A Treasury report has indicated that the Hiring Incentives To Restore Employment Act or, the HIRE Act, has prompted businesses to hire around four and a half million workers who have been jobless over the past months. A tax credit was offered for employers who hire new workers that have been jobless for at least 60 days and if they keep these employees for a year they may qualify for another tax credit as well.
While there are many skeptics who question the success of this hiring incentive program so far, there are many who believe that employers who were considering hiring employees will now be prompted to do so in a timely manner thanks for this tax credit. There many companies who have been hesitant to hire due to uncertainty in the economy and their concern about being able to pay these employees but it seems now that many of these business owners are using the HIRE Act tax credit to expand their company’s workforce.
Small business loans have recently been in the news as the SBA had exhausted its funding, which allow them to guarantee a high percentage of small business loans. However, there are many who point to these factors as positive signs that companies are willing to hire new workers and grow, but they simply need capital to do so or the incentives that come from these tax credits.
Unemployment is still a major problem in our nation and many of the long-term unemployed have been struggling and see little hope in the near future for the job market. However, reports like these from the Treasury Department that the HIRE Act tax incentive is being used to hire new workers and that fact that small business owners are asking for the capital that they need to grow and expand their companies does shed a positive light on the job market and our current economic situation.
While growth in the job market may not be happening quickly, it’s hoped that these financial incentives like a hiring tax credit and Small Business Administration loans will be made more available to business owners and be helpful when it comes to hiring workers in the near future.