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News Release

Labor Department reports Short-Time Compensation saved 570K jobs, provided 22 states with $266M in reimbursements from 2012-2015

Programs give employers alternative to layoffs, helps keep workers when economy falters

WASHINGTON – The U.S. Department of Labor reports that Short-Time Compensation programs saved more than 570,000 jobs and provided $266 million in federal benefit reimbursements to 22 participating states from 2012 to 2015. The findings are part of a progress report by the department’s Employment and Training Administration.

STC programs provide employers an alternative to layoffs during times of economic hardship, such as reducing employees’ hours of work while supplementing a portion of the lost wages through unemployment insurance benefits. The programs also help employers keep skilled workers, and reduce the costs associated with layoffs and new hires caused by the ebbs and flows of the economy.

“Short-time compensation programs are good for local communities, states and the national economy as they give employers an alternative to layoffs and keep skilled workers in place when business slows,” said Assistant Secretary for Employment and Training Portia Wu. “For employers who want to keep valued workers and protect their bottom line, these programs provide flexibility needed to withstand tough business cycles and emerge with a strong, dedicated workforce.”

Supported by the Middle Class Tax Relief and Job Creation Act of 2012, the department offered states financial incentives to adopt STC programs and better equip employers and workers to compete in the global economy. In addition to the federal reimbursement of benefits provided to 22 states, 16 states received $46.1 million in grants to support STC program implementation and outreach efforts to employers.   

The department continues to work collaboratively with states to help employers understand the benefits of these programs, and to encourage additional states to take the appropriate steps in implementing short-time compensation.

To read the STC Report, visit

For more information about the STC program, visit

Employment and Training Administration
April 6, 2016
Release Number