- The Washington Times - Friday, January 11, 2002

The Washington area will lose another 31,600 jobs this year as a result of the lingering impact on the tourism, travel and hospitality industries from the September 11 terrorist attacks, according to the Milken Institute, an economic think tank.
The D.C. area will not be hit as hard as New York City, however, which will lose nearly 150,000 jobs this year in travel, finance and other industries operating out of lower Manhattan, on top of 44,000 jobs lost last year.
Nationwide, fallout from the attacks is expected to extinguish 1.6 million jobs this year more than six times the number of jobs lost last year in the aftermath of the attacks, according to the group started and funded by financier Michael Milken.
Many economists are more optimistic about the job outlook, saying that the worst job losses occurred in October and November and that the pace of layoffs is slowing amid a budding economic recovery.
But the institute, which has gone to greater pains than most research groups to quantify the economic impact from the attacks, maintains that the worst is yet to come. Its predictions are extrapolated from job statistics published by the Labor Department.
Of the nearly 2 million jobs the institute sees being destroyed by the terrorist attacks, about half will be in industries directly related to the attacks, such as air travel and tourism, and the rest will be in businesses that feed into those industries.
The largest job losses will be in air transportation, where more than 100,000 jobs already have been cut. Hotels, entertainment and advertising also are hard hit.
The study found that the biggest economic impact from the attacks has actually been on cities far from Washington and New York. Washington this year lost only a fraction of the 8,360 jobs lost in Las Vegas, a city a half continent away that is far more dependent on tourism for its livelihood.
Las Vegas, which lost one in every 20 casino jobs after the attacks and is slated to lose another 5 percent of its jobs this year, was the hardest hit of all cities in percentage of jobs lost, the report found.
Los Angeles and Chicago, which also rank as major tourist destinations, are expected to lose more than twice as many jobs this year as Washington. Seattle landed high on the impact list because of Boeing and the high concentration of airline manufacturing jobs there.
Ross Devol of the institute said he expects most of the jobs to come back, but it will take a year in most cities.
The damage in New York, which is still removing rubble from the World Trade Center, will linger until 2004, he said.

LOAD COMMENTS ()

 

Click to Read More

Click to Hide