Obamacare Effect On Jobs: Part-Time Outgains Full-Time As Businesses Scale Back
July 8, 2013 by Ben Bullard
The unemployment rate in the United States for the month of June dallied at 7.6 percent, a number attended by the reported addition of 360,000 new part-time jobs — a record high. Such a big jump was hailed at the White House as a sign that the economy continues to benefit from the 2009 American Reinvestment and Recovery Act (ARRA).
What the numbers really show is that full-time, “quality” jobs are being supplanted on a massive scale as companies steady their workforce numbers ahead of the implementation of Obamacare. The labor force lost 240,000 full-time jobs in June, continuing a trend that has seen 557,000 part-time jobs in the United States outpace the comparatively paltry 130,000 new full-time positions since the first of the year.
Thank Obamacare, which mandates businesses employing more the 50 people to contribute toward health coverage for anyone who’s been hired to work more than 30 hours per week — or face paying per-employee penalties to the government (via the Internal Revenue Service).
Alan Kreuger, who chairs President Barack Obama’s Council of Economic Advisers, spun the numbers to persuade the media the President was a visionary whose grand plan to get the economy back on track was destined to succeed.
“In the four years since the recession ended in June 2009, the economy has added 5.3 million jobs, thanks to the resilience of the American people and policies like the Recovery Act, which helped bring the recession to an end and put us on the path to recovery,” said Kreuger, who characterized the spectacular turnaround as “further confirmation that the U.S. economy is continuing to recover from the worst downturn since the Great Depression.”