One Million Job Losses Beginning in November
-- "Unless Congress acts before November 6, the yearly business cycle could bring a raft of pink slips just before voters head to the polls." --
“If Congress fails to pass a broad debt-reduction package this year that would reduce the federal debt by $1.2 trillion, around $500 billion in separate cuts to defense and domestic entitlement budgets would go into effect Jan. 1. The impact would force government entities like the Pentagon to cancel contracts, lay off workers and terminate programs, experts of all political stripes agree.
"The Bipartisan Policy Center, in a report released Thursday, predicts the result would be a fresh injection of unemployed Americans into the still-staggering U.S. economy.” ... U.S. News and World Report, 6/7/2012
Executives Seek Guidance from Panetta on When to Layoff Workers
-- "while government agencies sit tight and wait for Congress to act,... the private sector has to begin taking actions over the summer to prepare for possible program cancellations or delays." --
"Industry leaders have requested a meeting with Panetta in the next several weeks to discuss possible budget scenarios that might unfold between now and January. Executives contend that while government agencies sit tight and wait for Congress to act during the lame duck session after the November elections, the private sector has to begin taking actions over the summer to prepare for possible program cancellations or delays. Industry analysts believe that having the budget hanging in limbo is worse for companies' bottom line in the short term than actual budget cuts as investors do not like uncertainty." … National Defense Magazine, 6/8/2012
The Jobs Will be Gone, the Intellectual Capital Sapped Away
-- "Defense and aerospace companies across the United States are putting employees and suppliers on notice for the coming canceled contracts and mass layoffs." --
"The layoffs have begun. Defense contractors are bracing themselves for significant downsizing and assembly-line closures as Congress bickers over the federal deficit. If lawmakers fail to repeal the draconian sequestration law or reach consensus on the deficit, they will trigger the 'doomsday switch' on Jan. 2, 2013, resulting in $600 billion in automatic Pentagon spending cuts and hundreds of thousands of jobs lost across the defense technology sector.
"Defense and aerospace companies across the United States are putting employees and suppliers on notice for the coming canceled contracts and mass layoffs. Sequestration has effectively become a runaway train, with Congress unwilling or unable to stop it." … Washington Times, 6/8/2012