Sen. Clinton Pushes for Fed. Grant to Address Impact of Financial Crisis on Hardworking New Yorkers

PRLog (Press Release) – Oct 04, 2008 – WASHINGTON, DC – Senator Hillary Rodham Clinton today called on the U.S. Department of Labor (DOL) to approve an application submitted by the New York State Department of Labor (NYSDOL) for a grant to allow the State to assess the impact of the ongoing economic crisis on jobs in the region and plan a strategic response. In a letter today, Senator Clinton strongly urged DOL Secretary Elaine L. Chao to approve the NYSDOL’s application for a Regional Innovation Grant, which would allow New York to join New Jersey and Connecticut in assessing how best to address the economic impact the ongoing crisis is having on the regional economy and job market.

“The shockwave of the financial crisis that started on Wall Street is now being felt by the hardworking people in the hospitality, restaurant, retail and other industries in New York City and throughout the region,” said Senator Clinton. “The Regional Innovation Grant will allow New York to partner with other states in our region to assess the economic impact of the current financial crisis and develop a plan to address the needs of these workers and their families. With the potential loss of tens of thousands of jobs looming large, I urge the Department of Labor to expedite the State’s application so that we can help the many hardworking people who are struggling to keep their heads above water in these trying economic times.”

Citing the profound impact that the economic crisis is likely to have on the New York economy, Senator Clinton stressed that those hardest hit will not only include the financial industry but also those employed in the food and restaurant industry, the retail trade, and hospitality industries. Clinton also stated that expediting the State’s application for a Regional Innovation Grant will allow New York to take the first steps necessary to develop a strategy with the other states in the region to guide the region’s workers through the current crisis, and address workforce needs in a way that will drive economic revitalization.

A copy of Senator Clinton’s letter to Secretary Chao is attached –

October 3, 2008

The Honorable Elaine L. Chao
U.S. Secretary of Labor
United States Department of Labor
200 Constitution Avenue, NW
Washington, D.C. 20210

Dear Madam Secretary:

I am writing to ask you to approve the application of the New York State Department of Labor for a Regional Innovation Grant in order to assess the impact of the ongoing economic crisis on jobs in the region and plan a strategic response.

As you know, the growing economic crisis arising out of the financial sector is likely to have a profound impact on workers in New York City and the region. The State of New York estimates that the crisis could lead to the loss of tens of thousands of jobs in New York City alone, as well as many more in the surrounding region. The impact is likely to be felt not only in the financial industry, but also to those employed in the food and restaurant industry, the retail trade, and hospitality industries, to name just a few. The effect on workers and their families could be dramatic. The report issued by the Department of Labor today that the U.S. economy had lost another 159,000 jobs in September only highlights the gravity and the urgency of the situation.

The State of New York is seeking a Regional Innovation Grant to allow it to join with the States of New Jersey and Connecticut to develop a joint strategy to address the economic impact of the anticipated dislocations in the New York City financial sectors and develop strategies to address the needs of the affected workers. The work will rely on economic forecasting to develop an economic plan tailored to the needs of the industry, and will seek to align public workforce, education and economic development resources in order to address the workforce needs of the region and stimulate the regional economy. The requested grant will allow New York to take the first steps necessary to develop a strategy with the other states in the region to guide the region’s workers through the current crisis, and address workforce needs in a way that will drive economic revitalization in the region.

Accordingly, I ask that you grant the New York State Department of Labor's application for a Regional Innovation Grant. Due to the urgent needs facing the region, I also ask that you give expedited consideration to the application in light of the urgent economic challenges facing the region.

Please let me know if I can be of any assistance in this matter.

Sincerely,

Hillary Rodham Clinton