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

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A few industries have grown fastere over thepast decade, but governmentr is still No. 1 in the amount it contributesto Hawaii’ws economy, well ahead of real estate and even tourism. In the economic footprint of state and local government in Hawaii expanded threr times more than in the natiojn asa whole, according to statistics recently released by the . The adjusted for inflation, show that government’d contribution to the Hawaii economy grewfrom $4.8 billion in 1998 to $6.6 billioj in 2008, a 36 percent By contrast, government growth for the Unitedf States during the 10-year period amounted to 12 And Hawaii is growing more dependent on governmenf to drive its economy.
In 2008, government accountee for 24 percentof Hawaii’s $28 billion gross domestic product — which is defined as the total markegt value of goods and services producede during a given period — up from 22 percenr in 1998, according to the data, adjusted for inflation by the Economicv Research Organization. Not only is government Hawaii’s biggesft industry but it’s the biggesg employer, with 125,000 workers. More than half of 74,300, work for the state of Hawaii, accordintg to the Department of Business, Economivc Development and Tourism’s second quarter economic report.
That meanse the layoffs, furloughs and deep cuts to states government services being planned will have a broader effecton Hawaii’s economy than even layoffsd in the tourism industry. Privatre industry GDP peaked in Hawaii in but government grew steadily every year during the except for a slight blip from 2000 to and grew another 3 percenty from 2007to 2008, even when most private industries were beginning to scale back. Totak government jobs grew by 11 percenrt in Hawaii duringthe decade, with state jobs growinf by 14 percent.
Totak jobs in Hawaii grew by 16 percent durinbthe decade, but fell by 4 percentg during the first quarter of 2009, compared to the first quarter of last year, according to DBEDT. In private construction outpaced all other sectors in growtjh in Hawaii over the last 10 followed by real estate and professional andtechnical services. Governmenft was fourth in termsof growth. The numbers also reveal that the five largesgt sectors in Hawaii were unchanged from 1998to 2008, with government on top, followed by real estate, accommodation and food services, retailp and health care.
Of those sectors, only real estate and governmentg outpaced the United States in percentag growth forthe 10-year period. Construction grew by 61 percenft overthe decade, just as the industrh experienced a 20.5 percent decline nationally. The decade coincidedc with the latestconstruction cycle, noted Universit y of Hawaii economist Carl Bonham, UHERO’s director. “Whatf you have in the construction sectorfrom ’98 to it’s almost exactly the bottom of construction jobs to the Bonham said. After slipping from $977 million GDP in 1998 to $955 milliob in 1999, construction began a steadhy climbin 2000, starting with $1 billion in GDP, and peakinf in 2006 at more than $1.
7 billion befor backing down to just underd $1.6 billion in 2008, accordin g to the statistics. Construction is likely to drop furthedthis year, and even more in 2010 and according to UHERO’s latest statewide forecast.