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Employment and Changing Occupational Patterns in the Railroad Industry

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Employment and Changing Occupational Patterns in the Railroad Industry E mployment and C hahging O ccupational Patterns in the R ailroad I ndustry Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Cover picture: The rapid shift from steam to diesel-electric locomotives exemplifies technological change on the railroads. Courtesy of Erie Railroad Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Employment and Changing Occupational Patterns in the Railroad Industry 1947-60 Bulletin No. 1344 February 196S UNITED STATES DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS W. Willard Wirtz, Secretary Ewan Clague, Commissioner Digitized for FRASER http://fraser.stlouisfed.org/For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington 25, D.C. Price 30 cents Federal Reserve Bank of St. Louis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis PREFACE Shifts in the relative importance of industries and occupations are inevitable in an economy typified by constantly changing markets, technology, resources, and other structural character­ istics. The railroad industry is a prime example of the effects of such change. Once an industrial giant exemplifying a pioneering and expanding Am erica, railroads have not kept pace with general economic growth in the post-World War II period. Railroad employment has fallen sharply and, in the process, many occupa­ tions have been severely affected. This bulletin analyzes employment trends and occupational changes in the railroad industry in the 1947-60 period. The study is part of the continuing program of research on the changing industrial structure and occupational composition of the American economy conducted by the Bureau of Labor Statistics. The Bureau is grateful for the cooperation of railroad industry and union officials and representatives of government agencies who cooperated generously in reviewing and commenting on the draft of the study. The photographs included in this bulletin were supplied by the Association of American Railroads. This bulletin was prepared by Bernard Yabroff and William Kelley with the assistance of Catherine F. Delano, of the Bureau’s Division of Manpower and Occupational Outlook, under the supervision of Sol Swerdloff, Chief, under the general direction of Harold Goldstein, Assistant Commissioner for Manpower and Employ­ ment Statistics. 111 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis CONTENTS Page Postwar employment d e c lin e ................................................................ 1 Changes in occupational structure.............................. 7 Maintenance employees ........................................................................... 10 Equipment and stores.................................................................... » .. 10 Way and structures....................................... ....................................... 12 Roadway maintenance....................................................................... 13 Structures maintenance . ................................................................ 16 Signal and telegraph........................................................................ 17 Transportation employees (other than train, engine, and yard ).............. 18 Train, engine, and yard employees................................... ............. 20 T e rm in a ls....................................................................................... .. « . 21 Road freight service .................... .................................................... 22 Road passenger service ............................ 23 White-collar employees..................... 0 . ........................ .................... 23 Clerical personnel......................... 23 Professionals, subprofessionals, and agents ........................ 24 Executives, officials, and staff assistants ............................... 25 Miscellaneous service employee s . „ ............................................. 25 Selected bibliography................................ 27 CHARTS 1. Wage and salary workers employed in all nonfarm, manufacturing, railroad, and transportation (except railroad) industries, 1947-60 .............................. 2 2. Employment, revenue traffic, and output per man­ hour, Class I railroads, 1947-60 .......................................... 3 3. Intercity passenger-m iles, 1949-60 ........................................ 4 4. Decline in major railroad occupational groups, 1947-60 ................ 8 5. Railroad employment in selected occupational groups, 1947-60............................................................................... 9 v Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Employment and Changing Occupational Patterns in the Railroad Industry 1947" 60 Changes in the relative importance patterns of transportation and produc­ of occupations within an industry occur tion. Employment fell substantially in not only in industries in which em ploy­ many railroad occupations and dra­ ment is expanding, but also in those in matically in others, showed little which employment is declining. No­ change in some, and even increased where is the latter situation more dra­ in a few. As a result of these changes, matically illustrated than on the Na­ the relative importance of major rail­ tion's railroads, where the occupational road occupational groups has shifted. structure has changed during a time This study is concerned principally of severely declining postwar employ­ with employment changes that occurred ment resulting from widespread tech­ in railroad occupations between 1947 nological developments and changing and 1960, and their underlying causes. Postwar Employment Decline The employment decline on the rail­ 40 percent, in little more than a decade roads in the postwar period was an (chart l). (Preliminary data from the acceleration of a longrun trend. From Interstate Commerce Commission indi­ an alltime peak of about 2 million in cate that by 1961, railroad employment 1920, railroad employment fell to 1*4 had fallen to about 730, 000.) million in 1947. By i960, employment was down to about 790,000,1 a decline The 1947-60 decline on the rail­ of approximately 600,000, or more than roads was numerically much greater than in any other industry.2 Never­ theless, because of the widespread geographical dispersion of the rail­ 1 Employment data, 1920-60, are for Class road work force, the extent of the em­ I and Class II railroads. Transport Statistics ployment decline on the railroads gen­ in the United States, I960 (interstate Com­ erally has not received as much na­ merce Commission, Bureau of Transport Ec­ tional attention as that of other in­ onomics and Statistics), Pt. I, table 155, p. dustries with substantial, but less 107. Occupational employment data from 1947 to 1960 analyzed later in this article are for extensive, employment losses. There Class I line-haul railroads, which account for has been, of course, intense local con­ more than 90 percent of all railroad, employ­ cern over the impact of declining rail­ ment. These data, covering 128 occupational road employment in particular commu­ divisions (classifications) for which the Com­ nities largely dependent on railroad mission collects employment information, operations. are available annually in the source cited above, table 69. Typical occupational titles under each of these classifications are listed Postwar employment decline on the in Rules Governing the Classification of Rail­ railroads mainly resulted from ex­ road Employees and Reports of their Service tensive developments in railroad tech­ and Compensation, prescribed by the Inter­ nology (chart 2) and the loss of busi­ state Commerce Commission, effective Jan. 1, ness, mainly passenger, to other modes 1951, and published by the Association of transport. Competition from other of American Railroads, Washington, Do Co , common carriers (trucks, buses, pipe­ Aug. 1951. lines, and airlines), private truckers, 2In the two industries with the next largest and passenger automobiles stimulated employment declines between 1947 and I960-- the introduction and improvement of textiles and bituminous coal mining--the machines and equipment, materials, numbers of workers fell about 390, 000 (29 and methods of operation on the rail­ percent) and 260, 000 (60 percent), respec­ roads. tively. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Chart 1. Wage and Salary Workers Employed in All Nonfarm, Manufacturing, Railroad, and Transportation (Except Railroad) Industries, 1947-60 * Includes employment in local and suburban transportation-, intercity and rural buslines; motor freight transportation and storage; air transportation, common carriers. UNITED STATES DEPARTMENT OF LABOR Source: Railroads, Class I and EL employment, Interstate Commerce Commission; BUREAU OF LABOR STATISTICS other: Bureau of Labor Statistics. The pressure to introduce labor- ing employees was negotiated in 1952 on saving innovations has also been attrib­ an optional basis; by I960, it covered uted, in p a r t, to increasing railroad most terminal operating employees. wage rates and other labor costs.3 One of the factors that contributed to increased labor costs was a reduction The effects of growing
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