The report was issued by Milken Institute, a research organization founded several years ago by former junk-bond whiz Michael Milken. Though most of the job-losses will come in the hotel industry and other travel-related sectors, other big losers will likely include the radio and TV business.
By itself, Milken researchers say, Los Angeles is likely to lose at least 76,000 jobs as the result of the attacks. But if the local economy doesn't snap back next year, the local figure could surge to 110,000.
The state's long-term outlook is much brighter, Milken analysts say. Though the dot-com shakeout has already cost California thousands of jobs, fundamentals of the state's all-important technology sector are still strong and the region is in a good position to capitalize on future tech advancements.
"Some people have given up on the 'new economy' because of so many dot-com failures and the implosion of tech stock valuations, but that's a big mistake," says Ross DeVol, Milken Institute's director of regional and demographic studies. "The Internet and technology will continue to improve productivity, and those regions that can take advantage of high-tech will be rewarded."
DeVol and his fellow researchers say California ranks second on the list of states most likely to benefit from the next wave of technological advancements, thanks mostly to the area's deep tech workforce and long track record of attracting money from venture capitalists. Only Massachusetts should fare better, DeVol says.
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