By Steve Kraske, Elizabeth Ruiz, Zach Wilson
Federal workers in Kansas City whose jobs were eliminated under the Trump administration’s massive budget cuts will have a hard time finding comparable work in the area. Instability in the city’s workforce could lead to a recession.
Thousands of federal employees and government contracts have been terminated as the White House and Trump aide Elon Musk move to reduce the size of the federal workforce and cut wasteful spending.
That reportedly includes at least 1,000 employees at the Internal Revenue Service offices in Kansas City.
Unemployment is already low. University of Kansas labor economist Dr. Donna Ginther said jobs for people with bachelor’s degrees have decreased “by more than 50%,” making it more difficult for those out of work to get back into a high paying career.
The sudden layoffs could create instability in the labor market—which is an indicator for recession.
“As unemployment increases, we could face an economic downturn,” Ginther told KCUR’s Up To Date.
Ginther said she’s concerned.
“Government is a large part of our economy, and now we’re slashing and burning a big contributor to economic growth without really fully understanding the consequences,” Ginther said.
