The Employment Impacts of Cuts to Federal Spending: Not All Cuts Are Created Equal

Costs of War’s latest report, “The Employment Impacts of Cuts to Federal Spending: Not All Cuts Are Created Equal,” finds federal dollars create more jobs when invested in education or healthcare than in the military.

The majority of the federal workforce involves militarized sectors, including the military, homeland security, and more. But military spending is inefficient for employment: spending on education and healthcare would create more jobs while reducing the federal budget, according to a new report from the Costs of War project.

The analysis, an update to a previous report from 2023, reveals that military spending (including both federal defense spending and various private military industries) produces an average of five jobs per $1 million in spending, including both direct jobs and jobs in the supply chain. By contrast, 13 jobs are created for every $1 million in education spending – nearly three times as much employment. Healthcare spending creates 84% more jobs than military spending, while infrastructure and clean energy create from 24% to 64% more.

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