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Michigan Unemployment Grant

April 19th, 2007 Posted by Amelia

With the federal WIRED grants entering the 3^rd phase of bidding, many people wonder if an additional 3^rd round grant will go to the state of Michigan.

Michigan was successful in winning on of the grants during the 2^nd round, last year. Still, the state struggles with high unemployment coupled with a high minimum wage rate, which seems to be discouraging new manufacturing plants. In recent months, we have seen a number of major manufacturers locate in adjoining Indiana, instead.

It’s possible that an additional Michigan unemployment grant could increase employment in the state. In the first phase of WIRED, $195 million has been distributed in thirteen regions throughout America. In the second phase, another $65 million will be distributed, based on a competition involving state governors.

In a recent speech, Assistant U.S. Secretary of Labor for Employment and Training Emily DeRocco said, “Strong regional economies that are built on maximizing talent and innovation will be crucial to the nation’s success in the global economy.” This has been the principle that WIRED’s policies are based on, and they have been very successful in achieving their goals, so far.

The United States Labor Department initiated a program by the name of Workforce Innovation in Regional Economic Development (WIRED). This program aims to improve economy by training the workforce in troubled areas. Recently, WIRED has made plans to inject up to $5 million in a Michigan unemployment grant. These funds would be utilized to train the workers in Michigan.

This region has had poor economic performance and high unemployment for the past several years. The region will receive an initial $500,000 as a gift, for the training of workers. After a regional implementation plan has been formulated, the rest of the amount will be disbursed.

At the announcement of the above-mentioned grant for Michigan, U. S. Secretary of Labor Elaine Chao said “Investing in area workforces through this collaborative approach will boost entire regions’ economic vitality.”