Area Trends In Employment and Unemployment U.S. Department of Labor Employment and Training Administration JANUARY 1992 Area Trends in Employment and Unemployment provides information on labor surplus areas as Classified by the U.S. Department of Labor The purpose in classifying labor surplus areas is to put the Federal Government's prucurement contracts into areas of high unemployment Employers located in these labor surplus areas are eligible for preference in bidding on Federal! contrac For technical assistance, or for answers to questions concerning the procedures for classifying labor surplus areas, write to U.S. Department of Labor Employment and Training Administration (TEESS) 200 Constitution Avenue, N.W Washington, D.C. 20213 Telephone: (202) 535-0185 Employers located in labor surplus areas and interested in bidding on Federal contracts should consult the Commerce Business Daily which lists Federal contract requirements and indicates those to be awarded under preference procedures The Business Service Centers of the General Services Administration are located throughout the country and can provide additional information concerning Federal contracting opportunities. The locations of these Centers are provided at the end of this publication Subscriptions to Area Trends in Employment and Unemployment may be purchased from Superintendent of Documents U.S Government Printing Office Washington, 0.C. 20402 n price for 12 monthly issues $47.50 foreian 54.06 foreign Make checks or money orders payable to endent of Documents MasterCard and VISA accepted Charge orders may be telephoned to the GPO at (202) 783-3238 from 8:00 a.m. to 4:00 o.m Monday—Friday (except holidays) Area Trends In Employment and Unemployment U.S. Department of Labor Employment and Training Administration United States Employment Service JANUARY 1992 Eligible Labor Surplus Areas for Bidding On Federal Contracts Background Procedures for Classifying Labor Surplus Areas Newly Classified Labor Surplus Areas Listing of Labor Surplus Areas Eligible Labor Surplus MSA’s and PMSA’s Business Service Centers of the General Services Administration For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 Eligible Labor Surplus Areas for Bidding On Federal Contracts Background Employers located in labor surplus areas, as Classified agreed-upon targets and to submit a report to the by the Department of Labor, can be given preference in President every 6 months concerning the progress of bidding on Federal procurement contracts. The purpose each agency in meeting its goals. These directives in providing such preference is to help direct the were later incorporated in Executive Order 12073 which government's procurement dollars into areas where was signed on August 16, 1978. people are in the most severe economic need, i.e., areas with the highest rates of unemployment. Public Law 96-302 (“Small Business Administration’) was enacted on July 2, 1980 and authorized the labor The concept of channeling Federal procurement surplus area program on a permanent basis. Like P.L. contracts into high unemployment areas dates back to 95-89, the Act authorized Federal agencies to set-aside the early 1950's. At that time, during the Korean contracts when there is a reasonable expectation that conflict, there was concern among Government officials offers will be obtained from a sufficient number of firms that high unemployment rates and low utilization of to ensure that awards are made at reasonable prices. plants and equipment in some areas would lead to P.L. 96-302 also altered the priority of awards under the erosion of the mobilization base and adversely affect small business and labor surplus area programs, and the Nation’s production capability. There was also established a new priority category of partial set-asides concern that the cost of constructing new plants and for small businesses located in labor surplus areas. relocating workers would cause an unnecessary drain on the Nation's resources. Section 1-103 of Executive Order 12073 assigned to the Department of Labor the responsibility for The Office of Defense Mobilization studied this problem Classifying labor surplus areas. This represented a and in February 1952 issued Defense Manpower Policy continuation of the Labor Department's classification Number 4 (DMP-4). This policy implemented the idea of responsibilities since the inception of the labor surplus directing Federal procurement contracts to employers in area program in the early 1950’s under DMP-4. The labor surplus areas. However, the labor surplus area Labor Department also has responsibility for classifying program was not successful in directing Federal labor surplus areas under Executive Order 10582 which contracts to employers in high unemployment areas, implements the Buy American Act. largely because the program lacked a statutory base. This was changed with the enactment on August 4, Procedures for Classifying Labor Surplus Areas 1977 of Public Law 95-89. The Act provided statutory authority for the labor surplus area program by Labor surplus areas are classified on the basis of civil amending the Small Business Act and authorizing jurisdictions rather than on a metroplitan area or labor Federal agencies to set-aside contracts to employers market area basis. By classifying labor surplus areas in which agree to carry out a substantial portion of the this way, Federal contracts can be directed to those contract in a labor surplus area. “Substantial portion” specific localities with high unemployment rather than to was defined as meaning over 50 percent of the value of all civil jurisdictions within a metropolitan area, not all of the contract. which may suffer from the same degree of unemployment. As a result of the Urban and Regional Policy Group's review of Federal programs in 1977-1978, additional Civil jurisdictions are now defined as all cities with a support was given to the labor surplus area program population of at least 25,000 and all counties. because of its potential for providing assistance to Townships of 25,000 or more population are also distressed areas. In March 1978, the General Services considered as civil jurisdiction in 4 States (Michigan, Administration was directed to work with each Federal New Jersey, New York, and Pennsylvania). In agency in setting targets for placing set-aside contracts Connecticut, Massachusetts, Puerto Rico, and Rhode in labor surplus areas. The General Services Island where counties have very limited or no Administration was also directed to monitor the government functions, the classifications are done for performance of the Federal agencies in meeting the individual towns. A civil jurisdiction is classified as a labor surplus area State employment security agencies and approved by when its average unemployment rate was at least 20 the Employment and Training Administration. The percent above the average unemployment rate for all reference period used in preparing the current list was States (including the District of Columbia and Puerto January 1989 through December 1990. The national Rico) during the previous 2 calendar years. During average unemployment rate during this period periods of high national unemployment, the 20 percent (including data for Puerto Rico) was 5.5 percent. The ratio is disregarded and an area is classified as a labor qualifying rate for labor surplus area classification is surplus area if its unemployment rate during the therefore 6.6 percent (5.5 percent times 1.20 equals 6.6 previous 2 calendar years was 10 percent or more. This; percent). Areas are therefore included on the current 10 percent “ceiling” concept comes into operation annual labor surplus area listing because their average whenever the 2-year average unemployment rate for all unemployment rate during the reference period was 6.6 States was 8.3 percent or above (i.e., 8.3 percent times percent or above. Additional areas have been added to the 1.20 ratio equals 10.0 percent). Similarly, a “floor” the list under the program's exceptional circumstance concept of 6.0 percent is used during periods of low criteria. national unemployment in order for an area to qualify as a labor surplus area. The 6 percent ‘floor’ comes Newly Classified Labor Surplus Areas into effect whenever the average unemployment rate for: all States during the 2-year reference period was 5.0 No additional areas have been classified as labor percent or less. surplus areas by the U.S. Department of Labor this month. The number of labor surplus areas remains The classification procedures also provide for the unchanged at 1,566 areas. (1,554 civil jurisdictions, designation of labor surplus areas under exceptional 7 PMSA’s and 5 MSA’s). PMSA’s and MSA’s are listed circumstance criteria. These procedures permit the and defined separately on pages 55 through 62. regular classification criteria to be waived when an area experiences a significant increase in unemployment which is not temporary or seasonal and which was not adequately reflected in the data for the 2-year reference period. In order for an area to be classified as a labor surplus area under the exceptional circumstance criteria, the State employment security agency must submit a petition requesting such classification to the Department of Labor's Employment and Training Administration. The current conditions for exceptional circumstance classification are: an area unemployment rate of at least 6.6 percent for each of the 3 most recent months; projected unemployment rate of at least 6.6 percent for each of the next 12 months; and documented information that the exceptional circumstance event has already occurred. The State employment security agencies may file petitions on behalf of civil jurisdictions, as well as Metropolitan Statistical Areas or Primary Metropolitan Statistical Areas, as defined by the Office of Management and Budget. The addresses of the State employment security agencies are provided on the inside back cover. The Department of Labor issues the labor surplus area listing on a fiscal year basis. The listing becomes effective each October 1 and remains in effect through the following September 30. During the course of the fiscal year, the annuai listing is updated on the basis of exceptional circumstance petitions submitted by the Listing of Labor Surplus Areas LIGIBLE LABOR SURPLUS AREAS CIVIL JURISDICTIONS INCLUDED ALABAMA ANNISTON CITY ANNISTON CITY IN CALHOUN COUNT’ AUTAUGA COUNTY AUTAUGA COUNTY BARBOUR COUNTY BARBOUR COUNTY BESSEMER CITY BESSEMER CITY IN JEFFERSON COUNTY BIBB COUNTY BIBB COUNTY BIRMINGHAM CITY BIRMINGHAM CITY IN JEFFERSON COUNTY BULLOCK COUNTY BULLOCK COUNTY BUTLER COUNTY BUTLER COUNTY CHAMBERS COUNTY CHAMBERS COUNTY CHEROKEE COUNTY CHEROKEE COUNTY CHILTON COUNTY CHILTON COUNTY CHOCTAW COUNTY CHOCTAW COUNTY CLARKE COUNTY CLARKE COUNTY LAY COUNTY CLAY COUNTY CLEBURNE COUNTY CLEBURNE COUNTY COLBERT COUNTY COLBERT COUNTY CONECUH COUNTY CONECUH COUNTY COVINGTON COUNTY COVINGTON COUNTY CRENSHAW COUNTY CRENSHAW COUNTY CULLMAN COUNTY CULLMAN COUNTY DALE COUNTY DALE COUNTY E KALB COUNTY DE KALB COUNTY DECATUR CITY DECATUR CITY IN MORGAN COUNTY ESCAMBIA COUNTY ESCAMBIA COUNTY FAYETTE COUNTY FAYETTE COUNTY FLORENCE CITY FLORENCE CITY IN LAUDERDALE COUNTY FRANKLIN COUNTY FRANKLIN COUNTY GADSDEN CITY GADSDEN CiTy IN ETOWAH COUNTY GRE ENE COUNTY GREENE COUNTY HALEE COUNTY HALE COUNTY JACKSON COUNTY JACKSON COUNTY LAMAR COUNTY LAMAR COUNTY LAWRENCE COUNTY LAWRENCE COUNTY LOWNDES COUNTY LOWNDES COUNTY MACON COUNTY MACON COUNTY (CONTINUED) Area Trends in Employment and Unemployment Listing of Labor Surplus Areas—(Continued) ELIGIBLE LABOR SURPLUS AREAS CiVIL JURISDICTIONS INCLUDED ALABAMA (CONT'D) MARENGO COUNTY MARENGO COUNTY MARION COUNTY MARION COUNTY MARSHALiL COUNTY MARSHALL COUNTY MOBILE CITY MOBIGE CITY IN MOBILE COUNTY BALANCE OF MOBILE COUNTY MOBILE COUNTY MOBILE CITY PRICHARD CITY MONROE COUNTY MONROE COUNTY PERRY COUNTY PERRY COUNTY PHENIX CITY PHENE CEPY IN LEE COUNTY RUSSELL COUNTY PICKENS COUNTY PILCKENS COUNTY PRICHARD CITY PRICHARD CITY IN MOBILE COUNTY RANDOLPH COUNTY SELMA CITY IN DALLAS COUNTY SUMTER COUNTY SUMTER COUNTY TALLADEGA COUNTY TALLADEGA COUNTY WALKER COUNTY WALKER COUNTY WASHINGTON COUNTY WASHINGTON COUNTY WILCOX COUNTY WILCOX COUNTY WINSTON COUNTY WINSTON COUNTY FAIRBANKS CITY FAIRBANKS CITY IN FAIRBANKS NORTH STAR BOROUGH BALANCE OF FAIRBANKS NORTH STAR BOROUGH FAIRBANKS NORTH STAR BOROUGH LESS FAIRBANKS CITY HAINES BOROUGH HAINES BOROUGH KENAI PENINSULA BOROUGH KENAI PENINSULA BOROUGH KETCHIKAN GATEWAY BOROUGH KETCHIKAN GATEWAY BOROUGH MATANUSKA-SUSITNA BOROUGH MATANUSKA-SUSTTNA BOROUGH NOME CENSUS AREA NOME CENSUS AREA NORTHWEST ARCTIC BOROUGH NORTHWEST ARCTIC BOROUGH PRINCE Or WALES OUTER KETCHIKAN PRINCE OF WALES OUTER KETCHIKAN SKAGWAY YAKUTAT ANGOON CENS AREA SKAGWAY YAKUTAT ANGOON CENS AREA SOUTHEAST FAIRBANKS CENSUS AREA SOUTHEAST FAIRBANKS CENSUS AREA (CONTINUED) 2 ELIGIBLE LABOR SURPLUS AREAS ALASKA (CONT'D) VALDEZ CORDOVA CENSUS AREA VALDEZ CORDOVA CENSUS AREA WADE HAMPTON CENSUS AREA WADE HAMPTON CENSUS AREA WRANGELL-PETERSBURG CENSUS AREA WRANGELi- PETERSBURG CENSUS AREA YUKON-KOYUKUK CENSUS AREA YUKON-KOYUKUK CENSUS AREA ARIZONA APACHE COUNTY APACHE COUNTY BALANCE OF COCONINO COUNTY COCONINO COUNTY LESS FLAGSTAFF CITY GILA COUNTY GILA COUNTY GRAHAM COUNTY GRAHAM COUNTY GREENLEE COUNTY GREENLEE COUNTY LA PAZ COUNTY LA PAZ COUNTY NAVAJO COUNTY NAVAJO COUNTY PINAL COUNTY PINAL COUNTY SANTA CRUZ COUNTY SANTA CRUZ COUNTY SIERRA VISTA CITY SIERRA VISTA CITY IN COCHISE COUNTY YUMA CITY YUMA CITY IN YUMA COUNTY BALANCE OF YUMA COUNTY YUMA COUNTY LESS YUMA CITY ARKANSAS ASHLEY COUNTY ASHLEY COUNTY BAXTER COUNTY BAXTER COUNTY BRADLEY COUNTY BRADLEY COUNTY CHICOT COUNTY CHICOT COUNTY CLEBURNE COUNTY CLEBURNE COUNTY CLEVELAND COUNTY CLEVELAND COUNTY CONWAY CITY CONWAY CITY IN FAULKNER COUNTY CONWAY COUNTY CONWAY COUNTY CRAWFORD COUNTY CRAWFORD COUNTY BALANCE OF CRITTENDEN COUNTY CRITTENDEN COUNTY LESS WEST MEMPHIS CITY (CONTINUED) Area Trends in Employment and Unemployment Listing of Labor Surplus Areas—(Continued) CIVIL JURISDICTIONS INCLUDED ARKANSAS CROSS COUNTY CROSS COUNTY DALLAS COUNTY DALLAS COUNTY DESHA COUNTY DESHA COUNTY DREW COUNTY DREW COUNTY EL DORADO CITY EL DORADO CITY IN UNION COUNTY BALANCE OF FAULKNER COUNTY FAULKNER COUNTY LESS CONWAY CITY FORT SMITH CITY FORT SMITH CITY IN SEBASTIAN COUNTY FRANKLIN COUNTY FRANKLIN COUNTY FULTON COUNTY FULTON COUNTY BALANCE OF GARLAND COUNTY GARLAND COUNTY LESS HOT SPRINGS CITY GREENE COUNTY GREENE COUNTY HEMPSTEAD COUNTY HEMPSTEAD COUNTY HOT SPRING COUNTY HOT SPRING COUNTY HOT SPRINGS CITY HOT SPRINGS CITY IN GARLAND COUNTY HOWARD COUNTY HOWARD COUNTY INDEPENDENCE COUNTY INDEPENDENCE COUNTY JACKSON COUNTY JACKSON COUNTY JACKSONVILLE CITY JACKSONVILLE CITY IN PULASKI COUNTY BALANCE OF JEFFERSON COUNTY JEFFERSON COUNTY LESS PINE BLUFF CITY JOHNSON COUNTY JOHNSON COUNTY LAFAYETTE COUNTY LAFAYETTE COUNTY LAWRENCE COUNTY LAWRENCE COUNTY LEE COUNTY LEE COUNTY LINCOLN COUNTY LINCOLN COUNTY LOGAN COUNTY LOGAN COUNTY LONOKE COUNTY LONOKE COUNTY SSIPPI COUNTY MISSISSIPPI COUNTY MONROE COUNTY MONROE COUNTY MONTGOMERY COUNTY MONTGOMERY COUNTY NEVADA COUNTY VEVADA COUNTY NEWTON COUNTY NEWTON COUNTY OUACHITA COUNTY OUACHITA COUNTY PERRY COUNTY PERRY COUNTY PHILLIPS COUNTY PHILLIPS COUNTY PIKE COUNTY PIKE COUNTY PINE BUUFF PINE BLUFF CITY IN JEFFERSON COUNTY