Federal Reserve Surveys Show Health Law Hurts Hiring
(Washington, D.C.) – According to surveys by the Federal Reserve banks in Philadelphia, New York, and Atlanta, the Affordable Care Act (ACA), also known as Obamacare, is discouraging businesses from hiring. A study released by the Philadelphia Federal Reserve bank shows that 18 percent of companies are cutting jobs and employees, while many are using more part-time workers instead of full-time, or passing on higher insurance costs to employees. The survey by the New York bank shows that about 20 percent of firms say the ACA is leading them to reduce the number of workers employed. About a third of employers told the Atlanta Federal Reserve bank they are hiring more part-time employees than in the past. As the modified employer mandate under Obamacare is scheduled to take effect in 2015, this may be a reaction to those provisions of the health care law that require companies to offer insurance to full-time workers, but not part-time employees.
Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:
"The last thing struggling workers, families, and small business people need is another drag on a weak economy. Unfortunately, the new health care law is precisely that. It imposes taxes and mandates that make it costlier and harder for entrepreneurs to grow their workforces. That means more Americans wind up looking for work – or settling for part-time employment – and fewer finding jobs that allow them to build a better future. This is a serious concern for Hispanics in particular, who are already more than 60 percent more likely to be forced into part-time work than others.
The problems with health care will not be remedied until the president acknowledges that the debate is not over and is willing to reach across the aisle and work with members of both parties on bipartisan fixes. With enrollment set to resume in just a few months – with higher insurance premiums and narrower networks – it is high time to start that process."