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REPEAL
;Finally, the BLS report includes some interesting data on part-time work. The BLS divides part-time workers into two categories. About two-thirds of all people who work from 1 to 34 hours per week do so voluntarily, for example, because they are retired, are studying, or have family obligations. The rest are working part-time for economic reasons, that is, either because they can’t find full-time work or because their employer has cut their hours. Those are popularly known as “involuntary” part-time workers. During a recession, the number of involuntary part-time workers tends to increase, and then falls again during the recovery. The behavior of voluntary part-time employment is just the reverse—it falls during a recession and rises again during the recovery.
Both trends are evident in the next chart, which shows that involuntary part-time work fell to a low for the recovery in June. Meanwhile, the trend of voluntary part-time unemployment has been upward. Both trends appear somewhat more pronounced than during previous recessions.
Some labor-market observers expect the number of part-time workers to rise sharply next year when the Affordable Care Act comes into effect. When fully implemented, the ACA will require employers to provide healthcare coverage for full-time workers or pay a penalty. At the same time, it will make it easier for workers who are not covered at work to buy individual health insurance privately through insurance exchanges. That will be especially important for people with pre-existing health conditions, who now often find it impossible to buy individual coverage, and for low-wage workers, who will receive subsidies when they buy insurance through exchanges.
As a result of these various incentives, the ACA may have the paradoxical effect of increasing both voluntary and involuntary part-time work. Voluntary part-time work may rise because, at present, some people who would prefer to work fewer hours reluctantly work full time solely because that is the least expensive way, perhaps the only way, to get health insurance. On the other hand, some employers may cut hours or replace full-time positions with part-time positions in order to lower healthcare costs or avoid penalties. That may make full-time work harder to find for many who want it. It will be interesting to watch the trends of part-time employment as more provisions of the ACA come into effect at the first of the year.
In other words, whether or not the ACA in reality will have any significant effect on work status remains to be seen until after the compliance requirement for businesses with more than 50 employees becomes effective in 2015.
Oh, BTW, summer jobs for students also contributes to the rise in PT employment in June.