Hawai'i on steady economic course
By DAVID BRISCOE
Associated Press
Another dose of strong economic forecasts is revealed in the new quarterly state figures on jobs, income and tourism, and the state's top economist sees years of island prosperity ahead.
The report also showed the first increase in bankruptcy filings in nearly four years. But state economists say it may be due more to planned changes in the law than anything else.
"We remain optimistic that Hawai'i's current economic performance can be sustained throughout the next few years," said Ted Liu, state economic and tourism development director.
With state unemployment at a national low of 2.9 percent at the end of the last quarter, 26,150 more people were employed in the state than in the same quarter a year earlier— the biggest year-to-year increase in 15 years.
The biggest increases in jobs came in professional and business services with 3,050 and in construction, with 2,900.
The Department of Business, Economic Development and Tourism's last quarterly report of the year includes 100 pages of upbeat statistics and forecasts.
It predicts a 3.5 percent growth in personal income for Hawai'i residents for the year, with total wage and salary jobs expected to grow by 2.7 percent.
The tourism industry is expected to show big gains, with 7.4 million visitors this year, up 6.5 percent from 2004, which was also a very strong year. Visitor spending is predicted to reach $11.6 million in 2005, up 6.5 percent from last year.
While the pace of growth is expected to slow down, projections put personal income growth at 2.8 percent next year, 2.6 percent in 2007 and 2.5 percent in 2008.
Total job growth is expected to level off at between 1.5 percent and 1.2 percent per year after this year.