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Report details sequestration's effect on SD job growth

SAN DIEGO DAILY TRANSCRIPT Staff Report

Thursday, July 18, 2013

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NUSIPR tracked employment growth in five private sector industries most reliant on federal expenditures: ship building, aerospace, research and development, electronic instruments manufacturing (which includes test and navigation equipment used by the military), and facilities support services. Together these industries represent 87,000 payroll jobs or 8.2 percent of private sector employment in San Diego.

They found that since the start of 2011 employment in these defense dependent industries has been flat while the rest of the economy has seen an increase in employment of more than 7 percent. Moreover, during periods of most uncertainty over federal government spending cutbacks, employment among the defense industries shows marked and significant downward trends.

In addition to these impacts, NUSIPR forecasts retail sales and other consumer expenditures will be negatively impacted over the coming months due to mandatory furloughs of federal civilian workers. As of the latest count, the majority of 46,000 federal employees (not including active-duty military) working in San Diego are impacted by the unpaid-furlough order.