NEW YORK, NY July 06, 2009 —In light of the city's nine percent unemployment rate, New York State Labor Commissioner Patricia Smith is encouraging city businesses to avoid laying off workers, and instead look into the "Shared Work Program."

REPORTER: If a business is struggling, the program allows an employer to reduce staff hours. In turn, those workers are eligible for partial unemployment benefits. Smith says it's a win for employers, too.

SMITH: When there is the end of the downturn and business actually starts to pick up again, you have your workforce right there. You just increase their hours again. You don't have to rehire, you don't have to retrain, you don't have to re-orient.

REPORTER: In 2008, only 33 city businesses participated in the "Shared Work Program." Between January and May of this year, more than 200 companies enrolled.