New York State Department of Labor Labor Statistics

Labor Surplus Areas

October 1, 2012 - September 30, 2013

Under Executive Orders 12073 and 10582, the U.S. Secretary of Labor is required to annually designate Labor Surplus Areas (LSAs) and disseminate this information for the use of all federal agencies in directing procurement activities and in locating new plants or facilities.   The LSAs are designated to help direct federal procurement dollars to areas where unemployment is highest -- employers located in LSAs can be given preference in bidding on federal procurement contracts. LSA designations are also used in determining Food Stamp waivers under welfare reform legislation. A LSA is defined as an area with an unemployment rate at least 20% above the national rate during the previous two calendar years.

In periods of low unemployment, when the national average rate for the previous two calendar years is 5.0 percent or less, a floor of 6.0 percent is used in order for an area to qualify as a labor surplus area.

In periods of high unemployment, when the national average rate for the previous two calendar years is 8.3 percent or higher, a ceiling of 10.0 percent is used in order for an area to qualify as a labor surplus area.

The reference period used in preparing the current list was January 2010 through December 2011. The national average unemployment rate during this period was 9.4 percent. As a result, the 10.0 percent rate ceiling was used to determine eligibility for the Fiscal Year 2013 LSA classifications.

The listing includes all civil jurisdictions with a 2010-2011 average unemployment rate of 10.0 percent or higher: cities and towns with a population of 25,000 or more, county balances (counties excluding cities and towns with a population of 25,000 or more), and individual counties with no civil jurisdiction of at least 25,000 population.

For additional information, contact:

Email: rsask@labor.state.ny.us