Tuesday, September 3, 2013

Obamacare Fallout: The Workweek in Low-Wage Industries has Fallen back to near Historic Lows

The White House and like-minded economists have disputed the notion that ObamaCare is having a meaningful impact on work hours by noting that the private-sector workweek has recovered pretty much back to where it was in 2007, before the economy tanked. 
But that view from 40,000 feet overlooks what is happening in industries likely to feel the brunt of ObamaCare's employment impact: those in which wages are modest and the ranks of the uninsured are high.
A more rigorous analysis of monthly industry data from the Bureau of Labor Statistics reveals a stark contrast between workers in low-wage industries and the rest of the private sector. 
For the 30 million workers in industries where nonsupervisors average about $14.50 an hour or less, the workweek has been shrinking pretty steadily for the past 18 months, reversing a fledgling recovery in work hours.
As of June, these workers averaged 27.7 hours per week — only four minutes more than the record low hit in March 2009. 
And preliminary data point to a further decline in the low-wage workweek in July, possibly to new depths. Sectorwide July data show the workweek shrank in both the leisure and hospitality and retail industries, among others. Those two industries alone account for nearly 75% of these 30 million low-wage jobs.
Read the rest of the story HERE.

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