Creating Jobs in the Private Sector: A Comparison of the NC Senate and House Proposals

June 2010

Key Findings:

1 – North Carolina policymakers should be offering bold proposals to create jobs to
replace the 6.4 percent of total non-farm employment lost since the start of the
recession.

2 – Proposals in the Senate and House to stimulate growth by targeting small
business will do little to create jobs because of fundamental problems with their
design. Across the board tax cuts are very unlikely to generate new investments
especially in the form of expanded payroll. And while tax credits provide a
more targeted tax cut, the limited size of the credit and caps on available funds
for the program are unlikely to motivate firms to expand.

3 – Growth of our state’s workforce has continued at a steady clip. Without the
implementation of policies to address the demand-side of the labor equation,
long-term unemployment will continue to be a drag on our economic recovery.

4 – Lawmakers should consider effective direct job creation tools, such as a Small
Business Job Growth grant program.