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NFIB Research Foundation: Health-insurance tax to cost 152,000 to 286,000 private-sector jobs
The National Federation of Independent Business (NFIB) Research Foundation recently released an updated study showing what it says are the “significant number of jobs” that will be lost by the national health-insurance tax (HIT) that is part of the Affordable Care Act (ACA). Using independent cost estimates, the Research Foundation’s BSIM (business-size impact module) predicts the rise in cost […]
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The National Federation of Independent Business (NFIB) Research Foundation recently released an updated study showing what it says are the “significant number of jobs” that will be lost by the national health-insurance tax (HIT) that is part of the Affordable Care Act (ACA).
Using independent cost estimates, the Research Foundation’s BSIM (business-size impact module) predicts the rise in cost of employer-sponsored insurance stemming from the HIT will result in a reduction in private-sector employment of 152,000 to 286,000 jobs by 2023, with 57 percent of the job losses occurring at small businesses.
This will amount to a reduction of U.S. real output (sales) by between $20 billion and $33 billion during the same period, the NFIB Research Foundation estimates.
A similar study released in 2012 predicted a loss of 146,000 to 262,000 jobs and $19 billion to $35 billion in sales by 2022.
“The HIT represents a new tax on small business that raises insurance costs for an already struggling Main Street and is contrary to the goals of health care reform,” Amanda Austin, NFIB director of federal public policy, said in a news release.. “Singling out job creators for tax increases makes no sense for our economy, is short-sighted and wrong for our nation’s growth. NFIB will continue to highlight the very real and negative effects the HIT will have on small businesses and everyday Americans as we work to pass bipartisan legislation to repeal the HIT.”
The BSIM is a multi-region forecasting model that analyzes the impact of policy “shocks” on the economy and is unique in ability among models to forecast the economic impact of such policy on U.S. businesses differentiated by size of the firm, the NFIB Research Foundation contends. For this purpose, the BSIM adhered to the Small Business Administration definition of “small business” as a firm with fewer than 500 employees.
Report highlights
– Nationally: 152,000 to 286,000 jobs lost and $20 billion to $33 billion in lost sales
– California: 23,000 jobs gone by 2023, costing $4 billion in sales for California small business
– Colorado: 4,100 jobs eliminated by 2023; $870 million in sales lost for Colorado small business
– Florida: 9,700 jobs lost by 2023, costing $1.2 billion in sales for Florida small business
– Illinois: 5,500 jobs gone by 2023; $1 billion in sales lost for Illinois small business
– Massachusetts: 1,500 jobs eliminated by 2023, costing $450 million in sales for Massachusetts small business
– New Jersey: 2,000 jobs lost by 2023; $380 million in sales lost for New Jersey small business
– New York: 2,800 jobs gone by 2023, costing $630 million in sales for New York small business
– Ohio: 5,900 jobs eliminated by 2023; $1 billion is sales lost for Ohio small business
– Pennsylvania: 4,700 jobs gone by 2023; $790 million in sales lost for Pennsylvania small business
– Texas: 14,500 jobs lost by 2023, costing $2.5 billion in sales for Texas small business
– West Virginia: 2,200 jobs lost by 2023; $230 million in sales lost for West Virginia small business
The NFIB Research Foundation says it is a Washington, D.C.–based 501(c)(3) education and charitable organization affiliated with the NFIB, founded to promote a greater understanding of small businesses and the conditions that impact them. The Foundation says it produces and disseminates various surveys and studies on small business, focusing on areas related to public policy’s effects.
CNY jobless rates fall in last year, job growth mixed
Unemployment rates in the Syracuse, Binghamton, Utica–Rome, and Ithaca metro areas declined in April, compared to the same month in 2013. That’s according to the latest New York State Department of Labor data released May 20. The jobless rate in the Syracuse area was 5.8 percent in April, down from the 7.5 percent rate in
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Unemployment rates in the Syracuse, Binghamton, Utica–Rome, and Ithaca metro areas declined in April, compared to the same month in 2013.
That’s according to the latest New York State Department of Labor data released May 20.
The jobless rate in the Syracuse area was 5.8 percent in April, down from the 7.5 percent rate in April 2013. The unemployment rate in the Utica–Rome region was 6.1 percent in April, down from 8.1 percent in the year-ago period.
The unemployment rate in the Binghamton region was 6.1 percent in April, an improvement from the 7.7 percent posted a year ago, according to figures from the state Labor Department.
The jobless rate in the Ithaca area came in at 3.5 percent in April, down from 4.6 percent in April 2013.
The data isn’t seasonally adjusted, meaning the figures don’t reflect seasonal influences such as holiday hires, the state Labor Department said.
The New York counties among those with the highest unemployment rates in April include Hamilton at 8.8, Lewis at 8.7, and Jefferson at 8.2 percent. Bronx County had the state’s highest jobless rate in April at 10.3 percent.
At 3.5 percent, Tompkins County posted the lowest unemployment rate in New York during April, the state Labor Department said.
The unemployment rates are calculated following procedures prescribed by the U.S. Bureau of Labor Statistics.
CNY regional data
The Syracuse metro area lost 900 total jobs between April 2013 and this past April, a decrease of 0.3 percent, according to the state data the department released on May 15.
The region lost 1,000 private-sector jobs in the same period, also a decline of 0.4 percent.
The Ithaca region lost 600 total jobs year-over-year, a decrease of 0.8 percent. Ithaca’s private sector lost 600 jobs between April 2013 and April 2014, a decline of 1.6 percent.
In the Utica–Rome metro area, the state figures indicate a year-over-year net gain of 500 total jobs, or 0.4 percent. The region also added 600 private-sector jobs, a 0.6 percent increase, in the same 12-month period.
The Binghamton area saw a year-over-year net decline of 600 total jobs, or a 0.6 percent decrease. In the same time period, the region’s private-sector employers lost 300 jobs between April 2013 and this past April, a decline of 0.4 percent.
The state’s private-sector job count is based on a payroll survey of 18,000 New York employers that the U.S. Department of Labor conducts, the state Labor Department said.
The federal government calculates New York’s unemployment rate partly based upon the results of a monthly telephone survey of 3,100 state households that the U.S. Bureau of Labor Statistics conducts.
Statewide unemployment
New York’s unemployment rate fell 0.2 percent to 6.7 percent in April, its lowest level since December 2008.
That’s according to preliminary figures the department released May 15.
The state’s economy added 1,600 total jobs between March and April and the state’s private-sector job count rose by 2,500 month-to-month.
New York’s private-sector job count held steady at 7,543,000 in April, a figure that represents “an all-time high,” the state Labor Department said.
April represented New York’s 17th consecutive monthly gain in private-sector jobs, the longest since at least 1990, as far back as records go, the department said.
The preliminary April unemployment rate of 6.7 percent for New York is down from the 7.8 percent rate in April 2013.
In areas of the state outside of New York City, which includes all of Upstate and Long Island, the unemployment rate fell to 5.8 percent in April, down from 7.1 percent in April 2013, according to the department’s data.
Educational and health services added the most jobs statewide, more than 32,000, over the last year. The trade, transportation, and utilities sector was second, adding more than 22,000 jobs.
Comments from Robert Half International
The job growth in the trade, transportation, and utilities sector “is really starting to take off,” says Robert Nealon, regional vice president with Robert Half International, Inc. (RHI) who oversees RHI’s four upstate New York offices, including the branch in Syracuse.
“Almost one-third of that growth in the trade and transportation and utility industry has been in the past six months,” Nealon says.
Nealon is based in Massachusetts and spoke with the Business Journal News Network from Buffalo on May 20.
Robert Half International (NYSE:RHI) is a Menlo Park, Calif.–based firm that specializes in the placement of skilled administrative professionals. It operates a Syracuse location at 500 Plum St.
Nealon believes firms are looking for talent with accounting skills, so staff and senior-level accountants are “very in demand right now.”
Other firms are focusing on their Internet presence, so web developers are also in “high demand” as well, he says.
“Expanding their footprint on the web and making the functionality for their customer base a lot easier,” Nealon adds.
Positions in the professional and business-services sector were third on the list, adding nearly 20,000 jobs.
The leisure and hospitality sector followed, adding 15,000 jobs.
The manufacturing sector led the way in job losses in April, declining by nearly 6,000 in the last year, according to the state Labor Department.
Contact Reinhardt at ereinhardt@cnybj.com

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