l****z
发帖数: 29846 | 1 By IANTHE JEANNE DUGAN
A new federal program that lets states give companies financial incentives
for hiring jobless people hasn't gained traction, illustrating the
complications of government attempts to tackle unemployment.
States, many of which are struggling to pay unemployment benefits, already
have been experimenting with self-funded programs that give companies
incentives to hire those out of work. New Hampshire and Georgia, for example
, allow companies to try out people who are collecting jobless benefits
before hiring them.
The efforts to stoke hiring come as some 12 million people remain unemployed
, including five million who have been looking for jobs for more than 27
weeks. The situation has strained states' unemployment-insurance trust funds
, built with corporate payroll taxes and used strictly to pay jobless
benefits.
Under the federal law, states were invited to submit ideas for "re-
employment demonstration projects"—initiatives that motivate companies to
hire people who are collecting unemployment checks. The government plans to
initially pick 10 winners and reward those states with waivers to federal
unemployment-insurance and labor allows, allowing them for the first time to
fund programs out of their own unemployment-insurance trust funds.
But seven months after the federal law was passed—with bipartisan support
as part of the tax relief act—many states say they won't apply because they
don't have the funding to set up and comply. This situation has surprised
some original sponsors and frustrated some employers.
Frank Vaccaro of Diamond Staffing Services Inc. recently hired a worker in
New Hampshire through a state program. It allows candidates to work for up
to six weeks, 24 hours per week, at no cost to the company.
"We have a small staff, so we couldn't afford to try out a worker without
this program," he says. "We do work all around New England and if other
states had similar programs, we would do more hiring."
New Hampshire, which funds its program out of its own coffers, would seem an
ideal candidate to use the federal initiative. But since states can't use
the money to set up a program or administer it, and participation requires
extensive tracking, evaluation and reporting, a number of states say they
can't afford to join.
George Copadis, commissioner of New Hampshire Employment Security, said his
state likely won't apply because it would require hiring another person to
administer. Some 270 people have been put to work through New Hampshire's
program in two years, or 52% of those who applied.
Among them was Kathy Fowler, who inspects and touches up parts at Agility
Manufacturing Inc., a circuit-board maker. "I was out of work for nearly two
years and was ready to give up," the 54-year-old says.
Mike McGreevy, Agility's president, says he wouldn't have made the hire
without the program. "It was try before you buy," he says. "It has worked
out great."
New Hampshire's low unemployment rate, at 5.5%, has made it difficult for
others to hire. At Jarvis Cutting Tools Inc. in Rochester, N.H., Scott Graff
says he reached over the border to Maine for workers, making them
ineligible for New Hampshire's program.
Laura Boyett, commissioner of the Maine Department of Labor, says the state
considered a similar program, but "we were just not positioned funding-wise
to attempt at this time."
Texas sent a letter to the Labor Department asking that it be considered for
the program. It was looking for funding for an existing program that pays
companies as much as $2,000 for each unemployment claimant hired. Since 2010
, the initiative has helped place 30,000 people in jobs, and it won a
federal Labor Department "innovation award."
A U.S. Labor Department official says Texas approached the government before
the program was set up to accept applications—and that it would review an
application if it came back. States have until October 2014 to apply for the
waiver and then can use it for a year, ending by December 2015.
But Larry Temple, executive director of the Texas Workforce Commission, says
the state isn't planning to pursue the program, because the cost has since
become clear—hundreds of thousands of dollars, he estimates, compared with
$100-per-job seeker it spends now. "We're going to have to shut down our
program," Mr. Temple says. "We have run out of money."
Some Republican lawmakers who helped pass the legislation say they didn't
anticipate the red tape. Congressman Rick Berg (R., N.D.), one of the
original sponsors, says he now is teeing up legislation and working with the
Ways and Means Committee and state unemployment commissioners to "reinstate
the original intent." | l****z
发帖数: 29846 | 2 Tackling unemployment is not complicated. It requires the creation of a
business friendly envirnment, through positive policy changes. Attempting to
destroy carbon energy and banking, 2 of our most dominant US sectors,
coupled with increases in regulations and business taxes, is the perfect
formula for higher unemployment! | l****z
发帖数: 29846 | 3 So many of the Federal programs come with so many strings attached they are
actually become dis-incentives. If the Federal government wants to spur
hiring of anyone and everyone, they first do not need to increase taxes on
small businesses who report earnings on Schedules E and C!!!!
Obama will kill jobs if he increases taxes on the so called rich or high
earners who have pass through small business income.
Secondly, fix the tax system to make it overall flatter and simpler.
Finally, quit all the short term gimmicks for one fiscal year or two and
leave the playing field the same for at least 10 years! A small business
cannot adjust so quickly and trying to understand all the changes is a huge
opportuinity costs to growing the business and creating JOBS!!
Basically, Washington...stay out of the way! |
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