Obamacare not to blame for jump in part-time jobs, Fed researchers say
If you think Obamacare is to blame for recent increases in part-time employment, the Federal Reserve of San Francisco says think again.
The bank issued a paper Monday saying that President Obama’s health-care overhaul probably has only a “small” role in the increase in part-time jobs as opposed to full-time employment. Authored by S.F. Fed research advisor Rob Valletta and research associate Leila Bengali, the paper focuses on reasons for the increase in part-time work but notes the law officially known as the Affordable Care Act probably has little to do with them.
“Before the law was passed, most large employers already faced [Internal Revenue Service ] rules that prevented them from denying available health benefits to full-time workers. These rules gave employers an incentive to create part-time jobs to avoid rising health benefit costs,” the paper says.
It goes on to say: “Moreover, recent research suggests that the ultimate increase in the incidence of part-time work when the ACA provisions are fully implemented is likely to be small, on the order of a 1 to 2 percentage point increase or less. This is consistent with the example of Hawaii, where part-time work increased only slightly in the two decades following enforcement of the state’s employer health-care mandate.”
The findings regarding Obamacare were a small portion of the the S.F. Fed’s overall study, which concluded that recent increases in part-time employment were similar to patterns that followed past recessions. The share of part-time jobs has risen from 17% in 2007 to nearly 20% in 2009 and remained there.
Valletta and Bengali note that adjusted figures show part-time employment after the 1982 recession comprised a slightly larger proportion of the overall jobs market.
“In particular, on a consistent basis, the part-time employment share peaked at 20.3% in 1983, slightly above the recent peak of 19.7% in 2010,” they wrote. “By this standard, the level of part-time work in recent years is not unprecedented, although its persistence during the ongoing recovery is unusual.”
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