February 5, 2014

PPACA to Have Minimal Effect on Hiring, say Economists

business graph with magnifying glassData from the National Association for Business Economics (NABE) indicates that the vast majority of companies will see little to no effect on hiring plans due to the Affordable Care Act. About 75 percent of respondents to the NABE survey said that the PPACA has not influenced planning or expectations for 2014. About 20 percent said that the law would have negative effects on business conditions and 5 percent said the impact would be positive.

A very high number (85 percent) said that the law would not necessitate a change in hiring practices though 6 percent said that it would lead to increased hiring of part-time workers and reduced hiring of full-time staff. A further 8 percent said that it would cause less hiring of all types of workers. The change in the monetary policy of the Federal Reserve is also not expected to affect businesses in a major way.

About 70 percent of respondents reported that a reduction in the federal economic stimulus would not affect their profitability and approximately 15 percent foresaw positive and negative earnings impacts, each. Nearly all respondents (94 percent) said that uncertainty about economic policy would not change capital investment plans.

“A significant majority of survey respondents anticipate little material impact on business conditions from the implementation of the Affordable Care Act or from possible changes in the Federal Reserve’s accommodative monetary policy stance,” Jack Kleinhenz, president of NABE, said in a statement. “On net, survey respondents are more optimistic in their economic outlook and, regardless of any changes in monetary policy, expect their firms’ performance in 2014 will be superior to that in 2013.”


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Joshua Bjerke, from Savannah, Georgia, focuses on articles involving the labor force, economy, and HR topics including new technology and workplace news. Joshua has a B.A. in Political Science with a Minor in International Studies and is currently pursuing his M.A. in International Security.