Best of the Week
Most Popular
1.London House Prices Bubble, Debt Slavery, Crimea 2.0 - Russia Ukraine Annexation - Nadeem_Walayat
2. Gold And Silver – 2014 Coud Be A Yawner; Be Prepared For A Surprise - Michael_Noonan
3.Sheffield, Rotherham Roma Benefits Plague, Ch5 Documentary Gypsies on Benefits & Proud - Nadeem_Walayat
4.Glaring Q.E. Failure Spotted - Money Velocity Is Falling Rapidly - Jim_Willie_CB
5.Don't Miss the Boat on Big Biotech Catalysts: Keith Markey - Keith Markey
6.Gold Prices 2014: Do What Goldman Does, Not What It Says - David Zeiler
7.Bitcoin Price Strong Appreciation to Be Followed by Declines? - Mike_McAra
8.Gold Preparing to Launch as U.S. Dollar Drops to Key Support - Jason_Hamlin
9.Doctor Doom on the Fiat Money Empire Coming Financial Crisis - Andrew_McKillop
10.The Real Purpose Of QE - It’s Not Employment - Darryl_R_Schoon
Last 72 Hrs
What Will December 31, 2014 Financial Headlines Look Like? - 23rd Apr 14
Why Gasoline Prices are Surging Again - 22nd Apr 14
Cold War 2.0 - 22nd Apr 14
The JIS – Junk Ideology Syndrome - 22nd Apr 14
How to Avoid Losing All Your Money - 22nd Apr 14
Silver Up, Stocks S&P Down - 22nd Apr 14
U.S. Mainstream Media Propaganda Setting the Stage for War With Pakistan - 22nd Apr 14
U.S. Interest Rates are NOT Rising! - 22nd Apr 14
A Crisis vs. the REAL Crisis: Keep Your Eye on the Debt Ball - 22nd Apr 14
Bitcoin Implications of Lack of Price Action - 22nd Apr 14
Japan - The Twilight Of The Rising Sun - 22nd Apr 14
Is This What a Credit Bubble Looks Like? - 22nd Apr 14
The Dark Side Of The Silver Mining Industry - 21st Apr 14
Strong U.S. Dollar Rally Could Pull Rug From Under Gold and Silver - 21st Apr 14
Silver Feeble Rally Fails to Hold Breakout, Falling Back Towards Support - 21st Apr 14
Stock Market Smart Money – All Out or More to Go? - 21st Apr 14
Fast Rising Pump Prices Counterattack - 21st Apr 14
Extreme Climate Change And Life On This Planet - 21st Apr 14
Gold and Silver Stocks Sitting Tight - 21st Apr 14
Stock Market Minor Correction Imminent - 21st Apr 14
Gold and Silver - Counting Blessings and Tender Mercies - 20th Apr 14 - Jesse
The CIA Through The Looking-Glass - 20th Apr 14 - Stephen_Merrill
Gold And Silver - Gann, Cardinal Grand Cross, A Mousetrap, And Wrong Expectations - 20th Apr 14 - Michael Noonan
Nikkei Stock Market - Sell Japan - 20th Apr 14 - WavePatternTraders

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Is Obamacare Creating a Part-Time America?

Politics / US Politics Jul 23, 2013 - 12:33 PM GMT

By: Money_Morning

Politics

Frank Marchant writes: America has become a part-time nation. The Bureau of Labor Statistics recently reported that in June part-time employees in the labor force reached an all-time high of 28 million, 3 million more than when the recession began in 2007.

The economy lost 240,000 full-time jobs in June and added 360,000 part-time jobs, the BLS noted. Of the 753,000 jobs created this year, 589,000 were part time.


The real unemployment rate in June, the U6, stood at 14.3%, up from 13.8%, a figure that includes part-time workers seeking full-time jobs and those who have become discouraged and are no longer looking for work.

Now many economists and many in the financial press with sympathies to the administration have attributed the rise in part-time America to uncertainty among employers about future profitability and growth and not to the looming Obamacare mandate.

It's ironic that in trying to play down Obamacare's influence on the job market, they end up dissing the president's stewardship of the economy.

However, Obamacare has likely played a significant role in the part-time job wave. Under the Affordable Care Act, companies with 50 or more full-time workers must provide health insurance to all full-time employees, those working 30 or more hours per week.

So if your workers don't work 30 hours per week you don't have to provide health insurance. It makes economic sense to have a part-time work force in many cases. Even with the administration's recent one-year extension of implementing the employer mandate until 2015, most small companies are still preparing to it.

A reported 74% of small businesses are positioning themselves to slash hours, layoff workers or both.

Obamacare is leading to lifestyle changes in the workforce. Instead of having one job, people are beginning to work two or three part-time jobs. The cost of employees transporting themselves between several jobs will be more expensive than commuting to just one.

Though the economy still makes it a rough slog for many business owners, they state that their biggest challenge is Obamacare as seen in the chart below.

Challenges facing small business today

From the Washington Examiner

Many companies already are in the process of adjusting their work environments to the changes brought on by Obamacare. Some of these firms include.

Walmart: (From Reuters), "This is a new company policy": an anonymous Walmart staffer. (Additional quotes from assorted Walmart managers)

"Full-time people are getting slimmer and slimmer," said a supervisor at a store in North Carolina, who asked not to be named, as did other store-level employees who were interviewed for this story, because she is not authorized to talk to the media.

"The five new employees hired this year at the store are all temps and hours of existing employees are being cut."

"Everybody who comes through the door I hire as a temporary associate," said a store manager in Alaska, who asked not to be identified. "It's a company direction at the present time."

Walmart, originally a huge backer of Obamacare is now moving health costs to states by either eliminating, or cutting full-time employees to part time.

CKE Restaurants (Owner of Hardee's) stated it will begin to hire part-time workers to replace full-time employees who left." The company owns the Hardee's, Carl's Jr., Red Burrito, and Green Burrito restaurant chains.

Treadwell Enterprises (a diffuse fast food empire, including a few Taco Bells) In Guthrie, Oklahoma, a Taco Bell employee came forward and told local media outlet News 9, "They informed everybody that nobody was considered full-time any longer, that everybody was now considered part-time, and [they] would be cutting hours back to 28 hours or less due to Obamacare."

AAA Parking According to a March 2013 Atlanta Business Chronicle story, an Atlanta-based parking garage company planned to cut half of its 500 full-time hourly employees to part-time hours.

Regal Entertainment group the largest movie theater chain in the US has cut the hours of numerous employees to 30 hours to by-pass Obamacrare.

Businesses are not alone in cutting employee hours. Entire cities are cutting hours to avoid paying benefits under Obamacare.

Long Beach CA is cutting hours of 1,600 part-time workers to fewer than 27 hours per week. Bill Dombrowski, head of California Retailers Assoc. said, "Under the requirements of the, Affordable Care Act. "Cuts are the only way to survive economically."

Labor Union officials also are extremely concerned about the effects of Obamacare on full-time employees and have voiced that concern to the White House, warning that Obamacare will cost many of their members their jobs.

Federal Reserve Chairman Ben Bernanke weighed in. He agrees the Obamacare mandate is causing employers to hire part-time workers, rather than full-time employees, but refused to say if Congress should delay all the law's mandates.

" Obamacare regulations have caused some companies to hire part-time employees, rather than full-time." Ben Bernanke

Source :http://moneymorning.com/2013/07/22/is-obamacare-creating-a-part-time-america/

Money Morning/The Money Map Report

©2013 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2014 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Free Report - Financial Markets 2014