I read a news article the other day – “ObamaCare Employer Mandate: A List Of Cuts To Work Hours, Jobs” and I’ll provide a handy-dandy link to the article.
http://news.investors.com/politics-obamacare/092513-669013-obamacare-employer-mandate-a-list-of-cuts-to-work-hours-jobs.htm
In the article, the website talked about how they were providing a download so that people could compile the data in Excel, and then do their own research. To read the title, it does seem at the beginning like the concept of Obamacare is creating a huge rush of employers to stop offering their employees insurance. So I decided to do a little excel work, and a whole lot of research, and this is what I came up with.
The first statistic I looked at was the TOTAL number of employers on the list (313) and the total number of employers in the US, as provided by the census bureau. When looking at these totals, this list of what looks like a large amount of employers (to me, cause I’ve only had so many jobs in my life) is actually .001% of the total employers in the US.
The next statistic I looked at was the total number of jobs affected. Now, I had to do a little footwork here, because not all of the jobs on the list had how many employees would be affected. I took an average of those employers who did list affected employees, and I used that average for all of the “blank” employers. Sure, some of them will be higher, but some of them will be lower. And I left in the extremely high numbers that were listed, so this average is probably on the high side.
That being said, If all of the employers listed on the website stopped providing insurance for the average number of employees, that would be approximately 80,000 people who would have hours cut short, and who would have to get their insurance through an exchange. This is more than some small cities, and so it looks like a REALLY BIG number. So we go back to the Census Bureau. There are 144 million jobs in the US at any given time. (June Jobs Report) This means that the total percentage of jobs that are being made part-time or less due to Obamacare is .0007%
Now I get that to the guy who is working at Dave and Buster’s or the University of Alabama or Kern County in California, or the San Diego Community College District who now has to go out to the exchanges and get insurance will probably be bummed that their hours were cut. But when I look at the numbers, all I can think is that .0007% is statistically insignificant. Additionally, the changes only affect certain part-time employees.
Next I looked at the distribution between “Red” and “Blue” states and “Private ” and “Public” companies. 26% of those companies lowering employee hours were private companies, and 74% were public companies. Of the private companies, 57% were from “blue” states and 43% were from red states, for a total of 11,791 employee and 8,747 employees respectively. Of the public companies, 59% were blue states an d 41% were red states., for a total of 35,614 and 24,275 employees. The definition of “red” and “blue” came from the statistics and voting trend for the most recent presidential election. When I first did the calculations, I actually used the 2008 voting statistics, and a lot more of the states were red, but I wanted the data to be accurate.
This information covered 313 employers in 38 different states. I’m sure that there are more employers, as much as I’m sure that there are employers who are doing other things to get out from under the costs associated with health care. However, I disagree with a “news” report that presents accurate data in a vacuum, creating concern and causing people to make snap decisions without all of the relevant information. I can see politicians or even the more ignorant of my own contemporaries pointing to something like this and saying “OMG! Obamacare is causing widespread panic” or “the affects of Obamacare are so far-reaching”.
It comes down to this: .0007% is neither widespread or far-reaching.