Employers appear to be taking advantage of tax incentives that Congress gave them to hire unemployed workers.

From February through June, businesses hired 5.6 million workers who had been unemployed for 60 days or longer, according to an update from the Treasury Department. Companies that hire such workers are exempt from the employer's 6.2 percent share of Social Security payroll taxes through the end of the year. Employers who retain these workers for a year also are eligible for a $1,000 tax credit.

The Hiring Incentives to Restore Employment Act, which was signed into law in March, gives employers "an incentive to hire new workers as soon as possible because the payroll tax exemption expires at the end of 2010," said Alan Krueger, the Treasury Department's chief economist.

Sen. Chuck Schumer, D-N.Y., said he will push Congress to extend the HIRE Act for another six months, however.

James Barba, CEO of Albany Medical Center in Albany, said the act was a factor in his decision to end a hiring freeze at the hospital.

"Frankly, it made my job considerably easier in deciding to hire people again," Barba said.

Albany Medical Center hired 157 employees who meet HIRE requirements. As a result, the hospital has saved hundreds of thousands of dollars in payroll taxes. That's a lot of money, he said, considering the medical center's profit margin usually is 1 percent or less.

The Treasury Department's estimates are based on monthly data from the Bureau of Labor Statistics' Current Population Survey. They do not take into account workers who lose their jobs, which is why the 5.6 million number is much higher than the total number of jobs created in the United States this year.

It also is impossible to determine how many of the 5.6 million people who qualify for HIRE incentives were hired because of these breaks.

If the 5.6 million workers are retained through the end of the year, their employers would be eligible for $6.2 billion in payroll tax savings. That's money businesses can use to invest in new plants and equipment, Krueger said.

Even if only a small percentage of these workers was hired because of the incentives, that's still "a fairly high bang for the buck," he said.

Stimulus funds 750,000 jobs

The economic stimulus bill funded 750,000 jobs during the second quarter of 2010, according to reports filed by recipients of Recovery Act grants and contracts.

That's "the highest total so far," Vice President Joe Biden said, and it "reflects the early impact of our surge in projects across the country as part of Recovery Summer."

Biden said the reports "are another indication that the Recovery Act is on track to create or save 3.5 million jobs overall by the end of this year."