Thursday, December 13, 2007
State unemployment rates fall to record low
The governor’s office announced Friday that Alabama’s unemployment rate dropped to a “record low” from 3.7 percent in September to 3.1 percent in October, which is below the national unemployment rate of 4.7 percent.
November 17, 2007
The governor’s office announced Friday that Alabama’s unemployment rate dropped to a “record low” from 3.7 percent in September to 3.1 percent in October, which is below the national unemployment rate of 4.7 percent.
A year ago, the state’s unemployment rate was reportedly 3.6 percent.
“This shows our economy is resilient,“ Gov. Bob Riley stated in a press release.
His office reported a number of pro-growth tax incentives proposed during the 2007 legislative session, which included, “Making Our Tax Code Fairer for Middle Class Families,“ “Creating Jobs in Rural Alabama,“ “Making Health Insurance More Affordable” and “Helping the Unemployed to Become Employed.“
“The recent announcement by Gov. Riley naming various incentives to help unemployment in Alabama are great initiatives,“ said John Wild, president of the Auburn-Opelika Tourism Bureau. “It will take time to evaluate which measures work more effectively for our area. ‘Helping the unemployed to become employed’ is one program that we hope will directly help us and relieve some of the competition for our local work force.“
Wild said that a Lee County Workforce Development committee has been working the past six months to assist local businesses and industries to conquer short-term labor shortages and enhance careers for people in the future. He credited both mayors and both chambers for spearheading meetings that have evaluated local needs.
“It is not a quick or temporary fix but a longer term approach that we believe will help develop a work force for the future and provide quality salaries, wages and benefits for our local employees,“ Wild said.
In Riley’s proposed tax incentives for small businesses, the proposal states, “The tax incentive would allow small business owners to deduct from their state income taxes twice the amount they pay for health insurance premiums. The deduction would be available to businesses with fewer than 25 employees. Employees of small businesses could also deduct twice the amount they contribute to premium payments; this deduction would make employer-sponsored health insurance more affordable and encourage greater employee participation. To qualify for the deduction, an employee must have an adjusted gross income of less than $50,000. This measure represents a focused plan to decrease the number of uninsured in Alabama by increasing the availability and affordability of employer-sponsored health insurance among small businesses. Moving the uninsured into employer health plans ultimately lowers health care costs borne by the taxpayers.“
Both the Auburn and Opelika chambers of commerce have addressed the importance of affordable health insurance for small business employees. During chamber seminars, local small business owners have remarked on the high cost of offering health insurance to employees.
“In 2007, the Auburn Chamber of Commerce’s Governmental Affairs committee sent a message to Gov. Riley in support of House Bill 278, as well as sent a mailer to its 850-plus member businesses in an effort to encourage the state legislators to approve HB 278 included in the governor’s package of tax incentives,“ said Lolly Steiner, president of the Auburn Chamber of Commerce. “We know that our small businesses want to provide their employees with quality health insurance, but we also know that they would appreciate help. We are relieved to know that the governor is still committed to supporting the needs of small business owners as their challenges to do business in Alabama grow. I am sure our board and members will again join together in support of this package in the upcoming legislative session.“
Wendi Huguley Routhier, president of the Opelika Chamber of Commerce, said the chamber will continue to support legislation that allows local small business owners to offer an attractive benefits package to full-time employees.
“Last February the Opelika Chamber Board of Directors voted to support Gov. (Bob) Riley’s proposal to allow small business employers to deduct from their state taxes twice the amount they pay for health insurance premiums while allowing employees to do the same on their personal income taxes,“ Routhier said. “The chamber has not changed its stance. We strongly believe that affordable health care insurance options are imperative for our member businesses to compete for the most qualified employees, thus contributing to the overall economic success of our area.“
Wild, who has worked in the hospitality industry for more than 20 years, pointed out the need for a reliable workforce.
“The Hospitality industry in Auburn and Opelika is starving for help; you can’t drive past most any cluster of restaurants without seeing ‘help wanted’ signs, and they are getting larger and larger,“ Wild said. “This shows the intensity or frustration owners and operators have in the area while having great products, an abundance of customers but limited in their ability to hire and train staff to properly serve their clientele. Lodging properties in Auburn and Opelika are under the same pressure, you just don’t see signs posted on their front lawns.“
For more information, visit http://www.governor.state.al.us., http://www.auburn-opelika.com, http://www.auburnchamber.com or http://www.opelika.com.