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Hawai‘i's Economy Gradually Recovers Amid Job Growth

2/28/2026

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Story summary
  • The University of Hawai‘i Economic Research Organization (UHERO) reports Hawai‘i's economy is gradually recovering from a mild recession in its first-quarter 2026 forecast.
  • Payrolls rise as the tourism downturn and federal cuts reverse.
  • Tepid job and income growth is tied to low population trends.
  • Construction remains strong, adding jobs; tourism stabilizes.
  • Unemployment stays near 2.2%, inflation peaks above 3% before easing, and growth remains modest.