A
Federal Reserve report out Wednesday said that concerns about Obama-Care are
weighing on hiring and sales, the latest evidence that the sweeping health law
already is having a significant negative impact on employment.
The
U.S. economy continued to expand at a "modest to moderate" pace last
month, according to the central bank's beige book. But the Fed's anecdotal
report of economic conditions also noted that President Obama's Affordable Care
Act isn't helping.
"Employers
in several Districts cited the unknown effects of the Affordable Care Act as
reasons for planned layoffs and reluctance to hire more staff,"
the beige book report read.
Businesses
in several districts also told the Fed that the payroll tax hike and Obama-Care
"restrained sales growth."
The Richmond
Fed stated: "Employers across the District continued to cite the
Affordable Care Act and its unknown impacts as reasons for planned layoffs and
reluctance to hire more staff."The Kansas City Fed stated: "Firms
continued to report changes in health care policy and fiscal uncertainty as
reasons for delayed hiring."
The
Dallas Fed said this about staffing firms: "Some contacts noted concern
that client companies are hiring the absolute minimum to get by due to
uncertainty about the Affordable Care Act."
Part-Time
Shift
The
beige book report follows signs by restaurants, hospitality firms and other
low-wage employers to reduce work hours to avoid Obama-Care employer fines.
The retail work week hit a three-year low of 30.1 hours last month —
even as the number of retail workers rose significantly. Employers have until
June before staffing levels begin to determine fines — up to $3,000 per
employee — in 2014 when the Obama-Care exchanges are supposed to begin.
Firms
with fewer than 50 workers are exempt. The law also doesn't count part-time
workers, defined as 30 hours or less per week.
Darden
Restaurants (DRI), Frisch's Restaurants (FRS), Krispy
Kreme (KKD) and Wal-Mart (WMT) are among the employers that have
disclosed plans to cut employer hours or health care benefits due to Obama-Care.
The part-time
workforce surged to 20.6% of the labor force in February, according to a
recent Gallup survey.
The
Labor Department's March employment report on Friday may provide more data on
ObamaCare's effects on jobs and work hours.
Source:
Investor's Business Daily:
http://news.investors.com/economy/030613-646984-obamacare-spurs-layoffs-hurts-hiring-beigebook.htm#ixzz2MoE2o4Km
Comments:
Employers have already shifting to part-time and lower
staffing levels by reducing labor costs by the amount of the “tax” imposed by Obama-Care. More cut-backs will follow as companies
prepare for 2014 when these mandates become effective. Individuals who will be forced to spend money
they don’t have on benefits they don’t want are still hoping for the law to be
repealed.
Norb Leahy, Dunwoody GA Tea Party Leader
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