Labor Market Pulse · Human Resources · October 2026
Human Resources Labor Market Report: Honolulu, HI MSA — October 2026
Honolulu's jobless rate climbs as job creation stalls.
Honolulu unemployment hit 3.0% in September — a two-year high — as labor force growth outpaced job creation nearly 3-to-1, while HRIS Analyst advertised pay rose to $113,376, well above the $95,000 national figure.
Free archive edition. Published by WageScape as sent to subscribers; data as of October 2026.
Key indicators
- Honolulu unemployment rate: 3.0% — Up from 2.9% in August; two-year high
- Labor force vs. employment growth: 1.1% vs 0.4% — Year-over-year, Sept 2025–Sept 2026
- Hawaii minimum wage increase: $16.00/hr — +14.3% YoY; largest dollar hike of any state
- Statewide job growth 2026: 0.3% — Projected full-year, vs 1.1% labor force growth
Key takeaways
Honolulu's jobless rate rise reflects more job seekers entering the market.
Labor force grew 7,550 workers year-over-year while employment rose only 2,650 — consistent with workers re-entering the market under cost-of-living pressure. This expands the local candidate pool even as headline unemployment appears to worsen.
Aviation consolidation keeps generating recurring, predictable layoff waves.
Alaska Air Group's late-October cuts mark the sixth management reduction round since the Hawaiian Airlines merger, with 479 cumulative WARN notices issued to nonunion staff. HR leaders in adjacent sectors should anticipate periodic influxes of transportation and corporate-support talent through 2027.
HRIS and Benefits Manager pay gains point to rising total rewards complexity.
Both roles post significant local advertised pay increases — HRIS Analyst at $113,376 versus $95,000 nationally — suggesting Honolulu employers are paying a premium for technical compensation infrastructure even as broader hiring stays flat. This looks structural, tied to administering the state's $16 minimum wage and 2028 step to $18.
Wage floor increases are compressing bands below the HRIS and Benefits Manager tier.
Hawaii's minimum wage jump to $16 — the largest dollar increase of any state in 2026 — has already pushed through entry-level structures, and Payroll Specialist advertised pay is down locally even as HR Business Partner and Recruiter pay rise. Compression risk concentrates in coordinator and specialist-level roles that sit just above the floor.
Median advertised pay by role — Honolulu, HI MSA
| Role | 25th percentile | Median advertised pay | 75th percentile | Metro trend | National median |
|---|---|---|---|---|---|
| Compensation Analyst | $68,384 | $80,717 | $96,035 | Moderate decline | $100,798 |
| HR Business Partner | $60,000 | $77,396 | $85,000 | Significant increase | $83,900 |
| Benefits Manager | $97,500 | $127,296 | $131,029 | Significant increase | $118,618 |
| HRIS Analyst | $89,420 | $113,376 | $139,835 | Significant increase | $95,000 |
| HR Coordinator | $43,680 | $49,014 | $51,856 | Stable | $50,460 |
| Recruiter | $55,000 | $65,208 | $76,606 | Significant increase | $67,234 |
| Payroll Specialist | $50,304 | $60,000 | $65,250 | Moderate decline | $61,103 |
WageScape's median is calibrated to correct for spurious low-value postings (reported as the 60th percentile of raw advertised pay). Download: CSV · JSON
Local market conditions
Honolulu's unemployment rate climbed to 3.0% in September from 2.9% in August, the highest in two years, as labor force growth (up 1.1% year-over-year) outpaced employment gains of just 0.4% — a sign more residents are job-seeking amid cost-of-living pressure even as actual job creation stalls. Aviation sector contraction compounds the softening, with Alaska Air Group cutting roughly 40 Hawaii management positions in late October, the sixth round of merger-related layoffs since the Hawaiian Airlines combination, while construction shed 700 jobs even as leisure and hospitality added 1,000.
What it means
Rising labor force participation alongside flat job creation signals more qualified candidates are circulating locally, but employers in finance, insurance, and corporate aviation roles should plan for continued volatility in headcount planning. Advertised pay gains for Benefits Manager (+significant) and HRIS Analyst (+significant) roles suggest organizations are investing in total rewards infrastructure even as broader hiring cools — a sign compensation complexity is driving these hires. Consider reviewing which roles are experiencing compensation pressure independent of overall market softness, since sector-specific demand (healthcare, skilled trades) is diverging sharply from contracting sectors like aviation and finance.
Looking ahead
Early indicator: Watch whether aviation and finance-sector layoffs translate into measurable upticks in HR, compensation, and ops-support candidates applying for mid-market roles over the next 60 days. Six rounds of Alaska Air cuts since the merger suggest this is a recurring talent source.
Emerging pressure point: October's federal shutdown delayed release of county-level data; expect a catch-up data release that may reveal sharper deterioration than the September snapshot shows, particularly in Honolulu's unemployment trajectory.
Potential inflection point: Hawaii's labor force hit its highest level since June 2018 even as job creation stays near flat (0.3% projected 2026 growth). If this gap persists, expect intensifying downward pressure on advertised pay for lower-skill roles even as technical and specialized positions continue commanding premiums.
Worth watching: Healthcare and skilled trades (registered nurses, carpenters) remain top local job opportunities even as finance and retail contract. Workforce planning should weight sector-specific demand over metro-wide headline trends when setting 2027 hiring priorities.
Sources
- Hawaii Department of Labor and Industrial Relations / BLS — Honolulu unemployment rose to 3.0% in September from 2.9% in August
- Bureau of Labor Statistics — Labor force grew 1.1% while employment grew only 0.4% year-over-year
- Honolulu Star-Advertiser — Alaska Air Group cut ~40 Hawaii management positions in late October
- Hawaii DLIR / Tribune-Herald — Hawaii minimum wage rose to $16/hour, largest dollar increase among all states in 2026
- Hawaii Department of Business, Economic Development and Tourism — Statewide job growth projected at 0.3% for full 2026
- Hawaii Department of Labor and Industrial Relations — Hawaii labor force reached highest level since June 2018
Methodology
Advertised pay from active employer job postings, not survey data. WageScape's median is calibrated to correct for spurious low-value postings: distribution analysis shows roughly the lowest 10% of raw values are erroneous entries, so the reported median is the 60th percentile of raw advertised pay. WageScape observes 98% of U.S. job openings daily.
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