With economic uncertainty already a top workers compensation industry concern, the recent government shutdown has added further angst despite surprisingly solid Gross Domestic Product (GDP) growth in Q2 and through most of Q3. The 2025 government shutdown was the longest government shutdown in history, lasting for 43 days. While government shutdowns have not been rare over the past several decades, most are short-lived, and the general consensus suggests that impacts to the economy grow the longer the shutdown persists.
In this brief, we will look at the recent history of government shutdowns to assess the potential impacts of the 2025 shutdown on the economy and on workers compensation.
Key Themes and Takeaways
- Government shutdowns are not rare, but past government shutdowns have had only limited or temporary impacts on the economy and minimal impact on workers compensation.
- Although the 2025 government shutdown was the longest in history, increasing economic uncertainty, we see little reason to suspect that 2025 will prove different from prior years.
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Quarterly Economics Briefing to learn more.
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