Hawaii’s labor market
continues to rank among the best
in the country.
The state’s seasonally adjusted rate plunged three-tenths of a point to 2.2% in November from September and now has fallen by a half-percentage point over the last three reporting periods, according to data released Tuesday from the state Department of Business, Economic Development and Tourism.
There was no unemployment data for October due to the federal government shutdown.
The 2.2% rate maintained Hawaii’s ranking as the second lowest in the country, according to state data released Wednesday — a day later — by the U.S. Bureau of Labor Statistics.
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Only South Dakota was lower in November at 2.1%.
The last time Hawaii’s rate dropped below 2.2% was in March 2020 when it hit 2.1% just before the pandemic started.
Hawaii’s low number caught Eugene Tian, DBEDT’s former state chief economist, by surprise.
“I was surprised to see the unemployment rate dropped to 2.2% in November,” said Tian, who retired at the end of May. “It is close to the historical low of 2.0% Hawaii experienced during the last four months of 2017. Hawaii ranks as one of the best labor markets in the nation.”
Hawaii’s rate has dropped from 2.7% in August to 2.5% in September to 2.2% in November.
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Nationally, the U.S. unemployment rate was 4.6% in November, up by two-tenths of a point from September.
Tian said Hawaii’s unemployment rate fell sharply mainly due to a large increase in the number of people employed. Between September and November, the state’s labor force jumped by 1,000, or 0.15%, but the number of people employed increased by 2,800, or 0.42%.
“The faster increase in employment, with a slower increase in the labor force, made the unemployment rate low,” Tian said. “The increase in employment was due to the increase in payroll jobs (1,700 between September and November) and self-employment at 1,100.”
The state’s labor force, which is compiled from a telephone survey of households, edged up in November to 688,000 from 687,000 in September. The labor force includes those who are employed, those who are unemployed but actively seeking work and those who are self-employed. The number of people employed rose to 672,650 from 669,850 while those unemployed fell to 15,350 from 17,200.
In a separate survey, an increase in nonfarm payroll jobs in November from September was mainly driven by a 1,000 increase in construction jobs and a 1,000 gain in professional and business services.
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Nonfarm payroll jobs are calculated from a mail survey of employers and are considered a better indicator of job growth due to a larger sample size than the labor force data, which is compiled from a telephone survey of households. In the payroll count, one person might be counted multiple times if that person has multiple jobs.
Tian said construction jobs continued their ascent in 2025 with the November number at a historical high of 42,000, while the values of completed construction, as measured by the contracting tax base, decreased every month between May and September 2025 (the latest data available is September), and the value of private building permits issued decreased every month between August and November 2025 (latest data available is November).
Tian said Hawaii’s unemployment numbers could rise in March when the Bureau of Labor Statistics benchmarks data of the previous year based on complete survey data. He noted that monthly data is based on sample data.
“Due to sampling errors for the monthly data, it is possible that the labor statistics may overstate the current conditions and the corrections will be released in March this year,” he said. “The lagging effect of new hires and activities may also contribute to the distortion of the labor statistics. I expect the unemployment rates will be adjusted toward higher levels when the numbers are benchmarked in March.”
Tian said if more people join the labor force, the state’s unemployment rate will rise when the number of employed people stabilizes.
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“In the last few months, the labor force participation rate was stable at 60.4% (August-November),” he said. “Hawaii’s current labor force participation rate is lower than the U.S. at 62.5% (November 2025) and lower than the Hawaii monthly average of 61.1% in 2019. If labor force participation goes higher, the unemployment rate is likely to rise.”
While the state’s seasonally adjusted unemployment rate fell, all of the state’s four major counties saw increases. State and national labor force data are adjusted for seasonal factors, but the county jobs data are not seasonally adjusted and thus do not take into account variations such as the winter holiday and summer vacation seasons.
Honolulu County’s rate rose to 2.3% from 2.2%. Hawaii County’s rate increased to 2.7% from 2.5%. Kauai County’s rate rose to 2.3% from 2.2%. And Maui County’s rate increased to 2.6% from 2.5%. Within Maui County, Maui island’s rate rose to 2.6% from 2.3%, Molokai’s rate fell to 4.0% from 5.9% and Lanai’s rate dropped to 1.1% from 2.2%.
Authorities in Hawaii have charged a 36-year-old man with murder in the killings of three people in a remote community known for its eclectic, communal lifestyle.
Jacob Daniel Baker was charged with counts of first- and second-degree murder Saturday, the Hawaii Police Department said in a news release.
Baker remained jailed without bond Sunday and police said his first court appearance was scheduled for Monday. It was not immediately known if Baker had an attorney who could speak for him.
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Charges in the killings came two days after police apprehended Baker following a manhunt on Hawaii’s Big Island, where the three victims were found in the rural Puna community known for its tropical landscape and free-spirited residents.
Robert Shine, 69, was found dead Monday partially submerged in a cement pond, according to police. The second victim, a 79-year-old man, was discovered Tuesday a few hundred feet away. Friends identified him as Chitta Morse.
Police found the third victim, 69-year-old John Carse, late Tuesday at a property 19 miles from where the other two bodies were located.
Police have not given a suspected motive for the killings. Hawaii Police Chief Reed Mahuna has said investigators found no connections among the victims other than that two of them lived near each other.
In addition to the murder charges, Baker also faces counts of burglary, auto theft and criminal damage to property.
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The killings left residents on edge in Puna, a community set amid lush jungle and barren lava fields where people seeking to live off-grid commonly trade work for lodging.
Puna resident Stephen Shaffer said that Baker had worked for his ex-wife, climbing coconut trees on land where she grows fruit, in exchange for a place to live. After several months, Shaffer said, his ex-wife sought a restraining order against Baker, saying she felt threatened by him.
Donald Hyatt, a friend of Shaffer’s ex-wife and of two of the men killed, said Baker left the cabin where he had been living months ago. Hyatt said that Baker recently returned claiming “squatter’s rights” and threatened Shaffer’s ex.
Just days before the killings, two women had requested temporary restraining orders against Baker, saying he had threatened and harassed them, according to court records. A judge denied both applications, saying there was not enough proof of harassment.
Court records showed Baker named in 20 other cases in the past two decades, many of them traffic infractions. In most of those cases, Baker had no attorney and represented himself.
Hawaii is home to a wide range of towns that give older adults relaxing ways to enjoy their retirement years. Across the islands, retirees can find communities with easy access to healthcare and outdoor recreation. Coastal towns like Kailua-Kona and Līhuʻe offer ocean views and nearby medical care. Inland communities such as Waimea and Makawao provide cooler weather and an easier rhythm. Retirees may be drawn to smaller places with a strong community feel, while those wanting more services may prefer regional hubs like Hilo. Together, these Hawaiian towns offer a mix of natural beauty and everyday comforts.
Kailua-Kona
Keauhou Bay, Kailua-Kona, Hawaii.
Kailua-Kona is a coastal town on the Big Island of Hawaii with fewer than 25,000 residents. It continues to attract retirees thanks to its warm weather and ocean access. Areas like Kealakehe and Holualoa are still growing, with new subdivisions adding more housing options for people who want to stay long-term.
Most medical care is provided by the nearby Kona Community Hospital, and clinics throughout the Kona district offer additional services. Some of the main landmarks are Kailua Pier, Huliheʻe Palace, Kamakahonu Beach, and Kona Commons Shopping Center. These spots help residents stay active year-round.
Hilo
Overlooking Hilo, Hawaii.
Hilo is a well-known retirement-friendly community on Hawaii Island, known for being easy to walk around. With about 48,000 residents, according to recent Census data, Hilo is a regional center for healthcare, education, and government services, which helps create long-term stability for residents.
Hilo Benioff Medical Center is the main hospital for East Hawaii and provides most of the area’s healthcare. There are also outpatient and senior care services, such as the nearby Life Care Center of Hilo.
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People in Hilo often spend time at places like Wailoa River State Recreation Area, Hilo Farmers Market, Liliʻuokalani Gardens, and Rainbow Falls. These spots are close to neighborhoods like Waiākea and Keaukaha.
Waimea
Rolling green pastureland with white fences near Waimea, Hawaii’s Big Island.
Waimea is a small inland town on Hawaii Island with fewer than 10,000 residents. Because it sits at a higher elevation, the weather is cooler, with daytime temperatures usually between 70 and 80°F and nights that feel much cooler.
Residents have access to healthcare through local clinics and services linked to Queen’s North Hawai’i Community Hospital in Waimea, which provides essential care for the area. The town has strong connections to Parker Ranch, one of the country’s largest ranches, as well as nearby ranchlands. Waimea attracts retirees who want a quieter inland setting, strong community organizations, and fewer people.
Līhuʻe
A couple walks along Kalapaki Beach in Lihue, Kaua’i, Hawai’i.
Līhuʻe serves as Kauai’s administrative and service center and has fewer than 10,000 residents. The town plays a central role in healthcare and government operations across the island. It is just 30 minutes from Hanapepe and offers retirees a small-town feel, with natural scenery all around.
Wilcox Medical Center is the largest hospital on the island and provides care for residents throughout Kauai. Notable landmarks include Kalapaki Beach, Nawiliwili Harbor, Kauai Museum, and Kilohana Plantation. Together, these sites support recreation, tourism, and community events across the area.
Kapa’a
Shops in downtown Kapa’a in Hawaii. Image credit bluestork via Shutterstock.com
Kapaʻa sits on the east side of Kauai and has about 11,000 residents. It is easy to get around on foot, with everything you could need close by. The town serves as both a place to live and a hub for businesses in the area.
Residents can access healthcare at local clinics such as The Clinic at Kapaa or at Wilcox Medical Center in Līhuʻe. Some well-known spots in Kapaʻa are Kapaʻa Beach Park, the Sleeping Giant Trail, Coconut Marketplace, and Wailua River State Park. Coconut Marketplace has a Farmer’s Market twice a week, plus live local music. Hula classes and shows are also a local favorite offered at Coconut Marketplace.
Kailua
Overlooking Kailua, Oahu.
Kailua is a residential area on the windward side of Oahu with fewer than 50,000 residents. The town is known for its easy access to beaches and well-established neighborhoods such as Enchanted Lake and Coconut Grove.
Residents have access to healthcare through nearby hospitals in the Honolulu area. Adventist Health Castle, which is located in Kailua, is one of the main options. In addition, Kalapawai Market is a local favorite to grab coffee, ube scones, and other treats.
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Kailua is home to many beaches for swimming and watersports, including Kailua Beach Park. Lanikai Beach is a public beach within a residential neighborhood, with no lifeguards, restrooms, or public parking lot. For walking and biking, Kawainui Marsh Wildlife Sanctuary is a popular dog-friendly wildlife sanctuary with a scenic trail.
Haleʻiwa
Aerial view of Haleiwa, Hawaii.
Hale’iwa is known for its slower pace and strong connection to Oahu’s North Shore coastline. This historic North Shore town is said to be the quirkiest and has a population of under 5,000. It maintains a small commercial core while serving nearby rural communities.
Healthcare is available through clinics in Waialua and through The Queen’s Medical Center – Wahiawā in central Oahu.
Notable landmarks in Haleʻiwa include Haleʻiwa Beach Park, a popular spot for fishing and sunset views, and Waimea Bay, known for its large winter surf and summer swimming conditions. The nearby Banzai Pipeline draws surfers from around the world during big-wave season on Oahu’s North Shore. Residents also spend time at Haleʻiwa Aliʻi Beach Park, which has picnic areas and shoreline walking paths.
Wahiawa
Waikele Premium Outlets in Honolulu County, near Wahiawa, Hawaii. Image credit ARTYOORAN via Shutterstock.com
Wahiawa is a central Oahu community with a population of roughly 17,000. It sits between the island’s north and south regions, and provides a quieter inland setting while still allowing access to both Oahu’s north and south coasts.
Healthcare in Wahiawa is available through in-town facilities, such as The Queen’s Medical Center – Wahiawā.
Local landmarks include Lake Wilson, where residents fish and kayak, and the Wahiawa Botanical Garden, known for its large tropical trees and walking paths. Nearby Schofield Barracks remains one of the largest military installations in Hawaii and shapes much of the area’s economy. Residents also rely on Whitmore Village for local businesses, neighborhood services, and access to agricultural areas outside town.
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Makawao
The town of Makawao sits on the slope of the Haleakala volcano in Maui.
Makawao is a small town in upcountry Maui with fewer than 10,000 residents. Its higher elevation gives the area cooler temperatures than much of coastal Maui, especially during the evenings.
Makawao maintains a rural atmosphere while still keeping residents close to shopping and healthcare in nearby Kahului and central Maui for routine and specialized care.
Residents enjoy art galleries, and nearby access routes to Haleakalā National Park, which draw both residents and visitors into Maui’s upland landscapes. The community also gathers around Oskie Rice Event Center, which hosts rodeos and local events throughout the year, while Pukalani Country Club provides golf and recreation with views of central Maui.
Pāhoa
Downtown Pahoa, Hawaii. Image credit Chris Allan via Shutterstock
Pāhoa is a small town on Hawaii Island with fewer than 1,000 residents. The community has a slower pace of life and a strong local character shaped by East Hawaii’s volcanic landscape. Residents access healthcare through clinics in nearby Hilo and facilities connected to Hawaiʻi Health Systems Corporation in East Hawaii.
Local landmarks include Lava Tree State Monument, where lava formations surround walking paths through tropical forest, and the historic downtown which still contains several older storefronts and small local businesses such as Tin Shack Bakery. Nearby Pohoiki Black Sand Beach has become a popular coastal gathering area following recent volcanic activity, while the former Ahalanui Park site (destroyed by the Kīlauea lava flow in 2018) remains an important part of the region’s history and shoreline identity.
Honoka’a
Overlooking Honoka’a, Hawaii.
Honokaʻa is a small plantation-era town on the Big Island of Hawaii. With fewer than 3,000 residents, its historic main street reflects its sugar industry past with preserved storefronts and a compact town center that still serves the surrounding Hamakua Coast communities.
Residents access healthcare through Queen’s North Hawai’i Community Hospital in nearby Waimea, which provides essential services for the region.
Along the main corridor, residents frequent shops such as Tex Drive-In, known for its malasadas, and Cafe Il Mondo, a long-running local café. The nearby Kalōpā State Recreation Area offers forest trails and native vegetation, while the Hamakua Coast provides scenic coastal drives with waterfalls and ocean views. Routes toward Akaka Falls connect the town to one of the island’s most visited natural landmarks.
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Hawaii Retirement Across the Islands
Retirement spots in Hawaii are found across the islands, each with its own pace of life. Towns like Kailua-Kona and Līhuʻe keep residents close to healthcare, services, and coastal scenery, while places such as Waimea, Makawao, and Honokaʻa offer quieter inland settings with strong local character. Others, including Hilo, Kapaʻa, and Haleʻiwa, balance everyday conveniences with beaches, parks, markets, and community gathering places. As people in Hawaii look for more space, fewer crowds, and reliable access to care, these towns show how varied retirement living can be across the state.
HONOLULU (HawaiiNewsNow) – A new optical illusion is taking shape in Kalihi.
Commissioned by Kamehameha Schools, the mural will feature plants and trees native to the area. The artwork aims to highlight how forestry can exist within urban areas.
Coincidentally, the new artwork sits adjacent to one of Kalihi’s most famous murals: Wave 01/101.
The artist Kai’ili Kaulukukui plays with depth and shadow, creating an optical illusion on the flat face of a building.
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“The painting style is called ” trompe-l’œil”, it means ‘trick the eye’,” says Kaulukukui. “It’s been around for 2000 years. They have images of trompe-l’œil style murals at Pompeii, so it’s a very old style.”
Kaulukukui said he’s always been intrigued by the art style, though this is his first time painting it.
“They’re both kind of environmental themed murals,” he said. “This is bringing an image of what a forest could look like in the city. That is like an homage to Pipeline and our beautiful waves that we have here.”
The 55-foot-tall mural is expected to be completed by Sunday, May 31.
After this project, Kaulukukui will start an ocean-themed mural just one street over, bringing a bit more nature into urban Honolulu.
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