The Obamacare Effect

Superficially, the BLS employment report on Friday was a huge “beat.” Unfortunately, the evidence suggests that the result was due to the substitution of part-time employment for full-time. Obamacare requires employers to provide health insurance for all full-time (30 or more hours/week) employees. As a result, some employers are cutting hours so that people have to work another job to get the income they need – and the jobs are there because the employers need to replace the hours they cut.

According to the household survey (on which the unemployment rate is based) the economy added a healthy 170,000 jobs. However, a whopping 446,000 of those jobs were part-time jobs. Simply put, the economy shed 276,000 full-time jobs.

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