Local economy to be impacted by government shutdown, economist says

HARLINGEN, Texas (ValleyCentral) — If Congress fails to reach a deal tonight, thousands of federal employees, both across the world and in the Valley, could be required to keep working without pay.

Teo Sepulveda, an economist at South Texas College, notes that federal employees comprise 10 to 15 percent of the Valley's labor force, with the majority residing in McAllen. He notes that local Border Patrol agents will likely be the first to feel the financial impact of a government shutdown.

However, he says it is not only federal employees who would be affected. Small businesses could also feel the impact.

"Most businesses will have about 10 to 15% of their customers slow down their typical rhythm of business for, let's say, two or three weeks,” Sepulveda says. “Which usually, in the big