C. APPORTIONMENT OF $200 MILLION FOR HIGH UNEMPLOYMENT AREAS NEWS ( U. S. DEPARTMENT OF LABOR OFFICE OF INFORMATION, WASHINGTON, D. C. 20210 USDL -- 71-502 Manpower Administration FOR RELEASE: A. M. Editions Tuesday, September 21, 1971 HODGSON ALLOCATES $200 MILLION FOR PUBLIC JOBS IN 6% UNEMPLOYMENT AREAS Allocation of $200 million to areas with six percent or more unemployment for three recent consecutive months to place jobless persons in public service occupations was announced today by Secretary of Labor J. D. Hodgson. An additional $50 million, all part of the Emergency Employment Act's Section 6 funds, is being held in reserve to be used by the Secretary for further alleviation of high unemployment areas. "I have set a target for us to complete the funding process under Section 6 by the end of October so local officials can begin hiring as soon as possible," Hodgson said. "We have already funded 27,000 public service jobs under the first part of the Act (Section 5) and more than 6,000 persons are on the job as of last week." Hodgson said the $200 million was allocated among "pockets of high unemployment" on the basis of a formula that gives equal weight to both the number of unemployed and the severity of unemployment. The funds will be administered through most of the governmental units already named as Program Agents in the Section 5 distribution. As small projects dissipate funds, no grant of less than $25,000 will be made to any area. For program agents with six percent or higher unemployment, the funds are available for providing jobs for residents of high unemployment neighborhoods within their boundaries. For program agents with less than six percent unemployment, the funds are allocated specifically to areas of high unemployment designated by the Secretary within the city and county boundaries. 69-110 O 71 15 Some examples of qualified areas are: Los Angeles, with a jobless rate over 6 percent, is receiving the special assistance allocation with the understanding that the city will distribute the funds within its boundaries to pockets of severe unemployment as determined by the city. For New York City, on the other hand, with less than 6 percent unemployment, the Secretary of Labor has specified the pockets of unemployment--such as Harlem and certain areas of Brooklyn-in which the city must spend the funds. Rural counties, such as those in Appalachia, where the Governors of the States will act as Agent for the Department in making grants to small counties and cities for local jobs. All jobs established under Section 6 will be in city, county, and local institutions, rather than in State agencies. The $250 million is part of the $1 billion Public Employment Program (PEP) appropriation signed by President Nixon August 9. On August 12 the Secretary announced the apportionment of $600 million in PEP funds for the main portion of the program (Section 5) under which all units of government are eligible for funds. Said Hodgson, "Our first goal was to get unemployed persons into public service jobs (at city, county and State) levels before Labor Day as the President directed. We surpassed that goal. The first person was on the job August 16; grants to program agents exceed $105 million. The "We are seeking to act with the same speed in putting into use the money set aside for those communities more severely hit by unemployment. President's prime concern and our main focus in this program is to enable local governments to create jobs for those out of work," Hodgson said. Guidelines and application instructions for Section 6 funds are going out to program agents. They will submit proposals on use of the funds by October 5. Grants will be made by the Labor Department's Regional Manpower Administrators in October. First, however, interested parties, such as other units of local government, Governors, and trade unions, will have an opportunity to comment on individual applications as is required by the Act. The program is administered by the Office of Public Employment Program in the Labor Department's Manpower Administration. Attached is a list of eligible areas and the allocation for each. |