Employment and Economic Growth Act

Employment and Economic Growth Act - Directs the Secretary of Labor (the Secretary) to make grants to States and service delivery areas (SDAs) to assist local job projects.

Requires that 90 percent of appropriations for this Act for each fiscal year be allotted to States for allocation to SDAs on the basis of: (1) relative number of unemployed individuals residing in areas of substantial unemployment within each SDA; and (2) relative number of economically disadvantaged individuals within areas of substantial poverty in each SDA. Requires that the remaining ten percent of appropriations be distributed by the Secretary on a competitive basis to SDAs experiencing long-term or high unemployment or poverty.

Requires expenditure of the following minimum portions of each SDA allocation: (1) at least 70 percent for employment projects, including wages and benefits, for individuals employed in public service or public works jobs; and (2) at least 15 percent for employment benefits. Limits the maximum portion of such allocation which may be expended for: (1) on-the-job training contracts to 25 percent; (2) supplies, tools, and equipment to ten percent; (3) administration, intake, and assessment to ten percent; and (4) education, basic skills, classroom training, and supportive services (such as transportation, stipends and child care) to 20 percent.

Makes individuals eligible for project participation if they: (1) are at least 16 years old; and (2) have been unemployed for 30 days from a full-time position or are working part-time because of being displaced from a full-time position. Requires SDAs to give priority for participation to: (1) individuals receiving unemployment insurance for at least three months, individuals receiving cash welfare assistance, veterans, discouraged workers, the homeless, and any member of such additional group as the SDA defines as "at risk" in its job training plan; and (2) individuals with basic skill deficiencies and individuals who do not have a certificate of graduation from high school or recognized equivalent. Make ineligible for participation individuals eligible for retirement benefits.

Sets forth wages, maximum hours, benefits, and working conditions for participants, including supportive and employment-related services.

Sets forth requirements for administration of projects. Requires SDAs, in order to receive such project funds, to provide specified types of amendments, supplements, or modifications of their job training plans which are submitted to the State under the Job Training Partnership Act (JTPA). Provides for review and approval of such supplemental job training plans by the Governor.

Sets forth types of community service jobs and community improvement jobs that may be made available to individuals with funds provided under this Act.

Sets forth program design requirements, limits on the maximum number of supervisors, and prohibited expenditures.

Grants the Comptroller General, the Secretary, and the Inspector General of the Department of Labor the same administrative and investigating authority with respect to funds under this Act as under specified JTPA provisions.

Authorizes appropriations.