The vast majority of funds (97%) for Employment Service activities are allotted to states on the basis of each state's relative share of the following two factors: civilian labor force (CLF) and total unemployment. Specifically, two-thirds of the ES state funding is allotted on the basis of the relative share of CLF and one-third on the basis of the relative share of total unemployment. The remaining 3% of total funding is distributed to states with civilian labor forces below 1 million and to states that need additional resources to carry out ES activities. Of the total allotment to states, 90% may be used for labor exchange services such as job search and placement assistance, labor market information, and referral to employers. The remaining 10% (Governor's Reserve) of the state allotment may be used for activities such as performance incentives and services for groups with special needs.
