Survey: Health Care Law Prompting Small Business Cuts
July 17, 2013
Small business owners are preparing to cut staff hours and full-time employees as requirements related to the health care law rank as a top challenge for firms, according to a recent survey by the U.S. Chamber of Commerce. According to the Small Business Outlook Survey The health care reform will require As 27 percent of small businesses claim that they will cut hours to reduce their full-time staff, 24 percent will cut hiring. Full-time employees who work 30 hours a week or more will be replaced by part-timers, according to 23 percent of owners surveyed. Such findings reflect results of a separate May survey by Gallup In that survey, most (52 percent) said that the ACA will reduce the quality of healthcare that they and their employees will receive. Only a small percentage of business owners-17 percent-indicated that they added employees over the last two years, according to the outlook findings. Plans for new hires are also largely on hold, with only one in five small business owners indicating that they will add more staff in the next two years. The health care law has also prompted outsourcing among manufacturing owners, according to a recent Empire State Manufacturing Survey While the health care law ranks as top challenge for employers, it ranks closely other key concerns, such as over-regulation (44 percent), economic uncertainty (44 percent) and America's growing debt and deficit (40 percent). By contrast, 11 percent of respondents indicated that a lack of qualified or educated employees is a top concern. How has the health care law impacted your business? Share your story with us by commenting below.