ACA Will Cause Loss of Two Million Full-Time Jobs, According to CBO Report

Today, the Congressional Budget Office (CBO) issued an updated report on the Affordable Care Act’s (ACA) impact on the labor market and insurance coverage. In its February 2014 budget outlook, CBO estimates that the ACA could lead to a loss of about two million full-time equivalent jobs in 2017, rising to about 2.5 million in 2024.  Although the CBO projects that total employment (and compensation) will increase over the coming decade, that increase will be smaller than it would have been in the absence of the ACA.  According to the CBO, the decline in full-time equivalent employment stemming from the ACA will consist of some people not being employed at all, and other people working fewer hours.  This is a substantial increase from its prior 2010 projection.  The CBO previously estimated that the ACA would reduce household employment in 2021 by about 800,000 individuals.  The CBO’s current estimate for 2021 is a reduction in full-time equivalent employment of about 2.3 million individuals. Continue reading this entry at Littler's DC Employment Law Update.

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