Labor Surplus Areas Regulatory Authority

Employment and Training Administration, Labor
powers and functions similar to cities;
or
(3) All counties, except those counties which contain any of the types of
political jurisdictions defined in paragraphs (b) (1) and (2) of this section; or
(4) All other counties are defined as
‘‘balance of county’’ (i.e., total county
less component cities and townships
identified in paragraphs (b) (1) and (2)
of this section); or
(5) County equivalents which are
towns in the States of Massachusetts,
Rhode Island and Connecticut.
(c) Labor surplus area shall mean a
civil jurisdiction that, in accordance
with the criteria specified in § 654.5, has
been classified as a labor surplus area.
(d) Reference period shall mean the
two year period ending December 31 of
the year prior to the October 1 annual
date of eligibility determination.
[44 FR 1689, Jan. 5, 1979, as amended at 44 FR
26071, May 5, 1979; 48 FR 15616, Apr. 12, 1983;
53 FR 23347, June 21, 1988]

§ 654.5 Classification of labor surplus
areas.
(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 Workforce 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
§ 654.5(a) as a result of exceptional circumstances. For purposes of this paragraph ‘‘exceptional circumstances’’
shall mean catastrophic events, such as

§ 654.8

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; 71 FR 35518, June 21,
2006]

§ 654.6

Termination of classification.

(a) Basic procedure. The Assistant
Secretary shall terminate the classification of a civil jurisdiction as a
labor surplus area after any year in
which the Assistant Secretary determines that the criteria established
under § 654.5 (a) are no longer met.
(b) Procedure for exceptional circumstances. The Assistant Secretary
shall terminate the classification of a
civil jurisdiction classified as a labor
surplus area pursuant to the provisions
of § 654.5(b) after any year in which the
Assistant Secretary determines that
the exceptional circumstances criteria
of that paragraph are no longer met.
[44 FR 1689, Jan. 5, 1979, as amended at 48 FR
15616, Apr. 12, 1983]

§ 654.7 Publication of area classifications.
The Assistant Secretary shall publish
annually a list of labor surplus areas
together with geographic descriptions
thereof. The Assistant Secretary periodically may cause these lists to be
published in the Federal Register.
[44 FR 1689, Jan. 5, 1979, as amended at 48 FR
15616, Apr. 12, 1983]

§ 654.8 Services to firms and individuals in labor surplus areas.
To carry out the purposes and policy
objectives of Executive Order 12073 and
Executive Order 10582, the Assistant
Secretary shall cooperate with and assist the State Workforce Agencies and
the Secretary of Commerce, as appropriate, to:

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