Marketplace Morning Report Contractors hit hard by government shutdown
Oct 14, 2025
As the government shutdown lingers, federal employees aren’t the only ones feeling the pinch—contract workers face significant financial uncertainty with no guarantee of pay. Meanwhile, new tariffs have been rolled out affecting lumber and furniture imports, hitting markets hard. Despite a decrease in overall merger activities, large companies are striking mega-deals, drawn by lower risks and strategic advantages. Experts weigh in on the implications of these high-stakes corporate moves and their potential impact on mid-sized firms.
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Contractors Lack Shutdown Pay Protections
- The 2019 law promises back pay for furloughed federal employees once the shutdown ends.
- Millions of government contract workers lack any guaranteed pay during the shutdown.
Boom In Federal Contracting
- Contractors now outnumber federal employees roughly two to one, driven by a rise in contracting.
- That growth spans high-value defense work down to janitors, cafeteria staff, and security guards.
Melwood Workers Face Furloughs And Unpaid Work
- Jewelyn Cosgrove describes Melwood's workforce where many employees hold first jobs or reentering the labor market.
- Some Melwood workers have been furloughed while others work without pay, with the nonprofit hoping to make them whole later.