The Next Time You Hear THIS…….

…..” We have MORE full-time workers than 2007″, hit them over the head with THIS.

From Investors Business Daily.com By Jed  Graham

How long before we CANNOT afford THIS ??

 

ObamaCare Cuts Low-Wage Workweek Near Record Low


Here’s something worth paying attention to this Labor Day: The workweek in low-wage industries has fallen back to the historic lows seen at the depths of  the recession.

The White House and like-minded economists have disputed the notion that  ObamaCare is having a meaningful impact on work hours by noting that the  private-sector workweek has recovered pretty much back to where it was in 2007,  before the economy tanked.

But that view from 40,000 feet overlooks what is happening in industries  likely to feel the brunt of ObamaCare’s  employment impact: those in which wages are modest and the ranks of the  uninsured are high.

A more rigorous analysis of monthly industry data from the Bureau of Labor  Statistics reveals a stark contrast between workers in low-wage industries and  the rest of the private sector.

For the 30 million workers in industries where nonsupervisors average about  $14.50 an hour or less, the workweek has been shrinking pretty steadily for the  past 18 months, reversing a fledgling recovery in work hours.

As of June, these workers averaged 27.7 hours per week — only four minutes  more than the record low hit in March 2009.

And preliminary data point to a further decline in the low-wage workweek in  July, possibly to new depths. Sectorwide July data show the workweek shrank in  both the leisure and hospitality and retail industries, among others. Those two  industries alone account for nearly 75% of these 30 million low-wage jobs.

Meanwhile, the 36.9-hour workweek in June for the other 84 million nonfarm  private-sector workers remained a full hour longer than the 2009 low and a bit  longer than it was before the recession.

As a whole, low-wage industry groups added just shy of 1 million jobs in the  18 months through June, but total hours worked grew one-third slower than  payrolls over that span. In effect, the shorter workweek in low-wage industries  boosted payrolls by 320,000.

For a profit-making firm facing a 40% federal and state tax rate, the $3,000  annual, nondeductible fine employers may face for each worker who accesses  ObamaCare subsidies is equal to $5,000 in deductible wages.

Thus, for a worker earning $15,000 in compensation, ObamaCare could raise an  employer’s cost by one-third.

It shouldn’t be a surprise that a good number of low-wage employers in  industries with low profit margins have opted to cut hours rather than face such  a penalty.

While restricting hours has downsides for business, some employers may see  little choice, given that small competitors are free of ObamaCare mandates.

Although penalties weren’t set to take effect until January 2014, employers  have had reason to be proactive. For very large employers, adjusting the mix of  part-time and full-time workers is necessarily a slow process. Beyond that,  fines imposed in 2014 were to be based on staffing levels starting, at the  latest, in the second half of 2013.

President Obama in July delayed the penalties for a year, but employers may  not let down their guard because 2014 staffing levels will determine 2015  fines.

Recently, IBD highlighted four industry groups with 4.25 million workers  (retail bakeries, general merchandise stores, home centers and providers of  social assistance to the elderly and disabled) that have seen unprecedented declines in work hours since ObamaCare became  law.

The data provided a strong counterpoint to White House claims that a stable  workweek in the restaurant sector disproved any negative impact on work hours  due to ObamaCare.

What the White House failed to note is that the average restaurant workweek  of about 25 hours was already far below the 30-hour threshold at which ObamaCare  employer penalties kick in. New part-timers, for example, could be hired at 28  hours per week and raise the average.

Still, some questioned whether the industries singled out by IBD were  anomalies. Now, with data covering 30 million workers, any question should be  put to rest: Something is amiss with the workweek for low-wage workers.

The decline in the low-wage workweek back toward record lows, together with  official data showing fewer people working 30-34 hours per week and a multitude of  anecdotal reports of hours being cut, points to a meaningful ObamaCare impact on  the workweek.

The trajectory of the low-wage workweek should be a concern, considering that  many employers delayed hard decisions amid confusing regulations that were late  in coming. Further, employer penalties will keep pace with health insurance  premiums, which reliably grow far faster than hourly wages for modest-skill  workers. That means the employer mandate’s bite may become more painful over  time.

~

Just last week, we had some moron, I think it was Perez, the Labor secretary, from the Regime try to tell us the number of full-time workers were on the INCREASE despite REAMS of data proving otherwise.

What with the looming implementation of the disastrous PPACA, aka Obamacare, the route MOST employers are choosing to take is one of hiring part-time workers, those traditionally working less than 30 hours per week.

Look for this trend to increase in the coming months, as Obamageddon closes in on small businesses. Couple this with an onerous burden of new regulations, now is NOT a good time to start a small business, or keep one open UNLESS it is you, and a select few others at it.

Toss in this phony “strike” by fast-food workers, aided and abetted by the damnable SEIU, along with the AFL-CIO blessings, looking, in some areas, for a raise in the minimum wage laws to $15 per hour, look for a HUGE increase in the already staggeringly high unemployment ranks among the younger people in the workforce, especially in the inner-cities.

$8 for a Big Mac?  Not here. If these activists get their way, and you are an investor in chain restaurant stocks, I’d be heading for the tall grass, with a fistful of SELL orders.

~

Clyde

 

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4 Responses to The Next Time You Hear THIS…….

  1. Hardnox says:

    Good post bro. The lapdog media continues to shine this disaster of an administration by refusing to report the truth. Sadly few articles such as this see daylight. The sheeple simply don’t know about what is going on. Many simply don’t care.

    In the meantime, the establishment hacks keep pushing for de facto amnesty for illegals. Yesterday while listening to Rep. Louie Gohmert (substituting for Hannity) he had a guest on, an economist, who explained that we have the lowest number in the workforce since the 60’s while at the same time 5 million illegals have supplanted American workers.

    None of this will even begin to get straightened out until we get adults in charge at the fed and state levels.

  2. Grouchy Fogie says:

    MANY young folks learned the basics of business at places like Mickey D, Domino’s, Pizza Hut, Burger King and Wendy’s. And it was understood by all concerned that these were strictly learning experiences, and not career choices.
    Even the managers are in that situation.

    The administration is killing the career ladders of millions of youth, and entry level managers, in so very many ways~!
    AND
    If a Big Mac hits $8.00 or anywhere near close, you can count on a lot of failed businesses and even more lost jobs~!

  3. Clyde says:

    That would just be the beginning,GF. Lawn mowing in the summer, most retail other than fast food, etc etc. Thanks for stopping by.