‘Tens of Thousands’ of Government Contractors Laid Off Due to Shutdown
While the country’s unemployment rates are at a low, the next report could reflect some side effects of the shutdown: namely “tens of thousands” of layoffs by contractors who are losing around $1.5 billion per week. With 9,000 federal employees furloughed, employment is but one of the economic areas seeing compounding negative impact due to the shutdown. Unlike the furloughed federal employees who will receive back pay (almost 800,000 missed their paychecks last week), most contractors will not. The head of the Professional Services Council has estimated that the number of furloughed federal employees will increase “to 20,000 or 30,000” this week, with the increased length also increasing the likelihood of startup problems after some employees seek employment elsewhere and do not return.