HONOLULU (KHON2) — While some states are seeing fewer people filing for unemployment, Hawaiʻi isn’t one of them.

A new report shows the state ranked near the bottom in the country for improvement. That means more people here are still losing their jobs or struggling to find new ones.

According to the study’s report released on April 3, Hawaiʻi ranked 40th out of 51 states and Washington, D.C. in its week-over-week change for unemployment claims.

That means claims actually increased in Hawaiʻi, while most other states saw fewer people applying for help.

Even worse, Hawaiʻi placed 43rd for unemployment claims per 100,000 workers, one of the highest in the country. Only eight states had more claims.

When compared to places like South Dakota or New Hampshire, which had the lowest number of claims per worker, the difference is clear. Those states had about 30–40 claims per 100,000 people in the labor force.

Hawaiʻi had 155.

1. A mixed message in long-term numbers

There is one bright spot: over the past year, Hawaiʻi has improved a little. From December 2024 to March 2025, the state had the 5th biggest decrease in unemployment claims compared to the same time the year before. So, even though last week was bad, things might be getting better over the long haul.

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Still, the improvement hasn’t been strong enough to make a big difference in people’s day-to-day lives. Hawaiʻi’s job market still faces big challenges.

2. What’s going on?

The report doesn’t explain why each state is doing better or worse, but it does offer some hints. For example, states with fewer job losses tend to have strong or diversified local economies, affordable living costs or more job options.

Hawaiʻi has unique challenges. High housing costs and a heavy reliance on tourism make the economy vulnerable and inflexible. When travel slows down or businesses cut back, local jobs are often the first to go. And even when jobs are available, not everyone can afford to live near them.

3. Why this matters

If unemployment claims stay high, it can mean more people are out of work, struggling to pay bills or take care of their families. It also means Hawaiʻi might not be recovering as quickly as other states.

You can click here to read the report and here for the U.S. Department of Labor.

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With 7.1 million Americans unemployed nationwide, the race to improve is important. And while Hawaiʻi did show some progress over the past year, it still has a long way to go to catch up to the best-performing states.

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