The tsunami and earthquake that struck Japan on Friday forced many multinational businesses to relocate workers and close hundreds of factories.
Since Japan’s phone service is muddled; it is impossible to assess the entire economic impact as traffic clogged the ravaged streets and flights were grounded.
Thousands have lost their careers, their homes or worse, their lives.
U.S companies Procter & Gamble and DuPont reports that communication issues make it difficult to gauge the long-term effect on ongoing operations.
Nikkei’s benchmark index dropped 1.7% and their stocks drastically plunged. The Japanese job market was only open after the earthquake befell them.
Nevertheless, compared to Tokyo’s metro area, the damage to their economy is not as severe as it could have been.
Japan’s economist, Michael Smitka, said, “Something similar hitting Tokyo Bay would have been unimaginable. In the end, this disaster could actually help the Japanese economy. As horrible as the situation is, many people will need to be recruited; reconstruction jobs will be plentiful.”
“Natural disasters do boost job output.”
French bank Societe Generale, Takuji Okubo, agreed: “Obviously, Japan’s job market is currently dire; it is taking a huge hit, but will strongly rebound as Japanese consumers will replace lost appliances and cars. Careers will resume as new reconstruction begins.”
“I predict Japan will see a stronger growth in 2011, rather than weaker.”
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