Many businesses in low-wage industries have hired more part-time workers and cut the hours of full-timers recently to soften the impact of new health law requirements that take effect Thursday, some consultants say.
Do tell! And how long have some been saying that? Did it only just occur to them? Because some others, those very few who actually read and considered the law (no members of Congress in their number), have not only said that, but predicted it.
The strategies have had only a modest impact on job growth, which has accelerated substantially this year, but could take a somewhat bigger toll next year as firms gear up for an expanded health care mandate in 2016.
A modest impact? Maybe nobody read the ObamaCare bill—but did they not read the latest unemployment stats?
Among the employed in November, the number of people working part time for economic reasons, at 6.9 million, changed little over the month.
The number has been creeping down over the year (year six of the recovery), but I did note that those who “could only find part-time work” ticked up by 6,000 last month.
But there’s only so much lipstick this pig can take:
A majority of small businesses say the Affordable Care Act already has hurt their profits, forcing them to reduce or postpone investment, withhold raises or trim other types of benefits, according to a new survey by the top small-business trade group.
[T]he number of part-time workers who say they’d prefer full-time jobs has remained stubbornly high. That can at least partly be traced to the inclination of the restaurant, retail and hotel industries to hire more part-time workers to sidestep the ACA mandate, Royal Bank of Scotland wrote in a recent report.
Forty-two percent of the 900 firms surveyed say their health plan costs have risen at least 10% this year. As a result, 37% are delaying or postponing investment, and 26% are freezing or reducing wages.
Mike DeVoge, owner of a 12-employee marina in Conneaut Lake, Pa., says costs for the six workers who are eligible for insurance recently increased 40% and are set to rise another 60% in 2016. That, he says will likely force him to freeze wages and drop health benefits in a year.
When Obama said he thought about the economy from the first thing in the morning to the last thing at night, we should have known this was coming. But it’s all good, because the equivalent of the population of Eritrea signed up for ObamaCare this year.