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By Matt Kibbe
The short-term deal will assure long-term overspending
Independent voices from the The Washington Times Communities
Topic - Sophia Koropeckyj
President Obama's health care reform is prompting employers to hire more part-time and temporary workers to escape paying benefits under a mandate that goes into effect next year, amplifying a trend toward transient employment that took hold during the recession, according to a growing number of economic indicators.
The U.S. unemployment rate slipped further to a three-year low of 8.2 percent last month as businesses kept churning out new jobs, the Labor Department reported Friday morning.
Job gains unexpectedly accelerated last month to 117,000, and the unemployment rate declined to 9.1 percent — news that eased recession worries in troubled financial markets.
The economy's sudden downshift in growth and employment in recent weeks has increased the urgency for President Obama and Congress to reach a debt-reduction deal at the same time it has made their task more difficult.
"The increased use of temp workers may lead to more permanent hiring, but there is also the possibility that employers are taking on more temp workers to keep payrolls under the threshold of 50 workers and thus to remain free from the requirements of the Affordable Care Act," said Sophia Koropeckyj, managing director at Moody's Analytics.
"The unusually warm winter likely shifted some hiring into the first two months of the year," said Sophia Koropeckyj, managing director of Moody's Analytics.