The United States Commerce Secretary, Penny Pritzker, warns that businesses are being negatively affected by the government shutdown. Ms Pritzker spoke to Asia-Pacific economic leaders at the Asia-Pacific Economic Conference (Apec) on the US economy’s future development.
Fallout from the United States government shutdown is affecting employees of top private sector employers, according to Ms Pritzker. Defence firm Lockheed Martin has been forced to put over 3,000 of its workers on unpaid leave until the situation in Washington is resolved.
The United States has closed many of its non-essential departments during the last week as lawmakers fail to reach an agreement on the country’s budget. The dispute revolves around attempts by the government to introduce comprehensive reforms to the country’s healthcare system, as well as variety of other social programmes.
As the head of the Department of Commerce, Ms Pritzker has warned that the US government shutdown would affect record keeping related to economic growth, employment, and development. Other government departments have also been affected by the shutdown as many workers remain on unpaid leave.
The implications of the shutdown could extend into the private sector, with many companies relying on Commerce Department data and reporting for investments and hiring decisions. Lockheed Martin, one of several companies affected by the government shutdown, announced that it will put more people on leave over the next week.
Other companies to have reduced staffing during the shutdown include defence contractor United Technologies, which manufacturers helicopters for the United States’ military. The company has temporarily laid off over 2,000 of its employees due to the temporary government shutdown.
Several leaders at the Apec meeting in Bali voiced their concerns about the long-term effects of the shutdown, noting that ‘what happens in the United States will affect us all.’
