should monitor regional industry growth trends to better understand their specific local job outlook.