REPOR TR ESUMES

ED 011 605 VT 003 847 WHY THE UNEMPLOYED LOOKED FOR WORK. SPECIAL LABOR FORCE REPORT NUMBER 78. BY- HOYLE, KATHRYN D. BUREAU OF LABOR STATISTICS, WASHINGTON, D.C. REPORT NUMBER MON-LABOR-REV-REPRINT-2518 PUB DATE 67 EDRS PRICE MF-10.25 HC-$0.44 9P.

DESCRIPTORS- *UNEMPLOYED, *LABOR FORCE, *LABOR MARKET, *JOB APPLICATION. INDIVIDUAL CHARACTERISTICS,

INFORMATION ACQUIRED FROM SIX SUPPLEMENTS TO THE REGULAR "CURRENT POPULATION SURVEY" BETWEEN JULIE 1964 AND JUNE 1966 WAS USED TO EXAMINE THE REASONS UNEMPLOYED MEMBERS OFTHE LABOR FORCE BEGIN TO LOOK FOR WORK. THE DATA, WHEN AVERAGED, REVEALED THAT DURING THIS PERIOD OF RAPID ECONOMIC EXPANSION (1) 40 PERCENT HAD LOST THEIR PREVIOUS JOBS,(2) 15 PERCENT HAD QUIT THEIR LAST JOBS,(3) 25 PERCENT WERE REENTERING THE LABOR FORCE AFTER A PERIOD OF ABSENCE, AND (4) 20 PERCENT WERE NEW ENTRANTS WHO HAD NEVER HELD A FULL-TIME JOB. IN JUNE 1966, JOB LOSERS, THOSE WHOSE EMPLOYMENT WAS TERMINATED OR THOSE ON LAYOFF, ACCOUNTED FOR ONE-FOURTH OF ALL UNEMPLOYED PERSONS, AND IN DECEMBER 1964 AND JANUARY 1966 THE PROPORTION HAD RISEN TO ONE-HALF. THE NEGRO JOB-LOSER RATE WAS ABOUT TWO AND ONE-HALF TIMES THE WHITE RATE. PERSONS WHO LEFT THEIR JOBS VOLUNTARILY AND IMMEDIATELY BEGAN TO LOOK FOR WORK ACCOUNTED FOR 12 TO 18 PERCENT OF THE UNEMPLOYED. THE DATA SUGGEST THAT THE NEW ENTRANT RATE DURING PERIODS OF ABUNDANT JOB OPPORTUNITIES MAY KEEP UNEMPLOYMENT RATES UP. SINCE OVERALL ECONOMIC EXPANSION SEEMS TO AFFECT ENTRANT AND JOB-LEAVER RATES VERY LITTLE AND VERY SLOWLY, JOB MARKET PROGRAMS AIMED AT SPECIFIC GROUPS WILL BE NEEDED TO REDUCE THE TOTAL UNEMPLOYMENT RATE BELOW THREE AND ONE-HALF PERCENT. THIS DOCUMENT APPEARED IN THE "MONTHLY LABOR REVIEW," JANUARY 1967. (ET) U.S. DEPARTMENT OF HEALTH, EDUCATION& WELFARE A Monthly Labor Review Reprint OFFICE OF EDUCATION From the February 1967 Issue THIS DOCUMENTHAS BEEN REPRODUCED EXACTLY AS RECEIVEDFROM THE PERSON OR ORGANIZATION ORIGINATING IT.POINTS OF VIEW OR OPINIONS STATED DO NOT NECESSARILY REPRESENT OFFICIALOFFICE OF EDUCATION POSITION OR POLICY.

SPECIAL LABOR FORCE REPORT NO. 78 WHY THE UNEMPLOYED LOOKED FOR WORK

UNITED STATES DEPARTMENT OF LABOR W. Willard Wii-tz, Secretary BUREAU OF LABOR STATISTICS Arthur M. Ross, Commissioner Special Labor Force Report No. 78

Why the Unemployed last jobs. The unemployment of persons who quit their jobs and of labor force entrants showed little Look for Work change this 2-year period. Unemployed persona [In thousands] KATHRYN D. Rom* June 1966 June 1964 Change 1904-66 5 weeks 6 weeks 6 weeks THE UNEMPLOYMENT FIGURES are designed to as- Totalor more Total or more Total or more Total unemployed 3,870 1,1324, 692 1,911822 779 sist in measuring the utilization of the Nation's Lost job 939 4021 713 1,012774 610 most important resourceits manpower.The Left job 523 222 549 264 26 42 Reentered labor force_1,204 2801,182 367 22 87 figures include all persons not working who are Never worked 1,205 2291,248 267 -43 38 seeking -work at a given time, regardless of their financial needs or their reasons for trying to find As the above tabulation shows, almost all of the jobs. Workers who were laid off or who lost the'ir June 1964 to June 1966 unemployment reduction jobs do not account for all the unemployed, as the took place among persons out of work for a. month unemployed also include workers who leave one or longer.Job leavers,reentrants, and new job to look for another and persons who enter workers all benefited moderately from the de- the job market either for the first time or after a crease in unemployment of 5 weeks or more,but period outside the labor force. the largest dropto 400,000 from 1 millionoc- The reasons people begin to look for work were curred among job losers. first identified in supplements to the regular Cur- rent Population Survey taken in June and De- Age and Sex cember 364.1Since that time, four additional studies have been madein June 1965, November Data on why people looked for work were classi- 1965, January 1966, and June 1966. An averaging fied according to age, sex, color, and whether seek- of the 6 survey months produced the following ap- ing part-time or full-time work, as well as by proximate composite of the unemployed during duration of unemployment. this period of rapid economic expansion : 40 percent had lost their previous jobs Job Losers. The individual worker often has 15 percent bad quit their last jobs; little control over job losses, which may result 25 percent were reentering the labor force after a from business failure, decreased workload, or period of absence ; and mechanization.Persons on layoff, whether tem- 20 percent were new entrants who had never held porary or indefinite, as well as those who losetheir a full-time job. jobs permanently are termed job losers.How- The composition varied with the season.For ever, if job loss were the only cause ofunemploy- example, job losers ranged from one-fourth of thy; ment, the unemployment rate would be substan- unemployed in June 1966 to about half of the total tially lower. The total unemployment rate was in December 1964 and January 1966. On the other 4.9 percent in June 1966 (down from 6.1 and 5.5 hand, more than one-fourth of the unemployed percent in the previous Junes) and ranged from v new entrants in June When school was outof 3.9 to 4.7 percent in the 3 winter months. The sc i6ion, but less than one-sixth were in this cate- *Of the Division of Employment and Unemployment Analysis. gory in the winter months.(See table 1.) Bureau of Labor Statistics. Total unemployment fell by about 800,000 be- I Findings of the first two surveys were published to "The Unemployed : Why They Started Looking for work," Monthly tween June 1964 and June 1966; virtually all of Labor Review, October 1965, pp. 1196-1203, and were reprinted this drop topic place among person,- who lost their as Special Labor Force Report No. 60. 32 From the Monthly Labor Review, January 1967 UNITED STATES DEPARTMENT OF LABOR Reprint No. 2518 BUREAU OF LABOR STATISTICS 33 WHY THE UNEMPLOYEDLOOK FOR WORK unemployment rate for job-loser rate,2 however, was1.2 percent in June The typically higher adult women comparedwith adult men is also a 1966 (also downsubstantially from June 1964 in function of the women's greaterlabor force mo- and 1965) and variedfrom 1.6 to 2.3 percent for adult women is (See table 2.)In June 1966, bility The job-loser rate the wintermonths. about equal to or lowerthan that for adult men. job losers accountedfor one-fourth of all unem- proportion rose to one-half The reduction in thejob-loser rate between June ployed persons; the responsible for most of December 1964 and January 1964 and June 1966 was of the unemployed in the drop in thetotal unemployment rate.The 1966. 4..9 from 6,1 percent in With increased age andwork experience, fre- total jobless rate fell to this period.While the entrant andthe job-leaver quent or casual jobshifting decreases; the more rate finished his period rates showed littlechange, the job-loser experienced worker has usually Job losers, there- of job testing and found afield suited to his skills dropped to 1.2 from 2.2 percent. and over are normally fore, account for mostof the nonseasonal move- and interests. Men age 25 unemployment rate, thoughthey the primary source of supportfor their families, ment in the total represent only two-fifthsof the unemployed.The and the importance of awoman's earnings to her in 6 she moves out latter proportion isbased on surveys taken family's income also increases as expanding rapidly, adult years. Women months when the economy was of the teenage and young during a period of slower also become freer of householdresponsibilities as and it is probable that All these factors growth, and certainlyduring an economic down- their children grow older. of job losers wouldrise strengthen the worker's laborforce attachment turn, the proportion and discourage job quittingand movement into sharply. and out of the labor force. who left their jobsand im- of the unemployed Job Leavers. Persons Only a small proportion mediately started to lookfor work accountedfor 14 to 17 year-old:3 gavejob loss as the reason for the unemployed. Someof job becomes more 12 to 18 percent of looking for work. Loss of a the reasons for quitting areobviousdifferences prevalent among older teenagers,since more 18 to working conditions, low school and in the laborforce with the boss, unpleasant 19 year-olds are out of wages, noopportunity for advancement,and the continues.Job losers full time; this progression like.Others quit in anticipationof job loss; this accounted for more than70 percent of the unem- account for some personsreported and for more than half reason might ployed men age 45-64 years as jobquitters among theunemployed in Novem- of the unemployed womenin this age group. halts in colder climates discussion relates to job ber when outdoor work Although the preceding and in January after theChristmas season. losers as a proportion ofthe unemployed in agiven high among teenagersand based on the per- The job-leaver rate is age group,the job-loser rate is who change jobsfrequently before labor force at any agethat young adults centage of the entire deciding to settle in one.Other workers have to of a job.The age- is unemployed due to the loss leave their job becausethe family head moves in job-loser rates areconsiderably sex differentials to another community.Some persons canlook smaller than the differentialsin the total unem- remaining on their present wide gap for another job while ployment rates.For example, there is a have to quit to devotetheir full time overall unemployment one; others between teenage and adult to finding newemployment.Unless these job rates, but most of thedifference is explained by immediately, they are counted rate of teenagers. leavers find work the appreciably higher entrant in the unemploymentstatistics. It appears that once a teenageboy or girl has a months, only 0.6-0.7 he will become unem- In all the special survey job, the likelihood that percent of the laborforce had quit theirprevious ployed because he losesit is not much greater than job job.The availability ofjobs enabled many his adult counterpart's. leavers to move directlyfrom one job to another with little or nounemployment. 2 Unless otherwise specified, allunemployment rates cited are Labor Force Entrants.Most persons entering not adjusted for seasonality.The job-loser, Job-leaver, and who entrant rates are each calculated as apercent of the labor force ; the labor force for thefirst time are teenagers therefore, the sum of the ratesfor the three groups equalsthe are still inschool. Although manyof these young- total unemployment rate. VIEW, FEBRUARY 1967 34 MONTHLY LA130....

TABLE UNEMPLOYED PERSONS, BY REASON FOR force just prior to looking for work. A great LOOKING TOR WORK, AGE, AND SEX, SELECTEDMONTHS many of them, regardlessof age or sex, come back 1964, 1965, AND 1966 into the work force because of economic necessity. Total Percent distribution Many of the teenagers have worked at summer Unem- ployed, jobs and are looking for their first permanent full- Age, sex, month, and year14 yearsTotal Reen- and unem-LostLeftteredNever time jobs. Among adults of both sexes, seasonal overployedjob job laborworked force wQr1= is the primary reason for reentry. Some persons drop out of the labor forcetemporarily BOTH SEXES, 14 YEARS ANo Oven because of sickness-and later return to look for June 1964 4, 692 100. 036.511.7 25.2 26.6 work. Others leave the labor force to supplement December 1964 3, 466 100. 049.113.0 21.9 16.0 June 1965. 4, 287 100.033.311.7 26.9 28.1 educational or vocational skills and return when November 1965 2, 966 100. 039.818.3 25.4 16.5 January 1966 3, 290 100. 049.5 15.9 21.8 12.7 the new skills have been acquired. 31.1 June 1966 3, 870 100. 024.213. 5 31.1 Divorce or separation forces many women to re- 14-19 YEARS OLD, BOTH SEXES enter the job market to support themselvesand June 1964 1, 885 100. 0 9.4 5.3 28.1 57.3 their children. Others leave the labor force when December 1964 825 100. 022.8 7.4 17.3 52.5 June 1965 1, 819 100. 0 7.6 4.9 28.6 59.0 their families relocate geographically but return November 1965 817 100. 016.415.9 18.7 48.8 January 1966 764 100. 025.515.3 20.7 38.4 to look for work when the new household is set up. June 1966 1, 883 100. 0 6.6 5.3 31.5 56.5 Still others, who want to work and whose families MALES, 20 YEARS AND OVER need the money, can reenter the labor force only June 1964 1, 608 100. 063.514.6 17.3 4.6 after their children have reached school age. December 1964 1, 677 100.066.211.3 19.1 3.3 June 1965 1, 318 100. 060.315.5 19.7 4.5 While seasonal work is the primary reason for November 1965 1, 109 100. 063.217.2 16.7 2.8 January 1966 1, 526 100. 068.2 14. 7 14.2 2.9 reentry among adult men, other reasons include 4.6 June 1966 1, 049 100. 052.6 17. 7 25.2 discharge from the Armed Forces, illness, unpaid FEMALES, 20 YEARS AND OVER vacation, and, to a lesser extent, release from hos- June 1964.- _ _ ...... 1, 199 100. 043.018.0 31.4 7.7 pitals, prisons, or ether institutions. December 1964 965 100. 042.220.5 30.9 6.4 June 1965 1, 152 100. 043.1 18. 1 32.3 6.6 During the period June 1964-June 1966, 20 to November 1965 1, 042 100. 032.921.3 39.9 5.9 January 1966 1, 002 100.039.518.3 34.2 8.1 30 percent of the unemployed were persons with June 1966 938 100.027.825.4 36.9 10.1 previous work experience who had been out of the labor force for various reasons. The rate for re- sters are not for I to work full time by economic entrants reached a high of 1.5 percent in June. In necessity, some of them do need temporary or part- the other survey months, unemployed reentrants time jobs to help pay school or family expenses. accounted for 1 percent of the labor force. These young workers also need to accumulate work experience, but their very lack of experience and Unemployment Rates their age make it especially difficult for them to find jobs. New data on why people began to look for work Over 30 percent of the unemployed were new en- suggest that the total unemployment rate may not trants in June 1966, and, even in the winter months, fall to as low a point during economic expansion nearly one-sixth had no previous full-time work as had previously been thought. The 2-yearperiod experience.As would be expected, the entrant from June 1964 to June 1966 was one of rapid rate causes most of the seasonal variation in the economic growth, but the lowest seasonally ad- total unemployment rate.About 1.6 percent of justed unemployment rate was slightly below 4.0 the labor force was inexperienced and unemployed percent. The actual rate fell 1.2 percentage points in June 1964,1965, and 1966 ; the new entrant rate from June 1961 to June 1966; all but 0.2 point of dipped to around 0.7 percent in the winter months. the decline was in the job-loser rate.The job- The new entrant rate for teenagers reaches a high leaver, reentrant, and new worker rates remained of over 10 percent in June. at a combined average of around 3 percent in all Women and teenagers account for a majority of 6 survey months. the reentrants, unemployed persons with previous The job-leaver rate was 0.7 percent in Novem- full-time work experience who were out of the labor ber 1965, January 1966, and June 1966; it can be 35 FOR WORK WHY THEUNEMPLOYED LOOK There was also asmall but variation. job-loser component. assumed that this ratehas little seasonal in the employment-unem. improve over the 2-yearperiod notable improvement The rate did not ployment picture for newentrants.Campaigns the continuallyfavorable job of 1965 probably because to provide jobsfor youth in the summers workers to leavetheir jobs to growth in market encouraged and 1966 effectivelyabsorbed the large hunt for others. force and madepossible a slight unchanged overthe the teenage labor The reentrant rate was reduction in theirunemployment rate.Neverthe- period at 1.5 percentin every June and1.0 percent improvement in the 1964 --66 pe- of around less, the sharpest in every othermonth; an average rate job losers-leadingto lower the period. riod occurred among 1.2 percent can beassumed throughout jobless rates for all groupswhere losersconstitute that occurred overthis example, The growth in the economy a largepart of the totalunemployed, for 2-year period andits attendant demandfor work- workers, nonwhites, per- although adult men, blue-collar ersimproved the situationfor reentrants, unemployed 5 weeks or more,and workers in in their unemploymentrate. sons this is not exhibited the goods-producingindustries. of job opportunitiesprobably at- The abundance that tracted so many reentrantsinto the job market Duration ofUnemployment sustained. the rate was periods of unem- The new entrantrate was about 0.5percent in In all 6 surveymonths, short November 1965 andJanuary 1966 and 1.5percent ployment were more commonfor labor force en- in June 1966-an averageof about 1.0 percent. trants thanfor job leavers andlosers.However, labor force of 1.6 between The large growthin the teenage this differencenarrowed substantially with only 800,000 decline million maintainedthe new entrant rate 1964 and 1966.Nearly all of the from June 1964 toJune a smalldecline. in total unemployment If these three ratesaveraged 3 percent,then percent the job-loser rate musthave been about 1.0 UNEMPLOYMENT RATES, BYREASON FOR 4.0 TABLE 2. SELECTED MONTHS, when the total rate,seasonally adjusted; was LOOKING FOR WORK,AGE, AND SEX, percent. Ajob-loser rate of 1percent out of a 1964, 1965; AND 1966 75 million is low,but it could Total Job- Job-Reen-New labor force of over leavertrententrant still high Age, sex, month, and year name- loser rate improve further.Job-loser rates are ploymentrate rate rate rate amongNegroes and lessskilled workers. workers constitute an ever- As women and young BOTH SEXES, 14 YEARS AND force, the en- OVER increasing proportionof the work 1.7 6.1 2.2 0.7 1.5 moreimpor- June 1961 .6 1.0 .8 job-leaver rates make up a 4.7 2.3 1.6 trant and December 1961 5.5 1.8 .6 1.5 business conditions June 1965 1.6 .7 1.0 .6 tant part of thetotal rate. As November 1965 3.9 .7 1.0 .5 the job 4.4 2.2 1.5 improve, these secondaryworkers come into January 1966 4.9 1.2 .7 1.5 enough numbers tokeep the job- June 1966 market in large 14-19YEARS OLD, BOTH at fairly stablelevels. A SEXES leaver and entrant rates 6.2 12.6 how- 22.0 2.1 1.1 7.2 for these groups, June 1964 13.7 3.1 1.0 2.4 combined rate of 3 percent December 1964_ 1.0 5.9 12.3 in view of the 20.8 1.6 2.2 5.8 acceptable, especially June 1965 11.8 1.9 1.9 ever, is not November 1965 1.8 2. 4 4.5 11.8 3.0 10.5 entrant rate was161/2 per- January 1966 1.2 1.0 5.8 fact that the teenage June 1966 18.5 Overall economicexpansion cent in June 1966. MALES, 20 YEARS ANDOVER .2 affect these rates verylittle and very 3.6 2.3 .5 .6 seems to June 1964 2.5 .4 .7 1 3.8 .6 1 slowly; in the short run,job market programs December 1964 2.0 1.8 .4 .1 June 1965 1.6 .4 .4 will be needed toreduce November 1965 2.5 .5 .5 . 1 aimed at specific groups 3.4 2.3 .6 .1 January 1966 2.8 1.2 .4 the total unemploymentrate b6low 31/2percent. June 1966 FEMALES, 20 YEARS AND OVER 2.2 .9 1.6 .4 1964-66 Changes 5.2 1.3 .3 June 1961 4.1 1.7 .8 .2 December 1961 4.8 2.1 .9 1.6 .9 1.7 .3 fell sharply betweenJune June 1965 4.3 I.4 .3 Total unemployment November 1985 1. 7 .8 1.4 4.2 1.4 .4 earlier, most January 1966. 3.9 1. 1 1.0 1964 and June 1966.As mentioned June 1966 .. responsive .- - of the declineoccurred in the cyclically - MONTHLY LABOR REVIEW,FEBRUARY 1967 36 ,IIIMI111111Oral tration in semiskilled andunskilled jobs in indus- 1966 took place amongpersons whohad been un- of tries where seasonal andeconomic cutbacks are employed for 5 weeks orlonger. The number discrimination results in work for at least amonoi fell common.In addition, job losers seeking Negro workers beingthe first ones fired andthe from 1 million to 400,000in this period,account- for in unem- last ones recalled.The unemployment rates ing for four-fifths ofthe total reduction who entered the labor In June 1964, al- adult men who quit jobs or ployment of 5 weeks or more. force to look for work werelow for whites and of the job losershad been out of most 60 percent Negroes. work for a month or more,far higher than the48 and the 26 percentfor en- percent for job leavers Full 'lime, Part Time trants. By June1966, the proportionof job losers the in this duration group wasdown to 43 percent, unemployed personsseeking compared with The majority of same as tiejob-leaver proportion, full-time employment hadbeen looking for work 21 percent for entrants. left their last jobs.The 15 weeks or more,fell steadily since they lost or Long-term unemployment, majority of those seekingpart-time jobs were labor sharplyfrom 1 millionin June 1964 to475,000 housewives or students job losers showed thegreat- force entrantsprincipally in June 1966, Again, who were available forpart-time work. est improvement;the number in thelong-term looking in 1964 to only 200,- Entrant rates were high among persons groupdropped from 600,000 did not improve fromJune also declined for part-time work and 000 in 1966.Long-term joblessness On the other hand,the job- and new entrants inthis 1964 to June 1966. for job leavers, reentrants, loser rate for this group waslow-0.6 percent in period, but the reductionsfor these groups were job losers. June 1966. proportionately less than for The rate of job loss amongthose seeking full- nearly cut in halfduring the Classification by Color time jobs (although 2-year period) wasappreciably higher than among majority of those look- For many years theunemployment rates for part-time jobseekers. The Negro workers have beenabout double the rates ing for full-time work wereadults. for whites. The Negrojob-loser rate was about 21/2 times the white ratein June 1964, 1965,and Industry and Occupation 1966.Although job-loser ratesfor both color for indus- decline for Ne- Traditionally, unemployment rates groups fellduring this period, the have been carefullyobserved large enough to reducethe differ- tries and occupations groes was not barometers of economic change.These rates are, ential.(See table 3.) certain limitations whichim- important component of however, subject to Job losers are a more economic indicators.The new for Negroes than forwhites. pair their use as total unemployment information on why peoplestarted to look for About 85 percent ofthe 700,000 decline in unem- of these problems. took place among job work helps to alleviate some ployment for white workers One limitation of theoverall rate is that the losers.In the same 2-yearperiod, there was a reported for an unem- job losers; this decrease occupation and industry 175,000 decline for Negro ployed worker relate tohis last job andtherefore was partiallyoffset by a 50,000 rise inthe number good guess at the typeof Negro entrants (mainlyteen- provide, at best, only a of unemployed job he is currentlyseeking.(This discussion ex- agers). cludes unemployed personswith no previousfull- The imbalance betweenthe Negro and white job- time work experience.)A more seriouslimitation loser rates wasespecially pronounced amongadult occupation and job- is that unemploymentrates by males. Between June1964 and June 1965, the who are looking forwork fell. r,re industry include persons loser rate for men age20 years and over absence from the laborforce. than for whites. From1,35 after a period of rapidly for Negroes Their joblessness mayhave little or norelation- to 1966, both ratesagain fell, but the rateof decline that for ship to the current stateof affairs in the occupa- for Negro malesslowed in comparison to which they worked at some higher job-loser rate forNegro tion and industry in white males. The time in the past.For example, laborforce en- men isattributable, in large part,to their concen- 37 WHY ME UNEMPLOYEDLOOK FOR WORK

AGE, AND Sex, SELECTED MONTHS' UNEMPLOYMENT RATES, BY REASON FORLOOKING FOR WORK, COLOR, TABLE 3. 1964, 1965, AND 1966 0111,110111==f1111YMNIMMII.M.M11 Entrant rate Total unemployment Job-loser rate Job-leaver rate rate Age, sex, month, and year Nonwhite White I Nonwhite Willte Nonwhite White Nonwhite White

BOTH SEXES, 14 YEARS AND OVER 0.6 1.2 3. 0 4.8 5.5 10.8 1.9 4.8 2.8 rune 1964 2.0 4.9 .5 1.1 1. 7 4.2 8.8 1.1 2. 8 4.6 December 1964 9. 3 1.6 3 6 . C 5.0 . 7 L 3 1. 4 3.1 June 1965 3. 5 7. 5 1. 4 3.1 No-amber in" . a,. 1. 2 1.3 3.0 3.9 8.2 2.0 S. 2.7 5.2 January 1966 9.0 1.0 2. 1 .6 1. 1 June 1966 4.3 14-19 YEARS OLD, BOTH SEVES 1.0 1.9 17. 8 26.2 20.5 33. 2 1.7 5. 1 9. 1 14.6 June 1964 23.2 2.8 6.3 .8 2.3 December 1964 12.7 2.8 .9 1.3 17. 1 28.3 19.4 30.4 1.4 6.8 1.7.2 rune 1965 26.6 1. 6 4.9 1.6 4. 5 November 1065 10.0 7.2 1.7 3.0 5.8 16.7 10.1 216.9 2.6 14.9 26.9 January 1966 31.6 1.0 3.2 .9 1. 5 June 1966 16.8 MALES, 20 YEARS AND OVER .9 .8 .9 3.2 7.0 1.9 5.2 .5 .9 .9 Tune 1964 7. 5 2.1 6.1 .4 .5 December 1964 3.4 4.0 .4 .7 .7 .7 2.6 5.4 1.5 .8 .4 .8 June 1965 4.7 1.4 3. 1 .4 1. 1 November 1965 2.2 4.0 .5 .6 .5 3.2 5.7 2.2 .8 .6 1.0 January 1066 2.0 5.0 1.0 3.2 .4 June 1966 FEMALES, 20 YEARS AND OVER 3.2 4.1 .8 1.6 1.9 4.6 8.9 1.9 L8 1.3 3.0 June 1964 3.6 7.8 1.6 3.0 .7 2.6 December 1964 3.4 .a 1.7 1.7 4.4 7.7 1.9 1.3 1.8 2.8 June 1965. 3.9 6.9 1.2 2.8 .9 November 1965 3.1 .6 1.8 1.7 2.9 3.7' 7.8 1.4 1.6 1.6 3.1 Tannery 1966 6.6 .9 1.9 .9 June 1966 3.4 unemployment rate forthis trant rates in December andJanuary were highest In June 1964, the workers, yet it grraip was 5percent and thejob-loser rate was for agricultural and construction 1966, the total rate had is uilikely that these entrants werelooking for 2.5 percent. By June their last fallen to 3.8 percentand the job-loser rate to1.4 farm or construction jobs even though The had been percent, or less thantwo-fifths of the total. job, probably in the previous summer, rates were unchanged of that type. job-leaver and reentrant these diffi- from Jure 1964 at 0.8and 1.6 percent, respectively. Data on job loss overcome both of the amount The difference betweenthe job-loser and culties to some extent as they reflect the much larger for serv- of unemployment resulting from recentemploy- total unemployment rate was and occupations. In ice-producing industries thanfor nonfarm goods- ment changes in industries rate ir:7 work imme- producingindustries,thejob-loser addition, a person who begins seeking being about doulee diately after losing his job is morelikely to have goods-producing industries occupation or an indus- that in the service-producingsector. These po.-ltts a strong attachment to an in the work for.-e in try then someone whose last job wasfollowed by illustrate a basic difference these two segmentsof the economy. a period ofwithdrawal from the labor force. serv- special sur- Expanding employmentopportunities The information obtained from the workers ,nd adult significant differences between the ices have attracted many young veys shows because these jobs areoften part unemployment and job -loser rates.In December, women, partly time or temporary andpartly becease manyof November, and January, the job-loser rate was the for experi- them do not require theskill or s1_,I-ength that half or more of the unemployment rate The demand for salary workers; goods-producing industries do. enced nonagricultural wage and in large part byworkers in June 1966, it was less thantwo-fifths of the labor in services is met entering the labor force totake jobs.Also, total rate. fewer nonagricultural women and youngworkers usually have All of the improvement in the and can leave one job to unemployment rate over the June financial responsibilities wage and salary easily than can adult men 1964--June 1966 period occurred amongjob losers. look for another more MONTHLY LABOR REVIEW, FEBRUARY 1967 38 who make up the bulk of the workersin the goods- don.In fact, in June 1966, the rate of job loss producing industries.At the same time, seasonal was less than a third of thetotal unemployment or other contractionsin the demand for workers rate in each of these occupations.Since the in service industries are frequentlyaccompanied white-collar and service occupations are expand- by the withdrawal of women and teenagersfrom ing sectors and attract many -women and teen- the labor force so that relatively few persons are agers, it is not surprising tofind this gap between added to the unemployed by job loss.For ex- unemployment and job-loser rates and to find it ample, teeuagers who work in summer camps, re- accentuated in June. sorts, and other recreationalfacilities return to In each occupation, the drop in the total unem- school in September. ployment rate between Awe 1904 and June 1966 In the goods-producing industries,the work occurred mainly among job losers.The occupa- force is more stable, and cutbacksin employment tional data for reentrants refer only to persons are more likely to betranslated into a rise in Un- who have previously worked in a given field, but employment. Job loss, therefore, is a moreim- they may indicate where the slight 1964-66 im- portant component of totalunemployment in the provement for new workers occurred. Although goods-producing industries. the overall reentrant rate was unchanged from The recent improvement in the nonagricultural June 1964 to June 1966, it dropped to 1.3 from 1.6 wage and salaryunemployment rate has been percent for the only group where a decline oc- sharpest in the goods-producing industries.The curredwhite-collar occupations. The reentrants job-loser rate in these industries was cut in half who had the necessary skills and education for from 3.4 percent in June 1964 to 1.7 percentin clerical and sales jobs, where the decline occurred, June 1966.The job-loser rate in the service-pro- found it somewhat easier to obtain jobs in June ducing sector was reduced by two-fifthsto 1.1 1966 than 2 years earlier. A similar improvement from 1.8 percent. could probably also be extended to new entrants. An examination of differences in the total un- On the other hand, the occupations where the employment rate and the job-loser rate for occupa reentrant rate rose slightly were nonfarm laborers tions reveals a pattern similar to that among in- and service workers.These two occupations in- dustries.The job-loser rate is a less significant clude the least skilled, least educated of our non- component of the unemployment rate inwhite-col- farm labor force. New labor force entrants who lar and service occupations than in blue-collar oc- lack skills and completed educations must look cupations.In all 6 survey months, the rate of for work in these fields where they are further job loss accounted for half or less of the unemploy- hampered by their lack of full-time work expe- ment rate in each white-collar and service oc,cupa- rience.

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