WIOA State Plan Common Elements

II. a. 1. A. Economic Analysis

i. Existing Demand Industry Sectors and Occupations

The island of Guam was placed on shutdown by the Governor of Guam on March 16, 2020 due to the coronavirus pandemic. All non-essential government of Guam operations were shut down due to confirmed COVID-19 cases that were reported.  The COVID-19 is a global pandemic.

FORECAST FOR GUAM’S ECONOMY IN 2020

Compared to our forecast of zero growth to possibly a +1% growth of Guam’s economy in 2019, we forecast Guam’s economy to experience no or slightly negative (around - 0.2%) growth in 2020. This forecast is based on the following assumptions:

• a modest increase in consumer spending, driven largely by employment opportunities from the 2020 Guam Census and the opening of the Tsubaki Tower;
• a continued decrease in business spending since 2015 as has been shown in the official Guam’s GDP estimates by the U.S. Department of Commerce-Bureau of Economic Analysis;
• possibly a modest increase in GovGuam spending based on prediction of an increase in revenues for FY2020 compared to FY2019;
• a significant decrease of $138 million in NDAA funding from FY2020 compared to FY2019, AND assuming no additional reduction in other Federal Government funding; and
• a continued growth in tourism in terms of visitor arrivals and on-island spending similar to that experienced in 2019. Any additional loss of Federal Funding and/or visitor spending could worsen the growth forecast stated above

FEBRUARY 3, 2020

The University of Guam Regional Center for Public Policy issued its 2019 Economic Report, which was completed on Dec. 30, 2019, and the forecast isn't good.

The report projected the local economy will post zero growth or show a decline of about -0.2% this year.

Defense spending on construction projects is down. Private sector investments are timid in light of the lack of skilled labor to take on major construction projects.

Tourism was going to be a bright spot for the local economy, the report states. But after the report was issued, it started to dawn on many that international travel and tourism will be down for a while. The global spread of the novel coronavirus out of Wuhan, China, has prompted many airlines to scale down because many people are afraid of getting the virus during their travels or while in flight.

Guam doesn't have direct flights from China but many tourists, primarily from Japan and South Korea have nixed their travel plans for Guam. As of Friday, about 1,600 had canceled plans to travel to Guam this month. The economic forecast for Guam did not yet take into account the rapidly evolving coronavirus challenge the entire world is facing. 

In the report released last week, Maria Claret Ruane, its principal author, who holds a doctorate in economics and is a professor of economics at the university, stated: “Even if the strong performance in tourism from 2019 is experienced again in 2020, the cutback of $138 million in the NDAA budget will, at best, bring the Guam economy back to 0% or even possibly -0.2% growth in the year 2020,” Ruane stated.

The forecast for this year is based on the following assumptions:

• a modest increase in consumer spending, driven largely by employment opportunities from the 2020 Guam census and the opening of the Tsubaki Tower;
• a continued decrease in business spending since 2015, as has been shown in the official Guam GDP estimates by the U.S. Department of Commerce Bureau of Economic Analysis. This is primarily due to the uncertainty of bringing in H-2B employees for civilian projects. Some of this could also be due to the continuation of the higher business privilege tax as well as the higher minimum wage;
• possibly a modest increase in government of Guam spending based on the prediction of increased revenues for fiscal 2020;
• a significant decrease of $138 million in NDAA funding compared to fiscal 2019; and
• continued growth in tourism arrivals and on-island spending similar to 2019.

Now the state of Guam's tourism, and the 21,000 workers who depend on it, is at best unknown. The economic climate is really something elected officials should focus on.

Elected officials know they need to do something. Making sure our private sector employers have the government support to sustain jobs, along with keeping our community safe, getting rid of the drug menace, fixing our problematic and costly health care system, providing good educational foundation for our kids and providing a safe and humane environment for our homeless and less fortunate should always be among our elected officials' priorities.

But if you look at government officials' activities lately, it doesn't seem like they've been on point.

NOTE:  MEDIA NEWS ARTICLES WERE USED AS REFERENCES.

The COVID-19 pandemic was after this report was released.  It was not factored into the economic forecast and how it dramatically affected the economy.

i. Existing Demand Industry Sectors and Occupations

Provide an analysis of the industries and occupations for which there is existing demand.

(From Economic Outlook 2021 report by Gary Hiles, Chief Economist, GDOL)

While the momentum for growth is building, it must be recognized that there is a myriad of possible global health, economic, political uncertainties, as well as potential natural disasters that could impair the anticipated continued growth scenario. The most immediate risk of impairment of the growth in tourism and the economy at large is the fear and spread of the Wuhan coronavirus. 

The global, national, and regional economic environment is reviewed as Guam's economy functions and is influenced by a myriad of interrelated influences. Guam-specific tourism, investment, and defense activities will also significantly affect the outlook. 

The outlook for Asian economies, which affect Guam's economy mainly through tourism and also through secondary effects on intertwined activities among various countries, are provided in Table 1. 

A quickly developing health issue could impair some of the economic growth projections as well as effect tourism and travel plans. The impact is unknown at this time and should be watched carefully. 

A January 26, 2020 CNN report stated: “China's Xi warns of grave situation as coronavirus death toll continues to rise” More than 50 people are dead -- all in China -- as the Wuhan coronavirus continues to spread throughout Asia and the rest of the world. Nearly 2,000 cases have been confirmed in mainland China. More than 40 confirmed cases have been identified in 13 places outside mainland China. And 62.8 million people have been affected by Beijing's attempts to either partially or fully lock down affected cities. 

Guam public health officials held a briefing January 24, 2020, in which Department of Public Health and Social Services Director Linda Denorcey said: "it's still considered a low risk for Guam, …this is a new virus and although Guam is at low risk this can change at any minute." 

Part of the slowed growth can be attributed to the limited construction labor supply with declining H-2B workers, and a sharp decline in Japanese tourism due to international tension between North Korea and the United States. The momentum for growth is building, but it must be recognized that there are a myriad of global economic and political uncertainties including natural disasters which could impair continued growth scenario. 

The fear of spreading Wuhan coronavirus is currently impairing tourism globally, with Guam’s economy taking a severe hit as tourism is one of the top economic drivers. As of Feb. 27, 2020, the Guam Visitors Bureau reported a total of 31,366 tourist cancelations. The reduced visitor numbers are forcing local restaurants and other businesses to adjust as they try to cushion the impact. Statistics for February 2020 showed almost a 30% decrease in tourist arrivals from Korea compared to the same month last year.

As of March 5, 2020 there have been more than 3,200 deaths globally and over 94,000 have been infected. The World Health Organization (WHO) has declared the outbreak a public health emergency of international concern, according to a CNN article.

Tourism 

The fear of spreading Wuhan coronavirus is currently impairing tourism globally, with Guam’s economy taking a severe hit as tourism is one of the top economic drivers. As of Feb. 27, 2020, the Guam Visitors Bureau reported a total of 31,366 tourist cancelations. The reduced visitor numbers are forcing local restaurants and other businesses to adjust as they try to cushion the impact. Statistics for February 2020 showed almost a 30% decrease in tourist arrivals from Korea compared to the same month last year.

While the momentum for growth is building, it must be recognized that there is a myriad of possible global health, economic, political uncertainties, as well as potential natural disasters that could impair the anticipated continued growth scenario. The most immediate risk of impairment of the growth in tourism and the economy at large is the fear and spread of the Wuhan coronavirus. (From Economic Outlook 2021 report by Gary Hiles, Chief Economist, GDOL)

Tourism expenditures represent the largest share of the sources of funds flowing into the Guam economy. Tourism sales have been estimated by Tourism Economics to be $1.8 billion in 2016. Increases in tourism expenditures, therefore, should positively impact revenue and employment primarily in sectors tourism-support industries including transportation, services, and retail trade as well as indirect effects economy-wide. 

According to a January 7, 2019, Guam Visitors Bureau press release, Guam achieved the best Calendar Year arrivals in the island's history with 1.55 million visitors. It was the third consecutive year of an increase in the annual total. Visitor spending is also up. According to GVB’s surveys, the average on-island spending as of the third quarter of 2019 was $580, an increase of about $200 over 2018’s $391 for the same period. The total number of arrivals in the calendar year 2019 was a record high, with 1,666,665 visitors. This growth in arrivals is directly related to the overall increase in available seats to Guam. There were 11,340 flights in 2019, with 2,287,996 seats available, a 7.7 percent increase from the number of seats available in 2018. 

Construction 

Construction is expected to increase since there is increased demand as well as recent substantially expanded capacity to meet more of the demand. The total value of building permits for civilian projects and Department of Defense (DOD) construction contracts has been increasing substantially. The total in 2015 was $385.6 million, in 2016, $460 million, in 2017, $591 million in 2018, $661.3 million and in 2019 $903.2 million. Also, the number of H-2B workers has continued to increase, and more have been approved for entry. 

The number of H-2B workers in construction has increased from zero (0) in May 2018 to 1,230 as of December 31, 2019, of just over 2,100 positions approved for entry by the U.S. Citizenship and Immigration Services (USCIS). Employment in construction has increased over the year from 5,800 employees as of March 2018, up to 6,760 in March 2019. Construction activity is expected to see additional increases over-the-year in the neighborhood of ten to twenty percent. Since construction accounts for approximately ten percent of total civilian employment, a ten percent increase in construction alone should increase total civilian economic activity and employment by about one percent and a little more if indirect effects are considered. 

In early 2016, the Department of Homeland Security (DHS) began disapproving virtually all H-2B workers petitions. As of December 31, 2015, there were 1,570 H-2 workers on Guam, 1,334 of them in Construction Trades. The number of H-2 workers continued to decline as their work visas expired until May 2018 when there were zero (0). Since then, the numbers have been gradually increasing for DOD and related wor

The Guam Contractors Association filed a lawsuit which sought to enjoin the government from administering the program in a way that may substantially deviate from its previous administration in Civil Case No. 16-00075 — Guam Contractors Association v. Sessions.

The District Court of Guam granted class-action status to the lawsuit and 11 other plaintiffs. The case remains in litigation. The National Defense Authorization Act for FY 2018 provided an exemption to the “temporary need” requirement and authorized up to 4,000 H-2 workers annually for certain health care workers on Guam and in the CNMI, as well as for workers directly connected to, or directly associated with, the planned military realignment of U.S. Marines from Okinawa, Japan, to Guam. The FY 2019 National Defense Authorization Act (NDAA) also eliminated the annual cap of 4,000 H-2B workers. Two significant federal policy actions have recently occurred. This includes the possible use of Guam DoD project funding for border barrier projects and a ban on admission of workers under the H-2B category for Philippine citizens. On February 15, 2019, President Donald J. Trump declared a national emergency that requires the use of the armed forces and authorized the use of title 10, U.S. Code, section 2808.

According to a DoD fact sheet in regards to identifying the potential pool of sources of military construction funds, DoD will apply the following criteria:  No military construction projects that already have been awarded and no military construction projects with FY 2019 award dates will be impacted.  No military housing, barracks, or dormitory projects will be impacted. As the pool of projects that could possibly be used for section 2808 projects exceeds the needed amount, the appearance of any project in the pool does not mean that the project will be used as a funding source. The fact sheet lists $348.6 million in Guam projects that could potentially be affected. However, since most of the construction that will occur in FY 2020 has already been contracted in previous years, the possible use of these funds will not have a significant effect in the upcoming fiscal year. The fact sheet notes that decisions have not yet been made concerning which border barrier projects will be funded through section 2808 authority and if the Department's 2020 budget is enacted on time as requested, no military construction project used to source section 2808 projects would be delayed or canceled.

Commencing January 19, 2019, the Department of Homeland Security announced that the Philippines is no longer on the list of countries eligible for entry to the U.S. under H-2A and H-2B visas for one year. The  2020 List of Approved H-2B Countries was published by USCIS on January 17, 1920 and the list remains the same as the previous year with no changes.The Philippines is still not on the approved list.  Since the policy does not affect those workers from the Philippines currently holding valid H-2 visas, those already on the island and those approved for entry, the change in policy will not reduce the current workforce in the near term, and should increase as more approved workers continue to arrive. The policy could present an additional obstacle to overcome for renewals and those petitions up for approval. The policy contains language that allows certain exemptions and approval of H-2 workers tied to national defense, however, the notice indicates that USCIS can approve H-2 petitions for beneficiaries from non-designated countries if USCIS determines – "based on the totality of the circumstances" – that it is in the U.S. interest for the individual to be a beneficiary of an H-2B petition. The notice identifies Guam's NDAA provision as an example of such national interest. That specific inclusion suggests that Philippine workers may continue to be approved for NDAA projects. In April 2019, notice was received that four contractors got approval for a total of 97 additional workers and 258 extensions of H-2B visas for workers from the Philippines.

A number of major civilian projects are ongoing. These include:  Tsubaki Hotel, which is being constructed by P.H.R. Micronesia, Ken Corp. It is to be a 26 story 340 room, five-star hotel offering luxury accommodations. The site is adjacent to the Hotel Nikko Guam with a total investment of about $180 million. The groundbreaking was March 2016. Completion was initially scheduled for October 2018. The completion date has been delayed and a 2019 completion was previously provided, but the grand but grand opening is now tentatively set for April 2020. It is expected to employ 290 people.  Guam International Airport Authority (GIAA) commenced construction in July 2017 on a new International Arrivals Corridor. The new Corridor will add a third level to the airport terminal. It is designed to separate arriving from departing passengers. The project was initially contracted at $97 million but is now projected to cost $117.8 million.The original completion date of September 2019 has been moved to July 2020. 

Low-Income housing tax credit financed housing by Guam Housing and Urban Renewal Authority for Summer Town Estates Phase III with 66 low-income units located at the old Lada Estates. The groundbreaking ceremony was held March 15, 2017, and the units are scheduled for completion in early 2019. Villa Del Mar LLC plans to build 50 units off the Kanada-Toto Loop in Mongmong for low-income families and homeless veterans. A groundbreaking ceremony for the project was held November 21, 2017. The program is under the jurisdiction of the IRS; GHURA awards credits to developers. The estimated cost for both projects is about $50 million.

Summer Towers formerly known as Emerald Oceanview Park, a $100 million four-tower development with plans for 260 luxury condominium units is on the cliff line next to Guam Memorial Hospital. The project was previously planned for completion in 2010 but encountered delays. The mortgage was taken over by CoreTech which had recently completed the most Southern tower and held an open house May 18, 2017. In January 2018, The Summer Towers' website indicated that the tower is entirely occupied. Work on the other towers are being performed but constrained by construction workforce availability; plans were for the remaining towers to be completed in late 2018 but work still remains.  Tumon Bay Mall has 200,000 square feet of floor space on two levels. Phase I work on the mall's exterior structure is completed, and Phase II is for work on interior finishing which is delayed for the availability of construction workers.  Fishermen's Co-Op project includes a 220-foot sea wall which will be a docking area for larger vessels, to include fishing, charter, and dolphin watch vessels and 6,000 – 7,000 square feet for the operational facility, now at an estimated cost of $6 million. In 2014 the Fishermen's Co-Op and GEDA signed a memorandum of understanding for the construction, repair, and improvements of the new facility. The project groundbreaking was January 28, 2017.

A new 270,000 square foot retail facility broke ground in Tamuning on February 10, 2020. The proposed Don Don Donki grand opening is September 2021. This is the set to be the largest store under parent company Pan Pacific International Holdings, which has 700 retail stores worldwide including Japan, Hong Kong, Thailand, Singapore and Hawaii, according to a February 11, 2020 Pacific Daily News article. The store is an affiliate of Japan’s famous Don Quijote brand. There will be a grocery store, restaurants, a barbecue area and 160,000 square feet of retail space. The store will sit on 14 acres of land at the corner of Airport Road and Marine Corps Drive, a busy intersection on the island. (Reference: https://www.guampdn.com/story/money/2020/02/11/don-don-donki-broke-ground-tamuning-open-sept-2021/4709647002/)

New restaurants have recently opened, adding opportunity for employment. These include:  Olive Garden Guam’s first Olive Garden, a chain Italian restaurant that opened in October 2018. Red Lobster also opened at the Tumon Sands Plaza on July 1, 2019.  Jolibee, a Philippine fast-food restaurant, opened in April 2019 and is located in a two-story building in the Micronesia Mall parking lot.  McDonald’s Yigo had its grand opening on November 17, 2018. It is located at the corner of Marine Corps Drive and Chalan Lujuna. An application for a proposed Guam International Airport Hotel has been submitted to the Guam Hybrid Land Use Commission. The proposal is for an 11-story, 246 room hotel across from the A.B. Won Pat International Airport's main terminal. The project plans include retail facilities and parking. The estimated project cost is $50 million and would employ an estimated 100 to 125 people.

(Information derived from 2018 Economic Outlook and BLS press releases).

MARINE CORPS RELOCATION

A substantial increase in construction activity will be the primary effect of the Marine Corps Relocation on Guam's economy in FY 2020. However the 2015 Record of Decision will come with many issues. The realignment plan introduced in 2010 was updated in August 2015 to reduce the number of marines and their dependents relocating to Guam to 5,000, with a longer time frame of  the actual move. The realignment cost is capped at $8.7 billion . About three billion of that will come from the Government of Japan. Delays to the plan are on going.

They are now expected to begin arriving around 2025, relocating slowly through 2027. The plan is summarized in an August 18, 2017 Pacific Daily News article. It includes “a Marine base on military property at Naval Computer and Telecommunications Station; housing Marine families in homes to be built within the fence at Andersen; developing a live-fire training range complex on 338 acres of land at Andersen, adjacent to the wildlife refuge at Ritidian; and developing a hand-grenade training facility at Andersen, South.” It also includes a number of off-base infrastructure capital improvements. These include civilian water and wastewater projects, port projects, road improvements for Route 1, 3 and 11 and Agana bridge projects.

Guam’s current existing demand industry sectors are the construction industry, tourism and the military buildup. The estimated $8.7 billion dollars for the relocation and buildup will also be spent on other projects including initiatives for facilities, intelligence, surveillance, infrastructure and logistic capabilities in Guam’s two main air bases, Andersen Air Force Base and Naval Base, and building at other locations, including relocating training centers from Okinawa to Guam. These construction projects inside the fence will continue well past 2022 as other issues with Guam are being resolved, such as cultural concerns and environmental impact.

Estimate of Employment Impact of Covid 19 on Guam │April 17, 2020 │Gary Hiles, Chief Economist │Bureau of Labor Statistics, Department of Labor

Purpose

This  Employment Impact Estimate is prepared to provide a current assessment of the number of employees who have stopped working due to the Covid 19 situation.  The impact on Guam is primarily comprised of two components, those that have stopped working due to the essentially complete closure of the tourism sector and those not working due to the Executive Order, which requires non-essential businesses to close.

Data Resources

There are several statistical systems in place to measure employment and unemployment on Guam.  The Bureau of Labor Statistics (BLS), Guam Department of Labor, conducts annual and quarterly surveys of employment and unemployment on Guam, similar to those conducted monthly in the United States. The Economic Census provides employment information every five years; the 2017 Economic Census was released in February 2020. The decennial Population Census, also conducted by the U.S. Census Bureau, collects employment and unemployment information, the latest published is for 2010.  

The County Business Patterns statistical employment data from the Social Security filings are produced annually for Guam but lags by a year or more in publication. The effects of the Covid 19 situation did not begin to have a measurable impact on the Guam economy until February 2020. The employment and unemployment surveys scheduled for the reference period of March 12^th 2020, and quarterly have been delayed for an undetermined time.  Employer Income tax withholdings receipts will provide an indicator of the aggregate payroll reduction but are subject to a payment and reporting lag, and they do not show the number of employees. 

Withholding tax information is reported in the Government of Guam Consolidated Revenue and Expenditure report. The filings for March are due to be reported by taxpayers by April 20, and the scheduled report date for that period is May 31, 2020.  The primary source of the number of persons laid off in the United States is from the state unemployment insurance programs.  This information is compiled from claims filed primarily online. Guam does not have such an unemployment insurance program or the statistical data from it.  

Due to the unavailability of such employment impact information since the onset of theCovid-19 situation,  an alternative approach was used to provide a current estimate of the employment effects on Guam.

Methodology

Economic Census data for the calendar year 2017 was used for the basis of these estimates. The Economic Census is a reasonably accurate measure of Guam's employment situation prior to Covid19. More current employment information for March 2019 published by the BLS, Guam, indicates that there has been relatively little change in the employment total and industry composition since that time.

The first component of employment reduction were reduced work hours and employment in the tourism-related industries.  At this time, tourism on Guam is at a virtual standstill.  In January, Guam had 43 incoming flights per day, primarily from South Korea and Japan, as well as other destinations.  Now there is at most two flights per day one from Honolulu and Tokyo operating as an essential lifeline service for cargo and very few passengers.  The flights from Tokyo no longer operate daily and arriving passengers are subject to quarantine or recent medical health documentation. To estimate the reduction in the number of persons effected by the reduction in tourism, the number of employees in each North American Industrial Industry Classification (NAICS) industry sector was reduced by the percentage of the business in each industry that was accounted for as measured by revenue receipts by tourists and hotels as the class of customers  for each industry.  The impact on employment due to the virtual shutdown of tourism is estimated to be an employment equivalent of just over 13,800 positions.  This number represents about 28 percent of the private sector employment and 21 percent of total employment on Guam.  The reductions are composed of both the partial and complete loss of work hours.  Comprehensive information is not yet available  about the number of these persons still receiving pay by taking leave or other reasons.  As employers are forced to implement layoffs, most of these employment reductions due to loss of tourism will soon be without pay if they are not already.

The second component of the Covid19 employment impact is due to business closure or operational reductions due to essential product sales restrictions. By reviewing the employment by industry detail with the required closures, it is estimated that an additional reduction in the range of 25,000 employees have been placed out of work at the current time.  This component represents about 50 percent of the private sector workforce and 38 percent of total employment. The combination of these two factors represents about 38.800 employees or about 78 percent of the private sector currently out of work. There may be a substantial number of additional employees out of work due to Covid19 related business closures for health reasons or business loss due to that stay at home practices and reduced consumer disposable income.  A limited number of employees in some industries are working at home.

NEWS ARTICLES ON EFFECTS OF CORONAVIRUS AND GUAM ECONOMY AND EMPLOYEES/EMPLOYERS (From the Guam Daily Post  April 22 & 23, 2020)

The Guam Chamber of Commerce has a recovery plan that considers lifting restrictions – beginning with allowing sales of nonessential items such as rice cookers and children’s clothing – gradually but with the goal of reopening the island for business over the next few months.

“Getting back to work means returning to a life that we are familiar with: the ability to gather as family and friends. To interact in communal activities and fellowship. To engage in commerce and activities that help us improve and increase our livelihood,” Chamber officials write in their summary. “As a great number of us sit at the edge of our seat waiting for the ‘go’ signal to return to work, we all recognize that the decision is based on the health and safety of the community by public health experts.”

The governor has said that with the recent low numbers of new COVID-19 patients, she will lift restrictions after May 5. She warned that the entire process must be done “gradually” to help prevent new cases that could flare as interactions between people will likely increase.

An approved plan, created by the governor’s economic recovery team, is expected on Friday. Guam Chamber Chairwoman Christine Baleto, along with members of the business and health community, are on the governor’s panel.

The Chamber hope’s the recovery panel will consider the phase-in proposal which was developed independently of the governor’s advisory group. The Guam Chamber of Commerce is offering their plan, which makes incremental steps and goes beyond June 22 to a phase four that assumes local and global recovery from the pandemic.

Businesses deemed “nonessential” have been closed since March 20 under the governor’s executive order, which was twice extended.

The Chamber based the plan on recommendations from the White House, the U.S. Chamber of Commerce and a committee of members from various industries.

The proposal also takes into consideration sanitation and social distancing guidelines from the U.S. Centers for Disease Control and Prevention and Department of Health and Human Services.

The Chamber noted that Guam should also engage with regional partners and tourist markets to bring back travel. They also recommend learning from other countries’ experiences to form strategies that reduce the risk of new clusters of the infection and developing procedures so the island can restart more quickly in the case of another shutdown.

Jobless Benefits in May

Some 1,715 employers with displaced workers have so far registered online to help their employees apply for federal unemployment benefits.

By the time funds are received and checks are cut by late May, many people would have been out of a job for two to three months.

The Pandemic Unemployment Assistance Program and Federal Pandemic Unemployment Compensation Program cover employees who are now jobless, furloughed, or getting pay cuts because of the coronavirus pandemic. Gov. Lou Leon Guerrero on Tuesday said the application period for federal unemployment benefits may begin in the second or third week of May.

As of Tuesday, 1,715 employers have so far registered on the Guam Department of Labor's virtual one-stop system, hireguam.com, based on preliminary department data.

This number still needs to be refined, because GDOL has been getting an influx of employees registering as employers. On Tuesday, GDOL issued updated guidance from the U.S. Department of Labor, stating that those who are self-employed or self-contracted do not need to register as employers on hireguam.com.

When the application process opens, there will be a breakout section for self-employed and self-contracted individuals. "They will be treated as employees," GDOL stated. As of Tuesday, there's no date when the application will begin, other than the governor's estimate of the second or third week of May.

For Guam, the unemployment checks for eligible residents are up to $945 a week for the first 13 weeks of benefits, then $345 a week for up to 26 weeks after that. The benefits are retroactive to the date the employee lost their job, was furloughed or got a pay cut.

Dual Verification

Employers and business owners must register their organization if they are experiencing business shutdowns, layoffs, furloughs or reduced hours caused by COVID-19. The registration requirement allows GDOL to have a dual verification process for when employees apply for federal unemployment assistance.

“The new module is being set up, but I am working hard to be able to get applications into the hands of our displaced workers and those who have had their hours reduced so they may receive benefits as quickly as possible during this global health crisis," GDOL Director David Dell’Isola said in a statement.

The governor said GDOL is in the process of hiring 50 people who will be able to work the program. The employee application process will be done online, but there will also be a manual application process for those who do not have online access.

Dell’Isola had said the unemployment programs could cost as much as $900 million, which would be the single largest federal unemployment aid for Guam. Some 38,000 individuals on Guam are expected to apply for the federal unemployment aid programs.

More information about the COVID-19 and Unemployment Assistance is available online at the department’s website at dol.guam.gov.

ii. Emerging Demand Industry Sectors and Occupations

Telecom

A connectivity gap exists in the Pacific Islands, leaving millions without access to mobile data. This connectivity gap would limit island residents’ “ability to participate in the digital economy and take advantage of the opportunities it can offer,” according to a GSMA Intelligence report, the definitive source of mobile operator data, analysis and forecasts, delivering the most accurate and complete set of industry metrics available.

There has been a shift to mobile broadband from wired internet, which, according to the report, reflects an increase in smartphones. GSMA Intelligence attributes this shift to the declines in smartphone prices and the emergence of new, low-cost smartphone vendors.

To bridge the connectivity gap, there will need to be major investments in infrastructure improvements. 5G technology is the biggest thing Guam’s major telecom companies, Docomo Pacific and IT&E, are doing this year — and will be for years ahead. This requires many more sites to be constructed as the coverage it provides is much smaller than a typical cell site.

Industries and businesses will be built around this new technology. We will also need more high speed broadband fiber as this technology grows to assist in backhauling data to various network centers. According to GSMA, most Pacific Islands lack “properly developed innovation ecosystems due to the limited size of the individual markets, the complexity of developing sound infrastructure between the archipelagos and the significant leverage of larger regional hubs in Asia Pacific.

Guam, for instance, hosts a dozen or so undersea cables that carry terabytes of data between Asia, the United States and Australia. Smartphones make up 30 percent of total connections and are forecasted to skyrocket to 65 percent by 2025. Marines from Okinawa would begin arriving on Guam “in the first half of the 2020s.” This is the advent of a new era. This population surge will also increase the island’s telecom needs.

iii. Employers’ Employment Needs

Guam has been implementing the six (6) core programs co-located at the American Job Center (AJC) for workforce development with both employers and employees of the public and private sectors. The six (6) core programs are: 

Under Title I of WIOA

1. the Adult program 
2. the Dislocated Worker Program 
3. the Youth Program (Title I), 

Under Title II

4. the Adult Education and Family Literacy Act Program 

Under Title III

5. the Wagner-Peyser Act Employment Service (ES) Program and

Under Title IV

6. the Vocational Rehabilitation program (authorized under Title I of the Rehabilitation Act of 1973, as amended by Title IV). 

The COVID-19 pandemic changed the face of the economy. Due to the COVID-19 pandemic, Rapid Response (RR) services were also readily made available to Guam workers who lost their jobs and were laid off, had reduced hours of work or furloughed and needed unemployment assistance.  Guam does not have unemployment coverage but was allowed by the U.S. Department of Labor to implement programs under guidelines for processing from the CARES Act with the Pandemic Unemployment Assistance (PUA) program and the Federal Pandemic Unemployment Compensation (FPUC) program to cover employees who are jobless. A lot of private sector jobs were interrupted by the COVID-19 situation.

Now more than ever, the Guam Department of Labor (GDOL) along with its core partners, Guam Community College (GCC), and Department of Integrated Services for Individuals with Disabilities (DISID) with the Division of Vocational Rehabilitation (DVR) are working to make collaborative efforts and improvements to continue assisting job seekers left jobless from the COVID-19 pandemic. With the core programs and partner programs outlined in the new Guam 2020 Combined State Plan as well as innovative ways and means to provide available programs and services, these unemployed individuals will once again be gainfully employed.  

Guam’s 2020 Combined State Plan has history with the WIOA programs.  It has seen the changes that needed to be made to meet the needs and requirements of the programs and services from our Federal partners.  The responsibilities of the department go far beyond what’s going on in the day to day of business but that WIOA emphasizes career pathways and upskilling, reskilling of job seekers to be more resilient in securing better paying jobs, upward mobility, and earn more in their employment and standard of living.  That includes apprenticeship programs and training, even PARPI. There are numerous types of apprenticeship programs with sponsors available at the AJC:

• PARPI
• GRAP
• Apprenticeship Expansion Grant

The Guam Department of Labor Director announced that the first increment of unemployment compensation for both the PUA and the FPUC will be received by May 15, 2020.

The latest development with the Guam Department of Labor is that it plans to install two laptop computers in every village so residents who are unemployed because of the pandemic can use them to apply for federal unemployment assistance payments. A pandemic unemployment assistance center also will be created at the Guam Community College campus, in Mangilao, with dozens of laptops on site, and at government public health centers. The government of Guam expects to receive some of the federal unemployment funding but the completion of the online application process must first be created and completed for Guam.  Altogether, at least 75 new laptops will be installed in government related facilities islandwide, and outlines the GDOL federal grant application, projected budget and implementation plan for federal unemployment assistance.

There are numerous sections in Guam’s 2020 Combined State Plan and also has an Executive Summary.  These sections present the Overview of the WIOA State Plan Required Elements and include Wagner-Peyser.