Human Resources News & Insights

Obama’s new jobs plan: Will it reduce unemployment?

President Obama has unveiled his latest jobs proposal. Included in it are these seven things he hopes to provide for the unemployed.

  1. Universal Displaced Worker Program. The president’s new budget proposal included plans for a program designed to provide displaced workers (those who lost their job when their employers closed or eliminated their positions, or didn’t have enough business to keep them employed) with skills, counseling and job search assistance services. The White House estimates up to a million workers a year would be eligible for help under the program.
  2. Up to $4,000 in training awards. Under the Universal Displaced Worker Program, displaced workers would be eligible for training awards of up to $4,000 per year for up to two years.
  3. Up to $300 in weekly stipends. For workers who are receiving job training, the program would provide weekly stipends for child care, transportation and other expenses worth between $150 and $300 for low-income workers. They’d be available for up to 78 weeks and could be received in addition to 26 weeks of unemployment insurance benefits.
  4. Relocation allowances. The program would also provide up to $1,250 in job search and relocation allowances.
  5. Wage insurance. Workers who are 50 or older who obtain new full-time employment at wages of less than $50,000 may receive wage insurance for up to two years to help offset earnings losses if their new jobs pay less than their old ones.
  6. American Job Center Network. This would unify state and local one-stop career centers and provide workers with access to an online tool or 1-800 number through which they could access job search services from home.
  7. American Job Center website. The White House plans to unveil a new American Job Center website at The Obama Administration says it’ll help people find jobs and training programs. The site is under construction, but individuals can sign up for an alert to tell them when the site goes live.

Info: For a more detailed breakdown of the president’s jobs proposal, click here to see the White House’s official statement.

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  • John

    The private sector creates jobs. The government is first and foremost a consumer of private wealth. So, how can it possibly be the solution to our economic woes? What a travesty.

  • H2r

    And the “private” sector is sitting on 3 gazillion dollars and not creating jobs. The “Commander in Chief” sector is doing what the “obstructionist” sector “Cantor” won’t.

  • De

    First of all the government needs to stop giving everything and enabling those that dont want to work- because they dont have to. Being a business owner, it is very difficult to hire when possible applicants, say I will do better being unemployed than working. (TRUE fact). During the depression the government found work for people INSTEAD of offering free handouts. Scale down on freebies and you will increase unemployment.

  • Linda

    Why is the focus on handouts instead of creating jobs?! Who is to pay for this? What about those employees who took huge pay cuts to be productively employed – do they get to go back and collect two years worth of wage insurance? How about making it easier for the private sector to create jobs?

  • Ed

    What will any of this do to create any jobs? Nothing. The only new jobs will be public sector jobs for people administering this waste of tax payer money. I am also sure everyone who is unemployed would appreciate another $300 per week for expenses plus $4000 to attend training – but in the end if there is no new jobs – what happens? Still unemployed. Then the goverment will come up with some other program with a catchy name will make us think it will help employment, but in the end we will be spending more money we don’t have and run up the debt which will be with us for generations.

  • MMAN

    @De. Yes part of what you say is true and I’m not saying that what you are saying is wrong. However, you make the statement that possible applicants say I can do better being unemployed, that out to say something about your business…that the government pays better than you do for doing nothing. You see business owners seem to feel that since they offer jobs, people ought to take them regardless of what they pay. Don’t get me wrong, I believe in working for a living, going to school, and getting an education just like most on here, but I also believe if people work hard for a living, they ought to be rewarded for it and be able to live (afford the basic necessities of life and even some wants) when and if they work. So I feel half of the problem lies with organizations themselves just as much as the government because they do not offer enough incentives for people to come to their organizations. The problem is, there is a lack of balance on both sides of the fence.

  • John

    Those incentives will never be enough. People will just want more and more. That’s the entitlement mentality. No one deserves anything. I certainly don’t. If I want something, I need to work for it.

  • HR in GR

    Obama needs to get his head out of the sand and stop enabling those who prefer NOT to work.
    Make it mandatory that they are required volunteer/work at least 30 hours to get the $300/wk by helping out at homeless shelters, non-profit organizations, schools, prisons, nursing homes, etc..

    If I was needing a “handout” to get training, I certainly would expect to make a contribution somewhere in order to get it. By giving without expectation is foolish and reckless.

  • H2r

    Where in the hell does it say that these people are being enabled for preferring not to work. Everything in the list is for receiving training, moving for a job, accepting work that pays less, etc. I don’t want to wish bad karma on anyone, but I hope that someday you are able to see things from the other point of view. And I am willing to bet that 100% of business owners would accept or expect any tax breaks for doing anything similar (like providing on the job training for example) for any of these same people.

  • MMAN

    @John, that is exactly what I am saying, people do need to work for what they want so I am in no way advocating the “entitlement” mentality. But on the other side of that, many people work and still get government assistance because employers don’t pay enough to get them above poverty level. I mean it is a shame that government even has to step in to subsidize meeting the needs of “those who do work and work hard” because their employers are not meeting their needs. I prefer to work to make a living but I also need to be able to live. On another note, as I said in a post on another thread, organizations have an entitlement mentality just as well as they received tax payer bailouts because they claimed “we are too big to fail”. But people like you choose to only focus on the problems of people, who yes while they may be lazy, but are no different than these corporations who wanted something for nothing. I feel the bailout money, if it was going to go to anybody, should have went to the public as they would have at least spent it back into our economy on high demand things and not hoared it up like many organizations did to pay bonuses to a select few and tried to develop things that there was no market for.

  • Cindy

    As someone who has relatives (and ex) who take advantage of the system by saying they can’t work essentially because they can not get along with others. One in particular is on SS is having her 3rd child and plans on having 5 more. These are the people I want to see working. Another says that he can’t work but he can sit on the computer all day long. I know there are jobs you can do from home with a computer and a phone. think of all those people in other countries that we talk to when we have an issue with a product or service. Too many othres think some jobs are beneath their skills. I feel more productive and a part of life by working. I guess there are just some lazy people out there who like the handouts and the government is enabling them.

  • Its obvious that some of you (eg HR2) fail to realize that it is the BUSINESS community that pays for unemployment benefits through the payment of SUTA and FUTA taxes. It is NOT the government or the employees who fund those benefits. What the govt. has done is pass legislation that extends unemployment benefits, and then put the major funding of those extensions on the backs of business owners. These increased SUTA and FUTA taxes then impede the busines community’s ability to create new jobs to absorb the unemployed. The recipients of bailouts were strictly concentrated in the very large corporations and NOT in the small business community where 90% of all individuals are employed. If you want to stimulate hiring, you don’t do it by spending(wasting) money on government-created training programs that are ineffective at best. Notice that the Presidents solutions are for government to develop programs (i.e. counsleing, training, stipends for child care) but do ABSOLUTELY NOTHING to incentivize employers to hire. If you want to really stimulate hiring, take that pot of money Obama is so willing to spend on wasteful inititiatives and give it to businesses in the form of wage subsidies to help offset the cost of hiring the unemployed. Then let these companies provide and pay for their own training programs so that the new employee is best prepared to succeed in that job and earn an opportunity to advance and be more valuable to the employer. Stop this crazy mindset that says government training programs are cost effective and result in job creation – they aren’t and they don’t.

  • MMAN

    I’ll tell you how to stimulate the economy…”BUY AMERICAN…forget the rest!”