Federal Reserve: ObamaCare Leading to Layoffs
During testimony before the House Budget Committee in February 2011, Doug Elemendorf, director of the Congressional Budget Office, told Rep. John Campbell (R-CA) that ObamaCare would reduce employment by some 800,000 by 2021. The effects of the law on the job market was a point that many policy analysts were making before its passage.
Unfortunately, the Obama Administration and Democrats in Congress weren’t listening. And now, the Federal Reserve has released a report noting that ObamaCare is leading many businesses to layoff workers:
The Federal Reserve on Wednesday released an edition of its so-called “beige book,” that said the 2010 healthcare law is being cited as a reason for layoffs and a slowdown in hiring.
“Employers in several Districts cited the unknown effects of the Affordable Care Act as reasons for planned layoffs and reluctance to hire more staff,” said the March 6 beige book, which examines economic conditions across various Federal Reserve districts across the country.
That line was found in a section of the Fed’s report on employment, wages and prices. That same section also said the Atlanta district noted that healthcare regulations are so burdensome there is a shortage of compliance specialists.
“Atlanta noted a lack of compliance specialists due to heavier regulations in the healthcare industry,” it said.
The report points out that law is giving a few Fed districts fits. The Hill notes that “healthcare regulations are so burdensome” in Atlanta that “there is a shortage of compliance specialists.” The Hill also notes:
The Atlanta district reported that higher healthcare costs “have contributed to a modest decline in consumer confidence” as it relates to consumer spending and tourism.
Higher healthcare costs were also reported in the districts of Chicago, and the Kansas City district reported “changes in health care policy and fiscal uncertainty as reasons for delayed hiring.”
Much like higher insurance premiums and the myth of cost-savings, the impact on employment — especially in a time when the economy is already stuggling — is another entirely predicted resulttsit of ObamaCare.