Is Obamacare Responsible for the Surge in Part-Time Jobs? What About Obama's Defense Layoff Suspensions?

Courtesy of Mish.

Following the surprise drop in the unemployment rate last Friday, I have seen many conspiracy charges leveled against the BLS.

I do not believe any of the conspiracy charges. Had Obama instructed the BLS to juice the numbers, someone in the BLS would surely be yapping. They are not all Democrats. Many were hired under President Bush.

Is Obamacare Responsible for Surge in Part-Time Jobs?

Some stated the 582,000 surge in part-time workers was a seasonal thing based on teachers going back to work. I do not buy that explanation either because the surge in part-time workers and the decline in the unemployment rate were seasonally adjusted.

One likely explanation is an outlier and the data will be revised lower soon enough (or the previous month’s of weakness up). There is a second possible explanation although the timing as to precisely when it would matter is uncertain.

Please consider Staffing Companies: How to Profit from Obamacare’s Job Outsourcing.

Obamacare is so huge and transformative, its effects will be felt far beyond just the healthcare sector; its tentacles of government control and penal taxes will permeate and affect the entire U.S. economy.

According to the Heritage Foundation – a Washington think tank – Obamacare’s employer mandate will increase the cost of employing a single minimum-wage employee by $3,588 per year. The employer burden is even greater for minimum-wage employees with a family; in that case, the extra cost will be $11,026 per year.

You might think that one way around this problem would be for employers to offer unskilled workers cheaper health insurance with higher deductibles. Think again. Obamacare has a non-discrimination provision that says that if an employer offers health insurance, all full-time employees must be offered the same “minimum essential benefits” and at a cost that is no higher than 9.5% of the employee’s household income.  Bottom line: there is no escape for employers of full-time workers.

The only solution is for employers to eliminate full-time employment positions for unskilled workers earning near minimum wage. Since businesses need unskilled workers for certain functions, employers will only offer temporary and part-time positions to these poor workers because temporary and part-time jobs are exempted from Obamacare’s employer mandate provisions.

Diana Furchtgott-Roth, former chief economist at the U.S. Department of Labor and now a Senior Fellow at the Manhattan Institute, came to a similar conclusion:

If an employer offers insurance, but an employee qualifies for subsidies under the new health care exchanges because the insurance premium exceeds 9.5 percent of his income, his employer must pay $3,000 per worker. This combination of penalties gives businesses a powerful incentive to downsize, replace full-time employees with part-timers, and contract out work to other firms or individuals.



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