HONOLULU (KHON2) -- Hawaii’s economic landscape is characterized by contrasting conditions, according to the latest report from the University of Hawaii Economic Research Organization (UHERO). Get Hawaii's latest morning news delivered to your inbox, sign up for News 2 You While the overall state economy continues to benefit from tourism growth, Maui is facing a slow recovery following the recent wildfires. Statewide tourism figures have seen a slight decline from last year, although Oahu experienced a summer surge that provided a boost. In contrast, Maui's recovery has faltered, with hotel occupancy rates decreasing and the local labor force shrinking by 5%, equating to about 4,200 workers. Housing remains a critical issue, particularly on Maui, where full rebuilding efforts will take years and rental prices have surged. Aloha Festivals to celebrate 70th Annual Waikiki Hoolaulea "Statewide, you know, we have this drag that's being impacted by Maui. But really, the the fundamentals and the economic performance for Oahu, Kauai, Big Island, has been surprisingly strong. And so that kind of creates some optimism for the recovery scenario, because there, you know, Maui will recover, and there's actually some signs that it's, you know, we're beginning to see a little bit better activity associated with tourism in the in the late summer in Maui, and we're kind of hopeful for the fall," said Carl Bonham of UHERO. However, construction activity across the state is expected to remain robust, fueled by rebuilding efforts on Maui, new housing projects, and significant federal initiatives. The report highlights a slowdown in job growth since mid-2023, which is easing the tight labor market but still leaving some businesses struggling to fill positions. Despite these challenges, real income for residents is projected to increase by 1.4% this year, with a modest gain anticipated next year. Download the free KHON2 app for iOS or Android to stay informed on the latest news Looking forward, the forecast indicates potential long-term growth challenges due to population shifts and the pressing need for an influx of new residents to satisfy workforce demands.