Uncategorized

Governor Christie Signs Work-Sharing Law

Governor Christie of New Jersey signed into law last week a work-sharing program which is a proven tool that keeps workers on the job even when economic growth is weak or nonexistent.  This will be the 24th program in the nation.

The program works by reducing workers hours and using unemployment insurance benefits to pay a portion of the wages that employees lose. The programs are voluntary for employers and administered through the unemployment insurance system.  A similar program in Germany kept that country’s unemployment rate below 7 percent despite a steeper economic decline there relative to the US experience.

Such an approach benefits both employers and workers. Employers are able to maintain a trained workforce that can quickly ramp up production when the economy turns around and do not incur the costs of retraining. Eighty percent of employers in a study of short-time compensation programs in the United States reported employees on short-time were either as productive as or more productive than non-short-time employees. Additionally, employees maintain their income and access to benefits such as health insurance and retirement plans. And because incomes are not significantly impacted, consumer demand remains relatively constant, thereby eventually supporting businesses to produce more goods and services. Estimates at the national level suggest that if employers of 60 million workers shortened their hours by 5 percent rather than instituted layoffs, 3 million jobs would be created.

As North Carolina looks for ways to address high unemployment, work sharing provides a promising model.

One Comment


  1. Tough Love

    January 19, 2012 at 11:00 am

    The comparison with Europe is flawed. In Europe, heath insurance is gov’t sponsored, not an employer cost. In the USA, the cost of employee healthcare is huge and a direct expense of the employer. Hence in the USA, fewer employees means much lower expenses, just from healthcare costs.

Check Also

Job announcements still fall short of 16,000 new jobs needed every month in N.C. to get back to pre-Recession levels

The North Carolina GOP released a press release ...

Top Stories from NCPW

  • News
  • Commentary

State Board of Elections & Ethics Enforcement refuses to disclose any details of probe into alle [...]

Senate favors form of merit selection for judges as alternative to House judicial redistricting bill [...]

North Carolinians hoping to find out who’s been funding Rep. Justin Burr’s crusade this legislative [...]

The SePro Corporation is receiving as much as $1.3 million in taxpayer money to chemically kill the [...]

Here is something you probably haven’t heard much lately, if at all, given the shocking news from Ch [...]

Lawmakers to return to Raleigh yet again; agenda may include dangerous “de-reg” proposal The North C [...]

The three federal judges could have just come right out and said it: The Republicans who rule the N. [...]

3---number of states that adopted new state Earned Income Tax Credits in 2017---Montana, Hawaii, and [...]

Featured | Special Projects

NC Budget 2017
The maze of the NC Budget is complex. Follow the stories to follow the money.
Read more


NC Redistricting 2017
New map, new districts, new lawmakers. Here’s what you need to know about gerrymandering in NC.
Read more