The jobs collapse “suggests that businesses are not exaggerating when they tell pollsters that the new health care law is holding back hiring,” writes James Sherk in the Heritage Web Memo “Economic Recovery Stalled After ObamaCare Passed.”

Sherk says the Patient Protection and Affordable Care Act discourages hiring in a number of ways:

  • Employers with more than 50 workers are facing rising health care costs because they have to buy more costly government-approved insurance or pay a penalty. Adding to their work force becomes more expensive than it would have been otherwise.
  • Businesses are up against significant uncertainty about what is considered “qualifying health coverage” and what that coverage will cost.

“They also do not know what the health care market or their health care costs will look like in four years,” writes Sherk. “This makes planning for the future difficult.”

The report acknowledges the fact that “improvements in the job market ground to a halt after Congress passed ObamaCare” isn’t proof that the health care law caused it. But, Sherk writes, “the fact does lend strong weight to the voices of businesses who say that the law is preventing hiring.”

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