Obamacare may be affecting US jobs, report says
A new white paper shows some ways the American workforce is already feeling the impact of the Affordable Care Act.
Ultimately, the Affordable Care Act will test the stability of the economy, according to a white paper out Monday from Express Employment Professionals, the largest privately held staffing company in the U.S.
Here are three trends emerging from Obamacare already, according to the white paper:
1. The traditional 40-hour work week is threatened. Some companies have said they will cut back on employee hours or positions altogether to avoid the additional financial burdens from the Affordable Care Act. The law requires health insurance for full-time employees, generally those working 30 hours a week or more, at large companies.
But it's hard to find real data to show this trend, however, particularly now that the employer mandate portion of Obamacare has been pushed back to 2015. The restaurant sector in particular was supposed to feel the impact, but so far the effect has been muted. "Other than some anecdotal stories, we have not noticed that trend in the restaurant industry to date," Scott DeFife, executive vice president for policy and government affairs for the National Restaurant Association, told The Cleveland Plain-Dealer.
Even the conservative Heritage Foundation in Washington D.C. was hesitant to connect fewer employee hours with Obamacare. "My read of the data is that while part-time employment has certainly gone up, you can't tie it to the health care law," a labor policy analyst at the foundation told the newspaper. "We have had a very weak recovery."
2. Smaller businesses aren't trying to become larger. The white paper cited an April 2013 Gallup poll of small businesses showing that 41% had frozen hiring in response to Obamacare and 19% had cut headcount.
The law will require companies with more than 50 employees to provide health insurance to full-time workers. A separate poll from the U.S. Chamber of Commerce and Harris Interactive showed that 71% of small business bosses said Obamacare would make them less likely to hire enough employees to move past that threshold.
3. Increased use of staffing companies. Numerous studies have shown that this economic recovery is characterized by a return to low-wage and temporary employment. Last year, 35% of U.S. companies used a staffing company, the white paper said.
But can you attribute the increased use of staffing to Obamacare? That's a tough leap to make, and even the white paper only suggests that the number of temporary employees is expected to increase under the Affordable Care Act. The paper cites as evidence the fact that only 2% of U.S. workers are employed by staffing agencies, while in the U.K. -- which has a legally mandated health care system -- temp agency workers make up some 4% of the labor force.
Still, it's unclear whether the larger percentage of temp workers in the U.K. is related to its health care structure. Germany has a national health care system, for example, yet only 1% of its labor force was comprised of temp workers in 2007. That percentage rose to nearly 3% in 2011 as the economy went through a downturn, according to The New York Times.
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The US can learn from other countries' mistakes, namely Europe. So why don't we stay clear of running down the same destructive path?
I postulate that the last two presidential elections were aberrations -- miserable mistakes. Decades to cure.
The sad thing is, the sad thing is the people going to lose their jobs are the ones this law was supposed to help.
Health Care for All !!!
Freaking delusional progressives have done it again. Until the electorate stops fantasizing and starts taking responsibility for their own lives, we will continue down the black hole of economic and social destruction.
NEW TERM FOR TODAYS Economy " SOCIOBAMALISM"
Am I the ONLY ONE who is disgusted with America has become?
For those that weren't interested in working 40 hour weeks, Obamacare may be your silver bullet. BO is the worst president, but he will be successful in bringing America to its knees. When Atlas shrugs, Obama will move to Kenya.
Home Depot is the latest to stop Health Care to its part time employees and the full time spouses, Millions will end up sign on with the exchanges GEE, I wonder where that money is coming from?
Every promise - lower premiums by $2,500, keep your insurance, keep your doctor, price tag of only $944 billion WHILE reducing the deficit - the media REFUSED to investigate and report exactly why all of it wouldn't hold water. To do the media's job we were called racists for the effort.
The worst is, the writing is on the wall that this whole ordeal is just to get to nationalized care. Isn't that called fraud?
Our media is the most dangerous threat facing America today.
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[BRIEFING.COM] The stock market ended the Tuesday session on a lower note after generally upbeat earnings took the back seat to geopolitical concerns. The S&P 500 (-0.5%) and Nasdaq Composite (-0.1%) ended on their lows, while the Russell 2000 (+0.3%) displayed relative strength.
Once again, market participants were focused on quarterly reports in the early going, but geopolitical worries overshadowed the impact of mostly better than expected earnings. Specifically, equities ... More
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