Government Employment at Post War Low

As the market ponders what effect a government shutdown could have on the economy, below is one data point to consider.  There’s a tendency to think of the Federal bureaucracy as a Leviathan; however from an employment perspective, that’s not exactly the case.  The Federal Government directly employs 2.7 million Americans, which is 1.76% of the US labor force, and the lowest percentage going back to 1948.  The low percentage seems to support an argument that the economic effects of a government shutdown could be relatively contained.

Percent Employed by Government

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