$10M NJ Jobs Program Seeing Low Participation 6 Months In

Toms River NJ

17 June, 2022

11:56 AM

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NEW JERSEY — As small businesses spoke of their difficulties in finding and hiring workers to fill jobs, a challenge exacerbated by the ability of larger companies to pay higher wages, New Jersey created a program that aimed to help them compete. Six months in, however, the impact hasn't been what was hoped, and state officials and business groups are looking for ways to improve that. The Return and Earn program was created in September with $10 million in coronavirus pandemic funding from the American Rescue Plan Act. It is set up for small businesses, with 100 employees or fewer, to hire people with "identifiable skill gaps" and train those workers, and pay a minimum of $15 per hour for those positions. The state's program reimburses employers for 50 percent of the wages they pay during the training period, with a maximum of six months and of $10,000 per Return and Earn employee and a maximum of $40,000 for the business. In addition, unemployed workers reentering the workforce and receiving job training are eligible for a $500 incentive in their first paycheck, according to information on the state website. There have been 4,237 employers who have contacted the state about the Return and Earn program since September, said Angela Delli-Santi, a spokesperson for the state Department of Labor. As of May 23, 117 employers have joined the program, with on-the-job training contracts written for 172 employees, she said. The commitment so far is $1.38 million in training dollars; she did not have information on how much has been paid so far. The employees hired through the program have received $86,000 in hiring bonuses, Delli-Santi said. "Some employers do not meet the requirements" to take part in the program, she said. "For others, it takes time to develop a skills training program and bring employees on board to participate." Michele Siekerka, president and CEO of the NJ Business and Industry Association, called the program "a good start to address the workforce challenges resulting from the COVID-19 pandemic," when Gov. Phil Murphy announced it in September. In April, Siekerka said it is unclear why more businesses aren't participating in the program but that it may need to be re-evaluated. "We have to look back and say why? Why aren't businesses taking care of that right now?" she said. But she also said other issues are keeping workers, particularly women, from returning to jobs, with child care needs being high on the list. "We can't get our parents back to work if we can't get our children into safe child care," Siekerka said. "Women have been most disproportionately impacted during the pandemic. We have the lowest labor participation rate today of women in the workforce in over four decades." Delli-Santi said the state has tried to make sure employers who could benefit from the program are aware of its existence, including through organizations that work with and advocate for businesses in New Jersey, such as the Business Action Center and NJ Business and Industry Association. "We are considering expanding the pool of eligible employers," she said. "There are ongoing discussions on how to best support employers and build participation." Employers interested the program can fill out this form to get contacted with additional information. People looking for work who are interested can fill out this form for one-on-one virtual assistance.