Hawaii’s worker shortage goes NUTS

Summary

The Indicator from Planet Money: “Hawaii’s worker shortage goes NUTS”

Date: January 29, 2026
Hosts: Robert Smith & Waylon Wong

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Episode Overview

This lighthearted yet incisive episode uses the occasion of the “Beige Awards”—The Indicator’s tongue-in-cheek celebration of the Federal Reserve’s Beige Book reports—to dig into an economic mystery in Hawaii. The state is experiencing both record-low unemployment and acute worker shortages—especially poignant in the macadamia nut and coffee harvests—even as other sectors such as tourism and construction are under strain. The conversation brings in perspectives from local experts and business owners, illuminating the complex forces behind Hawaii’s labor conundrum.

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Key Topics & Insights

1. The Beige Awards: Setting the Stage

• [03:13-04:05] The hosts humorously explain that each regional Federal Reserve Bank submits regional economic stories for the Beige Book, and The Indicator gives out “awards” for the best anecdotes.
• Minneapolis Fed is recognized as runner-up for quoting:

  “More businesses were [using] temporary or contract workers to stay flexible in uncertain times.”
  — Minneapolis Fed Beige Book [03:45]

• The main award (“The Beiji”) goes to the San Francisco Fed for their anecdote about Hawaii’s worker shortage affecting macadamia nut and coffee harvests.

2. Hawaii’s Labor Market Paradox

• [05:27-06:34]
  • Hawaii’s unemployment rate is exceptionally low at 2.2%, yet businesses across sectors are unable to find enough workers.
  • Carl Bonham, Executive Director of the University of Hawaii Economic Research Organization (UHERO), joins to explain:

  “When the economy starts adding jobs, workers aren’t going to suddenly jump on a plane and flood our markets. Right. It’s much more complicated. Labor’s not as mobile.”
  — Carl Bonham [05:54]

• Limited local labor mobility and geographic isolation make attracting out-of-state workers difficult.
• Raising wages is not always an option:

  “If our labor market was as tight as the unemployment rate suggests, you would certainly expect that wages would be going up faster than they are, and they’re not.”
  — Carl Bonham [06:24]

• Rising operating costs for businesses due to inflation, tariffs, and insurance premiums further challenge wage increases.
• Tourism numbers have rebounded, but visitor spending lags behind previous decades.

3. On the Ground: The Macadamia Nut Industry

• [07:18-08:41]
  • Interview with Jeff Clark, President of Hamakua Macadamia Nut Company.
  • Unique challenges:
    • Most macadamia trees are decades old and planted on steep volcanic slopes, making them impossible to harvest by machine.
    • Hand-picking is required, which is physically taxing labor.

  “Macadamia nuts, you actually get down on your knees and pick up nuts off the ground.”
  — Jeff Clark [07:58]

• Labor force relies on immigrant workers via legal visas, paid about $20/hour, with provided housing due to high real estate costs.
• Hawaiian producers face price competition from places with lower labor and land costs.

4. Industry Adaptation & The Future

• To survive, farms are beginning to replant macadamia trees on flatter land to eventually allow mechanized harvesting.

  “We cannot afford to hand harvest macadamia nuts anymore. We really need to move towards mechanization.”
  — Jeff Clark [09:06]

• Tree maturation and land preparation is a slow process—there is no quick solution.

5. Economic Realities with Hawaiian Flair

• [09:50-10:06]
  • Even in serious economic discussions, Hawaiian local culture is visible:

  “I notice, Carl, that even when we’re talking to the most serious economists in Hawaii, they still all wear the colorful Hawaiian shirts.”
  — Robert Smith [09:50]

  • Bonham notes it takes new faculty a while to adjust to Aloha Shirt culture.

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Notable Quotes & Memorable Moments

• On Hawaii’s isolation:

  “We’re all the way out here in the Pacific. When the economy starts adding jobs, workers aren't going to suddenly jump on a plane and flood our markets.”
  — Carl Bonham [05:54]

• On harvesting Mac Nuts:

  “If I kept saying macadamia all day, we don’t have time for all those syllables.”
  — Jeff Clark [07:25]

• Host banter:

  “Technically, we’re bringing your ears to Hawaii. Rest of your body not included.”
  — Robert Smith [01:23]

• On the difficult work of nut picking:

  “Hand harvesting nuts in the hot sun on your hands and knees has got to be one of the hardest jobs in Hawaii.”
  — Waylon Wong [08:30]

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Timestamps for Key Segments

• 00:12 – [Opening banter, Beige Book influencer jokes]
• 03:13 – [Beige Awards segment, explanation]
• 04:40 – [Carl Bonham/UHERO introduction]
• 05:27 – [Discussion of Hawaii’s labor market puzzle]
• 07:18 – [Interview with Jeff Clark, Macadamia Nut company]
• 09:06 – [Challenges of hand-harvesting, move to mechanization]
• 09:50 – [Economic culture: Hawaiian shirts in academia]

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Conclusion

“Hawaii’s worker shortage goes NUTS” turns an obscure Beige Book anecdote into a revealing look at the intersection of geography, tradition, economics, and community on the islands. From unique harvesting challenges to systemic pressures on wages and mobility, the episode peels back the layers behind a “paradise” labor market that is anything but simple. All is handled with the show’s signature blend of wit, insight, and a dash of vacation envy.

Transcript

[Announcer]

Npr.

[Robert Smith]

Waylon, I hate to tell you, but we have a new competitor.

[Waylon Wong]

Don't tell me there's another short form nerdy business podcast out there.

[Robert Smith]

Even more concerning. You know how we do a show every time the Federal Reserve publishes the document known as the Beige Book where we highlight the best stories? Well, now the Fed is cutting out the middleman and becoming their own influencers.

[Waylon Wong]

Oh, no.

[Robert Smith]

Yeah. The Minneapolis district of the Fed is now doing a hip video version of their beige book entry. Listen to this. Our surveys for the latest Beige Book show hiring demand this week. And more firms are seeing their headcount shrink than grow.

[Carl Bonham]

There's bad news.

[Waylon Wong]

We even have that jaunty piano music like the cereal podcast. Are we toast? We're toast.

[Robert Smith]

We are going to have to up our game. We no longer have a monopoly on the beige book coverage.

[Waylon Wong]

We'll have to do today's episode with extra prizes and glitz and glamour.

[Robert Smith]

It's the Beige Awards, our eight times a year salute to the art and science of telling stories about the economy. I'm Robert Smith.

[Waylon Wong]

And I'm Waylon Wong. And how's this for glamorous? Today on the show, we are taking our listeners on an awesome expenses paid vacation to Hawaii.

[Robert Smith]

Technically, we're bringing your ears to Hawaii. Rest of your body not included.

[Waylon Wong]

The Beige Book highlights an economic mystery in the state. Unemployment is low, they have a huge demand for workers, and yet some parts of the economy are not in great shape.

[Robert Smith]

Trouble, as they say, in paradise.

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[Carl Bonham]

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[Robert Smith]

It's always good to remind everyone how this awards show works. There are 12 regional banks in the Federal Reserve System. Each one studies their local economy and and brings back little stories of what they see. They publish them in the document known as the Beige Book, and we give awards to the best stories.

[Waylon Wong]

Our runner up this time is the Minneapolis Fed, not just for their new video version of the Beige book that we talked about at the beginning.

[Robert Smith]

We welcome the competition.

[Waylon Wong]

We do. Despite the mean thing I said about them earlier. The Minneapolis Fed had the best quote to prepare for 2026. Robert.

[Robert Smith]

So the Minneapolis Fed was talking about the weak labor market, and they talked to a contact in hiring who said, quote, more businesses were temporary or contract workers to stay flexible in uncertain times.

[Waylon Wong]

And we should note they're referring to economic uncertainty and not all the other uncertainty in the country right now.

[Robert Smith]

Good point.

[Waylon Wong]

And now time for the main award. The Beiji goes to the San Francisco Fed.

[Robert Smith]

Coming to the stages, getting a note here. San Francisco didn't make the ceremony.

[Waylon Wong]

Didn't think they were gonna win, huh?

[Robert Smith]

Guess not. We do have a backup plan, though, for when regional Federal Reserve banks are apparently too busy to accept the Beiji. We give it to a notable resident of the district to hold. And since the winning anecdote involves Hawaii, we're going to the islands, Waylon.

[Waylon Wong]

Ooh, we need a Hawaiian hero.

[Robert Smith]

You know, I googled that phrase, Hawaiian hero, and I came up with an organization called Uhero.

[Carl Bonham]

It stands for the University of Hawaii Economic Research Organization.

[Robert Smith]

Ah, so you're an economic hero.

[Carl Bonham]

That's the goal.

[Robert Smith]

Carl Bonham runs Uhero and is a professor at the University of Hawaii.

[Waylon Wong]

I feel like we're doing this interview solely because it is so cold in most of the US Right now. We just want to be transported to warmer climes.

[Carl Bonham]

It's arctic here, too, by our standards. I think in my bedroom right now it's about 71 degrees, which is quite chilly and very windy.

[Robert Smith]

Oh, nobody wants to hear that, Carl. 71 degrees. We're calling you up so that you can accept the Beijing Award on behalf of the San Francisco Fed.

[Carl Bonham]

Absolutely. Be my pleasure.

[Waylon Wong]

And the winning entry grabs our attention because it was so unusual. It Reads. In Hawaii, labor shortages impacted the harvest for macadamia nuts and coffee.

[Robert Smith]

And I did a little bit of research, and it's not just in agriculture. The unemployment rate for the state of Hawaii is just 2.2%. People are desperate for workers in farming, sure, but also in tourism, jobs and construction. What exactly is the issue, Carl, with hiring workers there?

[Carl Bonham]

We're all the way out here in the Pacific. When the economy starts adding jobs, workers aren't going to suddenly jump on a plane and flood our markets. Right. It's much more complicated. Labor's not as mobile. You could ask just about any business person in the state, and they'll tell you that one of their biggest challenges is finding skilled workers.

[Robert Smith]

Carl, I don't mean to econsplain supply and demand to you, but people may be listening to this and thinking, just pay more money. If you have a labor shortage, pay more.

[Carl Bonham]

Oh, exactly. And you're right. If our labor market was as tight as the unemployment rate suggests, you would certainly expect that wages would be going up faster than they are, and they're not.

[Waylon Wong]

Carl went on to explain that there are challenges facing businesses in Hawaii that make it hard to raise wages. Rising costs from inflation tariffs, insurance rates going up. And Hawaii is seeing its tourism industry struggle. People are still coming to the beaches of Waikiki, but they're spending less compared to previous decades.

[Robert Smith]

Maybe they're staying in a hotel, but they're not doing the $300 beach luhau with hula lessons.

[Carl Bonham]

Particularly when you've. When you've done it several times, right. Or you've done the sunset. You know, the sunset catamaran cruise or the whale cruise there.

[Waylon Wong]

The winning beige book entry specifically mentioned the challenges of getting workers on macadamia nut farms. So we decided to call up someone who runs one.

[Robert Smith]

Jeff Clark is the president of Hamakua Macadamia Nut Company, Although he calls them Mac Nuts.

[Waylon Wong]

Mac Nuts. I love it.

[Jeff Clark]

If I kept saying macadamia all day, we don't have time for all those syllables.

[Robert Smith]

So most Hawaiian Mac nuts are grown on the Big island of Hawaii, which, if you've ever been there, you know, is basically on the side of several volcanoes. Right. And so it's a good news, bad news situation for the nuts. I mean, the volcanic soil means a great tasting Mac.

[Jeff Clark]

It has a rich, buttery taste and texture that is unmatched by any other region.

[Robert Smith]

But growing anything on the sloped side of a volcano means it's really hard to harvest the Mac nuts.

[Jeff Clark]

Macadamia nuts, you actually get down on your knees and pick up nuts off of the ground.

[Robert Smith]

Wait, wait. Really? There's not a machine that does this for you?

[Jeff Clark]

A lot of the orchards that were planted in Hawaii were actually planted as far back as the 1960s. And so sometimes they were not planted on the most forgiving land, meaning, you know, the slope is too much for mechanical harvesting. And so many of the orchards in the state and on the big island are still hand harvested.

[Waylon Wong]

Okay, now I'm getting why the labor shortage is affecting the macadamias. Hand harvesting nuts in the hot sun on your hands and knees has got to be one of the hardest jobs in Hawaii.

[Robert Smith]

Jeff told us they do bring in immigrant labor on a legal visa. They pay around $20 an hour, but they also have to build housing for the workers because real estate so pricey in Hawaii.

[Waylon Wong]

And I imagine they're competing for the macadamia nut market with places where they grow it much cheaper.

[Robert Smith]

The solution they're looking at now on the big island is to try to start to replant some of those old macadamia trees on flatter ground where they can finally use harvesting equipment.

[Jeff Clark]

We cannot afford to hand harvest macadamia nuts anymore. We really need to move towards mechanization.

[Robert Smith]

It just takes a long time to grow new trees and to get them Mac nutting properly.

[Waylon Wong]

Mac nutting. You turn it into a verb.

[Robert Smith]

I'm doing it.

[Waylon Wong]

Well, maybe with a cool term like that, you can get the tourists in to help, like pick your own macadamia.

[Robert Smith]

Nuts for a price. Sure, sure. Congratulations again to the San Francisco fed for alerting us to the interesting labor situation on the islands. And thanks to University of Hawaii professor Carl Bonham for accepting the award. I noticed, Carl, that even when we're talking to the most serious economists in Hawaii, they still all wear the colorful Hawaiian shirts.

[Carl Bonham]

Everyone does it when we hire new faculty. It takes them a little while to get the hang of it right. And they, they stick out a little bit when they're, you know, wearing their, their golf shirts or whatever, their button regular button down shirts. But they adapt within a few years.

[Robert Smith]

I'm wearing long underwear right now in New York City, so must be nice.

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