Politics Could Kill 1 Million Jobs By 2014

President Obama: Which workers will be hurt in the sequestration?The new normal in American politics seems to be the unending fiscal crisis. First the debt ceiling was threatening job growth, then it was the fiscal cliff, and now it's sequestration. On March 1, $1.2 trillion in spending will be cut automatically over 10 years -- from across the federal government, in both defense and non-defense -- if Congress doesn't agree to a deal to reduce $85 billion from the budget.

Congress came up with $1.2 trillion in cuts as a political compromise for the debt ceiling crisis. No matter how this year's Beltway squabbling is resolved, it could have real consequences. The only question for workers is -- will it translate into job losses? And which sectors would be hurt most?

How many jobs would vanish?: Estimates vary. Douglas Elmendorf, of the Congressional Budget Office, put the figure at 750,000, according to BuzzFeed. The Bipartisan Policy Center, an respected, independent think tank, estimates 1 million jobs would vanish by the end of next year, due to businesses cutting back on activity and the resulting loss of gross domestic product.

The impact would be be felt by a range of small business and public sector workers, the BPC says. Those who work the National Weather Service's radar, for instance, might be laid off as as the NWS plans to shut down the radar on sunny days, according to The Washington Post. Aerospace workers and public health employees are also at great risk. "The slowdown of business activity due merely to the possibility of a sequester has already led to reductions in workforce among defense contractors and sub-contractors," the BPC said.

More: Sign Up For AOL Jobs' Newsletter

Defense sector could be hit hard: As a result of the Budget Control Act of 2011, both defense and non-defense agencies were slated for automatic budget cuts. Unless the sequestration is averted, federal defense spending will be cut roughly 16 percent, resulting in the loss of $55 billion over the next months, the BPC said. One-day-a-week furloughs already have been planned for the 800,000 civilian employees at the Defense Department, and also likely to feel the hurt are military contractors, according the Military.com.

In his State of the Union speech, President Obama made clear where he stands in the ongoing negotiations. Any attempt to make "cuts to things like education and job training, Medicare and Social Security benefits" to avoid defense cuts is an "even worse" idea than simply accepting the defense cuts themselves, he said.

This go-round in the never-ending drama may in fact end without a resolution. That's the prediction of House Budget Committee Chairman Paul Ryan, among others, according to The Hill. However the sequestration turns out, the resolution of the country's fiscal crisis will surely not be settled. And on May 18, Congress will face a new deadline for the debt ceiling.

Sequestration Budget Cuts Will Cost Jobs




Don't Miss: Companies Hiring Now



More From AOL Jobs



Looking for a job? Click here to get started.

Add a Comment

*0 / 3000 Character Maximum

438 Comments

Filter by:
liondog96

Jobs? Where did all the careers go? A job is working for minimum wage. A career pays at least 20-25 dollars an hour with a pension or matched 401K.

Very simple figure: $10 per hour = $20,000 yearly (Jobs) $20 per hour = $40,000 yearly (Careers)

February 19 2013 at 7:45 PM Report abuse +1 rate up rate down Reply
JOSEPH

Cut the pay of the people "in charge" and that will be the start of money saving. Has anyone else seen the pay these people make to meet once a week or twice a month to discuss things and get nowhere? Stop spending on these people and the people in prisons and you would save.

February 19 2013 at 4:36 PM Report abuse -1 rate up rate down Reply
legalcld

Great plan O came up with! Now all these people can get 2 or 3 part-time jobs! That should make that unemployment number come way way down! Elections DO have consequences people! This is what America voted for and will enjoy for the next 4 years!

February 19 2013 at 10:10 AM Report abuse +1 rate up rate down Reply
tcroof

our government is a joke and they all need to be hung

February 19 2013 at 9:45 AM Report abuse +1 rate up rate down Reply
gw5993

they can always get a part time job, from the compny that just trimmed back to avoid obama care

February 19 2013 at 9:31 AM Report abuse +2 rate up rate down Reply
klovepr

I doubt Obama is genuinely concerned about losing a million paltry jobs. After all, Obamacare is going to cost us FIVE MILLION jobs by 2019

February 19 2013 at 9:23 AM Report abuse +2 rate up rate down Reply
flabrija63

Obama's plan is working pefectly. Welcome to the new normal. Bravo Obama voters, bravo.

February 19 2013 at 9:17 AM Report abuse +2 rate up rate down Reply
c.mertz

Welcome to obamanation.

February 19 2013 at 9:10 AM Report abuse +1 rate up rate down Reply
rraahh1

First the budget does need to be balanced,anyone that doesn't think so probaly has the same issues at home that our government has today.The next issue is how ,if the President doesn't like the seqestration then why did he propose it and now wants to imply that it's not his fault but the evil GOP.The one thing that is for sure the United States can't afford to be the worlds police,the countries we help never seem to pay us back or in most cases say thank you.The solution is black and white cut services or increase taxes,I understand nobody wants to pay and everyone wants to keep their perks but those are not entitlements,Social Security and Medicare are why ,because they were paid for the rest is on the table.

February 19 2013 at 9:10 AM Report abuse +3 rate up rate down Reply
pat hill

Thank the elite crud in D C our representatives, bs.

February 19 2013 at 8:44 AM Report abuse rate up rate down Reply

Search Articles

Top Companies Hiring

Week of Sep 28 - Oct 5
View All

Featured Writers

Meet the team

Picks From the Web