New Report Suggests Job Creation Strategies for North Carolina
A job creation grant program for small businesses and a layoff prevention program are necessary to help North Carolina's working families
RALEIGH (May 26, 2010) -- A report released Wednesday by the NC Justice Center's Budget & Tax Center will suggest job creation strategies to take the state into the future.
Authored by BTC analyst Andrea Forter Sirota, the report backs such measures as a Small Business Job Creation Grant and a Short-Time Compensation Program.
The Small Business Job Creation Grant would provide a subsidy to small businesses and non-profits to cover part of the wages and benefits associated with hiring an unemployed worker for a new post.
At an estimated cost of little more than $3,000, it is possible that such a program could create nearly 5,000 permanent jobs and 10,000 temporary ones.
A Short-Time Compensation Program works by encouraging employers to reduce hours rather than layoff workers by using unemployment insurance funds to pay a portion of the wages that an employee would have lost.
Employers are able to retain trained employees and be ready to quickly ramp up when the economy turns around while employees maintain their earnings and thus continue to engage in consumer spending to drive recovery.