Defense industry study: Budget cuts could cost 1 million jobs

Defense industry officials on Tuesday released a study claiming that 1 million jobs could be lost nationwide if congressional inaction forces large cuts to defense spending.
Congress’ so-called super committee, a bipartisan group tasked with reducing the nation’s debt by more than $1 trillion, has until Thanksgiving to come to an agreement. If the group cannot, large, automatic cuts to defense and social services would be made.

Hunter Lipscomb, a spokesman for Rep. Steven Palazzo, R-Biloxi, said in an email that he “would tend to agree with the study.”

“It is, in essence, the position our office is taking: that defense cuts beyond what is already forecasted would devastate our military and our economy,” the email said.
Nearly 353,000 defense industry jobs would be lost if Congress cut military spending by $1 trillion, according to the study. The ripple effects of this would result in the loss of an additional 653,500 jobs and $59.4 billion in lost wages and salaries for workers. The nation’s unemployment rate would jump 0.6 percent, the study said.