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The longer the U.S. government shutdown lasts, the

2023-09-27

Aihucha News, September 27: The U.S. government shutdown will have a chain economic effect. As time goes by, this impact may be slight at first, but will gradually deepen. During the government shutdown, it is expected that approximately 1.3 million active-duty military personnel and 2 million civilian retired government employees will not receive pay. After the government shutdown ends, federal workers will automatically receive back pay, but contract workers have historically not been retroactively paid. It is expected that for every week of government shutdown, the annualized U.S. quarterly GDP growth rate will decrease by 0.2%. The month-long government shutdown may temporarily push the unemployment rate to 4% in October. Goldman Sachs analyst Alec Phillips said the longer the government shutdown lasts, the wider the impact will be on federal employees.

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