Three new surveys confirm that employers are cutting jobs due to the pressures of the ACA, according to a new WSJ report. First up is the a special business survey conducted by the Federal Reserve Bank of Philadelphia:
18.2% are cutting jobs and employees. Some 18% shifted the composition of their workforce to a higher proportion of part-time labor. And 88.2% of the roughly half of businesses that modified their health plans as a result of ObamaCare passed along the costs through increasing the employee contribution to premiums, an effective cut in wages.Those results are consistent with a New York Fed survey, also out this week, that asked “How, if at all, are you changing (or have you changed) any of the following because of the effects that the ACA is having on your business?” For “number of workers you employ,” 21% of Empire State manufacturers and 16.9% of service firms answered “reducing.”
A third study from the Atlanta Fed rounds off the recent evidence—it found that 34 percent of responding businesses intended to start using part time workers more than they had in the past. Earlier this year, when evidence emerged that workers were leaving jobs because they had an alternative source of health insurance to their employers, many pundits spun it as a triumph for Obamacare. This will be harder to explain away.We now know that the ACA is resulting in narrower networks, fewer jobs, and, in some states, higher premiums. Some of these failures are only marginal, some are more serious. But even the year-on-year decline of our health care system is more than enough reason to be concerned. The ACA has not fixed our problems, and, in many ways, has made things worse.