Pa. will lose 47,000 jobs if nation goes off fiscal cliff
November 30, 2012By Emma Jacobs
The Pennsylvania economy could experience serious fallout if Congress and President Barack Obama fail to come up with a budget agreement before the end of the year.
A deal must be reached to avoid the so-called "fiscal cliff," automatic reductions totaling $1.3 trillion across the federal government.
David Passmore of Penn State's Institute for Research in Training & Development conducted the analysis, originally published in Pennsylvania Business Central, and says he expects the phased budget cuts could cost Pennsylvania 47,000 jobs and $5.8 billion in economic output over the next decade.
"Back of the envelope estimates that we have really point to a couple of big areas," Passmore said. "More immediately, in the first year, we're going to see [impacts on] health-care sectors especially and also retail."
Throughout the country, defense contractors will see a reduction in orders.
Passmore says the numbers on the local level illustrate the high stakes of the ongoing negotiations in Washington.