White House denies ObamaCare causing reduction in full-time jobs

Regulation and business

It has already been documented that many businesses are scaling back hours to avoid the ObamaCare’s employer mandate. But that’s not the only area that businesses are showing signs of strain because of the law.

During a press conference on Tuesday, White House Press Secretary Jay Carney was asked about employers that have been hiring part-time workers over full-time workers to avoid the increased costs that will be placed upon them by the employer mandate, which was recently delayed by the Obama Administration.

Carney flatly denied that there is any correlation between ObamaCare and the reduction in full-time employment.

“I would say broadly that if you look at the economic data, the suggestion that the ACA is reducing full-time employment is belied by the facts. So what the ACA allows is the opportunity for individuals who could not, prior to passage of the Affordable Care Act, afford insurance, to get insurance,” Carney told reporters. “And it provides subsidies for those who need help in affording it.  And it assists businesses in that effort so that they can provide insurance to their employees.”

“And again, the broader data here does not reflect that assertion,” he added. “I don’t have a specific response to the story you’re citing, but I think the data is very clear on this.”

Whatever data Carney is looking at is completely out of step with the numbers produced by the Bureau of Labor Statistics (BLS), the governmental agency tasked with tracking employment numbers.

In the June jobs report, the BLS found that part-time hiring soared to a record high, with employers adding 360,000 part-time jobs. The report found that full-time hiring dropped by 240,000 jobs. While this past month showed a significant disparity between full-time and part-time jobs, it does reflect a trend, as the Wall Street Journal pointed out this week.

“For the entire U.S. workforce, employers have added far more part-time employees in 2013—averaging 93,000 a month, seasonally adjusted—than full-time workers, which have averaged 22,000,” noted the newspaper. “Last year the reverse was true, with employers adding 31,000 part-time workers monthly, compared with 171,000 full-time ones.”

And while the delay in the employer mandate is the Obama Administration’s way of acknowleding that it’s causing a real problem, a temporary stay of the policy isn’t going to do much to help businesses adjust to compliance costs. According to a survey of small businesses conducted by the U.S. Chamber of Commerce, 71% say ObamaCare makes it harder for them to hire and 74% will layoff workers or cut hours because of the law.

In the face of the facts and actual data — both private surveys and jobs numbers produced by the government — the White House is still in denial about the effects of ObamaCare on employers and hiring.

 
 


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