Goldman Sachs Predicts the Federal Government may Lose 100,000 Jobs Next Year

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Goldman Sachs Predicts the Federal Government may Lose 100,000 Jobs Next Year
Goldman Sachs Predicts the Federal Government may Lose 100,000 Jobs Next Year

Goldman Sachs Predicts the Federal Government may Lose 100,000 Jobs Next Year

Goldman Sachs, an American multinational investment banking firm, predicts that the federal government may lose 100,000 jobs next year if Congress does not reverse the automatic spending cuts also called the sequester. According to the Bureau of Labor Statistics data released Monday, the numbers have declined slightly since 2012.

In the latest analysis, the Goldman Sachs investment-banking firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients gets support from Federal employment data wherein excluding military personnel employment remained unchanged the last month.

Goldman Sachs’ analysis reveals that federal employment including Postal Service workers declined a lot. The total federal workforce, including the U.S. Postal Service but not the military, stand at about 2.7 million employees in August this year. According to the Bureau of Labor Statistics the figure is down from 71,000 compared to the same time last year.

The American multinational investment banking firm, Goldman Sachs questions the justifiability of the sequester and says that the question should be put to know whether sequester has contributed to that dip. It says that since no agencies this year planned to lay off employees because of the cuts, how it can be justified.

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According to reports some of the declines in postal services jobs may be due to the Postal Service offering retirement incentives for its employees as there have been more than 25,000 workers who left the job in 2012 and another 34,000 this year. Obama’s government is expected to increase headcount by the next year as the White House website says:

“Between 2001 and 2010, security agency employment grew, while non-security employment declined. For exam¬ple, civilians working for the Department of Defense grew by more than 92,000; the Department of Veterans Affairs (VA) grew by 78,000 with much of that increase attribut¬able to medical care to provide for our returning service members; Customs and Border Protection also grew more than 30,000 to keep our citizens safe at home.”

New Employment in Justice and Security

It seems Goldman Sachs may not entirely be right as the White House website claims that additional increases are expected at the Department of Justice for enhancements in cyber security and increased background checks for firearm purchases, and at the Department of Homeland Security to support the strengthening of border protection and to support immigration reform.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com