How Many Jobs Lost Due to Sept. 11?
January 11, 2002
A Los Angeles-based think tank has attempted to quantify the number of U.S. jobs lost as a result of the terrorist attacks of Sept. 11. The Milken Institute compared two scenarios for 2002. One assumed there had been no terrorist attack and only a mild recession based on economic trends prior to Sept. 11. The other took into account the economic wounds inflicted by the attacks.
- In a report to be released today, the institute estimates that the attacks will cost 1.64 million jobs through the end of 2002.
- Tourism and air travel-dependent areas, as well as New York City, are being most heavily affected.
- The institute's main thesis is that added security at airports, increased travel time and general caution will further cut travel to destinations already suffering from a drop-off in corporate-funded and leisure travel related to the general recession.
- Among the hardest hit tourist destinations will be Las Vegas -- which is projected to lose an additional 5 percent, or nearly 41,000 jobs attributable to the attacks.
Other affected destinations include Myrtle Beach, S.C.; Reno, Nev.; Orlando, Fla.; and Honolulu.
Cities with airport hubs or dependent on aircraft construction will also be disproportionately hurt -- including Wichita, Kan. and Fort Worth, Texas.
While the study says most cities will see recovery in 2003, it will take a year longer for New York City to recover economically.
Source: Andrew Caffrey, "Attacks to Cost U.S. 1.64 Million Jobs, Survey Forecasts," Wall Street Journal, January 11, 2002.
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