Over the next decade, 2 million workers could decide to leave the workforce because of Obamacare, according to a new report.
According to the report from the Congressional Budget Office, the workforce is projected to shrink by 2025 by just under 1 percent—the equivalent of 2 million full-time workers—because of the health care law and its incentives for workers.
“Some people would choose to work fewer hours; others would leave the labor force entirely or remain unemployed for longer than they otherwise would,” the CBO said in its report.
Under the law, consumers do not have to rely on employers for insurance and can purchase coverage on the federal and state-run exchanges. Additionally, Obamacare implemented subsidies available for consumers who qualify based on their income, which the CBO said raises the “effective tax rate on earnings” on those who no longer qualify for subsidies as incomes rise. These two factors suggest some workers may opt to retire or work part time rather than full-time.