Monday, May 6, 2013

Obamacare is Beginning to Skew Hiring Patterns

 Not good. WSJ writes:
One big negative in the April [jobs] report is the increase in part-time employment. There was a 278,000 increase in those working part-time "for economic reasons," meaning they would work full-time if they could find such a job. The average hours worked in a week also fell, to 34.4 from 34.6, and the average weekly earnings fell to $821.13 from $824.52. 
The broadest measure of unemployment, which includes involuntary part-time employment and discouraged workers who drop out of the labor force, rose to 21.9 million and an abysmal rate of 13.9%. 
All of this suggests that ObamaCare is beginning to skew hiring patterns. Employers will soon have to offer health-insurance or pay a penalty for full-time workers, which the health law defines as anyone who works at least 30 hours a week. Many small businesses appear to be limiting their employees to fewer than 30 hours, perhaps with job-sharing or even by splitting employees with other employers.
Obamacare is going to cause mass distortions in the healthcare sector and jobs sector of the economy. It will not be pretty. If most of Obamacare stays in tact, the ultimate result down the road will be a decline in life expectancy in the United States and a barbell job market. Lots of part time employees here and others here, with fewer holding down full time jobs.

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