The recent spate of job cuts at US federal agencies, directed by the Department of Government Effectiveness, seems likely to continue despite mounting lawsuits.
So far, the long-term impact is unclear. While the market has reacted negatively to policies like tariffs, investors don't appear to be worried about the federal government's layoffs; the S & P 500 has hit new highs twice in the past week alone. The U.S. federal government employs 3 million, or about 1.9 percent of all U.S. employment excluding the military. Piper Jaffray Investments said 29,000 federal workers had been laid off as of Friday. So far, economists have not warned about it.
Economist: Economic impact of massive U.S. government layoffs may be limited
2025-02-26 03:51:32
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