Obamacare Effect on Jobs Hits Millions More U.S. Workers

Email
    Text size

Oct. 1 marks the start of Obamacare for millions of Americans. That's when the Obamacare health insurance exchanges (HIX) go live and open enrollment begins.

Today (Friday) marks another key Obamacare moment. The August unemployment report released today gave us a clearer look at the Obamacare effect on U.S. jobs.

The August jobs report showed unemployment at 7.3% - a tenth of a percent down from July's 7.4% rate. Although August's 7.3% was the lowest rate since December 2008, U.S. joblessness hasn't improved - with a big reason stemming from the effects of Obamacare.

The key number is the underemployment rate, which remains very high at 13.7%, only a slight drop from July's 14%. This number includes part-time/temporary workers who want full-time jobs, plus those who are unemployed.

This trend of part-time workers is linked to how companies are prepping for Obamacare.

The Affordable Care Act's mandate that companies with 50 or more full-time workers must provide health insurance to all full-time employees, those working 30 or more hours per week, triggered the "part time-ification" of America. Employers have been staffing part-time workers to avoid providing them with health benefits.

That's why Ed Haislmaier, a senior research fellow at the Heritage Foundation, told FOX News earlier this year of Obamacare, "If you want to have reduced work, lower wages and economic stagnation, this is a great way to do it."

And even with the administration's recent one-year extension of implementing the employer mandate until 2015, most small companies are getting ready now.

The chilling results of a July U.S. Chamber of Commerce survey showed 74% of small businesses are positioning themselves to slash hours, lay off workers, or both.

Indeed, the survey results - shown in the accompanying chart - showed that small business owners feel their biggest challenge is Obamacare.

And as we learned last week, not everyone saw this Obamacare effect coming...

The Obamacare Effect on Union Members

Union members have joined in the outrage against Obamacare, as they see their medical plans and benefits taxed for the legislation.

During a Christian Science Monitor breakfast last week at the St. Regis Hotel in Washington, D.C., AFL-CIO President Richard Trumka admitted his organization "made some mistakes" in supporting Obamacare.

The AFL-CIO is the umbrella federation for unions in the United States. It houses 57 unions and represents more than 12 million individuals.

Trumka said he was surprised that employers have reduced workers' hours below the 30-per-week mark to avoid an employer penalty associated with Obamacare.

"That is obviously something that no one intended," said Trumka. "No one intended the act to result in people working fewer hours just so [employers] don't have to pay for healthcare."

Then this past Monday, 40,000 members of the International Longshore and Warehouse Union (ILWU) announced they are formally dissociating from the AFL-CIO.

Why?

In an Aug. 28 letter to Trumka, the ILWU cited AFL-CIO's support of passing the Obamacare legislation, and particularly the "Cadillac healthcare tax" component of it, as the main cause of terminating their relationship:

"We feel the Federation has done a great disservice to the labor movement and all working people by going along to get along," the letter read.

It went on to slam President Obama and Trumka for going back on their promise that Obamacare would not tax medical plans and benefits. Regardless of that promise, President Obama subsequently pushed for such a tax, and Trumka fell in line behind him.

Why Is Obamacare Hitting Our Job Market so Hard?

One of the major problems with Obamacare is that it was completely rushed in order to be passed; a ridiculous consequence of how things "work" in today's Washington.

It should then come as no surprise that Obamacare lacks the degree of forethought and diligence that should necessarily go into a law that substantially affects the lives of every American.

But before you get completely steamed, keep in mind our ultimate goal at Money Morning is to figure out ways our readers can turn a profit, even from something like Obamacare. Remember the old adage, "Buy when there's blood in the streets, even if the blood is your own."

That's why we've found a way to turn the Obamacare mess into a winning profit play.

Take a look at this video to find out how you can not only profit from Obamacare, but you can also protect yourself from it, starting today.

Get caught up on all the Obamacare facts you need to know: