Obamacare Means Less Hiring In 2013

not hiring iStock

Obamacare, or the Affordable Care Act as it is officially known, has been held up by its supporters as a boon to working-class Americans. It was supposedly going to make health insurance, and health care, more affordable (thus the name) and easier to get.

The reality, unfortunately, is that the bill institutes big new taxes and reams of new regulations that actually make health insurance and health care more expensive and harder to get. That’s bad enough, but in addition to making health care/insurance harder, the law is also going to make it tougher for many Americans to find a job.

Many businesses plan to bring on more part-time workers next year, trim the hours of full-time employees or curtail hiring because of the new health care law, human resource firms say.

Their actions could further dampen job growth, which already is threatened by possible federal budget cutbacks resulting from the tax increases and spending cuts known as the fiscal cliff.

“It will have a negative impact on job creation” in 2013, says Mark Zandi, chief economist of Moody’s Analytics.

Under the Affordable Care Act, businesses that employ at least 50 full-time workers — or the equivalent, including part-time workers — must offer health insurance to staffers who work at least 30 hours a week. Employers that don’t provide coverage must pay a $2,000-per-worker penalty, excluding the first 30 employees.

The so-called employer mandate to offer health coverage doesn’t take effect until Jan. 1, 2014. But to determine whether employees work enough hours on average to receive benefits, employers must track their schedules for three to 12 months prior to 2014 — meaning many are restructuring payrolls now or will do so early next year.

At the beginning of his term in office, President Obama’s economic advisers predicted that because of their “stimulus” policies unemployment would be down to 5.2% by December of 2012. Obviously, we’re nowhere near that as unemployment is actually 7.8% and this observer is beginning to wonder if unemployment rates at or near 8% are going to be the “new normal” in America thanks to policies like Obamacare.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

Related posts

  • mickey_moussaoui

    How does it feel knowing that the idiots are making all the decisions now?

    • $16179444

      Hanni is making decisions?

      • mickey_moussaoui

        heh

      • Bat One

        His mom told him to clean his room and make his bed or move out. Tough decision.

  • WOOF

    Moody’s is your source?
    Moody’s gave Lehman’s and Bear Stearns top investment grade
    ratings until just before their collapse.
    Moody’s who gave investment grade ratings to mortgage backed securities
    and collaterized debt obligations full of bad and fraudulent mortgages.

    • Bat One

      Typical liberal short-cut. Don’t like what’s said – disparage the speaker. Here’s an idea, WOOF: If you think Mark Zandi’s assessment is wrong, offer up some proof to that effect!

      As for the investment grade ratings on those CDOs and other MBSs, the truth is that Moodys was correct. Because of the implicit federal guarantee attached to GSE issues, reform of which liberals like you had fought for years and years, the government was ultimately forced to make good on those guarantees by bailing out Fannie, Freddie, and the other firms that had issued and/or guaranteed those bonds.

      Speaking of Moodys (http://www.presstv.com/detail/2013/01/04/281758/fiscal-cliff-deal-does-not-relieve-us-debts/), had you seen this,

      Senior vice president for sovereign risk at Moody’s Investors Service, Steven Hess, said the agency calculations show that the ratio of federal debt to gross domestic product would peak at about 80 percent in 2014 and remain in the upper 70-percent range for the rest of the decade.
      Such high debt “would leave the government less able to deal with future pressures from entitlement spending or from unforeseen shocks,” he said, adding, “Further measures that bring about a downward debt trajectory over the medium term are likely to be needed to support the Aaa rating.”

      Moody’s “expects that further fiscal measures are likely to be taken in coming months that would result in lower future budget deficits, which are necessary if the negative outlook on the government’s bond rating is to be returned to stable,” Hess said.

      He warned that failing to achieve deficit reductions “could affect the rating negatively.”

      • WOOF

        I can leave at you believe the guy knows what he is talking about and I don’t.

        • Bat One

          I don’t suppose you’d care to wager which side the investors/market will take if Moody’s, or S&P, or Fitch decides to downgrade the US credit rating.

    • $16179444

      yeah, because its only Moody’s reporting this…… *sigh*

Top