Would Employers Avoid Hiring Now Because of the Health Care Bill?

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Sunday, 16 January 2011 09:53

That's what Representative Vicky Hartzler (R-Missouri) claims is going on in her district. The article could have noted that no evidence supports this claim. In other words, there is no increase in average hours per worker, no surge in temp employment, nor are the businesses most affected by the law (those with around 50 employees) in any apparent way less prone to add workers than larger or smaller firms.

It is also worth noting that most of the requirements of business, like buying insurance for workers or paying a penalty, don't kick in until 2014. Four million workers leave their jobs every month. If a firm is worried that a requirement that kicks in 2014 will make it unprofitable for it to have additional workers on its payroll at that time, there would be little reason for it not to hire in 2011, since it will almost certainly lose workers between now and 2014 which will allow it to get back to the size it desires when the new requirements go into effect.