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Monday 25 July 2011

Thousands of FAA employees lose jobs

The Federal Aviation Administration (FAA) of the United States has been partially shut down, as the US Congress failed to reauthorize the agency's funding.


About 4,000 employees will be temporarily out of work and without pay, as the US Senate on Friday failed to approve a controversial House-passed extension of taxes that could fund the FAA. 

“The FAA employees who will be furloughed perform critical work for our nation's aviation system and our economy,” FAA Administrator Randy Babbitt said in a statement. “These are real people with families who do not deserve to be put out of work during these tough economic times.” 

With the Republicans controlling the House and the Democrats taking over the Senate, each blame the other for failing to pass an FAA reauthorization. 

The US Senate failed to extend the FAA's operating authority on Friday afternoon because of disagreements over amendments placed on the bill by the House of Representatives. House Republicans added a provision eliminating about USD16.5 million in subsidies for airline service to 13 rural communities in 10 states. 

Currently the unemployment rate in the United States stands at 9.2 percent, the worst level since President Ronald Reagan was in office in the 1980s. The FAA shutdown and the 4,000 job losses will be an additional burden on the countries struggling with economy. 

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