Sequester unlikely to derail Minn. economy, Stinson saysby Annie Baxter, Minnesota Public Radio
ST. PAUL, Minn. — Across-the-board federal budget cuts known as the sequester are unlikely to derail the state's economy, says Tom Stinson, state economist.
Without Congressional action today, $85 billion of spending cuts will begin to take effect Friday.
In his state budget forecast out Thursday, Stinson said Minnesota has limited exposure to the federal cuts in question and employment here will not take a big hit. Even if the sequester lasts a year, Stinson estimates Minnesota's job growth would decline by no more than 5,000 jobs in 2013.
"If jobs were forecast to grow about 40,000 in 2013 they would only grow by 35,000," Stinson said.
The state's economic forecasting firm Global Insight expects the sequester will last only about two months, Stinson said. To compare, 5,000 jobs is slightly more than Minnesota added each month on average last year.