Budget Cuts Threaten 1 Million at Small U.S. Firms: Report
September 20, 2012
Small businesses in the United States could lose nearly 1 million jobs in 2013 if federal lawmakers do not avert $1.2 trillion in across-the-board budget cuts due to begin taking effect in January, a new study showed.
The Aerospace Industries Association released a new analysis on Thursday that showed that small businesses with fewer than 500 employees would likely lose 956,181 jobs - or 45 percent of the 2.14 million total job losses expected across the United States if the additional budget cuts take effect.
"Nearly half of all sequestration job losses would come from small businesses," said George Mason University economist Stephen Fuller, who has studied the jobs impact of the budget cuts for the largest aerospace and defense industry group.
Top Pentagon officials testified on Thursday before the House Armed Services Committee about the impact of an additional $500 billion in budget cuts -- on top of $486 billion already being implemented -- on U.S. national security and procurement.