US Shutdown: Mass Layoffs Imminent Very Soon?

Amidst the US government shutdown, Press Secretary Karoline Leavitt indicated that mass job cuts could happen before the end of the week. When the reporters pressed for the timeframe, she said “two days, imminent, very soon” and promised further updates. “Sometimes you have to do things that you don’t want to do,” Leavitt said, blaming the Democrats for putting them in such a position.

Vice President JD Vance, who was present with Leavitt, reiterated the threat of permanent layoffs of federal workers.

According to White House, mass layoffs of US federal workers are imminent and could result in people permanently losing their jobs within days. The current shutdown is the first for almost seven years, and thousands of workers have been put on unpaid leave. Agencies and activities deemed essential are still open, but many employees will be working without a paycheck, and the Trump administration has signaled thousands of government layoffs could begin soon.

Essential workers, including border agents and the military, may be forced to work without pay for the time being – but government employees deemed non-essential are temporarily put on unpaid leave.

In the past, these workers have then been paid retrospectively.

US President Donald Trump has called on Republican allies to use it as an opportunity to make more lasting cuts. The shutdown began on Wednesday after a difference of opinion among the Republicans and Democrats in the Congress on the new spending plan.

Currently, the Senate is adjourned, leading to fear that the uncertainty could continue and threaten hundreds of thousands of jobs, as well as risk costing the US economy billions in lost output.

Meanwhile, analysts fear that the current shutdown could happen on a larger scale than the last one witnessed in 2018, when Congress had passed some funding bills. They also anticipate that roughly 40% of federal workers, counting up to 750,000 people, will be put on temporary leave.