Defense Cuts Would Spike Unemployment

There’s no question the automatic budget cuts set to take place next January will have major national security implications, but what about the economic fallout? Sequestration doesn’t just mean a reduction in military readiness, it also means reductions in defense and non-defense jobs. According to a new study by the Aerospace Industries Association, the unemployment rate would reach 9 percent or higher under these cuts (h/t Rob Bluey):

“The results are bleak but clear-cut,” said [Dr. Stephen S.] Fuller. “The unemployment rate will climb above 9 percent, pushing the economy toward recession and reducing projected growth in 2013 by two-thirds. An already weak economy will be undercut as the paychecks of thousands of workers across the economy will be affected from teachers, nurses, construction workers to key federal employees such as border patrol and FBI agents, food inspectors and others.”

This is about more than national security. A sudden reduction in defense-sector jobs could devastate whole communities, flooding the already-oversaturated job market with masses of newly unemployed. These aren’t unnecessary or obsolete jobs, they’re ones that are still critical for national defense.