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SALT LAKE CITY -- President Barack Obama announced a pay freeze for 2 million federal employees Monday that will be in effect for two years.
Some 36,000 Utahns will be affected by the freeze, but chief economist for Utah's Department of Workforce Services Mark Knold told KSL federal workers in Utah make up only about 3 percent of the state workforce, so the local economy shouldn't feel too much of a pinch.
The people who will feel the freeze, however, are those 36,400 workers. Knold says they receive other compensations that will lessen the impact of the freeze.
"The benefits, the retirement packages are there. There's the golden handcuffs, as we call it, are in place. Just absorb something like this and move on," he said.
Federal workers do make a higher average wage than private employees. Knold says it's as if they're just now facing the same slump as most others in the state.
The federal salary freeze was announced Monday in order to fight the growing deficit.
E-mail: bbruce@ksl.com
