Behind the Dismal Jobs Numbers: The ‘New’ Economy Takes Shape
April 6, 2013 - 6:33 am
With the labor participation rate the lowest it’s been since 1979, and another 200,000+ workers that were added to the category of being too discouraged to look for work, nearly 90 million Americans are now out of the work force. The major culprits in March are being identified as the payroll tax “increase” (actually, the payroll tax cut was never meant to be permanent) and, of course, Obamacare.
The full effects on jobs of Obamacare have not been felt yet. There will certainly be millions of more workers losing full-time jobs as their employers seek to bring their full-time workforce under 50 so that they can avoid the worst of Obamacare’s mandates and taxes. Some employees will be shifted to part-time work — especially in the retail and restaurant industries. Others will simply see their jobs disappear.
So what kind of economy appears likely to emerge from the ruins of The Great Recession? It isn’t just Obamacare that is reshaping our economy. Obama administration policies and regulations that make it more difficult to start a business mean that there will be fewer entrepreneurs creating new products that require good workers to make them. Employers will seek to hire more temporary help during busy periods rather than permanently expand their workforce. The number of full-time workers in some industries will drop dramatically as companies adjust to an economy of sluggish growth, high taxes, and a clinging uncertainty about the future by either not filling open positions or hiring part time help.
Without regulatory and tax reform — and the repeal of Obamacare — the post-recession environment is going to be a lot more unfriendly to both business and labor. But at least we’ll all be equal in our misery thanks to the president’s redistributionist policies and a disrespect for those who achieve, or wish to achieve, success.