One of the biggest reasons for this is Government, and specifically Military, spending. As you can see, government spending in Hawaii is immense.

“The federal government spent $10,957 per resident here, making it the fifth-highest state in spending on a per capita basis.
The federal government plays an important role in Hawai’i’s economy,” said the report issued by DBEDT’s Research and Economic Analysis Division.
“From an income and job creation point of view, the federal government is the second-largest industry in Hawai’i, with tourism being the largest in the state.”

Of special note is the number of jobs that are created by this spending = 86,318. Keep in mind that many of these jobs are construction as the Military is currently expanding infrastructure on Oahu. Our friends at UHERO do not count these military construction jobs “because there are no building permits to track.” The military does not need building permits for construction on their own lands. Without building permits, the construction jobs created are not included in UHERO’s projections.

They use these projections to predict housing prices, among other things. You can draw your own conclusions about the accuracy of these projections.

Post from: Hawaii Real Estate Reporter

Another Reason Hawaii is Unique: Federal and Military Spending