Economist: Economic impact of massive U.S. government layoffs likely to be limited

Under the direction of the US government efficiency department, US federal agencies have recently been laying off employees one after another. Despite increasing lawsuits, it seems that the government's elimination of funds and personnel may continue.

So far, its long-term impact is unclear. Although the market has reacted negatively to policies such as tariffs, investors do not seem to be worried about federal government layoffs; just last week, the S&P 500 index hit new highs twice. The US federal government employs 3 million people, accounting for approximately 1.9% of all non-military employment in the US. Pajie Investment Company stated that as of last Friday, 29,000 federal employees had been laid off. So far, economists have not issued any warnings about this.