Maryland May See More Than 114,000 Job Losses Next Year
According to a recent report, Maryland is set to lose almost 115,000 jobs next year after federal spending cuts take effect.
If planned federal cuts take place next year, Maryland could lose nearly 115,000 jobs, according to a recently released report by the Aerospace Industries Association.
About a third of the lost jobs in Maryland would come from Department of Defense cuts, and the rest would come from cuts in professional and business services, said the report entitled “The Economic Impact of the Budget Control Act of 2011.”
The National Institutes of Health (NIH) headquarters in Bethesda would likely see many of these cuts, particularly in medical research. It’s the largest employer in Montgomery County, with 17,997 federal employees, according to the state’s Department of Business and Economic Development.
According to the report, about 617,449 federal jobs are at risk when the automatic spending cuts go into effect in 2013, and they’ll cost the U.S. economy about 2.14 million jobs in total, as well as decrease personal earnings of the workforce by $109 billion.
David Iannucci, a spokesperson with Prince George's County executive's office, said that with their large federal presence, Montgomery County and Prince George's County, as well as all the jurisdictions in the metro area, are especially at risk for the fiscal cliff.
"If these types of cuts were to be implemented it would have a very serious negative effect on the local economy, tax revenue and unemployment," Iannucci, who specializes in economic development, said.
Additionally, the company with the second-highest number of employees in the county is the Walter Reed National Military Medical Center—with about 11,000 employees—and according to the report, about 48,059 jobs in health care are at risk nationwide.
Maryland’s job loss would rank fifth, says the report, conducted by George Mason University economist Stephen Fuller. Maryland is followed by Washington, DC, which is predicted to lose 127,407 jobs, and Virginia, at 207,571 job losses.
These numbers include losses from both Department of Defense (DOD) cuts and non-DOD cuts and represent direct, indirect and induced job losses resulting from the spending reductions.
Fuller predicts in the report that the reductions will reduce the nation’s Gross Domestic Product (GDP) by $215 billion, while unemployment will increase by as much as 1.5 percentage points, putting the national rate above 9 percent.
Additionally, he says collateral impacts, determined by behavioral factors, will also occur.
“The loss of consumer confidence may suppress spending, especially spending requiring credit such as for autos and housing,” he wrote. “Personal saving may increase, taking further spending out of the economy.”
According to Fuller, these collateral impacts, along with the loss of personal income, jobs and GDP, will seriously enlarge the negative consequences of the spending cuts and deepen the economic reduction in 2013.
“If they are allowed to occur as currently scheduled, the long-term consequences will permanently alter the course of the U.S. economy’s performance, changing its competitive position in the global economy,” Fuller wrote in the summary of his findings.
KatieSilverSpring
7:27 am on Friday, July 20, 2012
6 of Maryland's 8 Congressional members have served throughout this nearly 5 year period without a Budget - we should write to each one of them, PLUS our 2 US Senators whose chamber blocked all Budget action. The time has come to move beyond and get a Budget passed. STOP the blame game and get on the stick, Congress!
Avocado
4:59 pm on Tuesday, July 24, 2012
There's a rally near the US Capital Building tomorrow at 2pm about the consequences of allowing the big across-the-board cuts to go forward. Everyone is welcome
http://publichealthfunding.org/index.php/action/campaigns/ndd_rally/
B Allen
9:53 am on Friday, July 20, 2012
What needs to be done is to fire Mikulski, Cardin, Vanhollen, Edwards, Sarbanes, Hoyer, Cummings, OWEmalley, ALL the members in the state legislature with e "D" after their name, the Moco County council, Leggett...you get the picture. The republic of MD is losing ground fast under the dems. It ranks at the bottom 10 of business friendly states. CEO's would NEVER consider moving a company to MD, people are leaving MD and taking MILLIONS of tax revenue with them. More illegals are being brought here to MD and given freebees all at the expense of the REAL taxpayers here in MD while our services are cut back. You people on the left just don't get it. Look at Wisconsin, they got the dems out, put in the conservatives and the state has a surplus of money. The leftists even tried a recall on the gov and the people spoke. It is too bad there are way too many stupid; ignorant; dumb
and foolish people in MD that vote for these people. I just wish you people would take your blinders off and quit voting party lies and deciept.
J Galt
8:12 pm on Saturday, July 21, 2012
Amen, B. Allen.
B Allen
8:53 am on Sunday, July 22, 2012
@Frank, don't like it when the facts get out there. You and your instigating buddies that post lies, dumb comments and show your stupidity over and over again, need to have some sense knocked in to you. Your continued lack of knowledge of the truth ceases to amaze me. I'll tell you what, I will send your butt to venezuala, via my foot and you can have all the socialism you want.
bbb
12:42 pm on Friday, July 20, 2012
Funny how the "Tea Party" and likes want smaller "Government" .....BUT when the tickle affect hit's..... YOU r the layed off from your JOB.....BUT WAIT THAT'S not what you meant ??? Right ??? It was suppose to b the person losing there job!!! NOT YOU..RIGHT??? Government large or small is the back bone of JOB'S...for those that say look at all these COMPANIES that r big an rich...Most of them made it by "GOVERNMENT" contracts....Which by the way help the 'SMALL BUSINESS" man BECAUSE they spent money at their store's...because they had a JOB...BUT thanks to "TEA PARTY" an the likes......SORRY ...maybe you will make new "Tea Party friend's in the "Unemployment Line"...Vote them out..
B Allen
9:12 am on Sunday, July 22, 2012
bbb, Sure companies made it on gvmt contracts but that is because government people do not have the brainpower to come up with the products. So why do we need ALL these no nothing gvmt workers? Oh, it is another form of welfare, because some just go to an job and produce nothing. I wonder what Steve Jobs would say if he were still alive or what Bill Gates has to say about the dumbass statements by the chief lier of the dem party in the white house. Where was the gvmt when he was knocking on doors to seel his idea to IBM (oh yeah another one that the gvmt helped creat, NOT!!!, hahaha, or me for instance, the government gave me the idea I have a patent going through on NOT!!!!, Your comments are dumb at best. BTW, you probably don't even know what TEA stands for because you throw it out there because you heard some nutjob dumbocraps talking about it. BTW, what does the gvmt produce, does the Nuclear Regulatory Comm produce nuclear energy? NO!!! Does FERC produce energy NO!!!! (why do we need 2 government agencies regulating energy? doing the same job) , Does the EPA produce anything, NO!!! ALL THEY PRODUCE IS REGULATIONS TO DRIVE UP COSTS TO THE CONSUMERS AND RAISE MORE TAXES. Get educated to the truth instead of spewing back nonesense. TEA=Taxed Enough Already...that starts your educating.
jag
12:12 pm on Sunday, July 22, 2012
Government jobs have been slashed for years now (well over 500K lost), partially offsetting relatively strong gains in the private sector. This latest round of public job loss projections isn't surprising at all (it's exactly what the majority voted for in the midterms) and it certainly isn't surprising VA will be hit about 2x as hard as MD considering how heavily they rely on the government's teet. No news here, as far as I can see.