The boom in construction jobs and the ongoing Maui wildfire recovery could help drive up the total income earned in Hawaiʻi.
That’s the view from the state Council on Revenues, which is forecasting 5% growth in total personal income in Hawaiʻi for both this year and 2025. Its new 2024 projection is up from the nearly 3.4% growth it forecasted last November.
A big part of the optimism has been the surge in construction jobs in the state. The state Department of Business, Economic Development and Tourism said that 3,800 jobs in natural resources, mining and construction were added in the state since June of last year — which was the most of any private sector industry.
“ The surge in construction jobs that we've seen really over the last six months. The numbers just shot through the roof. And we were forecasting really high construction numbers for a long time. And we were still kind of blown away by how much they jumped,” said economist and council member Carl Bonham.
There has been a loss of tourism and jobs since last year’s Maui wildfires, but as rebuilding takes place, incomes are expected to recover through 2025.
The council also noted other factors could impact incomes. They include unions deliberating hazard pay for workers during the COVID-19 pandemic and settlements following the Maui fires.
The possible ban of short-term rentals, most notably the County of Maui’s ongoing efforts to remove thousands of units from the so-called “Minatoya List,” could also affect incomes depending on the county legislation that gets passed.
DBEDT is less optimistic about the state’s TPI, forecasting it to grow by 3.8% this year.
