HONOLULU (KHON2) — Across the United States, the labor market is shifting; but in Hawai‘i, conditions improved in early 2025. This is according to the U.S. Bureau of Labor Statistics (BLS) Employment Situation Summary and the Hawaii Department of Business, Economic Developers & Tourism Research & Economic (DBEDT) Analysis for the state’s Labor Force & Jobs.
The national picture is less certain as the U.S. economy slows. More people are staying in jobs they do not like since they fear that if they leave, they will not find another.
According to the BLS, the unemployment rate stayed at 4.2% in May. It has remained between 4% and 4.2% for a full year. The number of unemployed people was 7.2 million, and that number did not change much.
In contrast, DBEDT reported that Hawai‘i’s unemployment rate in the first quarter of 2025 was 2.6%. That is down from the previous year’s 2.8%. Civilian employment rose by 12,100 people, while the number of unemployed dropped by 700.
Across the islands, job growth is up in both private and government sectors. But across the rest of the country, fewer people are working or trying to find work.
Five things to know if you’re holding onto a job you don’t want according to the reports:
1. More people across the U.S. are losing jobs quickly
According to the BLS, the number of people unemployed for fewer than five weeks increased by 264,000 in May. That group now totals 2.5 million. Job loss is happening faster, even as the total unemployment rate stays the same.
Many job seekers are worried that time is not on their side. A recent survey on Job Seeker Confidence found that nearly one-third of job seekers expect fewer jobs to be available six months from now.
That is the largest share since the survey began. Just 24.6% say they would wait for a better offer if one came along. This demonstrates that fear is shaping their decisions.
2. Hawai‘i’s job market added positions in key areas
In the first quarter of 2025, DBEDT reported that Hawai‘i added 11,600 jobs. Most came from health care and social assistance; food services and drinking places; “other” services; and arts, entertainment and recreation. These areas saw growth between 2.3% and 7.6%.
While job growth is promising, the fear of industry instability is still real for many. The survey found that nearly half of job seekers are thinking about switching industries because of trade and tariff concerns. Many said they are looking for more job security.
3. Wages are rising across the country
The BLS reported that average hourly earnings rose by 15 cents to $36.24 in May. Production and nonsupervisory employees earned $31.18 on average. This could help some workers, but it may not be enough to give others the confidence to quit.
Even though wages are going up, 60.1% of job seekers said they still feel financial pressure to take the first offer they get. That number is down from last year but still shows how money concerns are keeping people in jobs they may not want.
4. Part-time work is not always a choice
According to the BLS, 4.6 million people worked part time in May for economic reasons. They wanted full-time jobs but could not find them or had their hours reduced.
The survey found that job seekers feel unsure about where hiring is headed. While some reported an improvement in their financial situation, many said they are still feeling squeezed. Those in early or mid-career stages are more likely to feel pressure from changing trade policy and hiring slowdowns.
5. Federal jobs are disappearing even in Hawai‘i
The BLS reported that the federal government lost 22,000 jobs in May and has lost 59,000 since January. Hawai‘i followed that trend. DBEDT reported a loss of 400 federal jobs in the first quarter. But state and local government jobs in Hawai‘i rose, with the state adding 2,800 positions.
That loss of federal jobs is one reason people are anxious about the future. The survey showed that even as job seekers feel more confident about the present, their expectations for the medium term have fallen to the lowest level since mid-2023.
More than 30% believe there will be fewer jobs available later this year. Many are holding onto what they have, even if it is not what they want.
Click here for more information from the BLS report and here for the DBEDT report. Click here to read the full survey report.
Six million people not counted in the labor force still said they wanted a job, said the report. Of those, 1.6 million were marginally attached, meaning they had looked for work in the past year but not in the four weeks before the survey.
Amongst them, 381,000 were discouraged workers. That means these workers believed no jobs were available for them.
DBEDT reported a loss of 400 federal jobs in the first quarter. But state and local government jobs in Hawai‘i rose, with the state adding 2,800 positions.
Even with improvements in some places, fear keeps many people in place. Workers may see national instability and feel stuck in a job they hate but remain too unsure to leave.