States Could Save $1.7 Billion Per Year with Federal Financing of Work Sharing

About

Explores work-sharing provisions included in the Middle Class Relief and Job Creation Act of 2012 that help states reduce their unemployment rates and also save unemployment insurance costs.

"[T]he work-sharing provisions [included in the Middle Class Relief and Job Creation Act of 2012] could make an important and positive difference in the lives of millions of workers, employers, their families and communities. These provisions mean states can also improve their finances by promoting work-sharing. However, states will need to work to take full advantage of the new law in order to reap these benefits" (p.3). (Abstractor: Author)

Major Findings and Recommendations

"If states were to take advantage of the federal financing for work sharing in the new law, it would be reasonable to expect that they could reach approximately the same level of participation as Rhode Island did [which had the highest national rate of participation in work-sharing programs] in 2009. At that level, they could save about 5 percent of their Unemployment Insurance (UI) costs in states that have existing work-sharing programs, and about 2.5 percent in the states that do not.... this adds up to $1.7 billion dollars per year nationwide" (p.2). (Abstractor: Author and Website Staff)

Materials

http://www.cepr.net/documents/publications/worksharing-2012-05.pdf

Comments

Content Details

Methodology:

Cost Analyses

Topics:

Job Sharing

Target Populations:

Employers - All All Individuals

Programs:

Unemployment Insurance (UI)

Geographic Locations:

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Massachusetts Maryland Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Jersey New Hampshire New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

Industry Sectors:

Cross-Industry

Last Updated:
Created:
Resource Publication Date: 2012
Author(s): Woo, Nicole; Baker, Dean
Organizational Author(s): Center for Economic and Policy Research
Funding Source: Funding source not identified
Resource Availability: Publicly available
Posted by: Melissa Mack
Posted in: Workforce System Strategies