A new report, "Defense Spending Cuts: The Impact on Economic Activity and Jobs" looks at the combined impact of the BCA budget caps and the law's across-the-board cuts under sequestration.
Photos: Defense Study Events
New Study Highlights Harm on Economic Activity
A new report by the NAM, "Defense Spending Cuts: The Impact on Economic Activity and Jobs", highlights the potential impact defense spending cuts under the Budget Control Act (BCA) of 2011 will have on U.S. jobs and economic growth.
The report’s findings paint a stark picture of the potential harm the BCA budget caps and across-the-board cuts under sequestration will have—a loss of 1,010,000 private sector jobs, including 130,000 manufacturing jobs, by 2014. This job loss will increase the unemployment rate by 0.7 percent and decrease GDP by almost 1 percent by 2014. The report shows that the long-lasting effects of these cuts will be felt by not just by the defense equipment supply chain, but also the everyday Americans who are protected by these products.
The largest losses will be in large nondurables and transport equipment, including the aerospace industry that will lose 3.4 percent of its jobs, the ships and boats industry that will lose 3.3 percent of its jobs and the search and navigation equipment industries that will lose 9.3 percent of its jobs.
Table: Employment Loss in Top 10 States, Ranked by 2014 Results