Comp News – Maine is expanding its back-to-work bonuses for workers who find employment this summer after very few people took advantage of the benefits in the first two weeks of its availability.

The “Back to Work” program, announced in mid-June, offered one-time payments of $1,500 to unemployed workers who begin new full-time jobs. It aimed to provide an extra incentive at a time when employers argued that high benefit amounts were keeping people from rejoining the workforce, although advocates and labor groups contest that claim and a recent New York Times analysis found states that cut expanded federal benefits did not see stronger job growth.

 

The Maine Department of Labor initially indicated the program could reach up to 7,500 people. But only about 100 employers applied for benefits on behalf of about 300 workers in the first two weeks, according to state data. Just over a fifth were in the accommodations and food sector, one in which employers have struggled to hire in recent months.

Initially, the state planned to decrease the bonus payment amount to $1,000. Now it will stay at $1,500 through July 25. Additionally, the state is adding a $750 payment option for select workers who find part-time employment.

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