(a) Basic criteria. The Assistant Secretary shall classify a civil
jurisdiction as a labor surplus area whenever, as determined by the
Bureau of Labor Statistics, the average unemployment rate for all
civilian workers in the civil jurisdiction for the reference period is
(1) 120 percent of the national average unemployment rate for civilian
workers or higher for the reference period as determined by the Bureau
of Labor Statistics, or (2) 10 percent or higher. No civil jurisdiction
shall be classified as a labor surplus area if the average unemployment
rate for all civilian workers for the reference period is less than 6.0
percent.
(b) Criteria for exceptional circumstances. The Assistant Secretary,
upon petition submitted by the appropriate State employment security
agency, may classify a civil jurisdiction, a Metropolitan Statistical
Area, or a Primary Metropolitan Statistical Area as a labor surplus area
whenever such an area meets or is expected to meet the unemployment
tests established under Sec. 654.5(a) as a result of exceptional
circumstances. For purposes of this paragraph ``exceptional
circumstances'' shall mean catastrophic events, such as natural
disasters, plant closings, and contract cancellations expected to have a
long-term impact on labor market area conditions, discounting temporary
or seasonal factors. For purposes of this paragraph, ``Metropolitan
Statistical Area'' and ``Primary Metropolitan Statistical Area'' shall
mean the areas officially defined and designated as such by the Office
of Management and Budget.
(Approved by OMB under control number 1205-0207)
[48 FR 15616, Apr. 12, 1983, as amended at 53 FR 23347, June 21, 1988]
