NEW YORK (Reuters) — Corporate executives in the United States are more worried about providing health-care benefits to employees than about issues like wages, taxes or attracting qualified workers, according to a survey by staffing company, Adecco SA.
In Adecco's poll of senior executives, 55 per cent named health-care benefits as their biggest current business challenge, and about one-third said they are holding back hiring because of health-care reforms introduced by U.S. President Barack Obama.
Obama's 2010 health-care law, upheld this year by the U.S. Supreme Court, is expected to raise insurance costs for employers because it calls for wider coverage of more people, including those with pre-existing medical conditions.
"A lot of firms just don't know how the (law) is going to impact them financially," said senior vice-president Janette Marx. "If it does increase costs, it causes executives to question whether they can hire more."
Obama is not doing enough to help businesses grow, executives said, and they favoured Republican challenger Mitt Romney in the Nov. 6 Presidential election by nearly three to one.
Fewer than one-half of those polled expect their businesses to grow profits in the next year. Those who run small businesses are more optimistic than those running large ones.
More respondents also reported lower profits over the past year than said their companies grew earnings. They cited government regulation, consumer confidence and commodity prices as the biggest headwinds to growth.
Health care's prominence as an issue has risen since the 2008-2009 recession, Adecco found: In 2007, only 35 per cent called health care their top worry.
U.S. hiring could pick up after the election, regardless of who wins, because employers will have one less area of uncertainty to keep them on the sidelines. Adecco is seeing pent-up demand for workers among clients in manufacturing, retail, e-commerce and in the car industry.
"Companies have been waiting until after the election to make hires they need to make," Marx said.
Adecco's poll was conducted in early October and included responses from 501 CEOs, owners, managing directors and other senior executives.