Area Trends In Employment and Unemployment U.S. Department of Labor i , 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 procurement contracts into areas of high unemployment. Employers located in these labor surplus areas are eligible for preference in bidding on Federal contracts 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) 219-5185 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 iocated throughcut 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, D.C. 20402 Annual subscription price for 12 monthly issues— $41.00 domestic; $51.25 foreign Singles copies— $4.50 domestic; $5.63 foreign Make checks or money orders payable to Superintendent of Documents. MasterCard and VISA accepted Charge orders may be telephoned to the GPO at (ZU02 ) 912-1800 from 8:00 a.m. to 4:00 p.m. Monday-Friday (except holidays) n Employment and Unemployment .S. Department of Labor mployment and Training Administration nited States Employment Service JANUARY 1996 ligible Labor Surplus Areas for Bidding Dn Federal Contracts Background Procedures for Classifying Labor Surplus Areas ew Labor Surplus Area List isting of Labor Surplus Areas Business Service Centers of the General Services Administration For sale by the Superintendent of Documents, U.S. Government Printing Office 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 metropolitan 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 was defined as meaning over 50 percent of the value of to all civil jurisdictions within a metropolitan area, not the contract. all of 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 aiso 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 the Employment and Training Administration. The when its average unemployment rate was at least 20 reference period used in preparing the current list was percent above the average unemployment rate for all January 1993 through December 1994. The national States (including the District of Columbia and Puerto average unemployment rate during this period (in- Rico) during the previous 2 calendar years. During cluding data for Puerto Rico) was 6.5 percent. The periods of high national unemployment, the 20 percent qualifying rate for labor surplus area classification is ratio is disregarded and an area is classified as a labor therefore 7.8 percent (6.5 percent times 1.20 equals surplus area if its unemployment rate during the 7.8 percent). Areas are therefore included on the previous 2 calendar years was 10 percent or more. This current annual labor surplus area listing because their 10 percent ceiling concept comes into operation average unemployment rate during the reference whenever the 2-year average unemployment rate for all period was 7.8 percent or above. States was 8.3 percent or above (i.e., 8.3 percent times the 1.20 ratio equals 10.0 percent). Similarly, a “floor” concept of 6.0 percent is used during periods of low Labor Surplus Area List national unemployment in order for an area to qualify as a labor surplus area. The 6 percent “floor” comes The Fiscal Year 1996 labor surplus area list contains into effect whenever the average unemployment rate for 1,310 civil jurisdictions. The list will be in effect until all States during the 2-year reference period was 5.0 September 30, 1996. No additional areas have been percent or less. added this month. The classification procedures also provide for the designation of labor surplus areas under exceptional circumstance criteria. These procedures permit the 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 NOTICE current conditions for exceptional circumstance classification are: an area unemployment rate of at least The General Services Administration (GSA) has 7.8 percent for each of the 3 most recent months; discontinued the publication of the “Labor Surplus Area ZIP projected unemployment rate of at least 7.8 percent for Code Reference”. GSA has asked us to notify you that an each of the next 12 months; and documented information automated source to identify geographic areas by ZIP Code that the exceptional circumstance event has already is the FIPS Publication 55-2 (1/87). “Guideline: Codes for occurred. The State employment security agencies may Named Populated Places, Primary County and Outlying file petitions on behalf of civil jurisdictions, as well as Areas”. This information is published by the National Metropolitan Statistical Areas or Primary Metropolitan Institute of Standards and Technology and may be Statistical Areas, as defined by the Office of purchased from the Department of Commerce, National Management and Budget. The addresses of the State Technical Information Service, 5285 Port Royal Road, employment security agencies are provided on the inside Springfield, VA 22161, telephone number (703) 487-4650. back cover. You should be aware, however, the ZIP code zones do not necessarily conform to the geographic boundaries of labor surplus areas. 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 annual listing is updated on the basis of exceptional circumstance petitions submitted by the State employment security agencies and approved by Listing of Labor Surplus Areas ELIGIBLE LABOR SURPLUS AREAS CIVIL JURISDICTIONS INCLUDED ANNISTON CITY ANNISTON CITY IN CALHOUN COUNTY BARBOUR COUNTY BARBOUR COUNTY BESSEMER CITY BESSEMER CITY IN JEFFERSON COUNTY BIBB COUNTY BIBB COUNTY BULLOCK COUNTY BULLOCK COUNTY BUTLER COUNTY BUTLER COUNTY CHAMBERS COUNTY CHAMBERS COUNTY CHILTON COUNTY CHILTON COUNTY CHOCTAW COUNTY CHOCTAW COUNTY CLARKE COUNTY CLARKE COUNTY CLAY COUNTY CLAY COUNTY COLBERT COUNTY COLBERT COUNTY CONECUH COUNTY CONECUH COUNTY BALANCE OF DALE COUNTY DALE COUNTY LESS DOTHAN CITY DALLAS COUNTY DALLAS COUNTY ESCAMBIA COUNTY ESCAMBIA COUNTY FAYETTE COUNTY FAYETTE COUNTY FLORENCE CITY FLORENCE CITY IN LAUDERDALE COUNTY GADSDEN CITY GADSDEN CITY IN ETOWAH COUNTY GREENE COUNTY GREENE COUNTY HALE COUNTY HALE COUNTY HENRY COUNTY HENRY COUNTY JACKSON COUNTY JACKSON COUNTY LAWRENCE COUNTY LAWRENCE COUNTY LOWNDES COUNTY LOWNDES COUNTY MACON COUNTY MACON COUNTY MARENGO COUNTY MARENGO COUNTY MARION COUNTY MARION COUNTY MOBILE CITY MOBILE CITY IN MOBILE COUNTY MONROE COUNTY MONROE COUNTY PERRY COUNTY PERRY COUNTY PICKENS COUNTY PICKENS COUNTY PRICHARD CITY PRICHARD CITY IN MOBILE COUNTY RANDOLPH COUNTY RANDOLPH COUNTY (CONTINUED) Area Trends in Employment and Unemployment Listing of Labor Surplus Areas—(Continued) ELIGIBLE LABOR SURPLUS AREAS CIVIL JURISDICTIONS INCLUDED SUMTER COUNTY SUMTER COUNTY TALLADEGA COUNTY TALLADEGA COUNTY WALKER COUNTY WALKER COUNTY WASHINGTON COUNTY WASHINGTON COUNTY WILCOX COUNTY WILCOX COUNTY BETHEL CENSUS AREA BETHEL CENSUS AREA DENALI BOROUGH DENALI BOROUGH DILLINGHAM CENSUS AREA DILLINGHAM CENSUS AREA FAIRBANKS CITY FAIRBANKS CITY IN FAIRBANKS NORTH STAR BOROUGH HAINES BOROUGH HAINES BOROUGH KENAI PENINSULA BOROUGH KENAI PENINSULA BOROUGH KETCHIKAN GATEWAY BOROUGH KETCHIKAN GATEWAY BOROUGH KODIAK ISLAND BOROUGH KODIAK ISLAND BOROUGH MATANUSKA-SUSITNA BOROUGH MATANUSKA-SUSITNA BOROUGH NOME CENSUS AREA NOME CENSUS AREA NORTHWEST ARCTIC BOROUGH NORTHWEST ARCTIC BOROUGH PRINCE OF WALES OUTER KETCHIKAN PRINCE OF WALES OUTER KETCHIKAN SITKA BOROUGH SITKA BOROUGH SKAGWAY-HOONAH-ANGOON CEN AREA SKAGWAY-HOONAH-ANGOON CEN AREA SOUTHEAST FAIRBANKS CENSUS AREA SOUTHEAST FAIRBANKS CENSUS AREA VALDEZ CORDOVA CENSUS AREA VALDEZ CORDOVA CENSUS AREA WADE HAMPTON CENSUS AREA WADE HAMPTON CENSUS AREA WRANGELL~PETERSBURG CENSUS AREA WRANGELL-PETERSBURG CENSUS AREA YAKUTAT BOROUGH YAKUTAT BOROUGH YUKON-KOYUKUK CENSUS AREA YUKON-KOYUKUK CENSUS AREA ARIZONA APACHE COUNTY APACHE COUNTY BALANCE OF COCHISE COUNTY COCHISE COUNTY LESS SIERRA VISTA CITY BALANCE OF COCONINO COUNTY COCONINO COUNTY LESS FLAGSTAFF CITY GILA COUNTY GILA COUNTY (CONTINUED) ELIGIBLE LABOR SURPLUS AREAS CIVIL JURISDICTIONS INCLUDED GRAHAM COUNTY GRAHAM COUNTY GREENLEE COUNTY GREENLEE COUNTY LA PAZ COUNTY LA PAZ COUNTY BALANCE OF MOHAVE COUNTY MOHAVE COUNTY LESS LAKE HAVASU CITY NAVAJO COUNTY NAVAJO COUNTY SANTA CRUZ COUNTY SANTA CRUZ COUNTY YUMA CITY YUMA CITY IN YUMA COUNTY BALANCE OF YUMA COUNTY YUMA COUNTY LESS YUMA CITY BRADLEY COUNTY BRADLEY COUNTY CALHOUN COUNTY CALHOUN COUNTY CHICOT COUNTY CHICOT COUNTY CLAY COUNTY CLAY COUNTY CROSS COUNTY CROSS COUNTY DALLAS COUNTY DALLAS COUNTY DESHA COUNTY DESHA COUNTY HOT SPRINGS CITY HOT SPRINGS CITY IN GARLAND COUNTY IZARD COUNTY IZARD COUNTY JACKSON COUNTY JACKSON COUNTY LAFAYETTE COUNTY LAFAYETTE COUNTY LEE COUNTY LEE COUNTY LITTLE RIVER COUNTY LITTLE RIVER COUNTY MISSISSIPPI COUNTY MISSISSIPPI COUNTY MONROE COUNTY MONROE COUNTY OUACHITA COUNTY OUACHITA COUNTY PERRY COUNTY PERRY COUNTY PHILLIPS COUNTY PHILLIPS COUNTY PINE BLUFF CITY PINE BLUFF CITY IN JEFFERSON COUNTY POINSETT COUNTY POINSETT COUNTY PRAIRIE COUNTY PRAIRIE COUNTY ST. FRANCIS COUNTY ST. FRANCIS COUNTY VAN BUREN COUNTY VAN BUREN COUNTY WOODRUFF COUNTY WOODRUFF COUNTY (CONTINUED) Area Trends in Employment and Unemployment Listing of Labor Surplus Areas—(Continued) ELIGIBLE LABOR SURPLUS AREAS CIVIL JURISDICTIONS INCLUDED CALIFORNIA ALHAMBRA CITY ALHAMBRA CITY IN LOS ANGELES COUNTY ALPINE COUNTY ALPINE COUNTY AMADOR COUNTY AMADOR COUNTY ANTIOCH CITY ANTIOCH CITY IN CONTRA COSTA COUNTY APPLE VALLEY CITY APPLE VALLEY CITY IN SAN BERNARDINO COUNTY AZUSA CITY AZUSA CITY IN LOS ANGELES COUNTY BAKERSFIELD CITY BAKERSFIELD CITY IN KERN COUNTY BALDWIN PARK CITY BALDWIN PARK CITY IN LOS ANGELES COUNTY BELL CITY BELL CITY IN LOS ANGELES COUNTY BELL GARDENS CITY BELL GARDENS CITY IN LOS ANGELES COUNTY BALANCE OF BUTTE CCUNTY BUTTE COUNTY LESS CHICO CITY PARADISE CITY CALAVERAS COUNTY CALAVERAS COUNTY CARSON CITY CARSON CITY IN LOS ANGELES COUNTY CATHEDRAL CITY CATHEDRAL CITY IN RIVERSIDE COUNTY CERES CITY CERES CITY IN STANISLAUS COUNTY CHICO CITY CHICO CITY IN BUTTE COUNTY CHULA VISTA CITY CHULA VISTA CITY IN SAN DIEGO COUNTY CLOVIS CITY CLOVIS CITY IN FRESNO COUNTY COLTON CITY COLTON CITY IN SAN BERNARDINO COUNTY COLUSA COUNTY COLUSA COUNTY COMPTON CITY COMPTON CITY IN LOS ANGELES COUNTY CORONA CITY CORONA CITY IN RIVERSIDE COUNTY (CONTINUED)