Though 2021 started out with optimism when it comes to getting the country back on track following the coronavirus pandemic, the progress, in Hawaii at least, has been slow to say the least.
The state saw minor improvements following the worsening of the pandemic last year but has once again hit a period of stagnation and lack of growth in the job market.
“[Hawaii's job market] has likely seen the end of significant improvement in the labor market for the next several months," Carl Bonham, executive director of the University of Hawaii Economic Research Organization (UHERO), said.
Bonham referred to UHERO's economic pulse index, which is a set of statistics and data designed to predict movements in job markets. To date, the UHERO economic pulse of Hawaii is 42, measuring since Jan. 16. This means that the job market in Hawaii has recovered about 42% since the lows that it experienced at the hands of the pandemic and related shutdowns. It has shown no meaningful growth since at least October.
For Hawaii, it is likely that the main contributor to this stagnation is the lack of interest in tourism, which is Hawaii's largest source of income and revenue. The demand for travel to Hawaii has not returned in the way that some had hoped, which limits the upside of the economy of the state.
However, this is not entirely due to a lack of interest. Plenty of government regulations and strict requirements have discouraged travelers from even trying, opting for more simple trips and vacations, instead. With the country unable to get control of COVID-19, it is not likely that these restrictions are going to be repealed any time soon. Efforts to provide for safe travel through the Safe Travels program have provided some sense of security, but have not generated the interest that officials thought it would, mainly because there are still quarantines required upon travelers' return home.
The effects of drastically slowed tourism are being felt in every facet of the Hawaiian economy.
“What we need is a plan to bring tourism back safely. If it’s just locals, it will keep you floating for a while, but you aren’t making the funds that you need to sustain your business," Restaurant owner Ernie Kanekoa said.
Kanekoa and his partner Caroly Fredrickson regrettably had to close their restaurant due to a lack of revenue. Unless something changes in the near future, more restaurants and businesses are expected to close in the coming months as a result of the hardship caused by the pandemic.