Cost of 43-Day U.S. Government Shutdown: 60,000 Non-Government Jobs Lost, Millions of Benefits Disrupted

American Chinese News report: The 43-day federal government shutdown ended late Wednesday night. This record-breaking political deadlock forced hundreds of thousands of federal employees to work without pay or be furloughed, and caused serious disruptions in food assistance, air travel, and various public services. As the government resumes operations, its economic and social impacts are gradually becoming apparent.

According to data from the Bank of America Institute, this shutdown has become the longest since 1977, far exceeding the average duration of 8 days. EY's analysis indicates that the shutdown caused an annualized loss of 0.8% in inflation-adjusted U.S. gross domestic product (GDP). In comparison, the average annualized growth rate of the U.S. economy in the first half of 2025 was 1.6%, meaning the shutdown erased about half a year's worth of economic growth.

The Congressional Budget Office (CBO) released forecasts during the shutdown, indicating that the impasse could result in $11 billion in permanent economic losses. This loss stems from a large number of federal employees being furloughed, leading to lost paid working hours that cannot be recovered, even if wages are eventually paid back, economic output cannot be fully compensated.

One of the areas most affected by the shutdown is food assistance. According to official data, approximately 42 million people relying on the Supplemental Nutrition Assistance Program (SNAP) lost benefits during the shutdown, including many low-income families and the elderly. Relevant departments expect benefits to resume within a few days.

At the same time, about 670,000 federal employees were furloughed, while another 730,000 were required to work without pay, causing disruptions in various public services. The White House National Economic Council stated that the shutdown also led to about 60,000 unemployment outside the federal system.

Additionally, the Department of Transportation estimated that on the first day after the government reopened, about 6% of scheduled flights at 40 major airports nationwide would still be canceled. Although this percentage is lower than the previously estimated 8%, full recovery of the aviation system will take time.

In terms of economic indicators, consumer confidence significantly declined during the shutdown. Data from the University of Michigan showed that the November consumer confidence index fell to 50.7, reaching the lowest level since the inflation peak in 2022. As a key indicator accounting for two-thirds of U.S. economic activity, weak consumer sentiment has raised concerns about future consumption momentum.

The bill to end the shutdown passed the Senate with a vote of 60 to 40, including eight Democratic lawmakers voting in favor. In the House of Representatives, six Democratic lawmakers crossed party lines to support the bill, while two Republican lawmakers voted against it.

Due to the shutdown causing multiple government statistical activities to stall, the release of employment and inflation data was affected. The White House stated that the October employment report may not be published on time, and it remains uncertain whether the September employment data will be released.

As government agencies gradually resume operations, the United States is still assessing the real losses caused by this political confrontation. Although most short-term shocks are expected to ease with back-pay and restored services, economists generally believe that this unprecedented shutdown will have a profound impact on future policy and budget negotiations. (American Chinese Television)

Original: www.toutiao.com/article/1848823386877059/

Statement: This article represents the views of the author himself.