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Federal shutdown could erase nearly 1 in 5 Mississippi paychecks

JACKSON, Mississippi – The state’s Gross Domestic Product could sustain a severe blow should the federal government shutdown go on for an extended time.

sink economyPaychecks earned by federal workers made up 18.1 percent of Mississippi’s GDP in 2012, accordiong to the Bureau of Labor Statistics.

The Magnolia State also has the fourth highest percentage – 22.1 percent – of federal workers as a portion of the total workforce, the BLS says.

Only Wyoming – 25.2 percent, Alaska – 24.9 percent and New Mexico — 23.7 percent have a higher percentage of federal employees.

Meanwhile, with a default on the federal debt looming  for Oct. 19, Mississippi could find itself in a long line waiting for federal dollars that normally come its way. “We won’t know the full consequences” until a default occurs, Mississippi Treasurer Lynn Fitch said in a recent interview.

“However, we have some rainy-day money,” Fitch added, expressing hope that if the state does dip into its reserves to cover any shortfalls in federal dollars it will be repaid at some point.

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