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The Employment Security Program in a Changing Economic Situation

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The Employment Security Program in a Changing Economic Situation The Employment Secwity Pmgram in a . Changing Economic Situation The Federal Advisory Council of the Bureau of Employment that, during the last 3 years, con- Security at its meeting this past September adopted resolu- gressional appropriations for the op- tions, given in full in the following pages, on the employment erational functions of the United service and on unemployment insurance. The conference, States Employment Service and the which was the Council’s first since the Bureau’s transfer from Veterans Employment Service have the Social Security Administration to the Department of Labor, necessitated drastic curtailment of heard brief statements from the Secretary and the Under Secre- personnel of both services, with a tary of Labor, as well as from Arthur J. Altmeyer, Commissioner consequent drastic reduction in the for Social Security, and Robert C. Goodwin, Director of the counseling, job development, place- Bureau of Employment Security. A summary of Mr. Altmeyer’s ment, and other essential activities statement follows the recommendations. of the United States Employment Service and the Veterans Employment Service. HE Federal Advisory Council of ties of the Employment Service to It is absolutely essential that ade- the Bureau of Employment Se- date in providing leadership in com- quate appropriations be made by Con- T curity met in Washington on munity employment planning. gress for these purposes, if the promise September 14 and 15. 1949. The In addition, it recommends that set forth in the Servicemen’s Read- Council, established under the Wag- State and local “maximum employ- justment Act that “there shall be an ner-Peyser Act, has 35 members, who ment committees” be established to effective job counseling and employ- represent business, labor, veterans’ bring the entire resources of the com- ment placement service for vet- groups, and the general public. Since munity together to meet critical un- erans . so as to provide for them the adoption of the President’s Reor- employment situations where they the maximum of job opportunity in ganization Plan No. 2 of 1949. trans- exist. the Aeld of gainful employment” shall ferring the Bureau of Employment Business, labor, civic. veteran, and be effectuated. Security to the Department of Labor, welfare organizations should be called An equal opportunity for the gain- the Council has responsibility for ad- upon to cooperate fully in the work ful employment of veterans and dis- vising the Secretary of Labor and the of the committees. abled veterans-handicapped by Iess Bureau on all matters related to the The local employment offices should seniority and less job experience-can public employment service and unem- stimulate the establishment of these be afforded them only by an intensive ployment insurance. committees and perform planning, application of these operational func- It was the consensus of the Council staff, and informational services for tions, which, unfortunately, cannot be that the unemployment insurance them when they are established. adequately performed if it is im- payments to unemployed covered The Bureau of Employment Se- possible to hire adequate personnel workers during the past several curity should further this effort by because of inadequate appropriations. months have contributed to checking meeting with national representatives The Council recommends that the a possible recession and that, with of national organizations in Wash- Secretary of Labor, the Director of the other complementary measures, they ington and request their cooperation Bureau of Employment Security, and have helped to “firm up” the eco- in furthering this program through- the Chief of the Veterans Employ- nomic situation to a considerable ex- out their memberships. ment Service jointly request supple- tent. 2. Special problems of veterans dn a mental appropriation to restore The following resolutions were period of increased unemployment. personnel, previously released due to adopted by the Council, which will Careful attention is invited to the inadequate appropriations, so that the meet again in late November to take report of the Committee on Veterans United States Employment Service up items carried over from the Sep- Employment, as adopted by the Fed- and the Veterans Employment Serv- tember meeting and to consider eral Advisory Council September 17 ice will be able to fulfill the obliga- other important policy questions. and 18. 1948, all of the recommenda- tions set forth by Congress in the tions of which we specifically reafllrm. Servicemen’s Readjustment Act of The Council’s Resolutions A report on the progress made toward 1944. the attainment of each specific rec- 3. cojlection and use of labor ommendation should be made by the market information. The Employment Service Bureau of Employment Security to The Council recommends that labor 1. Providing leadership in commu- the members of the Federal Advisory market information collected by the nity employment planning. Council at or prior to its next meeting. Employment Service include data The Council commends the activi- It is particularly distressing to note pertaining to employment opportuni- Bulletin, October 1949 ties for youthful job seekers. This The Council nevertheless believes 2. Removal of exclusion of coverage has reference to facts on the supply it would be highly desirable that such of nonprofit organizations. and demand for workers in entry jobs additional personnel as might be re- At the present time, about 600,000 as well as occupations suitable for quired to further develop the job jobs are outside the protection of the college graduates. The importance of opening possibilities among smaller unemployment insurance program be- thisV kind of information lies in the establishments be made available cause of the present exclusion of non- fact that young people are likely to through increased congressional ap- proflt organizations from the Unem- be among the most disadvantaged propriations. ployment Tax Act. The original elements in the labor force in the Greater penetration by the EM- exclusion of this group was based years ahead and that many thousands ployment Service in the placement of upon the fear of government control, of G. 1.‘~ and others will be graduat- employables into the labor market is and anxiety lest its tax-exempt status ing from colleges and universities in deemed highly desirable, for the mu- might be jeopardized. There is gen- 1950, 1951, and 1952 in a job market tual convenience of employers and eral agreement today that w,orkers difficult for professional workers.- potential employees. employed by these organizations are The Committee recommends the 5. Clarifying policies concerning discriminated against since they do restoration of basic industry informa- the employment of Puerto Rican and not receive the same protection as tion, including current supplements. foreign agricultural labor. privately employed workers in the Such information would furnish a Your Employment Service Commit- same occupations with whom they useful resource in counseling and tee feels that insufficient information. share the same risk of unemployment, placement. background, and time precluded a and that lifting this exemption need The Committee recommends that policy recommendation on this item not affect the special legal status of the Bureau of Employment Security and recommends that this subject be religious and other nonprofit organi- emphasize to the State agencies the put on the agenda for consideration at zations. This has been found to be importance of wide dissemination of the next meeting of the Council. the case in Hawaii, where nonprofit labor market information. The BU- organizations are covered, and in the reau of Employment Security should Unemployment Insurance six other States where some parts of also release information regularly on this group are covered. The Senate labor market conditions from a na- 1. Extension of coverage to Small Advisory Council recommended cov- tional point of view and should ex- employers. erage of nonprofit organizations in its pand its mailing lists to national While the original social security report to the Senate Finance Commit- organizations concerned with public legislation excluded from Protection tee in the fall of 1948. affairs and to industry and trade employees of Arms with fewer than In the light of these considerations, journals. eight workers, primarily because of the Council unanimously recommends Local of&es in collecting and an- the administrative diflticulties of ob- extension of the Unemployment Tax alyzing labor market information taining reports and auditing records Act to all employees of nonprofit or- should take special account of em- of such firms, there is general agree- ganizations except to ministers and ployment, particularly if it is reflected ment today that these considerations members of religious orders and to in short hours of work, and thus bring no longer apply. About 3.5 million part-time workers who earn less than about a more comprehensive interpre- workers, in an average week, would $45 per quarter, or whatever figure tation of the extent of total and par- be added to the coverage of the pro- may be approved for old-age and sur- tial unemployment in the area. gram if this restriction was removed; vivors insurance. 4. Establishing a systematic ap- this understates the number of work- 3. Wage base. proach to employer relations and job ers who would benefit by the change, The Council recommends that the development. Emphasis on the job since many workers move from small wage base for unemployment taxes be development in the “major market.” to large firms and back again during brought to the same point that the The policy developed by the Bureau the course of a year. The council wage base may be brought to in old- of Employment Security, whereby lo- notes that the experience of the 17 age and survivors insurance and that cal ofllce personnel regularly visit em- States which cover employers with one the uniform base be substantially ployer establishments representing worker has demonstrated the absence raised. the greatest job opening potentials, of serious administrative difilculties, 4.
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