Economy and business
Pay went up. Hawaiʻi’s economy kept going.
What a raise puts into paychecks, and what the economy has done since the raises began.
A raise to $30, statewide
What a living wage puts into Hawaiʻi paychecks
About $4 billionmore a year in Hawaiʻi paychecks.Our estimate · range $3.7–5.2 billion
About 335,000jobs would get a raise. That’s about half of all jobs in Hawaiʻi.Our estimate
About $4.3 billionis what it would cost employers each year, including payroll taxes. We count the cost too.Our estimate
Sources: LWH Raise Estimate Method Memo (Nov 2026), BLS wage data (May 2025)
Sources +
Our estimate of raising every Hawaiʻi job paid under $30 an hour to $30, starting from the $18 minimum: BLS Occupational Employment and Wage Statistics for 22 job groups (May 2025), carried forward 7% to 2027, at 1,500 hours a year because many low-wage jobs are part time. No ripple raises for jobs already above $30. Added pay $3.95 billion (range $3.67–5.16 billion), about 335,000 jobs, 53% of all jobs. Employer cost adds about 8% for payroll taxes; it leaves out ripple raises, workers’ comp, unemployment insurance, TDI and health coverage. This is the size of the pay change, not a net gain to the economy. Full tables on the data page.
The state’s own study
Hawaiʻi’s economists found past raises lifted pay with little effect on jobs.
“…prior minimum wage increases had little impact on employment outcomes while generally increasing income and wages.”
DBEDT, The Minimum Wage in Hawaiʻi: 2025 Update, p. iii
“Employment increased during the pre-pandemic period of minimum wage increases but slightly decreased in the post-pandemic period. This trend in employment is more pronounced at the state level and for Maui. It is unclear to what extent lower Food Services and Drinking Places employment in the post-pandemic period is due to minimum wage increases vs. tourism’s continuing recovery from the COVID-19 pandemic and the Maui wildfires.”
Same report, same page
Source: Hawaiʻi DBEDT, The Minimum Wage in Hawaiʻi: 2025 Update (Aug 2025), Executive Summary
Since the raises began, low-wage industries kept adding jobs.
Jobs in Hawaiʻi’s 10 lowest-paying industries.
early 2026
Source · BLS Quarterly Census of Employment and Wages, Jan–Mar 2022 vs 2026
Sources
BLS Quarterly Census of Employment and Wages, Hawaiʻi private jobs, average for January–March 2022 and January–March 2026. The 10 lowest-paying industries (food service, retail, child care and others, ranked by early-2022 weekly pay; about a quarter of private jobs) went from 124,330 to 133,679 jobs: +9,349, up 7.5% (our calculation from the BLS files). Over these years Hawaiʻi’s minimum wage rose from $10.10 to $16, and it reaches $18 in 2028. Jobs and raises happened together; this does not show that one caused the other. In early 2022, Hawaiʻi jobs were still recovering from the 2020 shutdown.
Minimum wage: Hawaiʻi DLIR.
Updated Nov 11, 2026.
Pay rose faster than prices. Let’s finish the job.
Since the raises began, our minimum wage rose 58%. Prices rose about as fast here as nationally (+21% vs +20%).
Jan 2022 to Sept 2026 · Hawaiʻi DLIR · BLS consumer prices, Urban Hawaiʻi and U.S. · our calculation
Sources
Minimum wage: Hawaiʻi DLIR and Act 114 (2022): $10.10 in Jan 2022, $12 on Oct 1, 2022, $14 on Jan 1, 2024, $16 on Jan 1, 2026. $16 ÷ $10.10 = 1.584, up 58%.
Prices: U.S. Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers (CPI-U), all items, not seasonally adjusted. Urban Hawaiʻi (CUURS49FSA0, every two months): January 2022 = 304.988; September 2026 = 368.586. 368.586 ÷ 304.988 = 1.209, up 21%. U.S. city average (CUUR0000SA0, monthly): January 2022 = 281.148; September 2026 = 336.940. 336.940 ÷ 281.148 = 1.198, up 20%. October 2025 was not published (federal shutdown), so the U.S. line skips that month.
$12 short: a living wage for working parents is about $30 an hour, our 2027 estimate from United For ALICE; $30 − $18 = $12 (our calculation).
This shows what happened to pay and prices over this period, not what caused it.
Updated Nov 11, 2026.
And still, $18 in 2028 leaves working parents $12 an hour short.
Business locations kept growing
Private business locations, yearly average · BLS QCEW · our calculation
Sources
Minimum wage: Hawaiʻi DLIR ($7.75 in 2015 rising to $10.10 in 2018, $12 on Oct 1, 2022, $14 on Jan 1, 2024, $16 on Jan 1, 2026).
U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages, private establishments, annual averages, leaving out “unclassified” accounts (NAICS 99). Hawaiʻi 44,903 (2022) → 49,668 (2025), up 10.6%. U.S. 10,869,579 → 11,564,013, up 6.4%. Since 2015: Hawaiʻi +34.8%, U.S. +28.1% (our calculation).
A location is a worksite with paid employees, not a company; one business with three shops counts three times. Hawaiʻi private jobs grew much less (2025 still 3% below 2019).
This shows what happened while the raises took effect, not what caused it.
Small businesses held steady as pay rose
Firms with 1–499 employees · U.S. Census Bureau, Business Dynamics Statistics
Sources
U.S. Census Bureau, Business Dynamics Statistics 2023 release, state by firm size (bds2023_st_fzc), Hawaiʻi, firms with 1–19 plus 20–499 employees, counted each March. 2018: 19,041 + 3,129 = 22,170. 2023: 19,260 + 2,868 = 22,128 (down 0.2%). These small firms employed 48.8% of Hawaiʻi’s private-sector workers in 2023 (our calculation).
2023 is the newest year; it does not yet show the $14 (2024) or $16 (2026) steps. The 2021 dip is COVID. Over the same years U.S. small employer firms grew 5.9%, so Hawaiʻi held steady while the U.S. grew. Counts businesses with paid employees only, not the self-employed.
Minimum wage: Hawaiʻi DLIR. This shows what happened while the raises took effect, not what caused it.
Worried about jobs?
Unemployment fell here, rose nationally.
Sept 2022 vs. Sept 2026, since the raises began.
The state’s own 2025 study (DBEDT) found past raises had “little impact on employment outcomes.” It saw a small post-pandemic dip in restaurant and bar jobs, cause unclear.
Source · BLS, seasonally adjusted. Sept 2026 is preliminary. DBEDT, 2025.
Sources
BLS Local Area Unemployment Statistics (Hawaiʻi, series LASST150000000000003) and Current Population Survey (U.S., LNS14000000), monthly, seasonally adjusted. September 2022 is the month before the minimum wage rose to $12; September 2026 is the latest month for Hawaiʻi. Hawaiʻi 3.3% → 2.8% (down 0.5 points). U.S. 3.5% → 4.2% (up 0.7 points). In between, Hawaiʻi fell to a low of 2.1% (August–September 2025) and has risen since; it was below the U.S. in all 48 months with data (no October 2025 figure, federal shutdown). Hawaiʻi’s September 2026 figure is preliminary, and BLS revises these numbers each spring. This shows what happened since the raises began, not what caused it.
DBEDT, The Minimum Wage in Hawaiʻi, 2025 Update (August 2025), executive summary, p. iii: its regressions “suggest that prior minimum wage increases had little impact on employment outcomes while generally increasing income and wages.” The same page says restaurant and bar (“Food Services and Drinking Places”) jobs in Honolulu “slightly decreased in the post-pandemic period,” more so statewide and on Maui, and that it is unclear how much is due to minimum wage increases versus tourism’s recovery from COVID-19 and the Maui wildfires.
Updated Nov 11, 2026.
Since the raises began, Hawaiʻi kept pace.
GDP per person, after inflation 2022 to mid-2026
Jobs at small workplaces (under 50 staff) March 2022 to 2026
BEA real GDP per person, 2017 dollars, through June 2026 (our estimate) · BLS QCEW, private jobs by workplace size
Sources
The U.S. was slightly ahead on both measures: GDP per person +7.0% vs +6.9% in Hawaiʻi, and small-workplace jobs +3.2% vs +3.0%.
GDP per person (our estimate): real GDP, millions of chained 2017 dollars, seasonally adjusted (BEA SQGDP1, released Sept 30, 2026; newest is Apr–Jun 2026), ÷ population. 2022 = average of 2022’s four quarters ÷ 2022 midyear population (BEA/Census). Latest = average of the four quarters Jul 2025–Jun 2026 ÷ population at Jan 1, 2026, which we estimate from Census July 2025 figures plus half of the past year’s change.
Hawaiʻi 87,871.8 ÷ 1,437,812 = $61,115 (2022); 93,535.1 ÷ 1,431,754 = $65,329, up 6.9%. U.S. 22,079,726 ÷ 333,996,304 = $66,108; 24,230,209.8 ÷ 342,675,387 = $70,709, up 7.0%. Other reasonable population choices give Hawaiʻi +6.8% to +7.0%, U.S. +6.7% to +7.2%.
Hawaiʻi’s population fell slightly, which lifts per-person numbers; the whole economy grew 6.4% (U.S. 9.7%). Growth has slowed lately: Apr–Jun 2026 was up 0.7% from a year earlier (U.S. up 2.2%).
Small workplaces: BLS Quarterly Census of Employment and Wages, first-quarter size-class data, private, workplaces with under 50 employees, March jobs. Hawaiʻi 249,204 (2022) → 256,722 (2026), up 3.0% (peak 257,880 in 2023). U.S. 56,115,199 → 57,903,375, up 3.2%. About half of Hawaiʻi’s private jobs (256,722 of 519,111 in 2026).
QCEW counts workplaces (each store or office), not companies, and sorts them by each March’s staff. Small workplaces with 5–49 staff: 15,257 → 15,528 (up 1.8%; U.S. up 2.6%).
Minimum wage (Hawaiʻi DLIR): $10.10 until $12 on Oct 1, 2022; $14 on Jan 1, 2024; $16 on Jan 1, 2026.
This shows what happened as the raises took effect, not what caused it.
Updated Nov 11, 2026.
Dozens of cities and states will have a higher minimum wage than Hawaiʻi.
Even counting their own prices. Hawaiʻi’s $18 minimum in 2028 buys only $16.37 worth.
Minimum wage in 2028, adjusted for local prices (our estimate)
More than HawaiʻiSource · State and city labor departments; BEA 2024 price levels; CBO inflation forecast. 2028 wages are our estimates except Portland, Santa Fe and Rhode Island (our calculation).
Sources
Each place’s minimum wage on Jan 1, 2028, the day Hawaiʻi reaches $18, divided by its 2024 price level (BEA Regional Price Parity, U.S. = 100; metro areas for cities, states for states). Where the wage rises with prices each year and the 2028 rate isn’t set yet, our estimate is the latest announced rate × 1.024, CBO’s forecast of 2027 inflation (Jan 2026, consumer prices, Q4 to Q4). Recent yearly raises in these places ran about 2.7–4.0%, so the estimates are likely low. Places that raise each July (D.C., Chicago, Los Angeles, San Francisco) raise again in July 2028. Yearly = the after-prices hourly figure × 2,080 hours (our calculation).
| Place | Wage, Jan 1, 2028 | ÷ Price level | = At U.S.-average prices | A year |
|---|---|---|---|---|
| Seattle, WA$22.14 in 2027 × 1.024 (our estimate) | $22.67 | 111.133Seattle metro | $20.40 | $42,432 |
| Flagstaff, AZ$18.95 in 2027 × 1.024 (our estimate) | $19.40 | 100.325Flagstaff metro | $19.34 | $40,227 |
| Denver, CO$19.84 in 2027 × 1.024 (our estimate) | $20.32 | 105.782Denver metro | $19.21 | $39,957 |
| Mountain View, CA$20.25 in 2027 × 1.024 (our estimate) | $20.74 | 110.423San Jose metro | $18.78 | $39,062 |
| Portland, ME$19.00 set in law for Jan 1, 2028 | $19.00 | 101.858Portland, ME metro | $18.65 | $38,792 |
| Santa Fe, NM$17.50 from Jan 1, 2027; next change Mar 1, 2028 (kept) | $17.50 | 98.767Santa Fe metro | $17.72 | $36,858 |
| Boulder, CO$18.17 in 2027 × 1.024 (our estimate) | $18.61 | 105.202Boulder metro | $17.69 | $36,795 |
| San Francisco, CA$19.61 from Jul 1, 2026 × 1.024 = July 2027 rate (our estimate) | $20.08 | 115.613San Francisco metro | $17.37 | $36,130 |
| Connecticut$17.48 in 2027 × 1.024 (our estimate) | $17.90 | 103.610Connecticut | $17.28 | $35,942 |
| Washington, D.C.$18.40 from Jul 1, 2026 × 1.024 = July 2027 rate (our estimate) | $18.84 | 109.901D.C. | $17.14 | $35,651 |
| Washington State$17.73 in 2027 × 1.024 (our estimate) | $18.16 | 107.013Washington | $16.97 | $35,298 |
| Chicago, IL$17.05 from Jul 1, 2026 × 1.024 = July 2027 rate (our estimate) | $17.46 | 103.595Chicago metro | $16.85 | $35,048 |
| Minneapolis, MN$17.02 in 2027 × 1.024 (our estimate) | $17.43 | 104.822Minneapolis metro | $16.63 | $34,590 |
| Rhode Island$17.00 in 2027; no 2028 raise set (kept) | $17.00 | 102.280Rhode Island | $16.62 | $34,570 |
| Los Angeles, CA$18.42 from Jul 1, 2026 × 1.024 = July 2027 rate (our estimate) | $18.86 | 113.566Los Angeles metro | $16.61 | $34,549 |
| Hawaiʻi$18.00 set in law for Jan 1, 2028 | $18.00 | 109.951Hawaiʻi | $16.37 | $34,050 |
Also above $16.37, not shown: Edgewater, CO $20.79 · Burien, WA $20.72 · Tukwila, WA $20.69 · Renton, WA $20.52 · King County, WA (unincorporated) $19.88 · Everett, WA $19.83 · Bellingham, WA $19.55 · West Hollywood, CA $18.88 · Sunnyvale, CA $18.59 · Emeryville, CA $18.02 · San Jose, CA $17.62 · Boulder County, CO $16.97 · Montgomery County, MD $16.93.
“Dozens”: the 15 charted plus these 13 make 28 places we checked that clear $16.37, so at least two dozen. Most 2028 wages are our estimates (see above), and there are likely more places we did not check.
Close but below: Portland, OR metro $16.32 · California (state) $16.09 · Vermont $15.59 · New Jersey $15.51 · New York City area $15.47. Using Honolulu’s metro price level (110.961) instead of the state’s would put Hawaiʻi at $16.22.
Wages: Washington L&I; Seattle Office of Labor Standards; Denver Labor; City of Boulder; City of Santa Fe; Connecticut Governor; Rhode Island law H5029/S0125; D.C. DOES; City of Flagstaff (via AZFamily); Mountain View (via ADP); Portland, ME 2025 ballot measure (via Bloomberg Tax, Fisher Phillips); San Francisco, Los Angeles and Chicago July 2026 rates (via Littler, ABC7); Minneapolis (via FOX 9). Prices: BEA Regional Price Parities (MARPP and SARPP, 2024). Inflation: CBO, Jan 2026.
Updated Nov 11, 2026.
A living wage adds more than the aid and tax breaks shown.
Pick a new minimum wage. Hawaiʻi’s is set to reach $18 in 2028. Each year, before taxes.
New minimum wage
All low-wage workers and families in Hawaiʻi
$4.0B
added pay a year at $30 our estimate
More than half of all Hawaiʻi jobs get a raise.
Added pay$4.0B
Aid and tax breaks today$1.53B
Added pay is more than 2½ times the aid and tax breaks below.
Aid and tax breaks today
SNAP food aidStatewide, everyone who gets it, including retirees and people not working
$690M
Federal earned income creditStatewide, all working families who claim it
$200M
Child tax credit refundsStatewide, all families who claim them
$120M
Hawaiʻi creditsStatewide, everyone who claims them
$140M
2024 state tax cut, for these workersOnly jobs paid under $30, our estimate
$380M
This compares sizes only. It does not mean aid or tax cuts should be cut.
Source · Our estimate from BLS wages; USDA via KFF; IRS; Hawaiʻi DOTAX; our tax-cut calculation
Sources
Added pay, all low-wage workers. Our estimate, from the LWH Raise Estimate Method Memo (Nov 2026), re-run for each wage with the same kit and settings. Every Hawaiʻi job paid under the new minimum is raised to it, starting from the $18 minimum. BLS wages for 22 job groups (May 2025) carried forward 7% to 2027, at 1,500 hours a year because many low-wage jobs are part time. Low end: wages carried 10.5% to 2028. High end: May 2025 wages at 1,700 hours. Before taxes. No “ripple” raises for people just above the new minimum. It measures the size of the pay change, not a net gain to the economy.
• $18 → $25: $1.77 billion a year (range $1.60–2.40 billion), about 245,000 jobs (39% of 627,530); shown as $1.8B; ÷ $1,412.9 million = 1.25, “about 1¼ times”
• $18 → $28: $3.00 billion a year (range $2.76–3.97 billion), about 301,000 jobs (48% of 627,530); shown as $3.0B; ÷ $1,483.7 million = 2.02, “about 2 times”
• $18 → $30: $3.95 billion a year (range $3.67–5.16 billion), about 335,000 jobs (53% of 627,530); shown as $4.0B; ÷ $1,529.3 million = 2.58, “more than 2½ times”
Aid and tax breaks today (shown to the nearest $10 million; the total is the sum of the rounded rows, so it can be up to $10 million above the exact sum; ratios use exact sums). The first four rows are statewide totals for everyone who gets them, not only the workers who would get a raise. SNAP also goes to retirees, people with disabilities and people not working. The earned income credit and the refunded child tax credit need earnings, but some families who get them earn more than the picked wage. Hawaiʻi’s credits mix the earned income credit (workers) and the food/excise credit (any low-income filer). SNAP benefits in Hawaiʻi $686.96 million (USDA via KFF, fiscal year 2025). Federal earned income credit $200.7 million and refundable child tax credit (additional child tax credit) $117.1 million (IRS Statistics of Income, Historic Table 2, Hawaiʻi, tax year 2023). Hawaiʻi refundable earned income and food/excise credits $141.0 million (DOTAX, tax year 2023). These four rows stay the same at every wage because they are what exists today; we did not model how statewide SNAP and credits would shrink as pay rose.
2024 state tax cut, for these workers (our estimate). Only the part of Act 46 (Session Laws of Hawaiʻi 2024, as amended by Act 24 of 2026) that goes to the jobs paid under the picked wage. The whole cut is about $922.7 million in fiscal year 2028 for all taxpayers (Department of Taxation estimate, Council on Revenues report, May 26, 2026); we no longer show that figure, because most of it goes to people who would not get a raise. For each job under the picked wage we use the same wage curve, hours and wage aging as the added-pay estimate, and its 2028 pay at the $18 minimum (its wage, or $18 if lower, × 1,500 hours). We figure Hawaiʻi income tax on that pay under the law before Act 46 (tax year 2023: $2,200 standard deduction, 1.4% on the first $2,400, rising to 7.6% by $24,000) and under the 2028 law ($9,000 standard deduction, 1.4% up to $14,400, then 2.5% and 5% after Act 24), with one $1,144 personal exemption and no other income (Department of Taxation Announcements 2024-03 and 2026-06; Hawaiʻi Revised Statutes 235-51 before Act 46). The cut is the difference. Example: $27,000 of pay owed $1,329 before and $263 in 2028, a cut of $1,066. The wage data counts jobs, not people, so we take off 7.6% for second jobs (Hawaiʻi multiple jobholders as a share of the employed, 2024, State of Hawaiʻi Data Book Table 12.24, from BLS). Married sensitivity: the same pay as a couple’s only income, filing jointly ($4,400 → $18,000 standard deduction, two exemptions). It gives a smaller cut, because the old joint brackets already taxed low pay lightly. Range: low end = wages carried forward 10.5% and married filing; high end = May 2025 wages at 1,700 hours, single, nothing taken off for second jobs. This is pay before the raise; at the new wage the cut would be about 10–20% bigger. It is tax year 2028, next to fiscal-year and older figures in the other rows.
• Under $25 (245,031 jobs): single filers $289.1 million (about $1,180 a job), less 7.6% = $267.1 million, shown as $270M. Married sensitivity $201.6 million. Range $190–356 million. Aid total $1,412.9 million (shown $1.42 billion)
• Under $28 (300,696 jobs): single filers $365.8 million (about $1,216 a job), less 7.6% = $338.0 million, shown as $340M. Married sensitivity $272.5 million. Range $261–438 million. Aid total $1,483.7 million (shown $1.49 billion)
• Under $30 (335,062 jobs): single filers $415.0 million (about $1,239 a job), less 7.6% = $383.5 million, shown as $380M. Married sensitivity $322.8 million. Range $312–486 million. Aid total $1,529.3 million (shown $1.53 billion) Years are mixed because these are the latest published. Health coverage (Med-QUEST), TANF cash aid, WIC and school meals are left out.
How to read this page. These charts show what happened while the raises took effect, not what caused it. Where the U.S. did better, we say so. Every number has a source; the full tables and downloads are on the data page.
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