After job creation slowed sharply in June and July, analysts began looking
for reasons to explain why. The New York Times reports that a major reason for
the slowdown is soaring healthcare costs.
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FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with
customized information for your industry, location, and job.
Get Your Report Now!In recent years, employers have seen double-digit increases in healthcare costs,
and those costs are now affecting employer's hiring decisions, according to
the newspaper.
"Health care is a major reason why employment growth has been so sluggish,"
Sung Won Sohn, the chief economist at Wells Fargo, tells the newspaper.
The newspaper notes that the economy has about 1 million fewer jobs than it
did when President Bush took office, even though other areas of the economy
have shown significant improvement during the same period.
Some business owners say there's been a change in what factors they look at
when making decisions about adding employees.
"Before, we hired based on workload," says Steve Hayes, the owner
of Custom Electronics in Falmouth, Maine. "Now it's a question of affordability."
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