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Alabama Unemployment Grant

March 27th, 2007 Posted by Amelia

Regular readers of this blog are keenly aware of the value of US Dept. of Labor WIRED grants in stimulating regional economies and eliminating pockets of high unemployment.

The national unemployment figures are good. According to the most recent national figures, unemployment hovers around 4% nationwide. Technically, any unemployment rate below 5% is considered a labor shortage by economists. For highly skilled workers including those with a college education, the rate is even lower – about 1.9% nationwide. Yet, there are still isolated areas of the US with high unemployment rates. That’s where unemployment grants come into play.

An Alabama unemployment grant would be great news for workers, particularly those in the northern part of the state, which has traditionally experienced high unemployment. In fact, just such a grant was awarded during the second round of WIRED grants. US Secretary of Labor Elaine L. Chao recently announced a competition for the third generation of WIRED grants. The program is called Workforce Innovation in Regional Economic Development Initiative, but almost universally referred to as WIRED grants.

According to Secretary Chao, “The WIRED Initiative recognizes that local economies often do not neatly conform to geographic boundaries,” She added, “WIRED brings together universities, businesses, community colleges, foundations and economic development organizations to help equip regional workforces with the skills needed to succeed in the 21st century worldwide economy.” In February 2006, the Labor Department launched WIRED through a competitive grant process in which 13 regions were selected to transform their economies. The WIRED grant process is highly competitive, but the rewards are also great.

As with previous WIRED call for proposals, this competition is open to all state or territory governors. All governors were sent a letter announcing the competition from the Labor Secretary. Each governor may submit up to two proposals, for grants up to $5 million each. Competing regions must identify sources of state, regional, and private funding to complement the Labor Department’s investment.