Federal furloughs and decisions not to fill recently vacated positions will reduce income in the D.C. area by $2 billion over the course of this year, according to economist Stephen Fuller, director of the Center for Regional Analysis at George Mason University.
That income would have otherwise gone to locally based federal employees, and represents a 5 percent reduction in the $42 billion total federal payroll in the Washington, D.C. metropolitan area.
Furloughs at the Pentagon have already begun to take a toll on the local economy, he added, even before they have officially started.
"We've seen some of the effects already, because if you know you're going to lose 20 percent of your salary over the next 11 weeks ... you're saving in anticipation," Fuller told the Washington Examiner. "The performance during the second quarter of this year has shown some weakness, and I think that's partially attributable to the anticipation of furloughs."
Beginning next week, some 680,000 Pentagon civilian employees will be furloughed for up to 11 days over the summer.