Unemployment is a factor in the economy of a nation. When unemployment rises, the economy slows and wages remain flat. The federal government has found grants for reeducation to be an effective tool in combating unemployment and boosting the economy as a whole. These grants may be paid to the worker or the company to provide reeducation and training to the worker.

Economic Development Technical Assistance

Run by the Department of Commerce, the Economic Development Technical Assistance Program, or EDA, provides technical training to individuals. The EDA's mission is to increase technical skills in populations, stimulating economic development. EDA programs appear in rural areas to stimulate new enterprises in struggling areas. Grants are awarded to new and existing businesses to hire and train new workers, reducing unemployment in an area. Applications are available online at federalgrantswire.com/unemployed-federal-grants.html.

Job Opportunities for Low-Income Individuals

The Job Opportunities for Low-Income Individuals, or JOLI, is a grant program run by the Department of Health and Human Services. JOLI is designed to promote new job creation in areas hit with low income and high unemployment. Grants are provided to companies for training and development of workers, creating a skilled workforce. JOLI grants are used by new businesses and expanded companies to hire new workers. JOLI applications are available online at federalgrantswire.com/unemployed-federal-grants.html.

State Workforce Services

State programs for workforce development provide free training and grants for college education. Training programs teach skills for free. Grants can be used for in-state tuition to colleges for new career degrees. Each state runs their application and training program. The requirements and amounts differ from one state to another. Applications are available online and at the local unemployment office.

Pell Grants

Pell grants are educational grants offered by the federal government for education. President Barak Obama increased Pell grant amounts to $5,350 in 2009. Pell grants are money for education that do not have to be repaid. Unemployed persons may qualify for Pell grants without affecting unemployment income. More information on Pell grants is available online at fafsa.ed.gov/.