Wednesday, February 2, 2011

StartUp America with Austin Goolsbee

Cutting Hours Instead of Jobs

PROVIDENCE, R.I.—Facing potential layoffs, Pilgrim Screw Corp. in September directed 11 of its 65 employees to cut their workweeks by one day. The move meant nobody at the small manufacturer lost jobs, while those with fewer hours now get a check from Rhode Island representing one-fifth of what they would make under full-fledged unemployment insurance. It's a pay cut for those workers, to be sure, but they prefer that to the alternative: joblessness.

Rhode Island is among the 22 states and the District of Columbia that offer some form of "work sharing," programs in which employees work fewer hours and receive partial unemployment insurance to lessen the blow to their incomes.

Tech. Companies Join "Startup America Partnership"

Three of the nation's biggest technology companies are committing hundreds of millions of dollars to an initiative backed by President Barack Obama to encourage job creation and economic growth by supporting small businesses.

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