A new article in the August 23, 2004 issue of the weekly web magazine News Informant, High Cost of Healthcare Hurts Job Growth and Economy", outlines the impact of the high cost of healthcare in slowing job growth and economic recovery. Healthcare costs for employers that provide healthcare insurance for their employees have risen dramatically in recent years. The cost of healthcare per employee has now grown to $3,000 per year, an 8.1% increase over the past year, making employers reluctant to add new jobs. Many employers say that they are loath to hire additional employees because of these costs, even when demand increases.
Chicago, IL (PRWEB) August 25, 2004 -- According to Laura D. Tyson, an economic adviser to former President Bill Clinton, industries with more health care benefits, such as the automobile industry, have suffered the biggest losses in jobs. At the same time, those in industries that offer fewer benefits, such as the food service industry, have shown the largest growth in employment.
News Informant previously reported, in Signs Of Slowing Economic Recovery Amid Sluggish Middle Income Growth," the disappointing June and July employment figures and their impact on a slower recovery. According to News Informant editor Bernard Perlstein, Economists differ greatly on how long the current U.S. job stagnation will last. However, they typically agree on most of the causes. Everyone has focused so far on oil as an overriding indirect factor. But now some are beginning to look at the cost of healthcare as a more direct contributor to the sluggishness in job growth"
Clearly the U.S. economy has many difficulties, including a beckoning budget deficit, lower demand for exports and modest growth in domestic consumer spending. Increasing energy costs is another issue, both for producers and consumers. And the stock market has not been strong recently, as fear sets in yet again that U.S. equities may be overpriced.
The middle class has suffered the most through the recession and not been the beneficiary of the recovery as yet. In addition to lost jobs, real wages have been falling for the past number of years. Even though wages have increased by 2.6% over the past year, according to Labor Department statistics, this is still less than the rise in the consumer price index (CPI). In this environment, the total amount of money in the hands of middle class consumers is growing little, and is, perhaps, negative in real terms. Sadly, this means both that companies have no reason to hire more workers and to compete with other companies for wages when they do hire. As a result, neither employment nor average wage grows.
Whether or not the current administration is to blame – or even is blamed – for the current economic woes, the news that job growth is now sluggish is bad news for a president running for reelection later this year. This is especially true when the number of U.S. jobs is more than one million fewer than when President George W. Bush took office, making him the first U.S. chief executive since Herbert Hoover to experience an overall job loss while in one term.
The News Informant article in its entirety, and its sources, can be found on the web at: http://www.newsinformant.com/articles/2004_08_23/000753.php. A free registration is required to view the article.
To request a free copy of the article, or to obtain reprint rights or other use of the article, please contact Media@newsinformant.com.
About News Informant Inc.: News Informant Inc. publishes News Informant, a weekly U.S.-based web news magazine focusing on news analysis of important domestic and global issues that are not sufficiently covered by the U.S. media. The magazine uses primarily respected worldwide online source material to render original information and perspectives. The periodical follows the slogan, Its Not Just the News – Its Whats Behind the News."
For additional information on News Informant and media inquiries, please contact:
Tonya D. Hottmann,
News Informant Inc.
312-644-9868
http://www.newsinformant.com
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