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Tuesday, May 07, 2013

Sequestration Cuts Expected To Hit Job Market Over Summer

The sequester will take a bigger bite from the economy in the coming months as workers collect more unpaid leave and additional spending cuts are triggered, several economic experts predicted Monday.

A strong employment report in April that found the economy added 165,000 jobs underlined the sense that the labor market is improving, but observers warn it’s too early to declare the economy is safe from sequestration.

“The fiscal drag is going to reach its peak in the second and third quarter, and we know that’s going to be around 2.5 percent of GDP,” said Andrew Busch, a political and economic strategist who advised Sen. John McCain (R-Ariz.) in his 2008 presidential campaign.

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