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Report: 2M jobs lost, unemployment spike of 1.5 percent if automatic spending cuts kick in
WASHINGTON (AP) ¯¯¯ A new report on the government's looming automatic spending cuts estimates they will cost the economy more than 2 million defense and domestic jobs.
The study was done by Dr. Stephen Fuller of George Mason University and Chmura Economics and Analytics. It was conducted for the Aerospace Industries Association, but examined the shared pain for defense and domestic programs from the across-the-board reductions that kick in Jan. 2.
The analysis is similar to other cautionary reports that have emerged in recent months from independent organizations that analyze federal spending. Congress is under pressure to find a way to avoid the cuts but Republicans and Democrats remain deeply divided.
The Associated Press obtained a copy of the report in advance of its release Tuesday.