logo
Job applications surging among DOGE's targets

Job applications surging among DOGE's targets

NBC News25-03-2025

'What we see is that 70% of them have a bachelor's degree or above,' Stahle said. 'This is a really educated group of job seekers.'
Stahle noted that the influx is happening amid a historically weak market for such sectors, saying: 'It's going to increase the competitiveness of the labor market.'
In addition, jobs affected by cuts are often highly specialized. 'If you are a displaced USDA worker with a background in horticulture, you know, what do your prospects look like right now?' Stahle said.
Job searchers, who Stahle said tended to be mid- to senior level, also were in their current jobs for longer, with an average tenure of 11 years, according to federal data.
Treasury Secretary Scott Bessent indicated Monday that fired workers will get the chance to look for jobs in the private sector, but the shocks could extend beyond job-seeking.
Unemployment, among other data points, is an early indicator of recessions. Thus far, it — along with other relevant data points, such as the yield curve and consumer spending — have held relatively steady. But plunging consumer sentiment could be a signal of what's to come.
Economist Claudia Sahm, a former Federal Reserve and White House economist who created a widely used indicator, the 'Sahm Rule,' to identify oncoming downturns through unemployment, cautioned that cuts could damage consumer spending. That's even among those who are not directly affected.
'Many of them won't lose their job, because we do need a certain number of federal workers to make everything go,' Sahm told NBC News. 'But at this point there are a lot of people who are very uncertain from day to day what their employment is.'
'Are they going to go out and buy a house? Are they going to go buy a car?' Sahm asked, sharing a gray outlook for consumer spending: 'The very rational response would be don't go out and buy stuff.'
The overall risk to the economy is small, Sahm said, because federal workers made up less than 2% of the overall U.S. labor force. But she warns that while DOGE alone might not cause a recession, it could lead to one.
'The fast-moving process of DOGE is adding unnecessarily to the risks,' Sahm said on her blog. 'Once they take hold, recessionary dynamics are difficult to avoid and costly to 'fix.''

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Key points announced ahead of Rachel Reeves' spending review
Key points announced ahead of Rachel Reeves' spending review

Leader Live

time3 minutes ago

  • Leader Live

Key points announced ahead of Rachel Reeves' spending review

The review, which will set out day-to-day spending plans for the next three years and capital spending plans for the next four, is expected to see boosts for the NHS, defence and schools. But it is also likely to involve squeezes for other departments as the Chancellor seeks to keep within the fiscal rules she has set for herself. Her room for manoeuvre has also been further constrained by the Government's U-turn on winter fuel payments, which will see the benefit paid to pensioners receiving up to £35,000 per year at a cost of around £1.25 billion to the Treasury. The full details will be revealed in the Commons on Wednesday, but several announcements have already been made. They include: – £15.6 billion for public transport projects in England's city regions; – £16.7 billion for nuclear power projects, including £14.2 billion for the new Sizewell C power plant in Suffolk; – £39 billion over the next 10 years to build affordable and social housing; – An extension of the £3 bus fare cap until March 2027; – £445 million for upgrades to Welsh railways. The Chancellor is also expected to announce changes to the Treasury's 'green book' rules that govern whether major projects are approved. The Government hopes that changing the green book will make it easier to invest in areas outside London and the South East.

Key points announced ahead of Rachel Reeves' spending review
Key points announced ahead of Rachel Reeves' spending review

The Herald Scotland

time12 minutes ago

  • The Herald Scotland

Key points announced ahead of Rachel Reeves' spending review

But it is also likely to involve squeezes for other departments as the Chancellor seeks to keep within the fiscal rules she has set for herself. Her room for manoeuvre has also been further constrained by the Government's U-turn on winter fuel payments, which will see the benefit paid to pensioners receiving up to £35,000 per year at a cost of around £1.25 billion to the Treasury. The full details will be revealed in the Commons on Wednesday, but several announcements have already been made. They include: – £15.6 billion for public transport projects in England's city regions; – £16.7 billion for nuclear power projects, including £14.2 billion for the new Sizewell C power plant in Suffolk; – £39 billion over the next 10 years to build affordable and social housing; – An extension of the £3 bus fare cap until March 2027; – £445 million for upgrades to Welsh railways. The Chancellor is also expected to announce changes to the Treasury's 'green book' rules that govern whether major projects are approved. The Government hopes that changing the green book will make it easier to invest in areas outside London and the South East.

Key points announced ahead of Rachel Reeves' spending review
Key points announced ahead of Rachel Reeves' spending review

Western Telegraph

time21 minutes ago

  • Western Telegraph

Key points announced ahead of Rachel Reeves' spending review

The review, which will set out day-to-day spending plans for the next three years and capital spending plans for the next four, is expected to see boosts for the NHS, defence and schools. But it is also likely to involve squeezes for other departments as the Chancellor seeks to keep within the fiscal rules she has set for herself. Her room for manoeuvre has also been further constrained by the Government's U-turn on winter fuel payments, which will see the benefit paid to pensioners receiving up to £35,000 per year at a cost of around £1.25 billion to the Treasury. The full details will be revealed in the Commons on Wednesday, but several announcements have already been made. They include: – £15.6 billion for public transport projects in England's city regions; – £16.7 billion for nuclear power projects, including £14.2 billion for the new Sizewell C power plant in Suffolk; – £39 billion over the next 10 years to build affordable and social housing; – An extension of the £3 bus fare cap until March 2027; – £445 million for upgrades to Welsh railways. The Chancellor is also expected to announce changes to the Treasury's 'green book' rules that govern whether major projects are approved. The Government hopes that changing the green book will make it easier to invest in areas outside London and the South East.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store