Workforce Developments: December 2009
December 2009 | Governor Mitch DanielsIn this issue..
- DWD Implements Latest Unemployment Insurance Extension
- Higher Employer Taxes May Be Delayed
- Pilot Program Introduces Dislocated Workers to Health Care
- Terre Haute WorkOne Center Receives a Makeover
- Indiana Cautiously Optimistic on Economy
- Notes from the Commissioner
DWD Implements Latest Unemployment Insurance Extension
Indiana was among the first states in the nation to provide a new federal extension of benefits to eligible Hoosiers. The federal government enacted the up to 20 week extension on November 6, 2009 and Indiana began paying benefits under this new program on November 23, 2009. DWD estimates approximately 50,000 Hoosiers may be eligible to receive this extension. This extension will result in eligible Hoosiers being able to claim up to 99 weeks of unemployment benefits.
Getting the extension in place for customers in a timely fashion was a challenging undertaking.
"The key tasks that we undertook for this program were documenting program requirements, programming DWD’s current systems, and testing to make sure we can handle this unparalleled claims load,"said Marty Morrow, Chief Operating Officer for DWD.
Hoosiers who have previously exhausted their unemployment benefits, but remain unemployed, can apply for this extension through Uplink, the state’s online unemployment benefits system. Updated information will also be posted at www.in.gov/dwd. Claimants can also sign up to receive a free phone or e-mail notification once their weekly deposit has been posted to their account. Claimants can sign up for notification by calling 888-393-5866.
Below is an overview of the unemployment insurance extensions.
| Program | Max Weeks |
|---|---|
| State Unemployment (UI) | 26 |
| Federal Extension 1 (EUC1) | 20 |
| Federal Extension 2 (EUC2) | 14 |
| Federal Extension 3 (EUC3) | 13 |
| Federal Extension 4 (EUC4) | 6 |
| State Extended Benefits (EB) | 20 |
New Employer Tax Rates May be Delayed
Indiana businesses will not receive their typical tax rate notice from the Department of Workforce Development this month. DWD plans to delay the tax notice until March 30, 2010 due to a proposal before the General Assembly to delay for one year the higher tax rates and taxable wage base that are currently scheduled to take effect in January 2010.
Historically, the Department mails every Indiana business in the 4th quarter a notice containing its tax rate for the following year. This year, due to the proposed delay which has initial bi-partisan support, DWD plans to mail a letter in December explaining the delayed official tax notice and the employers’ estimated 2010 tax rate under current law, in case the measure to delay fails to pass the General Assembly.
Lawmakers passed the higher tax rates as part of 2009 legislation to help balance the insolvent unemployment insurance trust fund. The trust fund became insolvent, due to a structural imbalance that allowed it to pay out more in benefits to unemployed Hoosiers than it collected in taxes from employers. Indiana is presently borrowing from the federal government to pay unemployment insurance along with 24 other states. The loan is interest-free and the state is not required to make payments at this time.
When announcing the proposal to delay the tax increase, lawmakers said they hope the delay will give the economy additional time to recover. Lawmakers also want additional time to see what the federal government intends to do to assist states struggling with an overwhelmed unemployment system.
Pilot Program Introduces Dislocated Workers to Health Care
Finding a new job or exploring a new career can be difficult and filled with uncertainty, but for dislocated workers, the need to explore and consider new careers is necessary. The Department of Workforce Development is working with many Hoosier job seekers to navigate through potential career options.
No other field offers more opportunity than health care. The U.S. Bureau of Labor identifies the health care industry as the largest single sector to create new jobs. It is projected that by 2014, the health care sector will represent one in every ten jobs in the United States.
To help dislocated workers discover the endless possibilities the industry offers, the Department of Workforce Development partnered with the Indiana Health Care Association (IHCA) to develop a pilot program that allows dislocated workers to receive a first-hand overview of working in the long-term health care industry. DWD identifies dislocated workers that are interested or could easily transition to the health care industry with their skill set. The pre-selected workers are then given a tour of a local long-term health care facility, hear testimonials from the employees and learn about the various opportunities available in the field. In addition, attendees participate in one-on-one meetings with company representatives hiring in the area and complete on-site employment applications. Depending on training needs, DWD will work with dislocated workers to identify appropriate training to help workers make the transition.
This program has been successfully launched in Elkhart, Delaware, Warrick and Wayne counties. DWD and IHCA are working to expand the program in more areas around the state.
Terre Haute WorkOne Center Receives a Makeover
Job seekers in Terre Haute will notice something new during their next visit to the WorkOne Office. In November, WorkOne Terre Haute celebrated the grand opening of its newly remodeled facility. The new layout is designed to provide a broad variety of seamless services for customers.
Unemployment insurance services, Veteran Employment Services, Trade Adjustment Act services and computer labs are located on the fifth floor of the downtown building, with the service area for jobseekers readily available on the first floor. Other additions at the remodeled service center include two computer labs and six classrooms for Adult Basic Education courses, GED diploma and other workshops. Rooms are also available to employers who would like to utilize the space to interview potential applicants.
The facility is now able to handle more customers. There are 31 computers available to use, as well as the two computer labs with 32 computers.
Terre Haute Mayor Duke Bennett attended the grand opening of the remodeled Terre Haute office.
"(WorkOne) does a wonderful job. They are a key building in our community,"said Bennett. "It’s too bad there is so much need for this office but we have a great place for people to have these needs met."Regional Operator Lisa Lee said the new building has been great for the morale of the customers.
With the struggling economy, jobseekers can use the additional assistance and training to give them an advantage when looking for a job. Taking advantage of the services at the remodeled facility will make them more marketable in their job search.
"(The customers) love the new concept,"said Lee. "People walk in and there aren’t any counters to stand behind and wait in line. Our policy is to greet people within 30 seconds of arrival."
Indiana Cautiously Optimistic on Economy
According to Mark McMullen from Moody’s Economy.com, the Midwest is on its way to an economic “come back” but it will be in the form of a “jobless” recovery with incremental increases expected in payroll employment throughout 2010 and 2011. While economic recovery is broad based across the state, as evidenced by the slowing of payroll employment losses and a decreased unemployment rate, it will not feel like a recovery until businesses begin expanding their payrolls and hiring is resumed.
The Midwest will certainly benefit the most from the recent growth in global demand for durable goods and commodities. The percent share of gross product for export goods in the Midwest has exceeded the Northeast, South and West signaling a global recovery. Since Indiana’s economy is heavily concentrated in Manufacturing and Trade, the effects of increased global demand will impact growth in these sectors.
It is predicted that consumer spending in Indiana will not lead the economy and Hoosiers will stay grounded by continuing to increase their savings rates. During the mortgage lending boom, Indiana's households kept their equity withdrawal as a percent of their disposable income relatively low. Hoosiers tend to be conservative in their spending and will continue to focus on increasing their savings rate as a proportion to their disposable income until hiring and business expansion is resumed. Instead of renewed household spending, economic recovery for Indiana will need to hinge on new business growth and expansion.
Indiana is leading the Midwest and the nation in economy recovery and will lead the state and the Midwest in projected hiring in 2011 and 2012. Indianapolis, Indiana’s largest city, is well positioned to attract future business investment because of plentiful office vacancies, cheap rents for commercial leasing and an abundance of skilled labor. Moody’s outlook for employment suggests that Indiana will experience positive growth by the first quarter of 2011 and will continue positive change increments of about 2% a quarter and increasing to 3% per quarter in 2012.
Indiana Leading the Midwest and Nation in Recovery
Source: Moody’s Economy.com
In conclusion, the outlook for 2010 is cautiously optimistic in that payroll employment decline will begin to taper off and hiring will begin to expand by the fourth quarter of 2010. In 2011, Indiana’s economy will begin to experience the beginning of business expansion and growth in payroll employment which will drive increased tax revenues. Full employment is not expected until 2012 and until then, state policy makers should continue to be conservative in their forecasts for state revenue projections.
Greetings! The year was 1904 when the first gasoline powered automobile rolled off the production line at the Studebaker factory in South Bend. In the early 1900’s automobiles were produced by companies large and small in over 40 different Hoosier cities. From those early beginnings continuing through today, the hard work of Hoosiers would power the US auto industry.
The bedrock of Indiana manufacturing has undergone significant changes in the past year and even greater transformation awaits us in the not so distant future. These changes will result in new production techniques at factories and demand new skills of its workers. To that end, I am pleased to announce the Indiana Department of Workforce Development has been awarded a $4 million grant by the US Department of Labor to help transition US autoworkers to the careers of tomorrow and transform the auto industry.
Indiana will lead a tri-state partnership including the Michigan Department of Energy, Labor and Economic Growth and the Ohio Department of Jobs and Family Services to conduct this research and build a roadmap to success for both individual workers and the auto companies.
The study will focus on: what skills and training requirements are necessary in the new auto industry, identifying current and projected skill gaps of workforce, identifying alternative career path opportunities for dislocated auto parts workers and the impact of the auto industry transformation on the auto parts supply chain.
Hoosiers workers and businesses will benefit from this research. It will help Indiana remain a leader in advanced manufacturing and prepare for developing green jobs. New training methods and skills identified by the research will help Hoosiers develop a strong skill set that will enable them to compete for high-paying, in-demand jobs. In addition, having a well-trained, strong workforce will help attract new business to the state and create new jobs.
DWD and its partners will kickoff the project this month. The team expects to produce a final report and present its findings and recommendations in 2011.
Best Wishes,
Teresa
Commissioners Indiana Department of Workforce Development
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