Employers have not been cutting workers' hours to escape having to provide them with health insurance, a new ADP Research Institute report has found.
"For all the talk, there have been very small shifts in part-time hiring...almost statistically insignificant," said Christopher Ryan, vice president of strategic advisory services at ADP, a human resources consulting firm.
Obamacare mandates that companies offer coverage to all employees who work more than 30 hours a week. Critics said this rule would prompt employers to reduce workers' schedules to avoid the mandate, which kicked in for large employers this year and will take effect for those firms with 50 to 99 employees next year. (Companies with fewer than 50 workers are exempt.)
ADP found that the share of the labor force working fewer than 30 hours remained virtually the same between 2013 and 2014. Same goes for workers employed 30 to 34 hours a week and more than 35 hours a week.
This remained true across industries. Part-time employment barely budged in fields including leisure and hospitality (about 43%) and education and health services (about 27%). And it actually declined in wholesale and retail trade, from 24.1% in 2013 to 21.3% in 2014.
These results are in line with data from the federal Bureau of Labor Statistics, which shows part-time employment remaining flat or declining slightly between 2010 and 2015, Ryan said.
One reason why employers aren't reducing workers' hours is because the economy is improving. So there's a greater demand for labor. Some companies interviewed by ADP said they may increase their part-timers' hours to retain talent and reduce training costs.
"When it comes to staffing, employers are going to put their business and customers first," Ryan said. "The law of supply and demand is trumping other considerations."
Obamacare, however, will likely reduce how much people work overall ... but it will be a voluntary decision, according to a Congressional Budget Office report released last week. Some workers will opt to quit because they can now get health insurance through the Obamacare exchanges. Others will limit their hours so they can keep their eligibility for subsidies and Medicaid.
"it takes two sides to end a war but only one to start one. And those who do not have swords may still die upon them." Tolken
I'm glad the true facts are getting out there. Now, if we could only pound them into thick skulls.
I don't agree with the last statement they make, however. I do not think any worker will 'opt to quit' just for Obamacare, because finding a new job is so iffy in the US right now. As for limiting hours? I can't make a call on that. I know a couple people who are not fully disabled, who would like to get back into an easy job, but can't because even working 10hrs a month would bust their eligibility. With some of the drugs they're taking (some non-generics for Rhemotoid Arthritis are $1000+), they have to have their insurance. So, they're stuck. With the drugs, they feel well enough to go back to work. With Work, they lose the insurance paying for the drug.
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Tev, they're not saying that some workers will quit,they're saying some workers have already quit their jobs because of Obama care. Turns out some people were working second jobs or even just some jobs only for the health insurance and when they could get it cheaply, they decided not to stay at jobs they hated.
"it takes two sides to end a war but only one to start one. And those who do not have swords may still die upon them." Tolken