Heritage Foundation:Why Obamacare Might Cost You A Job
Sunday, October 16, 2011
Back in February 2010, when Congress was still debating the Obamacare legislation, then-Speaker of the House Nancy Pelosi (D-CA) proclaimed to America that the law “will create 400,000 jobs almost immediately.” But according to a new report by Heritage’s James Sherk, Obamacare will have the opposite effect, pricing many unskilled workers out of full-time employment due to the law’s requirement that employers offer health benefits to full-time employees.
According to Sherk, the minimum cost of employing full-time workers under Obamacare amounts to an average of $27,500, more than what many unskilled employees produce. He explains in his paper, “Obamacare Will Price Less Skilled Workers Out of Full-Time Jobs” why increased costs will lead employers to shift to employing part-time workers:
After paying the new health premiums, the minimum wage, payroll taxes, and unemployment insurance taxes, hiring a full-time worker will cost employers at least $10.03 per hour. Full-time workers with family health plans will cost $13.75 per hour.
Employers who hire workers with productivity below these rates will lose money. Businesses employing less skilled workers will probably respond by dumping their employees onto the federally subsidized health care exchanges and replacing full-time positions with part-time jobs.
by Mike Brownfield