Professional Documents
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the Subsidized Training and
Employment (Step Up) Program
as required by Public Act #121
February 2013
Submitted by
Commissioner Sharon M. Palmer
CT State Department of Labor
Commissioner’s Report Regarding the
Subsidized Training and
Employment (Step Up) Program
Table of Contents
Background Page 1
Program Eligibility Page 1
Executive Summary Page 2
Step Up Program Progress Overview Page 5
Industry Participants – Present and Future Page 7
Education and Outreach Strategies Page 10
Conclusion Page 12
Attachments
Newspaper Articles
Public Outreach Materials
Flyers
Post Cards
Fact Sheet
Web Banners
Promotional Banner
Web Button
E‐mail Newsletter
Press Releases
This is the first of the required STEP‐UP
bi‐annual reports beginning June 30 and ending
December 31, 2012. Future reports will be
prepared and delivered every six months.
Acknowledgements
The state’s Step Up program has benefited from the work of
many dedicated individuals from the Department of Labor’s
Office of Employment and Training, Office of Workforce
Competitiveness, Communications, Veterans’ Services,
Workforce Investment Act (WIA) program, the
agency’s legal and legislative teams, as well as our
Workforce Investment Board partners.
I would also like to acknowledge the following people
for their individual contributions to this document.
Anita Cox
Christopher Caruso
Joseph Criscuolo
Muhammodu Giwa
Marisa Morello
Art Perry
Mark Polzella
Nancy Steffens
Respectfully submitted,
Sharon M. Palmer
Commissioner
Connecticut Department of Labor
Connecticut Department of Labor
Commissioner’s Report Regarding Step Up Program
Background
Growing Connecticut Jobs
As part of Public Act #11‐1 (the result of Connecticut’s October Special Session that focused on
job creation) and later amended by Public Act #12‐1 during a June Special Session that
expanded the program to include a veterans’ employment component, the Subsidized Training
and Employment Program (Step Up) places an emphasis on helping small business to expand,
providing jobs to unemployed workers, and boosting the state’s economy. The statewide
bipartisan initiative, administered by the Connecticut Department of Labor and the state’s five
Workforce Investment Boards, has been highly successful in growing and retaining high‐
quality jobs.
In Connecticut, 94% of the state’s companies employ less than 100 workers, yet these same
businesses employ about 60% of the workforce. With this in mind, the Governor and the
Legislature developed a program that primarily focused on the small business community.
Step Up offers two programs: the Small Business Wage Subsidy Program and the Small
Manufacturer Training Grant Program. Each program offers employer incentives to hire
new employees and create jobs. State bond money for the program is $20 million over two
years – which is split equally between the two programs.
Eligible companies, defined as a small business or manufacturer with not more than 100
employees can apply for one program for each new hire – an employer cannot use multiple
programs for one new hire. There is no limit regarding company size under the program
focused on employing veterans.
Program Eligibility
Small Business Wage Subsidy Program Eligibility
Guidelines for Workers
• Unemployed prior to hire
• Resident of municipality that has an unemployment rate equal to or higher than the state
rate as of September 1, 2011, or resides in a town with a population of 80,000 or more
• Adjusted family income equal to or less than 250% of the federal poverty level
• New employee does not mean a person employed on a temporary or seasonal basis by a
retailer
Guidelines for Employers
• Small business or manufacturer with not more than 100 full‐time workers (no size limit
under the Unemployed Armed Forces Member Subsidized Training and Employment
Program)
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Connecticut Department of Labor
Commissioner’s Report Regarding Step Up Program
• Registered to conduct business for at least 12 months and has operations in Connecticut
• In good standing with the payment of state and local taxes
Subsidized Wage Program Incentives
A wage subsidy for new hires (up to $20 per hour and can be reimbursed up to $12,000 –
excludes benefits) is provided over a 180‐day period. The subsidy, which begins at 100
percent the first month, cascades down on subsequent months following this formula:
Month 1 – 100%
Month 2 – 75%
Month 3 – 75%
Month 4 – 50%
Month 5 – 50%
Month 6 – 25%
Small Manufacturer Training Grant Program Eligibility
Guidelines for Workers
• Unemployed prior to hire
Guidelines for Employers
• Small manufacturer with not more than 100 full‐time workers
• Has been registered to conduct business for at least 12 months and has operations in CT
• Training must take place at the business site
• Business must be in good standing with the payment of state and local taxes
Small Manufacturer Training Grant Program Incentives
Training grants up to $12,500 for new hire for six months. Training must be held on‐site
and the grant can also be used to subsidize wages, although it cannot exceed salary. The
grant, which provides $2,500 the first month, cascades down on subsequent months
following this formula:
Month 1 ‐ up to $2,500
Month 2 ‐ up to $2,400
Month 3 ‐ up to $2,200
Month 4 ‐ up to $2,000
Month 5 ‐ up to $1,800
Month 6 ‐ up to $1,600
The Step Up program was expanded in June 2012 to include the Unemployed Armed Forces
Member Subsidized Training and Employment Program. This program, similar to the Small
Business Wage Subsidy program, is available to eligible employers of any size that hire an
unemployed veteran. Veterans must have been a member of the Armed Forces or any reserve
component of these armed forces, or a state National Guard; called to active service in support
of Operation Enduring Freedom (Afghanistan) or military operations against Iraq; and
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Connecticut Department of Labor
Commissioner’s Report Regarding Step Up Program
honorably discharged after serving at least 90 days in a combat zone, or earlier if the
individual was separated from service due to a service‐connected disability.
An additional $10 million in state funding was approved by the State Bond Commission for this
portion of the program. The first biannual report for the Unemployed Armed Forces Member
Subsidized Training and Employment program is due July 15 starting in 2013. Therefore, data
for this program is not represented here.
This report provides Step Up data for the Small Business Wage Subsidy Program and the Small
Manufacturer Training Grant Program from program from February 12, 2012 through January
14, 2013. This includes available data on:
1. The number of small business participants in the Step Up Program and the general
categories of these businesses.
2. The number of small manufacturers that participated in the Step Up Program and the
general categories of these manufacturers.
3. The number of individuals that received employment as a result of Step Up.
4. The most recent estimate of the number of Step Up jobs created or maintained.
Executive Summary
Step Up is achieving what it was intended to do – getting unemployed people in Connecticut
back to work in jobs that offer good paying positions and helping employers grow their
workforce.
Although not long in existence, the program has served as an important economic stimulus. Of
the 1,102 individuals hired, 612 of those were reported by the hiring companies as new jobs
created specifically as a result of Step Up program incentives. This represents a 55% job
creation rate directly attributable to the Step Up program.
With an average wage of $14.23 an hour, positions include Project Engineers, Account and
Production Managers, Assembly Supervisors, CNC Operators, Graphic Designers, Welders, Tool
Makers, Press Operators, Process Engineers, Operations Directors, Bookkeepers, Accounting,
Masons, Glaziers, Engine Builders, Insurance Agents, Dispatchers, and Assistant Solar
Installers.
Currently, approximately 80 percent of those hired through the program continue to be
employed at the companies that received the subsidies and 245 employees have completed six
months of work and are no longer subsidized. As a result of its early successes, the program
has been extended for an additional year, to June 2014.
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Connecticut Department of Labor
Commissioner’s Report Regarding Step Up Program
Step Up At a Glance
Number of Small Business Participants 206
Number of Small Manufacturer Participants 171
Total Number of Individuals Hired 1102
Small Manufacturer Hires 601
Small Business Hires 501
Estimated Number of New of Jobs Created 612
Average Hourly Wage $14.23
Average Employer Reimbursement $11,383.15
Year‐to‐Date Payments $4,291,449
Dollars Obligated $10,104,000 (as of 11/2012)
By Regional Workforce Investment Board
North Central
Total Number of Individuals Hired 265
Small Manufacturer Hires 194
Small Business Hires 71
Estimated Number of New of Jobs Created 124
Eastern
Total Number of Individuals Hired 212
Small Manufacturer Hires 109
Small Business Hires 103
Estimated Number of New of Jobs Created 79
South Central
Total Number of Individuals Hired 266
Small Manufacturer Hires 133
Small Business Hires 133
Estimated Number of New of Jobs Created 163
North West
Total Number of Individuals Hired 176
Small Manufacturer Hires 116
Small Business Hires 60
Estimated Number of New of Jobs Created 98
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Connecticut Department of Labor
Commissioner’s Report Regarding Step Up Program
South West
Total Number of Individuals Hired 183
Small Manufacturer Hires 49
Small Business Hires 134
Estimated Number of New of Jobs Created 148
Step Up Program Progress Overview
Note: program participation numbers through November 2012
1. Small Businesses Participants
The following chart provides a snapshot of the types of industries within the Small Business
category participating in the Step Up program. The industry types are defined by the North
American Industry Classification System (NAICS).
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Within the Small Business category, Specialty Trade Contractors represents the largest amount
of participating companies with 33. This category includes plumbing, painting, and electrical
work involved in building construction. This is followed by companies within the Professional,
Scientific, and Technical Services industry with 24 participants. Companies associated with
this type of industry include accountant offices, tax preparation services, legal practitioners
and engineering services.
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Connecticut Department of Labor
Commissioner’s Report Regarding Step Up Program
Those rounding out the top industry types in the Small Business category are noted in the
following chart:
# of
SMALL BUSINESSES: TOP INDUSTRY TYPES Participating In Step Up Firms
Repair and Maintenance 14
Example: Mechanical and electrical repair and maintenance services for
automotive vehicles.
Construction of Buildings 14
Example: Remodeling general contractors, for‐sale remodelers, remodeling design‐
build firms, and remodeling project construction management firms.
Administrative & Support Services 12
Example: Establishments primarily engaged in providing a range of day‐to‐day
office administrative services, such as financial planning; billing and recordkeeping
2. Small Manufacturer Participants
The following chart provides a snapshot of the types of industries within the Small
Manufacturers category participating in the Step Up program. As with the Small Business
category, industry types are defined by the NAICS.
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Industries
Industries
Within the Small Manufacturer category, Fabricated Metal Products represents the largest
amount, with 50 companies in this sector. Types of companies found in this group include
machine shops primarily engaged in machining metal and plastic parts, and parts of other
composite materials on a job or order basis. The next largest sector was Miscellaneous
Manufacturing with 20 companies. Types of companies in this group include sign
manufacturing, office supplies manufacturing, and furniture manufacturing.
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Connecticut Department of Labor
Commissioner’s Report Regarding Step Up Program
Those rounding out the top industry types in the Small Manufacturers category are noted in
the following chart:
# of
SMALL MANUFACTURERS: TOP INDUSTRY TYPES Participating In Step Up Firms
Machinery Manufacturing 18
Example: Tool and die shops, primarily engaged in manufacturing special tools and
fixtures, such as cutting dies and jigs.
Transportation Equipment 10
Example: Manufacturers of aircraft engines and engine parts.
Computer Electronics 8
Example: Manufacturers of automatic controls and regulators for applications, such
as heating, air‐conditioning, refrigeration and appliances.
3. Individuals Hired/Receiving Employment
An extensive outreach and education campaign, detailed later in this report, has been utilized
to connect with employers and job seekers who may be interested in taking part in the Step Up
program. Regional Step Up coordinators hired through the state’s five Workforce Investment
Boards assist with outreach and promotion of the program, and to process employer and job
seeker application forms and determine eligibility. The coordinators also assist employers by
locating potential employees suitable for their specific job openings. The coordinators track
the number of individuals hired, track the progress of the new employee, and determine if the
employee has been retained after the six‐month period. Their goal is to facilitate the hiring
process by meeting the workforce needs of the employer, provide quality employment to job
seekers, and promote the program through one‐on‐one meetings, public events, media
interviews and distribution of program information developed by the Department of Labor.
4. Jobs Created or Maintained
Of the 1,102 individuals hired, employers reported that over half of those (612) were needed
to fill new jobs created specifically as a result of Step Up program incentives. This represents a
55% job creation rate directly attributable to the Step Up program. The Regional Step Up
coordinators track this statistic by entering the employer’s response to the question on the
agreement form that all companies must complete: “Would you (employer) have hired this
employee without the Step Up incentive?”
Industry Participants – Present and Future
The following tables provide an indication of the types of industries currently taking advantage
of the Small Business and Small Manufacturer Step Up programs. In addition to a brief
description of the specific industry, these tables also include the number of companies, as well
as the assigned NAICS code. This information lets us know what companies have found value
in Step Up incentives – either the wage subsidy or the training grant – and can be used to
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Connecticut Department of Labor
Commissioner’s Report Regarding Step Up Program
potentially target further program awareness to these types of businesses, as well as outreach
to related industries.
Small Business Participants (by Industry Types)
Specific
Industry # of
Company Description Code Firms
General Automotive Repair Establishments primarily engaged in 811111 10
providing (1) a wide range of mechanical and electrical repair and
maintenance services for automotive vehicles, such as passenger cars,
trucks, and vans, and all trailers or (2) engine repair and replacement.
Framing Contractors Establishments primarily engaged in structural 238130 6
framing and sheathing using materials other than structural steel or
concrete. The work performed may include new work, additions,
alterations, maintenance, and repairs.
Insurance Agencies and Brokerages ‐ Establishments primarily 524210 5
engaged in acting as agents (i.e., brokers) in selling annuities and
insurance policies.
New SingleFamily Housing Construction (except for‐sale builders) ‐ 236115 4
General contractor establishments primarily responsible for the entire
construction of new single‐family housing, such as single‐family
detached houses and town houses or row houses where each housing
unit (1) is separated from its neighbors by a ground‐to‐roof wall and (2)
has no housing units constructed above or below. Industry includes
general contractors responsible for the on‐site assembly of modular and
prefabricated houses. Single‐family housing design‐build firms and
single‐family construction management firms acting as general
contractors are included.
Residential Remodelers ‐ Establishments primarily responsible for the 236118 4
remodeling construction (including additions, alterations,
reconstruction, maintenance, and repair work) of houses and other
residential buildings, single‐family, and multifamily. Included in this
industry are remodeling general contractors, for‐sale remodelers,
remodeling design‐build firms, and remodeling project construction
management firms.
Plumbing, Heating, and AirConditioning Contractors ‐ 238220 4
Establishments primarily engaged in installing and servicing plumbing,
heating, and air‐conditioning equipment. Contractors in this industry
may provide both parts and labor when performing work. The work
performed may include new work, additions, alterations, maintenance,
and repairs.
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Connecticut Department of Labor
Commissioner’s Report Regarding Step Up Program
Specific
Industry # of
Company Description (continued) Code Firms
All Other Specialty Trade Contractors Establishments primarily 238990 4
engaged in specialized trades (except foundation, structure, and building
exterior contractors; building equipment contractors; building finishing
contractors; and site preparation contractors). The specialty trade work
performed includes new work, additions, alterations, maintenance, and
repairs.
Other Accounting Services ‐ Establishments (except offices of CPAs) 541219 4
engaged in providing accounting services (except tax return preparation
services only or payroll services only). May also provide tax return
preparation or payroll services. Accountant (except CPA) offices,
bookkeeper offices, and billing offices are included in this industry.
Home Health Care Services ‐ Establishments primarily engaged in 621610 4
providing skilled nursing services in the home, along with a range of the
following: personal care services; homemaker and companion services;
physical therapy; medical social services; medications; medical
equipment and supplies; counseling; 24‐hour home care; occupation and
vocational therapy; dietary and nutritional services; speech therapy;
audiology; and high‐tech care, such as intravenous therapy.
Child Day Care Services ‐ Establishments primarily engaged in 624410 4
providing day care of infants or children. Generally care for preschool
children, but may care for older children when they are not in school and
may also offer pre‐K educational programs.
FullService Restaurants (U.S. industry) ‐ Establishments primarily 722511 4
engaged in providing food services to patrons who order and are served
while seated (i.e., waiter/waitress service) and pay after eating. May
provide this type of food service to patrons in combination with selling
alcoholic beverages, providing carryout services, or presenting live non‐
theatrical entertainment.
Machine Shops – Establishments primarily engaged in machining metal 332710 19
and plastic parts and parts of other composite materials on a job or
order basis. Generally machine shop jobs are low volume using machine
tools, such as lathes (including computer numerically controlled);
automatic screw machines; and machines for boring, grinding, and
milling.
Precision Turned Product Manufacturing ‐ Establishments known as 332721 7
precision turned manufacturers primarily engaged in machining
precision products of all materials on a job or order basis. Generally
precision turned product jobs are large volume using machines, such as
automatic screw machines, rotary transfer machines, computer
numerically controlled (CNC) lathes, or turning centers.
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Connecticut Department of Labor
Commissioner’s Report Regarding Step Up Program
Specific
Industry # of
Company Description (continued) Code Firms
Electroplating, Plating, Polishing, Anodizing, and Coloring 332813 6
Establishments primarily engaged in electro‐plating, plating, anodizing,
coloring, buffing, polishing, cleaning, and sandblasting metals and metal
products for the trade. Included in this industry are establishments that
perform these processes on other materials, such as plastics, in addition
to metals.
Aircraft Parts and Auxiliary Equipment Manufacturing ‐ 336413 5
Establishments primarily engaged in (1) manufacturing aircraft parts or
auxiliary equipment (except engines and aircraft fluid power sub‐
assemblies) and/or (2) developing and making prototypes of aircraft
parts and auxiliary equipment. Auxiliary equipment includes such items
as crop dusting apparatus, armament racks, inflight refueling equipment,
and external fuel tanks
Special Die and Tool, Die Set, Jig, and Fixture Manufacturing ‐ 336514 4
Establishments, known as tool and die shops, primarily engaged in
manufacturing special tools and fixtures, such as cutting dies and jigs
Sign Manufacturing Establishments primarily engaged in 333514 4
manufacturing signs and related displays of all materials (except
printing paper and paperboard signs, notices, displays).
Education and Outreach Strategies
The Labor Department and its partners have worked together to develop a comprehensive and
successful outreach campaign to educate and inform employers and jobseekers about the
opportunities offered under the Step Up programs.
Soon after the Step Up program was approved, the agency created a website to help promote
the program. The site can easily be found on the homepage of the Labor Department’s site, as
well as that of the Office of Workforce Competitiveness. To promote the site in the best way
possible, the agency developed a stylized “button” on its website to highlight the program. This
graphic design element has been incorporated into all marketing products, including electronic
newsletters, media articles, fact sheets, flyers, and employer and jobseeker handouts that can
be customized by the regional Step Up coordinators.
The agency partners with employers, legislators and the Governor to hold media events to
showcase Step Up success stories with the goal of getting out the word via television,
newspaper and radio coverage of these events. In many cases, the media events feature newly‐
hired employees, as well as the employer – with both providing real‐life testimony regarding
how the program has helped create jobs.
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Connecticut Department of Labor
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Soon after Step Up began, Governor Malloy held a press event in Bloomfield at Street Fleet
Mechanics to help kick‐off the new program and celebrate the fact that 45 employers had
already hired new employees under the program. State Sen. Eric Coleman and State Rep. David
Baram, who both represent Bloomfield, were also at the event to recognize Street Fleet (the
company had hired several employees under Step Up and planning to expand) and to promote
the incentives available to employers and the opportunities for jobseekers.
This past November, the Governor held a press event at the Bridgeport CTWorks Career Center
to announce that the Step Up program had been expanded to include returning military
personnel. The new armed forces component, known as the Unemployed Armed Forces
Member Subsidized Training and Employment Program, has also been advertised with flyers,
web banners, press releases, radio interviews, newspaper articles and through the agency’s
Office for Veterans’ Workforce Development.
Connecticut’s Senators and Representatives also held press events, at sites that included
Middletown, New Haven, North Branford, Norwalk and Watertown, to highlight the program
and help inform their communities of the opportunities offered by Step Up. These events have
been instrumental in getting out the word about this job creation progrms and the agency
looks forward to continuing this important partnership.
The agency played an important role in an employer seminar held in the fall of 2012 at the
Ansonia Armory. The free event, which attracted more than 185 attendees, highlighted the
benefits of Step Up as well as related wage and tax incentives. The Greater Valley Step Up
Conference was hosted by Lt. Governor Nancy Wyman along with co‐hosts State Rep. Linda M.
Gentile, State Sen. Joseph Crisco and the Valley’s State Delegation. Based on the success of the
conference, additional employer events are scheduled for 2013.
The following is a partial listing of the successful outreach strategies and materials that have
been planned and/or developed to market the Step Up program. (See Attachments section for
samples of public education and outreach materials).
Well‐visited website with employer and job seeker inquiry forms, fact sheets, regional
coordinator contact information, media articles, press releases, and radio interviews:
http://www.ctdol.state.ct.us/OWC/StepUp/StepUp.htm. The site averages more than
800 visits per month
Series of fact sheets and flyers – available in both print and electronic format
Promotional “business cards” designed to attract potential employers and jobseekers
Electronic newsletters to approx. 10,000 employers and state’s Chambers of Commerce
Mailed newsletter to the state’s approx. 95,000 employers
Localized press events with area Legislators, Step Up employers and Step Up hires
Regional employer informational seminars co‐hosted by State Legislators
Outreach articles provided to United Way Infoline 211 and Legislators
Interviews with Legislators for local cable TV stations
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Connecticut Department of Labor
Commissioner’s Report Regarding Step Up Program
Periodic press releases and outreach to media, resulting in interviews with local radio
and TV stations, and articles in newspapers, business journals and trade publications
Advertising banner and information displayed at job fairs, conferences, media events
Outreach and employer meetings by Workforce Investment Board Step Up Regional
Coordinators
Presence at job fairs, business events and seminars to promote Step Up, including
Business Expos, Society for Human Resource Managers, and the CT Business and
Industry Association
Information session, sponsored by the International Brotherhood of Carpenters;
included building trade representatives and industry contractors, allowed the agency to
detail the Step Up program
Advertisements in business journals and materials provided at employer events
Social media outreach on Face book and Twitter
Outreach via the CTWorks Career Centers and Office for Veterans’ Workforce
Development to employers and jobseekers
The Labor Department and its partners will continue to actively promote the program and its
benefits and plan to continuously improve upon the comprehensive outreach and education
campaign that has been developed.
Conclusion
As of January 14, 2013, approximately $10,104,000 million has been obligated through the
Step Up program in support of the 1,102 participants hired. This has also allowed 377
employers statewide to expand their business with the average employer reimbursement
amounting to just over $11,000 per new employee.
The program continues to attract new employers, as well as those that have used Step Up for
several new hires. Small businesses of 100 employees or fewer are real job creators in
Connecticut, employing more than 60 percent of the state’s total workforce. The Step Up
Program supports the expansion and growth of small business in our state, and the creation of
jobs for unemployed workers by offering wage subsidies and training grants that allow
Connecticut to invest in its workforce and the local business community.
As additional employers participate in the program, the Labor Department and its workforce
partners will continue to place an emphasis on the creation of quality jobs, employer
expansion, and the strengthening of Connecticut’s economy.
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