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Obamacare Slows Hiring, Raises Prices in Five States: Fed Surveys

Investor’s Business Daily (08/21/14) Jed Graham

Recent regional U.S. Federal Reserve Bank surveys indicate that the Affordable Care Act may be slowing the economic recovery, particularly in low-wage sectors. Eighteen percent of regional manufacturers told the Philadelphia Fed that they employ fewer workers due to the law, while 3.0% said they employ more workers. Eighteen percent said that they hired more part-time staff due to the law, and 1.5% have hired fewer part-time workers.

The New York Fed found that 22.0% of manufacturing and 17.0% of service firms have fewer employees because of the law, 20.0% in each sector have more part-time workers, and 5.0% have fewer part-time workers. The average workweek has dropped to 27.4 hours among private industries with average pay of $14.50 per hour, lower than during the recession, according to an analysis of U.S. Department of Labor data by Investor’s Business Daily.