Storm clouds fill the sky over the U.S. Capitol in June. Sequestration cuts will force agencies to trim 100,000 federal jobs over the next year, according to a report published Tuesday. (Mark Wilson/Getty Images)
Budget cuts from sequestration will force agencies to trim 100,000 federal jobs over the next year, according to a report published Tuesday by banking firm Goldman Sachs.
Federal employment has already fallen by 71,000 jobs over the last year, according to the report. It assumes that Congress will not reverse sequestration budget cuts. The job loss numbers, taken from the Bureau of Labor Statistics, include the Postal Service as well as part-time and seasonal federal jobs.
Even though the economy continues to improve, federal employment will continue to drop because agencies largely avoided permanently cutting their workforces until now and will have to make permanent job cuts over the next year, according to the report.
“Many federal agencies have employed temporary strategies to adjust to sequestration this year, such as employee furloughs and deferral of maintenance and training, with the hope that sequestration would ultimately be reversed,” the report said.
The workforce will continue to decline at a smaller rate after the next year, according to the report.
“If sequestration continues, more permanent adjustments will become necessary and agencies may be more willing to undertake them if Congress declines once again to reverse the cuts,” the report said.