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October 28, 2008    DOL Home > News Release Archives > ETA 1996   

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Archived News Release--Caution: information may be out of date.

U.S. DEPARTMENT OF LABOR

Employment and Training Administration

ETA Press Release: Labor Secretary Announces New Program To Raise Employment Rate For Dropouts [06/27/1996]

For more information call: (202) 219-6871

Secretary of Labor Robert B. Reich today announced an $8.9 million grant for pilot projects in Los Angeles, Houston and Chicago to boost the employment rate for dropouts in specific high-poverty areas from less than 50 percent to 80 percent.

The three cities were among 54 communities that competed for the grant targeted for their highest-poverty neighborhoods. They will provide an additional $12 million to fund the program of intensive training and job placement for as many as 6,000 young people, ages 16-24.

The Clinton Administration has requested an additional $250 million for the FY 1997 budget to extend the program to other communities.

"It is important for us to help high-school dropouts finish school, get training and land a job. By lending a hand today, we can provide hope for a brighter tomorrow," said Vice President Albert Gore.

"These are young people who have failed in school or whose communities have failed them," Reich said. "Without help their failures will multiply and so will their costs to society." Reich said dropouts are more likely to become permanently unemployed, have children out of wedlock, and turn to welfare, drugs and crime.

The average high-school dropout earns and therefore contributes $230,000 less than a high-school graduate to the economy The average high-school dropout pays $70,000 less in taxes than a high-school graduate.

The three cities will target specific high-poverty neighborhoods with programs to keep the young people in school, help them get their degrees and train them for good jobs in the area. Local companies will help design the training for occupations in demand locally and commit to a specific number of career track jobs.

"We know from experience that helping these troubled young people will not be easy or quick," said Reich. "They need to learn more than just job skills--many need to learn how to overcome abusive families, resist dangerous companions, get off drugs, finish high school and learn the simple demands of work life--punctuality and discipline."

Houston expects as many as 1,499 out-of-school youth to be served by the program designed to reduce the youth unemployment rate from 70 percent to less than 20 percent and reduce the high school dropout rate by more than 50 percent. The city will combine the $2,895,055 in federal grant funds with $4,442,252 in other funds.

Los Angeles will add $4.5 million in public and private-sector funds to the $3 million in federal funds to serve as many as 3,145 out-of-school youth. More than 700 jobs have been pledged by private-sector employers.

Chicago will add $3,464,035 to the $3 million federal grant to serve more than 1,300 young people. Area businesses and corporations have committed 200 work-based learning positions for out-of-school youth and 50 part or full-time jobs.


Archived News Release--Caution: information may be out of date.




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