In a report issued today, the Congressional Budget Office (CBO) projects that the the Affordable Care Act (ACA, aka Obamacare) will result in a net fewer 2.5 million full-time jobs over the next decade.
The report calculates the number based on persons choosing not to work because of more available health care coverage and on employees choosing to work fewer hours. This decline in hours worked will translate into a loss of 2.5 million full-time positions by 2024, the CBO estimates.
The CBO's rationale for fewer persons working and more employees working fewer hours is that, with premium subsidies and health care more readily available, people won't need to work as much, if at all, depending on their situation.
The CBO also projects a toll on business employment once the employer shared responsibility provision (aka "play or pay") kicks in next Jan. 1., as employers cut staff or restrain workforce growth.
“Over time, more people are expected to respond to the new coverage options, so enrollment is projected to increase sharply in 2015 and 2016,” the budget office said in its report. It estimates that as of 2017, about 25 million Americans a year will obtain coverage on the exchanges.