If you need something from the Commerce Department or the Department of Labor this week, it’s probably best not to hold your breath. According to analysis from the New York Times, the government shutdown that is now a reality is keeping 87% of the Commerce Department’s staff furloughed at home and 82% of the Labor Department. Most essential federal employees will be at work, but estimates put the number of furloughed government employees around 800,000, with another million or so being asked to work without pay.
The government shutdown will have real impacts on the U.S. economy, though the silver lining (if there is one) is that the negative effects may be only transitory. Much of the impact, though, depends on the length of the shutdown and the coming showdown over the debt ceiling.
Based on current estimates, we’d expect between 0.1% and 0.2% to be shaved off of U.S. GDP for every week that a shutdown continues. Read more