What Is Subsidized Employment?

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When you need a job, but can't find one or don't have skills or experience, a government-subsidized job that trains you as you go may just be the answer. Federal and state governments often have wage subsidy programs that help employees who need jobs and training and employers who need people to work. The program operates by subsidizing a portion of the employee's hourly wage for a specific period, while the worker receives training. The program helps businesses afford to hire and train employees, helps employees obtain work and helps the government as more people become self-sufficient by gaining job experience and becoming employable.

How Subsidy Programs Work

Wage subsidy programs, which have been created during the country's past few decades, help out-of-work employees, those on government support or unemployment programs, who could work, but don't have the skills or experience needed for specific jobs. These programs, usually funded by the government but managed at the state level, have money to subsidize a new employee's salary while the worker undergoes training. This helps employers who don't necessarily have the financial ability to pay employees unskilled workers while they are learning the job or gaining experience.

Employer Reimbursements

Employers receive reimbursements for a portion of the wages paid to the employee after submitting documentation to the state agency that administers the federal funds. Employers who participate in the wage-subsidy programs, must carry workers' compensation insurance, which is not covered as a reimbursable item under the program. The length of time the employer is reimbursed is specific to the program, generally lasting up to six months in some situations.

Employee Wage and Benefits

Employees in the program are paid the same wages or salary as well as benefits as other workers in unsubsidized programs and have the same opportunities for advancement. These employees are hired to work 35 to 40 hours per week when chosen for a full-time position. If the employer has an regular full-time position that becomes available, the subsidized employee must be given preference after completing the probationary or training period.

Job Applicants

Job applicants who cannot find employment may qualify under a government subsidized program. The applicant's employment case manager screens and matches the applicant with a suitable employer and program. The program may also suit part-time, seasonal or minimum-wage workers who have not found full time or sufficient work to meet their income requirements. The program offers people an opportunity to increase their job skills and gain experience for better wage and job opportunities.

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