Government still the biggest industry in Hawaii - New Mexico Business Weekly:

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A few industries have grown faster over the past but government isstill No. 1 in the amount it contributezsto Hawaii’s economy, well ahead of real estate and even In fact, the economic footprint of state and local government in Hawaii expanded three times more than in the natioj as a whole, according to statistics recentlty released by the . The adjusted for inflation, show that government’s contribution to the Hawaik economy grewfrom $4.8 billion in 1998 to $6.6 billiob in 2008, a 36 percent increase. By government growth for the United Stateds duringthe 10-year period amounted to 12 percent. And Hawaii is growinbg more dependent on government to drivseits economy.
In 2008, government accounted for 24 percent of Hawaii’s $28 billion grosas domestic product — which is defined as the totall market value of goods and services producedc during a given period — up from 22 percent in according to the data, adjusted for inflation by the Economid Research Organization. Not only is government Hawaii’s biggestt industry but it’s the biggest with 125,000 workers. More than half of those, work for the statwe of Hawaii, according to the Department of Economic Developmentand Tourism’ss second quarter economic report.
That means the layoffs, furlougha and deep cuts to state government servicesa being planned will have a broader effecfton Hawaii’s economy than even layoffs in the touriskm industry. Private industry GDP peake in Hawaiiin 2006, but government grew steadilg every year during the decade, excep t for a slight blip from 2000 to and grew another 3 percent from 2007 to 2008, even when most privatre industries were beginning to scale back. Total government jobs grew by 11 percenty in Hawaii during the with state jobs growingt by14 percent.
Total jobs in Hawaii grew by 16 percengt duringthe decade, but fell by 4 percent during the first quarter of 2009, compared to the firstg quarter of last year, accordint to DBEDT. In private industry, construction outpaced all othet sectors in growth in Hawaii over the last 10 followed by real estates and professional andtechnical services. Government was fourty in termsof growth. The numbers also reveal that the five largesrt sectors in Hawaii were unchanged from 1998 to with governmenton top, followed by real accommodation and food services, retail and healthn care. Of those only real estate and governmentt outpaced the United States in percentage growth forthe 10-yeaf period.
Construction grew by 61 percent over the just as the industry experienceda 20.5 percenrt decline nationally. The decade coincidedc with the latestconstruction cycle, notex University of Hawaii economist Carl Bonham, UHERO’s director. “What you have in the constructionb sectorfrom ’98 to 2008, it’sz almost exactly the bottom of construction jobs to the Bonham said. After slipping from $977 million GDP in 1998 to $955 million in 1999, construction began a steadyg climbin 2000, starting with $1 billio n in GDP, and peaking in 2006 at more than $1.7 billiob before backing down to just unde $1.
6 billion in 2008, according to the Construction is likely to drop further this and even more in 2010 and according to UHERO’s latest statewide forecast.