U.S. businesses are hiring at a robust rate. The only problem is that three out of four of the nearly 1 million hires this year are part-time and many of the jobs are low-paid.
That's the attention-grabber part of the article. This is the paragraph that should worry people:
This can all become a less-than-virtuous cycle as new employees, who are mainly in lower wage businesses such as retail and food services, do not have the disposable income to drive demand for goods and services.
When people only have enough money to pay the bills, they don't have money to buy durable goods. That's why the economy is struggling. President Obama says that the best way to build the economy is "from the middle class out." It's debatable whether that's true. What isn't debatable is that it's impossible to build a flourishing middle class when 75% of the new jobs being created are part-time jobs.
After the housing bubble burst, people called the ensuing economy the "Great Recession." Economists reminded people that the deepest recessions often had the most robust recoveries. Thanks to Rahm Emanuel's belief that people "shouldn't let a crisis go to waste" mentality, the Obama administration chose to pass universal health care.
Businesses have cited the PPACA as the main reason why we're stuck in the Great Stagnation for this long. The economy won't improve until the PPACA is fully repealed:
Executives at several staffing firms told Reuters that the law, which requires employers with 50 or more full-time workers to provide healthcare coverage or incur penalties, was a frequently cited factor in requests for part-time workers. A decision to delay the mandate until 2015 has not made much of a difference in hiring decisions, they added.
Delaying the mandate doesn't fix the problem. It just postpones the day of reckoning.
Some businesses are holding their headcount below 50 and others are cutting back the work week to under 30 hours to avoid providing health insurance for employees, according to the staffing and payroll executives.
That's typical during the Great Stagnation.