An inquiry into the compulsory notification of vacancies

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AN INQUIRY INTO THE GOMHJLSORY NOTIFICATION OF VACANCIES

A T h e s is P re s e n te d to The D e p a rtm e n t o f I n d u s t r i a l Management U n i v e r s i t y o f S o u th e r n C a l i f o r n i a

In P a r t i a l F u lfillm e n t o f th e R e q u ire m e n ts f o r t h e D eg ree M a ste r o f B u s in e s s A d m in is tr a tio n

by P a u l D av is J a n u a r y 1950

UMI Number: EP43241

All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion.

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c_m^ M B A \srO

TA/i thesis, written

P

by

...........................PAUL D A V IS .........................................................

I

I

under the guidance of h~iM~ Faculty Committee, and approve d by all its members, has been presented to and accepted by the Council on Graduate Stu dy and Research in partial fulfill­ ment of the requirements for the degree of MASTER.. 0£_.BUSINESS..ADMMXSTBATIOM..........

D a te .

F aculty C om m ittee

F? . Chairman

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(1?

xVC^ *

\ *

PREFACE T h is t h e s i s w i l l a tte m p t t o a n a ly z e t h e e f f e c t on e m p lo y e rs o f c o m p u lso ry n o t i f i c a t i o n c ie s

( lis tin g ) of vacan­

( j o b s ) b y him t o t h e p u b l i c em ploym ent s e r v i c e . I t may b e t h a t t h e b a s i c , u n d e r l y i n g , s u b c o n s c io u s

m o tiv e on t h e p a r t o f t h e w r i t e r h a s b e e n t o c o n t r i b u t e an i d e a , o r p l a n , w h ic h m ig h t h e l p i n a l l e v i a t i n g econom­ i c d i s t r e s s c a u s e d b y u n em p lo y m en t.

N e v e rth e le s s , i t r e ­

m ains t h e a u th o r * s i n t e n t i o n t o a p p ro a c h t h i s p ro b le m fro m th e p o i n t o f v ie w o f t h e e m p lo y e r; t o a n a ly z e o b je c ­ t i v e l y t h e p r o s an d co n s o f th e p r o p o s i t i o n a s i t m ig h t a f f e c t h im . The l a c k o f w r i t t e n m a t e r i a l h a s b e e n a f a c t o r lim itin g th e w r ite r in h i s in v e s tig a tio n of t h i s s u b je c t. L e t t e r s t o a u t h o r s , e c o n o m is ts , g o v ern m en t o f f i c i a l s and S c h o o ls o f L i b r a r y S c ie n c e h av e p ro v e d f r u i t l e s s .

How­

e v e r , q u e s tio n s a s k e d o f e m p lo y e rs i n th e Los A n g ele s a r e a b r o u g h t much o f t h e in f o r m a ti o n on w h ic h C h a p te r I I I i s based*

M a t e r i a l fro m C anada s e r v e d a s an e x c e l l e n t

exam ple o f how t h e p r o p o s a l a c t u a l l y o p e r a t e s when a p ­ p lie d in a c a p i t a l i s t c o u n try . The w r i t e r w o u ld l i k e t o p o i n t o u t t h a t t h i s p r o ­ p o s a l , th e co m p u lso ry n o t i f i c a t i o n o f v a c ia n c ie s , h a s r e ­ c e iv e d c o n s i d e r a b l e a t t e n t i o n fro m t h e I n t e r n a t i o n a l

iii L ab o r O r g a n i z a t i o n , and? t h a t i t i s i n e f f e c t i n m ost o f t h e i n d u s t r i a l i z e d c o u n t r i e s o f E u ro p e , The a p p e n d ix c o n t a in s th o s e b o o k s th r o u g h w h ich t h e a u th o r l a b o r i o u s l y g ro p e d i n a v a i n e f f o r t t o f i n d d a ta s p e c i f i c a l l y d e a lin g w ith th e s u b je c t .

Y e t, when

w r i t i n g t h i s t h e s i s , t h e v a lu e o f t h e b a c k g ro u n d i n f o r ­ m a tio n gained? fro m t h e s e " t e x t s * p ro v e d t h e i r w o rth as re s e a rc h m a te ria l. The w r i t e r th a n k s th o s e w hose s u p e r v i s i o n con­ t r i b u t e d t o t h e p o s s i b i l i t y t h a t t h i s p a p e r m ig h t make a c o n t r i b u t i o n a s a s tu d y sho w in g t h e em p lo y er f s s ta k e in th e is s u e .

T h is h a s b e e n th e w r i t e r ' s goial fro m th e

b e g in n in g . I n sum m ary, t h e a u th o r w ould u r g e t h e r e a d e r t o c o n s id e r t h a t t h i s t r e a t i s e i s a M a s t e r 's T h e s i s , n o t a m a s te rp ie c e .

I f i t s e r v e s o n ly t o p ro v o k e th o u g h t i n

t h e r e a d e r , i t s p u rp o s e w i l l h a v e b e e n a c c o m p lis h e d .

TABLE OP CONTENTS CHAPTER

PACE

PREPACE

ii

I*

THEORY AND RAMIFICATIONS

. . . . . . . .

1

• • • • • • • • •

1

E n fo rc e m e n t • • • • • • • • • • • • • •

3

R a m if ic a tio n s • • • • • • • • • • • • •

5

Summary • • . • • • • • • • • • • • • .

6

P ro p o s e d C o m p o sitio n

II.

VALUES TO TEE EMPLOYER PROM THIS PROPOSAL O r g a n iz a tio n o f t h e L&bor M arket A l l e v i a t i o n o f Econom ic C r i s i s

8

. • •

8

• • • •

13

D im in u tio n o f th e D e e q u a l i z a t i o n P ro b le m

• • • • • • • • • • • . • *

M in im iz in g o f4 B u s in e s s F a i l u r e s • • • •

17 21

Stem m ing th e T id e o f A n ti- F r e e E n t e r p r i s e P ro p a g a n d a

• • * • • * . .

21

R e d u c in g th e Number o f E m p lo y a b les on t h e P u b lic D o le . • • • • . . • • • • Summary • III.

OBJECTIONS TO THE PROPOSAL

22; 23

. . . . . . .

25

The Door i s Opened t o F u r t h e r G overn­ m e n ta l E n cro ach m en t Upon P r i v a t e E n te rp ris e

26

V

CHAPTER

PAGE The C o o p e ra tio n o f a l l Em ployers; Would! b e R eq u ired ! t o Make T h is P la n E f f e c ­ tiv e *

Liacking T h i s , E m p lo y ers Who

C o o p e ra te Would S u f f e r a s A g a in s t T hose Who do n o t C o o p e ra te

• • • • •

&7

The Tax B u rd en i s H eavy E nough R ig h t Now W ith o u t I n c r e a s i n g i t a n y F u r t h e r

29

The P o l i t i c i a n s and t h e R a c k e te e r s Would b e G iven A d d itio n a l Power • • •

30

The P la n Would I n c r e a s e O f f ic e E x p en se And C ause D eliay i n th e H ir in g P r o c e s s

30

R e lu c ta n c e o f E m p lo y ers t o D ea l W ith t h e P u b lic Employm ent S e r v ic e • • • •

31

The S t a t i s t i c s W ill B r in g t o L ig h t the:

IV .

P o o ls o f L ab o r • • • • • • • • • • •

32

Summary • • • • • * • • • • • • • • • •

33

COMPULSORY NOTIFICATION OF VACANCIES IN CANADA

................... .... . .

C a n a d ia n L e g i s l a t i o n

• • • • • • • • •

34 34

N o t i f i c a t i o n o f E m p lo y e r’ s R e q u irem e n ts;

• • • • • • • • • • •

35

N o t i f i c a t i o n o f H ir in g s an d S e p a ra tio n s • • • • • • • • • • • •

35

Vi CHAPTER

PAGE. C o m p ila tio n an d p r e s e n t a t i o n o f S ta tis tic s ;

. • • • • • • • • • • • «

A n ia ly s is o f t h e S t a t i s t i c a l T iables

• •

37 38

P h o t o s t a t e d C o p ie s o f The Liabour G iagette « • • • • • • • • • • • • « •

V.

V I.

42

ANALYSIS OP PROPOSAL WITH REFERENCE TO THE UNITED^ STATES •

48

P ro b a b le O p e r a tio n s « • • • • • • • • •

49

R a m i f i c a t i o n s o f t h e P ro p o sia l • • • • ' •

50

SUMMARY AND: CONCLUSIONS.............................................

53

R eview o f P r e c e d in g C h a p t e r s ..........................

53

C o n c lu s io n s BIBLIOGRAPHY

56 58

CHAPTER

I

THEORY AND RAMIFICATIONS E m p lo y ers should! b e c o m p e lle d t o n o t i f y t h e l o c a l p u b l i c em ploym ent s e r v i c e w h en ev er t h e r e i s a jo b op en ­ in g .

Use o f t h i s o f f i c e f o r f i l l i n g t h e jo b s h o u ld n o t

b e c o m p u ls o ry .

T h is i s t h e sum and s u b s t a n c e o f t h e

w o rk in g h y p o t h e s i s t o w h ic h t h e p a p e r i s d e v o te d . The t h e o r y em b o d ies t h e p r o p o s a l t h a t t h e em p lo y er b e c o m p e lle d t o in f o rm th e l o c a l o f f i c e o f th e p u b l i c em­ p lo y m e n t e x c h an g e a b o u t e v e r y jo b f o r w h ic h h e i n t e n d s t o h i r e an em p lo y ee .-

I t i s f u r th e r s t i p u l a t e d t h a t , a t th e

e a r l i e s t c o n v e n ie n t t i m e , h e s h a l l s u p p ly in f o r m a ti o n a b o u t t h e jo b on t h e s t a n d a r d jo b d a t a fo rm s e n t t o h i s p la c e o f em p lo y m en t.

T h is g iv in g o f i n f o r m a ti o n i s th e

o n ly c o m p u lsio n p l a c e d upon t h e e m p lo y e r.

T h ere i s no

dem and t h a t he a c c e p t r e f e r r a l s fro m t h e p u b l i c a g e n c y , or i n a n y o th e r way ch an g e fro m h i s p r e s e n t m ethod o f r e c r u itin g h e lp . 1.

PROPOSED COMPOSITION I t I s recom m ended t h a t an em p lo y er n o t i f y t h e l o ­

c a l p u b l i c em ploym ent s e r v i c e w hen ev er h e h a s n e e d o f an e m p lo y e e .

T h ese n o t i f i c a t i o n s w i l l s u p p ly t h e r e s e a r c h

d e p a rtm e n t o f th e p u b l i c em ploym ent o f f i c e w i t h s t a t i s ­

t i c a l d a t a w h ic h a r e n e e d e d t o h e l p i n t e r p r e t t h e e c o ­ nom ic w e l l - b e i n g o f t h e c o u n try *

T o t a l v a c a n c ie s w i l l

b e m atch ed a g a i n s t t o t a l num ber o f a p p l i c a n t s f o r jo b s* The r e s u l t w i l l b e a ^qu a s i - a u t o m a t i c 11 g u id e u s e f u l as a b a s i s f o r i n t e r p r e t i n g b u s i n e s s tr e n d s *

I n t u r n , th e

r e s e a r c h d e p a rtm e n t can s u p p ly t h e b u s in e s s m a n w ith n a r ­ r a t i v e i n t e r p r e t a t i o n s o f w h at h a s h a p p e n e d , w h at i s o c ­ c u r i n g , and w h at i s l i k e l y t o o c c u r i n t h e f i e l d o f em­ p lo y m e n t.

U sin g t h e s e i n t e r p r e t a t i o n s and p r e d i c t i o n s ,

t h e e n t r e p r e n e u r i s b e t t e r a b le t o p la n f o r t h e f u t u r e . The n o t i f i c a t i o n w o u ld t a k e t h e fo rm o f f i l l i n g o u t a r e q u e s t b la n k (form ); on w h ic h th e em p lo y er w o u ld l i s t t h e q u a l i f i c a t i o n s d e s i r e d , and w hat he h a s t o o f ­ f e r i n t h e way o f s a l a r y and jo b d e s c r i p t i o n *

'I f sp e ed

i s r e q u i r e d , th e n t h i s in f o r m a ti o n c o u ld b e g o t t e n h a s t ­ i l y o v e r t h e phone and t h e fo rm c o m p le te d a t a f u t u r e tim e *

I t i s u n n e c e s s a r y h e r e t o d e a l w ith e x c e p t i o n s ,

o r d e v i a t i o n s fro m th e r u l e * As so o n as s u c h n o t i f i c a t i o n h a s b e e n m ade, t h e em p lo y er c o u ld c o n t a c t a n y o th e r m edia f o r r e c r u i t i n g h e l p ; m ed ia s u c h a s p r i v a t e n o n - p r o f i t em ploym ent a g e n ­ c i e s , p r i v a t e p r o f i t - m a k i n g em ploym ent a g e n c i e s , s c h o o l s , n e w sp a p e r a d v e r t i s i n g , u n io n h i r i n g h a l l s , and em p lo y ees o f th e f ir m . The em p lo y er eian r e f u s e t o i n t e r v i e w p r o s p e c t i v e

em p lo y ee s who m ig h t h e s e n t fro m t h e l o c a l p u b l i c em ploy­ m ent o f f i c e * m ade.

He c o u ld s o s t i p u l a t e when n o t i f i c a t i o n i s

T h u s, t h e o n ly c o m p u ls io n im p o sed b y t h i s p la n i n ­

v o lv e s th e g i v i n g o f i n f o r m a t i o n , n o th in g e l s e . A ro u n d e d s y s te m w ould r e q u i r e t h a t s o u r c e s f o r o b t a i n i n g p r o s p e c t i v e em p lo y ees i n q u i r e o f t h e em p lo y er w h e th e r he h a s l i s t e d t h e vaciancy w ith t h e p u b l i c em ploy­ m ent o f f i c e *

I t w ould b e made u n la w f u l f o r t h e s e o th e r

j o b - f i l l i n g a g e n c ie s t o r e f e r an a p p l i c a n t u n t i l a v e r i ­ f i c a t i o n h a d b e e n made o f t h e l i s t i n g o f t h e jo b w i t h th e p u b l i c em ploym ent s e r v i c e . A jo b - o rd e r- n u m b e r s y s te m m ig h t b e d e v i s e d t o i n ­ s u r e c o m p lia n c e w i t h t h e la w .

N ew spapers th e n w o u ld r e ­

q u i r e s u c h a number b e f o r e an a d v e r tis e m e n t c o u ld b e p r i n ­ te d *

When an em p lo y er p o s te d a n o t i c e on th e b u l l e t i n

b o a r d in f o r m in g h i s em p lo y ees o f a jo b o p e n in g , t h e o r d e r number w o u ld a p p e a r on th e n o t i c e .

No r e f e r r a l a g e n c y ,

w h e th e r i t b e s c h o o l , u n io n h i r i n g h a l l o r p r i v a t e ag e n ­ c y w ould b e a llo w e d t o make a r e f e r r i a l u n t i l t h e y h a d th ia t o r d e r num ber on t h e i r c a r d s . II.

ENFORCEMENT E n fo rc e m e n t o f t h i s p la n i s n o t to o d i f f i c u l t .

E xam ples o f g o v e rn m e n ta l s u p e r v i s i o n o f t h e l a b o r m a rk e t t o i n s u r e c o m p lia n c e , b y e m p lo y e r s , w i t h l e g i s l a t i o n i n -

t r o d u c i n g c o m p u lso ry f e a t u r e s i n t o t h e g e n e r a l e m p lo y e e h i r i n g p ro c e s s! a r e t o b e fo u n d i n b o t h I t a l y and Caniada. I n t h e fo rm e r', em p h a sis i s p l a c e d on r e g u l a t i n g t h e h i r ­ in g p ro c e ss#

A lth o u g h t h i s b y p a s s e s t h e n o t i f i c i a t i o n o f

v a c a n c i e s , i t s v a lu e a s e x p e r ie n c e l i e s i n th e s y s te m d e ­ v i s e d t o i n s u r e c o m p lia n c e b y b o t h e m p lo y e rs and em ploy­ ees#

E x p e r ie n c e i n t h a t c o u n t r y show s t h a t :

T h e re h a s b e e n some e v a s io n o f t h e la w , b u t a s y s te m o f w o rk m en 's p a s s e s h a s b e e n in t r o d u c e d w h ic h w i l l , i t i s h o p e d , p r e v e n t e m p lo y e rs fro m h i r i n g l a ­ b o r o th e r w is e t h a n th r o u g h t h e e x c h a n g e s# 1 I n Cianiada, th e r e q u ir e m e n t th ia t t h e em p lo y er r e ­ p o r t on t h e i n d i v i d u a l en g ag em en t o f new em p lo y ees and u n f i l l e d v a c a n c ie s w as ia lte r e d i n 1947# r e p o r t i n g o f v a c a n c ie s i s r e q u i r e d .

Now, o n ly t h e

P a r t o f t h e b u rd e n

s t i l l r e s t s w i t h e a c h new em ployee who p r e s e n t s h i s u n ­ em ploym ent in s u r a n c e b o o k b e f o r e he can b e h i r e d , or w i t h i n a r e a s o n a b le tim e a f t e r en g ag em en t i s e f f e c t e d # 2 Human c o n d u c t d o e s n o t d i f f e r g r e a t l y fro m one c o u n t r y t o a n o th e r#

L e g i s l a t i o n w h ich h a s b e e n s u c c e s s ­

f u l i n I t a l y an d C anada c o u ld b e a p p l i e d w ith c o r r e s ­ p o n d in g success^ i n t h e U n ite d S t a t e s and e ls e w h e re # 1 •R o y al I n s t i t u t e o f I n t e r n a t i o n a l A f f a i r s , Un­ em p lo y m en t, An I n t e r n a t i o n a l P ro b le m , p# 321* 2 " N a t io n a l Em ploym ent R eg u latio n s® / The L abour G a z e t t e , A p r i l , 1 9 4 7 , p . 570*

5 III.

RAMIFICATIONS The p ro b le m o f w ed d in g jo b and w o rk e r a r i s e s i n a

c o m p e ti tiv e economy b e c a u s e n e i t h e r th e p r i v a t e em p lo y er n o r t h e w o rk e r assum es an y b a s i c r e s p o n s i b i l i t y f o r i n ­ fo rm in g o t h e r s o f jo b v a c a n c ie s and a v a i l a b l e la b o r • M o re o v e r, n o t o n ly i s t h e p ro b le m b ey o n d t h e i n d i v i d u a l em p lo y e r an d w o rk e r i n s c o p e , b u t i t i s o f n a t i o n a l and i n t e r n a t i o n a l im p o rt*

The c a p i t a l i s t econom y, w h e re in

i n d i v i d u a l s em ploy o t h e r s f o r t h e p u rp o s e o f p ro m o tin g p r i v a t e giain i s w o rld -w id e * em ploym ent and jo b p la c e m e n t*

So a r e i t s p ro b le m s o f u n ­ T hese a r e t h e p ro b le m s

w h ic h demand a b r o a d e r a g e n c y : t h e g o v ern m en t em ploy­ ment s e r v i c e * The m ain p u rp o s e o f t h i s p a p e r i s t o p ro b e t h e r e ­ l a t i o n s h i p b e tw e e n t h e em p lo y er g ro u p and th e p u b l i c em­ p lo y m e n t o f f i c e ; t o d e a l w i t h one q u e s t i o n : ”How w i l l t h e e m p lo y er g ro u p i n o u r econom y b e a f f e c t e d b y t h e p ro p o ­ s a l t o make c o m p u lso ry t h e n o t i f i c a t i o n

( lis tin g ) of a ll

v a c a n c ie s ( jo b s ) w i t h t h e l o c a l p u b l i c em ploym ent o f f i c e ? ” T h is i n t r o d u c t i o n w o u ld b e in c o m p le te i f m e n tio n was n o t miade o f t h e em ployee g ro u p i n o u r economy a n d , more s p e c i f i c a l l y , t h e u n em p lo y ed — a c t u a l and p o t e n t i a l * I t i s en o u g h t o m e n tio n i n p a s s i n g , an d a c c e p tin g a s h a v ­ i n g a good d e a l o f t r u t h , t h e i d e a t h a t t h i s p r o p o s a l

6 would! Ire o f immense v a l u e t o t h e w o rk in g p o p u l a t i o n «

The

^ m is e r a b le tra m p in g a f t e r p r o b l e m a t i c a l w ork” w ould b e l e s s e n e d t o a c o n s i d e r a b l e e x te n t*

A l l jo b s a v a i l a b l e

l o c a l l y and many a v a i l a b l e i n o th e r r e g i o n s c o u ld b e l i s t e d i n one c o n v e n ie n t p l a c e — th e l o c a l p u b l i c em­ p lo y m e n t o f f i c e *

The o r i g i n a l i n t e n t b e h in d t h e c r e a ­

t i o n o f t h e p u b l i c em ploym ent s e r v i c e , w h e th e r i n t h e U n ite d S t a t e s o r i n an y f o r e i g n c o u n t r y , was t h e e s t a b ­ lis h m e n t o f m a c h in e ry f o r a s s i s t i n g t h e m o b i l i t y o f l a ­ b o r* C o u p led w i t h t h e s e r v i c e o f jo b f i n d i n g , t h e em­ p lo y m e n t s e r v i c e h a s a c te d a s t h e a g e n t f o r t h e g o v e rn ­ ment i n a d m i n i s t e r i n g t h e unem ploym ent in s u r a n c e p r o ­ gram* O nly one a s p e c t o f t h e s i t u a t i o n h o w e v e r, w i l l b e d i s c u s s e d h e r e : th e e f f e c t o f t h e a f o r e m e n tio n e d p ro p o ­ s a l on t h e em p lo y er g ro u p * IV .

SUMMARY B a s i c a l l y , i t i s p ro p o s e d t h a t a l l em p lo y e rs b e

r e q u i r e d toy law t o s u p p ly t h e l o c a l p u b l i c em ploym ent o f f i c e w i t h in f o r m a ti o n c o n c e r n in g a l l jo b s f o r w h ich t h e y w i l l n e e d t o h i r e em p lo y ees* w ould b e c o m p e lle d t o do*

T hat i s a l l th e y

To i n s u r e s u c h c o m p lia n c e ,

a jo b - o rd e r- n u m b e r s y s te m h a s b e e n recom mended*

It

w ould a s s i g n a num ber t o e a c h v a c a n c y n o t i f i e d iand e n -

7 title

t h e em p lo y er t o lo o k anyw here h e wiants f o r h e l p . I t was shown how e n fo rc e m e n t i s c a r r i e d o u t to d a y

i n b o t h I t a l y and C a n a d a , i n d i c a t i n g t h a t c o o p e r a tio n i s s t r e s s e d r a t h e r th a n r e s t r a i n t . The f o llo w in g c h a p t e r s w i l l d is c u s s ? t h e m e r i t s o f , a n d o b j e c t i o n s t o , t h i s p r o p o s a l; r e v ie w t h e C a n a d ia n e x ­ p e r i e n c e w i t h s u c h a p l a n ; and a tte m p t t o a n a ly z e t h i s i d e a i n r e s p e c t t o t h e U n ite d S t a t e s .

CHAPTER

II

VALUES TO THE EMPLOYER FROM THE PROPOSAL E m p lo y ers h a v e r e a l a n d p r a c t i c a l b e n e f i t s t o g a in fro m t h e c o m p u lso ry n o t i f i c a t i o n o f v a c a n c ie s *

C o n s id e r ­

a t i o n i s g iv e n t o s i x m a jo r p o i n t s p r e s e n t e d as a rg u m e n ts i n f a v o r o f t h i s p r o p o s a l* 1* O r g a n iz a tio n o f t h e l a b o r m a r k e t. 2* A l l e v i a t i o n o f econom ic c r i s i s . 3 . D im in u tio n o f t h e d e c a s u a l i z a t i o n p ro b lem * 4* M in im iz in g o f b u s in e s s? f a i l u r e s * 5* Stem m ing t h e t i d e o f a n t i - f r e e e n t e r p r i s e p ro p ag an d a . 6* R e d u c in g t h e number o f e m p lo y a b le s on th e p u b lic d o le . I.

ORGANIZATION OF THE LABOR MARKET The o r g a n i z a t i o n o f t h e la b o r m a rk e t on a b a s i s

c o m p a ra b le w ith t h e o th e r c l e a r i n g a g e n c ie s i n o u r e c o ­ nom ic s y s te m w i l l b e t h e r e s u l t o f t h e i n t r o d u c t i o n o f t h i s p ro p o s a l.

The f i n d i n g s o f t h e R o y a l Com m ission on

Unem ploym ent I n s u r a n c e , G re a t B r i t a i n , 1 9 0 9 , c o n c lu d e d : The n o rm a l g l u t t i n g o f t h e l a b o r m a rk e t s p r a n g fro m d i s o r g a n i z a t i o n o f th e l a b o r m a r k e t, fro m t h e f a c t t h a t lo n g a f t e r e x c h a n g e s h a d b e e n e s t a b l i s h e d f o r e v e r y t h i n g n e e d in g t o b e b o u g h t an d s o l d , t h e

9 p r e v a i l i n g m ethod o f s e l l i n g t h e m ost p e r i s h a b l e and m ost e s s e n t i a l good o f a l l , t h e s e r v i c e o f human b e ­ i n g s , c o n tin u e d ! t o b e t h e m e d ie v a l m ethod o f h aw k in g i t fro m d o o r t o d o o r . 1 T h is i s a d e s c r i p t i o n y e a r s ago#

o f m ethods em ployed f o r t y

Today t h e r e i s no r e l a t i v e c h a n g e .

The hawk­

in g o f l a b o r fro m f a c t o r y t o f ia c to r y i s s t i l l a g e n e r a l p r a c t i c e i n t h e U n ite d S t a t e s .

The r e p o r t c o n t i n u e s :

The rem ed y f o r t h i s e v i l was t o r e p l a c e t h e hawk­ in g o f l a b o r b y o r g a n i z a t i o n o f t h e l a b o r m a rk e t th r o u g h em ploym ent e x c h a n g e s , t o s h o r t e n t h e p assiag e fro m jo b t o jo b i n e v e r y i n d u s t r y , t o b r i n g t h e r e ­ c r u i t i n g o f l a b o r b y e a c h i n d u s t r y i n t o a c c o r d w ith i t s to tia l re q u ire m e n ts , to r e p la c e th e la r g e s t a g ­ n a n t u n d e re m p lo y e d r e s e r v e s c o l l e c t e d i n t h e ca su ia l i n d u s t r i e s b y s m a ll m o b ile b o d ie s o f men a d e q u a te ly em p lo y ed i n w o rk in g so m etim es a t one p liace an d some­ tim e s iat a n o t h e r . 2 By a i d i n g t h e m o b i l i t y o f l a b o r , t h e r e p o r t s t a t e d t h a t y e a r - r o u n d em ploym ent c o u ld b e p r o v id e d an d t h a t p o o ls o f l a b o r c o u ld b e l a r g e l y e lim in a te d # T oday t h e c r e d i t c l e a r i n g c o m p a n ie s , t h e m erch an ­ d i s e b u y in g o f f i c e s , th e f r u i t g ro w ers* e x c h a n g e s an d t h e s t o c k , b o n d and g ria in m a rk e ts a r e a l l e x c e l l e n t e x a m p le s o f h i g h l y d e v e lo p e d a g e n c ie s c r e a t e d t o s e r v e p r iv ia te e n ­ te rp ris e .

Y e t, e v e r y f i r m s t i l l c a r r i e s i t s

s i v e , c o s t l y p e r s o n n e l d e p a r tm e n t.

own e x t e n ­

T h ere h a s b e e n no a t ­

1 R o y a l C om m ission on Unemployment I n s u r a n c e , P i n a l R e p o rt , l ^ f f ~ p . ' ' " T O 7 " ------------------------2 I b id ., p . 508.

10 te m p t on t h e p a r t o f5 f r e e e n t e r p r i s e t o o r g a n iz e t h e em­ p lo y m e n t m a rk e t as many o th e r p h a s e s o f b u s in e s s : h a v e b e e n o rg a n iz e d * The e x i s t e n c e o f a p u b l i c em ploym ent s e r v i c e i n ­ d i c a t e s a demand b y t h e p u b l i c f o r o r g a n i z a t i o n o f t h i s phase o f b u s in e s s a c t i v i t y .

H is to ric ia l tre n d s o u tlin e d

i n r e c e n t c o n v e n tio n s o f t h e I n t e r n a t i o n a l L abor O rg a n i­ z a t i o n , 3 p o i n t t o t h e g ro w in g demand f o r a s e r v i c e t o r e p l a c e t h e h a p h a z a rd m ethod o f r e c r u i t i n g l a b o r .

A t­

k in s o n c l e a r l y e x p r e s s e s t h e p r e s e n t a t t i t u d e to w a rd s th e s e r v i c e s Todiay t h e f e d e r a l g o v ern m e n t an d t h e s t a t e s (U n i­ t e d S t a t e s ) a r e c o m m itte d t o t h e p o l i c y o f m a in ta in ­ in g p u b lic em ploym ent o f f i c e s . The p ro b le m i s no l o n g e r w h e th e r t h e r e s h a l l b e s u c h o f f i c e s , b u t r a t h ­ e r how t o d e v e lo p an e f f i c i e n t s y s te m — one t h a t w i l l command t h e c o n f id e n c e and p a tr o n a g e o f e m p lo y e r s .^ The s e r v i c e h a s an e l a b o r a t e sy s te m f o r p la c e m e n t, b u t h a s h a d t o w a it an d i s s t i l l w a i t i n g f o r jo b n o t i f i ­ c a t i o n b y t h e e m p lo y e r.

I f t h e em p lo y er n o t i f i e s t h e

s e r v i c e o f v a c a n c i e s , and e f f i c i e n t s y s te m can r e s u l t , one c a p a b le o f commanding t h e c o n f id e n c e an d p a tr o n a g e o f b o t h e m p lo y e rs and e m p lo y e e s . 3 I n t e r n a t i o n a l L ab o r O r g a n i z a t i o n , Employm ent S e r v ic e O r g a n i z a t i o n , 1 9 4 8 , R e p o r ts V ( l ) , V f£ )', Sup­ p le m e n t , I V ( 1 ) , IV ( 2 ) , and IV (2), S u p p le m e n t• 4 Raymond C . A tk in s o n , Em ploym ent S e r v ic e i n th e U n ite d S t a t e s , p . 5 .

B e n e f i t s , a c c r u i n g t o t h e em p lo y er fro m a w e l l o r g a n iz e d la b o r m a rk e t c e n t e r e d i n t h e p u b l i c em ploy­ ment s e r v ic e ,w o u ld b e p l e n t i f u l * A*

Ho lo n g e r w o u ld e a c h em p lo y er d u p l i e i a t e , and t h e r e

b y w a s te money, i n m a in ta in in g an e la b o r ia te p e r s o n n e l r e c o rd s d e p a rtm e n t*

H ot o n ly h a s t h e a v e ra g e em p lo y er f i l e s

o f w a s te d a p p l i c a t i o n b l a n k s , b u t many co m p an ies h av e a p ­ p l i c a t i o n s fro m t h e same i n d i v i d u a l s * lic

F i l e s o f th e pub­

em ploym ent s e r v i c e c o u ld re d u c e t h e num ber o f a p p l i ­

c a t i o n s fro m an i n d i v i d u a l t o o n e , u p - t o - d a t e in f o r m a ti o n s h e e t f o r t h e e n t i r e b u s in e s s : com m u n ity .

O n ly a s i n g l e

f o llo w - u p on r e f e r e n c e s w o u ld b e n e c e s s a r y * E x te n s iv e w a i t i n g room s d e v o te d t o th e p e r s o n n e l d e p a rtm e n t c o u ld b e e l i m i n a t e d w i t h t h e i r accom p an y in g c o s tly s t a f f of in te rv ie w e rs .

A p titu d e t e s t i n g i s an ­

o th e r g ro w in g e x p e n se ite m w h ic h t h e em ploym ent s e r v i c e c o u ld l a r g e l y e l i m i n a t e b y p r o v id in g s u c h s e r v ic e *

It

a l r e a d y d o e s b u t e m p lo y e rs f a i l t o t a k e a d v a n ta g e o f i t * B*

The tim e spian b e tw e e n p l a c i n g an o r d e r f o r an em­

p lo y e e and g e t t i n g a s a t i s f a c t o r y a p p l i c a n t w o u ld b e ma­ t e r i a l l y d im i n is h e d .

The o r g a n i z a t i o n o f th e c l e a r a n c e

d e p a rtm e n t o f t h e ex ch an g e i s s u c h t h a t t h e em p lo y er *s n e e d s ca n b e f i l l e d on a c i t y , c o u n ty , s t a t e o r n a t i o n a l b a s is .

I n h i s b o o k , A tk in s o n s t r e s s e s t h i s s e r v i c e :

C le a r a n c e I s an e s s e n t i a l f e a t u r e o f a n y em ploy­ m ent s e r v i c e . T h is i s a s e l l i n g p o i n t w i t h a l l em­ p l o y e r s . I t r e d u c e s o r e l i m i n a t e s t h e n e e d t o ad ­ v e r t i s e f o r l a b o r . I t p r o v id e s t h e o r d e r l y means o f o b t a i n i n g q u a l i f i e d w o rk e rs I n a p p r o p r i a t e num bers fro m th e n e a r e s t p o i n t s a t w h ic h th e y a r e a v i a i l a b l e .^ C.

E m p lo y e rs w o u ld a t l a s t g e t v a l u e f o r t h e money

t h e y a r e now s p e n d in g :.

The ex c h an g e i s s u p p o r te d b y th e

t a x p a y e r s , y e t t h e s e p e o p le do n o t u s e a s e r v i c e f o r w h ic h t h e y a r e p a y i n g , and w h ic h h a s b e e n d e s ig n e d t o s e r v e t h e i r n e e d s s a t i s f a c t o r i l y and c o m p le te ly .

In ­

d u s t r ie s e x p e rie n c in g s e a s o n a l f l u c t u a t i o n s , r e q u ir in g m ig r a t o r y h e l p , or u s i n g c a s u a l and em erg en cy h e l p w ould b e n e f i t m ost d i r e c t l y fro m an e f f i c i e n t s e r v i c e .

On

s h o r t n o t i c e i t can o b t a i n f o r them n e e d e d e m p lo y e e s , an d th e n a i d i n th e re -e m p lo y m e n t o f t h e w o rk e rs i n o th e r in d u s trie s .

J u s t a s so o n a s t h e em p lo y er cian no lo n g e r

p r o f i t a b l y c a r r y th em on h i s p a y r o l l , th e s e r v i c e c o u ld a tte m p t t o p l a c e th em e ls e w h e r e .

No e x i s t i n g p r i v a t e

s e r v i c e c a n a c c o m p lis h s u c h a t a s k i n th e i n t e r e s t s o f t h e e m p lo y e r. D.

E m p lo y ers c o u ld s a v e money th r o u g h d im in is h e d u n ­

em ploym ent in s u r a n c e b e n e f i t p ay m en ts t o fo rm e r e m p lo y e e s, and t h e c o n s e q u e n t r e d u c t i o n in t h e i r p a y r o l l t a x r a t e . 5 . I b id ., p . 7

13 The l a r g e r t h e ac cu m u late d ; fund; i n t h e e m p lo y e r’ s? a c c o u n t, th e lo w e r h i s ta x ; r a t e .

I n s t e a d o f w a i t i n g , e m p lo y e rs

w ould s a v e , a s w o u ld e m p lo y e e s , b y s p e e d y f i l l i n g

of va­

c a n c ie s . III.

ALLEVIATION OP ECONOMIC CRISIS I f t h i s p r o p o s a l w ere a d o p te d an d made t h e b a s i s

f o r a so u n d p u b l i c w o rks p ro g ra m , c y c l i c a l f l u c t u a t i o n s w o u ld b e f o r e s e e n and m et more e f f i c i e n t l y *

Econom ic

d e p r e s s i o n s c o u ld b e made e i t h e r l e s s s e v e r e o r e r a d i ­ c a t e d ; i n f l a t i o n and d e f l a t i o n c o u ld b e made s u b j e c t t o g re a te r c o n tro l. C y c l i c a l v a r i a t i o n s i n b u s i n e s s a c t i v i t y , th e accom pan y in g d i s l o c a t i o n s o f i n d u s t r y and l a b o r , and th e w aves o f econom ic d i s t r e s s c a n b e a f f e c t e d b y p la n n e d p u b l i c i n v e s tm e n t.

The N a ti o n a l R e s o u r c e s B o a rd h a s

s a id : F o r a g e n e r a t i o n or more th e p o s s i b i l i t y o f u s in g th e c o n s t r u c t i o n o f p u b l i c w o rk s a s a ’’b a la n c e w h e e l” to c o u n te ra c t th e c y c lic a l o s c i l l a t i o n s of b u s in e s s a c t i v i t y h a s b e e n d is c u s s e d ] b y e c o n o m is ts i n f o r e i g n c o u n t r i e s and t h e U n ite d S t a t e s . The c h i e f aim w as to ” ir o n ” o ut th e b u s in e s s c y c le . The c h i e f aim o f th e P u b lic Works P ro g ram o f 1933 was t o r e l i e v e d i s t r e s s and t o p ro m o te b u sin e ss ? r e ­ v i v a l b y p r o v i d i n g em ploym ent an d s t i m u l a t i n g t h e demand f o r p r o d u c t s . 6 N a ti o n a l R e s o u r c e s B o a rd , A R e p o rt on N a ti o n a l P la n n in g , p . 4 8 .

14 On May 2 6 , 1 9 4 4 , ia W hite P a p e r on Em ploym ent P o l ­ i c y w as p u b l i s h e d b y t h e G overnm ent o f G re a t B r i t a i n .

W.

H. B e v e rid g e s e e s s i g n i f i c a n c e i n t h i s r e p o r t . The P a p e r , w i t h i t s c o m p re h e n siv e s u r v e y o f em ploy­ m ent p r o b le m s , i s t h e p r a c t i c a l p r o o f t h a t t h e c e n ­ t r a l m a c h in e ry o f G overnm ent i n G re a t B r i t a i n a t l a s t in c l u d e s an o rg a n c a p a b le o f e x p e r t s t u d y o f g e n e r a l econom ic p r o b le m s , a s t h e b a s i s o f o r d e r l y f o r s e e i n g t r e a t m e n t o f them #’? T he R e p o rt s p e c i f i c a l l y r e f e r s t o th e q u e s t i o n under d is c u s s io n . The p a p e r an n o u n c es t h a t t h e G overnm ent a c c e p t ttas one o f t h e i r p r im a r y aim s and r e s p o n s i b i l i t i e s t h e m a in te n a n c e o f a h i g h an d s t a b l e l e v e l o f em­ ploym ent!! T h is m eans h a v in g na p o l i c y f o r m ain ­ t a i n i n g f u l l em ploym ent1*. T h is i s t h e c r i t i c a l d e c i s i o n w h ich m ust b e ta k e n t o p r e v e n t mass* unem ploym ent (o r mass d e c l i n e i n b u s ­ i n e s s a c t i v i t y ) . A nd, th e p r i n c i p a l m easu re i s t h a t o f e x p a n d in g and c o n t r a c t i n g p u b l i c in v e s tm e n t on p la n s p r e p a r e d b e f o r e h a n d , t o o f f s e t c o n t r a c t i o n and e x p a n s io n i n b u s i n e s s a c t i v i t y . 8 As an o f f i c i a l docum ent an d d e c l a r a t i o n o f p o l i c y , t h e W h ite R ap er i s e p o c h -m a k in g .

B u t, ev en b ey o n d t h a t ,

t h e R e p o rt r e p r e s e n t s a c o a l i t i o n o f g o v ern m en t and p r i ­ v a te e n t e r p r is e .

T h u s, i t s p e a k s f o r tw o m ajo r se g m e n ts

o f t h e econom y i n c a p i t a l i s t i c G re a t B r i t a i n . T oday i n t h e U n ite d S t a t e s th e dem and f o r g o v e r n ­ m e n ta l m e a s u re s t o s o lv e unem ploym ent p ro b lem s r e s u l t i n g 7 B e v e r id g e , W .H ., F u l l Employm ent i n a F r e e So c ie ty , p . 259. "" 8 I b i d ., p . 260.

15 fro m b u s in e s s : c r i s i s i s i n c r e a s i n g i n momentum.

P re s i­

d e n t H a r ry S . Truman h a s an n o u n ced t h a t a p u b l i c w orks p ro g ra m i s i n p r e p a r a t i o n f o r u s e when r e q u i r e d . I n a u g u r a t i o n o t a p u b l i c in v e s tm e n t9 p ro g ra m a t t h e a p p r o p r i a t e tim e dem ands th e e x i s t e n c e o f some m eas­ u r i n g d e v ic e o th e r th a n t h e i m a g i n a t i o n .

.P a s t p e r f o r ­

mance h a s shown t h a t t h e r e i s no >>?r u l e r o f b u s i n e s s a c ­ t i v i t y 11a v a i l a b l e •

I n t h e R o y a l Com m ission R e p o r t on

P o o r L aw s, G re a t B r i t a i n , 1 9 0 5 ,10 t h e n e e d f o r a c c u r a t e and c o m p le te s t a t i s t i c s w as made one off t h e b a s e s f o r c o r r e c t i n g ^ o b v io u s d e f i c i e n c i e s 11 i n our econom ic s y s ­ te m . I n i t s r e p o r t , t h e N a t i o n a l R e s o u r c e s B o a rd r e ­ f e r r e d s p e c i f i c a l l y t o t h e n ee d f o r an o b j e c t i v e g u id e . As f o r t h e p ro b le m o f tim in g t h e r e l e a s e o f p u b ­ l i c w orks on a l a r g e s c a l e , we t h i n k t h a t an o b je c ­ t i v e , q u a s i - a u t o m a t i c g u id e m ig h t b e d e v e lo p e d th r o u g h im pro v em en t i n o u r s t a t i s t i c s o f em p lo y m e n t.11 The R e p o rt g o e s f u r t h e r an d show s how t h e m easu re m ig h t b e u s e d i n t i m i n g . When a w id e ly r e p r e s e n t a t i v e in d e x o f em ploym ent 9 The I n t e r n a t i o n a l L ab o r O r g a n iz a tio n c h a n g e d th e te r m p u b l i c w orks t o p u b l i c in v e s tm e n t b e c a u s e th e fa rm e r h a s b e e n t o o lo n g a s s o c i a t e d w i t h th e d o le s y ste m an d i s lo o k e d upon a s d e r o g a t o r y . 10 G re a t B r i t a i n , R o y a l C om m ission on P o o r Laws and R e l i e f o f D i s t r e s s ;, 1 9 0 5 , p . 625". 11 N a t i o n a l R e s o u rc e s B o a rd , o p . c i t . , p . 52

16 ( o r b u s i n e s s a c t i v i t y i n te rm s o f em ploym ent) show ed a p e r c e n ta g e d e c l i n e o f a m a g n itu d e t o h e f i x e d i n a d v a n c e , h y c a r e f u l s t u d y o f p a s t e x p e r ie n c e and a n ­ a l y s i s o f th e new f i g u r e s , t h e F e d e r a l a g e n c y c h a rg e d w i t h r e s p o n s i b i l i t y m ig h t a d v is e th e P r e s i d e n t t h a t t h e tim e h a d come t o a c c e l e r a t e p u b l i c in v e s tm e n t, ( C o n v e r s e ly , t h e r e s h o u ld a l s o b e p r e p a r e d p e r c e n ­ ta g e i n c r e a s e s o f em ploym ent ( b u s i n e s s a c t i v i t y ! so t h a t p u b l i c in v e s tm e n t m ig h t b e d e a c c e l e r a t e d . - ^ C om pulsory n o t i f i c a t i o n o f v a c a n c ie s i s p a r t o f t h e o b je c tiv e " , q u a s i - a u t o m a t i c g u i d e .

The s o u n d n e s s o f

t h i s c la im i s s u b s t a n t i a t e d b y t h e s t a t i s t i c a l t a b l e s fo u n d a t t h e en d o f C h a p te r IV .

A m o n th ly r e p o r t a p p e a r ­

in g i n th e L ab o u r G a z e t t e , an o f f i c i a l p u b l i c a t i o n o f th e D e p a rtm e n t o f L ab o r o f t h e C a n a d ia n G o v ern m en t, r e v ie w s t h e d e v e lo p m e n ts o f t h e p a s t m onth i n th e C a n ad ia n em­ p lo y m e n t f i e l d .

T a b le I I I , show s t h e num ber o f jo b s a -

v a i i a b l e an d t h e num ber o f p e o p le lo o k in g f o r g a i n f u l em­ p lo y m e n t.

The d i f f e r e n c e

( th e g r e e n l i n e i n T a b le V I)

r e p r e s e n t s t h e num ber o f th o s e s e e k in g g a i n f u l em ploym ent f o r whom p r i v a t e e n t e r p r i s e w i l l n o t p r o v id e em p lo y m en t. I t i s t h i s re m a in d e r w h ic h , when i n t e r p r e t e d i n te rm s o f a p e r c e n ta g e f i g u r e and co m p ared t o th e e s t a b l i s h e d p e r ­ c e n ta g e ( r e f e r r e d t o i n th e q u o t a t i o n fro m th e N a ti o n a l R e s o u rc e s B o a r d ) , w i l l e n a b le

t h e a p p r o p r i a t e g o v e rn ­

m e n ta l a g e n c y t o d e c id e w h e th e r t o ex p an d o r c o n t r a c t p u b l i c in v e s tm e n t. 12 I b i d . , p . 53

17 I n C a n ad a , c o m p u lsio n e x te n d s o n ly t o t h e n o t i f i ­ c a t i o n o f v a c a n c ie s *

E m p lo y ers n e e d n o t h i r e anyone fro m

t h e em ploym ent s e r v i c e .

P r i v a t e e n t e r p r i s e i n C anada h a s

n o t l o s t b y t h i s co m p u lsio n * III.

DIMINUTION OF THE, DECASUALIZATION PROBLEM C a s u a l and s e a s o n a l la b o r w h ic h r e q u i r e s h e l p can

b e n e f i t fro m s t a t i s t i e a l d a t a o b ta in e d fro m th e com pul­ s o r y n o t i f i c a t i o n o f v a c a n c ie s * E m p lo y ers o f c a s u a l o r s e a s o n a l l a b o r h a v e f o r th e p a s t t h i r t y y e a r s f a c e d a r i s i n g demiand f o r an en d t o s u c h f l u c t u a t i o n s , and f o r g r e a t e r s e c u r i t y t o th e w o r k e r s . O rg a n is e d em p lo y ees c a l l f o r th e g u a r a n t e e d a n n u a l w ag e, an ev en d i s t r i b u t i o n o f p r o d u c tio n o v e r t h e e n t i r e y e a r , an d r e s t r i c t i o n i n t h e num ber o f em p lo y ee s t o a s s u r e lo n g e r w o rk in g p e r io d s * I n E u ro p e , and p a r t i c u l a r l y i n © re a t B r i t a i n , t h i s p ro b le m h a s c o n s t a n t l y b e e n d i s c u s s e d an d i n v e s t i g a t e d * I t hiad b e e n th e p r a c t i c e o f em p lo y e rs t o e n g a g e t h e i r iia b o r , or a la rg e p ro p o rtio n of i t , ea ch day as r e q u ir e d , and t o d i s m i s s i t a s so o n a s p o s s i b l e , a f t e r t h e jo b h ad b e e n c o m p le te d . L a s c e lle s

1*5

Mass; u n d erem p lo y m en t was th e r e s u l t *

c l e a r l y shows u p th e a b u se o f th e s y s te m an d

13 L a s c e l l e s , E . C . P . , Dock L ab o r and D e c a s u a liz a t i o n , p . 18*

18 i t s d e t r i m e n t a l e f f e c t on th e em p lo y er*

By 1 9 2 5 , c e r t a i n

c o n t r o l s h a d b e e n im p o sed t o e a s e t h e s i t u a t i o n * The s y s te m o f c a l l i n g - o n i s s t i l l i n f o r c e b u t t h e i n t o l e r a b l e s i t u a t i o n no lo n g e r h o ld s good a t t h e Lon­ don Docks o r w i t h r e g a r d t o m ost o f th e e m p lo y e rs th r o u g h o u t t h e c o u n try * I n t h e f i r s t p l a c e , t h e d o c k s a r e n o lo n g e r open t o a l l com ers b e c a u s e (1); t h e Un­ io n i s u s u a l l y s t r o n g en o u g h t o d is c o u r a g e t h e e n ­ g ag em en t t o a n y l a r g e e x t e n t o f men who a r e n o t mem­ b e r s an d (2 ) e m p lo y e rs m a in ta in p e rm a n e n t and p r e f e r ­ e n t i a l l i s t s o f ^ g e n u in e d o ck ers* 1*14 T h is i s a s l i g h t im provem ent*

M asses; o f men a s ­

se m b le and a n x i o u s l y iaw ait t h e fo re m ia n ^ s e l e c t i o n f o r a d a y * s w ork w i t h t h e k n ow ledge t h a t a l a r g e p r o p o r t i o n o f them m ust b e l e f t d i s a p p o i n t e d an d h u n g r y . h a v e b i t t e r l y o p p o sed s u c h m e th o d s .

T h ese m asses

From o c c a s i o n a l v i ­

o le n c e t o dem ands f o r s e n i o r i t y an d jo b s e c u r i t y , u n io n s h av e s t r i v e n f o r im p ro v ed jo b p la c e m e n t. W* H. B e v e rid g e summed u p t h e s i t u a t i o n i n 1944 a s a c o m p le te t r a n s f o r m a t i o n fro m p re -W o rld War I I p r a c ­ tic e s . I t may b e assu m ed t h a t t h e m ain p r i n c i p l e o f th e t r a n s f o r m a t i o n ( n e c e s s i t a t e d b y t h e w ar em erg en cy ) w i l l re m a in i n p e a c e . T h a t th e men f o llo w in g s u c h o c c u p a tio n s w i l l h a v e g u a r a n te e d w e e k ly w a g e s , and t h a t t h i s w i l l l e a d i n d u e c o u r s e t o men w o rk in g f o r a s i n g l e e m p lo y in g a g e n c y o r f o r g ro u p s o f e m p lo y e r s , i n p l a c e o f t a k i n g t h e i r c h a n c e w i t h s i n g l e e m p lo y fe=»rvtscj a cch t ao nnmViAr num ber r* o f* f soatvo^ e p a r a t e f.ja ta klrin i n gc f-n - o nn np ll aan ca ea s ._ A lth o u g h t h e p ro m is e o f p e a c e - tim e b u s i n e s s ac 14 I b i d . , p . 1 9 . 15 B e v e r id g e , W .H ., o p . c i t . , p . 17Q>.

19 t i v i t y i s n o t y e t a c h ie v e d , m a in te n a n c e o f5 t h e w a r -tim e c o n t r o l h a s c o n t in u e d .

B e v e rid g e opposes; a r e t u r n t o o ld

w ays o f m a in ta in in g p o o ls o f u n d e re m p lo y e d l a b o r . I n t h e U n ite d S t a t e s , t h e u n io n s h a v e "been p a r ­ t i a l l y a b le t o o r g a n iz e

w o rk e rs i n c a s u a l an d s e a so n ia l

i n d u s t r i e s s o t h a t a v a i l a b l e w ork i s l i m i t e d t o u n io n m em bers.

B u t, t h e y e a r l y a v e ra g e wiage i n s e a s o n ia l an d

c a s u a l i n d u s t r i e s i s f a r b elo w t h e a v e ra g e e a r n e d d u r ­ in g r e g u l a r p e r i o d s o f w o rk .

Movie e x t r i a s , f o r i n s t a n c e ,

c a n e a r n l a r g e d a i l y s a l a r i e s , b u t t h e i r a v e ra g e y e ia rly incom e i s lo w . M r. B e v e rid g e

c a l l s f o r men w o rk in g f o r g ro u p s o f

e m p lo y e rs who c o o p e r a te i n p r o v id in g em p lo y ees w i t h y e a r r o u n d w o rk .

But> t h e e m p lo y er h a s n e i t h e r t h e tim e n o r

t h e money t o s e a r c h f o r o th e r p l a c e s o f em ploym ent f o r th o s e w o rk e rs who a r e t o b e iia id o f f .

I t w o u ld be b e t t e r

f o r him t o i n v e s t c a p i t a l i n b u i l d i n g h i s b u s i n e s s th a n t o co p e w ith a l a b o r p ro b le m w h ich i s n a t i o n a l , an d n o t in d iv id u a l,in sco p e. Where . a l l v a c a n c ie s;, a r e r e p o r t e d t o t h e p u b l i c em­ p lo y m e n t s e r v i c e , c o m p le m e n ta ry i n d u s t r i e s can h av e em­ p lo y e e s t r a n s f e r r e d w i t h a minimum o f e x p e n s e a n d , above a l l , w i t h a minimum o f l o s t t im e .

I n New Y ork G i t y , th e

d r e s s , womenf s c o a t , an d f u r m a n u f a c tu r in g i n d u s t r i e s a r e c o m p le m e n ta ry ; y e t th e em p lo y ee s h a v e t o hawk t h e i r la b o r

among t h e t h r e e .

I f ia ll re p o rte d * v a c a n c i e s , t h e t r e n d o f

"slo w -d o w n " and " p ic k - u p * w o u ld h e e v i d e n t i n t h e v a c a n c y s t a t i s t i c s o f th e s e r v i c e 1, an d th e tim e l o s t b e tw e e n jo b s w o u ld b e l e s s e n e d .

An u n u s e d p o o l o f l a b o r c o u ld b e d i ­

r e c t e d to w a rd s o th e r p l a c e s o f em p lo y m en t. The o p e r a t i o n o f c o m p le m e n ta ry i n d u s t r i e s i s w e ll e x p l a i n e d i n The L ab o u r G a z e tte ( s e a C h a p te r IV ),.

I n ag ­

r i c u l t u r e , minimum l a b o r n e e d s a r e m et b y t h e r e t u r n o f fa rm h a n d s who h a d a c c e p te d o f f - s e a s o n em ploym ent i n t h e l o g g i n g , m in in g an d f o u n d a r y i n d u s t r i e s . its

sy s te m o f c o m p u lso ry n o t i f i c a t i o n

C an ad a, w i t h

of v a c a n c ie s , h as

b e e n a b le t o p r o v id e p r o p e r d i r e c t i o n f o r t h e s e c a s u a l a g r i c u l t u r a l em p lo y ee s an d t h e r e b y p r o v id e y e a r - r o u n d em­ p lo y m e n t f o r th e m .

T h i s i s a d e f i n i t e bo o n t o t h e f o u r

i n d u s t r i e s m e n tio n e d .’ T hey no lo n g e r m a in ta in enorm ous p o o ls o f l a b o r , y e t m a in ta in a w o rk in g f o r c e w h ic h i s em­ p lo y e d th e y e a r r o u n d . S uch im p ro v em en t can b e d u p l i c a t e d i n t h e U n ite d S t a t e s an d o th e r c o u n t r i e s b y i n s t i t u t i n g a s i m i l a r p r o ­ g ra m . lic

W ith t h e n e c e s s a r y in f o r m a tio n com ing i n , t h e pub­

em ploym ent s e r v i c e , w h e th e r l o c a l , r e g i o n a l or n a t i o n ­

a l can make a v a i l a b l e s t a t i s t i c a l and n a r r a t i v e in f o rm a ­ t i o n t o p r i v a t e e n t e r p r i s e and t h e r e b y a i d i n a l l e v i a t i n g c a s u a l and s e a s o n a l u n d erem p lo y m en t p r o b le m s .

IV •

MINIMIZING OP BUSINESS FAILURES The p r o p o s a l s h o u ld h e c o u p le d w i t h an a d e q u a te

p u b l i c in v e s tm e n t p ro g ra m . v i d e s t a t i s t i c a l d a ta *

O th e r w is e , i t w i l l o n ly p r o ­

W ith a d e q u a te p u b l i c w orks p r o ­

v i d i n g t h e lo w e s t incom e g ro u p w i t h p u r c h a s in g p o w e r, t h e com m unity should! s e e fe w e r b u s i n e s s f a i l u r e s .

M a in te n ­

an c e o f a minimum l e v e l o f p u r c h a s in g pow er i n t h e g ro u p w h ic h s p e n d s t h e g r e a t e s t p e r c e n ta g e o f i t s incom e on s t a p l e c o m m o d ities w i l l e n s u r e a s t e a d y flo w o f g o o d s . W here b u s i n e s s f a i l u r e s o c c u r , t h e y w i l l more l i k e l y r e ­ s u l t fro m r e c o g n i s e d an d a c c e p t a b l e c o m p e titio n r a t h e r th a n fro m econom ic f o r c e s w h ic h g e t o u t o f c o n t r o l an d damage t h e e n t i r e com m unity,

o f c o u r s e , i t m ust b e

p o i n t e d o u t t h a t th e r© a r e o th e r f a c t o r s a f f e c t i n g t h e t r a d e c y c l e , an d t h a t t h e y may f a r o v ersh ad o w iany b e n e ­ f i t s t o b e d e r i v e d fro m t h i s p r o p o s a l* has i t s its

Y e t, t h i s i d e a

m e r i t s an d s h o u ld b e g iv e n t h e o p p o r t u n i t y t o add

s m a ll b i t to w a rd an o v e r - a l l s o l u t i o n o f t h e p ro b le m

o f econom ic c r i s i s * V.

STEMMING THE TIDE OP ANTI-FREE ENTERPRISE PROPAGANDA The p r o p o s a l w o u ld r e s u l t i n t h e stem m in g o f th©

t i d e o f d i s c o n t e n t , an d th e r e s u l t i n g a c c e p ta n c e o f a n t i c a p i t a l i s t , a n t i - f r e e e n t e r p r i s e p ro p a g a n d a *

R a d ic a l e l -

22

e iu e n ts f i n d f e r t i l e g ro u n d f o r b r e e d i n g d i s c o n t e n t w i t h i n t h e r a n k s o f u n em p lo y ed m asses*

As h a s b e e n p o i n t e d o u t

th r o u g h o u t t h i s p a p e r* t h e s e r e s e r v e s o f l a b o r can b e p u t t o p r o d u c tiv e an d g a i n f u l em ploym ent* iand Have you n o t i c e d how l i t t l e lo u d t a l k g o e s on w h ile p e o p le a r e h a r d a t work*-1*6 I t i s n o t im p l ie d t h a t p e o p le w i l l iallow them ­ s e l v e s t o re m a in o p p r e s s e d j u s t so a s t o e n s u r e t h e i r d a i ­ l y b re a d *

T hey w i l l s t r i v e f o r b e t t e r c o n d i t i o n s 1, a b ia sic

r e a s o n f o r t h e e x i s t e n c e o f u n io n s *

B ut* i n a c o m p e ti tiv e

s y s te m t h a t e n s u r e s a minimum s e c u r i t y ^ s u b v e r s i v e e le m e n ts have l i t t l e

chiance t o c o e r c e t h e p o p u la c e i n t o a c c e p tin g

a s t a t e - c o n t r o l l e d and d i r e c t e d econom y w h ic h s t i f l e s i n ­ d iv id u a l e n te rp ris e * V I.

REDUCING THE, NUMBER OP EMPLOYABLES ON THE PUBLIC DOLE The p r o p o s a l w i l l r e s u l t i n t h e slav in g o f many

d o l l a r s t o A m erican t a x p a y e r s , i n b u s in e s s ; and i n d u s t r y , th r o u g h t h e more r a p i d p la c e m e n t o f em p lo y ab le® on t h e p u b l i c d o le * T h is g o i n t i s a d i f f i c u l t one*

S p e c ific a lly * . I t

r e f e r s t o t h e f i n d i n g o f jobs; f o r th o s e u n em p lo y ed p e o p le who h a v e t o t u r n t o p u b l i c c h a r i t y b e c a u s e t h e y a r e o u t o f fu n d s an d h av e no o th e r s o u r c e o f te m p o ra ry a id * 16 M ii h o lla n d , R *, P ay D ay, p . 240*

A

23 r e p r e s e n t a t i v e o f5 t h e p u b l i c em ploym ent s e r v i c e h a s , among; h i s o th e r a s s ig n m e n ts * t h e t a s k o f g e t t i n g jo b s F or r e c i p ­ i e n t s o f p u b lic r e l i e f *

When a r e l i e f a p p l i c a n t i s s e n t

t o t h e p u b l i c em ploym ent s e r v i c e h e i s r e f e r r e d t o a l l jo b o p e n in g s a h e a d o f a n y o t h e r un em p lo y ed a p p l i c a n t s * B ut* t h i s s y s te m i s w o e f u lly in a d e q u a te * t h e s e r e f e r r a l s a r e p la c e d i n jo b s*

Few o f

And many o f t h e s e

e m p lo y a b le s w ork p a r t - t i m e and e v e n f u l l - t i m e w h ile r e ­ c e i v i n g a i d fro m t h e g o v ern m en t*

T h e re i s a d e f i n i t e l e a k ­

a g e o f p u b l i c fu n d s h e r e an d i t s h o u ld b e s to p p e d * S ev ­ e r a l c o u n t r i e s , n o t a b l y B e lg iu m , h av e t h e P u b lic A s s i s ­ t a n c e o f f i c e a t t a c h e d t o t h e Employm ent D e p a rtm e n t an d a l l a p p lic a n ts fo r p u b lic a id a re a u to m a tic a lly r e g i s ­ t e r e d f o r w ork*

B ut i t i s o n ly i n th o s e c o u n t r i e s w here

c o m p u lso ry n o t i f i c a t i o n

o f v a c a n c ie s an d e n g a g em e n ts a r e

p r e s e n t t h a t t h e s e e m p lo y a b le s can b e c h e c k e d an d t h e le a k a g e o f p u b l i c fu n d s sto p p e d * V II.

SUMMARY I t l a p o s s i b l e t h a t t h e v a l i d i t y o f th e f o r e g o ­

i n g a rg u m e n ts can b e d e te r m in e d o n ly th r o u g h t h e p r a c t i ­ c a l a p p lic a tio n of th e p r o p o s a l.

H ow ever, S i r W illia m H*

B e v e rid g e su m m arised th e s c h o la r s * p o i n t o f v ie w : S in c e a l l w o rk p e o p le a r e i n p r a c t i c e r e q u i r e d t o b e r e g i s t e r e d a t an ex c h an g e when u n em p lo y ed a® a c o n d i t i o n o f o b t a i n i n g b e n e f i t , t h e r e can b e n o o b -

j e c t i o n o f p r i n c i p l e t o r e q u i r i n g c o r r e s p o n d in g n o ­ t i f i c a t i o n b y e m p lo y e rs o f e v e r y v a c a n c y t o an em­ p lo y m e n t e x c h a n g e .1 ' A ls o , t h e T a b le s tiaken fro m t h e L ab o u r g a z e t t e an d i n c l u d e d i n C h a p te r IV , show t h a t th e p r a c t i e i a l v a l ­ ue of t h e p ro p o s a l l i e s in i t s p ro v id in g th e s t a t i s t i c i a l " q u ia s i- a u to m a tic ” g u i d e .

17 B e v e r id g e , W .H ., o p . c i t . , p . 1 7 2 .

CHAPTER

III

OBJECTIONS: TO THE PROPOSAL From t h e e m p lo y e r 1^ p o i n t off v ie w , t h e r e a r e s e v ­ e r a l s e r i o u s o b j e c t i o n s t o t h i s p r o p o s a l*

C o n s id e r a ti o n

i s g i v e n , i n t h i s c h a p t e r , t o f i v e m a jo r a rg u m e n ts a g a i n s t t h e a d o p tio n o f s u c h a p la n * 1.

T hey a r e t h a t :

The d o o r i s o p e n e d t o f u r t h e r g o v e rn m e n ta l e n ­ cro a c h m e n t upon p r i v a t e e n t e r p r i s e *

2*

The c o o p e r a tio n off a l l e m p lo y e rs w o u ld b e r e q u i r e d t o make t h i s p la n e f f e c t i v e .

L a c k in g t h i s , em -

• p io y e r s who c o o p e r a te w o u ld s u f f e r a s a g a i n s t th o s e who do n o t c o o p e ra te * 3*

The ta x : b u rd em i s h e a v y en o u g h r i g h t now w ith o u t in c re a s in g i t any fu rth e r*

4*

The p o l i t i c i a n s and t h e r a c k e t e e r s would! b e g iv e n a d d i t i o n a l p o w e r.

5.

T he p la n w o u ld i n c r e a s e o f f i c e e x p e n s e , a n d c a u s e d e la y in th e h ir in g p ro cess* T h e se o b j e c t i o n s w ere v o ic e d b y e m p lo y e rs i n l e t ­

t e r s an d i n in te r v i e w s *

Though t h e s e o b j e c t i o n s may or

may n o t b e v a l i d t h e y r e p r e s e n t th e p o i n t off v ie w off many e m p lo y e r s .

T h e ir p o i n t s o f v iew m ust b e r e s p e c t e d .

De­

m o cracy dem ands t h a t p e o p le b e g u id e d , e d u c a te d land show n;

n o t f o r c e d , c o e r c e d o r c o m p e lle d .

If* t h i s b@ s o , t h e n

c o m p e llin g e m p lo y e rs t o c o o p e r a te w i t h t h e p u b l i c em ploy­ m ent s e r v i c e i s u n d e s i r a b l e * I.

TEE EOGRl IS OPENED: TO FURTHER GOVERNMENTAL EN­ CROACHMENT UPON PRIVATE. ENTERPRISE G e n e r a lly , t h e e m p lo y e rs f e e l t h a t t h e g o v e rn ­

m ent h a s h e lp e d th em i n many w a y s.

H ow ever, t h e y c la im

t h a t i t i s n e c e s s a ry fo r th e p re s e rv a tio n of p r iv a te en ­ t e r p r i s e t o r e s i s t f i r m l y g o v ern m en t e f f o r t s t o i n f r i n g e upon t h e r i g h t s o f t h e p r i v a t e e n t r e p r e n e u r * I n f o r e i g n c o u n t r i e s ', t h e e m p lo y e rs h av e n o t b e e n w a t c h f u l ; now , t h e y a r e t o l d how much p r o f i t t h e y may make*

T h is i s t h e c a s e i n G re a t B r i t a i n an d A u s t r a l i a .

I n t h e f i e l d o f e m p lo y e r-e m p lo y e e r e l a t i o n s , t h e r e a r e many c o u n t r i e s , s u c h a s F ra n c e a n d I t a l y , w h ere em ploy­ e r s h av e l o s t t h e i r b a s i c p r e r o g a t i v e s o f h i r i n g an d firin g .

E m p lo y e rs s a y t h a t t h i s can and w i l l h ap p e n

h e r e u n l e s s we r e s i s t a n d p r e v e n t t h e g o v ern m en t fro m g e ttin g a fo o th o ld in t h e f i e l d o f h i r i n g .

T hey s a y i t

i s a l l r i g h t i f e m p lo y e rs w an t t o do i t v o l u n t a r i l y , f o r t h a t i s t h e way t h e p u b l i c em ploym ent s e r v i c e i s o p e r a t e d to d a y .

H ow ever, once t h e g o v ern m en t b ecom es I n v o lv e d , I t

c o u ld e a s i l y g o t o o f a r .

A f t e r t h e f i r s t c o m p u lso ry f e a ­

t u r e i s p a s s e d , a d d itio n a l l e g i s l a t i o n , ta k in g over th e

e n t i r e h i r i n g p r o c e s s ;, w o u ld h e a s im p le m a tte r * The s e n t i m e n t s o f th e e m p lo y e rs h a v e b e e n e x p r e s s e d a s c l o s e l y a s p o s s i b l e , i n t h e la n g u a g e u s e d b y t h o s e i n ­ te rv ie w e d *

The a u th o r a g r e e s t h a t t h e f i r s t s t e p i s o f t e n

t h e m ost im p o r ta n t fro m t h e s t a n d p o i n t o f p r e c e d e n t*

In

t h i s c c a s e r, a llo w in g t h a t t h i s c o m p u lso ry f e a t u r e ; i s d e ­ sig n ed ! m e r e ly t o g e t in f o r m a tio n * " t h e i c e w i l l h a v e b e e n b ro k e n ? m aking i t e a s i e r t o add o th e r p r o g r e s s i v e l y com­ p u ls o ry fe a tu re s * The w e l f a r e iand p r o g r e s s o f a n y n a t i o n d e p e n d s 4, i n t h e f i r s t a n a l y s i s , upon t h e c u m u la tiv e e f f o r t o f e a c h in d iv id u ia l*

TThe p r e s e r v a t i o n a t i n d i v i d u a l i n i t i a t i v e

r e q u i r e s t h e g u a r a n te e o f i n d i v i d u a l l i b e r t y *

We m ust b e

c a r e f u l ^ when a d o p tin g a c o m p u lso ry f e a t u r e , t h a t we a r e n o t s t i f l i n g t h e l i b e r t y an d i n i t i a t i v e o f t h e in d e p e n ­ d e n t b u s i n e s s man*

T h e re a r e few e x a m p le s o f a g o v e rn ­

m ent r e t r a c i n g i t s

s t e p s 4, o f g iv in g u p n e w -fo u n d pow er*

II.

THE; COOPERATION OF ALL EMPLOYERS WOULD BE RE­ QUIRED TO MAKE THIS PLAN EFFECTIVE.

LACKING

THIS? EMPLOYERS WHO COOPERATE WOULD SUFFER AS AGAINST THOSE WHO DO NOT COOPERATE. T he aim o f t h i s p r o p o s a l i s t h e g a th e r in g ; o f d a t a p e r t i n e n t t o th e em ploym ent m a r k e t, t o b e u s e d a s an i n ­ d i c a t o r o f b u s in e s s ; c o n d i tio n s *

I t w i l l b e im p o r ta n t

t h a t a l l t h e e m p lo y e rs s u p p ly t h e n e c e s s a r y in f o r m a ti o n c o r r e c t l y an d s p e e d i l y .

B u t t h e r e w i l l u n d o u b te d ly b e

e m p lo y e rs who w i l l n o t s u p p ly a n y i n f o r m a t i o n , who w i l l r e s i s t t h e p ro g ra m .

T h e ir a c tio n ® w i l l im pose ia h a r d ­

s h i p u p o n t h o s e who c o o p e r a t e : a g a i n s t th o s e who s p e n d t i m e , e f f o r t , a n d e x p e n s e i n c o m p ly in g w i t h t h e s p i r i t o f t h e la w . V a lu e i n o u r econom y f© Ju d g e d l a r g e l y i n te r m s o f m oney.

T h e re fo re , th e re i s a la rg e p o lic e fo rc e check­

i n g on c o m p lia n c e w i t h c o m p u ls o ry la w s g o v e r n in g s u c h t h i n g s a s incom e t a x , w e ig h t s an d m e a s u r e s , t h e f t , co u n ­ t e r f e i t i n g , iand unem ploym ent i n s u r a n c e .

A re we w i l l i n g i

t o s u p p o r t a p o l i c i n g a g e n c y w hose Job i t w i l l b e t o e n ­ f o r c e t h i s p r o p o s a l?

Can we c h e c k on a l l t h e e m p lo y e rs

o r i s t h e f i e l d to o l a r g e ?

U n le s s a m a j o r i t y o f t h e

s m a ll e m p lo y e r s , an d a l l th e l a r g e e m p lo y e r s , v o l u n t a r i l y c o o p e r a t e , i t w ould b e e x tr e m e ly d i f f i c u l t t o e n f o r c e c o m p u lso ry l e g i s l a t i o n , th e r e t u r n fro m w h ic h w o u ld b e moment a r i l y n i n t a n g ib le * 1. I t w o u ld t h e r e f o r e b e u n f a i r t o im pose t h i s b u rd e n u p o n t h e c o o p e r a t i n g e m p lo y e rs u n l e s s an e c o n o m ic a l m ethod o f e n f o r c i n g i t up o n a l l e m p lo y e rs can b e f o u n d .

I n Can­

a d a , e x p e r ie n c e ha® show n t h a t e m p lo y e rs ', r e l u c t a n t t o r e p o r t v a c a n c i e s 1, ca n s u c c e s s f u l l y a v o id t h e r e p o r t i n g o f t h e Job o p e n in g s '.

III.

THE, TAX BURDEN IS' HEAVY ENOUGH RIGHT NOW WITHOUT INCREASING IT ANY FURTHER . T he p r o p o s a l w o u ld n e c e s s i t a t e t h e s p e n d in g off

l a r g e sum s off money t o i n i t i a t e lic

to it^

a c c u m u la te t h e in f o r m a t i o n iand i n t e r p r e t t h e

d a ta g a th e re d . put

th e p l a n , o r i e n t t h e pub­

U n le s s t h e in f o r m a ti o n s o g a t h e r e d w ere

t o go o d u s e 1, t h e r e w ould b e l i t t l e

reiaso n fo r; t h e

c o m p ila tio n off so many s t a t i s t i c s . The o b v io u s e fffe o t. o f s u c h ia p r o p o s a l w o u ld b e an in c re ia s e i n t h e t a x b u r d e n .

One h a s b u t t o s c a n t h e d a i ­

l y n e w sp a p e r t o s e e t h a t e m p lo y e rs a r e g ro w in g more i n ­ s i s t e n t u p o n econom y i n g o v ern m en t iand a r e d u c t i o n i n t h e iamount o f ta x e s: t h e y hiave t o pay* The t a x b u rd e n I s h e a v y en o u g h r i g h t now w ith o u t i n c r e a s i n g i t iany f u r t h e r . fe e l*

T h a t i s how t h e e m p lo y e rs

I n t h e o p in io n o f t h e w r i t e r , th e o v e r - a l l e f f e c t

o f i n c o r p o r a t i n g t h i s p la n w i t h i n our econom y w o u ld b e ia h e a v y i n c r e a s e i n t h e t a x l o a d im p o se d on t h e b u s i n e s s m an.

The g ia th e r in g off th e d a t a w o u ld l e a d t o t h s in a u g -

u r ia tio n off ia p u b l i c in v e s tm e n t p ro g ra m . mands t h e l a t t e r ,

The fo rm e r d e ­

t o g e t h e r t h e y w o u ld s p e l l i n c r e a s e d

g o v ern m e n t s p e n d in g , f o r c i n g i n c r e a s e d t a x e s t o c o v e r t h e s p e n d in g .

m IV .

THE POLITICIANS AND THE RACKETEERS WOULD BE GIVEN ADDITIONAL POWER The e m p lo y e rs w e re i n A lm ost u n an im o u s a g re e m e n t

on t h i s p o i n t ; t h e y i n s i s t t h a t t h e r e a r e t o o many r a c k ­ e t e e r s iand c ro o k e d p o l i t i c i a n s i n g o v ern m en t*

Andy th e y

s a y , t h e p r o p o s a l w o u ld add t o t h e p r e s t i g e a n d pow er o f t h e s e g o v ern m en t ^ l e e c h e s " . The w r i t e r d o e s n o t f u l l y a g r e e w i t h t h e em ploy­ e r s on t h i s p o i n t .

T h e re a r e many c a r e e r men i n g o v e rn ­

m ent who a r e d o in g a f i n e jo b *

On t h e o t h e r h a n d , t h e r e

a r e a d m i t t e d l y p o l i t i c i a n s an d r a c k e t e e r s who make t h e e n t i r e s e t - u p s m e ll*

The r e c e n t Los A n g e le s p o l i c e s c a n ­

d a l h a s l e f t miany p e o p le w i t h t h e f e e l i n g t h a t an y gov­ e r n m e n ta l a g e n c y s h o u ld b e lo o k e d upon w i t h s u s p i c io n * The s t a t i s t i c s g a t h e r e d and t h e p u b l i c in v e s tm e n t p ro g ra m s i n i t i a t e d c o u ld e a s i l y become p o l i t i c a l f o o t ­ b a l l s an d s o u r c e s o f1 p r i v a t e g a i n f o r g r a f t e r s .

Employ­

e r s f e e l t h a t i t i s im p o r ta n t t o m in im iz e g o v ern m e n t a c ­ t i v i t y l e s t t h e s t a t e become a c o m p e tito r o f th e p r i v a t e c itiz e n . V.

THE PLAN WOULD; INCREASE OFFICE EXPENSE, AND CAUSE DELAY IN THE HIRING PROCESS E m p lo y e rs , p a r t i c u l a r l y th o s e a f f e c t e d b y f r e q u e n t

31 em p lo y ee tu r n o v e r s u c h a© i s e x p e r ie n c e d b y t h e s e a s o n a l i n d u s t r i e s ^ f e e l t h a t t h i s p r o p o s a l w i l l im pose ia h a r d ­ s h i p , th r o u g h a l a r g e i n c r e a s e i n o f f i c e e x p e n se and* u n ­ n e c e s s a r y d e l a y i n t h e h i r i n g p r o c e s s ;. T h ere is: n o d e n y in g t h a t r o u t i n e c h e c k in g w i t h th e p u b l i c em ploym ent s e r v i c e , t h e c o m p le tio n o f d e t a i l e d Job d e s c r i p t i o n f o r m s , e t c . , w i l l r e q u i r e a d d i t i o n a l m an -h o u rs of la b o r.

I n s e a s o n a l i n d u s t r i e s t h i s c o u ld becom e a ma­

j o r c l e r i c a l o p e r a t i o n f o r th e o f f i c e s t a f f .

The n e t r e ­

s u l t w ould b e an i n c r e a s e i n o f f i c e o v e r h e a d ; a n d , em ploy­ e r s w i l l r e s i s t th e p r o p o s a l i f t h e y f e e l t h a t i t w i l l c o s t th em m oney. I n a d d i t i o n t o t h e f i v e a f o r e m e n tio n e d o b j e c t i o n s t o t h i s p r o p o s a l , two o t h e r s d e s e r v e a t t e n t i o n a t t h i s tim e .

The f i r s t o f t h e s e i s :

A.

RELUCTANCE OP EMPLOYERS TO DEAL WITH THE PUBLIC EMPLOYMENT SERVICE I n th e o p in io n o f t h e w r i t e r , e m p lo y e r s , a s a

g r o u p , do n o t w an t t o d e a l w i t h t h e p u b l i c em ploym ent o ffic e .

As p r o o f , I q u o te fro m l e t t e r s r e c e i v e d fro m

e m p lo y e rs i n an sw er t o an I n q u i r y : 1 It

{ th e p u b l i c em ploym ent s e r v i c e } i s p o l i t i c a l l y

1 T h ese l e t t e r s a r e c o n t a in e d i n t h e p r i v a t e f i l e s o f th e w r i t e r .

i m p r a c t i c a l t o b e e f f i c i e n t l y o p e r a te d * P u b lic em ploym ent s e r v i c e c a n n o t b e e f f i c i e n t as lo n g ias t h e y a r e u n d e r g o v ern m en t o r S t a t e c o n t r o l * P u b l i c em ploym ent ( s e r v i c e ) i s wrong; i n p r i n c i ­ p le * I t c a n n o t e v e r b e e f f i c i e n t no m iatter whiat r e ­ com m en d atio n s a r e made* T h ere w ere s e v e r ia l e m p lo y e rs who recom m ended t h e a b o lis h m e n t o f t h e s e r v i c e *

On t h e b ia s is o f many p e r ­

s o n a l i n t e r v i e w s w i t h th e m , i t seem s t o t h e w r i t e r t h a t e m p lo y e r s , on t h e m ost p a r t , a r e r e l u c t a n t t o d e a l w ith t h e p u b l i c em ploym ent s e r v i c e .

The s e c o n d o b j e c t i o n i s

th ia t: B.

TEE STATISTICS WILL BRING TO LIGHT TEE POOLS OP LABOR E c o n o m ists a r e i n a g re e m e n t t h a t e m p lo y e rs a r e d e ­

s i r o u s o f m a in ta in in g p o o ls o f liab o r fro m w h ic h t h e y m ig h t draw n e e d e d h e l p .

I n a d d i t i o n , th e e m p lo y e rs u s e t h e s e

p o o ls o f u n u s e d mianpower (u n em p lo y ed ) as t h r e a t s a g a i n s t t h e em p lo y e d . W orkers on t h e jo b know t h a t t h e s e u n em p lo y ed c o u ld r e p l a c e them *

T h is s i t u i a t i o n i s a d e c id e d ad v an ­

ta g e t o t h e e m p lo y er a s ia b a r g a i n i n g a g e n t .

I t i s th is

s i t u a t i o n w h ic h h a s c o n t r i b u t e d m ost t o t h e d em an d s, b y o r g a n iz e d l a b o r s f o r t h e c l o s e d sh o p and t h e u n io n h i r ­ in g h a l l s .

33 © i ® s t a t i s t i c s g a th e r e d ! w i l l show , foi* a n y g iv e n ti m e , how many more a p p l i c a n t s f o r jo b s t h e r e a r e th a n a v a ilia b l® Job o p e n in g s*

The d i f f e r e n c e c o n s t i t u t e s t h e

p o o ls o f l a b o r s and5 couldi c a u s e much e m b a rra s sm e n t and dem ands upon e m p lo y e rs iand t h e g o v ern m e n t f o r c o r r e c t i o n of th e s i t u a t i o n . SUMMARY T h is c h a p te r h a s p r e s e n t e d s e v e r a l o b j e c t i o n s , fro m t h e p o i n t o f v iew o f t h e e m p lo y e r, t o t h e com pul­ s o r y n o t i f i c i a t i o n o f v a c a n c ie s b y t h e em p lo y er t o th e p u b l i c em ploym ent s e r v i c e .

The a rg u m e n ts c e n t e r e d a -

r o u n d i n c r e a s i n g g o v ern m en t i n t e r f e r e n c e i n p r i v a t e i n ­ d u s t r y and t h e p r o b a b le c o s t s o f t h e n o t i f i c i a t i o n p r o ­ c e d u re . As was s t a t e d iat th e b e g in n in g o f t h e c h a p t e r , t h e s e c la im s a r e p r e s e n t e d a s r e p r e s e n t a t i v e o f t h e em­ p lo y e r s * p o i n t o f v ie w , one w h ic h m ust b e r e s p e c t e d .

CHAPTER

IV

COMPULSORY NOTIFICATION OF VACANCIES IN CANADA To t h e w r i t e r ’s k n o w le d g e , C anada i s t h e o n ly co u n ­ t r y w h ere t h e c o m p u lso ry n o t i f i c a t i o n o f v a c a n c i e s h a s b e e n p u t i n t o e f f e c t , a n d t h i s h a s n o t b e e n iaccom panied b y o t h e r c o m p u lso ry l e g i s l a t i o n *

On t h e o th e r h a n d i i n

s u c h c o u n t r i e s a s F i n l a n d , G re e c e , H u n g a ry , I t a l y , F r a n c e , N orw ay and P o la n d , e m p lo y e rs a r e c o m p e lle d t h h i r e th r o u g h t h e p u b l i c em ploym ent ex ch an g e* We a r e p r i m a r i l y c o n c e rn e d h e r e w i t h o n ly one d e ­ mand p l a c e d upon th e .e m p lo y e r g ro u p : th e c o m p u lso ry n o ­ t i f i c a t i o n o f v a c a n c i e s t o t h e p u b l i c em ploym ent s e r v ic e * T h e r e f o r e , i t was deem ed a d v i s a b l e t o r e v ie w o n ly th e C a n a d ia n p la n *

A n o th e r re ia so n f c r c h o o s in g Canadia a s an

e x a m p le , i s i t s g e o g r a p h ic and i n d u s t r i a l p r o x im it y t o t h e U n ite d S t a t e s *

L e s s o n s l e a r n e d i n t h a t c o u n t r y ca n

b e ia p p lie d m ost e a s i l y t o t h e U n ite d S t a t e s . I*

CANADIAN LEGISLATION As o f M arch 5 1 , 1 9 4 7 , C a n ad ia n em ploym ent h a s b e e n

g o v e r n e d by t h e N a ti o n a l Employm ent S e r v ic e R e g u l a t i o n s , 1947*•*•

T h is a c t p r o v id e s tw o s p e c i f i c t h i n g s :

1 ^ N a tio n a l Em ploym ent S e r v i c e R e g u l a t i o n s " , The L ab o u r G a z e t t e , A p r i l , 1 9 4 7 , p p . 569-570*

35 A.

N o t i f i c a t i o n o f E m p lo y e r's R e q u ire m e n ts I t i s r e q u i r e d t h a t an e m p lo y er n o t i f y t h e N ia tio n -

a l Em ploym ent S e r v ic e

( l o c a l o f f i c e ) c o n c e r n in g jo b v a ­

c a n c i e s w h ic h a r e u n f i l l e d t w e n t y - f o u r h o u r s a f t e r t h e i r o c c u rre n c e •

The R e g u la t io n s a p p ly o n ly t o i n s u r a b l e em­

p lo y m e n t; an d t h e y p r o v id e t h a t i f t h e em p lo y e r *s* o f f i e e w h ic h d i r e c t l y c o n t r o l s h i r i n g i s more th a n tw e lv e m ile s d i s t a n t fro m t h e n e a r e s t l o c a l em ploym ent o f f i c e , an d i s s e e k in g l o c a l l a b o r o n l y , t h e v a c a n c ie s ; n e e d n o t b e r e ­ p o rte d . B.

N o t i f i c a t i o n o f H i r i n g s and S e p a r a t i o n s I t i s r e q u i r e d t h a t e m p lo y e rs f u r n i s h a s e m i- a n ­

n u a l r e p o r t sh o w in g , f o r e a c h m onth i n t h e s ix - m o n th p e r ­ i o d c o v e r e d , t h e num ber o f p e r s o n s i n t h e i r em p lo y ( b o th i n s u r e d iand! u n in s u re d )) a t t h e b e g in n in g o f t h e m o n th , t h e num ber h i r e d d u r in g t h e m o n th , t h e number s e p a r a t e d d u r ­ i n g t h e month> andi th e num ber i n t h e i r em p lo y a t t h e en d o f t h e m o n th . The 1947 R e g u la tio n s : a b r o g a t e d s e v e r a l p r o v i s i o n s o f t h e N a ti o n a l S e l e c t i v e S e r v ic e C i v i l i a n R e g u la t io n s p re v io u s ly in e f f e c t .

Of th e c h a n g e s i n t r o d u c e d b y t h e

new la w , t h e f o llo w in g a r e p e r t i n e n t t o t h i s s tu d y : a.

E m p lo y ers a r e n o lo n g e r r e q u i r e d t o r e p o r t t h e i n -

36 d iv id u ia l en g a g e m ent o r new em p lo y ees* b*

T hey no lo n g e r n e e d t o r e p o r t u n f i l l e d v a c a n c ie s *

( T h is assu m es o r i g i n a l r e p o r t i n g o f t h e v a c a n c y when i t o c c u rre d ) • c*

E m p lo y e rs an d em p lo y ees a r e n o l o n g e r r e q u i r e d t o

g iv e s e v e n d a y s 1 n o t i c e o f t e r m i n a t i o n o f em ploym ent b e ­ f o r e a c t u a l s e p a r a t i o n fro m a jo b o c c u rs * The new R e g u la t io n s demianded o n ly t h a t v a c a n c i e s be re p o rte d *

T h is w as c o n s id e r e d n e c e s s a r y f o r p e a c e ­

t i m e , i n d u s t r i a l ( c a p i t a l i s t ) econom y.

The o th e r r e g u ­

l a t i o n , t h a t o f t h e s e m i- a n n u a l r e p o r t , g o e s h a n d i n hiand w i t h t h e c o m p u lso ry n o t i f i c a t i o n of v a c a n c ie s i n p r o v i d ­ i n g th e n e c e s s a r y s t a t i s t i c s w h ereb y t h e n a t i o n m ig h t w ork to w a rd s s t a b l e econom ic c o n d i tio n s *

T h is l a t t e r

r e g u l a t i o n was d e fe n d e d b y M r, L e a , C o o r d in a to r o f P ub­ l i c P r o j e c t s , i n an a d d r e s s b e f o r e o t h e P e te r b o r o B ra n c h o f t h e E n g in e e r in g I n s t i t u t e o f C a n ad a, on J a n u a r y 2 3 , 1947*^

He p o i n t e d o u t t h a t t h e

peiaka iand d e p r e s s i o n s

i n n ia tio n a l p r o d u c t i o n , w h ic h h a v e h i t h e r t o b e e n c o n s id * e r e d e x tr e m e ly d i f f i c u l t t o c o n t r o l , iare c o n s id e r e d t o ­ day to be s u s c e p tib le to c o n tro l in d e g re e of v a r ia tio n s t h a t a c t i o n c a n b e tiaken t o sm o o th t h e s e e x tre m e s*

The

& ‘’T im ing o f P u b lic I n v e s tm e n t i n C o n s tr u c t i o n ” , The L ab o u r G a z e t t e , F e b r u a r y , 1 9 4 7 , p p . 1 2 8 -1 3 1 .

37 tim in g o f p u b l i c in v e s tm e n t i s one o f t b e im p o r ta n t r e ­ m e d ia l a c t i o n s a v a i l a b l e f o r u s e . I n t b e same m ag azin e w h ich h i s a r t i c l e w as p r i n t e d i n , t h e s t a t i s t i c a l vialu e o f t h e c o m p u ls o ry n o t i f i c a t i o n o f v a c a n c ie s i s f u l l y d e m o n s tr a te d . II.

COMPILATION AND: PRESENTATION OP STATISTICS The L ab o u r G a z e tte i s a g o v ern m en t p e r i o d i c a l ,

p u b l i s h e d m o n th ly .

I t p r o v i d e s a re v ie w o f t h e l a b o r -

i n d u s t r i a l s i t u a t i o n th r o u g h o u t C a n a d a .

A s p e c ia l fe a ­

t u r e i s th e s e c t i o n e n t i t l e d , ^ O p e r a tio n s o f t h e N a tio n ­ a l Em ploym ent S e r v i c e ” .

I t r e v ie w s t h e em ploym ent o u t­

lo o k t a k i n g th e p a s t , p r e s e n t an d f u t u r e i n t o c o n s i d e r ­ a tio n . The v a l u e o f t h e f e a t u r e l i e s i n i t s mode o f p r e s ­ e n ta tio n .

I t d e s c r i b e s , I n n o n - t e c h n i c a l la n g u a g e an d

n o n - t e c h n i c a l c o n c e p t s , how t h e s e s t a t i s t i c s a r e com­ p i l e d , t h e i r l i m i t a t i o n s and t h e i r u s e f u l n e s s .

I t g iv e s

t h e la y m a n , m onth by m o n th , a good d e s c r i p t i o n o f t h e s t a t i s t i c s c o n t a in e d i n t h e re v ie w s o t h a t he may know how b e s t t o u s e a n d a p p ly th e m .

For th e b e n e f i t o f th e

r e a d e r , th e s e c t i o n I n t h e A p r i l , 1 9 4 7 , i s s u e was p h o ­ t o s t a t e d a n d in c lu d e d i n t h i s t h e s i s .

R e fe re n c e to t h i s

r e p r i n t (fo u n d a t t h e e n d o f t h i s c h a p t e r ) w i l l c l e a r l y i n d i c a t e t h e v a lu e o f t h e c o m p u lso ry n o t i f i c a t i o n

of v a-

38 o a n c le s . T he in f o r m a ti o n p r e s e n t e d i n t h e s e c t i o n i s g ro u p e d (a ) b y ty p e o f i n d u s t r y — s e e T a b le I I ;

(b ) b y ty p e o f

w o rk e r — s e e Tiable I ; an d ( c ) b y a r e a .

The d e s c r i p t i v e

a n a l y s i s i s c l e a r and c o n c i s e , sh o w in g e x a c t l y w h at h a s b e e n happening* i n t h e v a r i o u s em ploym ent f i e l d s an d t h e p r o b a b le c a u s e s .

I n a d d i t i o n , t h e f o r e c a s t o f em ploy­

m ent c o n d i t i o n s , s u c h a s t h a t g iv e n i n t h e a g r i c u l t u r i a l s e c t io n , i s v a lu a b le • Minimum l a b o r n e e d s f o r s p r i n g a c t i v i t y w ere ex^p e c t e d t o b e m et b y t h e r e t u r n o f fa rm h a n d s who h a d ia c c e p te d o f f - s e a s o n em ploym ent i n th e l o g g i n g , m in­ in g and f o u n d r y i n d u s t r i e s . S u ch p r e d i c t i o n g o e s f a r i n a i d i n g t h e em p lo y er to p la n fo r th e f u t u r e . III.

ANALYSIS OP THE. STATISTICAL TABLES The T a b le s ( I , I I , I I I , V , iand V I) d e a l i n g w ith u n ­

f i l l e d v a c a n c ie s an d u n p la c e d a p p l i c a n t s a r e v a l u a b l e m e a su re s o f eco n o m ic a c t i v i t y .

C o n s id e r a ti o n o f t h e i r

s i g n i f i c a n c e i n p o i n t i n g o u t t r e n d s w i l l show th e v a lu e o f t h e c o m p u lso ry n o t i f i c a t i o n o f v a c a n c i e s . I t i s im p o r ta n t t o e s t a b l i s h a wmean p o i n t w a b o u t w h ic h m o n th ly a c t i v i t i e s can f l u c t u a t e .

W henever e c o ­

nom ic a c t i v i t y m oves t o o f a r fro m th e m ean, r e m e d ia l 3 See p . 48;, i n t h i s t h e s i s .

39 meas-ures can b e u n d e r ta k e n * T a b le

I i n d i c i a t e s em ploym ent a c t i v i t y b y o c c u p a ­

t i o n a l gro u p *

T b is T a b le i a v a l u a b l e i n t h a t i t i n d i ­

c a t e s w h ic h f i e l d ® a r e o v e rc ro w d e d a n d to w a r d w h ic h s k i l l s a w o rk e r s h o u l d b e e n c o u r a g e d t o d i r e c t h is; t r a i n ­ in g a c t i v i t i e s *

F o r e x a m p le , t h e **other u n s k i l l e d w or­

k e r s ” m ig h t b e d i r e c t e d to w a r d t r a i n i n g i n t e x t i l e s , c l o t h ­ i n g , lu m b e r and wood i n d u s t r i e s w h ere u n f i l l e d v a c a n c i e s f a r exceed u n p la c e d a p p lic a n ts *

T a b le IX i s an a d d i t i o n ­

a l a i d i n t h e f o r m u l a t i o n o f re c o m m e n d a tio n s t o t h e u n ­ em ployed*

E m p lo y e rs i n n e e d o f h e l p a r e b e n e f i t e d by

t h e d i r e c t i o n o f u n em p lo yed p e r s o n s i n t o t h e i r i n d u s t r i e s * T a b le s I I I , V, an d VI a r e t h e i m p o r t a n t c o n t r i b ­ u tio n s*

They i n d i c i a t e t h e o v e r - a l l eco no m ic t r e n d s i n

em ploym ent*

T a b le V sh o w s, i n g r a p h i c f o r m , t h e s t a t i s ­

t i c a l datia p r e s e n t e d i n T a b le I I I *

T re n d s r e g a r d i n g t h e

liabor s u p p l y a r e i n d i c a t e d b y t h e l i n e d an d b l a c k e d - i n p o r t i o n s o f t h e g rap h *

The im p o r ta n c e o f t h e s e t r e n d s

is: t h e i r d e v i a t i o n fro m a mean*

F o r e x a m p le , i f t h e r e

a r e 5 ,0 0 0 ,0 0 0 ) u n em p lo y ed o u t o f a l a b o r f o r c e o f 25,00%* 0 0 0 , t h e s i t u a t i o n w o u ld b e c o n s i d e r e d c r i t i c a l o n ly i f t h e a v a i l i a b l e v a c a n c i e s w ere f a r b elo w 5 , 0 0 0 , 0 0 0 .

O th e r­

w i s e , t h e p r o b le m c o u l d w e l l l i e w i t h i n t h e o r g a n i z a t i o n o f t h e l a b o r m a rk e t* The f o l l o w i n g s t a t i s t i c s w ere g a t h e r e d d u r i n g ia

T h i r t e e n - m o n t h p e r i o d , fro m N ovem ber, 1947 t o N ovem ber, 1948. Y ear andl Month 1947 1948

November December January F ebruary •March A p ril May Ju n e Ju ly A ugust S ep te m b er O c to b e r November

U n p la c e d A p p lic a n ts

U n fille d V a c an cies

9 5 ,8 2 9 1 1 6 ,5 7 4 1 4 2 ,4 1 2 1 8 6 ,7 4 3 2 0 0 ,3 5 4 1 9 3 ,7 9 9 1 6 5 ,2 1 2 1 3 0 ,9 2 5 1 1 8 ,5 7 0 9 6 ,2 7 3 8 8 ,3 4 5 8 7 ,3 3 2 1 0 1 ,8 4 9

9 2 ,9 3 4 5 8 ,2 7 2 4 0 ,6 6 6 3 4 ,1 7 8 3 2 ,2 0 0 3 8 ,2 7 5 4 9 ,9 7 3 6 0 ,3 6 6 5 6 ,4 2 5 5 0 ,2 0 8 6 3 ,6 9 0 6 3 ,9 1 7 5 0 ,4 5 1

D iffe re n c e; 2), 895 5 8 ,3 0 2 1 0 1 ,7 4 6 1 5 2 ,5 5 6 1 6 8 .1 5 4 1 5 5 ,5 2 4 1 1 5 ,2 3 9 7 0 ,5 5 9 6 2 ,1 4 5 4 6 ,0 6 5 2 4 ,6 5 5 2 3 ,4 1 5 5 1 ,3 9 8

T a b le WL i s t h e g r a p h i c p r e s e n t a t i o n o f 5 t h e above s t a t i s t i c s . 1 A c o m p a r is o n cian b e made b e tw e e n T a b l e s V an d V I .

The l a t t e r i s m e r e ly an e x t e n s i o n o f t h e f o r m e r .

H ow ever, t h e p o s t - w a r p e r i o d d i f f e r s g r e a t l y i n t h a t v a ­ c a n c i e s no l o n g e r e x c e e d a p p l i c a n t s .

In f a c t , th e re is

a greiafc d i f f e r e n c e b e tw e e n t h e tw o a t s l a c k p e r i o d s ; n©t i a b l y , d u r i n g F e b r u a r y a n d M arch, 1 9 4 8 . I n M arch, 1 9 4 8 , t h e r e w e re s i x t i m e s a s many u n ­ p l a c e d a p p l i c a n t s a s t h e r e w ere u n f i l l e d v a c a n c i e s .

The

t a s k now i s t o e s t a b l i s h a ^mean*1 ( p e r h a p s t h e r e i s one i n u se } upon w h ic h t o b a s e c o n c l u s i o n s .

The g r e e n l i n e ,

i n T a b le V I , p l o t s t h e d i f f e r e n c e b e tw e e n t h e u n f i l l e d v a c a n c i e s an d t h e u n p l a c e d a p p l i c a n t s . an i n d i c a t o r

of eco no m ic c o n d i t i o n s .

I t may s e r v e as; I n d u s t r i a l con-

4a d i t i o n a a r e good when t h e g r e e n l i n e i s b e lo w t h e u n f i l l e d v a c a n c i e s l i n e a n d , c o n v e r s e l y , i s b a d when above t h a t lin e *

T h i s s e t s t h e “ mean11 p o i n t a t t w i c e t h e number o f

u n f i l l e d v a c a n c ie s*

U s in g t h a t p o i n t a s a g u i d e , t h e

c h a r t s u g g e s ts t h a t re m e d ia l m easures be in a u g u ra te d in J a n u a r y , 1 9 4 8 ; s t e a d i l y i n c r e a s e d u n t i l A p r i l ; and c o n ­ t i n u o u s l y d e c r e a s e d t h r o u g h A u g u s t. The c h a r t a l s o seems t o i n d i c a t e t h a t b a s i c pub­ l i c in v e stm e n ts — c o n s tr u c tio n of sch o o l b u i l d i n g s , r o a d s , d am s, e t c . , — b e r e d u c e d d u r i n g S e p te m b e r an d O c to b e r, 1948.

This; w o u ld c o u n t e r t h e i n f l a t i o n a r y t e n ­

d e n c i e s o f t h e economy*

42 680

T H E LABOUR GAZETTE

[A PR IL

Operations of the National Employment Service \

SHORT summary of the current statistics followed by a detailed description of placement activities of the National Employ­ ment Service during the previous month (February) has been prepared by the Research and Statistics Branch, Department o f Labour. Seasonal inactivity broke by the beginning of March and the number unplaced started to fall at a rate of 2,000 per week. Expansion plans and seasonal influences created vacancies in mining, construction, and service industries. The em ployment outlook for the coming season was very promising, especially in

Ontario and Quebec. T he construction and transportation industries were expected to absorb a Large proportion o f the unplaced in the summer season. By March 20, the number unplaced have fallen from the yearly high of 196,000 to 186,000. A statistical summary of various aspects of the em ployment situation in March, as reported by National Employ­ ment Service, may be found in Table I, Table II, and Table III. A review of February placement activities follows.

A g ricu ltu re Year-round agricultural help continued in short supply, especially for dairy farms. Workers would not accept farm labour because of the long hours and low wages. Minimum Labour needs for spring activity, however, were expected to be m et by the return of farm hands who had accepted off-season

em ployment in the logging, mining, and| foundry industries. The reporting of vacancies increased slightly during February but agri­ cultural placements continued to recede. Place­ ments averaged 186 per week to leave 1,486 positions unfilled in the agriculture, fishing, and trapping industries at the end of February,

N o n -A g ricu ltu ral In d u stry The annual low in seasonal activity was reached during February and signs of rapid recovery had begun to appear by the close of the period. During the major part of February, the tapering off in winter seasonal activity was not offset by expansion dn summer-active industries. Logging, mining, and manufacturing labour needs receded sharply while little noticeable increase in demand for construction workers took place until the Last week in February. However, lay-offs dropped substantially, consequently the number unplaced maintained a constant level. Fewer jobs and fewer additional workers reporting, were reflected in a sharp contraction in placement activity. At the same time, the pressure of unemployment forced workers to make vigorous attempts to obtain jobs, with the result that engagements of workers outside of the Em ployment Service moved upwards. Vacancies N o tified

Reporting of vacancies was slack during February. However, it presented a moderate improvement over the 1946 level. A full com­ plement o f labour in the logging camps had been reached at the beginning of the new year, consequently a sharp recession occurred in the demand for bushmen throughout February. Labour needs in manufacturing plants fell off substantially, in part due to

employers hiring help without resort to the employment offices. Signs of recovery in the summer seasonal industries appeared during the latter part of the month. Average weekly vacancies in non-agricultural industries totalled 28276 in February as compared with 29,319 one month previous. During February the number o f vacancies on file fell to the lowest point for the war or post-war period. A t February 20, the alltime low for unfilled vacancies was recorded at 69,748. Logging.—The peak in logging employment appeared to have passed and it was generally felt that the season’s cut would approximately equal the 1946 level. For the first tim e in the past five years sufficient manpower was avail­ able to m eet labour requirements. Stormy weather conditions, however, hindered logging operations during the past two months. By February cutting had ceased in m ost areas and hauling operations were underway. Generally, employment offices were confident that suffi­ cient labour would be available for the spring river drives and summer maintenance work. Replacement needs bolstered labour require­ ments during the winter months but by February vacancies reported had fallen to 3,965 per week. Summer crews were expected to be small during^the coming season thus little additional labour needs should occur until next September.

43 1947]

EM PLOYM ENT, HOURS AND

M ining.—The immediate em ployment out­ look in the hard-rock mining industry improved considerably. The agreement reached in the Noranda gold mine strike was expected to set the pattern for settlement of much of the pending labour disputes within the area. Plans for spring expansion were already under­ way; exploration work had begun in some regions and deferred orders for help were being placed with em ployment offices. In the coal mining industry, however, the picture was less promising. The strike in the Maritime coal mines had entered its second month and little prospects of early settlem ent were in sight. In the Prairie region production was held up by heavy snowfalls and lack of freight cars. In British Columbia the coal mines were seriously undermanned. Resort to clearance brought little success. Em ployment offices received an average of 625 vacancies per week in the mining industry during February. Vacancies were well below the level reported in the previous year. This was attributed to the effect of the prolonged coal strike in N ova Scotia.

581

E A R N IN G S

M anufacturing.—Shortage of basic steel continued to force many jnanufacturing firms to operate at below capacity production. As breaches in the supply line were overcome, however, em ployment in manufacturing plants was expected to advance substantially. The shortage of freight facilities delayed essential deliveries thus causing several lay-offs. Textile plants were launching plans for a spring drive to obtain additional women workprs; previous campaigns had received little response. The overall outlook for em ployment in manufac­ turing appeared to be good with many employers having sufficient orders for goods to guarantee all-out production for at least a year. There was an average of 8,796 vacancies notified per week in manufacturing during February. The slump during the month was due largely to the normal seasonal trend. Construction.—Indications pointed to an unprecedented boom in construction activity during 1947 despite material and labour short­ ages. . Shortages of structural and reinforcing steel, plumbing and heating equipment, iron

T A B L E I.—U N F I L L E D V A C A N C IE S A N D U N P L A C E D A P P L IC A N T S , B Y O C C U P A T IO N A N D B Y S E X AS A T M A R C H 20, 1947 *

Occupational Group

Unplaced Applicants

U nfilled Vacancies Male

Fem ale

T otal

Male

Fem ale

T otal

Professional and Managerial Workers..............................................

1,660

597

2,257

4,312

661

4,973

C lerical W orkers.....................................................................................

1,785

5,124

6,909

8,888

11,349

20,237

Sales Workers...........................................................................................

2,518

2,202

4,720

5,248

5,930

11,178

Personal and D om estic Service Workers.......................................

1,607

8,683

10,290

11,826

6,372

18,198

245

2,393

2

2,395

Agriculture and fishing.........................................................................

1,673

32

1,705

4,980

783

5,763

Skilled and Sem iskilled W orkers....................... .......... ............... Food and kindred products......................................................... T extiles, clothing, e tc ................................................................... Lumber and wood products........................................................ Pulp, paper, and printing.............................................................. Leather and products.................................................................... Stone, clay, and glass products.................................................. M etalworking................................................................................... E lectrical........................................................................................... Transportation equipment, n .e.c............. .................................

8,940 139 6,840 15 237 407 27 80 262 7

30,453 366 7,945 10,285 478 534 82 1,819 536 34 933 2,660 845 100 1,095 2,279 154 308

56,615 1,372 782 2,156 472 936 171 7,458 979 670 811 13,815 11,926 343 1,277 •8,849 857 3,841

5,414 762 2,119 no 154 262 35 342 79 201

Trade and serv ice........................................................................... Other skilled and sem isk illed .................................................... Forem en............................................................................................. Apprentices......... ..........................................................................

21,513 227 1,105 10,270 241 127 55 1,739 274 27 933 2,660 839 100 399 2,145 119 253

4 65 13 415 642 112 99

62,029 2,134 2,901 2,266 626 1,198 206 7,800 1,058 771 811 13,819 11,971 356 1,692 9,491 969 3,940

U nskilled Workers................................................................................. Food and tob acco........................................................................... Lumber and lumber products.................................................... M etalworking................................................................................... Construction..................................................................................... Other unskilled workers................. ..........................................

9,827 399 1,020 815 1,359 6,234

10,175 1,442 81 333 8,318

20,002 1,841 1,101 1,148 1,360 14,552

65,220 2,160 1,835 1,659 8,899 40,667

5,848 1,380 166 177 2 4,123

61,068 3,540 2,001 1,836 8,901 44,790

Total..................................................................

44,828

35,753

74,581

149,482

34,359

185,841

245

Transportation (except seam en )........................................

6 696 134 35 55

1

* The above table includes statistics on agriculture and fishing which have previously been excluded.

44 582

[A P R IL

T H E LABOUR GAZETTE

pipes and other materials were expected to continue throughout the season. The demand for bricklayers, plasterers, and stone masons will be acute; even during off-season activity these tradesmen continued to be in short supply. Resistance to high building costs, however, precipitated cancellation of a con­ siderable number of building contracts. Provincial budgets have been including extensive programs for highway construction.

The Maritime region reported that a large number of unskilled workers were expected to be absorbed in this work during the summer. Vacancies reported in construction moved up sharply during the month to exceed the 1946 level by 25 per cent. Average weekly vacancies in the construction industry numbered 2,387 during February. Transportation.—Em ploym ent in transporta­ tion gained steadily throughout the war and

T A B L E I I —U N F I L L E D V A C A N C IE S B Y I N D U S T R Y A N D B Y S E X . A S A T M A R C H 20. 1947 * Change From February 20, 1947 Industry

L o g g in g —

Male

T otal

Fem ale

Absolute

Percentage

-1 .5 0 2 -1 .0 1 1 176

-

13-8 51 0 53 0

- 2 .6 8 9

-

20-4

-

9-3

9,379 956 155

9 14 1

9,388 970 156

10,490

24

10,514

533

2

536

-

65

9 619 516 86 74 211 62

1 6 2 1 7 1

10 625 516 88 75 218 63

+ + + + +

28 66 326 16 45 80 5

- 73-7 — 9-6 +171-6 + 22-2 + 1 5 0 -0 + 580 + 8-6

2,110

20

2,130

+

323

+ 17-9

986 1,916 1,449 991 408 163 187 298 374 890 562 1,140 253 763 362

1,622 10,852 309 1,182 716 29 414 856 116 274 223 910 50 63 669

2,608 12,768 1,758 2,173 1,124 182 601 1,164 489 1,164 786 2,050 303 826 931

+ + + + + + + + + — + + + +

342 364 443 87 326 48 159 19 162 24 115 225 19 178 43

+ + + + + + + + + + + + +

15-1 2-8 33-7 4-2 40-9 36-8 36-0 1-7 49-5 2-1 12-8 12-3 6-7 27-5 4-8

10,732

18,184

28,916

+ 1 ,5 9 6

+

5-8

3,878

67

3,945

+

981

+ 33-1

1,498

143

1,641

+

228

+ 16-1

687

473

1,160

+

183

+ 18-7

1,227 2,089

776 3,337

2,003 5,426.

+ +

110 740

+ 5-8 + 15-8

T o ta l.....................................................................................

3,316

4,113

7,429

+

850

+ 12-9

F i n a n c e , I n s u r a n c e , R e a l E s t a t e ............................................................

1,459

1,307

2,766

+

328

+ 13-5

636 3,066 4,571 223 2,561

2,057 3,169 5,767 1,430 3,526

+ 747 + 364 + 1,239 + 315 + 237

T o ta l

................................................................ ............

M in in g —

M etallic ores— G o ld ..............................................................................................

M a n u t a c t t t b in o —

.

T rade—

S e r v ic e —

1,421 103 1,196 1,207 965

-

4,892

11,057

15,949

A g r i c u l t u r e , F i s h i n g ........................................................................................

1,674

299

1,973

G r a n d T o t a l ..............................................................................................................

40,736

35,687

76,423

+ + + + +

57-0 13-0 27-4 28-3 7-2

+ 2 ,9 0 2

+ 22-2

+

+ 54-0

* The above table includes statistics on agricultural and fishing which have previously been excluded.

692

+ 6,675

+

9-6.

1947]

583

EMPLOYMENT, HOURS AND EARNINGS

except for minor set-backs caused by the sea­ men’s strike during June, 1946, it has main­ tained the upward trend in the post-war period. Employment, however, has been highly seasonal. During February, severe weather conditions forced considerable unemployment among drivers and railway maintenance hands while at the same time it opened up snow

removal jobs for unskilled labourers. Both eastern and western coasts reported a tempor­ ary surplus of general and licensed seamen; some were seeking shore employment during the slack shipping season. Vacancies reported in transportation indus­ tries jumped by 49 per cent during the month to average 2,361 per week in February.

T A B L E I I I —U N F IL L E D V A C A N C IE S A N D U N P L A C E D A P P L IC A N T S B Y M O N T H • Unplaced Applicants

U nfilled Vacnacies

D ate Male March 23,1945........ March 21. 1940....... April 25, 1940.......... M ay 23. 1 9 4 0 ....... June 20, 1940............ July 25,1940............ August 22, 1940....... September 19, 1940, October 24, 1940__ N ovem ber 21, 1940 D ecem ber 19, 1940. January 23, 1947__ February 20, 1947.. March 20. 1947........

91,273 46,015 60,500 68,335 68,024 05,824 68,514 91,571 96,895 80,701 54,074 43,016 37,107 40,828

Fem ale 42,952 34,374 41,122 45,033 48,716 42,597 45,827 46,602 41,033 40,643 37,272 33,912 33,939 35,753

T otal

Male

134,225 80,389 101,628 113,368 ^ 116,740 108,421 114,341 138,173 138,528 121,404 91,346 76,928 71,040 76,581

55,030 219,518 205,849 173,365 150,435 132,531 114,731 112,560 104,030 110,925 129,647 154,541 157,549 149,482

T otal

Fem ale

84,300 208,323 252,701 215,423 188,892 167,750 147,277 143,457 130,029 143,299 158,178 189,882 195,256 185.841

29,276 48,805 46,852 42,058 38,457 35,225 32,546 30,897 81,999 32,374 28,531 35,341 37,707 36,359

* T he above table includes statistics on agriculture and fishing w hich have previously been exoluded. T A B L E IV .—A V E R A G E W E E K L Y P L A C E M E N T S A N D E N G A G E M E N T S W IT H O U T R E F E R R A L A S R E P O R T E D B Y N A T IO N A L E M P L O Y M E N T SE R V IC E FO R T H E M O N T H O F F E B R U A R Y , 1947 • W eekly Average Industry

Placem ents

Engage­ ments w ithout Referral

T otal Reported Accession

Placem ents of Accessions

%

A ll industries......................................................

12,701

18,715

31,416

40-4

Agriculture and fishing....................................

186

28

214

86-9

Logging.................................................................

841

2,487

3,328

25-3

Mining........................... ......... .............................

370

507

877

42-2

Manufacturing..................................................... Food and kindred products................... Textiles, apparel, e t c ................................ Lumber and finished lumber products Pulp and paper products and printing.. Chem icals and allied products............. Products of petroleum and c o a l............ Rubber goods............................................. Leather and products............................... Stone, clay and glass products.............. Iron and steel and their products......... Non-ferrous m eta ls.................................... M ach inery.................................................. Transportation equipm ent...................... Miscellaneous..............................................

3,934 420 698 471 350 192 36 87 95 98 357 190 427 377 118

7,521 828 1,421 760 070 208 73 107 204 183 620 300 893 819 249

11,455 1,254 2,119 1,237 1,026 400 109 254 359 281 977 556 1,320 1,196 367

34*3 340 32-9 38-1 34-7 48-0 330 34-3 26-5 34-9 36-5 35-3 32-3 31-5 32-2

Construction........................................................

1,427

1,730

3,157

45-2 45-1 23-4

Transportation and storage............................

1,052

1,281

2,333

Other public utilities........................................

124

405

529

T rad e....................................................................

1,559

2,135

3,694

42-2

Finance and insurance......................................

202

390

592

34-1

Public and professional service.....................

689

846

1,535

44-9

Other service......................................................

2,317

1,385

3,702

62-6

* The above table includes statistics on agriculture and fishing which have previously been excluded.

584

[A P R IL

T H E LABOUR GAZETTE

On the other hand, the post-war period has witnessed a marked improvement in the employment situation in hotels, restaurants and hospitals. Labour requirements at employ­ ment offices during February consisted largely of advance orders for help in summer resorts and tourist homes. The number of vacancies reported in service industries (other than public and professional) •averaged 4,388 per week in February.

Trade.—Reduced purchasing power—as fewer persons were on the payroll during the winter months—tie-ups in transportation and a, growing resistance to high price levels deflected the upward trend in retail trade. Some merchants were seriously concerned about the disposal of inventories, especially those of poorer quality. Opportunities for employment, however, continued to be avail­ able for the well-qualified applicant. Both a knowledge of the mefchandise and general sales experience were being specified on employer’s orders for help. Vacancies in trade establishments averaged 3,276 a week during February. This represented a marked advance over the number reported one month and one year previous. Service.—The dearth of household help con­ tinued to show little alleviation. Domestic servants were drawn into industry during the war years and the post-war period has 9een little return o f these workers to their former occupations. Until labour needs for women in industry were satisfied it was doubtful that a full complement of personal help would again be attained. Reporting of vacancies in this field had generally fallen off as house­ holders realized the slim prospects of obtaining help. Demand for domestic and personal service workers a t the end of February total­ ling 4,555 was, therefore, a considerable under­ statement of the actual number of jobs vacant throughout the country.

O P E R A T IO N S

OF

THE

(O N

A p p l ic a n t s

The great majority of seasonal lay-offs occurred prior to February. New registrants during the month were largely persons un­ placed because of labour disputes, material and box car shortages, and labour turnover. The shortage of freight cars caused lay-offs in meat packing plants, grain terminals, coal mines, and pulp and paper firms. The pro­ longed fishermen’s strike in the Maritimes forced employment reductions in fish pro­ cessing plants. Applications, other than re­ newals, showed a sharp drop throughout the country during February when the weekly average fell from 40,533 to 33,231. The slackening lay-off rate during the month stabilized the number unplaced at approxi­ mately 195,000 throughout February. One year previous the number unplaced was steadily gaining and by the end of February had passed the 263,000 mark.

N A T IO N A L

A C O M PA R A TIV E

R e g is te rin g

EMPLOYMENT

M O N TH LY

S ER V IC E

B A S IS ) 70

SO

eo

so

50

40

40

SO

30

20

20 VACANCIES

10

APPLICATIONS RECEIVED SM B

APPLICANTS EXCEED VACANCIES

tm&i

VACANCIES EXCEED APPLICANTS

1046 IOURCC: U.I.C. >51 B. DATA CXCLUDC A&AI CULTURE AMD RCPQCSCMT

T a b le

RESEARCH

V®

AND STA TISTICS BRANCH - DC FT . OP LABOUR

CHART M.I * J J

N a tio n a l

T a b le ment November 1 9 4 7

Unplacred A p p l i c a n t s U n f i l l e d V a c a n c ie s A p p l i c a n t s f o r whom t h e r e (applicants minus

1947

CHAPTER

V

ANALYSIS OP PROPOSAL WITH REFERENCE TO THE UNITED STATES The e n a c t m e n t , i n t h e U n i t e d S t a t e s , o f t h e p r o ­ p o s a l u n d e r d i s c u s s i o n w o u ld b e a c o m p le x u n d e r t a k i n g * D i f f i c u l t y l i e s in th e f a c t t h a t s o v e r e ig n ty i s d iv id e d b e tw e e n t h e F e d e r a l G overnm ent and t h e f c r t y - e i g h t i n ­ d iv id u a l S ta te s* b

J u r i s d i c t i o n o v e r t h e p u b l i c em ploym ent s e r v i c e

r e s t s w i t h t h e S t a t e Government*

F ederal a u th o rity i s

e x e r c i s e d n o t b y l a w ,b y p r e s s u r e ; t h e S t a t e r e c e i v i n g a g r a n t o f money i f c e t t a i n r e c o m m e n d a tio n s a r e f o llo w e d * Thus> i t a p p e a r s t h a t e a c h S t a t e l e g i s l a t u r e w o uld h a v e t o p a s s on s u c h a p r o p o s a l *

The d e n i a l o f F e d e r a l f u n d s

i s n o t a c e r t a i n i n d i c a t i o n t h a t s u c h l e g i s l a t i o n w o uld b e a d o p te d *

Nor i s t h e r e a n y r e a s o n t o s u p p o s e t h a t F e d ­

e r a l f u n d s w o u ld be d e n i e d .

The l a t t e r t h o u g h t r e s t s

upon th e c la im t h a t th e d e n i a l o f fu n d s s e r v e s o n ly t o e l i m i n a t e a s e r v i c e '; a n d , i t i s c l a i m e d t h a t i t

is b e t­

t e r t o h a v e some k i n d o f s e r v i c e , a l t h o u g h p o o r , t h a n none a t a l l . Y e t , t h e r e i s a good c h a n c e f o r t h e a d o p t i o n o f s u c h a p r o p o s a l l r recommended b y t h e F e d e r a l G overnm ent

419 a n d b a c k e d imp b y g r a n t s t o t h e S t a t e s , a l l y happen I s e n t i r e l y p r o b l e m a t i c a l .

w hat w o u ld a c t u ­ The r e m a in d e r o f

t h i s c h a p t e r i s biased upon t h e a s s u m p tio n t h a t t h e F e d e r ­ a l i o ^ e r m e n t land eiach i n d i v i d u i a l S t a t e G overnm ent w o u ld iadopt t h e p r o p o s a l • 1.

PROBABLE. OPERATIONS The d i r e c t i n g ; a g e n c y b e h i n d t h e o p e r a t i o n o f t h i s

l e g i s l a t i o n w o u ld p r o b a b l y b e t h e u n i t e d s t a t e s Employ­ ment s e r v i c e an d I t s d i v i s i o n o f r e s e a r c h .

From t h a t

d e p a r tm e n t w ou ld come t h e m e th o d s t o b e em p lo y e d b y e a c h l o c a l p u b l i c em ploym ent o f f i c e • The p u b l i c em ploym ent s e r v i c e w ould b e n o t i f i e d b y an em p lo y er who h a s a jo b v a c a n c y ,

tipon n o t i f i c a t i o n ,

t h e o f f i c e w o u ld g i v e t h e em p lo y er a n u m b e r. c a n c y w ould h a v e i t s own n u m b e r.

E ac h v a ­

T h is w o u ld s e r v e t o

p r o v e t h a t t h e em p lo y e r h a s in f o r m e d t h e a g e n c y o f t h e a v a i l a b l e jo b o p e n i n g , and w ould p e r m i t him t o h i r e a w o rk e r fro m w h a te v e r s o u r c e h e c h o o s e s .

The em p lo y er

w o u ld h a v e no c o n c e r n w i t h t h e number o t h e r t h a n t o u s e i t t o p r o v e t h a t h e h a s in f o r m e d t h e a g e n c y o f t h e v a ­ cancy. When t h e v a c a n c i e s come i n , t h e l o c a l em ploym ent s e r v i c e s h o u l d f o l l o w th em up b y m a i l i n g t h e e m p lo y er a s h e e t g iv in g in fo rm a tio n co n c e rn in g s e v e r a l w e ll-

50

q u a l i f i e d p r o s p e c t s who a r e a v a i l a b l e f o r employment*

The

em p lo y er w o u ld n o t h e f o r c e d t o i n t e r v i e w a p p l i c a n t s , f o r h e can th r o w t h e m a il i n t h e w a s t e b a s k e t i f he w i s h e s . Such a c i r c u l a r i s i n u s e t o d a y , b u t i s t o o g e n e r a l i n n a t u r e and much o f i t

i s wasited*

D a i l y , w e e k l y , b i - m o n t h l y , m o n th ly , q u a r t e r l y , s e m i - a n n u a l and a n n u a l c o m p i l a t i o n s o f t h e s e r e p o r t e d v a c a n c i e s w ould b e s e n t t o t h e r e s e a r c h s e c t i o n s o f t h e S t a t e and t h e N a t i o n a l P u b l i c Employment S e r v i c e s .

The

r e p o r t would b e b r o k e n down b y a r e a , t y p e o f e m p lo y e r , and ty p e o f em ployee q u a l i f i e d t o f i l l t h e v a c a n c y * R e p o r t i n g t o t h e p u b l i c on t h e d a t a g a t h e r e d w o uld b e on a S t a t e and F e d e r a l b a s i s •

The r e p o r t fro m

t h e S t a t e w o uld be on a c i t y , r e g i o n a l and s t a t e - w i d e b a s is.

The r e p o r t fro m th e F e d e r a l a g e n c y w ould i n c l u d e

a condensed v e r s i o n of each S t a t e r e p o r t and, in a d d i­ t i o n , a r e p o r t b y a r e a and a d i s c u s s i o n of n a t i o n a l t r e n d s . The r e p o r t s b y b o t h t h e S t a t e and F e d e r a l G o v ern m en ts w ould i n c l u d e a n a l y s i s o f t h e t r e n d s

and p r e d i c t i o n s ,

and reco m m en d a tio n s b a s e d upon them * II.

RAMIFICATIONS OF THE PROPOSAL The e m p lo y e r I s i n no way r e s t r i c t e d b y t h e e n ­

a c tm e n t of s u c h l e g i s l a t i o n . p u b l i c who a r e em ployees*

N e ith e r i s th e g e n e ra l

The e s t a b l i s h e d mode o f c o n -

51

d u c t can s t i l l p r e v a i l .

P ro o f of t h i s

i n T a b le IV o f t h e p r e c e d i n g c h a p t e r .

c la im can b e fo u n d N o te , t h a t of th e

3 1 ,4 1 6 p e o p l e who g o t j o b s d u r i n g t h e m onth o f F e b r u a r y , 1 9 4 7 , 1 8 , 7 1 5 , or 5 9 .6 $ o f t h e t o t a l ,

s e c u r e d w o rk t h r o u g h

s o u r c e s o t h e r t h a n t h e p u b l i c em ploym ent s e r v i c e .

T h is

i s p r o o f t h a t th e p r o p o s a l d o e s n o t c r e a t e a m onopoly f o r t h e p u b l i c employment e x c h a n g e .

Nor d o es i t d e p r i v e t h e

e m p lo y e r o f h i s r i g h t t o h i r e whomever h e p l e a s e s . T h e re i s n o d e n y in g t h a t t h e a c c u m u la te d s t a t i s ­ t i c s may u n c o v e r p o o l s o f l a b o r , an d p ro v e h i g h l y em­ b a rra ssin g *

H ow ever, a t t h e same t i m e , i t may p r o v i d e

u s w i t h a n e c e s s a r y g u id e w h ereb y we a r e a b le t o m easure t h e w e l l - b e i n g o f o u r econom y.

The n e e d f o r t h e l a t t e r

h a s b e e n s t r e s s e d b y many e c o n o m i s t s .

I t h a s b e e n con­

c i s e l y and c l e a r l y d e f i n e d b y t h e N a t i o n a l R e s o u r c e s B o ard i n I t s : r e p o r t o f December 1 , 1 9 3 4 . As f o r t h e p ro b le m of t i m i n g t h e r e l e a s e o f p u b ­ l i c w ork s on a l a r g e s c a l e ( t o c o u n t e r a c t i n d u s t r i a l d e p r e s s i o n ) , we t h i n k t h a t an o b j e c t i v e , q u a s i - a u t o ­ m a tic g u id e m ig h t b e d e v e l o p e d t h r o u g h im p ro v em en t i n o u r s t a t i s t i c s o f em p lo ym ent. Even i n t h e i r p r e s ­ e n t I m p e r f e c t s t a t e , A m erican in d e x e s o f employment g i v e on t h e w hole a more f a i t h f u l p i c t u r e o f b u s i n e s s c y c le s th a n any o th e r s i n g l e s e t of f i g u r e s . 1 The q u e s t i o n i s

also asked:

I s t h e c o n s e n s u s of b u s i n e s s 1 o p i n i o n as t o c u r r e n t 1. N a t i o n a l R e s o u r c e s B o a r d , A R e p o r t on N a t i o n a l P l a n n i n g and P u b l i c W orks, p . 5 2 .

52

c o n d i t i o n s and f u t u r e p r o s p e c t s , i n t e r p r e t e d b y some Governm ent a g e n c y , a s u f f i c i e n t l y d e f i n i t e g u id e ? Or w o uld some s e t o f s t a t i s t i c a l i n d e x e s b e s a f e r t o tru st? 2 The p r o b le m of t h e e f f e c t s o f s u c h a p r o p o s a l a r e f a r t o o com plex t o b e g i v e n d e t a i l e d t r e a t m e n t , b y t h e w rite r.

N e v e r t h e l e s s , t h e i m p l e m e n t a t i o n o f t h e com pul­

s o r y n o t i f i c a t i o n o f v a c a n c i e s w i t h i n t h e A m erican s c e n e i s not a fa r-fe tc h e d id e a .

2. I b id ., p. 51.

CHAPTER VI SUMMARY AND CONCLUSIONS' T h is t h e s i s hasi b e e n d e v o t e d t o a c o n s i d e r a t i o n o f one i s s u e , n a m e ly , how t h e e m p lo y e r i s a f f e c t e d b y t h e p r o p o s i t i o n t o make c o m p u ls o ry t h e n o t i f i c a t i o n o f v a c a n c i e s b y h im t o t h e p u b l i c employment s e r v i c e *

B efo re

a n y c o n c l u s i o n s a r e d r a w n , i t may b e w e l l t o r e v ie w t h e d a t a p r e s e n t e d i n t h e p r e c e d i n g c h a p te r s ^ . I*

REVIEW OP PRECEDING CHAPTERS. The p r o p o s a l a d v a n c e d b y t h e w r i t e r i s

t h a t em­

p l o y e r s b e c o m p e lle d t o n o t i f y t h e l o c a l p u b l i c em ploy ­ ment o f f i c e w henever t h e y h a v e a jo b o p e n i n g .

I t has

b e e n s t r e s s e d t h a t t h e em p lo y er w o uld n o t b e r e q u i r e d t o c o o p e r a t e i n any o t h e r way*

He c o u l d s t i l l u s e t h e same

so u rc e s a s b e fo re f o r r e c r u i t i n g h elp *

H ow ever, t h e s u g ­

g e s t i o n h a s b e e n made t h a t a s y s te m of job o r d e r num bers b e d e v i s e d t o i n s u r e s u c c e s s o f t h e schem e; and t o a i d i n a s s u r i n g c o m p lia n c e w i t h t h e l a w .

A d o p tio n o f t h i s

m e asu re w ould t e n d t o b r i n g a b o u t t h e n e e d e d c o o p e r a t i o n b e tw e e n e m p lo y e r and u n em ploy ed w o rk e r c o n s i s t e n t w i t h a p r o p e r o r g a n i z a t i o n o f t h e l a b o r m a r k e t. S ix m a jo r p o i n t s h a v e been d e v e l o p e d t o s u p p o r t t h e v ie w t h a t em p lo y e rs can b e n e f i t fro m t h e p r o p o s a l .

The f i r s t c o n c e r n s t h e o r g a n i z a t i o n o f t h e l a b o r m a r k e t , and p u r p o r t s t o show t h a t t h e r e i s a needL f o r o r g a n i z i n g t h e m a rk e t on a b a s i s co m p arab le w i t h t h e o t h e r c l e a r i n g a g e n c i e s i n o u r econom ic s y s t e m .

A n o th e r p o i n t d e v e lo p e d

c o n c e r n s ec o n o m ic c r i s i s and t h e s u p p o s i t i o n t h a t t h e i r a l l e v i a t i o n c a n b e a c c o m p lis h e d t h r o u g h more a c c u r a t e p re d ic tio n .

I t h a s b e e n s u g g e s t e d t h a t t h i s scheme m ig h t

a i d i n t h e d e c a s u a l i z a t i o n o f l a b o r , th u s rem o v in g t h e demand f o r d e c a s u a l i z a t i o n o f i n d u s t r y .

I t has been

f u r t h e r a r g u e d t h a t t h e r e w ould b e fe w e r b u s i n e s s f a i l ­ u r e s b e c a u s e of th e m a in te n a n c e of a b a s i c l e v e l o f c o n s u m p tio n .

The g e n e r a l p r o b le m o f e m p lo y a b le s on t h e

p u b l i c d o le h a s a l s o b e e n g iv e n c o n s i d e r a t i o n .

It is

c o n t e n d e d t h a t th e o r g a n i z a t i o n o f t h e l a b o r m a rk e t w o u ld i n s u r e t h e i r s p e e d i e r r e t u r n t o p r o f i t a b l e em ploy­ ment . F iv e m ajor and tw o m inor p o i n t s h a v e b e e n d i s ­ c u s s e d as o b j e c t i o n s t o t h i s p r o p o s a l .

T hey w ere t a k e n

from l e t t e r s w r i t t e n b y e m p lo y e r s , and fro m i n t e r v i e w s w i t h th e m .

The e m p lo y e rs f e e l t h a t t h i s p r o p o s a l w ould

open t h e d o o r t o f u r t h e r g o v e r n m e n ta l e n c ro a c h m e n t upon * t h e i r r i g h t s as p r i v a t e b u sin e ssm e n .

In a d d itio n , i t

h a s b e e n p o i n t e d o u t b y t h e e m p lo y e rs t h a t , u n l e s s a l l e m p lo y e rs c o o p e r a t e , t h o s e who l i v e u p t o t h e s p i r i t o f

t h e law w i l l s u f f e r i n c o m p a riso n with, t h o s e who do n o t a b id e b y th e r e g u l a t i o n s .

Many em p lo y ers f e e l t h a t t h e

t a x b u r d e n i s h e a v y enough r i g h t now w i t h o u t i n c r e a s i n g it

an y f u r t h e r , a s t h i s p r o p o s a l i s c e r t a i n t o d o .

It

seems t h a t e m p lo y e rs a r e v e r y much c o n c e r n e d a b o u t t h e s o - c a l l e d cro o k ed p o l i t i c i a n s m e n t.

and r a c k e t e e r s i n g o v e r n ­

They f e e l t h a t th e p r o p o s a l o f t h i s

stre n g th e n t h e i r p o s itio n .

t h e s i s w ould

The i n c r e a s e i n o f f i c e e x ­

p e n s e an d t h e d e l a y i n t h e h i r i n g p r o c e s s a r e o t h e r a r ­ g um ents a g a i n s t t h i s

p ro p o sa l.

R e l u c t a n c e o f e m p lo y e rs

t o d e a l w i t h t h e p u b l i c em ployment s e r v i c e c a n b e c o n ­ s id e re d as a s e r io u s o b je c tio n . s u g g e s t e d t h a t th e s t a t i s t i c s

L a s tly , th e w r ite r has

r e s u l t i n g fro m o p e r a t i o n

o f t h e p r o p o s a l w ould b r i n g t o l i g h t p o o ls o f l a b o r a n d make f u r t h e r demands upon t h e e m p lo y e r . The e x p e r i e n c e o f C a n ad a , w h ere t h e recommended proposal i s

t o d a y i n e f f e c t , h a v e b e e n r e v ie w e d .

been p o in te d out t h a t p r e s e n t l e g i s l a t i o n th e n o tif ic a ti o n

c a l l s o n ly f o r

o f e m p lo y e r fs r e q u i r e m e n t s and a s e m i­

annual s t a t i s t i c a l r e p o r t. lie s

I t has

The v a l u e o f th e p r o p o s a l

i n th e s t a t i s t i c s g a t h e r e d .

T h e se w ou ld b e com­

p i l e d , i n t e r p r e t e d an d p r e s e n t e d i n r e a d a b l e form f o r t h e c o n v e n ie n c e o f t h e la y m a n .

C o p ies o f s u c h r e p o r t s

h av e b e e n p h o t o s t a t e d and i n c l u d e d i n t h i s t h e s i s .

The

w r i t e r h a s s u g g e s t e d t h a t th e s t a t i s t i c s m ig h t b e u s e d

56

as a " q u a s i - a u t o m a t i c ” g u id e b y w h ic h t o ju d g e t h e ec o ­ nomic w e l l - b e i n g of t h e n a t i o n fs i n d u s t r i a l economy# I n c h a p t e r V, an a t t e m p t h a s b e e n made t o exam ine th e p ro p o s a l in r e s p e c t to th e U n ite d S t a t e s .

I t has

b e e n p o i n t e d o u t t h a t t h e F e d e r a l - S t a t e s y s te m o f gov­ ern m en t m ig h t c a u s e t r o u b l e a s f a r a s a d o p t io n i s con ­ cern ed .

The o p e r a t i o n o f t h e p r o p o s a l w ould b e p r i m a r ­

i l y on a l o c a l b a s i s , b e tw e e n em ployer and employment o ffic e ,

and on a s t a t e

and n a t i o n a l b a s i s o n l y i n as

f a r as t h e c o m p i l a t i o n , i n t e r p r e t a t i o n , and p u b l i c a t i o n o f t h e a s s e m b le d . d a t a i s

concerned.

S tr e s s has been

p l a c e d on t h e f a c t t h a t em p lo y e rs a r e - n o t h am p ered i n t h e i r r o u tin e o p e ra tio n s by th is

p r o p o s a l ; and a l s o ,

t h a t s u c h i n f o r m a t i o n as w ould be p r o v i d e d by t h i s p r o ­ p o s a l h a s b e e n c a l l e d f o r tim e and tim e a g a i n b y l e a d i n g e c o n o m is ts and i n v e s t i g a t i n g

a g e n c ie s o f t h e U n i t e d

S t a t e s G ov ernm ent. II.

CONCBUSIONS As f a r as Canada I s

c o n c e r n e d , t h e c o m p u ls o ry

n o t i f i c a t i o n of v a c a n c ie s h as p ro v id e d th e n e c e s s a r y s ta tis tic s

( q u a s i - a u t o m a t i c g u id e ) w hereby t h e econom ic

h e a l t h , o f t h e n a t i o n may b e p a r t i a l l y ju d g e d .

T h is h a s

b e e n done b y co m p a rin g th e number o f p e o p l e a p p l y i n g f o r jo b s a t th e l o c a l em ploym ent s e r v i c e s w i t h t h e number o f

57

jo b s on f i l e

w ith th e s e r v i c e .

As f a r as th e U n i t e d S t a t e s i s c o n c e r n e d , th e p o s ­ s ib ilitie s

f o r th e a d o p tio n of t h i s p ro p o s a l appear t o

be f a v o r a b le c o n s id e r in g t h a t i t

c o u l d o r i g i n a t e fro m

t h e "New D e a l" D e m o c ra tic A d m i n i s t r a t i o n a n d b e f o r c e d o n to t h e S t a t e s .

The a p p l i c a t i o n o f t h e p r o p o s a l m ig h t

be d i f f i c u l t , h o w e v e r, b e c a u s e e m p lo y e r s a r e r e l u c t a n t to c o o p e ra te .

N e v e rth e le ss, i f

t h e e m p lo y e r s s u p p l y t h e

r e q u ir e d in f o rm a tio n , th e r e s e a r c h d e p a rtm en t o f th e p u b l i c em ployment s e r v i c e c o u l d e a s i l y i n c o r p o r a t e i t w ith in i t s p re s e n t c o m p ila tio n s . The w r i t e r p ra c tic a l.

c o n c lu d e s t h a t t h e i d e a i s so u n d and

I t do es n o t i n f r i n g e on th e r i g h t s o f any

g ro u p i n t h e A m erican economy; n o r on t h o s e o f an y o t h e r economy, f o r t h a t m a t t e r .

The b e n e f i t s g a i n e d b y t h e

em p lo y er fro m t h e a d o p t io n o f t h i s p r o p o s a l f a r o u tw e ig h s th e o b je c tio n s t o i t .

B 1 B L I 0 0 R1 B H Y

BIBLIOGRAPHY A*

BOOKS

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, The I n d u s t r i a l R e p u b l i c , C l e v e l a n d , O h io , The CJurday andi d r o s s Company, 1 9 4 6 . 201 p p . H a r t f i e l d , W. J . , Economic D em ocracy, L ondon, Q u a l i t y P r e s s , L t d . , t§£ 5Z pp.

M i l l h o l l a n d , R a y , F ay D ay, New Y o rk , W i llia m Morrow & G o .,

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2£5~pp.

M oore, W i l b e r t E . , I n d u s t r i a l R e l a t i o n s iand t h e S o c i a l O r d e r . New Y o rk , f He Mac m i l l an Gompany, 1946 • S5& p p • O’S h a u g h n e s s y , M i c h a e l , Economic D em ocracy and P r i v a t e E n t e r p r i s e . New Y o rk , H a rp e r and B r o t h e r s , 1 9 45 • I i7 pp. F i g o u , A. C . , Employment an d Equ i l i b r i u m . M a c m illa n and dompany, l 9 i T I 283 p p .

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PERIODICAL LITERATURE

E d i t o r i a l , ^ N a t i o n a l Employment S e r v i c e R e g u l a t i o n s , 1 9 4 7 ,n The L abour G a z e t t e , X L V I I , ( A p r i l , 1 9 4 7 ) , p p . 5 6 9 - 5 7 0 . E d i t o r i a l , ” The T h i r t y - F i r s t S e s s i o n o f t h e I n t e r n a t i o n a l L a b o r C o n f e r e n c e , ” I n t e r n a t i o n a l L ab o r R e v ie w , L V I I I , ( O c t o b e r , 1 9 4 8 ) , p p . 4 3 3 -4 7 9 • E d i t o r i a l , 11A t t i t u d e s Towards A u s t r a l i a n Commonwealth Employment S e r v i c e , ” M o n th ly L a b o r R e v ie w , Cl I N o. X I I , (F e b ru a ry , 1 9 4 6 ), p p . 229-230. “ E d i t o r i a l , ” j o b s go B e g g in g W hile W orkers Get C o m p e n s a tio n ,” F a c t o r y Management and M a in te n a n c e , XV No. IX , (December I M S i , p p . '9 8 -10 67 " H u n t e r , F . W ., ”USES S e r v i c e s t o I n d u s t r y , ” I n d u s t r i a l M e d ic in e , XV No. XIX, ( S e p te m b e r , 1 9 4 6 ) , p p • 525-5 26 *

62

C.

ESSAYS

I s a a c s , G. A . , P u b l i c Employment S e r v i c e i n G r e a t B r i t a i n * L on do n, A u g u s t, 1 9 4 6 , pp* 1 -9* D•

SERIES

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