State officials boast about the low unemployment rate here, saying it's a sign of a strong and vibrant economy. But ask business owners what the result of a tiny worker pool is and they'll almost unanimously agree that it makes it very difficult to find and retain employees.

The worker shortage is so severe that many businesses don't even bother running help-wanted ads because they get very few responses. And many of the people who do apply for work often aren't qualified but are hired anyway.

The problem runs the gamut, from entry-level workers to managers.

"Right now it's to the point where it's almost a joke that if somebody's got a pulse they're hired," said Sam Slom, president of Small Business Hawai'i.

Judy Bishop, owner of employee placement firm Bishop & Co., agreed.

"A year and a half ago we could put one ad in the paper and we'd get 50 inquiries and resumes," Bishop said. "Now we put an ad in the paper, and we get none. We're constantly looking for new recruiting sources and how to maximize our dollars spent on recruiting."

A recent report by the Conference Board reflected the inequity between available jobs and employees. In June, the number of Hawai'i Internet help-wanted ads outnumbered the number of unemployed here.

The study revealed that there was one online job ad for every 0.84 unemployed people in the state. Mississippi led the way with 4.1 unemployed workers per job ad, the Conference Board said.

The workforce isn't expected to grow anytime soon.

The unemployment rate for the state in May was 2.5 percent, slightly higher than April's 2.4 percent, but still one of the lowest in the nation. The state's workforce stood at 654,000 in May, with 16,200 unemployed.

The state is so confident that the unemployment rate will remain steady that it recently lowered the taxable wage base used to calculate what businesses pay for unemployment insurance, while increasing benefits. That will save businesses money, but it won't resolve the worker shortage problem.

Tim Lyons, executive director of the Hawai'i Business League, said the lack of qualified workers is the most common complaint from his members.

"We've been hearing for a couple of years now that it's their biggest problem," Lyons said.

"Low unemployment is always a desirable thing until you get into it for too long of a period," he added. "Our market and economy have been up for long enough now that it's a little out of whack. But I think some employers would rather deal with not having enough employees than sitting around not having enough work. It's the lesser of two evils."

Lyons and others say the problem is especially difficult for businesses that require manual labor. Lyons said some local contractors have begun to advertise on the Mainland for laborers.

Mike Tory, vice president of Tory's Roofing and Waterproofing, said his family-owned company has been hit hard by the worker shortage. The company has 45 employees but would like to have at least 50 on the payroll.

Because Tory's Roofing lacks workers, the company has had to turn down work.

"The jobs are there, but we're limited," Tory said. "It gets kind of stressful when you got too many jobs and they all break at one time, so we kind of taper off on bidding because we know we can't handle any more jobs."

Tory said he also relies on word of mouth, rather than running ads, to get workers. But he said that still isn't good enough to attract people.

"There's only so much you can pull out of the pot and then you start scraping bottom," he said. "You got guys coming in just two times a week. That's the biggest problem we have is guys not showing up for work."

Slom said worker apathy occurs often because people know there are other jobs out there.

"A number of businesses will tell you that they hire somebody and either they don't come in the day that they're supposed to or they come in for a couple of days and they don't come back," Slom said. "Part of the reason for that is they know they can get a job just about anywhere if they want to."

Lyons said about 50 percent of a business's expenses is for wages and related taxes. Once that figure goes up into the 55 percent or 60 percent range, it becomes very difficult for an employer to survive, he said.

With many business owners struggling, they can't afford to offer higher wages and other financial incentives to attract and keep workers. But small business experts say there are other ways to make workers happy.

Jane Sawyer, U.S. Small Business Administration in Hawai'i spokeswoman, said employers can be "creative" by offering employees flexible work schedules, in-kind gifts, time off to take classes, special training, rewards for hitting sales goals, and opportunities for advancement.

"There could be all different kinds of things that could come up that an employee would say, 'Wow, you're really thinking of me. I'm important to you and not just a cog in the wheel,' " Sawyer said. "Retention and development are important, and I'm afraid people don't make it a high enough priority."

Bishop agreed that many business owners don't take the time to develop recruiting and retention programs. She said she rewards her staff of seven with a bonus plan, training opportunities, and encourages them to be involved in professional and community organizations.

Slom said businesses can come up with creative programs, but he said they won't work if there aren't enough qualified people out there to fill the jobs.

"Even if the small businesses said, 'We'll raise the salaries and we'll raise the compensation significantly,' they still will have a difficult time, as well as many big businesses," Slom said. "There still is a shortage of capable, able and willing workers."

At Tory's Roofing, the workers who do stick around are rewarded with an incentive program, which includes a profit-sharing plan, bonuses and trips to Las Vegas.

"We're just looking for a few good guys who want to come to work every day," Tory said. "When we find them, we take care of them."

Reach Curtis Lum at culum@honoluluadvertiser.com.