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How a Company Can Budget Effectively After Sandy

The number of businesses that were devastated or damaged by Hurricane Sandy is illustrated by the recent surge in job claims, and companies worried about budgeting in the wake of this event can make the task easier by using financial planning software.

Surging Jobless Claims

Data released in a Department of Labor report indicated that the number of people filing applications for unemployment assistance surged by 78,000 during the week ending November 10 to reach 439,000. This figure was the highest for a week since April 2011.

The number of claims for jobless benefits made during the period far exceeded the estimates made by various market experts. Economists who participated in a Bloomberg poll generated a median estimate of 375,000 claims. This projection was more than 50,000 below the final total.

A total of 49 market experts contributed to this survey, and provided projections ranging from 340,000 to 475,000. Economists participating in a Dow Jones Newswires poll provided the same estimate of 375,000 applications for these benefits.

"People were thrown out of work because of the storm, which is exactly what happened after Katrina," Jeffrey Herzog, a senior economist at Oxford Economics Ltd. in New York, who predicted that claims would rise to 410,000, told Bloomberg.

Firms that were adversely impacted by this weather event can help to ensure that their budgeting process is done effectively by using the right tools, including financial software.

Widespread Damage 

The Wall Street Journal reports that Hurricane Sandy was responsible for the surge in jobless claims because it managed to disrupt a wide range of workplaces, a Labor Department analyst stated. The volatile weather closed schools, cause work to be halted at construction worksites and caused factories to become inoperable. He stated that during the week starting on November 20, the government agency will obtain more information on the industries that suffered most from the storm.

Herzog stated that "the infrastructure was hit in such a way that it will damage transportation and port links, which will take a long time to come back online," according to Bloomberg. Hurricane Sandy also prevented both trains and subways from operating at some points, and caused more than 8 million companies and homes to lose electricity. The turmoil created by the widespread impact of hurricane prevented many people from filing claims immediately.

A wide range of companies may have a need to alter their existing resources in terms of equipment or staff, and they might be able to make this financial planning process easier by making careful selection of the software they use to outline their plans for expenditure.

Heavily Affected Areas 

Some areas were particularly hard-hit, and companies in these regions might experience a greater benefit as a resulted of using technology tools to make their budgeting efforts easier. New Jersey experienced a jump in claims during the week ending November 3 as a result of the event, according to the Labor Department report. The industries that contributed the most to the rising jobless applications in the Garden State were food service, construction accommodation and transportation, Dow Jones Newswires reports.

The media outlet reports that the labor market was showing evidence of improvement before the hurricane hit. A Labor Department report released earlier in the month indicated that the nation added 171,00 new jobs in October. It is also important to note that while the number of jobless claims rose significantly during the latest period, the four-week moving average of claims rose only 11,750 to reach 383,750.

How could your accounting processes benefit from corporate budgeting software?

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