Which cities in the United States will suffer the most—in terms of job and revenue losses—as a result of the 9/11 terrorist attacks?
According to a new study from the Milken Institute, Los Angeles, Calif., some of the country’s biggest tourist destinations–Las Vegas, Reno, Atlantic City, Orlando and Honolulu–and its biggest cities–New York, Los Angeles and Chicago–will be struck hardest. Most will suffer heavy job losses as a direct result of the terrorist attacks.
All told, metropolitan areas across the U.S. will lose an estimated 1.64 million jobs this year as a direct result of the attacks, the Institute found. Most of those– almost half–will come from industries hardest hit by the attacks, such as air transportation, hotels, amusement, and dining.
Percentage-wise, Las Vegas will suffer more than any other metro in the country in 2002, reports the Institute. It is expected to have nearly 5 percent fewer jobs this year than it would have had without the terrorist attacks. Myrtle Beach, S.C., is second, with a projected loss of 3.6 percent, and New York City is third with a decline of 3.42 percent in jobs.
The remaining top 10 hardest hit are: 4. Reno (3.15%), 5. Atlantic City (2.98%), 6. Orlando (2.85%), 7. Wichita, KA (2.81%), 8. Flagstaff, AZ (2.61%), 9. Honolulu (2.57%) and 10. Forth Worth (2.45%).
The non-profit Milken Institute's mission is to explore and explain the dynamics of world economic structure, conduct, and performance by conducting research in economics, business, and finance. Its objective is a better-informed public, more thoughtful public policies, improved economic outcomes, and better lives for people.
The study looked at all 315 metro areas in the U.S. and analyzed their economic trends prior to Sept. 11. Institute scholars then examined hundreds of industries in those cities to see what has happened since the terrorist attacks. Using its economic models, Institute economists looked at the before-and-after scenarios to forecast the long-term employment losses expected in each metro as a result of the attacks.
The report predicts that the U.S. economy will remain in a recession until the second quarter 2002, when recovery will begin.
For more, visit the Milken Institute Web site at www.milken-inst.org.