POLITICS

Some Employers Say They Aren't Hiring Because Of Obamacare: Fed Beige Book

03/06/2013 05:31 pm ET

A report released Wednesday by the Federal Reserve says some employers are blaming Obamacare for layoffs and slow job growth.

In the Fed's latest Beige Book -- a periodic look at the health of the economy, based on the Fed's interviews with company executives and other sources -- the Dallas and Richmond Feds reported that companies in their districts say they've curbed hiring or plan to lay off workers because of President Obama's health care reform law.

"Employers in several Districts cited the unknown effects of the Affordable Care Act as reasons for planned layoffs and reluctance to hire more staff," the Beige Book said.

The presidents of the Dallas and Richmond Feds, however, are outspoken conservatives. They both oppose the Federal Reserve's monetary stimulus measures and claim the Fed's intervention in the markets will backfire.

Several businesses, including Wendy's and Applebee's franchisees, have said that they are laying off workers, halting hiring or cutting workers' hours because of Obamacare. Starting in 2014, Obamacare will require all companies with at least 50 full-time workers to offer health insurance to employees working 30 hours or more per week.

(Hat tip: Business Insider.)

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