A new analysis conducted by Goldman Sachs found that Obamacare has caused a “few hundred thousand” individuals to accept part-time, as opposed to full-time, work.
Per the analysis’ findings, workers have involuntarily accepted part-time employment because the Affordable Care Act encourages employers to not hire employees full-time.
One key provision of Obamacare that Goldman Sachs highlighted is the requirement that employers with between 50 and 99 full-time employees provide healthcare to their employees. This provision is believed to have caused firms to cut hours and be more conservative with whom they hire.
Goldman found that service industries were most prone to not giving their workers healthcare benefits. Examples of these types of businesses include bars, restaurants, and retail outlets.
It is important to note that in many situations, employees do choose part-time work voluntarily, particularly when they have other obligations. It is also common for retired workers to work a part-time job, whether it’s for extra income, to keep busy, or both.
In their analysis, Goldman noted that 6.4 million individuals work part-time, which makes the few hundred thousands who are forced to do so a small percentage of the total part-time workforce.
This study suggests that the underemployment rate has been significantly affected by the Affordable Care Act. Overall, the underemployment rate in the U.S. has decreased much more slowly than the actual unemployment rate.
