step up full report
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Commissioner’s Report Regarding the Subsidized Training and
Employment (Step Up) Program as required by Public Act #12-1
February 2013
Submitted by Commissioner Sharon M. Palmer
CT State Department of Labor
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Commissioner’s Report Regarding the
Subsidized Training and Employment (Step Up) Program
Table of Contents Background Page 1
Program Eligibility Page 1
Executive Summary Page 2
Step Up Program Progress Overview Page 5
Industry Participants – Present and Future Page 7 Education and Outreach Strategies Page 10 Conclusion Page 12
Attachments Newspaper Articles
Public Outreach Materials Flyers
Post Cards
Fact Sheet
Web BannersPromotional Banner
Web Button
E‐mail Newsletter
Press Releases
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This is the first of the required STEP‐UP
bi‐annual reports beginning June 30 and ending
December 31, 2012. Future reports will be
prepared and delivered every six months.
Acknowledgements The state’s Step Up program has benefited from the work of
many dedicated individuals from the Department of Labor’s
Office of Employment and Training, Office of Workforce
Competitiveness, Communications, Veterans’ Services,
Workforce Investment Act (WIA) program, theagency’s legal and legislative teams, as well as our
Workforce Investment Board partners.
I would also like to acknowledge the following people
for their individual contributions to this document.
Anita Cox Christopher Caruso
Joseph Criscuolo Muhammodu Giwa Marisa Morello
Art Perry Mark Polzella
Nancy Steffens
Respectfully submitted,
Sharon M. Palmer
Commissioner
Connecticut Department of Labor
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Connecticut Department of LaborCommissioner’s Report Regarding Step Up Program
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Background
Growing Connecticut Jobs
As part of Public Act #11‐1 (the result of Connecticut’s October Special Session that focused onjob creation) and later amended by Public Act #12‐1 during a June Special Session that expanded the program to include a veterans’ employment component, the Subsidized Trainingand Employment Program (Step Up) places an emphasis on helping small business to expand,providing jobs to unemployed workers, and boosting the state’s economy. The statewidebipartisan initiative, administered by the Connecticut Department of Labor and the state’s fiveWorkforce Investment Boards, has been highly successful in growing and retaining high‐quality jobs.
In Connecticut, 94% of the state’s companies employ less than 100 workers, yet these samebusinesses employ about 60% of the workforce. With this in mind, the Governor and the
Legislature developed a program that primarily focused on the small business community.
Step Up offers two programs: the Small Business Wage Subsidy Program and the Small Manufacturer Training Grant Program. Each program offers employer incentives to hirenew employees and create jobs. State bond money for the program is $20 million over twoyears – which is split equally between the two programs.
Eligible companies, defined as a small business or manufacturer with not more than 100employees can apply for one program for each new hire – an employer cannot use multipleprograms for one new hire. There is no limit regarding company size under the programfocused on employing veterans.
Program Eligibility
Small Business Wage Subsidy Program Eligibility
Guidelines for Workers
• Unemployed prior to hire• Resident of municipality that has an unemployment rate equal to or higher than the state
rate as of September 1, 2011, or resides in a town with a population of 80,000 or more• Adjusted family income equal to or less than 250% of the federal poverty level• New employee does not mean a person employed on a temporary or seasonal basis by a
retailer
Guidelines for Employers
• Small business or manufacturer with not more than 100 full‐time workers (no size limit under the Unemployed Armed Forces Member Subsidized Training and Employment Program)
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Connecticut Department of LaborCommissioner’s Report Regarding Step Up Program
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• Registered to conduct business for at least 12 months and has operations in Connecticut • In good standing with the payment of state and local taxes
Subsidized Wage Program Incentives
A wage subsidy for new hires (up to $20 per hour and can be reimbursed up to $12,000 –excludes benefits) is provided over a 180‐day period. The subsidy, which begins at 100percent the first month, cascades down on subsequent months following this formula:
Month 1 – 100%Month 2 – 75%Month 3 – 75%Month 4 – 50%Month 5 – 50%Month 6 – 25%
Small Manufacturer
Training
Grant
Program
Eligibility
Guidelines for Workers
• Unemployed prior to hire
Guidelines for Employers
• Small manufacturer with not more than 100 full‐time workers• Has been registered to conduct business for at least 12 months and has operations in CT• Training must take place at the business site• Business must be in good standing with the payment of state and local taxes
Small Manufacturer
Training
Grant
Program
Incentives
Training grants up to $12,500 for new hire for six months. Training must be held on‐siteand the grant can also be used to subsidize wages, although it cannot exceed salary. Thegrant, which provides $2,500 the first month, cascades down on subsequent monthsfollowing this formula:
Month 1 ‐ up to $2,500Month 2 ‐ up to $2,400Month 3 ‐ up to $2,200Month 4 ‐ up to $2,000Month 5 ‐ up to $1,800
Month 6 ‐ up to $1,600
The Step Up program was expanded in June 2012 to include the Unemployed Armed Forces
Member Subsidized Training and Employment Program. This program, similar to the SmallBusiness Wage Subsidy program, is available to eligible employers of any size that hire anunemployed veteran. Veterans must have been a member of the Armed Forces or any reservecomponent of these armed forces, or a state National Guard; called to active service in support of Operation Enduring Freedom (Afghanistan) or military operations against Iraq; and
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honorably discharged after serving at least 90 days in a combat zone, or earlier if theindividual was separated from service due to a service‐connected disability.
An additional $10 million in state funding was approved by the State Bond Commission for this
portion of the program. The first biannual report for the Unemployed Armed Forces MemberSubsidized Training and Employment program is due July 15 starting in 2013. Therefore, datafor this program is not represented here.
This report provides Step Up data for the Small Business Wage Subsidy Program and the SmallManufacturer Training Grant Program from program from February 12, 2012 through January14, 2013. This includes available data on:
1. The number of small business participants in the Step Up Program and the generalcategories of these businesses.
2. The number of small manufacturers that participated in the Step Up Program and the
general categories of these manufacturers.3. The number of individuals that received employment as a result of Step Up.4. The most recent estimate of the number of Step Up jobs created or maintained.
Executive Summary
Step Up is achieving what it was intended to do – getting unemployed people in Connecticut back to work in jobs that offer good paying positions and helping employers grow theirworkforce.
Although not long in existence, the program has served as an important economic stimulus. Of the 1,102 individuals hired, 612 of those were reported by the hiring companies as new jobscreated specifically as a result of Step Up program incentives. This represents a 55% jobcreation rate directly attributable to the Step Up program.
With an average wage of $14.23 an hour, positions include Project Engineers, Account andProduction Managers, Assembly Supervisors, CNC Operators, Graphic Designers, Welders, ToolMakers, Press Operators, Process Engineers, Operations Directors, Bookkeepers, Accounting,Masons, Glaziers, Engine Builders, Insurance Agents, Dispatchers, and Assistant SolarInstallers.
Currently, approximately 80 percent of those hired through the program continue to beemployed at the companies that received the subsidies and 245 employees have completed sixmonths of work and are no longer subsidized. As a result of its early successes, the programhas been extended for an additional year, to June 2014.
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Step Up At a Glance
Number of Small Business Participants 206Number of Small Manufacturer Participants 171Total Number of Individuals Hired 1102
Small Manufacturer Hires 601Small Business Hires 501
Estimated Number of New of Jobs Created 612Average Hourly Wage $14.23Average Employer Reimbursement $11,383.15Year‐to‐Date Payments $4,291,449Dollars Obligated $10,104,000 (as of 11/2012)
By Regional Workforce Investment Board
North Central
Total Number of Individuals Hired 265Small Manufacturer Hires 194Small Business Hires 71
Estimated Number of New of Jobs Created 124
Eastern
Total Number of Individuals Hired 212Small Manufacturer Hires 109Small Business Hires 103
Estimated Number of New of Jobs Created 79
South Central
Total Number of Individuals Hired 266Small Manufacturer Hires 133Small Business Hires 133
Estimated Number of New of Jobs Created 163
North West
Total Number of Individuals Hired 176Small Manufacturer Hires 116Small Business Hires 60
Estimated Number of New of Jobs Created 98
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South West
Total Number of Individuals Hired 183Small Manufacturer Hires 49
Small Business Hires 134Estimated Number of New of Jobs Created 148
Step Up Program Progress Overview
Note: program participation numbers through November 2012
1. Small Businesses Participants
The following chart provides a snapshot of the types of industries within the Small Businesscategory participating in the Step Up program. The industry types are defined by the North
American Industry Classification System (NAICS).
Small Business
0
5
10
15
20
25
30
35
M o t o r
V e h i c l e P
a r t s D
e a l e r
s
H e a l t h c
a r e S
e r v i c e s
P r o f e
s s i o n
a l / T e
c h n i c
a l S e r v i c e s
S o c i a l S
e r v i c e
s
P e r s o
n a l S
e r v i c e
s
F o o d
S e r v i c e s
R e l i g i o u
s / C i v i c S
e r v i c e
s
W h o l e s
a l e r s
A d m i n i s t r a t i v e &
S u p p o r t S e r v i c e s
C o n s t r u c t i o n
R e p a i r &
M a i n
t e n a n c e
S c i e n
t i f i c / T
e c h n i c a
l S e r v i c e
s
T r a d e C
o n t r a c t o r s
Industries
# o f C o m p a n i e s
Small Business
0
5
10
15
20
25
30
35
M o t o r
V e h i c l e P
a r t s D
e a l e r
s
H e a l t h c
a r e S
e r v i c e s
P r o f e
s s i o n
a l / T e
c h n i c
a l S e r v i c e s
S o c i a l S
e r v i c e
s
P e r s o
n a l S
e r v i c e
s
F o o d
S e r v i c e s
R e l i g i o u
s / C i v i c S
e r v i c e
s
W h o l e
s a l e r
s
A d m i n i s t r a t i v e &
S u p p o r t S e r v i c e s
C o n s t r u c t i o n
R e p a i r &
M a i n
t e n a n c e
S c i e n
t i f i c / T
e c h n i c a
l S e r v i c e
s
T r a d e
C o n t r a c t o
r s
Industries
# o f C o m p a n i e s
Within the Small Business category, Specialty Trade Contractors represents the largest amount of participating companies with 33. This category includes plumbing, painting, and electricalwork involved in building construction. This is followed by companies within the Professional,Scientific, and Technical Services industry with 24 participants. Companies associated withthis type of industry include accountant offices, tax preparation services, legal practitionersand engineering services.
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Those rounding out the top industry types in the Small Business category are noted in thefollowing chart:
SMALL BUSINESSES: TOP INDUSTRY TYPES Participating In Step Up
# of
Firms
Repair and
Maintenance
Example: Mechanical and electrical repair and maintenance services forautomotive vehicles.
14
Construction of Buildings Example: Remodeling general contractors, for‐sale remodelers, remodeling design‐build firms, and remodeling project construction management firms.
14
Administrative & Support Services Example: Establishments primarily engaged in providing a range of day‐to‐dayoffice administrative services, such as financial planning; billing and recordkeeping
12
2. Small Manufacturer Participants
The following chart provides a snapshot of the types of industries within the SmallManufacturers category participating in the Step Up program. As with the Small Businesscategory, industry types are defined by the NAICS.
Small Manufacturer
0
10
20
30
40
50
60
W o o d P
r o d u c t s
P a p e r M
f g .
E l e c t r i c
a l E q u i p
t .
F o o d
M f g .
P r i n t i n g
P l a s t i c s &
R u b b e
r
C h e m i c a l M
f g .
C o m p
u t e r E l e c
t r o n i c
s
T r a n s p o r t a t i o n
E q u i p t
.
M a c h i n e
r y M f g .
M i s c / o t h e
r M f g .
F a b r i c a
t e d M e t a l P
r o d .
Industries
# o f C o m
p a n i e s
Small Manufacturer
0
10
20
30
40
50
60
W o o d P
r o d u c t s
P a p e r M
f g .
E l e c t r i c
a l E q u i p
t .
F o o d
M f g .
P r i n t i n g
P l a s t i c s &
R u b b e
r
C h e m i c a l M
f g .
C o m p
u t e r E l e c
t r o n i c
s
T r a n s p o r t a t i o n
E q u i p t
.
M a c h i n e
r y M f g .
M i s c / o t h e
r M f g .
F a b r i c a
t e d M e t a l P
r o d .
Industries
# o f C o m
p a n i e s
Within the Small Manufacturer category, Fabricated Metal Products represents the largest amount, with 50 companies in this sector. Types of companies found in this group includemachine shops primarily engaged in machining metal and plastic parts, and parts of othercomposite materials on a job or order basis. The next largest sector was MiscellaneousManufacturing with 20 companies. Types of companies in this group include signmanufacturing, office supplies manufacturing, and furniture manufacturing.
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Those rounding out the top industry types in the Small Manufacturers category are noted inthe following chart:
SMALL MANUFACTURERS: TOP INDUSTRY TYPES Participating In Step Up
# of
Firms
Machinery Manufacturing
Example: Tool and die shops, primarily engaged in manufacturing special tools andfixtures, such as cutting dies and jigs.
18
Transportation Equipment Example: Manufacturers of aircraft engines and engine parts.
10
Computer Electronics Example: Manufacturers of automatic controls and regulators for applications, suchas heating, air‐conditioning, refrigeration and appliances.
8
3. Individuals Hired/Receiving Employment
An extensive outreach and education campaign, detailed later in this report, has been utilizedto connect with employers and job seekers who may be interested in taking part in the Step Upprogram. Regional Step Up coordinators hired through the state’s five Workforce Investment Boards assist with outreach and promotion of the program, and to process employer and jobseeker application forms and determine eligibility. The coordinators also assist employers bylocating potential employees suitable for their specific job openings. The coordinators track the number of individuals hired, track the progress of the new employee, and determine if theemployee has been retained after the six‐month period. Their goal is to facilitate the hiringprocess by meeting the workforce needs of the employer, provide quality employment to jobseekers, and promote the program through one‐on‐one meetings, public events, mediainterviews and distribution of program information developed by the Department of Labor.
4. Jobs Created or Maintained
Of the 1,102 individuals hired, employers reported that over half of those (612) were neededto fill new jobs created specifically as a result of Step Up program incentives. This represents a55% job creation rate directly attributable to the Step Up program. The Regional Step Upcoordinators track this statistic by entering the employer’s response to the question on theagreement form that all companies must complete: “Would you (employer) have hired this employee without the Step Up incentive?”
Industry Participants
– Present
and
Future
The following tables provide an indication of the types of industries currently taking advantageof the Small Business and Small Manufacturer Step Up programs. In addition to a brief description of the specific industry, these tables also include the number of companies, as wellas the assigned NAICS code. This information lets us know what companies have found valuein Step Up incentives – either the wage subsidy or the training grant – and can be used to
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potentially target further program awareness to these types of businesses, as well as outreachto related industries.
Small Business Participants (by Industry Types)
Company Description
Specific Industry
Code # of
Firms
General Automotive Repair - Establishments primarily engaged inproviding (1) a wide range of mechanical and electrical repair andmaintenance services for automotive vehicles, such as passenger cars,trucks, and vans, and all trailers or (2) engine repair and replacement.
811111 10
Framing Contractors - Establishments primarily engaged in structuralframing and sheathing using materials other than structural steel orconcrete. The work performed may include new work, additions,alterations, maintenance, and repairs.
238130 6
Insurance Agencies
and
Brokerages ‐ Establishments primarily
engaged in acting as agents (i.e., brokers) in selling annuities andinsurance policies.
524210 5
New Single-Family Housing Construction - (except for‐sale builders) ‐General contractor establishments primarily responsible for the entireconstruction of new single‐family housing, such as single‐familydetached houses and town houses or row houses where each housingunit (1) is separated from its neighbors by a ground‐to‐roof wall and (2)has no housing units constructed above or below. Industry includesgeneral contractors responsible for the on‐site assembly of modular and
prefabricated houses. Single‐family housing design‐build firms andsingle‐family construction management firms acting as generalcontractors are included.
236115 4
Residential Remodelers ‐ Establishments primarily responsible for theremodeling construction (including additions, alterations,reconstruction, maintenance, and repair work) of houses and otherresidential buildings, single‐family, and multifamily. Included in thisindustry are remodeling general contractors, for‐sale remodelers,remodeling design‐build firms, and remodeling project constructionmanagement firms.
236118 4
Plumbing, Heating, and Air -Conditioning Contractors ‐
Establishments primarily engaged in installing and servicing plumbing,heating, and air‐conditioning equipment. Contractors in this industrymay provide both parts and labor when performing work. The work performed may include new work, additions, alterations, maintenance,and repairs.
238220 4
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Company Description (continued)
Specific
Industry
Code # of
Firms
All Other Specialty Trade Contractors - Establishments primarily
engaged in specialized trades (except foundation, structure, and buildingexterior contractors; building equipment contractors; building finishingcontractors; and site preparation contractors). The specialty trade work performed includes new work, additions, alterations, maintenance, andrepairs.
238990 4
Other Accounting Services ‐ Establishments (except offices of CPAs)engaged in providing accounting services (except tax return preparationservices only or payroll services only). May also provide tax returnpreparation or payroll services. Accountant (except CPA) offices,bookkeeper offices, and billing offices are included in this industry.
541219 4
Home Health Care Services ‐ Establishments primarily engaged in
providing skilled nursing services in the home, along with a range of thefollowing: personal care services; homemaker and companion services;physical therapy; medical social services; medications; medicalequipment and supplies; counseling; 24‐hour home care; occupation andvocational therapy; dietary and nutritional services; speech therapy;audiology; and high‐tech care, such as intravenous therapy.
621610 4
Child Day Care Services ‐ Establishments primarily engaged inproviding day care of infants or children. Generally care for preschoolchildren, but may care for older children when they are not in school andmay also offer pre‐K educational programs.
624410 4
Full - Service Restaurants (U.S. industry) ‐ Establishments primarilyengaged in providing food services to patrons who order and are servedwhile seated (i.e., waiter/waitress service) and pay after eating. Mayprovide this type of food service to patrons in combination with sellingalcoholic beverages, providing carryout services, or presenting live non‐theatrical entertainment.
722511 4
Machine Shops – Establishments primarily engaged in machining metaland plastic parts and parts of other composite materials on a job ororder basis. Generally machine shop jobs are low volume using machinetools, such as lathes (including computer numerically controlled);automatic screw machines; and machines for boring, grinding, and
milling.
332710 19
Precision Turned Product Manufacturing ‐ Establishments known asprecision turned manufacturers primarily engaged in machiningprecision products of all materials on a job or order basis. Generallyprecision turned product jobs are large volume using machines, such asautomatic screw machines, rotary transfer machines, computernumerically controlled (CNC) lathes, or turning centers.
332721 7
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Company Description (continued)
Specific
Industry
Code # of
Firms
Electroplating, Plating, Polishing, Anodizing, and Coloring -
Establishments primarily engaged in electro‐plating, plating, anodizing,coloring, buffing, polishing, cleaning, and sandblasting metals and metalproducts for the trade. Included in this industry are establishments that perform these processes on other materials, such as plastics, in additionto metals.
332813 6
Aircraft Parts and Auxiliary Equipment Manufact uring ‐Establishments primarily engaged in (1) manufacturing aircraft parts orauxiliary equipment (except engines and aircraft fluid power sub‐assemblies) and/or (2) developing and making prototypes of aircraft parts and auxiliary equipment. Auxiliary equipment includes such itemsas crop dusting apparatus, armament racks, inflight refueling equipment,
and external fuel tanks
336413 5
Special Die and Tool, Die Set, Jig, and Fixture Manufacturing ‐Establishments, known as tool and die shops, primarily engaged inmanufacturing special tools and fixtures, such as cutting dies and jigs
336514 4
Sign Manufacturing - Establishments primarily engaged inmanufacturing signs and related displays of all materials (except printing paper and paperboard signs, notices, displays).
333514 4
Education and Outreach Strategies
The Labor Department and its partners have worked together to develop a comprehensive andsuccessful outreach campaign to educate and inform employers and jobseekers about theopportunities offered under the Step Up programs.
Soon after the Step Up program was approved, the agency created a website to help promotethe program. The site can easily be found on the homepage of the Labor Department’s site, aswell as that of the Office of Workforce Competitiveness. To promote the site in the best waypossible, the agency developed a stylized “button” on its website to highlight the program. Thisgraphic design element has been incorporated into all marketing products, including electronicnewsletters, media articles, fact sheets, flyers, and employer and jobseeker handouts that can
be customized by the regional Step Up coordinators.
The agency partners with employers, legislators and the Governor to hold media events toshowcase Step Up success stories with the goal of getting out the word via television,newspaper and radio coverage of these events. In many cases, the media events feature newly‐hired employees, as well as the employer – with both providing real‐life testimony regardinghow the program has helped create jobs.
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Soon after Step Up began, Governor Malloy held a press event in Bloomfield at Street Fleet Mechanics to help kick‐off the new program and celebrate the fact that 45 employers hadalready hired new employees under the program. State Sen. Eric Coleman and State Rep. DavidBaram, who both represent Bloomfield, were also at the event to recognize Street Fleet (the
company had hired several employees under Step Up and planning to expand) and to promotethe incentives available to employers and the opportunities for jobseekers.
This past November, the Governor held a press event at the Bridgeport CTWorks Career Centerto announce that the Step Up program had been expanded to include returning militarypersonnel. The new armed forces component, known as the Unemployed Armed ForcesMember Subsidized Training and Employment Program, has also been advertised with flyers,web banners, press releases, radio interviews, newspaper articles and through the agency’sOffice for Veterans’ Workforce Development.
Connecticut’s Senators and Representatives also held press events, at sites that included
Middletown, New Haven, North Branford, Norwalk and Watertown, to highlight the programand help inform their communities of the opportunities offered by Step Up. These events havebeen instrumental in getting out the word about this job creation progrms and the agencylooks forward to continuing this important partnership.
The agency played an important role in an employer seminar held in the fall of 2012 at theAnsonia Armory. The free event, which attracted more than 185 attendees, highlighted thebenefits of Step Up as well as related wage and tax incentives. The Greater Valley Step UpConference was hosted by Lt. Governor Nancy Wyman along with co‐hosts State Rep. Linda M.Gentile, State Sen. Joseph Crisco and the Valley’s State Delegation. Based on the success of theconference, additional employer events are scheduled for 2013.
The following is a partial listing of the successful outreach strategies and materials that havebeen planned and/or developed to market the Step Up program. (See Attachments section for samples of public education and outreach materials).
Well‐visited website with employer and job seeker inquiry forms, fact sheets, regionalcoordinator contact information, media articles, press releases, and radio interviews:http://www.ctdol.state.ct.us/OWC/StepUp/StepUp.htm. The site averages more than800 visits per month
Series of fact sheets and flyers – available in both print and electronic format
Promotional “business cards” designed to attract potential employers and jobseekers
Electronic newsletters to approx. 10,000 employers and state’s Chambers of Commerce Mailed newsletter to the state’s approx. 95,000 employers
Localized press events with area Legislators, Step Up employers and Step Up hires
Regional employer informational seminars co‐hosted by State Legislators
Outreach articles provided to United Way Infoline 211 and Legislators Interviews with Legislators for local cable TV stations
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Periodic press releases and outreach to media, resulting in interviews with local radioand TV stations, and articles in newspapers, business journals and trade publications
Advertising banner and information displayed at job fairs, conferences, media events Outreach and employer meetings by Workforce Investment Board Step Up Regional
Coordinators Presence at job fairs, business events and seminars to promote Step Up, including
Business Expos, Society for Human Resource Managers, and the CT Business andIndustry Association
Information session, sponsored by the International Brotherhood of Carpenters;included building trade representatives and industry contractors, allowed the agency todetail the Step Up program
Advertisements in business journals and materials provided at employer events
Social media outreach on Face book and Twitter
Outreach via the CTWorks Career Centers and Office for Veterans’ WorkforceDevelopment to employers and jobseekers
The Labor Department and its partners will continue to actively promote the program and itsbenefits and plan to continuously improve upon the comprehensive outreach and educationcampaign that has been developed.
Conclusion
As of January 14, 2013, approximately $10,104,000 million has been obligated through theStep Up program in support of the 1,102 participants hired. This has also allowed 377employers statewide to expand their business with the average employer reimbursement amounting to just over $11,000 per new employee.
The program continues to attract new employers, as well as those that have used Step Up forseveral new hires. Small businesses of 100 employees or fewer are real job creators inConnecticut, employing more than 60 percent of the state’s total workforce. The Step UpProgram supports the expansion and growth of small business in our state, and the creation of jobs for unemployed workers by offering wage subsidies and training grants that allowConnecticut to invest in its workforce and the local business community.
As additional employers participate in the program, the Labor Department and its workforcepartners will continue to place an emphasis on the creation of quality jobs, employerexpansion, and the strengthening of Connecticut’s economy.
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