What is the Labor Surplus Area?

Labor Surplus Area is commonly known as LSA. It can be defined as civil jurisdiction. In previous 2 calendar years, the average yearly unemployment rate was figured 20% and sometimes more than this percentage. This is the highest unemployment rate of the civilian population comparing with statistics concerning civilian unemployment in other states in the same twenty-four months as a certain referenced period. 

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How is the Labor Surplus Area Used?

The Labor Statistics Bureau is responsible to produce official estimations regarding civil unemployment rate to ETA and thus this information is used for classification purposes. The aggregated data concerning with unemployment rate of all states also includes the data for the territories administered by the USA such as Puerto Rico Commonwealth in the Caribbean. The primary LSA classification is known as floor unemployment rate. The rules indicate that a state cannot be listed as LSA until its unemployment rate is either 6% or exceeding from this figure. The state should have a 10.0% rate of ceiling unemployment. This is how a civil jurisdiction with a 10% unemployment rate is classified as LSA. The government designates the status of LSA to certain countries, areas, and towns where the unemployment rate is higher. The designation of LSA areas is performed on the basis of the results of the annual survey. The results are correlated to procurement policies of the federal government to minimize the level of unemployment. The basic criteria for civil jurisdictions are mentioned as under:

• Only that city can be categorized as LSA that has a minimum population of 25,000 and this is verified by Census Department; or 
• A town with a population of 25,000 or more in New York, Pennsylvania, New Jersey or Michigan that has powers or operates like cities. This can be categorized LSA territory; or
• Any county that has not been categorized in civil jurisdictions in above A or B categories and a country or counties in Massachusetts, Connecticut or Rhode Island; or
• A balance of country based on a county that has no facilities similar to cities or townships and has been recognized in above-given paragraph A or paragraph B; or
• A county that is equivalent in a population of 25,000 in any Puerto Rico Commonwealth or within the state of New England. 

Related Topics

• Labor Economics
• Labor Market Equilibrium
• Labor Market Efficiency
• Productivity Economics
• National Average Wage Index
• Unemployment
• Labor Force Participation Rate
• Job Openings and Labor Turnover Survey
• Labor Surplus Area - Explained
• Lump of Labor Fallacy - Explained
• Labor Force Participation Rate - Explained
• Bureau of Labor Statistics 
• ADP National Employment Survey
• Labor Theory of Value - Explained
• Labor Productivity - Explained
• Wage Elasticity of Labor Supply
• Sticky Wage Theory (Economics)