Obamacare May Encourage Part-Time Employment

Under the Affordable Care Act, employers with 50 or more employees will be required to provide health insurance that is both affordable and covers the minimum essential benefits provided in the mandate. For some small employers close to reaching the large group size mandates, the best option to keep costs down is to hire more temporary, seasonal, or part time employees. By hiring these employers working less than 30 hours per week, the employers will not be penalized or mandated to provide health benefits. This means that companies may be more likely to hire an increasing number of part time employees in order to avoid the costs of providing benefits to all full time eligible employees.

For many college graduates and low income earners, this means that part time work will be expanding and full time employment may not be a viable option. According to the Ball State University Economist Michael Hicks, America is going to grow into a country with many part time workers in search of full time jobs in a time when only part time work is available.

More information on this topic can be read here.