A government shutdown affects multiple areas including federal employees, national parks, travel, government services, and the economy.
Federal Employees and Pay
- Many federal workers, about 40% or 800,000 individuals, will be furloughed and placed on unpaid leave during the shutdown. Essential workers such as TSA officers, air traffic controllers, military personnel, and some law enforcement agents will continue working but without pay initially. Back pay is typically given once the shutdown ends, but there is a risk of layoffs if the shutdown is prolonged. Federal contractors usually do not get back pay and may lose work entirely during the shutdown.
Travel and Public Services
- Air travel faces delays due to fewer air traffic controllers working and TSA staff shortages, resulting in longer security lines. Passport processing and other federal services like health inspections and Social Security inquiries may slow down. National parks and Smithsonian museums often close during shutdowns, and ongoing research in agencies like CDC and NIH may suffer from staffing reductions.
Economic Impact
- Shutdowns typically cause a temporary economic slowdown—about 0.15% weekly decline in economic growth if large numbers of workers are furloughed. While the economy often recovers lost output later with back pay, a prolonged shutdown can hurt consumer sentiment and spending, potentially amplifying economic fragility. Some $3 billion in economic activity was lost during the 2018-2019 shutdown and never fully recovered.
Continuation of Mandatory Government Spending
- Mandatory programs like Social Security, Medicare, and Medicaid continue during the shutdown, though some delays in services can occur. Essential national security functions also continue, albeit without immediate pay.
Additional Effects
- The shutdown disrupts the release of key economic data, complicating policy decisions such as those by the Federal Reserve. Global markets may show volatility due to uncertainty around government functionality.
In summary, a government shutdown causes furloughs of many federal workers, delays and reductions in public services including air travel and national parks, temporary economic slowdown, and interruption or delay in government operations except for essential and mandatory spending programs.
