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Recent addition to TWC employment programs may stimulate Texas economy, boost hires

Jamie M. Barnes

(Austin, Texas) – A recent addition to the Texas Workforce Commission employment programs, Texas Back to Work, is expected to boost employment rates and stimulate the Texas economy. TBTW is a $15 million employment subsidy program aimed at employing 15,000 – 30,000 qualified job seekers, and at reducing the expense of Unemployment Insurance payments. Lt. Governor David Dewhurst, who sought legislative funding for the program, is aggressively promoting it to all 28 of the Texas Workforce Investment Boards.

Designed to assist private-sector for-profit and non-profit employers, TBTW grants a $2,000 employment subsidy for each qualified job seeker employed at least four months. The program grants $800 for the first month, then $600, $400, and finally $200 in the fourth month of employment, allowing for the possibility of termination prior to the four month program cut-off. The Lt. Governor and TWC plan to request an additional $50 million in program funding (pending federal approval) for 2011 to keep up the program’s momentum and grow the economy. Mr. Dewhurst notes that as the number of newly created jobs in Texas rises, so does the number of jobless moving here from other states, keeping the Texas unemployment rate hovering around 8.5%.

Offered on a first-come, first-serve basis, many businesses are signing up for the TBTW program. Even with the influx of out-of-state job seekers, TWC Executive Director Larry Temple believes TBTW will have a positive impact on the unemployment rate. Arbor’s Texas One-Stops already are witnessing employers taking an interest in the program, and many businesses have signed worksite agreements and begun hiring qualified applicants. In an effort to increase awareness, some projects are using direct mail, email, phone calls, and personal visits to engage employers and Unemployment Insurance recipients in TBTW. One-Stops are also screening for eligible UI claimants during re-employment sessions and providing them with additional information. These UI claimants may help extend the program’s reach by telling potential employers about TBTW incentives.

Don Ballard, Arbor’s Texas Regional Vice President, feels the program will be successful because “it keeps state and local talent in place, reduces displacement, and promotes economic security for the region.” Mr. Ballard also stated that, “Employers in certain sectors are extremely interested in stacking the TBTW subsidy with tax breaks recently passed by Congress; these measures taken together provide a substantial incentive to employers.” Project Directors across the state are enthusiastic about the subsidy: Tim Foley (Brazos Valley) notes that larger businesses in his area are signing up for the program; Michael Gonzalez (South Texas) is “optimistic that [TBTW] will stimulate employer interest in hiring;” and Courtney Arbour (Capital Area) is beginning to see some hires generated by the program and thinks “it will have a very positive effect on the local economy.” More positive, measurable results from the TBTW program are expected in the coming months.

 

 

 

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