"...As for the drop in the headline unemployment rate last month, to 7.7% from 7.9%, Hunt says that just 58.6% of the working-age population was employed in February—versus 59.6% at the end of the recession in June 2009. That measure eliminates all the distortions from the declining participation in the labor force. But it still counts the number of folks with part-time or temporary jobs.
The latter appears to reflect the impact of the Affordable Care Act (aka Obamacare). While the provisions don't take full effect until next Jan. 1, employers must establish a base of full-time workers to whom they have to provide health benefits or pay a penalty by June 30, Hunt says. That provides an incentive to replace full-time employees with multiple part-timers, which would boost reported payrolls, he explains..."
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