Job Creation Program

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Dimpy Handa
Many states have job creation programs in place to deal with high unemployment rates and to spur the growth of particular industries within their borders. These programs reward employers by way of tax deductions or grants in exchange for the employer increasing the number of employees. Such incentives are beneficial to the community at large as it means more dollars funneled into the community through wages earned.

Ohio's Job Creation Tax Credit Program provides an incentive for employers to increase their number of employees by allowing employers a deduction on their corporate tax. The specific amount of the deduction is determined by the amount of money the employee pays in state income tax. For example, if an employer hires an employee with an annual salary of $40,000, the state income tax withheld would be $1,112.50 (2010). The employer can deduct that sum from his corporate tax.
 
The workforce development system has faced unprecedented challenges in recent years as demand for education and training skyrocketed during the recession. Over the past program year, the WIA system served over 8.4 million job seekers in the U.S. and helped 4.3 million gain employment. In Illinois, 173,109 job seekers were served by the WIA system in the past program year. Since the beginning of the recession in 2007, WIA participation rates in Illinois have increased 25.1% for adults and 24.6% for youth who are seeking employment, education, training and work experience (percent increase calculated from the PY 2007 DCEO IL Workforce Development Annual Report and the PY 2009 DCEO IL Workforce Development Annual Report). Despite funding remaining stagnant at 2008 levels, nationwide WIA participation rates increased 234 percent.
 
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