How will ObamaCare Impact Job Growth, Unemployment, Wages, Operation Costs, or Hiring Practices?

What is the impact of ObamaCare on jobs? is ObamaCare really a Job Killer? ObamaCare does affect job growth, hiring, wages and consumer costs. However, the impact of ObamaCare on jobs isn’t as drastic as you might have heard. ObamaCare includes provisions that create new jobs in healthcare and government, increase operating costs for some larger businesses, eliminate “job-lock” and save money for small businesses. Let’s take a look at ObamaCare and how it affects jobs hiring practices and operation costs.

How ObamaCare Has Impacted Jobs

While some larger firms who have to provide insurance for employees come 2015 are cutting back employee hours to part-time to avoid paying for their health coverage, others like Walmart have moved tens of thousands of workers from part-time to full-time to embrace the law. Also, many smaller firms will be able to hire more workers due to their ability to provide them with better benefits at cheaper rates. ObamaCare it’s self funds the creation of tens of thousands of new jobs in Government and healthcare sectors. So some job loss will be seen in the form of full-time workers losing hours and workers choosing to work less hours or leave their job since they can now get non-work-based insurance. Job growth will come as a result new healthcare related jobs and from those who choose to create businesses now that they won’t have to depend on an employer for health benefits.

ObamaCare Jobs: CBO Report on Jobs

A recent report from the 2014 CBO report on jobs has been used as ammo to back-up the talking point that ObamaCare is a job killer, but the truth is a little more complicated. The CBO estimates that the ACA will reduce the total number of hours worked, on net, by about 1.5 percent to 2.0 percent during the period from 2017 to 2024. The reduction in the CBO’s projections of hours worked represents a decline in the number of full-time equivalent workers (not actual job loss from full-time workers losing their jobs or not being able to find work) of about 2.0 million in 2017, rising to about 2.5 million in 2024.

While loss of full-time equivalent hours is partially due to a small number of businesses decreasing full-time workers to part-time, it is largely a reflection of the Affordable Care Act helping to eliminate health benefit “job-lock” (The term job lock is used to describe the inability of an employee to freely leave a job because doing so will result in the loss of employee benefits, which are usually health or retirement related.)

In other words the report really says the ACA will free people, young and old, to pursue careers or retirement without having to worry about health coverage. Workers can seek positions they are most qualified for and will no longer need to feel locked into a job they don’t like because they need insurance for themselves or their families. The decrease is in labor participation and not an increase in unemployment (that is, more workers seeking but not finding jobs) or underemployment (such as part-time workers who would prefer to work more hours per week).


How ObamaCare Creates Jobs

ObamaCare creates jobs in two ways. First, our tax dollars go to creating millions of new Government and health care jobs. This includes funding for improving training for young adults getting training in health care, new jobs in the health insurance marketplace, new jobs in health education and new jobs in the IRS. The second way ObamaCare creates jobs is through small businesses being able to offer better health benefits.

• Small businesses have increasingly stopped providing health benefits to their employees over the past decade due to the ever-rising cost of health care premiums. The rising costs don’t effect larger firms hiring processes. ObamaCare helps to regulate insurance making it more affordable to small businesses increasing job retention rate and making those jobs more attractive.

• Affordable Health Care Act funds scholarships and loan repayment programs to assist young people with going to school for health care related professions.

• The act promotes much needed jobs in the healthcare industry to prepare for our future thus creating jobs for American workers.

• The Act gives states power to recruit healthcare workers.

• Helps fund and expand community health centers.

Because doctors, nurses, and other health care providers are the backbone of the health care system, the Act supports and expands our Nation’s health care workforce.

ObamaCare Jobs Facts

The fact is, ObamaCare job studies have shown the law has a net increase on job growth, creating millions of new jobs. Of course a net increase doesn’t discount the firms that are cutting back employee hours to part-time to avoid paying for their employee’s health coverage.

• Corporate funded campaigns to defund and repeal ObamaCare are responsible for a lot of the false and slanted information on ObamaCare and jobs. This is because it’s cheaper for them to lobby the Government and fund anti-ObamaCare campaigns than it is to pay their share of it’s costs, to provide health coverage and to sacrifice their hold over workers by controlling their only access to health care for them and their families. This isn’t something new to healthcare, this is something that happens with every worker right, public program and tax that helps the average American and costs our largest firms money and power. They count on the public not understanding ObamaCare for their campaigns to work. We count on the American Government to create and enforce regulations that expand our rights. Keep reading the ObamaCare Facts on jobs and in general to help educate yourself and protect your rights.

• 15% of uninsured Americans are full-time workers or their dependents.

• ObamaCare has positive impact on jobs for Small businesses with under 50 full-time equivalent employees.

• Come 2015 ObamaCare’s “employer mandate” says that firms with with average annual wages above $250,000 must provide health insurance to their full-time workers. This, along with a few health care taxes on employers, is what all the controversy is over.

• Some of Americas largest companies have never willingly provided health benefits to their workers. ObamaCare’s “employer mandate” is meant to ensure these companies provide coverage to their workers.

• The firms that must pay the fee, yet don’t provide insurance, only account for .2% of firms in the U.S. although they do employee a large percentage of the workforce. They include corporations like Walmart (Americas largest employer) who are owned by two of the richest people in America. The good news is that because we, as a country, stuck with ObamaCare for the past three years Walmart is now expanding their full-time work force and offering great benefits. This is what happens when we don’t let corporate funded campaigns shut down public programs that help the majority of Americans. Read about Walmart and ObamaCare.

• More than half of Americans get their health coverage through work. In 2011 55.1% of Americans got coverage through their job, the “employer mandate” doesn’t go into effect until 2015.

• ObamaCare provides funding to create many new government jobs and healthcare jobs.

• Some larger firms who don’t insure employees are cutting back employee hours to avoid paying for their health coverage.

• Small businesses can now attract better quality loyal workers due to their being able to provide better quality affordable health benefits.

• A CBO report talked about workers leaving their jobs due to no longer having to rely on their employer for benefits. So some job loss comes from employees no longer depending on their employer for the health of them and their families.

ObamaCare Fact: More than 96 percent of the nation’s firms with 50 employees or more already offer health insurance to their workers despite the rising cost of health care (health care costs rise every year, ObamaCare curbs the rate of growth).

The Negative Impact of ObamaCare on Employee Health Insurance

The March 2012 CBO report projects that 3 to 5 million fewer people will, on net, obtain health coverage through their employer a year from 2019-2022. This study gives us an idea of how both jobs and employee health insurance will be affected by ObamaCare.

Of course it is not as cut and paste as saying ObamaCare is hurting employees; in fact, many employers and employees will benefit from ObamaCare. Many of these employees will simply get health insurance elsewhere (the exchanges, Medicaid, CHIP) if the employer decides that not insuring them is economical. Here is a breakdown of where those 3 to 5 million are coming from:

About 11 million people who would have had an offer of employment-based coverage under prior law will not have an offer under ObamaCare. That estimate represents about 7 percent of the roughly 161 million people projected to have employment-based coverage under prior law. The businesses that choose not to offer coverage as a result of ObamaCare will tend to be smaller employers and employers with predominantly lower-wage workers; those workers and their families are more likely to be eligible for Medicaid, CHIP, or subsidies through the health insurance exchanges.

Another 3 million people who would have had employment-based insurance under prior law and will still have an offer of such coverage under ObamaCare will instead choose to obtain coverage from another source. Under the legislation, workers with an offer of employment-based coverage will generally be ineligible for exchange subsidies, but that “firewall” will presumably be enforced imperfectly, and an explicit exception to it will be made for workers whose offer of employment-based coverage is deemed unaffordable.

About 9 million people who would not have been covered by an employment-based plan under prior law will have that coverage under ObamaCare. That change reflects the combined impact of the insurance mandate, the penalties that will be imposed on employers who do not offer insurance, and the tax credits for certain small employers who provide insurance for their workers—which will lead some employers who would not have offered coverage in the absence of ObamaCare to offer it and will lead some people who would not have taken up their employer’s offer of insurance to do so.

The Impact of ObamaCare on Employers with Over 50 Full-Time Employees

Job creators with over 50 full-time employees must pay a penalty for not insuring workers. There is also a .09% tax on 3% of small businesses making a profit of over $250k.

The requirement for employers to pay more health care costs and provide insurance will increase operation costs. Of course, that money has to come from somewhere and it’s up to the employer to figure out how they will deal costs associated with ObamaCare. However, the big fib in America right now is that that money has to come from slashing the hours of American workers.

Obamacare Hiring and Insurance for Employees. What Aren’t They Telling Us?

Large employers have a long history of using new taxes and wage increases as scapegoats. Just because businesses have to adjust to new regulations doesn’t mean that American health care reform is bad, it just means that these businesses have to evolve and figure out how they will deal with the costs. Most companies will admit that while there are rising costs, the best solution will most likely be protecting shareholders and workers and passing costs onto consumers (usually a matter of a few cents per item).

ObamaCare saves tens of millions of lives and provides unprecedented tax breaks to many small businesses helping them thrive. Already successful companies have already adopted health benefits for their workers without government enforcement. So why all the fuss?

Papa John’s and the Health Care “Story”

Corporate sponsored entities have been reporting that ObamaCare “kills jobs”, yet no study has shown this. While some multi-millionaire franchise owners have made a lot of noise, most companies say ObamaCare won’t affect their hiring process or their employees’ hours.

One business who has been very outspoken about their dislike of ObamaCare is Papa John’s. A study shows Papa John’s will have to increase the cost of their pizzas by 4 cents a pie to insure workers. All of this while paying Payton Manning to be the poster boy for a campaign to give away 2 million free pizzas.

Papa John’s recently tried to gain support for their message by giving customers a deal on a Double Bacon Six-Cheese pizza (wonder how much the health risks involved with that raise insurance premiums on their own?)… What do you say about .04 cents on every American?

Ultimately, Papa John’s CEO has decided while he doesn’t embrace ObamaCare, “Our business model and unit economics are about as ideal as you can get for a food company to absorb ObamaCare. We will find tactics to shallow out any ObamaCare costs and core strategies to pass that cost onto consumers in order to protect our shareholders’ best interests.” Or in summary, Papa John’s puts their shareholders’ best interests before their employees and customers.

So do companies like Papa John’s have a point in saying that employee insurance is too expensive? To an extent this is an extra cost that firms face. However, as workers rights and minimum wage increases so do the costs of employee workers. The real question is do we put human rights before the bottom line?

Franchise Owners Take ObamaCare Costs out on Workers

Franchise owners of chains like Papa John’s, KFC, Taco Bell, Red Lobster, Olive Garden, Denny’s, Longhorn Steakhouse, The Capital Grille and Applebee’s say ObamaCare will force them to cut employees’ hours since they can’t afford to provide more full-time workers with health insurance or pay the fines for leaving them uninsured.

Many of these chains’ franchise owners have taken the opportunity to talk about the horrors of the cost of ObamaCare, which of course must be taken out on customers and employees, on Fox News. Other sources for the “job killer” rumors include crossroads GPS, Forbes, Heritage Foundation among other openly anti-ObamaCare sources. For our information, we have turned to cross referenced studies by experts, including the CBO report on ObamaCare.

What the “Job Killers” Aren’t Telling You

The corporate loudmouths want to blame health care for “killing jobs”, but companies are the ones in control of their hiring and firing process. If they want to slow down productivity, deal with sick workers, low-job retention and the costs of training and re-training by cutting jobs and wages, then that makes them “job killers”- not ObamaCare. Is there more to this picture? What aren’t these companies telling us?

What they don’t tell you is that over the past decade, the amount of small businesses who can afford to provide health insurance to their employees has dropped dramatically, while larger businesses have been mostly unaffected. 3/4 of small businesses who dropped employee benefits because of the rising costs of health care will receive tax credits to offer their employees insurance. This will help to increase hiring rates and decrease turn over, making small business jobs more attractive.

ObamaCare helps small business, and forces bigger businesses who don’t want to provide benefits to do something that the big boys already do: treat their workers with respect.

Perhaps it’s time to start supporting the 96% of large employers who already offer benefits including WholeFoods, Nordstrom, Starbucks, UPS, Lowe’s, JCPenny, Land’s End, JP Morgan Chase, Barnes & Noble, Target, Home Depot, Costco, among many others who all offer part-time employees health benefits.

How Do Increased Health Benefits Help Businesses Grow Jobs and Hire?

70% of small businesses will be able to insure themselves and workers, something that has become increasingly rare due to the rising costs of insurance premiums. While this has never affected large employers much, small business has been struggling for over a decade. Larger businesses will be able to offer more attractive jobs with better benefits, meaning that those businesses who adopt the ObamaCare model for how employees should be treated will likely see a net increase in profit despite some readjustment.

How ObamaCare Will Impact Job Growth and Hiring due to Associated Costs Moving Forward into 2014

Right now, ObamaCare isn’t costing businesses much (assuming they are in the percentage that does face additional costs), therefore downsizing, cutting hours and not hiring are all being done in response to what is coming and not what has happened.

“Romney Care” didn’t kill jobs and many successful companies have found that offering benefits improves full-time and part-time job retention and an overall ROI. Companies who feel they have to cut jobs and wages and not hire due to a slight increase in costs shouldn’t blame the workers rights to health care, they should be looking into their business model to see why they can’t compete. So while ObamaCare affects job growth, hiring, wages and operating costs, are impacted by ObamaCare, it’s not enough to cripple a business and take away health care reform to save a few bucks.


Is ObamaCare Really a Job Killer?