Hurricane Ian, a Category 4 Atlantic hurricane which devastated Florida in September, was the deadliest hurricane to hit the state since 2035. It caused widespread damage to both Cuba and the southeast United States. But it is not just the initial devastation that is hitting residents hard, with its impact expected to last for the coming weeks, if not months.
Economists are now predicting that tens of thousands of people may become jobless, particularly those in the tourism industry. Other workers may be laid off in areas where the local economy was hit hard by the storm and will take time to recover.
While the extent of the damage is still uncertain, estimates indicate that Ian may have been the most costly hurricane ever to have hit the state. Damages could cost anywhere between $53 billion and $74 billion, based on initial estimates.
The anticipated rise in unemployment benefit claims follows the trend of other hurricane events. For example, 50,000 people became jobless in the aftermath of Hurricane Harvey in Texas.
A senior economist at the RAND Corporation, Lynn Karoly, explained “Certainly, there’s going to be some short-term displacement… but it’s hard to predict exactly what that will look like in the Florida context or in the Southeast more generally.”
Several displaced persons in the region will feel the impact, and tourism will likely be the most-affected industry. While Florida repairs the damages and its local economies begin to recover, its tourism industry will likely slow dramatically as tourists avoid the storm-devastated state.
In addition, rising consumer costs will further hinder the economic rebound in Florida, which may be conflated further by job loss. Dave Gilbertson, vice president at HR technology firm UKG explained the experience of those affected: “They’re losing so much personally, but they’re also losing the ability to work and support their family,” adding, “A lot of hourly workers are living paycheck-to-paycheck [and] dealing with rising inflation by pulling down their savings and utilizing more credit cards… The ability to withstand any kind of disruption is minimal.”
