Some state programs are helping companies scale back hours rather than eliminating jobs. But unemployment and "underemployment" are worsening; one retailer says it doesn't expect things to bounce back for a year.
Background sounds
>> Many businesses are trying desperately to hang on to workers. At Tri-Star Industries a metal working factory in Connecticut owner Andrew Nowakowski assumed spelling laid off 6 of his 36 employees and was going to cut more until the state came to the rescue.
>> The program allows us to maintain our full time work force intact.
>> Under Connecticut's Work Share program Nowakowski has cut back his workers to 3 and 4 day weeks but the state makes up half of their lost wages with unemployment funds. 17 other states have similar programs.
>> If I didn't have this I'd probably be trying to get on the welfare line.
>> But rising unemployment has retailers hurting. At stride rite and Payless Shoes CEO Matthew Rebell assumed spelling says he doesn't expect to see a rebound for at least another year.
>> There's still 1 out of every 10 people looking for a job. So you can do whatever you want with Wall-Street numbers, Main Street they're still looking for work and until we get them back working they're not gonna go out and spend.
>> And the picture gets worse when you add those people who settle for part time work or given up looking. The so-called underemployed rate is now a record 16.5%. Katie.
>> So some very unwelcome news tonight right Anthony?
>> Yeah hopefully it's 1 month blip.
>> Alright Anthony Mason, thank you.
==== Transcribed by Automatic Sync Technologies ====
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