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Media contact: Bill Tarrow, deputy communications director, 360-902-9376

OLYMPIA –More than two-third of employers who participated in the state’s Shared-Work layoff-avoidance program in 2011 say the program helped them survive the recession, according to a recent survey by the Washington Employment Security Department.

Another 20 percent of businesses reported that it probably helped.

The Shared-Work Program allows employers to reduce the hours of their full-time employees by up to 50 percent, while the workers collect partial unemployment benefits to make up for some of the lost wages.  This translates into immediate payroll savings for participating businesses and prevents the loss skilled employees. 

“The Shared-Work Program is one of the most effective tools offered by any government agency to save jobs and save businesses,” said Employment Security Commissioner Paul Trause. “Our economy would have been in worse shape, and our recovery would take longer, without this program.”

In 2011, 3,176 businesses and more than 38,000 employees were approved to participate in Shared Work, the second-highest year on record, after the peak in 2010.  

The program also saved an estimated 26,000 jobs and more than $42 million in unemployment-benefit payouts in 2011. The estimate comes from information on the employers’ original Shared-Work applications combined with their actual use of the program.

Currently, 2,100 employers and 23,000 employees are enrolled.

“Shared Work is the main reason we’ve been able to hang onto our skilled employees and keep our doors open,” said Belinda Roberts, co-owner of Blue Crown Dental Arts in Kennewick.  “I recommend it to any business considering layoffs.”

Most employers who responded to Employment Security’s survey reported cutting their payrolls by 20 percent or more. Additionally, 52 percent of businesses saved up to two jobs, while 30 percent saved three to five jobs, and another 12 percent saved five to 10 jobs.

Nearly 100 percent of participating employers said they would apply for the program again and recommend it to other struggling businesses. 

Information about the program is available online at www.esd.wa.gov (search on “shared work”) or by phone at 800-752-2500.

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Broadcast version

More than two-third of employers who participated in the state’s Shared-Work layoff-avoidance program in 2011 say the program helped them survive the recession.

Another 20 percent of businesses reported that it probably helped them survive.

Shared-Work allows employers to reduce the hours of their full-time hourly employees, while the workers collect partial unemployment benefits.

Nearly 32-hundred businesses and some 38-thousand employees were approved to participate in the program in 2011 – the second-highest year on record.

To learn more, visit esd.wa.gov.