How Current Budget Cuts Affect Employment - Essay Example

Legislative leaders persist that the future budget plan released is only the beginning hence will undergo wide revision before the ultimate budget is approved in the legislative session. Conservatives also argue that deep reductions are needed to harness the full benefits of the on-going programs aimed at realizing federal budget cuts. The shrinking government expenditure is spreading, influencing negatively the key sectors of the economy because of closures, job cuts and multibillion-dollar decrease in government services that supply a wide range of the economy (Dwivedi, 2010).

The level of budget cuts would definitely have an impact on the economy since it exceeds what is likely to attribute to ineffectiveness, and it reduces some major programs that the state requires to remain competitive such as healthcare, transportation and education. The most significant effect the current budget cuts is in the education sector where assistance to school districts has been reduced to approximately $9.8 billion. This will directly led to a total loss of 100,000 jobs in school upon implementation.

Significant budget cuts in the health and human services, and Medicaid runs through the healthcare industry, threatening loss of job among approximately 360,000 employees in the 592 hospitals in Texas alone. The Department of Aging and Disability Services, which employs millions of caregivers across the US is likely to be closed if the cuts are affected. This will lead to a massive loss of jobs. Local workers in homes for the elderly will subsequently lose their jobs and reduce expenditure, which would have a substantial on other economic sectors.

State government would likely feel elimination of state jobs, but the reductions could reach elsewhere across the state, affecting positions in regional and district offices of state agencies. The proposed cuts have created anxiety among state workers, many of whom fear that they will eventually join private-sector counterparts in filing for unemployment, writing, and scouring postings. Deep reductions are required to reverse the irrelevant growth of bureaucracies in local school districts and the state government.

Extended public employment, both at the school district levels and the state level, creates an extra strain on the state budget. The loss of a government worker results in the loss of one and half additional jobs when working on the total economic impact. Public job cuts also differ according to location. The loss of a government worker in a rural area or small town would have a more effect than government outpost in densely populated areas, which could absorb the loss easily (Lopus, 2003). Government has a positive effect by promoting growth of business and creates more private-sector jobs, which in turn offer job opportunities for government workers who have been displaced By eliminating childcare services, the states would get rid of all states’ childcare fund, which results to thousands of job loss.

Since many providers work part time as childcare assistants, the proposed cuts affecting the job of child caregivers, would lead to loss of their jobs. In such circumstances, many parents would forego their