Pennsylvania’s unemployment rate has risen to 9.0%; the highest since July 1984, with well over half of a million Pennsylvanians currently unemployed.  Employers are still facing a difficult economic climate, and further job losses are not out of the question.  Especially considering the current economic and political climate, employers are hesitant to begin hiring again due to the lack of certainty in direction.  Compounded by increased minimum wage requirements, teen unemployment is near an all-time high at 26.2%, including a nearly 50% unemployment rate for black teenagers.   

The fastest and most effective way to turn around PA’s economy and the problems with PA’s unemployment system is to return Pennsylvanians to work.  The House Republican caucus has developed a legislative package designed to empower individuals to find employment and return to work.  House Republicans remain committed to providing certainty to Pennsylvania employers so that they can feel comfortable with hiring again. This includes opposing new taxes and regulations on employers during any economic climate, including the recession that is currently plaguing this Commonwealth and the Nation. 

The Keystone Jobs Package 

The Shared Work Program: Empowers employers to avoid layoffs by reducing hours and wages for a specific unit of employees while allowing those employees to collect a pro rata portion of unemployment compensation benefits. This program is designed to slow or prevent layoffs. 

The Keystone Works Program – HB 2470, Rep. Saylor & HB 2471, Rep. Sonney: Removes barriers to employment by matching unemployed persons and cash assistance recipients with businesses who are seeking to hire on a conditional basis at no cost to employers unless the employer chooses to hire the claimant on a permanent basis. This program is designed to help both short-term and long-term unemployed persons. 

Unemployment Training/Education Option – HB 2472, Rep. Farry & Rep. Gingrich: would allow unemployment claimants to enter into short-term career training/re-training while still collecting unemployment benefits. 

Reauthorization and restructuring of the Employment Incentive Payments – HB 2473, Rep. Peifer: Provides a credit to employers who hire public assistance recipients. The program is being restructured to mirror other tax credits as far as applicability and pass-through provision, and to also apply to unemployment recipients. 

Revitalize and reprioritize the Self-Employment Assistance Program: a program that provides a unique opportunity for unemployed individuals to enter into self-employment through entrepreneurial training and counseling while continuing to receive unemployment compensation. 

The Teen Employment Incentive Tax Credit – HB 2474, Rep. Denlinger: Capped at $15 million, this provides a tax credit for 50% of costs incurred for each job provided by a business to a teenager.