“Businesses slash jobs as sequester impact hits”
“More job cuts are on the way as the river of government spending flowing through the U.S. economy continues to slow. The $85 billion federal spending squeeze part of a doomsday budget package originally approved last summer to force a more rational spending plan has now lopped more than a full percentage point from gross domestic product over the past six months and eliminated tens of thousands of federal jobs.”
“The pace of layoffs is expected to pick up speed this summer. The Congressional Budget Office estimates that for the full year, federal spending cuts will reduce overall employment by about 750,000 jobs. Most agencies have just gotten started.”
“The hit to consumer spending is expected to ripple through payrolls of industries from leisure and hospitality to retailers.
‘Theyre going to take a secondary hit from lower disposable income from people that are receiving benefits like unemployment compensation and other federal payments,’ said Brian Kessler, an economist at Moody’s Analytics,” quoting John W. Schoen, NBC News.