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North Dakota Unemployment Grant

June 7th, 2007 Posted by Amelia

A North Dakota unemployment grant should help bring jobs to the state, particularly in areas with higher rates of unemployment. Jobless rates remain high there despite a national unemployment rate of only 4%.

Other states can benefit from the same grant. Called WIRED, it is designed to give a boost to regions where unemployment remains high.

A North Dakota unemployment grant would be great news for the state’s workers. An Indiana grant came during the second round of WIRED grants. Now, bidding has begun for the third round.

Economists label any jobless rate below 5% as a labor shortage. The job outlook for college-educated and skilled workers is even better than the national 4% average, and hovers around 1.9%. Still, certain regions of the U.S. seem “immune” to the general improvement in employment, and have long histories of joblessness. The WIRED grant is designed to target those regions.

WIRED grants may be awarded at up to $5 million each. The competitions for the grants are open to all states and territories. Governors in each have gotten letters informing them that it is time to apply for the new round. A governor is allowed to make two proposals (because the grants target regions), and the competition is stiff, but the rewards are worth it. Each region must show what other private, regional and state funding it is receiving.

“The WIRED Initiative,” said Secretary Chao, “recognizes that local economies often do not neatly conform to geographic boundaries.” She said WIRED brings different organizations together to help prepare workforces by supplying them with “the skills needed to succeed in the 21st century worldwide economy.” Those organizations may be economic development groups, foundations, community colleges, businesses and universities.

WIRED is the acronym for Workforce Innovation in Regional Economic Development. The Labor Department established the WIRED grants in February 2006. At that time it selected 13 regions.

Those who read this blog on a regular basis are aware of the value of the WIRED grants.