How Has Superstorm Sandy Affected The Economy?
Prior to the elections all eyes were on the labor numbers trying to determine if the unemployment rate would sway their vote for the President. After a strong job report in September, and the reelection of President Obama to office, it seems that there has been less of an emphasis on the economy and the job market. Yet, the newest labor reports for November are out, and indicate the labor market has taken a turn for the worse during the month of November. The poor job numbers can largely be attributed to the devastating impact on the east coast, as well as the fear of the fiscal cliff that is inhibiting many businesses from creating new jobs.
How Many Jobs Did Hurricane Sandy Affect?
According to the recent statistics, when hurricane Sandy pummeled the East coast it hit the most densely populated area in the country. 1/5 of the economy’s total output comes from that area, which is why the job slowdown due to Sandy is having such an overarching impact on the U.S. labor numbers. According to Mark Zandi, the Chief Economist of Moody’s Analytics: “”Superstorm Sandy wreaked havoc on the job market in November, slicing an estimated 86,000 jobs from payrolls…The manufacturing, retailing, leisure and hospitality, and temporary help industries were hit particularly hard by the storm.”
Unemployment Claims Skyrocketed In November
The unemployment claims spiked after Sandy made her presence known on the East coast. The total number of new applicants for unemployment was 451,000. 82,000 of the applicants were from New York, New Jersey and Pennsylvania. As a result, even though the labor department calculated that there were 77,000 jobs added in November, the actual number of new jobs was around 25,000 when you figure the in the jobs lost as a result of the storm. This is a major drop compared to October where 171,000 new jobs were added.
Unemployment Is Having An Impact On The Economy
As much as we would all like to see us pulling through the economic hard times of the last several years, the U.S. is far from improved. Unemployment is expected to be back over 8% which is frightening since November is typically a major hiring month due to the holidays. How do you think the sustained high unemployment rates will impact the U.S. Economy long-term? Overtime the whole economy will begin to suffer. For more information on how to protect yourself and your assets from rough times ahead speak to a redhawk advisor near you.