POST FALLS - As the economy slowly begins to show signs of recovery, there's help for businesses with Idaho's new Hire One tax credit.

Idaho Department of Labor Director Roger Madsen kicked off his four-stop statewide listening session tour in Post Falls on Tuesday, touting the sliding-scale income tax credit for employers passed during the last Legislature.

"We think that this will be a very fine economic development tool," Madsen told about 40 business leaders and government officials at the meeting.

The credit rewards employers that are increasing their payrolls as the economy begins to recover.

The credit is for employers who hire new employees on or after April 15 and by March 31, 2013. Employers qualify when they pay $12 an hour or more plus benefits for jobs created and performed in counties with an annual average unemployment rate of at least 10 percent, and $15 an hour or more in counties with lower rates.

The amount of the credit is also based on an employer's unemployment insurance tax rating and the number of new employees hired.

Positive-rated employers are eligible for 6 percent of gross wages; standard-rated employers receive 4 percent; and negative-rated firms receive 2 percent.

Analysts estimate the jobs eligible for the tax credit will generate $25.3 million in new tax revenue, which will offset its $7.6 million estimated annual cost to the general fund.

How many employers will be able to utilize the credit is difficult to tell.

When asked how many of the firms are hiring in the near future, only John Chambers of Ground Force Manufacturing raised his hand. The mining equipment manufacturer is expanding with its new venture called UnderGround Force that will make products for underground mining firms.

During the listening session, Robert Ketchum of The Ketchum Group, which provides customized job training services, told Madsen that there's an interest in work readiness certification for high school graduates in North Idaho.

"We've talked a lot about it, but it has not gotten a lot of traction," Ketchum said.

Vicki Isakson, who manages Labor's regional office in Post Falls, said the topic has been researched, but it will likely continue to be tabled due to declining budgets.

"Funding is necessary for it, but it's hard to get traction for it with this economy," Isakson said.

Other business leaders said it's important to keep graduates in the area, teach them technical skills and make sure students are aware of the agency's programs.

Alivia Body, the regional labor economist, said there are signs of life in the economy. Kootenai County's jobless rate was 11.1 percent in April, down from 11.2 percent in March.

There were 2,065 job openings in North Idaho from March to May. About 29 percent were listed in leisure and hospitality, 19 percent in administrative and support services and 13 percent in health care.

"It's been rough, but it's looking better," Body said. "The worst times appear to be over."

Body said May's numbers should improve since seasonal sectors such as landscaping and logging have gotten off to a slow start with the wet spring.

Madsen said the number of phone calls to Labor's offices have decreased from about 900,000 during the peak of the recession to 550,000 in May.

He said none of the department's offices are slated to close and stand ready to assist businesses with training, testing and hiring.

"We want to be a part of your HR department if you allow us," Madsen said. "Our goal ... is to maintain a top quality labor force and then link those workers to employers needing skilled people to keep their businesses prosperous."