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[*JB*]

DUKE UNIVERSITY NEWS
Duke University Office of News & Communications
http://www.dukenews.duke.edu

CFO SURVEY: AFFORDABLE CARE ACT COULD CURTAIL HIRING

EMPLOYMENT EFFECTS OF THE AFFORDABLE CARE ACT

Nearly half of U.S. companies are reluctant to hire full-time employees because of the ACA. One in five firms indicates they are likely to hire fewer
employees, and another one in 10 may lay off current employees in response to the law. Other firms will shift toward part-time workers. More than
40 percent of CFOs say their companies will consider switching some jobs to less than 30 hours per week or targeting part-time workers for future employment.


“The inadequacies of the ACA website have grabbed a lot of attention, even though many of those issues have been or
can be fixed,” said John Graham, Duke Fuqua School of Business finance professor and director of the survey.

“Our survey points to a more detrimental and potentially long-lasting problem. An unintended consequence of the
Affordable Care Act will be a reduction in full-time employment growth in the United States.
Companies plan to increase full-time employment by 1.4 percent in 2014, a rate of growth
which is down from last quarter and unlikely to put a dent in the unemployment rate.

CFOs indicate that full-time employment growth would be stronger in the absence of the ACA.”
“I doubt the advocates of this legislation would have foretold the negative impact on
employment,” said Campbell R. Harvey, a professor of finance at Fuqua and a founding
director of the survey. “The impact on the real economy is startling. Nearly one-third of
firms may either terminate employees or hire fewer people in the future as a direct result of
ACA.”

In addition, 44 percent of companies say they will consider reducing health benefits to
current employees in response to the ACA.

http://www.cfosurvey...ressRelease.pdf