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
2011-December 2012) 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 2011 through December
was 8.56 percent. Twenty percent higher than the national unemployment
rate is 10.27 percent. Since the ceiling unemployment rate is
10.0 percent, the qualifying rate is 10.0 percent.