Supplemntal Supporting Statement: Dislocated Worker Opportunity -- National Dislocated Worker Grants

Dislocated Worker Opportunity -- National Dislocated Worker Grants

Supplemental Justification

Supplemental Supporting Statement A: Justification

This request seeks OMB approval under the Paperwork Reduction Act for the unique information collection requirements in the “Dislocated Worker Opportunity Grants” solicitation. The Department will announce the availability of up to $35 million for Dislocated Worker Opportunity Grants (DWOGs). Individual awards will be up to 4.3 million, and will be based on each applicant’s share of calendar year 2016 monthly averages of the Civilian Labor Force (CLF), as well as unemployment. A weighting of 50 percent will be assigned to both CLF and unemployment. The purpose of this funding is to enable eligible applicants to serve dislocated workers, who are unemployed and seeking reentry into the workforce, with career services and training which increases their skill levels to become competitive for growing or high-demand employment opportunities. These grants will be funded through the National Dislocated Worker Grant program.

National Dislocated Worker Grants (DWGs) are discretionary grants awarded by the Secretary of Labor under section 170 of the Workforce Innovation and Opportunity Act (WIOA). DWGs provide time-limited employment and training assistance to dislocated workers in response to major economic dislocations or other events that affect the U.S. workforce, and which cannot be accommodated with WIOA formula funds or other relevant existing resources. For the purpose of the DWOG solicitation, the Department has recognized the impact of ongoing smaller dislocation events over time as a major dislocation event eligible for DWG assistance. These smaller dislocation events have been experienced in many States despite recent economic growth and an ongoing (and even increasing) lag in reemployment for long-term unemployed workers. Given the demands on the WIOA Dislocated Worker (DW) program caused by trends in multiple smaller layoff events, as well as by the increased numbers of long-term unemployed individuals, the DWOGs are a type of DWG that are intended to upskill dislocated workers affected by the smaller layoff events, with the goal of enhancing their employability and earnings.

The primary goals of the DWOGs are: 1.) to expand opportunities for dislocated workers to upgrade skills that lead to employment or industry-recognized credentials in growing or high-demand industries and occupations; and, 2.) to address the skill gaps faced by employers in growing or high-demand industries. In order to support an American economy that provides opportunity for all, worker skills must align with the needs of growing or high-demand industries. DWOGs will focus on job training that provides dislocated workers, who are unlikely to return to previous occupations, an opportunity to retool and re-engage in high-growth sectors of the economy. With an emphasis on sector strategies and targeted industries identified by states and in alignment with local economic development plans, retraining of dislocated workers in hard-hit areas will help address current local skill gaps between jobseekers and employers in growing or high-demand industries. These grants will enable eligible applicants to train a spectrum of dislocated workers who are unemployed or long-term unemployed, seeking reentry into the workforce, and requiring employment services and training to enhance or increase skill levels to become competitive for growing or high-demand employment opportunities.

As businesses continue to look for skilled workers, state and local Workforce Development Boards (WDBs) should be strategically positioned to provide high-quality employment and training services to as many dislocated workers as possible, delivered in the context of the sector-driven career pathways envisioned by WIOA. These DWOGs will afford eligible applicants the opportunity to effectively address the needs of dislocated workers for re-employment as well as the skills required to pursue careers in growing or high-demand fields.

These grant funds will be awarded to states, outlying areas, a consortium of states; or an entity described in sec. 166(c) of WIOA (related to Indian and Native American programs).

Applications will include the following information collections: 1.) Form SF-424 “Application for Federal Assistance,” separately cleared under OMB control number 4040-0004; 2.) Form SF-424A, separately cleared under OMB control number 4040-0006; 3.) a Budget Narrative and 4.) Project Narrative/Qualifying Statements.

Electronic availability:

This grant solicitation will be available on the www.grants.gov Web site. Based on past DOL experience, the Department anticipates 100 percent of responses will be submitted electronically.

Small Entities:

This information collection will not have a significant impact on a substantial number of small entities.

Assurances of confidentiality:

These grant solicitations do not offer applicants assurances of confidentiality.

Special circumstances:

This solicitation implicates no special circumstances.

Burden:

The DOL expects to receive approximately 54 applications from an equal number of respondents.  The public reporting burden for this collection of information is estimated to average 20 hours per response, including time for reviewing instructions, searching existing data sources, gathering and maintaining needed data, and completing and reviewing the collection of information.

54 applications x 20 hours = 1080 hours

The DOL has increased the average hourly earnings in the professional and business services industry to $31.53 per hour to monetize this burden.  See The Employment Situation—June 2017, DOL, Bureau of Labor Statistics, https://www.bls.gov/news.release/pdf/empsit.pdf at page 33.

1080 hours x $31.53 = $34,052.40

The DOL associates no other burden costs with this information collection. In addition to the application, each grantee will be required to submit quarterly financial and performance reports to the ETA. Those information collection requirements will be cleared under a separate control number.

Total burden: 54 respondents, 54 responses, 1080 hours, $0 other cost burden.

Supplemental Supporting Statement B: Statistical Methods

This information collection does not employ statistical methods.

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