As federal lawmakers debate how to avoid falling off the looming fiscal cliff, a report commissioned for the Aerospace Industries Association shows Idaho could lose 10,411 defense-related jobs. The U.S. could face job losses totaling two million, according to the report.
Automatic budget cuts are scheduled to go into effect in January, unless lawmakers come up with a new plan.
Here’s what The Associated Press reported:
“Roughly five months until the across-the-board reductions kick in, the Aerospace Industries Association unveiled a new report Tuesday that warned of jobs losses, billions in losses to the economy and a blow to wages from the $1.2 trillion, 10-year cuts in defense and domestic programs. The trade group that represents manufacturers, New Hampshire’s two senators and the mayors of Phoenix and San Diego cited the report in arguing that it was imperative that Congress act before the November election to avoid the cuts.” – AP
George Mason University and Chmura Economics & Analytics put together the study that’s being cited by media outlets and politicians across the country.
Here’s what report author Stephen Fuller told Reuters:
“The results are bleak but clear-cut,” he said. “The unemployment rate will climb above 9 percent, pushing the economy toward recession and reducing projected growth in 2013 by two-thirds.” – Reuters
In addition to the potential loss of 10,411 jobs in Idaho, the report estimates the state will also lose more than $1 billion in gross state product and more than half a billion dollars in income.
You can read the full report here.