White House report: Debt limit default could cost 8.3 million U.S. jobs
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[May 04, 2023]
(Reuters) - A protracted default on U.S. payment obligations
could result in the loss of 8.3 million jobs and a 6.1% reduction in
economic output, according to an analysis by the White House Council of
Economic Advisers released on Wednesday.
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People wait in a line outside a newly
reopened career center for in-person appointments in Louisville,
Kentucky, U.S., April 15, 2021. REUTERS/Amira Karaoud/File Photo |
Such an unprecedented default "would likely lead to severe
damage to the economy, with job growth swinging from its current
pace of robust gains to losses numbering in the millions," the
council said in the report.
Even a more modest, "short" default scenario that is quickly
resolved could lead to a loss of 500,000 jobs and a 0.6%
reduction in real GDP, the council said.
(Reporting by David Lawder and Andrea Shalal in Washington; and
Leslie Adler)
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