We lost 148,000 full time jobs last month, despite media accounts that said the jobs report was “strong,” or a “sign of recovery”.
And we can pin most of the losses on Obamacare.
Were it not for the implementation this year of the national healthcare law that penalizes companies that hire full-time employees, this job market would be a lot better.
Fortunately, while the market celebrated the anemic jobs report and the media reported on what they termed a “strong” jobs report, some of us actually read the jobs report. And what we read wasn’t all that great, even if it wasn’t surprising.
“Voluntary plus involuntary part-time employment rose by a whopping 441,000 jobs,” writes Mike Shedlock at Mish’s Global Economic Trend Analysis. “Take away part-time jobs and there is not all that much to brag about. Indeed, full-time employment fell once again, this month by 148,000.
Shedlock says that involuntary, part-time employment led the parade of numbers, growing by 278,000 jobs. And we told you companies would be reluctant to hire full-time employees when we objected to the passage of Obamacare.
Involuntary part-time employment is part-time employment necessitated by the inability to find a full-time job, presumably because companies are offering fewer full-time posiitons.
And here’s why:
In the beginning of the year, the Obama administration undertook two steps required by Obamacare, which is largely driving the trend of the creating more part-time jobs, while losing more full-time jobs.
Under Obamacare, “the penalty for not offering a qualified healthcare plan is $2,000 per person,” writes Shedlock, “for companies that have more than 30 full-time employees.”
And just to make sure the largest numbers of current employees get screwed, the administration also redefined the definition of full-time employment from 32 hours to 30 hour per week.
The result has been that real people make less money, for real, because they work fewer hours. And real people are offered fewer full-time jobs because it’s more expensive now to hire them.