According to a report in the Elizabethtown News Enterprise, about 7,000 civilian workers at the large military base will be part of the sequestration of federal funds on March 1, 2013.
They will most likely lose one day of work each week for up to 22 weeks. This will equal about the lost of 20% of their pay.
Brad Richardson, executive director of Hardin County Chamber of Commerce, said he expects many families to cut back on discretionary spending if cuts are implemented.
"No doubt about it, if it is implemented, it will have an impact," Richardson said.
Fort Knox is the largest employer in the area. Akebono is the largest industrial employer with 1,300 workers at its Hardin County plant, according to the Kentucky Cabinet for Economic Development. Other large employers include Hardin Memorial Health with about 2,000 full-time workers and Hardin County Schools with about 2,600 employees.
Fort Knox spokesman Kyle Hodges says jobs on post also usually pay higher. The average wage of a civilian worker at Fort Knox is about $53,000, while the median household income is $47,000, according to Census data.
Defense Department officials have said employees would receive 30 days' notice before furloughs begin, possibly in late April.