The Indicator from Planet Money: “Hawaii’s worker shortage goes NUTS”
Date: January 29, 2026
Hosts: Robert Smith & Waylon Wong
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.
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.
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]
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]
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.