In June, the household survey reported that part-time jobs soared by 360,000 to 28,059,000 – an all time record high. Full time jobs? Down 240,000. And looking back at the entire year, so far in 2013, just 130K Full-Time Jobs have been added, offset by a whopping 557K Part-Time jobs. And there is your jobs “quality” leading to today’s market euphoria (if only for now).
This is the ObamaCare effect. Obama’s health care law incentivizes employers to drop workers to below 30 hours per week in order to avoid incurring liabilities or fines. Or, if the employer is near the 50 employee mark, to trim down to below 50 to escape ObamaCare altogether.
Factor in the fact that the rate of participation in the job market remains at a historic low, and the economy remains weak. McJobs won’t power a full recovery.