261K jobs added in Oct. on rebound in hurricane zones
As the hurricane took away jobs and crippled the economy earlier this year, jobs are starting to come back to the affected states of Florida and Texas. As more and more people get back to work the overall output of these areas will recover as well. When people regain their income, consumption will increase and continue to improve the economies. Although the net hiring in these two areas equals zero this could mean that there has not been a massive return of jobs but suggests that there was some growth.
Time will be the only healer for the economic and labor woes of these regions. However, the question remains, will overall GDP, in real terms, return to where it was, or even surpass the old GDP? New Orleans still has not returned to its pre-hurricane real GDP numbers of 76 billion dollars, and it has been 11 years since this happened. What do you think?
https://www.usatoday.com/story/money/2017/11/03/261-k-jobs-added-oct-rebound-hurricane-zones/827666001/
https://fred.stlouisfed.org/series/RGMP35380
https://www.usatoday.com/story/money/2017/11/03/261-k-jobs-added-oct-rebound-hurricane-zones/827666001/
https://fred.stlouisfed.org/series/RGMP35380
It was such tough times for these areas the past few months, I'm very glad to see them getting back on their feet. In terms of GDP, I think they will eventually get back to where they were before. I think they will get their but not for a long time. With what you said about New Orleans, I think it could be up to 20 years until we see these numbers get back to their previous level.
ReplyDeleteWhat the disaster-struck cities should do is to invest on safety measures after they get back on track. This would increase overall GDP, as the government will be spending and these prevention constructions will create numerous jobs for people as well. This may help the US get back more steadily and prevent a cataclysm, or at least reduce the damage to a minimum. The entire reason why New Orleans is getting destroyed all the time is because they did not put effort on making the city safe from natural disasters. They should learn from their mistakes and try to fix it, so the citizens do not die and/ or lose their homes.
ReplyDeleteFlorida and Texas have gone trough a lot in a past couple of months and its good to see that they are recovering well from the disaster. As long as they stay strong together and recovering fast, I am sure that the GDP will get back to where they were before but could take a while.
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