Short-time compensation (STC), also known as work sharing, is an optional program within some state unemployment insurance systems. Under STC, employers experiencing a temporary reduction in business lower the average hours of employees in lieu of laying off workers. Employees whose hours are lowered receive Unemployment Insurance (UI) benefits in proportion to the reduction in their hours, while businesses retain valued employees and avoid future recruitment and training costs.

This study reports the results of a demonstration project in Iowa and Oregon to evaluate the effectiveness of informational campaigns designed to increase employer awareness and use of STC. The study's main findings support the hypothesis that lack of awareness of the STC option is a major barrier to STC take-up and that informational campaigns can significantly increase awareness and use.

To place the study's findings in context, the evaluation also collected evidence on other factors potentially affecting STC use. These descriptive findings indicate:

• A large majority of prior users have strong, positive views of the STC program and do not find the costs of participating in STC a barrier, suggesting scope for significant expansion in program use in the future.
• Outdated IT systems may be a significant barrier to states' ability to expand the STC program.