President Barack Obama has signed into law the Hiring Incentives to Restore Employment (HIRE) Act. The $18 billion bill is intended to encourage job creation by offering employers tax credits and a break on Social Security taxes if they hire workers who have been unemployed for at least 60 days.
Will this help at all? The outlook is pessimistic so far. From The Washington Post:
Some critics have questioned whether the legislation is big enough to make a dent in the nation’s persistent unemployment problem, arguing that the new payroll tax break is unlikely to spur much new hiring that wouldn’t have occurred otherwise.
Tim Gould of HRMorning.com writes:
Experts say the hardest-hit organizations, still suffering depressed revenues from the economic slowdown, probably wonâ€™t find the tax incentives enough to add substantial numbers of employees. Companies on the cusp of returning to solid profitability might find the tax savings the push they need to dive into the labor pool.
Overall, the administration estimates HIRE will create 250,000 new jobs.
That’s seconded by blogger Crazy Nut Job, who adds to an analysis of this week’s unemployment numbers: “If the decision to hire someone would increase profit under this bill, it would increase profit without the tax credit.”
But on the upside, CNJ adds, “The bill also allows another $20 billion for highway projects. As long as there are potholes to fill, this money will juice the jobs numbers.”
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