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Defense Sector: Trends in Employment and Spending

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Report Type Reports and Testimonies
Report Date April 19, 1995
Report No. NSIAD-95-105BR
Subject
Summary:

The defense sector, as measured by Pentagon spending and military and defense industry employment, has been shrinking, both in absolute terms and relative to the U.S. economy, since the mid-1980s. Declines in Defense Department (DOD) spending and decreases in defense-related employment has occurred during a period of strong increase in the gross domestic product and in nondefense employment. The defense reinvestment and conversion initiative was established in 1993 to help ease the displacement caused by defense downsizing. Not all programs were tied directly to DOD cuts, however. Some individual programs in the initiative also have purposes and will likely continue after the initiative ends in fiscal year 1997.

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