Help for Employers: Wage Subsidy Program

A wage subsidy program available to area businesses who want to hire new employees has been a resounding success, according to Michelle Ufford, Executive Director of the NE Minnesota Office of Job Training in Virginia.

Ufford said the program has resulted in 101 jobs since September 2009 with another 50 pending (companies that have been accepted into the program but are in the process of hiring). This represents 58 businesses across the region, from manufacturing to healthcare and finance to retail - in an area of the highest unemployment in the state.

Seventy-four percent of businesses participating in the program have 10 FTEs or less, but the really interesting thing is their tenure: the average number of years in business is 20, with 37% in business 15 or more years. “This means that this program is helping the very companies that have been supporting our communities for years and even decades,” she said.

“I’d say the program is a resounding success - with more applications coming in every day,” said Ufford. “I’m hopeful that with additional media coverage the program will enjoy even more success.”

Is your business eligible?

Eligible businesses must be headquartered in the TAA (taconite assistance area) for at least one year and cannot have had anyone on active layoff or reduced hours for the previous 12 months. All industries except public administration are eligible. Positions must be full-time, permanent (40 hours a week), and 50% of the hourly wage may be reimbursed up to $5.00 per hour. Total reimbursement allowed is $5,000 or 6 months, whichever occurs first. Employers can hire up to 5 employees for a total of $25,000.

Interested parties should contact local Workforce Centers:

Virginia, Scott Thompson, 218-748-2278, sthompson@ aeoa.org

Hibbing, Bob Hocking, 218-262-6797, bhocking@ aeoa.org

Grand Rapids, Steve Walker, 218-327-6756, rsteven. walker@state.mn.us

Applications are available online at www. jobtrainingmn.org.