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April 1993

Employment effects of the rise and fall in defense spending

Norman C. Saunders

Proposed defense spending cutbacks lead to a reduced supply of jobs in both the government and private sectors of the economy. This article examines in detail the decline in employment requirements in the Armed Forces, Department of Defense civilian jobs, and defense-related private sector jobs, and determines how much in the way of job cuts has already been seen in the economy and how much still lies ahead. The article shows which industries and occupations are most likely to be affected by these cutbacks.

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