2007 areas of substantial unemployment for WIA funding

Accessible letter PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2006/TEGL10-06_508.pdf

CLASSIFICATION
      EMPLOYMENT AND TRAINING ADMINISTRATION         ASU/WIA
                  ADVISORY SYSTEM                    CORRESPONDENCE SYMBOL
             U.S. DEPARTMENT OF LABOR                OPDR
                Washington, D.C. 20210               DATE
                                                     November 30, 2006

TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 10-06

TO:          ALL STATE WORKFORCE AGENCIES
             ALL STATE WORKFORCE LIAISONS
             ONE STOP CENTER SYSTEM LEADS

FROM:        EMILY STOVER DEROCCO /s/
             Assistant Secretary
SUBJECT:     Designation of Areas of Substantial Unemployment (ASUs) under the
             Workforce Investment Act (WIA) for Program Year (PY) 2007

1. Purpose. To request the designation of Areas of Substantial Unemployment
   (ASUs) in each state as defined in the Workforce Investment Act (WIA) in order
   to allot funds under the Act for the period beginning July 1, 2007.

2. References. Sections 127(b)(2)(B) and 132(b)(1)(B)(v)(III) of the WIA define an
   ASU and require that ASU determinations be made once each fiscal year. These
   ASU designations will be used by the Department of Labor for the allotment of
   WIA Title I, Subtitle B, Chapters 4 (Youth) and 5 (Adult) funds to states for
   PY 2007. Section 182 of WIA requires all allotments to states under Title I to be
   based on the latest available data and estimates satisfactory to the Secretary.

3. Guidelines. Annually, the Employment and Training Administration (ETA)
   establishes an "Open Season" for the designation of potential ASUs. Unemployment
   estimates for these areas are used in annual fund allocations under WIA. In
   coordination with ETA, the Bureau of Labor Statistics (BLS) provides data,
   instructions and forms for the states to use in developing and submitting
   unemployment estimates. BLS also validates the data in state submittals.

   a. Definition. An ASU is a contiguous area with a current population of at least
      10,000 and an average unemployment rate of at least 6.5 percent for the 12-month
      reference period.

   b. Technical Adjustment for PY 2007. An error in the processing of the 2000

      Decennial Census that affects unemployment and labor force data for census
      tracts that include group quarters (for example, college dormitories), adversely
      affected the quality of the data and as a result, BLS would not certify state ASU
      calculations that used this data starting in PY 2006 and a temporary solution was
      used for PY 2006 ASU designations.

      To address this issue for years beginning with PY 2007, ETA has obtained special
      2000 Census data runs that provide employment and unemployment data using
      only household responses. These data will replace the 1990 Census data that
      were used for census sharing for PY 2006 and previous ASU determinations. The
      1990 Census data are not to be used for census sharing for PY 2007 or future ASU
      determinations. The new 2000 Census data and instructions for calculating ASUs
      were transmitted by the Bureau of Labor Statistics to the states in October.

   c. Reference Period. The 12-month reference period for the ASU designation shall
      be July 2005 through June 2006.

4. Procedures.

   a. If a state has an unemployment rate of 6.5 percent or higher for the reference
      period, the entire state will be designated an ASU, for purposes of the state
      allotments. In this case, no data or forms need be transmitted.

   b. If the state does not qualify in total as an ASU, the state should examine all
      jurisdictions within the state, and designate contiguous combinations of counties,
      cities, towns, townships, other minor civil divisions and/or census tracts as
      ASUs. ASUs designated under this section should be described using the largest
      appropriate defining units. If Local Area Unemployment Statistics data for the
      area designated as an ASU are already routinely collected by the Bureau of Labor
      Statistics (BLS), the state should report it, but no data need be submitted.

   c. For those designated ASUs for which data are not routinely collected by BLS, the
      state should prepare ASU designation and data collection forms and send them
      according to BLS instructions. The forms should include data for the 12-month
      period ending June 2006. A copy of each form should be sent to the National
      Offices of BLS and ETA. (See Section 5).

   d. The state should describe the geographic components of each ASU in sufficient
      detail for a knowledgeable reviewer to verify that they are contiguous, do not
      overlap and have a total population of at least 10,000 persons. States should
      either include maps with the submission or keep the maps available in case
      questions arise.

   e. BLS is now issuing specific procedures and ASU designation forms to states, for
      preparation of the ASU data.

5. Action Requested. States should ensure that all forms are in the ETA and BLS
   National Offices by December 8, 2006. The copy for ETA should be sent to U.S.
   Department of Labor, Attention: Mr. Wayne S. Gordon, Room N-5637, 200
   Constitution Avenue, N.W., Washington, D.C. 20210.

   The copy for BLS should be sent to Bureau of Labor Statistics, Division of Local Area
   Unemployment Statistics, Mail Code 140, Room 4675, 2 Massachusetts Avenue, N.E.
   Washington, D.C. 20212-0001, Attention: Ms. Lisa Williamson.

6. Inquiries. Direct questions to Ms. Maria K. Flynn, Administrator, Office of Policy
   Development and Research, (202) 693-3700, or to the appropriate regional office.

RESCISSIONS: None
EXPIRATION DATE: Continuing