The massive job losses from sequestration will be felt across all regions of the country and will have a dramatic impact on U.S. economic output, according to a new report from the National Association of Manufacturers (NAM) presented at a briefing today. Some key findings from the NAM Report:
- “Based on the findings in the report, peak job loss will occur in 2014, with the spending cuts from the budget caps and sequestration costing the U.S. economy 1,010,000 private sector jobs, including 130,000 manufacturing jobs.”
- “With the additional loss of over 200,000 military jobs in 2014, including civilian workers, the total loss will be over 1.2 million jobs, and the unemployment rate will increase by 0.7 percent.”
- “GDP will be almost 1 percent lower by 2014.”
>>Read the Report and Executive Summary
Speaking at the briefing was Della Williams, President and CEO of Williams-Pyro, a small but critical innovator and supplier of military testing equipment, who said that these cuts “will put company’s like mine out of business, and thousands of skilled workers out of work.”
“Imagine the talent erosion that is already occurring at thousands of other small and medium sized-businesses in the defense industry, as talented workers leap off what they perceive is a sinking ship,” Williams said. “The same people who put their hearts, souls and backs into developing the next generation of test equipment are left wondering if there will be a next generation.”
“I’ve visited with industry leaders and they told me they’ll be sending out pink slips. And those are going to be hitting this fall because they have no other recourse,” House Armed Services Committee Chairman Buck McKeon said at the briefing.
According to NAM, the 10 top states ranked by the magnitude of the job losses in 2014:
California – (148,000)
Virginia – (115,000)
Texas – (109,000)
Florida – (58,600)
New York – (42,100)
Maryland – (40,200)
Georgia – (38,700)
Illinois – (35,400)
Pennsylvania – (34,700)
North Carolina – (34,200)
The biggest proportional reductions will come within transportation equipment and instruments: Aerospace (3.4 percent job loss by 2015, 2.3 percent job loss by 2022), Ships and boats (3.3 percent job loss by 2014, 1.7 percent by 2022), Search and navigation equipment (9.3 percent job loss by 2016, 8.6 percent by 2022), according to the report.
House and Senate Republicans have provided multiple solutions to avert sequestration and avoid the disastrous impacts on our national security. Learn more at the House Armed Services Sequestration Resource Kit.