Labor Surplus Areas
Fourteen areas in Pennsylvania are included on the latest Labor Surplus Area (LSA) listing, as determined by the U.S. Department of Labor (DOL), Employment and Training Administration.
Labor Surplus Area lists are used when deciding the recipients of federal government contracts. These areas have preference for contracts awarded under the federal procurement process. Struggling businesses and organizations receive extra consideration when their township, city or county appears on a LSA listing.
Labor surplus areas are classified on the basis of civil jurisdictions. Civil jurisdictions are defined as all cities and townships of at least 25,000 population and all counties.
In order to qualify as a LSA, an area (city, township, county or balance of county) must have an unemployment rate that is the lower of 1.2 times the national average during the reference period or the ceiling rate of 10.0 percent during periods of high national unemployment. The current reference period is January 2011 through December 2012 and has a national average unemployment rate for this time of 8.5 percent, making the qualifying rate 10.2 percent. Thus, the qualifying rate for the new list of labor surplus areas is the ceiling rate of 10.0 percent.
The current list of Pennsylvania labor surplus areas includes those that had an average unemployment rate that met the ceiling criteria for the January 2011 through December 2012 reference period.
The DOL issues the LSA listing on a fiscal year basis. The current list of LSAs will be in effect from October 1, 2013 through September 30, 2014. Below is a map and list of Pennsylvania’s LSAs for fiscal year 2014. Areas not meeting the criteria may qualify by special petition from the state’s employment security agency to the U.S. Department of Labor, if they meet additional specifications.
City Labor Surplus Areas
Allentown, Chester, Harrisburg, Hazleton, Johnstown, McKeesport, New Castle, Reading, Wilkes-Barre, York
County Labor Surplus Areas
Cameron, Carbon, Philadelphia, Pike