February 20, 2011

A little government help for job growth

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It's undoubtedly tough out there finding a job these days. It's equally tough to be a public official in a state or local government trying to allocate a dwindling amount of dollars for crucial economic development programs.

According to a recent report from the nonprofit Center on Budget and Policy Priorities, 46 states (including Washington state) are facing serious budget shortfalls that have forced governments to slash programs that assist low-income residents, which has helped keep the unemployment rates high. Our state has already gone through a painful series of cuts to reduce budget shortfalls and will face another $5 billion deficit for the 2011-13 biennium.

It was of some comfort, then, to hear a bit of good news about modest plans on the local and state level that are trying to create a better environment for job creation in the region.

On Wednesday of last week, Mayor Mike McGinn announced the investment of $1 million in the economic development of 18 Seattle neighborhoods as part of his Seattle Jobs Plan announced last August. Under the plan, the Office of Economic Development will use the money to attract and retain businesses in core business districts, such as Capitol Hill, the Central District, the International District, the Rainier Valley and Pioneer Square.

At the announcement, Dan Greenshields, president of ING ShareBuilder, said he had moved his business to Pioneer Square to be near a vibrant urban environment. "I'm excited that this investment from the city will allow Pioneer Square to increase its economic development and retail recruitment to improve the diversity of our retail mix," he said in a Mayor's Office release.

On the state level, the Employment Security Department (ESD) also noted that its Shared-Work Program helped prevent more than 32,000 jobs from being cut in 2010. The plan allows some employers to reduce the hours of their full-time employees and make up the lost wages with partial unemployment benefits for up to 52 weeks, so that most affected workers avoid a net pay cut. The program is designed to be flexible, so employers can add or reduce work hours based on their workload needs.

A record 3,700 businesses with 51,000 employees were approved to participate in the program last year, ESD officials said. Participating workers were paid $35 million in shared-work benefits from ESD in 2010. Had the same number of workers been laid off and collected the state average of 20 weeks of unemployment benefits, ESD would have had to pay out an estimated $69 million more in benefits. So, the program helped not only workers but the state as well.

"The Shared-Work Program has helped us retain our valued workers during these challenging economic times," says Richard Gobble, human resource specialist with Spokane-based Huntwood Industries, in an ESD release. "Our employees have benefited greatly."

If you or your employer is facing a similar situation caused by the recession, click here to learn more about the Shared-Work Program and find out if you are eligible.

Randy Woods writes about job-search tools, networking techniques and other tips to help you land your dream job.

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economy, government, unemployment

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Pinochet | February 25, 2011 4:35 AM | Reply

Oh, how quaint!

"The plan allows some employers to reduce the hours of their full-time employees and make up the lost wages with partial unemployment benefits for up to 52 weeks, so that most affected workers avoid a net pay cut."

Threating your employees with layoff in order to force them unto a government sponsored salary equivalent.

Now that's what I call job growth!

What a country!

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