This list will remain in effect until September 30,
Employers located in the labor surplus area may be given preference in bidding on
federal procurement contracts. The purpose in providing such preference is to help
the governments procurement dollars into areas where people are in the most severe
economic need based on their high unemployment rates.
Classification of Labor Surplus Areas
In order to be classified as
a labor surplus area, a civil jurisdiction must have had an unemployment
rate during the previous two calendar years (January
2014-December 2015) which was at least 20 percent
above the national average unemployment rate for the same two year
reference period. A floor of 6.0 percent is used during periods of low
national unemployment in order for an area to qualify as a labor surplus
area. The 6.0 percent floor comes into effect whenever the average
unemployment rate for all states during the two-year reference period was
5.0 percent or less.
The national average
unemployment rate during the period of January 2014 through December
2015 was 5.77 percent. Twenty percent higher than the national
unemployment rate is 6.93 percent.