New analysis by a Aerospace Industries Association study revealed that 956,181 small business jobs are at risk under sequestration.
According to the report, these findings increase concern about job losses across defense and non-defense employers when the Budget Control Act takes effect on January 2, 2013.
The study conducted by Dr. Stephen S. Fuller, Dwight Schar Faculty Chair and director for Regional Analysis at George Mason University, in conjunction with Chmura Economics and Analytics, projected a loss of 2.14 million American jobs due to the budget cuts.
AIA president and chief executive officer Marion C. Blakey said sequestration may equally harm “Main Street and Wall Street“ when the $1.2 trillion budget cuts are implemented on federal programs.
Fuller concluded that businesses with 500 or fewer employees will suffer nearly half of the job losses in the first year of sequestration.
“This is a crucial finding given the importance of small business job creation to the economy and their role as sources of innovation for national defense,“ he said.
The U.S. Census Bureau reported that small businesses create 90 percent of all new jobs annually.
“From a national security perspective, letting the avoidable occurrence of sequestration force small businesses to exit the defense industry or go out of business altogether would not only hurt our economy, but taxpayers,“ commented Mackenzie Eaglen, resident fellow at the Marilyn Ware Center for Security Studies.
Roger A. Campos, president and CEO of the Minority Business Roundtable, said the current uncertainty has already caused business owners to stop hiring.