Size of Firms Covered by Old-Age and Survivors Insurance, 1945-48

ment? What is the effect of above- atmosphere of his home, his relation discussion, inquiry, and activity average wealth? Is physical hard- to the community, the type of com- throughout the country. Such com- ship, or over-protection, a 1 w a y s munity he finds himself in. All these mittees have been at work for some harmful? If not, at what point do aspects of the problem must be under- time in every State and Territory, and they become harmful? How much of stood before we can plan for healthy an Advisory Council on State and what appears to be the effect of pov- personality development. The fact- Local Action is an integral part of the erty or wealth is actually due to com- finding staff has the job of bringing Conference structure. munity attitudes? together as much of this information In addition, several hundred na- The questions that must be put to as possible so that we may see where tional organizations devoted to the the social-psychologist are endless. we stand. interests and welfare of children are What effect have national, or local, setting up discussion groups, evaluat- standards of excellence on character Planning for Action ing their programs in the light of the development? How do these stand- Conference theme, and initiating ards differ among the various geo- When all the facts are in, the most projects and studies closely related to graphic, ethnic, and economic groups important thing brought tc light will it. Young people are at work on all that make up our Nation? How do probably be the gaps-the unanswered aspects of Conference activity and are prejudice, discrimination, and segre- questions-that will show us where coordinating their interests and con- gation affect the children toward further study should be made. But tributions through an Advisory Coun- whom they are directed? How do there will also be information on im- cil on Youth Participation. There are these attitudes affect the children proved procedures that could be put also 37 Federal offices that are making who hold them? into practice at once. To direct such studies and generally contributing There are relatively few branches research or organize such practice is their resources of technical skills and of study that may not have something beyond the power of any one commit- experience to the Conference activi- to contribute to this problem. The tee or organization. What is needed ties. family is basic and strategic. Re- is a Nation-wide, cooperative effort When the Conference meets in De- ligion and the church have their vital involving many groups and countless cember the findings of all these groups role to play. The schools, which are individuals. It is expected that the will be brought together. In the light usually the child’s first contact with Conference will stimulate this type of all the information before them, the larger community, are obviously of work, which will be carried on by the several thousand participants will important. But there are also the local organizations throughout t h e formulate principles, draw up recom- courts, social services, health services, whole decade of the 1950’s. mendations, and suggest lines of post- recreation groups and clubs, and em- At the request of President Truman, Conference action. And it is hoped ployment services. the Governors of all States and Ter- that these same groups will carry The factors that contribute to a ritories have appointed White House the recommendations back to their child’s personality undoubtedly lie in Conference committees. These local areas and assist in putting them his physical condition, the personal groups, in turn, are stimulating local into practice.

Arms went up 4.2 percent, and the number of employees increased 2.1 Notes and Brief Reports percent. Size of Firms Covered by For the pay period ending nearest The postwar shift in the composi- Old-Age and Survivors the middle of March 1948, about 2.6 tion of American industry toward million employing organizations * re- firms of smaller size is illustrated by Insurance, 1945-48 ported the employment of an esti- the marked increase-580,000, or 30 The majority of the workers cov- mated .35.8 million workers in jobs percent-from 1945 to 1948 in the ered by old-age and survivors insur- covered by old-age and survivors in- number of firms with .fewer than 50 ance are employed by large Arms of surance (table 1). As compared with employees. For firms of all sizes the 100 or more employees. Prom 1945 the number for the 1945 mid-March increase amounted to 589,000. to 1948,’ however, there was a shift Pay period, the number of firms had Firms with 8-19 employees ex- toward firms of smaller size, together increased by about 29 percent.3 The perienced the greatest percentage in- with a slight decline in the relative number of employees had increased by crease in number of firms-39 importance of the larger Arms as 3,002,000, or 9.2 percent. In the 1 percent-although firms with l-3 em- measured by the number of employees Year from 1947 to 1948 the number of ployees had the greatest numerical and average wages paid. During this increase-314,000. 2 The terms “employing organieation,” Because these data 4 on size of con- period the number of employing or- “employer,” “firm,” and “concern,” are ganizations increased at a faster rate used interchangeably in this discussion: cerns reflect the number of persons than the number of covered em- they refer to the legal entity flling the ployees. tax report. 4Data like those in table 1, claasifled a Excludes employers with covered by industry, State, and county of the workers at some time during the flrst employing organization, are tabulated by l All data in this discussion pertain to calendar quarter but with no employees the Bureau of Old-Age and Survivors In- the Arst quarter of the year. in the pay period nearest March 16. surance.

16 Social Security working for an entire employing or- Table l.-Estimated number and percentage distribution of employers, wage ganization in the mid-March pay pe- items, pay-period employment, and amount of taxable wages by size of con- riod, there are many instances in cern, first calendar quarter 1945-48 which the reported number of work- [Data based on tabulations of almost 100 percent of the quarterly employer tax reports, adjusted to include employers who reported too late for inclusion in the tabulations; the number of employees in the mid-March ers represents employees in more than pay period estimated for the employing organizations that faded to report such information. Estimates one plant or place of business. A large corrected to Apr. 15, 19501 business organization comprised of several separately incorporated enti- Number of employees in concern 1 ties, however, is represented here as several employers, although it is or- dinarily regarded as a single employer. Number or amount In each of the years 1945-48, better - - than nine-tenths of all employers had Employers (in thou- fewer than 20 employees, but only sands): 1 1945..~--_-----~-_~. 2,OOl.O 23.3 1,174.3 404.0 233.4 100.5 34.0 25. 6 3.2 2.6 0.2 one-fifth to one-fourth of all workers 1946_._____ -__--___- 2.280.0 29.2 1,288.O 482.1 293.3 115.9 38. 1 27.7 3.1 2.5 0.2 in the mid-March pay period of each 1947-___ --__--__---- 2,486.7 40.4 1,415.7 519.13 314.8 121.6 39. 6 28.9 3.3 2.8 0.2 1948....~------~--- 2,590.o 42.4 1,488.5 537.2 325.0 122.3 39. 3 29.0 3.3 2.7 0.2 year were in the employ of these con- Employees (in thou- sands): 1 cerns. By contrast, the approximately 1945...~~~--~-~-~--- 32,803 0 1,949 2,078 2,759 3,018 2,322 5,269 2,233 6,554 6,623 1946..~~~------~--- 32,483 2,194 2,507 3,496 3,483 2.611 5,581 2,157 6,183 4,270 1.3 percent of the employing organi- 1947..-~~---~---~--- 35,057 : 2,382 2, 650 3.704 3,5Q?l 2,676 5,782 2,269 6,794 5, 201 zations with 100 or more employees 1948..~_-~--_-~~--_~ 35,805 0 2,497 2,739 3,832 3,662 2, 690 5,779 2,281 6,812 5,513 Taxable wages (in accounted for 63 percent of the work- millions): 6 1945-.---__._w_--.. 8; ;;; $23 $793 1,148 L1,408 Pi, ;g ;2,740 il, 242 ;4,043 A, 715 ers in 1945 and 57 percent in 1948. 1946...-_-_._-__-_.. $E 1,010 1,614 1.800 2,992 1, 190 3,570 2,483 Better than 1 in every 3 workers were 1Q47..~------20: 805 ;lt 950 1,193 1,917 2,086 1: 595 3,542 1,437 4,534 3,523 1948...~----~------23,080 35 1,059 1,310 2,112 2,289 1,728 3,847 1,587 4,975 4,138 employed in the relatively few firms Wage items (in thou- sands): 6 with 1,000 or more employees. 1945.. ______..__.. 43,033 2,485 2,776 3,827 4,217 3,196 7,124 2,908 8,330 8,071 The postwar readjustments in in- 1946-.-_.-w--_-_-_ 43,579 ifi 2,777 3,349 4,899 5,038 3,685 7,602 2,850 7,903 5, 388 1947..._~---_~-_--- 45,333 156 2, 996 5,144 5,026 3, 644 7,629 2,892 8,289 6,067 dustry brought about a marked de- 1948...~---~--~--~~- 45,534 155 3,165 5,148 5,150 3,649 7,436 2,817 8,098 6,299 cline in the concentration of workers Percentage distribution in the largest firms of 10,000 or more I employees. In 1945 these largest I- Employers: 8 firms accounted for 20 percent of the 1945...~~-~_--..-_.. loo. 0 1.2 58. 7 20. 2 11. 7 5.0 1.7 1.3 0. 2 0.1 employees. This proportion dropped 1946v.~._-----m.-_.. 100.0 1.3 56. 5 21.1 12. 9 5.1 1.7 1.2 0. 1 0.1 ‘3 1947 ____- ______. 100.0 1. 6 56. 9 20.9 12. 7 4.9 1. 6 1.2 0. 1 0. 1 # to 13 percent in 1946; in 1948 it was 1948.-.----.-w--w- 100.0 1. 6 57. 5 20.7 12.6 4.7 1.5 1.1 0. 1 0. 1 15 percent. Some of these firms had Employees: 4 1945~~----_~-~-~.--~ 100.0 5.9 6.3 8.4 9.2 7. 1 16.1 6. 8 20.0 29.2 operated large war plants in which 1946 ______-__--___- loo. 0 i 6.8 7. 7 10.8 10. 7 8.0 17.2 6.6 19. 1 13.2 1947. -_____.___.-... 100.0 6.8 7.6 10. 6 10.3 7.6 16.5 6.5 19.4 14.8 production was curtailed or discon- 1948.-.m..-...-w-. loo. 0 : 7.0 7.6 10.7 10.2 7.5 16.1 6.4 19. 0 15.4 tinued at the end of the war, or in Taxable wages: 1 1945~~.~~..~.~~...~. 100.0 0. 1 3.7 4.4 6.4 7. 8 6.5 15.3 6.9 22. 5 26. 3 which reconversion was not attempted 1946...~~---~-~-~--- 100.0 0. 1 4.6 6.0 9.6 10.8 8.2 17.8 7. 1 21.2 14. 7 1947-.--m.--..--.. loo.0 0. 1 4.6 5. 7 9.2 10.0 7. 7 17.0 6.9 21.8 16.9 by the same management. 1948.-.---..---...-. 100.0 0.2 4. 6 5.7 9.2 9.9 7.5 16. 7 6. 9 21.6 17. 9 By contrast, firms with l,OOO-9,999 Wage items: 0 1Q45...------w.---w 100.0 0.2 5.8 6.5 8.9 9. 8 7.4 16. 6 6.8 19.4 18.8 employees, which also accounted for 1946..------100.0 0. 2 6.4 7. 7 11.2 11. 6 8. 5 17. 4 6. 5 18.1 12.4 1947...------w 100.0 0. 3 6.6 7. 7 11.3 11.1 8.0 16.8 6.4 18.3 13.4 20 percent of all covered employees in 1948...-~-.-~~---m.w loo. 0 0.3 7. 0 7.9 11. 3 11. 3 8.0 16. 3 6. 2 17. 8 13.8 1945, experienced no such marked de- cline in 1946 and in 1948 accounted for 1 Number employed during the mid-March pay 4 Persons employed during the mid-March pay period. period. 19 percent of the workers in covered 2 Reporting units with “0” employoes had no om- 6 Wages paid for covered employment during Arst ployoes in the mid-March pay period but had at calendar auarter: excludes wages in excess of $3.000 employment. With respect to the least 1 employoe at some other time during the Jan- paid by ariy 1 etiployer to any-1 worker. group of firms with 50-999 employees, uary-March quarter. 6 A wage item represents a single report of taxable 1 An employer represents a legal entity, such as a wages as indicated on the individual employer tar there was practically no change from corporation, partnership, or single ownership, that return. Because the same worker may have been fried a single tax return for the entire concern. Only employed by more than 1 concern in a quarter and 1945 to 1948 in the proportion of employers paying taxable wages for employments thus may have been reported more than once, these workers employed, although there was during the quarter are included. The estimated Agures do not represent an reduplicated count of total number of employers differs slightly from pro- workers during the quarter. some decline in the proportion these viously released estimates based on a different source. 7 Loss than0.05 percent. firms made up of all firms. Exhibiting a trend contrary to that those with 8-19 employees experi- But firms with 10,000 or more em- of the largest firms, the firms with enced the greatest percentage in- ployees, which experienced a 36-per- fewer than 50 employees experienced crease in number of employees from cent drop in employment in 1946, a sharp increase in the number of 1945 to 1948, although firms with l-3 had not regained their 1945 levels of employees in 1946. Firms of this size employees had the greatest numerical employment by 1947 or by 1948; in accounted for 30 percent of the em- increase in employees. 1948, these largest firms employed 1.1 ployees in 1945, 36 percent in 1946.35 Firms with fewer than 10,000 em- million (17 percent) fewer employees percent in 1947, and 36 percent in ployees had an increase in employ- than in 1945. 1948. Among these smaller Arms, ment in each year from 1946 to 1948. The total of $23 billion in taxable

Bulletin, November 1950 17 Table P.-Estimated average taxable wage * per wage item 2 by size of concern, individual wage items reported for all first calendar quarter 1945-48 workers who had any covered employ- [Data based on tabulations of almost 100 percent of the quarterly employer tax reports, adjusted to include ment during the January-March employrrreports received too late for inclusion in the tabulation; the number of employees in the mid- March pay period estimated for the employing organizations that failed to report such information. Esti- quarter. Included in the computa- mates corrected to Apr. 15, 19501 tion are not only the wage items re- ported for the workers who were in 1946 1947 1945 covered employment during the mid- March pay period but also those re- Number of employees 3 1945 Percent- Percent- Percent- Percent- age ported for workers who had covered Average change%’ Average cb8afige Average changees change rrom 1945 from 1946 from 194i from 1945 employment a.t some other time dur- p------ing the calendar quarter but not dur- Totd ______$417 $386 - 7. 4 $459 $18.9 5507, $10.5 I -t-21.6 ing the mid-March pay period. 0. ---_-__-. - ______-_ 234 206 -12.0 I79 -13.1 2% $2;:; -3.4 F’urthermore, the average amount of l-3-..-----_-__------280 t-5.3 317 335 +25.9 taxable wages per wage item is smaller 4-7 ------___ _-_- _- -- _ ifi! 303 342 $2: Z 362 +:r. 8 8-19- . - - - -- ______- --_ $E 373 +13.4 410 t9.9 ~~:~ than the average taxable wage Per !a-49 ------______E 3"2 $Ei :;; i1 $;;:; 444 +7.0 -+f: ; 50-99 ------______-_ 365 376 474 +s. 2 worker during the quarter because 1cQ-499.. -______385 394 2;:; 4fi4 +17.s 517 f34.3 some workers changed their covered 5co-w?.--~-~~~---~ 417 497 $4 t31.9 1,C0S9,999~----~~~- ____ :z 452 -6.8 547 $ii: ; E f12.2 employer during the quarter and 10,090 and over _____-__ 584 4Lil -21.1 581 +26.0 6.57 +1.x 1 therefore had taxable wages reported for them by more than one employer. 1 Wages paid for covered employment during first wagee ss indicated on Ihe individual employer tnr calendar quarter: excludes waaee in excess of D&l00 return. paid by any 1 employer to any 1 worker. 8 Number employed during the mid-March pay The smaller labor turn-over that is eA wage item represents n single report of taxable period. often characteristic of large employ- ers was probably responsible for only wages reported for the first calendar 1945-48 the percentage increase in a part of the increase of average tax- quarter of 1948 was about 11 percent average taxable wage per wage item able wages per wage item as size of greater than the amount reported for varied from 13 percent for firms with firm increased. Other factors that the corresponding period of 1947 and 10,000 or more employees to 37 per- may have accounted for tms variation 29 percent greater than the amount cent for flrms that had 8-19 em- were the differences in wage rates and reported for the corresponding period ployees. types of labor employed. Further- of 1945. In each of the years 1945-1948, the more, because of the high rate of in- The average taxable wage per wage average taxable wage per wage item vestment per worker in many of the item ’ increased from $417 in 1945 to increased with the size of the firm as largest firms for research, machinery, $459 in 1947 and $507 in 1948 (table measured by the number of employ- and plant, the productivity of work- 2). While firms of all sizes partici- ees in the pay period nearest March ers in these firms is likely to be of a pated in this increase, the larger 15 (table 2). For the first quarter of high order; this high productivity, firms-those with 590 or more em- 1948 the average ranged from $331 combined with strong unionization, is ployees-showed the greatest increase for concerns that had from l-3 em- likely to result in high wage rates. from 1947 to 1948. During the 3 years ployees in this pay period to $657 for In addition, most of the larger firms ‘A wage item is a statement of the concerns with 10,000 or more were engaged in the manufacturing taxable earnings of a worker in covered employees. industries that are characterized by employment during a Calendar quarter as reported by an employer on the em- The average taxable wage per wage more continuous operations than the ployer tax returns. item represents ‘the average of all the nonmanufacturing firms.

FSDEERAL GRANTS-IN-AID tant and most cherished functions. control. However, it has been demon- (Continued from page 6) It is true, grants do involve a certain strated that abolishing of grants-in- the conditions attached to the grants. amount of supervision or control, but aid wouId not necessarily bring about And the participation of Federal of& the alternative course in most cases any reversal in the trend toward cen- cials in this process will then not be is far less attractive. The only alter- tralization. On the contrary, a num- ber of grant programs have served to regarded as interference in a State’s natives in many States are either an halt a swing in that direction.” operations. altogether inadequate service and ex- It is of vital importance that some orbitant State taxes on the one hand, That is to say, the demands made of these matters be better understood or direct operation by the National upon government have brought about in order that the grant-in-aid may Government on the other. Neither is a trend toward centralization. The serve its purpose. The grant-in-aid is satisfactory in our democratic, Fed- grant-in-aid, far from promoting that the only device that will enable us, eral system of government. The trend, has halted it, in a measure, by as a Nation, to achieve certain na- Council of State Governments in its enabling State and local governments tional objectives, especially those re- report on grants-in-aid examines this to serve more adequately. And, as to lating to the welfare of the individual question in some detail and concludes: the effect of the whole grant-in-aid citizen, without taking away from “There can be no disputing the fact approach, the Council of State Gov- the States some of their most impor- that grants lead to various forms of ernments further concludes:

18 Social Security