In it, but not of it. TPM DC

Automatic Cuts To Cost Over 1.4 Million Jobs In 2013: Study


The report tallies figures from various studies parsing the employment impacts of the $1.2 trillion in so-called "sequestration" cuts, $109 billion of which hit the budget in 2013 -- combining direct jobs (i.e. employees of federal contractors), indirect jobs (i.e. employees of entities that sell to those contractors) and induced jobs (i.e. jobs created by the money these workers spend).

Half the cuts will target national security programs while the other half target domestic programs, which the exception of Social Security and Medicaid and other programs for the poor. Medicare providers take a 2 percent pay cut.

A health industry lobby frets that the Medicare provider cuts are a "big deal," lamenting to TPM that "any time a cut is permanent to the forward baseline, it's a huge deal."

The employment impacts of the tens of billions of dollars in 2013 cuts to education, health care research and aviation were difficult to measure.

The sequester was enacted in the bipartisan debt limit law in August 2011. The two parties agree that the cuts should be distributed differently but are at an impasse over how else to achieve the same level of deficit reduction.

About The Author


Sahil Kapur is TPM's senior congressional reporter and Supreme Court correspondent. His articles have been published in the Huffington Post, The Guardian and The New Republic. Email him at and follow him on Twitter at @sahilkapur.