New York SBDC Research Network

Here is a http://www.labor.state.ny.us/stats/PDFs/enys0212.pdf the February 2012 Employment in New York State newsletter. Note the lead article, "Who Creates Jobs?" One of the most widely held beliefs about the U.S. economy is that small businesses create the most new jobs. Statements over the past 30 years by political leaders (see above) reinforce this notion. However, recent research by John Haltiwanger of the University of Maryland and Census Bureau economists Ron Jarmin and Javier Miranda (hereafter listed as HJM) found that the accuracy of this idea is“subject to a host of statistical and measurement issues.” These issues include: • How large is a “small” business? • How do we measure “job growth”? • Is the age of the business considered? This article takes a closer look at the issues outlined above, using New York State data from the Census Bureau’s Business Dynamics Statistics (BDS).

The New York State Department of Labor provides very useful statistics on wages, both by occupation and industry . Annual wages for each occupation are divided into mean, median, entry, and experienced levels. Wages can be examined at both the state level and by region. This is the best way to determine what a business owner should pay their employees.

Recently I received a request that asked if there were any "federal programs for hiring the unemployed". Through the course of my research, I found three programs that might entice employers to hire new employees regardless of the current state of the economy. HIRE Act Under the Hiring Incentives to Restore Employment (HIRE) Act, enacted March 18, 2010, two new tax benefits are available to employers who hire certain previously unemployed workers. The first, referred to as the payroll tax exemption, provides employers with an exemption from the employer’s 6.2 percent share of social security tax on wages paid to qualifying employees, effective for wages paid from March 19, 2010 through December 31, 2010. In addition, for each qualified employee retained for at least 52 consecutive weeks, businesses will also be eligible for a general business tax credit, referred to as the new hire retention credit, of 6.2 percent of wages paid to the qualified employee over the 52 week per...