How Obamacare is making it harder to find a full-time job
The drag Obamacare has had on the economy has been hard to quantify in the two-plus years since it became law, because so many of its economy- and job-altering provisions had yet to be written. But that’s changing, and the law’s negative impact on the economy is becoming clearer. The Washington Post’s Robert Samuelson explains one of the ways: the law’s exemption for part-time employees and its definition of what counts as “part time”:
In September, 34 million workers, about a quarter of total workers, were part-time, reports the Bureau of Labor Statistics (BLS). But the BLS defines part-time as less than 35 hours a week; Obamacare’s 30 hours a week was presumably adopted to expand insurance coverage. There are now 10 million workers averaging between 30 and 34 hours a week. To the BLS, they are part-time; under Obamacare, they’re full-time.
Employers have a huge incentive to hold workers under the 30-hour weekly threshold. The requirement to provide insurance above that acts as a steep employment tax. Companies will try to minimize the tax. The most vulnerable workers are the poorest and least skilled who can be most easily replaced and for whom insurance costs loom largest. Indeed, the adjustment has already started.
As first reported in the Orlando Sentinel, Darden Restaurants — owners of about 2,000 outlets including the Red Lobster and Olive Garden chains — is studying ways to shift more employees under the 30-hour ceiling. About three-quarters of its 185,000 workers are already under, says spokesman Rich Jeffers. The question is “can we go higher and still deliver a great [eating] experience.” The financial stakes are sizable. Suppose Darden moves 1,000 servers under 30 hours and avoids paying $5,000 insurance for each. The annual savings: $5 million.
Samuelson notes there are downsides for companies to have employees working fewer hours: The jobs may become less attractive, turnover may increase and, with it, training costs may rise. But the evidence clearly shows that even many employed Americans are still looking for more work because all they can find is part-time work.
In any case, his broader point, to which I subscribe, is that the economy isn’t strong enough — hasn’t been for a few years now — to withstand this kind of unnecessarily, artificially created uncertainty. Businesses always operate with uncertain market conditions, but they don’t need government adding to this uncertainty by passing laws that muddle the labor market — and thereby undermine the entire point of passing the law in the first place.
– By Kyle Wingfield
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164 comments Add your comment
Finn McCool (The System isn't Broken; It's Fixed)
October 22nd, 2012
1:40 pm
Good line from the salon.com article:
This campaign offers a stark look at just how odd the reform argument can get. Here, there have been billions in cuts to public education and lawmakers complain that schools aren’t performing well. So instead of making investments in education—or simply replacing some of the funds taken away—they spend money elsewhere, to create a new, competing system.
It doesn’t make sense, but then again, there’s no word on whether these new charters would teach logic classes.
http://www.salon.com/2012/10/22/georgias_bitter_charter_battle/
Closing my business if Obamacare doesn't get repealed!
October 22nd, 2012
1:41 pm
Kyle,
Thanks for the report but astute small business owners have known this for 18 months. As a business owner I will shut down my company that employ’s 98 people. Obamacare will create more unemployment but a President with biz sense would know this!
Hoping my employees have jobs after November!
Tiberius - pulling the tail of the left AND right when needed
October 22nd, 2012
1:42 pm
“Indeed because only liars teach at Princeton, win Nobel Prizes for Economics and Loeb awards.”
Let’s see . . . Nobel Prize? Rendered completely worthless since being awarded to Obama for Peace (He of the drone-killing hit list of targets and all . . .)
Princeton? Liberal think-tank operating under the guise of a university.
Add to that, Krugman has been reduced to being an “opinion writer” (sorry, Kyle
) because he apparently can’t get work in his chosen field . . .
I’d say his opinion can pretty much be discounted as being “truth”.
edgewise
October 22nd, 2012
1:45 pm
no matter who wins the election, the outer continental shelf drilling for oil, will be back in play. that will create jobs, and it has, as of a couple of months ago, brought land men into Wayne county buying mineral leases for a drilling company, a company who drilled many wells in the marcellus shale in states to the north. are they getting a jump on the OCS play? Wayne county is just 30 miles from the coast. it’s a mystery right now, but, if any of this happens, it could change the economy of se georgia.
Finn McCool (The System isn't Broken; It's Fixed)
October 22nd, 2012
1:46 pm
Emboldened by his victory, he will (once again) completely misread the electorate..
Ohoh, more predictions by the righties who predicted after 2008 that this stuff would happen because of Obama:
1) take away their guns
2) The Boy Scouts and private Christian schools would be forced to disband by the Supreme Court
3) adoption agencies would be outlawed
4) religious broadcasters would no longer be allowed to broadcast
5) churches are compelled to host gay weddings or to hire lesbian clergy
6) the Pledge of Allegiance would be outlawed
…………
Tiberius - pulling the tail of the left AND right when needed
October 22nd, 2012
1:50 pm
“Ohoh, more predictions by the righties who predicted after 2008 that this stuff would happen because of Obama: . . . ”
Well, he would have gotten around to those if he hadn’t wasted all his time on Lilly Ledbetter and Obamacare.
jconservative
October 22nd, 2012
1:57 pm
Rafe at 12.44 – Interesting discussion. I checked CNN’s website for exit poll date from the 2008 Obama – McCain election. Note that Obama carried every education level category. I have no idea what this means as I have not checked other elections going back to your 1993 data.
Total vote by education level 2008 presidential election
Category………………..Obama…………….McCain………….. Other/No Answer
No High School (4%)…….63%……………. 35%………………….. 2%
H.S. Graduate (20%)…….52%……………. 46%……………………2%
Some College (31%)……..51%……………….47%……………………2%
College Graduate (28%)…50%……………….48%……………………2%
Postgraduate (17%)………58%……………….40%……………………2%
Source: cnnpolitics.com
One perspective....
October 22nd, 2012
1:59 pm
Seemed to work in Massachusetts ok.
You need to look at what has happened to the Massachusetts budget over the last 5 years. It is breaking one of the richest states in the nation.
JDW
October 22nd, 2012
2:03 pm
@Tiberius…
I don’t think it’s me that needs to worry about starving.
As any marketer would know “Tippecanoe and Tyler too” is a slogan not a sound byte. A slogan is designed to create market recognition. Today’s sound bytes are designed to impart actual information….apples and oranges.
All your other stuff is hogwash but I will point out this bit…Obama’s gay marriage stance was indeed an evolution because it continued it a direction rather than reversing a direction. Lets take a look
First Obama…
In 2004 he said “marriage is something sanctified between a man and a woman.” At that time, he also indicated that civil unions were adequate for gays and lesbians. He contended that the difference between marriage and civil unions was partly just a matter of “semantics.”
In 2006 he said “decisions about marriage should be left to the states as they always have been.”
In 2010 it was “My feelings about this are constantly evolving,”
And this Spring he said “For me personally, it is important for me to go ahead and affirm that I think same-sex couples should be able to get married”
That is a position from a starting point of Civil Unions and evolving to personal support.
Romney on the other hand…
In the 1994 race against Democratic Sen. Edward Kennedy, Romney said, “I believe that abortion should be safe and legal in this country.”
In his 2002 campaign for governor, Romney said during a debate, “I will preserve and protect a woman’s right to choose and am devoted and dedicated to honoring my word in that regard.”
THEN HE FLIPS TO THE OTHER SIDE
In 2007, Romney said on ABC’s Good Morning America “‘You know, I do support the Republican platform, and I support that being part of the Republican platform and I’m pro-life.’”
In June, 2011, Romney published his position on abortion in the National Review, a widely read conservative magazine. He wrote:
• “I am pro-life and believe that abortion should be limited to only instances of rape, incest, or to save the life of the mother. I support the reversal of Roe vs. Wade, because it is bad law and bad medicine.”
• “I support the Hyde Amendment, which broadly bars the use of federal funds for abortions.”
• “I will advocate for and support a Pain-Capable Unborn Child Protection Act to protect unborn children who are capable of feeling pain from abortion.”
• “I will only appoint judges who adhere to the Constitution and the laws as they are written, not as they want them to be written.”
• “I will support efforts to prohibit federal funding for any organization like Planned Parenthood.”
He told Huckabee on FOX he supported a constitutional amendment that would have established the definition of life as conception
He affirmed in a live debate that he would sign a federal ban on all abortions
That is a candidate reversing course and telling the electorate what they want to hear not what he believes.
Lambeau
October 22nd, 2012
2:05 pm
You know there is a reason that the United States has one of the best (if not THE best) quality of health care. Yeah I agree something needs to be done about the cost, but how can anyone say “lets model it after other countries” when we have so much more innovation than most of the world? People don’t come to the US to be treated just for the hell of it. Modeling it after Canada/places in Eurpoe/etc. just decreases the incentive to advance medicine.
Tiberius - pulling the tail of the left AND right when needed
October 22nd, 2012
2:06 pm
“You need to look at what has happened to the Massachusetts budget over the last 5 years. It is breaking one of the richest states in the nation.”
Not to mention that most doctors are no longer accepting new patients, and many doctors are leaving the state since it’s inception.
Oh, and MA works because it uses Federal Medicaid dollars to keep it afloat. How will that work in a Federal program when the Medicaid source funding isn’t there?
MarkV
October 22nd, 2012
2:08 pm
Kyle Wingfield @ 11:56 am
“Since it’s so obvious to you, please, share with us.”
Apparently it is beyond Kyle’s ingenuity that Obamacare law could be modified to raise the party-time job definition to 35 hours.
JDW
October 22nd, 2012
2:10 pm
@Tiberius…”I’d say his opinion can pretty much be discounted as being “truth”.”
Of course you are imminently qualified to make such “truthful” judgements…
…SNORT….GUFFAW…SNICKER…CHORTLE…CACHINNATE…WHEEZE…
Lambeau
October 22nd, 2012
2:11 pm
But I guess Democrats feel that severely decreased quality of healthcare to an increased number of people is better than the best quality in the world.
MarkV
October 22nd, 2012
2:11 pm
part-time, not party-time
Tiberius - pulling the tail of the left AND right when needed
October 22nd, 2012
2:13 pm
JDW, is English your primary language?
Because everything you posted is predicated on the one sentence: “I believe that abortion should be safe and legal in this country.”
Does it say anything about funding? No.
Does it say anything about states having the right to choose their own levels of abortion support? No.
You cite his opposition to Roe v. Wade, yet don’t post the REST of his statement saying it should be up to the individual states.
In other words, you’re doing EXACTLY the thing I said you do – parse, cherry-pick and omit the whole train of thought.
If there is anyone shallower in a political discussion, it’s probably getalife.
But you’re a close second.
gm
October 22nd, 2012
2:13 pm
Gee Kyle, tell that to the 30 million mothers and kids who now have health insurance or women who now have pre screening for cancer, or the millions of lives been saved by pre existence, how much is that worth to corporations.
How about the CEO’s making record profits under Obama care? or the stock market at record highs, another right winger who care nothing about Americans.
Lambeau
October 22nd, 2012
2:14 pm
Well we know whats on your mind MarkV! Its only Monday!! Can it be the weekend already? Haha
getalife
October 22nd, 2012
2:14 pm
mitt is a unpatriotic fraud and will lose.
Our President will win this last debate to make it three out of four wins.
The gop are unpatriotic obstructionists and deserve to lose the Independent votes.
Reality
October 22nd, 2012
2:15 pm
Isn’t it a shame (and a sham) that companys find ways to NOT help their employees? Why do we, as a people and as a Country, allow companys do this to us?
Are we really so pitiful as to THINK that we are beholden to these companys?
These are the very companys that pay their CEOs and their board member MILLIONS of dollars in salary and perks (free ride and driver, free private jet, etc.). These are the very companys that are currently holding on to a TON of cash (which yes, is hurting our economy).
I am starting my own business. If I hire even one person (full or part time), I will provide them with full benefits along with their pay. In return, I expect a loyal employee that does a good job. Why is this so hard for people to understand?
Tiberius - pulling the tail of the left AND right when needed
October 22nd, 2012
2:15 pm
JDW, you’re really reaching today.
When I have an opinion, I state that it is such.
When I post a fact, I state that it is such.
But NOWHERE do I ever state that my opinion is truth.
I leave that you you libs.
Tiberius - pulling the tail of the left AND right when needed
October 22nd, 2012
2:17 pm
I see getalife is out of arguments early today.
He threw the “unpatriotic” flag on his first post.
Reality
October 22nd, 2012
2:18 pm
Kyle,
As usual, you are so far out on your right wing branch that you are going to fall off into the chasm of no return. When will you learn?
Tiberius - pulling the tail of the left AND right when needed
October 22nd, 2012
2:20 pm
“Apparently it is beyond Kyle’s ingenuity that Obamacare law could be modified to raise the party-time job definition to 35 hours.”
Apparently it is beyond MarkV’s ingenuity to realize that as long as the penalties for non-compliance are lower than the cost for a company or individual to provide healthcare, Obamacare will fail.
MarkV
October 22nd, 2012
2:20 pm
Lambeau @2:14 pm
“Well we know whats on your mind MarkV! Its only Monday!! Can it be the weekend already? Haha”
Well we know there is nothing on Lambeau’s mind, at least nothing worth noting.
Reality
October 22nd, 2012
2:22 pm
@Tiberius,
I far prefer JDW over Romney. At least JDW is consistant. Romney has “flip-flopped” on his stance so many times it is pitiful.
Romney at one time said he was strictly pro-life and was against all abortions. Now, he has changed his mind to add “except” for those special circumstances – the ONLY reason he has done this was to try and get the women’s vote for this election.
If he were to get into office, what will his position really be? Who knows?
Tiberius - pulling the tail of the left AND right when needed
October 22nd, 2012
2:23 pm
“I am starting my own business. If I hire even one person (full or part time), I will provide them with full benefits along with their pay.”
Just remember, Reality, that the unemployment insurance you pay only covers your employee, NOT you. So don’t go rushing down to the unemployment office for your first check when you go under with that strategy, ’cause it won’t be there for you.
Lambeau
October 22nd, 2012
2:24 pm
Wow Mark. I tried to lighten things up and you went that direction with it… And my point on quality of care is very valid. Get off your high horse. Just because you don’t agree with someones views doesn’t mean you have to be a complete jerk.
MarkV
October 22nd, 2012
2:24 pm
MarkV: “Apparently it is beyond Kyle’s ingenuity that Obamacare law could be modified to raise the party-time job definition to 35 hours.”
“ Apparently it is beyond MarkV’s ingenuity to realize that as long as the penalties for non-compliance are lower than the cost for a company or individual to provide healthcare, Obamacare will fail.”
Apparently some people think (if they can think) that presenting an unrelated issue is an answer to an argument.
Tiberius - pulling the tail of the left AND right when needed
October 22nd, 2012
2:26 pm
“I far prefer JDW over Romney. At least JDW is consistant.”
Yeah – consistently wrong.
And the biggest difference is that Romney has been wildly successful at almost everything he’s tried.
JDW couldn’t get elected dog-catcher.
Tiberius - pulling the tail of the left AND right when needed
October 22nd, 2012
2:28 pm
“Apparently some people think (if they can think) that presenting an unrelated issue is an answer to an argument.”
Apparently some people think that wasting time defending/discussing/changing one part of a law that is so flawed in order to make a point makes that law workable.
I Report (-: You Whine )-: mmm, mmmm, mmmmm! Just sayin...
October 22nd, 2012
2:28 pm
A year-long investigation by the Investigative Project on Terrorism (IPT) has found that scores of known radical Islamists made hundreds of visits to the Obama White House, meeting with top administration officials.
Hangin out with mullah obozo, just sayin…
MarkV
October 22nd, 2012
2:39 pm
The basic economic argument against universal health care is that we (the US) cannot afford it. Never mind that other, less rich countries can – we, the richest country in the world, cannot.
In addition to this obvious inconsistency, there are even bigger, quite colossal moral and logical problems with the resistance to universal health care. There are essentially two groups of arguments people make:
1. Health care is just like another commodity; you buy what you can afford.
Sometimes spelled out openly, at other times hidden in the subtext: If you do not have or make enough money and get sick or injured, too bad. It is not my concern. I am against paying more in premium or taxes to help people get health insurance or health care they cannot afford.
Since the word “human” in the expression “human race” also means “kind, considerate,” I find these people belonging to the human race only technically.
2. We (the US) cannot afford to have everybody insured. It would break our budget, skyrocket our national debt. People who can afford it buy their health insurance; those who cannot, and get sick or injured, can get care by hospitals anyway. We have the best health care in the world, and nobody is denied it.
A variation, which notably made Thomas Sowell in a column long time ago: Everybody should just pay for his/her medical expenses. If they are too high, there are always charitable organizations to help.
This argument avoids the moral depravity of the previous one, but at expense of logic. According to this argument (expressed by Romney, among others), people without health insurance still will get medical attention. Therefore, there will be a cost, people will be paid. Who is paying them? Martians? No, it will still be paid by the people of the USA, by “us,” even if “we” presumably cannot afford it.
Don't Tread
October 22nd, 2012
2:40 pm
“and thereby undermine the entire point of passing the law in the first place”
Well, not really…maybe undermine the stated point of passing the law, but not the real objective. All is going according to plan.
MarkV
October 22nd, 2012
2:41 pm
“Apparently some people think that wasting time defending/discussing/changing one part of a law that is so flawed in order to make a point makes that law workable.”
Take note, Kyle!
Tiberius - pulling the tail of the left AND right when needed
October 22nd, 2012
2:47 pm
When you haven’t got the fact-based argument to make, go for the “moral” one.
Darwin
October 22nd, 2012
2:51 pm
If you have your way, they wouldn’t even be paid a minimum wage.
Reality
October 22nd, 2012
3:06 pm
@Tiberius,
If Romney has been so “wildly successful” at everything he has tried, then riddle me this….
Why does his OWN State where he was Governor have him trailing Obama by 25%????? Who in their right mind would even bother to run for President when they don’t even have the backing of their OWN State?
Reality
October 22nd, 2012
3:16 pm
@JDW,
Come on, man! Why do you have to bring truths, quotes, and facts to any discussion with Tiberius? Don’t you realize that these things only will confuse him?
Reality
October 22nd, 2012
3:19 pm
@MarkV,
Very true about health care! Some Countries with some form of Universal Health Care for their citizens (partial list)…
Canada
South Africa
Australia
New Zealand
I guess that the United States just cannot afford as much as these Countries for our citizens? LOL!!!
DownInAlbany
October 22nd, 2012
3:24 pm
It currently costs me $8,268 per year to provide my employees with insurance. Thats with a $10,000 deductible! It will cost me, what, $2,500 to not provide insurance? You do the math…
Reality
October 22nd, 2012
3:28 pm
@DownInAlbany,
What is more important? …doing the “math” or doing the “right” thing for your employees. When will people understand what is really more important?
How loyal, hard working, and appreciative will your employees be for a mere $5,000 per year?
Also, if you cannot really write off that addition $5000 as a business expense, you might want to change accountants doing your taxes!!!
JDW
October 22nd, 2012
3:29 pm
@Tiberius…”JDW couldn’t get elected dog-catcher”
Right about that, if you don’t run you won’t get elected…consider yourself unopposed in your new role.
Tiberius - pulling the tail of the left AND right when needed
October 22nd, 2012
3:32 pm
And while we’re on the subject of “morality”, MarkV, how can something be moral if it is enforced through the use of force?
JDW
October 22nd, 2012
3:38 pm
@Tiberius…”Because everything you posted is predicated on the one sentence: “I believe that abortion should be safe and legal in this country.”
You must be a maroon if you don’t realize that…
Agreeing on the air to “sign a federal ban on all abortions”
is diametrically opposed to either
- “I believe that abortion should be safe and legal in this country.”
or
Supporting states rights.
Habla Inglés idiota?
Tiberius - pulling the tail of the left AND right when needed
October 22nd, 2012
3:39 pm
“Why does his OWN State where he was Governor have him trailing Obama by 25%?”
Uh, Reality?
You’ll note that Massachusetts is one of the bluest of blue states, Romney spends little personal time there, and absolutely ZERO campaign time there.
Plus, success is measured in many ways. Did he balance the budget? Yes. Did he raise taxes? No. Did he rework fees so that those who use the service PAY for the service? Yes. Did he lower unemployment? Yes. Did he maintain a top-notch education system? Yes. Did he get all these things done while having to work with a legislature that was made up of over 85% of elected officials who were diametrically opposed to his points of view? Yes.
In short, WILDLY successful.
Tiberius - pulling the tail of the left AND right when needed
October 22nd, 2012
3:41 pm
JDW, you’re now bordering on outright lies.
The ban that was being discussed was for Federal FUNDING of abortions.
If you have to lie to make a point, JDW, why bother?
DownInAlbany
October 22nd, 2012
3:42 pm
Reality
October 22nd, 2012
3:28 pm
@DownInAlbany,
What is more important? …doing the “math” or doing the “right” thing for your employees. When will people understand what is really more important?
How loyal, hard working, and appreciative will your employees be for a mere $5,000 per year?
Also, if you cannot really write off that addition $5000 as a business expense, you might want to change accountants doing your taxes
I never said that we would not continue to provide h/c insurance, now did I? We truly believe that by providing insurance, along with a good base salary, a 401k and generous holiday/vacation time, we keep a loyal employee base. I have people begging to be hired…I rarely have an opening. My point is, most business people will stop providing insurance and allow their employees to go into the state pool…
DownInAlbany
October 22nd, 2012
3:43 pm
Oh, and by the way, Reality, I’m a CPA and do our own taxes…thanks for the tip, though.
Tiberius - pulling the tail of the left AND right when needed
October 22nd, 2012
3:44 pm
“How loyal, hard working, and appreciative will your employees be for a mere $5,000 per year? ”
How loyal, hard working, and appreciative will DownInAlbany’s former employees be when they are no longer employed by him?