Zero Hedge points us to an ugly detail in today’s strong jobs report.
In June, the household survey reported that part-time jobs soared by 360,000 to 28,059,000 – an all time record high. Full time jobs? Down 240,000. And looking back at the entire year, so far in 2013, just 130K Full-Time Jobs have been added, offset by a whopping 557K Part-Time jobs.
Some economists have attributed this trend to the Affordable Care Act, aka Obamacare. Specifically, they blamed the employer mandate, which forced businesses employing 50 or more workers to offer health insurance or pay a penalty of $2,000 per full-time worker.
Generally, workers are considered to be full-time if they work over 30 hours per week.
In their efforts to dodge this mandate, some companies are thought to have begun scaling back hours.
But earlier this week, the Treasury Department issued a statement saying that the White House would delay until 2015 the enforcement of this requirement.
UBS’s Drew Matus speculated that this would likely be good news for hiring in the near-term.
The Administration announcement of a one-year delay in the employer mandate component of the Affordable Care Act, or “Obamacare”, could help boost payroll growth. Although the delay is only temporary, for those employers on the cusp of the 50 employee threshold this delay may prompt them to hire as they may be unwilling to continue to postpone hiring to avoid being subject to the mandate. Additionally, employers may delay plans to cut back employee hours to keep them from being classified as “full time” (the law considers employees who work 30 hours per week full-time).
Again, this likely to be only temporary. But it is a trend to keep an eye on in the near-term.