The Norman Transcript
Norman — Persistent unemployment weakens the nation’s economic recovery. Jobless claims — a good indicator of employment — fell 5,000 to a seasonally adjusted 457,000, the Labor Department has reported.
That dip and a jobs bill signed into law Thursday are good news on the employment front. Companies that hire the unemployed get a break on their payroll taxes.
The bill signed by President Barack Obama contains a mix of tax breaks and spending designed to encourage the private sector to begin hiring workers again.
Employers who hire anyone who has been out of work for at least two months wouldn’t be required to pay the 6.2 percent Social Security payroll tax on that employee through December. Social Security would be made whole by the federal government.
In addition, employers who create a job and hire someone for at least a year would get an additional $1,000 credit per worker.
Estimates are that the incentives could generate 250,000 jobs by year’s end. That’s a minor dent in the more than 8 million jobs eliminated since the recession began in December of 2007.
Some analysts speculate the legislation would only help those companies that planned to hire anyway. But it’s a small step that could help stimulate the nation’s economy at a time when even incremental steps produce ripples.
