According to a Federal Survey, Obamacare Raises Prices and Slows Hiring in Many States Including Ohio

According to a recent survey of regional manufacturers, Obamacare may be the reason why the economic recovery is still struggling in many states including Ohio.

While the law has not outright stopped job growth, it appears to have slowed the gains of minority sized firms in the Buckeye state. According to the survey, 18% of the firms surveyed said that they employ fewer workers because of the Affordable Care Act than they would if it was absent. Only 3% said that they have hired more because of Obamacare. In addition to this, 18% said they have increased their part-time staff, alleviating them from the requirements to provide health care under Obamacare, while only 1.5% reported said they have scaled back their part-time staff as a response.

            Other states such as Pennsylvania and New York are showing similar responses to the rising prices of Obamacare.

In New York, 17% of service firms and 22% of manufacturing firms reported that they have cut their full time work force in response to the health care law, while the part time work force has grown by 20%. An analysis by Investors Business Daily showed that the biggest impact of the Obamacare mandate has been on the low-wage sectors. In industries where the average pay was below $14.50 an hour, the average work week shrank to just 27.4 hours, passing the record low from the recession in 2009.

            Additionally, companies have also turned to outsourcing to avoid the economic drag created by Obamacare.

Manufacturers in Philadelphia reported that they increased outsourcing by 14%, while only 3% said they are outsourcing less. Manufacturers who participated in the survey in various states such as Ohio also reported that Obamacare has resulted in price hikes and the modification of employee health benefits. 88% said they have raised employee contributions and 91% said they raised deductibles. So what will 2015 and Obamacare bring for employers and employees? More than half believe a spike in prices, less work and a much higher “per-person” cost in the work force.

Tracy McManamon on Google+