ObamaCare Is Lowering Part-Time Workers' Hours
August 14, 2013 - National Center for Policy Analysis
Something odd is happening to the workweek, unpublished data from the Current
Population Survey (CPS) show. Even as the number of people working has grown by
2.2 million, or 1.6 percent, over the past year, the number clocking 30 to 34
hours a week has shrunk. In the second quarter, the number of workers putting in
30 to 34 hours at their primary job fell by a monthly average of 146,500, or 1.4
percent, from a year earlier, says Investor's Business Daily.
- By comparison, the number working 25-29 hours per week in their primary
job rose by 119,000, or 2.7 percent.
- This oddity has an obvious explanation: ObamaCare's employer mandate
applies only to full-time workers, which the law defines as 30 hours per
week.
- As the White House and some liberal economists step up denials that the
2010 health law is messing with the work hours of modest-wage workers, these
CPS data provide the clearest evidence yet that the employer mandate is having
a measurable impact.
Along with more workers clocking just below 30 hours in their primary jobs,
CPS data show the number working 20-29 hours in secondary jobs rose 105,000, or
7.6 percent, from a year ago. Other Labor Department data also suggest an
ObamaCare effect.
- The average retail workweek for non-supervisors shrank to a three-year
low of 30 hours in July, down from a post-recession peak of 30.8 hours in
January 2012.
- That's the sharpest decline in the retail workweek since the early
1980s.
Temp employment has surged, likely because temps can work for at least six
months without triggering ObamaCare's mandate, and their hours are
unlimited.
Many have pointed to part-time employment as a good barometer of ObamaCare's
impact, but that too has limitations, beyond gauging how much of it is tied to
the economy. Actually, the Bureau of Labor Statistics' under-35-hours-per-week
definition of part-time means that many workers facing hour cuts already were
considered part-time.
Further, employers looking to retain valued employees may offer a choice
between working at least 35 hours or fewer than 30 to spread any increased cost
over longer average workweeks for full timers.
This could help explain why the average leisure and hospitality workweek has
remained flat at about 25 hours. First, it is so low already that workers
getting hired for 28 hours per week would raise the average. Second, some may be
working extra hours.
Source: Jed Graham "ObamaCare
Spurs Shift Away From 30-34-Hour Workweek," Investor's Business Daily,
August 5, 2013.
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