This paper examines the local labor spillover effect of mergers and acquisitions (M&As). By focusing on M&As in the manufacturing sector, I find that, in the metropolitan statistical areas (MSAs) where target firms reside, the negative effect of M&As on employment growth spills over from the manufacturing sector to the non-tradable sector through shrinking local consumer demand. Further tests with household-level data confirm this finding. The spillover effect is stronger when M&A transactions are horizontal and when an MSA relies more heavily on the manufacturing sector. Finally, lower minimum wage requirements may absorb the negative pressure from M&As on the non-tradable sector employment growth.