Budget office: Obamacare will cause a decline of 2 million workers through 2017
|By Joseph Lawler; Joseph Lawler, Economic Correspondent|
Obamacare will lead to a drop of 2 million in the number of full- time equivalent workers in 2017 and 2.5 million in 2024, according to the
That's a major increase in the impact of the law since the last time the CBO,
Obamacare will reduce the total number of hours worked by 1.5 to 2 percent over the years 2017 to 2024, according to the CBO, "almost entirely" because workers will choose to work less. Because those workers will predominantly be low-wage workers, the loss of labor consumption resulting from the law will be proportionately smaller - - roughly 1 percent over the same time frame.
The decline in employment is a consequence of expanding health care coverage through exchange subsidies and
Elmendorf also noted that Obamacare's penalties for employers who do not offer employees insurance coverage will reduce hours worked, as will the tax increases included as part of the law.
The CBO also downgraded its projections of the number of Americans who will gain health insurance coverage through Obamacare in its updated budget projections Tuesday morning to reflect the rocky rollout of the Obamacare exchanges.
The budget office now expects only 6 million people to enroll in the exchanges in 2014, down from 7 million anticipated previously. It also decreased its projections of people entering
As a result of lower-than-expected exchange and
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