U.S. federal government officially shut down at 12:01 a.m. Eastern Time on Wednesday because the Democratic and Republican parties failed to reach an agreement on short-term spending plans.

Government shutdowns can impact the economy in various ways, from hundreds of thousands of federal employees not being able to receive their pay on time to delays in the release of key economic indicators, with wide-ranging effects. However, the duration of the shutdown is crucial—the longer it lasts, the greater the impact on economic growth and businesses that rely on the daily operations of the federal government.

The government shutdown comes at a sensitive time for the U.S. labor market: throughout the summer, U.S. employment growth has stalled. Due to the furlough of government data department personnel, the September nonfarm payroll report scheduled for release this Friday is highly likely to be delayed, causing economists and investors to lose this important reference point.