Will Work Sharing Bill Save Jobs?

On Monday, the Pennsylvania House unanimously passed HB 2160, the “work-share” bill.

The legislation is designed to encourage employers to reduce employees hours instead of laying off workers. Employees working reduced hours would then been eligible for state employment benefits to make up the difference in reduced salary (ostensibly paid for only by participating employers).

The reality is the work-share program doesn’t improve the economy, it masks it’s real condition. Unemployment numbers might appear smaller, because a greater number of people get their salaries subsidized. If employers opt to reduce employee’s hours instead of laying workers off it provides little net benefit to the economy – indeed it makes little difference to either the employer or the overall economy if they lay off some workers or reduce hours for all.

The work-share bill is part of the PA Democrats “jobs package,” you can find more out about this program and work-sharing here.