Changing Workforce

Study: One in five NY manufacturers are hiring fewer people because of Obamacare

By Bob Bryan, for Business Insider

Aug 17, 2016

Get Plant Services delivered to your inbox Monday through Friday! Sign up for  Plant Services' complimentary Smart Minute (Monday-Thursday) and Smart Digest  (Friday) e-newsletters to get maintenance and reliability know-how you can put  to use today, plus the latest manufacturing news from around the Web, white  papers, and more. Learn more and subscribe for free today.

According to a new survey by the Federal Reserve Bank of New York, 20.9% of manufacturing firms in the state said they were employing fewer workers because of the Affordable Care Act, the healthcare law known as Obamacare, while 16.8% of respondents in the service sector said the same.

As the New York Fed noted, this still leaves a vast majority of businesses unaffected, but even a one-in-five change is significant.

"The vast majority of respondents in both surveys said they were not changing the proportion of part-time workers or the amount of work outsourced to other firms," the New York Fed report said.

"Most respondents also said wage and salary compensation and other benefits were not being affected by the ACA, though more respondents said they were being cut than raised."

Read the full story.