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Archived News Release--Caution:
information may be out of date.
For more information call: (202) 219-5185.
Over 1,300 areas in the United States have been designated
as labor surplus areas for Fiscal Year 1996 because of high unemployment,
Secretary of Labor Robert B. Reich announced today.
To receive such a classification, an area had to have an
average unemployment rate of at least 7.8 percent for the two-year period,
1993- 94. The classification is effective from Oct. 1, 1995, to Sept. 30, 1996.
Employers in labor surplus areas may be eligible for preference in obtaining
federal procurement contracts.
In Fiscal Year 1995, 1,342 areas were classified as labor
surplus areas. The decline in the number of labor surplus areas for Fiscal Year
1996 can be attributed to a drop in the two-year average national unemployment
rate.
Areas that did not have an unemployment rate of 7.8 percent
for the two-year reference period can be considered for classification as labor
surplus areas on the basis of exceptional circumstances. These might include a
sudden increase in unemployment in recent months that is not temporary or
seasonal in nature and that results from circumstances such as plant closings,
natural disasters or contract cancellations.
A list of labor surplus areas and a complete description of
the classification criteria, as well as updates to the annual list, are
contained in Area Trends in Employment and Unemployment, a monthly publication
prepared by the Labor Department's Employment and Training Administration. The
publication is available at a cost of $41 for a 12- month subscription or $4.50
for a single issue. Contact the Superintendent of Documents, U.S. Government
Printing Office, Washington, D.C. 20402 (202-783-3238).
Archived News Release--Caution:
information may be out of date.
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