Las Vegas and Myrtle Beach are projected to lose the largest percentage of jobs in 2002.  Cities whose economies rely upon the travel and tourism industry will be the hardest hit by the economic fall-out of the domestic terrorism of September 11.  A report published by the Milken Institute estimates that over 1.6 million jobs will be lost throughout the United States in 2002. 

The Milken projections reflect job losses that will be attributed to the economic effects of September 11 and have been adjusted for the effects of a mild (and ongoing) economic recession in the U.S. 

The New York metropolitan area ranks third in the percentage of job losses with Reno, Nevada and Atlantic City, New Jersey in fourth and fifth place.  Beyond the travel and tourism industry, the New York economy has also been hit in the entertainment, advertising, real estate, insurance, and finance sectors.  As a result, the New York metropolitan area ranks first in projections of absolute job loss.  Based on Milken calculations, New York will lose almost 150,000 jobs in 2002. 

Recovery of job losses is expected to occur in 2003 for most metropolitan areas.  The report notes that the effect of domestic terrorism on the economy is very different from the effects of large natural disasters.  While “economic activity generally recovers” in the quarter following a natural disaster, the recovery of a post-terrorism economy will rely upon business and consumer confidence nationwide.

Milken Institute report available at:  www.milken-inst.org