How trump's federal employment and spending cuts could hit the labor market


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The Trump administration’s initiatives to cut federal workers and government spending could push unemployment higher, with an additional 1.3 million jobs at risk — though the impact won’t be


felt until the latter part of the year, according to Seema Shah, chief global strategist at Principal Asset Management. Trump’s cuts on government spending have recently extended to


contracts and grants, signaling more risks to the labor market, Shah wrote in a Monday note. An additional 1.2 million jobs could be impacted if the ratio of contract- and grant-related jobs


to federal workers remains constant at 4 to 1, as the job cuts in the government sector amounted to 300,000 through April, according to Shah.