The U.S. Department of Labor announced on September 2 that it will provide $646 million in Employment Service Grants to “improve the functioning of the nation’s labor markets by providing labor exchange services to all job seekers and helping businesses to meet their hiring needs by referring qualified workers.”
The funds will go to 2,400 American Job Centers. These centers are part of the Employment Service, which was created by The Wagner-Peyser Act of 1933 and amended by the Workforce Innovation and Opportunity Act (WIOA).
The Centers provide services to both job seekers and businesses and delivers reemployment services to unemployed individuals to help them return to work.
“We are pleased to release over half a billion dollars in support of those who are currently looking for employment or a career change,” said Assistant Secretary for Employment and Training John Pallasch. “The timing of this could not be better for the American people in light of the challenges that many are finding in the workplace due to the rise in unemployment caused by the pandemic. These dollars will provide integrated career services inaccessible locations, benefiting workers, job seekers and businesses.”
In conjunction with Employment Service, the Department of Labor administers additional federal job training and dislocated worker programs, federal grants to states for public employment service programs, and unemployment insurance benefits. These services are provided primarily through state and local workforce development systems.
