Obamacare is Deconstructing the Labor Market – Russ Winter - InvestingChannel

Obamacare is Deconstructing the Labor Market – Russ Winter

This is a syndicated repost courtesy of Winter Actionables. To view original, click here. The job report reveals (for those who bother to look) that Obamacare is deconstructing the labor market. The incentives are in place to move workers into the under 30 hour or temporary category . � � The cost of providing an approved policy will likely be well above the $2,000 tax imposed. Employers have a huge incentive to purge their businesses of scheduled workers with 30+ hour schedules,� in order to avoid being classified as full-time in 2014. � McKinsey surveys (so far) estimate that 30% of employees will drop coverage all together.

A glance at the jobs added by industry reveals the pattern: more temp help, more low paid, no doubt part time leisure� and hospitality, and retail trade. More government trough feeding sectors such as health and student debt, I mean “education”.

The report revealed that the work week per worker fell by 0.2 hours. � The BBH stated the obvious, that the reduction of the average work week appears to be a function of an increased number of part-time jobs. Then this doozy, � ”The number of people ‘involuntarily’ taking part time work� rose 278k� to 7.64 mln,” the firm adds.

This is consistent with the March job report which showed full time jobs down 77k, part time up 102k. The math is simple: you need three part time workers under 30 hours, who you don’t have to pay under Obamacare to replace two full time workers covered under Obamacare.

graph: Zero Hedge