President Obama may have delayed the employer mandate in the so-called Affordable Health Care Act, but its effect on the economy remains. It’s simply a drag.
The employer mandate requires employers with more than 50 employees working at least 30 hours a week to provide health benefits or pay $2,000 an employee.
Employers aren’t dupes. Many who fall into this category are shifting to part-time workers and reducing the number of full-timers, which Obamacare defines as 30 hours a week.
Here are some figures complied by Mortimer Zuckerman, editor in chief of U.S. News and World Report:
In June the government’s Household Survey said there was an increase of 753,000 people with jobs, but out of that total 557,000 were part-time. That same survey said the number of full-time jobs declined by 240,000 while part-time jobs increased by 360,000. The number of part-time jobs is now more than 28 million, 3 million more part-time positions than when the recession began in 2007.
It’s not all Obamacare’s fault. Part of the shift to part-time workers is a result of cutting expenses as the economy slowed and business slowed along with it. Part is uncertainty about taxes and increasing regulation by the federal government. But Obamacare is definitely a drag on the economy.