Monday, October 15, 2012

Part Time Work May Become The New Normal

According to last month's employment report, the number of part time workers, who were in that situation for the lack of a full time job, rose by 7.2% from 8 million to 8.6 million.  This was a record rise in part-time employment and this fact, alone, is supposedly why the unemployment rate fell from 8.1% to 7.8%. 

The problem with the sudden rise in part time workers is that it could be a sign of the times; and, in fact, a new normal for employment of the low wage workers in this country. And, I think ObamaCare will be at the core of this trend.

The fact is that, under ObamaCare, companies are excluded from being forced to provide health insurance for their employees and will not be fined (taxed) if the company employs less than 50 full-time workers.  Further, even if a company is above that "50" threshold, it is not required to offer health care coverage to any of its part-time workers; those working less that 30 hours a week.  This, to me, is a formula designed to destroy full-time work in America.  If I have a company that employs 49 workers and I need to hire another, I will probably hire two part-timers, instead.  Because, to go to 50 full-time employees means that I will be automatically forced to provide health care coverage at a rather high cost.

So what will Obama tell that waitress or dishwasher when that person has to go out and find and juggle another job; just to make ends meet?  This is just another insane consequence of ObamaCare.

For those who seem to think this won't happen, just read this news story that covers how the parent company of Red Lobster, LongHorn, and Olive Garden is experimenting with part-time workers to avoid providing health care to all of its restaurant workers: The Orlando Sentinel: Darden tests limiting worker hours as health-care changes loom: http://www.orlandosentinel.com/business/os-darden-part-time-workers-20121007,0,1505128.story

--- Reference: Bureau of Labor Statistics September Employment Report: http://www.bls.gov/news.release/empsit.nr0.htm

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