Labor Surplus Area list is halved

More than 1K labor surplus areas removed due to error

      The Labor Dept. has issued a new, corrected Labor Surplus Area list for fiscal 2022, after discovering a major error in how the previous list was calculated.

      In implementing the correction, the new LSA list has been cut to 1,067 jurisdictions, down from 2,096 jurisdictions on the list that went into effect on Oct. 1, 2021.

      “The originally posted LSA information was incorrect,” DOL said in a news release. “The LSA list contained roughly 50% more areas than it should have.“

      DOL said the error was caused by a miscalculation of the two-year unemployment rate average.

      The correction reflects a 5.86% national average unemployment rate from January 2019 through December 2020. A jurisdiction must have a two-year unemployment rate of 20% higher than the national rate to qualify as a Labor Surplus Area. The areas receive preferences in federal procurement under Executive Order 12073 and Executive Order 10582.

More information:
DoL statement: https://www.dol.gov/agencies/eta/lsa

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