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T H E FE D E R A L GOVERNM ENT’S LABOR AND M ANPOW ER PROGRAMS D e pa r t m e n t of L abor Statement submitted by James P. Mitchell, Secretary of Labor The enclosed material is submitted in response to the subcommittee’s request of August 2. I t is organized in terms of the three questions addressed to us and includes a separate statement for each major program of the Department of Labor. I should like to call particular attention to the statements of stand ards employed by the Department in determining its programs. The standards set forth are those which are regularly employed in the Department, and which were arrived at after a careful review of operating activities in 1953 and 1954 and approved by the policy officials of the Department. They are now regularly employed by the particular policy and administrative officials of the Department re sponsible for the different areas of the Department’s work. The De partm ent regularly reviews existing and proposed programs in the light of these standards. The standards set forth reflect and carry into administrative prac tice the various statutes under which the Department operates. Some of these statutes, such as the organic act of the Department, estab lish broad standards and responsibilities, while other statutes, such as the F air Labor Standards Act, provide specific legislative direction. The statutory obligations of the Department, of course, go beyond questions of economic growth and stability. P rogram on A p p r e n t ic e s h ip a n d T r a in in g Relationship of this program, to the processes o f economic growth in the private sector o f the economy Encouragement of the development of training standards and the use of the most effective methods of training in order to assist the p ri vate sector in planning training for the apprentices and skilled labor required for economic growth. Usefulness or limitations o f this program for purposes o f the stabi lization o f the economy Better training of apprentices, and continuous skill-improvement training for all workers, helps develop a versatile labor force capable of making a transition to other types of work, when changes in the economy make such shifts necessary, thus tending to reduce frictional and cyclical unemployment. 885 886 ECONOMIC GROWTH AND STABILITY Standards employed by the Department of Labor in determining the hind and size o f programs requested in this field A proposed program is tested as to whether it will—• Help achieve, through cooperative effort, an adequate skilled and versatile work force and the training of apprentices in apprenticable occupations to meet current needs for skilled workmen and the needs of future economic conditions, technological developments, and na tional security, and to increase the job opportunities, earning ability, and security of the apprentices; and Stimulate those responsible for training to provide equal oppor tunities for all qualified individuals to acquire skills without regard to race, creed, sex, age, or physical handicaps. P rogram o n F ederal G overnm ent W o r k m e n ’s C o m p e n s a t io n Relationship o f this program to the processes o f economic growth in the private sector o f the economy Recovery, and where possible, rehabilitation, of injured Federal workers and covered private employees provides a positive contribu tion to economic growth. Thus, while the objectives of the program are prim arily humanitarian, the economic effects are also beneficial. Uesfulness or limitations o f this program fo r purposes o f the stabiliza tion o f the economy This program contributes to the stabilization of the economy by helping to maintain the purchasing power of Federal workers and private employees covered by Federal compensation laws who are disabled on the job, or of their surviving families in case of their death. In addition, it provides for the medical and rehabilitation services necessary to restore them as useful members of the labor force as quickly as possible, and thus lessens the Federal, local government, and private expenditures which would otherwise have to be paid. Standards employed by the Department of Labor in determining the hind and size o f programs requested in this field A program is tested as to whether it will aid in accident prevention and provide to persons who are covered by the Federal employee and workmen’s compensation laws and who are victims of occupational injury and diseases: All medical care needed as a result of the in ju ry ; Monetary benefits sufficient to support themselves and their fam ilies without recourse to public a id ; Prom pt and reasonable compensation for the support of dependents when death results from such injury or disease; Suitable rehabilitation service where needed to aid permanently dis abled employees to return to remunerative employment; and A simple expeditious procedure for the processing and adjudication of claims and for review of final decisions of the adjudicating agency. P rogram on F ederal L abor S tandards Relationship o f this program to the processes o f economic growth in the private sector o f the economy Administration of legislation setting labor standards which are consistent with developments in productivity and with economic ECONOMIC GROWTH AND STABILITY 887 growth in the private sector of the economy, and conducive to the regu larization of the labor market and improvement of demand in lowincome groups. Usefulness or limitations o f this program for purposes o f the stabili zation of the economy This program, by securing and maintaining compliance with the minimum labor standards established in legislation enacted by the Congress, prevents the use of the channels of interstate commerce to spread wages and working conditions below the statutory standards among the several States, and prevents the use of such below-standard labor conditions as a competitive advantage among competitors for contracts with the Federal Government. This helps to stabilize the labor market and prevents labor conditions that the Congress has declared to be substandard from adversely affecting the structure of wages; protects the health, efficiency, and general well-being of the workers to whom the laws apply, and helps to maintain consumer demand by securing to such workers at the low end of the wage scale a share in long-run technological improvement and in the growth of the economy. Standards employed by the Department o f Labor in determining the hind and size o f programs requested in this field A proposed program is tested as to whether it will— Contribute to the achievement of fair-labor standards by provid ing through Federal legislation minimum standards and providing through voluntary methods standards that are consistent with the best possible practices. P rogram on F ederal-S tate E m plo y m en t S e c u r it y Relationship o f this program to the processes o f economic growth in the private sector o f the economy Promotion of the effective utilization of the Nation’s manpower re sources, present and future, agricultural and nonagricultural, and provision of basic purchasing power for the insured unemployed. Usefulness or limitations o f this program fo r purposes of the stabiliza tion o f the economy The Federal-State system of public employment offices minimizes the duration of unemployment and facilitates production by aiding in bringing jobs and workers together; it assists in better utilization of the labor force by counseling and testing of applicants for jobs, particularly youth, older workers, and the handicapped, by providing labor-market information to workers, employers and communities, and by providing a clearance system for jobs that cannot be filled locally. Unemployment insurance assists in maintaining the purchasing power of the unemployed for goods and services and thus helps to stabilize the economy. The effectiveness of the unemployment in surance program has been increased in recent years through extension of coverage so that about 80 percent of workers subject to the risk of unemployment are covered, and through substantial increases in the amount and duration of benefits. 888 ECONOMIC GROWTH AND STABILITY However, its effectiveness is limited by exceptions from coverage in the State laws, by a lag between rises in wages and increases in the maximum amount of benefits in many States, and by too short a duration of benefits in some States. Standards employed by the Department of Labor in determining the kind and size of programs requested in this field A proposed program is tested as to whether it will— Aid, through an effective employment-service system, in getting the best possible, job for the worker and the best possible worker for the job; Provide adequate income insurance for unemployed workers when suitable jobs are not available, and through this system help maintain purchasing power; Assist in the improvement and optimum utilization of the Nation’s manpower resources, including the promotion of employment oppor tunities ; Assist in maintaining and improving our manpower readiness for defense mobilization; and Develop and disseminate employment, unemployment, and labormarket information in order to assist in achieving economic stabiliza tion and growth, and to meet the informational needs of labor, man agement, and the public. P rogram of I n t e r n a t io n a l L abor Relationship of this program to the processes of economic growth in the private sector of the economy Cooperation with United States private organizations (labor and management) in demonstrating to opposite numbers in other countries how economic growth is achieved in this Nation, and how its fruits are shared among the different factors of production. Economic rowth throughout the free world aids economic growth in the United tates. Usefulness or limitations of this program for purposes of the stabiliza tion of the economy This program is a p art of the great effort which is being carried on by government, business, and labor in this country and in other parts of the free world to increase international understanding, and develop economic policies, within a democratic framework, which will promote peace, without which stabilization of the economy is impossible. Standards employed by the Department of Labor in determining the kind and size of programs requested in this field A proposed program is tested as to whether it will— Help make and carry out United States foreign policies and pro grams which will promote the national interests in the foreign labor field and improved labor conditions, peaceful cooperation, and resist ance as to totalitarian inroads throughout the world. § ECONOMIC GROWTH AND STABILITY P rogram o n M o b il iz a t io n P 889 l a n n in g Relationship o f this program to the processes o f economic growth in the private sector of the economy Preparation for emergency situations in which it must be assumed that the normal aims and functioning of the private economy would either be seriously impaired or destroyed. Usefulness or limitations o f this program fo r purposes o f the stabiliza tion o f the economy None as far as cyclical fluctuations in the normal peacetime opera tion of the economy are concerned. The program is designed to develop for the establishment and ad ministration of facilities to effect the efficient allocation of manpower resources among production needs generated in emergency situations, income maintenance for disaster unemployed, and for emergency workers for the stabilization of wages and salaries. Such actions include the development of material related to the man power aspects of adequacy of a mobilization base in peacetime. Standards employed by the Department of Labor in determining the kind and size of programs requested in this field A proposed program is tested as to whether it will— Aid State and local employment offices in applying methods and techniques which will bring about a balancing of labor supply and requirements and which will channel labor supply to essential work in the numbers needed in any labor market area under conditions which will exist during (a) the civil-defense emergency period, ( b) the rehabilitation period, and (c) the production period; Result in the provision of information on (a) current employment and requirements (National, State, and local) in defense industries and in civilian supporting industries, (b) status of the military man power pool, ( c ) occupational data sufficient to determine lists of critical occupations, (d) the available supply of labor by occupation and by geographic area (regional, State, and local) to meet production sched ules ; and Result in the provision of types of information which will be needed to establish national policies to maintain the proper balance between m ilitary production and civilian requirements, to schedule produc tion in such a way as to maximize the Nation’s productive capacity, and to establish manpower policies which will bring about the maxi mum effective use of the Nation’s labor supply. P rogram o n O ld er W orker Relationship o f this program to the processes o f economic growth in the private sector o f the economy Foster economic growth in the private sector of the economy by utilizing effectively the skills and abilities of the increasing number of older workers in the labor force. Usefulness or limitations o f this program for purposes o f the sta bilization o f the economy This program promotes economic stabilization by increasing employment opportunities for older persons able and willing to work, 890 ECONOMIC GROWTH AND STABILITY by providing counseling and placement services through the facilities of State employment security agencies and other public and private services, and encourages older persons to enter or reenter shortage fields to the extent that they can qualify directly or after training for the opportunities available. _ The program is in p art limited in its effectiveness by the unwilling ness on the p art of many employers to hire older workers because of the erroneous assumptions th at older workers are more accident prone, have poorer attendance records, increase company pension costs, have lower productivity than other workers; the services pro vided to older persons by State employment-security agencies and by other public and private agencies are limited because of the addi tional time and effort required; and certain social-security provisions limit the amount retired persons can earn. Standards employed by the Department o f Labor in determining the hind and size o f programs requested in this field A proposed program is tested as to whether it will— Improve the employment and earnings opportunities for older men and women, consistent with their abilities and willingness to work, to increase their contributions to the economy as a whole; Assist labor, management, governmental agencies, private organi zations, and the general public in developing and carrying out broad educational and informational programs designed to overcome the prejudices against older workers and to increase the acceptance in employment of qualified older men and women; Extend and improve the direct services such as job counseling, placement, and individualized job development through the facilities of the affiliated State employment-security agencies and other private and public services, to enhance the employability of older men and women able and willing to work; Contribute to the achievement of a coordinated Federal Govern ment program to provide a comprehensive approach to the problems of aging and the aged; and Help to alleviate occupational shortages by encouraging the em ployment of unused or underutilized skills and abilities of qualified older men and women in the shortage occupations. P rogram on R esea rch and S t a t is t ic s Relationship of this program to the processes o f economic growth in the private sector o f the economy Provision to business, labor unions, Government, and the general public of reliable information relating to the labor and manpower situation, needed by people making decisions in our decentralized private-enterprise economy. These data assist in planning for future economic growth on the basis of knowledge of the past and present labor and manpower situation, and probable future trends. Usefulness or limitations of this program for purposes o f the sta bilization o f the economy The increasing size and complexity of our economy make it more and more necessary to have factual information and analytical studies which will— 891 ECONOMIC GROWTH AND STABILITY (a) Make it possible to appraise the adequacy of existing stabilization program s; ( b ) Contribute to the maximum effectiveness of private action by enhancing the functioning of both public and private labormarket institutions; ( c ) Provide material to the Council of Economic Advisers for reports to the President and Congress as required by the Em ployment Act of 1946, as amended, and by other statutory provisions; and (d) Inform those concerned of any evidence of instability which may be developing in the economy. Analyses of defi ciencies and gaps in research and statistics programs related to labor and manpower were prepared by the Bureaus of Labor Statistics and Employment Security of the Labor Department in the spring of 1954 and sent to the Joint Economic Committee by the Office of Statistical Standards, Bureau of the Budget. Some of the gaps and deficiencies then reported have now been remedied; others remain. Recently, the Labor Department, at the request of the Bureau of the Budget, has sent to that agency a statement of long-range programs for the development of statistics in this field. Standards employed by the Department of Labor in determining the kind and size o f programs requested in this field A proposed program is tested as to whether it will— Provide factual information and analyses on economic and social conditions and problems affecting the welfare of workers—for an in formed public opinion, for improving labor-management relations and facilitating collective bargaining, for other private or public action or policy purposes, and for carrying out the administrative and enforcement responsibilities of the Department in promoting the welfare of workers; Provide general economic and statistical information for the Gov ernment and the public, or the basis for reports to the Congress on conduct of statutory functions, or answers to legislative or other in quiries; and Assist in the determination of departmental positions with respect to legislative proposals or administrative actions of other agencies on economic and social issues outside the immediate responsibility of the Department, but impinging on the interests of labor in matters such as social security, foreign trade, taxation, housing, health, edu cation, welfare, military manpower policy, depressed areas, and gen eral economic policy. P rogram on V etera ns’ R eem plo y m ent R ig h t s Relationship of this program to the processes o f economic growth in the private sector of the economy Assistance to veterans in obtaining reemployment to the jobs, sal aries, and seniority status to which they are entitled by law. Usefulness or limitations of this program for purposes o f the stabili zation o f the economy By facilitating the rapid reemployment of veterans and by assist ing veterans already employed to regain their former salaries and 892 ECONOMIC GROWTH AND STABILITY status, this program improves the incomes of such persons. Thus it helps to stabilize the economy both by increasing the number of per sons who return to occupations in which they are trained and can be usefully engaged in the production of goods and services and by in creasing the purchasing power needed to buy goods and services. A t the same time it tends to decrease Government expenditures by re ducing payments for veterans’ unemployment insurance. Standards employed by the Department of Labor in determining the hind and size of programs requested in this field A proposed program is tested as to whether it will— Insure reemployment and seniority protection for men and women who interrupt their civilian careers for training or service in the Armed Forces of the United States; Aid all persons covered by the veterans’ reemployment statutes in obtaining the reemployment rights and benefits to which they are entitled; and Assist employers, labor organizations and other interested parties in resolving problems arising under reemployment rights statutes. P ro g k a m on W o m e n ’s A f f a i r s Relationship of this program to the processes of economic growth in the private sector of the economy Promotion of employment opportunities and standards to increase the contribution of women in the labor force to the growth of the Nation’s economy. Usefulness or limitations of this program for purposes of the stabiliza tion of the economy This Federal program aims to alleviate occupational shortages by encouraging women to enter shortage occupations and by encouraging establishment and use of appropriate training facilities to enable women to fill such occupations under standards which help to maintain stability and purchasing power. The continued existence of some customs and practices which tend to restrict women’s opportunities for training or advancement to higher level positions somewhat limit the effectiveness of this pro gram which has as one of its objectives the removal of discrimination m employment based on sex. Standards employed by the Department of Labor in determining the ___ kind and size of programs requested in this field A proposed program is tested as to whether it will— Advance the status of women in the work force and as citizens, in crease their contribution to the economy; Aid, through an effective informational program, in providing women with increased employment opportunities; Alleviate substantial occupational shortages which can appropri ately be filled by women; Improve international understanding of the position of women as a means of improving their status and their contribution to economic and social progress. 893 ECONOMIC GROWTH AND STABILITY P rogram o n W o r k in g C o n d it io n s T hrough S tate A c t io n Relationship o f this program to the processes o f economic growth in the private sectors o f the economy Maintenance and increase in the purchasing power of workers through noninflationary measures; encouragement and assistance to States in the establishment of such standards as minimum wages, safety conditions, compensation for work-incurred injuries, and em ployment of women and children. Usefulness o f limitations o f this program for purposes o f the stabiliza tion o f the economy The State systems seek to provide income to injured workers, reduce the number and frequency of occupational injuries, establish standards to prevent the exploitation of all types of labor, and eliminate unfair competition based upon substandard wages. The programs are limited in effectiveness because the States differ in the development and application of these standards. Not all have complete programs in the labor standards field and in some existing programs have failed to advance as rapidly as the economic develop ment of the State would warrant. Standards employed by the Department of Labor in determining the kind and size o f the programs requested in this field A proposed program is tested as to whether it will— Aid States m developing labor laws, administrative practices, and voluntary programs which promote the welfare of the workers, sound labor-management relations, and improved employment opportunities; and Enable the Federal Government to encourage and assist through development of standards and through advisory and technical assist ance, and to supplement in the occupational safety field by Federal grants-in-aid. 9 7 7 3 5 — 57------- 58
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