Full text of Monthly Labor Review : December 1946, Vol. 63, No. 6
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JAN 8 1347 UNITED STATES DEPARTMENT OF LABOR • BUREAU OF LABOR STATISTICS +++++++*+++++ + C O N T ^ N T^S L A W R E N C E R. K L E I N , Edi tor + ######**##### DECEMBER 1946, Yol. 63, No. 6 Special articles: Page State and regional variations in prospective labor supply----------------851 Postwar work stoppages caused by labor-management disputes-------872 Productivity changes since 1939-----------------------------------------------------893 The physically impaired worker in industry---------------- ------- ----------918 Veterans return to the Nation’s factories-----------------------------------------924 International labor relations: The twenty-ninth session of the International Labor Organization— 935 Labor requirements: Labor requirements in southern pine lumber production------------------ 941 Wage and hour statistics: Wage structure of the hosiery industry, January 1946--------------------- 954 Cooperatives: Activities of credit unions in 1945------------------------------- ----------------- 962 Labor-management disputes: Controversies and significant developments, November 1946-----------Work stoppages in October 1946----------------------------------------------- - 967 969 Labor laws and decisions: Recent decisions of interest to labor------------------------------------ r------- 971 Prices and cost of living: Decontrol of prices and wages-----------------------------------------------------Prices in the third quarter of 1946-----------------------------------------------Index of consumers' prices in large cities, October 1946-------------------Retail prices of food in October 1946--------------------------------------------Wholesale prices in October 1946-------------------------------------------------- 977 979 996 1000 1006 Construction: Construction activity, September-November 1946-------------------------722250— 46-------1 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I 1012 IX CONTENTS Trends of employment and labor turn-over: Labor force, October 1946_______________________________________ Summary of employment reports for October 1946_________________ Industrial and business employment__________________________ Public employment_________________________________________ Detailed reports for industrial and business employment, September 1946-----------------------------Labor turn-over in manufacturing, mining, and public utilities, Sep tember 1946__________________________________________________ Page 1019 1020 1021 1022 1025 1034 Trends of earnings and hours: Summary of earnings and hours data for September 1946 __________ Trend of factory earnings, 1939 to September 1946________________ 1039 1044 Recent publications of labor interest_________________________________ 1046 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis This Issue in Brief State and regional variations in prospective labor supply Prospective changes in the labor force during the current decade vary widely by State and region, ranging from an increase of 25 to 45 percent on the Pacific Coast to a decrease of 1 to 5 percent in the West North Central States. The variations are described and the factors causing them are discussed in the article beginning on page 851. Postwar work stoppages caused by labor-management disputes During the 12-month period following VJ-day, 4,630 work stoppages due to labor-management disputes occurred. These controversies directly involved nearly 5,000,000 workers and resulted in about 120,000,000 man-days of idleness. The period was characterized by large-scale stoppages in such industries as coal, steel, automobiles, electrical manufacturing, meat packing, and transportation. Wages were the major issue in most of the disputes, although other factors, such as union security and health and welfare benefits, also played a prominent role in some controversies. There were 42 stoppages each affecting 10,000 or more workers. Page 872. Productivity changes since 1939 Productivity trends varied widely from industry to industry during the war period. In munitions production, output per man-hour rose sharply as massproduction methods were applied and new techniques developed. Many indus tries producing goods for civilian use were handicapped by scarcity of new equip ment, restrictions on production, and shortages of labor and materials. In the mining industries, output per man-hour rose at approximately the prewar pace, despite many wartime difficulties; in railroad transportation, electric power, and agriculture, there were unusually sharp gains in productivity. ' Output per man hour in manufacturing industries will probably increase rapidly during the coming period because wartime difficulties will not prevail ana large amounts of new equipment will be installed. Further increases in productivity may also be anticipated in nonmanufacturing industries after readjustment to peacetime operations is completed. Page 893. The physically impaired worker in industry As a group, the first 4,000 seriously impaired workers studied in the Bureau’s survey of 10,000 such workers compared favorably with a group of 6,500 unim paired workers. The group of impaired workers were as efficient as the un impaired, had the same absenteeism rate, and had only two-thirds the number of disabling injuries. In nearly all of the 47 plants surveyed, impaired workers were placed on jobs at which their impairments aid not handicap them. They were found in a great variety of occupations, most of them on the production line. Page 918. hi https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IV T H IS ISSUE IN BRIEF Veterans return to the Nation’s factories More than twice as many veterans were employed in manufacturing industries in July 1946 as in December 1945. About half of all veterans on factory pay rolls were employed in 8 major industrial groups, in which earnings averaged $45 or better over the entire 8-month period. Veterans comprised a greater proportion of the hires in the durable than in the nondurable component of manufacturing. Total separation rates for veterans, including quits, discharges, and lay-offs, were consistently higher than for non veterans. Since quits represent at least threefourths of veteran separations and higher quit rates are characteristic of new employees, the higher veteran separation rates should not be overemphasized. Veterans quitting jobs in iron and steel, machinery (except electrical), and auto mobiles accounted for at least 30 percent of all veteran quits over the entire period studied. The veteran discharge and lay-off rates were generally lower than for nonveterans in the early part of the period, but the differences practically dis appeared owing to the greater job seniority of nonveterans. Page 924. Labor requirements in southern pine lumber production The production of 1,000 board feet of dressed lumber in the southern pine area in early 1946 required a total of 41.2 man-hours of labor from the felling of the tree to the loading of the freight car. This was an increase of 34 percent from the 30.7 man-hours required in 1935 when the last survey was made. All proc essing departments showed increases in labor requirements over the 11-year period, fewer man-hours being needed only for shipping and administration. The increases reflected the shortage of experienced workers, the sparseness of the timber stands, and the increased production of low-grade hardwoods. These factors far outweighed the limited improvements in mechanization. Page 941. Prices in third quarter of 1946 The price advance during the third quarter of 1946 was greater than the entire increase from the hold-the-line order in the spring of 1943 to June 1946. Con sumers’ prices rose 9% percent and wholesale prices 9.8 percent. The dominant influence continued to be the huge effective demand from consumers and industry for goods and services, which still far exceeded supply. Prices rose sharply during the period from June 30 to July 25, when price controls were temporarily suspended. Passage of the Price Control Extension Act of 1946 on July 25 gen erally restored controls in effect on June 30; but the new act exempted a number of agricultural commodities from price control and contained certain important provisions which resulted in further price increases later in the quarter. Page 979. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis V CURRENT LABOR STATISTICS Current Statistics of Labor Interest in Selected Periods 1 [Available in reprint form] J—,----1946 Item Unit or base period O ctober 1945 S e p te m A u g u st ber O cto b er 1939: A verage for y ea r Employment and unemployment Civilian labor force (BC): T otaL ............ Thousands. M ale..... ...................................... - ........... ------do____ Female.......... .......................................... ........do_____ Employed 3________________ _____ ____do____ M a le ................................................ ........do.......... Female..................................... ....... ........do____ Nonagr ¡cultural---......................... ........ do____ A gricultural.-............................— ____do____ Unemployed........................................... ____do____ M ale__......................... - .................. ........do_____ Female........................... .................. ........do_____ Civilian employment in nonagricultural establishments: T o ta l3__________ ........do____ M anufacturing____ ______ ________ ____do____ M ining_________________ ________ ____do____ Construction *___ ____ ______ _____ ____do____ Transportation and public utilities. _ ........do____ Trade..................................... - ................ ........do____ Finance, service, and miscellaneous. ------do____ Federal, State, and local govern ment, excluding Federal forceaccount construction........................ .d o . .d o . Military personnel_________ _________Production-worker employment: _doManufacturing....... ............................... _do. Bituminous-coal m ining__________ Class I steam railroads, including sala -do. ried employees (IC C )................. - ........... _do. Hired farm workers (B A E )....................... 59,310 42,140 17,170 57,360 40, 600 16,760 48,840 8, 520 1,950 1,540 410 59,440 42,170 17,270 57,370 40, 590 16,780 48, 630 8,7 4 0 2,0 7 0 1,580 490 60,000 42,830 17,170 57,960 41,250 16, 710 48,830 9 ,130 2 ,040 1,580 460 53,110 34, 590 18, 520 51, 560 33,660 17,900 42,770 8 ,790 1, 550 930 620 3 54, 230 3 40, 950 3 13,280 3 46,930 3 35, 600 3 11,330 3 37,430 3 9, 500 3 7,3 0 0 3 5,350 3 1,950 40, 250 14, 761 825 2 ,085 3 ,988 8 ,034 5,208 40,129 14, 731 827 2,103 3,948 7,918 5,155 39,871 14, 583 828 2,091 4,001 7,8 1 4 5,160 36,327 13,048 718 1,006 3 ,825 7,331 4,698 30,353 10,078 845 1,753 2,9 1 2 6,618 4,1 6 0 5, 350 2 ,488 5,447 2, 501 5 ,3 9 4 2 ,812 5,701 11,519 3,9 8 8 367 12,021 334 12,016 335 11,882 337 10, 450 262 8,1 9 2 371 1,376 2, 624 1,362 2, 777 1,371 2 ,786 1,397 2 ,4 9 4 988 3 3 ,2 8 0 40 .4 40 .3 4 1 .4 4 0 .9 3 8 .7 4 0 .5 4 2 .4 4 1 .5 3 8 .2 4 1 .6 « 42 .3 6 40. 4 38 .7 37 .7 27.1 43 .0 3 2 .6 $45. 41 $61.00 $33.76 $58.49 $44.98 $62.37 $33.81 $56. 67 $40. 97 « $52.73 « $29.17 $54.05 $23.86 $23.88 $21.17 $30.39 $1.126 $1.480 $0.906 $1,510 $1,111 $1,468 $0.891 $1,482 $0.985 8 $1. 261 8 $0. 792 $1,396 $0.633 $0.886 $0.536 $0. 933 $1.091 $1,075 8 $0.945 $0.622 $1,093 $1,078 8 $0. 942 $0,640 $ 4 .39 3 $ 1 .5 7 Hours and earnings Average weekly hours: Manufacturing............................. ....... Bituminous-coal mining............ ......... Retail trade_____ ___________ ____ Building construction (private)-----Average weekly earnings: M anufacturing...................................... Bituminous-coal mining..................... Retail trade____ ____ ____________ Building construction (private)........ Average hourly earnings: M anufacturing...................................... Bituminous-coal m ining-................. Retail trade____________________ _ Building construction (private)____ Average straight-time hourly earn ings in manufacturing, using— Current employment by indus t r y - ............................. ............... Employment by industry as of January 1941_______________ Quarterly farm wage rate, per day w ithout board (B A E )....................... Industrial injuries and labor turn-over Industrial injuries in manufacturing per million man-hours worked........ ............ Labor turn-over per 100 employees in manufacturing: Total separations........ ....................... Q uits..........................- .................... Lay-offs............................................ Total accessions..................................... Labor-management disputes Work stoppages beginning in month: N u m b e r ................................... ............ Number of workers involved............. All work stoppages during month: Number of man-days idle_________ Man-days idle as percent of avail able working tim e............................. See fo o tn o te s a t end o f tab le. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Hours. ........do. ____do. ........do. 3 8 .8 $45. 68 $59. 20 $1.130 $1. 526 $4.94 - « 18 .3 15.4 17 .0 1 8 .5 6 .1 4 .6 1 .0 6 .7 6 .9 5 .3 1 .0 7 .1 6 .6 5 .3 0 .7 7 .0 8 .6 5 .6 2 .3 8 .6 » 2 .9 8 0 .9 8 1 .8 8 5 .9 Thousands... 450 290 450 380 500 235 474 551 218 98 ____d o ............ 4 ,500 5,000 3,425 8,611 1,484 0 .6 0 .8 0 .5 1 .4 0 .2 8 VI current labor s t a t is t ic s Current Statistics of Labor Interest in Selected Periods— Continued 1946 Item U nit or base period '4945 October Septem August ber October 1939: Average for year Prices Consumers’ price index (moderate-income families in large cities): All it e m s ____________________ ___ Food___________ . . Clothing?_______________ . R e n t _______ . . . ______ Fuel, electricity, and ice _ ______ Housefurnishirigs___ . . Miscellaneous___. . . . . Retail food price index (large cities): All foods____________ . . . . Cereals and bakery products______ M eats. __ ___ Dairy p ro d u cts____ _ .. Eggs------------------------------------------Fruits and vegetables . Beverages__ . . . . . . . . . Fats and oils___ ___ Sugar and sw eets____ Wholesale price index: All commodities A ll commodities other than farm products___ ___ _ A ll commodities other than farm products and foods_______ Farm products___________ Foods___ _______ 1935-39=100 1935-39 = 100... 1935-39 = 100.__ 1935-39-100 1935-39=100... 1935-39 = 100. _. 1935-39=100... 1935-39 = 100. __ 1935-39=100... 1935-39=100.._ 1935-39=100... 1935-39 = 100. __ 1935-39 = 100... 1935-39=100... 1935-39 = 100.._ 1935-39=100... 1926 = 100_____ 148.4 180.0 167.0 144.1 171.2 161.2 128.9 139.3 148.5 99.4 95.2 100.5 114.4 167.6 130.8 145.9 174.1 165.9 108 8 114.4 165.6 129.9 113.7 160.0 129.8 110.5 146.9 124.7 99.0 101.3 100.7 180.0 138.5 8 190. 7 202.4 214.6 176.5 166.5 147.9 167.5 134.1 174.1 137.3 188.5 186.6 193.3 176.4 162.0 151.4 141.5 124.0 171.2 135.4 186.6 180.1 173.6 178.3 126.6 180.3 140.3 129.1 139.3 109.1 131.0 133.3 185.5 172.5 124.7 124.0 126.5 105.9 95.2 94.5 96.6 95.9 91.0 94.5 95.5 87.7 100.6 77.1 101.0 79.5 105. .7 81 3 66 3 70.4 1926-100 127.1 117. 2 121.9 1926 = 100 1926=100 1926-100 115 7 165. 3 157 9 112. 2 154. 3 131.9 111 fi 161 0 149.0 $14,763 $14,317 $13, 481 $13, 531 7 $95 480 $8,803 7$30 165 $8,199 $8,556 185 192 146 56,000 184 191 149 51, 080 180 186 147 54,830 164 171 125 39,192 100 109 106 32,905 149 24, 388 149 22,788 145 23,669 128 21,464 («) 20,188 4,200 18,805 3,983 19, 515 4,154 17,662 3,802 $1, 229 $1, 250 $1, 244 $542 National income and expenditures National income payments (BFDC)___ M illions_____ Consumer expenditures for goods and services (B FD C ) ____do______ Retail sales (B F D C ).. ___ $7^ 124 3 $6, 327 7 $16 466 $3’ 748 « Production Industrial production index, unadiusted (FR): T otal______ ___ Manufactures. __ _____ Minerals Bituminous coal (B M ). _. . Car loadings index, unadjusted (FR) Electric energy (FPC ): Total 1935-39 = 100... 1935-39=100... 1935-39 = 100. __ Thousands of short tons. 1935-39=100... M i l l i o n s of k w .-h r. U tilities (production for public use). ____do_______ Industrial establishments______ 101 « 11,637 (8) Construction Construction expenditures. . . Value of urban building construction started__ . . . . . . New nonfarm fam ily dwelling units $332 59, 500 $341 $412 65,800 82,100 s $645 (9) 30,100 8 42,900 1 Source: Bureau of Labor Statistics unless otherwise indicated. Abbreviations used: BO (Bureau of the Census); ICC (Interstate Commerce Commission); BAE (Bureau of Agricultural Economics); B FD C (Bureau of Foreign and Domestic Commerce); FB (Federal Reserve); B M (Bureau of Mines); FPC (Fed eral Power Commission). M ost of the current figures are preliminary. 2 10-month average—March to December 1940—not comparable with later figures. Revisions are in proc ess. 3Excludes employees on public emergency work, these being included in unemployed civilian labor force. Civilian employment in nonagricultural establishments differs from nonagricultural employment in civilian labor force mainly because of the inclusion in the latter of such groups as self-employed and domestic and casual workers. 4 Includes workers employed by construction contractors and Federal force-account workers (nonmain tenance construction workers employed directly by the Federal Government). Other force-account and nonmaintenance construction employment is included under manufacturing and other groups. s October. 6 September. 7 Second quarter. 8 Estimated from available data. Meat shortages again severe in some cities. 9 N ot available. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW DECEMBER 1946 State and Regional Variations in Prospective Labor Supply 1 LABOR, business, and government groups engaged in labor-market analysis or concerned with problems of maintaining high levels of employment need some quantitative measure of prospective labor supply in their particular States or regions. An estimate of the total number of persons who will be working or seeking work provides a framework for the analysis of a variety of social and economic prob lems relating to employment, industrial location, marketing, housing, and social security. This article contains basic information on long term trends and wartime developments in labor-force growth which will assist in the preparation of such an estimate for each of the 48 States.2 The prospective 1950 labor force in each State under three different assumptions as to postwar labor supply developments is shown in table 4 (page 870). Anticipated labor-force changes between 1940 and 1950 range from an increase of 25 to 45 percent on the Pacific Coast to a decrease of 1 to 5 percent in the West North Central States. Two types of data are presented here for use in estimating the size of each State’s labor force in 1950, a year when short-run dislocations of the postwar transition period are expected to be over. First, the base figure shown is the “normal” labor force in 1950— the work force that would have been expected if peacetime trends in labor-market participation and interstate migration had continued after 1940 and if economic conditions similar to those of 1940 had prevailed. The normal estimates, although not predictions of the actual size of the labor force in each State, provide a basis from which realistic estimates may be made. They also highlight differences in State and regional patterns of labor-force growth which are not likely to change in the near future. Second, data are presented on the wartime changes in the labor force of each State. This material will aid in estimating the extent to which the actual size of the labor force in 1950 may differ from the normal level. 1 Prepared by Lester M . Pearlman and Leonard Eskin in the Bureau’s Occupational Outlook Division. Sophia C. Mendelsohn and Mary J. Levy assisted in the formulation of estimating procedures and super vised the statistical operations. 3 More detailed data and a description of the technical procedures used to obtain the estimates presented here will appear in’a forthcoming bulletin of the Bureau of Labor Statistics. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 851 852 M ONTHLY LABOR REVIEW— DECEMBER 194 6 , Normal Growth of the Labor Force 1940 to 1950 NATIONAL CHANGES A brief examination of normal labor-force projections for the Nation as a whole between 1940 and 1950 shows a number of broad trends in population growth and labor-market participation which operate in all States. In addition, the national trends serve as a background against which State and regional variations can be studied. T able 1.— "Natural” and "Normal” Labor-Force Growth, by State, 1940 to 1950 1 Region, division, and State Labor force, 1940 2 (in thousands) (1) “Natural’ labor-force projection, 1950 3 “Normal’ labor-force projection. 1950 * Number (in thousands) Percent of change from 1940 Number (in thousands) Percent of change from 1940 (2) (3) (4) (5) U N IT E D ST A T E S. 54,778 60,830 11.0 60,830 N O R T H -..................... 32,627 35,289 8.2 34,618 6.1 N ew England___ 3,757 4,082 8.6 4,062 8.1 343 215 147 1,917 335 800 384 234 161 2,077 366 860 12.0 8.8 9.5 8.3 9.3 7.5 373 242 157 2,033 367 890 8.7 12.6 6.8 6.1 9.6 11.2 12,249 13,233 8.0 13,074 6.7 6,188 1,928 4,133 6,571 2,065 4,597 6.2 7.1 11.2 6,501 2,098 4,475 5.1 8.8 8.3 11, 203 12,086 7.9 12,109 8.1 2,865 1,379 3,485 2,202 1,272 3,089 1,494 3,697 2,418 1,388 7.8 8.3 6.1 9.8 9.1 3,071 1,516 3,677 2,495 1,350 7.2 9.9 5.5 13.3 6.1 M aine____ ____ _ N ew Hampshire. Vermont_______ M assachusetts.... Rhode I sla n d __ Connecticut____ M iddle A tlantic. N ew York___ N ew Jersey__ Pennsylvania. East North Central. Ohio........... In d ia n a ... Hlinois___ M ichiganWisconsin. West North Central. 11.0 5,418 5,888 8.7 5,373 - 0 .8 1,142 992 1,579 244 248 519 694 1,242 1,069 1,698 277 279 569 754 8.8 7.8 7.5 13.5 12.5 9.6 8.6 1,218 1,007 1,599 214 221 463 651 6.7 1.5 1.3 -1 2 .3 -1 0 .9 -1 0 .8 -6 .2 16,303 19,314 18.5 19,104 17.2 7,249 8,625 19.0 8,844 22.0 119 797 358 1,072 657 1,388 763 1,277 818 128 879 380 1,256 791 1,736 966 1,577 912 7.6 10.3 6.1 17.2 20.4 25.1 26.6 23.5 11.5 140 948 413 1,307 767 1,716 951 1,538 1,064 17.6 18.9 15.4 21.9 16.7 23.6 24.6 20.4 30.1 East South Central- 4,050 4,833 19.3 4,645 14.7 K entu ck y.. Tennessee.. A labam a... M ississippi. 1,037 1,114 1,058 841 1,217 1,308 1,300 1,008 17.4 17.4 22.9 19.9 1,171 1,266 1,229 979 12.9 13.6 16.2 16.4 M innesota___ Iowa_________ Missouri_____ North DakotaSouth Dakota. N ebraska..___ Kansas.............. SO U T H . South Atlantic. Delaware...................... Maryland..................... District of Columbia. Virginia........................ W est Virginia........ . North Carolina........... South Carolina............ Georgia...................... . Florida.......................... See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 853 VARIATIONS IN PROSPECTIVE LABOR SUPPLY T able 1.— "Natural” and "Normal” Labor-Force Growth, by State, 1940 to 1950 1— Continued Region, division, and State Labor force, 1940 3 (in thou sands (1) SO U T H —Continued. W est South Central_______ _______ “Natural” labor-force projection, 19503 “Normal” labor-force projection, 1950 * Number (in thou sands) Percent of change from 1940 Number (in thou sands) Percent of change from 1940 (2) (3) (4) (5) 5,004 5,856 17.0 5,615 12.2 Arkansas............................ .................. Louisiana____ _____________ — Oklahoma............. ............................... Texas__________________________ 704 919 834 2,547 827 1.082 983 2,964 17.5 17.7 17.9 16.4 764 1,088 820 2,943 8.5 18.4 - 1 .7 15.5 W E ST ______________ __________ _______ 5,848 6,227 6.5 7,108 21.5 M ountain__________________________ 1,580 1,797 13.7 1,856 17.5 Montana_______________________ Idaho_____ _______________ _____ W yoming............ - ______ _________ Colorado_________________ _____ N ew M exico_____ ______ _____ Arizona................................................. U tah___________ _______________ N evada______ __________________ 233 198 104 437 184 187 187 50 250 223 115 481 229 222 226 51 7.3 12.6 10.6 10.1 24.5 18.7 20.9 2.0 240 237 119 489 243 255 213 60 3.0 19.7 14.4 11.9 32.1 36.4 13.9 20.0 Pacific___________ _________________ 4,268 4,430 3.8 5,252 23.1 W ashington____________________ Oregon.................................................. C alifornia........................................... 742 470 3,056 765 487 3,178 3.1 3.6 4.0 843 559 3,850 13.6 18.9 26.0 1 Data presented in this table cover total labor force including armed forces. All data at April seasonal level. Annual average for total United States is about three-fourths of a million higher. 3 Data from 1940 census have been revised upward for comparability with current census series. Pre liminary, pending release of official revision of United States total by Bureau of the Census. 3 This projection assumes (1) continuation of prewar trends in the percentage of the population that works or seeks work; (2) economic conditions in 1950 similar to those of 1940; and (3) no interstate migration between 1940 and 1950. < Assumption (1) and (2) same as above, but interstate migration between 1940 and 1950 assumed to be twice the 1935-40 volume. Estimates of normal labor force for the United States have been constructed by projecting 1920 to 1940 relationships between popula tion and labor force through the decade 1940-50.3 The decennial increases in the labor force and population from 1920 to 1940 and the normal increase from 1940 to 1950 are shown in the following tabu lation: Increase (in thousands) 1920-80 Population, 14 years of age and over: Total_________ 14, 957 Male__________________________________________ 7, 134 Female________________________________________ 7, 823 Labor force: T otal,________________________________ 1 Male__________________________________________ 1 Female_________________________________ 1 7,359 5,110 2,249 1930-40 1940-50 (normal) 12, 002 9, 205 5, 466 3, 920 6, 536 5, 285 5, 895 6, 052 3,276 2,570 2,619 3,482 1 Since data for 1920 are not available on a “labor force” basis, the 1920-30 change refers to “gainful workers.” 3 Labor-force projections for the United States as a whole appearing in this article represent preliminary revisions by the authors of estimates prepared by the Bureau of the Census and published in Population, Special Reports, Series P-44 No. 12, Bureau of the Census (Washington), June 12, 1944. The revisions are designed to be consistent with current Census estimates which are based on a revised interviewing procedure adopted in July 1945. See Bureau of the Census, M onthly Report on the Labor Force, especially M R L F N o. 39, September 20, 1945. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 854 M O N T H L Y LABOR RE V IE W — DECEM BER 1 9 4 6 Despite the expected decline in the rate of population growth and an assumed continuation of past trends toward longer schooling and earlier retirement, the projected increment to the labor force during this decade is somewhat larger than the increase recorded during the 1930’s. The long-term trend toward an increasing number of women work ers is the major factor supporting the large normal labor-force growth during the current decade. Over the years, it has been possible for a larger proportion of women to work outside the home because of greater mechanization of household and industrial processes, increasing urbanization, decline in the birth rate, and social attitudes more favorable to the employment of women. On the basis of peacetime expectations, the national labor force in 1950 would number about 60.8 million persons—43.6 million men and 17.2 million women.4 STATE AND REGIONAL VARIATIONS The rate of expansion of the national labor force during the decade 1940—50 represents the net effect of widely varying rates among the States. Differences in the birth rate and interstate migration play the leading roles in causing these variations. Differential Fertility and Natural Labor-Force Growth In the absence of migration, the South would be expected to have the fastest growing labor force in the Nation between 1940 and 1950. This is attributable to the high birth rates which prevail in the predominantly rural Southern States. Rural areas throughout the country have significantly higher fertility rates than urban areas. Regional differences in the ^natural” rate of labor-force growth 5 are as follows: Natural growth in the labor jorce, 1940-50 (percent) United States________________________________ North___________________________________ South_______________________________ West___________________________________ H g jg 6 In the broad region called the South,6 the labor force of only two States, Delaware and Maryland (which are not typical of the other Southern States), would be expected to grow at a slower rate be tween 1940 and 1950 than the 11-percent natural increase anticipated for the Nation as a whole (table 1, column 3). The labor force in 4 All data presented in this article cover total labor force including the armed forces. Projections are made at April seasonal level (the time of year when the decennial census is usually taken). On an annual average basis, the United States total labor force would be about three-fourths of a million higher. 5 The natural rate of labor-force growth is here defined as the projected rate of growth, assuming no interstate migration. 6 Regional classifications used in this article are the same as those used by the Bureau of the Census. See tables for States included in each region. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis VA RIATIONS I N PRO SPECTIV E LABOR S U P P L Y 855 North Carolina, South Carolina, Georgia, and Alabama would be expected to grow more than twice as fast as the national labor force. In 24 out of 32 States in the North and West, the natural rate of laborforce growth would fall below the corresponding rate for the Nation. The lowest rates of labor-force growth in the country would prevail in the geographic division embracing the trio of Pacific Coast States— California, Oregon, and Washington. In every State the natural rate of increase in the labor force is very much greater for women than for men. This reflects the increasing participation of women workers as well as the declining proportion of boys and older men in the labor force. In the absence of interstate migration, the number of male workers in the Pacific Coast States, Nevada, and the District of Columbia would be expected to decline between 1940 and 1950, but these decreases would be more than offset by gains in the number of women workers. Replacement rates.—Thus far natural labor-force growth has been dealt with only in terms of net changes between 1940 and 1950. But these net changes result from differences between the number of persons who enter the labor market and the number who leave. The accessions to and separations from the labor force are analyzed in this section, not only to indicate their magnitude, but also to highlight State differences in the competitive position of new entrants to the labor market. The analysis is confined to male workers because the movements of women in and out of the labor market are complicated by changes in marital and family status. Areas of relatively high birth rates and comparatively young popu lation will have more new workers entering the labor force and fewer older workers leaving than areas where the population is relatively old. In the South, for example, some 3,895,000 young men (exclusive of in-migrants) would be expected to enter the labor force between 1940 and 1950, whereas only 2,321,000 would leave because of death or retirement.7 (See table 2, columns 1 and 2.) This means an average of 168 accessions for every 100 separations—a replacement rate of 168. In other words, if there were no migration into or out of the South, every 100 men leaving that region’s labor force between 1940 and 1950 would be replaced by 168 new male workers. This rate is much higher than the rates for the North (118) or the West (107). Replacement rates for individual States tend to cluster about the regional average (see chart 1), but there are some exceptions, such as New Mexico, Arizona, and Utah, where replacement rates more nearly resemble those of the South than those of the West. On the other hand, the pattern of labor-market accessions and separations in Delaware, Maryland, District of Columbia, and Florida is more like the North than like the South. 7 Figures exclude accessions and separations of seasonal or intermittent workers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 856 M ONTHLY LABOR REVIEW— DECEMBER 194 6 The differences in the relation between labor-market accessions and separations are reflected in the composition of the labor force at any one time. If there were no interstate migration between 1940 and 1950, 28 percent of the South’s male labor force in 1950 would have less than 10 years’ labor-market experience as compared with 24 per cent in the North and 23 percent in the West. In South Carolina, one out of every three men in the 1950 labor force would be a new worker added after 1940; in California the corresponding figure would be only one out of every five. T able 2. —"Natural” and "Normal” Accessions, Separations, and Replacement Rates for the Male Labor Force, by State, 1940 to 1950 “Natural” 1 Region, division, and State “Normal” 3 Replace Replace ment rate Accessions3 Separa ment rate Accessions Separa (accessions (accessions (in thou (in thou tions (in tions 3 (in per 100 per 100 sands) thousands) sands) thousands) separa separa tions) tions) (2) (1) (4) (3) (5) (6) U N IT E D ST A T E S________ 10,974 8,404 131 10,974 8,404 131 N O R T H _____________ _____ 6,033 5,102 118 6, 250 5,818 107 N ew E ngland............ ......... 664 566 117 740 653 113 M aine_______ ______ N ew Hampshire____ Vermont____________ M assachusetts..- . . . Rhode Island______ Connecticut________ 72 39 30 332 58 133 57 35 25 287 47 115 126 111 120 116 123 116 84 56 39 379 74 186 75 48 36 362 62 148 112 117 108 105 119 126 M iddle Atlantic........ ......... 2,150 1,819 118 2,332 2,126 110 N ew York__________ N ew Jersey_________ P enn sylvan ia............. 983 321 846 911 277 631 108 116 134 1,158 430 913 1,151 364 780 101 118 117 East North Central_____ 2,109 1,797 117 2,470 2,143 115 Ohio_________ ____ _ Indiana_____ _______ Illinois_____________ M ichigan___________ Wisconsin.......... ........... 547 277 588 436 261 471 234 541 339 212 116 118 109 129 123 664 368 764 577 293 602 307 735 424 271 110 120 104 136 108 W est North Central_____ 1,110 920 121 1,138 1,326 86 Minnesota.................... Iowa_______________ Missouri____ ____ North D ak ota......... ... South Dakota ______ Nebraska___________ Kansas_____________ 227 207 296 61 59 113 147 188 175 259 43 42 90 123 121 118 114 142 140 126 120 278 243 369 54 56 113 171 254 256 404 83 84 169 222 109 95 91 65 67 67 77 SO U TH ___________________ 3,895 2,321 168 4, 219 2,781 152 South Atlantic__________ 1,654 988 167 2,021 1,178 172 Delaware___________ Maryland _________ District of Colum bia.. V ir g in ia ........ .............. West Virginia__ North Carolina______ South Carolina______ Georgia.......................... Florida_____________ 21 145 40 248 186 364 201 298 151 18 114 43 151 100 172 94 167 129 117 127 93 164 186 212 214 178 117 36 236 115 355 210 408 226 356 305 25 154 101 211 142 224 129 242 176 144 153 114 168 148 182 175 147 173 See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 857 VARIATIONS IN PROSPECTIVE LABOR SUPPLY T able 2.— "Natural” and "Normal” Accessions, Separations, and Replacement Rates for the Male Labor Force, by State, 1940 to 1950— Continued “Normal” 1 ‘Natural” 1 Region, division, and State Replace Replace ment rate ment rate Accessions1 Separa Separa Accessions (accessions (accessions (in thou tions 3 (in (in thou tions (in per 100 per 100 thousands) sands) thousands) sands) separa separa tions) tions) (2) (1) SO U T H —Continued. East South Central_____ 1,034 595 (6) (5) (4) (3) 174 1,096 789 139 170 167 191 167 305 316 298 234 226 238 214 168 135 133 139 139 K entucky---------------Tennessee. ________ Alabama_____ _____ M ississippi_________ 271 271 282 210 159 162 148 126 West South Central-------- 1, 207 738 164 1,306 1,018 128 Arkansas__ _____ . . Louisiana______ ____ Oklahoma...... ... ........... Texas___ _________ 189 220 217 581 114 133 131 360 166 165 166 161 219 272 226 712 192 177 267 505 114 154 85 141 W E ST ................ ................ ......... 1,046 981 107 1,830 1,130 162 144 580 418 139 72 61 36 128 52 56 48 21 99 143 128 118 175 177 133 129 M ountain ____________ 371 256 47 48 22 91 54 46 55 8 41 34 16 73 26 28 29 9 115 141 138 125 208 164 190 89 71 87 46 151 91 99 64 27 P a c ific ________________ 675 725” 93 1,393 855 163 W ashington_____ _ Oregon ___________ California--------------- 126 79 470 137 83 505 92 95 93 247 178 1,063 194 128 628 127 139 169 M ontana______ _ Id a h o _________ W yoming__________ Colorado___ ____ ___ N ew Mexico________ A rizon a__________ U ta h --........................... Nevada_____________ i Assumes no interstate migration between 1940 and 1950. » Assumes interstate migration between 1940 and 1950 to be twice the 1935-40 volume. 3 United States, regional, and divisional totals are less than the sum of their components because they exclude accessions and separations due to migration between States within the United States, region, or division. State variations in replacement rates should not be interpreted without reference to variations in economic opportunity. A State with a rapidly expanding economy may easily absorb 200 replace ments for every 100 persons leaving the labor force, whereas a less fortunate State might have difficulty providing employment oppor tunity for say 110 replacements. Given equal employment oppor tunity for two States, however, jobs would be harder to find in the one with the higher replacement rate because on the average more workers would be competing for each job opening. The difficulty of finding jobs would be greatly accentuated in a State with both a relatively high replacement rate and relatively low employment opportunity. Actually, the areas with the highest replacement rates and the greatest rates of natural labor-force growth tend to be the ones where economic opportunity is below par. This disparity between labor https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 858 NATURAL REPLACEMENT RATES FOR THE MALE LABOR FORCE 1940-1950 ASSUMING NO INTERSTATE MIGRATION https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis r ? ] 160 AND OVER M O N T H L Y LABOR R E V IE W ---- D ECEM B ER 1 9 4 6 A C C E S S IO N S P E R 100 S E P A R A T IO N S VA RIATIONS IN PRO SPECTIVE LABOR S U PP L Y 859 supply and economic opportunity has resulted in a consistent pattern of internal migration. The South and Great Plains characteristically have been losers in the give and take of population between regions. The West, on the other hand, has been able to draw large numbers of people from other regions of the country, while losing few. The effect of large-scale migration on State variations in labor-force growth is shown in the next section. Internal Migration and “Normal” Labor-Force Growth Because of the extreme importance of population movements to the supply of labor in a given State, the estimates of “normal” labor-force growth include an assumption with respect to interstate migiation. For this purpose, the rate of interstate migration between 1935 and 1940 was projected through the decade 1940-50. The “normal” labor force for each State, therefore, consists of a projection of migra tion movements as well as trends in labor-market participation. In the procedure employed no attempt was made to estimate the actual magnitude of migration. But the prewar population movements do reflect a migration pattern that prevailed during the war and is likely to carry over into the postwar period.8 Since these normal labor force estimates by State assume a prewar migration pattern, there is also implicit the assumption that the prewar distribution of employment opportunity will not shift radi cally. In view of the past stability in the geographic distribution of economic resources and opportunity, both in years of war and peace, there is a strong likelihood that this distribution will not change significantly in the next 5 years. Estimates of normal labor-force growth and replacement rates between 1940 and 1950 by State and region including allowance for interstate migration are shown in tables 1 and 2. The introduction of the prewar migration pattern exerts great influence on the State and regional rates of labor-force growth as a comparison of these rates with those computed on a no-migration basis readily indicates (see chart 2). s See Demographic Aspects of World War II: Migration. Paper delivered before the American Socio logical Society (Cleveland, Ohio, March 1, 1946), by Henry S. Shryock, Jr., and Hope Tisdale Eldridge. It should be reemphasized at this point that the so-called normal labor-force projections assume economic conditions similar to those of 1940. Their main function is to serve as a base upon which more realistic projections can be made and not to estimate the size of the labor force under ideal economic conditions. This is especially true with regard to the migration assumption. The 1935-40 experience was chosen simply because (1) it reflected a general pattern that has prevailed in the past and is likely to continue in the future, (2) the time reference is close to the 1940 conditions to which the “normal” projections apply, and (3) there are more data available on the characteristics of migrants during the 1935-10 period than during any other ^ O n this subject see National Resources Committee, Structure of the American Economy, Philadelphia, 1939- Is Industry Decentralizing? by Daniel Creamer, Philadelphia, 1935; Growth of American Manufac turing Areas, by Glenn E. McLaughlin, Philadelphia, 1935; Regional Distortions Resulting from the War, in Survey of Current Business, October 1943, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 860 EFFECT OF MIGRATION ON NORMAL LABOR FORCE GROWTH I 9 4 0 ~ 1950 SOUTH A N D GREAT PLAINS, WHERE N A T U R A L GROWTH OF L A BO R FORCE OUTSTRIPS O P P O R T U N IT IE S FOR EMPLOYMENT, SUPPLY LABOR TO EXPANDING W E S T COAST PERCENT W ITHOUT M IGRATIO N https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WITH “N O RM AL MIGRATION NORMAL MIGRATION BASED ON 1935-1940 MIGRATION RATE IN OUT F e m o r e than 2 .5 % g l | M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 PROJECTED LABOR FORCE GROWTH VARIATIONS IN PROSPECTIVE LABOR SUPPLY 861 Although the West has the slowest rate of natural increase in working population, the great inflow of migrants causes this region to have the fastest growing labor force in the Nation. California’s rate of labor-force growth increases from 4 percent to 26 percent when allowance is made for migrant workers. The South, which had the highest rate of natural labor-force growth, runs second to the West when the migration factor is taken into account. Perhaps the most striking effect of migration on labor-force growth is shown in the Great Plains States where the labor force will actually decline between 1940 and 1950, if the exodus of workers equals or exceeds the prewar rate. And the heavy migration from this region during World War I I 10 leaves little doubt that by the end of this decade there will be in fact fewer workers in the area from North Dakota to Oklahoma than there were in 1940. Wartime migration, although creating some new local problems of overcrowding and expansion of populations beyond the peacetime capacities of local economies to support them, was in general a movement from areas of low or declining opportunity to more favorably situated places. However, there is typically not enough migration from areas of low economic opportunity to drain off the surplus labor supply. Many workers are reluctant to leave familiar surroundings and family ties. The uncertainty and fear attending migration are reinforced by its cost. This is particularly significant, for it is precisely those who should move who usually lack the means to do so. Added to these factors is the general ignorance as to where employment opportunities lie. The war stimulated migration not only because new job oppor tunities arose but also because they were dramatized and publicized to an unusual degree. There has been a noteworthy trend toward the development of industry in areas of surplus labor supply. During recent decades, for example, industrialization of the South has been proceeding more rapidly than in the country as a whole. Nevertheless, it appears that the resulting shift in the distribution of employment opportunity has been relatively small. Internal migration will have to continue if all workers are to be afforded useful employment opportunities.11 Factors Determining Deviation of Labor Force from Normal 1950 , The 1950 labor force in a given State may differ from a normal based on projection of prewar trends for two principal reasons: (1) the proportion of the population that works or seeks work may it See Bureau of the Census, Population, Special Reports, Series P-46, N o. 3 (Washington), February 12, 1946. Migration data for the war and prewar periods will also be presented in the forthcoming bulletin referred to in footnote 2, p. 851. u see Internal Migration and Full Employment, in Journal of the American Statistical Association, September 1945. 722250— 46-----2 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 862 M O N T H L Y LABOR RE V IE W — D ECEM BER 1 9 4 6 differ from that yielded by the normal projections; and (2) the actual volume of interstate migration may deviate from the assumed volume. National labor-force growth will be affected primarily by only the first of these factors; State labor-force growth will be influenced by both factors, but principally by the second. T able 3.—Estimated Deviation of Labor Force From "N o r m a l b y State, A pril 1945 1 [In thousands] Deviation of estimated labor force from “normal” Region, division, and State Estimated “Normal” actual labo labor force force 2 projection3 Total Caused by Caused by “abnormal’ participa tion of migra “extra” tion « workers (1) (2) (3) U N IT E D ST A T E S____ 65,986 58, 000 « 7,986 0 7,986 N O R T H _________ 38, 619 4,838 60 4, 778 N ew England_______. . (4) (5) 4,386 3,926 460 58 402 M aine._____ N ew Hampshire____ Vermont __ _____ Massachusetts Rhode Island_________ Connecticut______ _ . 398 229 147 2, 225 387 1,000 358 227 151 1,985 354 851 A(\ 2 -4 240 33 149 11 13 46 51 12 10 206 20 103 Middle Atlantic__________ 14,069 12, 737 1,332 -8 4 1,416 N ew Y o r k -..-_______ N ew Jersey.-.. Pennsylvania _______ 6,920 2,339 4,810 6,378 2,028 4,331 fMO 311 479 -154 0 696 241 479 13,883 11,705 2,178 258 1,920 /UD 324 Ann 391 124 -3 3 582 295 560 293 190 QAO -172 1,040 -8 6 -6 6 8 -1 7 0 24 210 167 284 42 38 106 193 East North Central . .. Ohio __________ Indiana ___. . . Illinois ___ . . . . Michigan_____________ Wisconsin____ . . West North Central __ M innesota____ _____ Iowa____________ Missouri ____ North Dakota________ South D akota. _____ Nebraska . . . ____ Kansas_____ ____ SO U T H ____ South Atlantic________ D elaw are_____ Maryland_____________ District of Columbia______ Virginia. . . __________ West Virginia___________ North Carolina_________ South Carolina___ Georgia __________ Florida_________ East South Central Kentucky. ___ T ennessee.______ _ Alabama. Mississippi______ See fo o tn o tes a t end o f tab le. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3,689 1,776 4,200 2, 747 1,471 1,452 3, 600 2,356 1,314 6,281 5,413 1,308 1,103 1,865 254 257 602 892 10A 1,589 231 236 496 675 101 OQ 91 inn 91 7 -1 4 40 19,660 1,930 -440 2,370 8 868 ÖU1 -5 4 855 3 11 131 46 156 146 142 87 86 50 144 1,087 510 1,399 800 1,574 884 1,465 1,005 130 874 387 712 1,553 859 91Q 123 ono OQ 21 25 938 0/ 4,705 4,350 355 1,162 1,349 1,302 892 1,103 1,191 oy 913 ioy Zl 77 52 -5 8 -121 44 17 oor ¿¿o 580 -109 12 -2 1 -8 3 168 170 180 62 863 VARIATIONS IN PROSPECTIVE LABOR SUPPLY T able 3.— Estimated Deviation of Labor Force From "Normal,” by State, A pril 1945 1— Continued [In thousands] Deviation of estimated labor force from “normal” Region, division, and State Estimated “N ormal” actual labor labor force projection3 force 2 (1) (2) Total Caused by Caused by “abnormal” participa tion of migra “extra” tion 4 workers (3) (5) (4) SO U TH —Continued. West South C entral.. ______________ 6,087 5,313 774 -161 935 Arkansas_______ - ---------------Louisiana ______ . ------- -----Oklahoma___- -- ----------------Texas _________________________ 826 1,054 944 3,263 733 1,003 830 2,747 93 51 114 516 -8 2 -1 1 -7 1 3 175 62 185 513 W E ST ________________________________ 7,707 6,489 1,218 380 838 M o u n ta in ______. . . _ _____________ M ontana-------------- -----------------Idaho _____________________ W yoming______________________ Colorado____. . - . ---------------N ew Mexico _________________ Arizona.. ____________ _______ U tah________________ _________ Nevada ______________________ 1,848 247 217 118 493 202 259 245 67 1,719 237 217 112 463 213 221 201 55 129 10 0 6 30 -1 1 38 44 12 -5 7 -3 1 -3 0 -6 -1 5 -2 9 23 23 8 186 41 30 12 45 18 15 21 4 Pacific ___________________________ W ashington_____- _____ ________ Oregon.. . . ___________ . California. ___________________ 5,859 1,028 624 4,207 4, 770 796 515 3,459 1,089 232 109 748 437 78 33 326 652 154 76 422 1 Data presented in this table cover total labor force including armed forces. 2 Includes members of armed forces in States from which they were inducted. Preliminary, pending release of Bureau of the Census official estimate of United States total on basis comparable w ith current census series. 3 Assumes interstate migration between 1940 and 1945 to be equal to the 1935-40 volume. 4 Estimate includes only migrants who would be in labor force on basis of prewar patterns of labor-market participation. A ny migrants who were in the labor force in April 1945 but who would not have been workers under normal peacetime conditions are counted in column 5. 5 Revised slightly from United States total of 8.1 million published in M onthly Labor Review for November 1946. Analysis of the differential impact of the war on the labor force of each State gives insight into the probable postwar deviation of the actual labor force from normal. The wartime expansion of the Na tion’s labor force to a level approximately 8 million above peacetime expectations was distributed very unevenly among the States. The extent to which these State variations in wartime excess of labor force over normal were caused by differences in degree of recruitment of new workers and by “abnormal” migration is shown in table 3. The two factors may supplement one another or offset each other. For example, the fact that California’s wartime labor force exceeded normal by approximately 750,000 workers resulted from the larger than usual inflow of migrants as well as from the more complete utiliza tion of its prewar labor supply. In contrast, outmigration of large numbers of North Carolina’s working population offset the “extra” workers drawn into its labor force, so that very little increase over normal took place. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis i 864 M ONTHLY LABOR REVIEW— DECEMBER 194 6 The degree to which wartime change in the labor force of a given State came about through migration rather than through more extensive utilization of the resident labor supply will play a major role in determining the future size of the State’s labor force. In general, the effects of migration are likely to [be more lasting than the effects of drawing extra workers into the labor force from the resident population. EXTRA WORKERS Some indication of the extent to which extra workers will remain in the labor market may be obtained by examining the picture for the Nation as a whole. During the war, some 8 million persons who ordinarily would have been housewives, students, retired men, or others not in search of gainful employment were drawn into the Nation’s labor force.12 These included about 4 million youths of school and college age, % million young women aged 20-34; 2 million women over the age of 35; and 1%million men over 25. Two-thirds of the wartime excess labor force caused by the prema ture entrance of school- and college-age youths into civilian jobs or the armed forces has already disappeared. Further reductions in the number of young workers are expected within the next few years as the prewar trend toward staying in school longer is resumed. With favorable employment opportunities, however, the teen-age labor force may be expected to continue somewhat higher than a projection of prewar trends would indicate, because a greater number of students will probably take advantage of opportunities for part-time and summer work. About 1K million young women aged 20-34 years quit working during the first year of peace, chiefly because their husbands returned from the armed forces or they married returning veterans. The number of young women workers is now actually below the level expected from prewar trends because of the unusually large numbers of marriages and births since 1940. Continuation of a generally high rate of economic activity would keep the number of young women workers below the level anticipated by the normal projections because young women with family responsibilities would not have to work or seek work to the same extent as in 1940. Among men over 25 years old and women over 35, the wartime ex pansion in the labor force was a response to a full-employment situa tion as well as to the Nation’s war needs. Jobs were available to those who had previously been considered virtually unemployable and others who had previously preferred retirement or homemaking were th p Jp ? C0“ Plete discussions of the characteristics of extra wartime workers and the factors affecting Mnn0i r T eil labu0r'market paxtieiPation- see Sources of Wartime Labor Supply in the United States m M onthly Labor Review, August 1944; “Extra” Workers in the Postwar Labor Force, in M onthly Labor S o v e m b e fig « 1 '^ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The> bori Force ¡ - « F i r s t Year of Peace, in M onthly Labor l * Z , VARIATIONS IN PROSPECTIVE LABOR SUPPLY 865 brought into the labor market by tbe availability of attractive work at good pay. As long as employment opportunities remain substan tially better than those of 1940, the number of workers in the middle and upper age groups is likely to exceed the level indicated by a pro jection of prewar trends, though not to the same extent as during the war. When the surplus of middle-aged and older workers is balanced against the deficit of young women workers, however, it is likely that the national labor force will not exceed normal by more than 1% million, or 2 to 3 percent, in 1950. Thus, in most States, the carry over from the more complete utilization of labor supply during the war will probably be relatively small. In some States, however especially those with a large proportion of older men and middle-aged women in the labor force—failure to take account of the extra workers remaining may result in a fairly significant understatement of the avail able labor supply. INTERSTATE MIGRATION The extent to which the rate of interstate population movement be tween 1940 and 1950 will differ from the 1935-40 rate assumed in the normal estimates presented here is far less predictable than the extent to which wartime extra workers will remain in the labor market. Al though the 'pattern of wartime migration was very similar to that which had prevailed for some time before the war, the volume of 1940-45 civilian migration alone was considerably greater than that of total migration for the 5 prewar years used to compute the ‘‘normal” estimates. The effect of this relatively heavy civilian migration in causing the labor force of each State to deviate from the assumed normal in 1945 is shown in table 3. The deviations from normal arising from mi gration are much more likely to persist through 1950 than are the deviations caused by the participation of extra workers during the war. Of course, there will be State variations in the extent to which gains and losses through “abnormal” migration are retained. Under certain circumstances the gains and losses may be not merely retained but increased. Whether deviations from normal because of migration are increased, retained, or decreased between 1945 and 1950 will depend on the net result of several opposing forces. The pent-up migration plans of servicemen have been a major force exerting an upward pressure on the volume of postwar migration. The estimates of actual labor force in April 1945 (table 3) include armed forces in their State of origin, and there may have been con siderable migration of ex-servicemen following demobilization. Ac cording to an Army survey in the summer of 1944, 1 out of every 10 servicemen did not intend to return to the State in which he lived be~ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 866 M O N T H L Y LABOR REV IEW — D ECEM BER 1 9 4 6 fore the war.13 The survey further indicated that the migration of demobilized servicemen would be expected to follow the pattern of prewar and wartime movements of civilians. If employment is maintained at the current high levels, migration will be further stimulated. There is typically more net interstate population movement in good times than in bad. The existence of opportunity elsewhere generally creates a stronger impetus for mi gration than the lack of opportunity at home. And in times of depression, the relative security of even a bare subsistence on a farm may be more attractive than the insecurity of going jobless in the city. Moreover, during depression periods there is considerable move ment from cities back to farms which is against the prevailing direction of migration. This tends to hold down the net interchange of popu lation between States. In view of the large volume of unemployment that existed during the period 1935-40, the volume of migration during that period (used as a basis for the “normal” estimates) is probably below par for more prosperous times. On the other hand, migration between 1945 and 1950 may be slowed down by virtue of the large-scale movement during the first half of the decade. The capacity of certain areas to absorb in-migrants may be glutted, at least temporarily, by the tremendous inflows of population during the war. In addition, overexpansion of population in relation to postwar opportunities may cause some reverse migration. The occurrence of a severe depression would also retard the character istic flow of population from farm to industrial areas. On balance, if conditions of high employment prevail, the volume of migration between 1945 and 1950 will probably equal or exceed the volume assumed in the “normal” estimates. Even if the rate of migration were to fall below the “normal” rate, during the second half of the decade, the decline would probably not nearly offset the unusually large flow of migrants between 1940 and 1945. In either case, therefore, the volume of migration for the entire decade, 1940-50, would exceed that based on the prewar experience; allowance for this factor should be made when adjusting the “normal” labor-force estimates for 1950. , State Estimates of the Labor Force 1950 As indicated in the introductory paragraphs of this article, the State estimates of normal labor-force growth and wartime deviations from normal will aid in evaluating the prospective labor supply in each State. The insight which this material provides, however, should be supplemented by other information that is available on the work force of the individual States. 13 See Postwar Migration Plans of Army Enlisted M en, in The Annals of the American Academy of Political and Social Science, March 1945. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis VA RIA TIO N S I N PRO SPECTIVE LABOR S U P P L Y 867 Table 4 presents three separate estimates of the 1950 labor force in each State, based on the data presented in tables 1 and 3, but computed on the basis of varying assumptions as to future interstate migration movements. (See p. 870.) In order to demonstrate the manner in which the data presented in tables 1 and 3 can be used to appraise the wartime experience and postwar prospects of the labor force in individual States, two States with substantially different labor-market characteristics have been selected for more detailed analysis. Assumption B, table 4, is used for purposes of illustration, but it is not necessarily the most reasonable assumption for the particular States involved. IOWA In 1940, approximately 992,000 Iowans were working or seeking work. Wartime pressures brought the labor force (including armed forces personnel from the State) to a total of 1,103,000 in April 1945— an 11-percent rise. Nevertheless, by 1950, the work force is expected to number less than 970,000—actually below the 1940 level. The wartime expansion in Iowa’s working population represented the net effect of several opposing forces. The main reason for the rise in the labor force was the increased participation of housewives, students, retired persons, and others normally not working. Approxi mately 167,000 of these “extra” wartime workers entered in response to unusual labor demands. This number was supplemented by about 42,000 entries that would have been expected from natural population growth and continuation of prewar trends in the percentage of the population that works or seeks work. The total inflow of 209,000 into the labor market during the war was partially offset by a net migration from the State of 98,000 civilian workers who might other wise have participated in Iowa’s war effort. The end result was an increase of 111,000 in the labor force between 1940 and 1945. There is reason to believe, however, that the effect of the wartime out-migration will be more lasting than that of the wartime accessions. Many who left the State during the war are unlikely to return, unless a severe depression should strike the areas to which they moved. Iowa, being a farm State, has customarily exported labor to the ex panding industrial areas. Moreover, mechanization of farm processes has made it possible to plant and harvest larger crops with fewer workers. Between 1935 and 1940, the number of persons moving out of Iowa exceeded those moving in by 61,000, and between 1940 and 1945 the State sustained a net loss of an additional 228,000 civilians (including the 98,000 workers mentioned above). These figures do not include any members of the armed forces, originally from Iowa, who may have decided to settle in other States after their discharge. Iowa is likely to continue to lose population to other States, though to a lesser extent than during the war. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 868 M ONTHLY LABOR REVIEW— DECEMBER 194 6 Most of the extra workers drawn into the labor force from the res ident population of the State are likely to drop out by 1950. In the Nation as a whole, two-thirds of 8 million extra wartime workers quit the labor force during the first year of peace. It is likely that by 1950 those remaining will make up not more than 15 to 20 percent of the wartime total. Normally, the labor force in Iowa would be expected to grow from the 1940 level of 992,000 to a total of 1,007,000 by 1950. It seems likely, however, in view of the considerations noted above, that the work force in 1950 will be approximately 970,000. The tabulation which follows summarizes the derivation of the statistics used in the analysis of labor-force developments in Iowa. Number (in thousands) 1940 labor force__ __ 992 1945 labor force __ _ 1, 103 (1) normal labor force _ 1,002 (2) deviation from normal _ 101 (a) caused by participation of “extra” workers__ ______ 167 (b) caused by “abnormal” migra tion __ _______ -6 6 1950 labor force___ 966 (1) normal labor force____ 1,007 (2) deviation from normal _ -4 1 (a) caused by participation of “extra” workers_________ 25 (b) caused by “abnormal” migra tion_____ __ __ __ -6 6 Source Table Table Table Table 1. 3. 3. 3. Table 3. Table 3. 1 + 2 (below). Table 1. a + b (below). Assumed to be 15 percent of 1945 extra workers (2a above). Assumed same as in 1945 1 (see 2b above). 1 It is assumed that the net number of workers who move out of Iowa between 1945 and 1950 will be the same as would be expected on the basis of the 1935-40 experience. WASHINGTON In response to high wartime demands for labor, the working popula tion of the State of Washington increased by 286,000 between 1940 aud 1945 to a total of 1,028,000 (including armed forces personnel from the State). By 1950, the labor force is expected to number roughly 950,000, which is considerably above the 1940 level of 742,000, though short of the wartime peak. Several factors combined to cause the wartime expansion in Wash ington’s work force. Increased participation of housewives, students, retired persons, and others normally not working accounted for approximately 154,000 of the additional workers. In-migration of workers from other States resulted in a net gain of another 119,000. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 869 VARIATIONS IN PROSPECTIVE LABOR SUPPLY The remaining increment of about 13,000 workers is the gain that normally would have been expected from natural population growth and continuation of prewar trends in the percentage of the population that works or seeks work. It is likely that the great majority of the workers who moved to Washington during the war will remain in the State. Washington has typically been an importer of labor. Between 1935 and 1940, the number of persons moving into the State exceeded those moving out by 80,000. This movement was accelerated between 1940 and 1945 as the State gained an additional 273,000 civilians (including the 119,000 workers mentioned above) through in-migration. These figures do not include any members of the armed forces from other States who may have decided to settle in Washington after their discharge. Judging from the national experience and prospects, added partici pation of workers normally outside the labor force will not account for more than 2 or 3 percent of the 1950 labor force in Washington. On the basis of prewar trends, the labor force in Washington would have been expected to increase from 742,000 in 1940 to 843,000 in 1950. I t seems likely, however, in view of the increase during the war that the 1950 labor force will be approximately 950,000. The following tabulation outlines the derivation of the statistical material used in describing past and prospective labor-force changes in Washington. Number (in thousands) 742 1940 labor force---------------------------------------1945 labor force---------------------------------------- 1,028 796 (1) normal labor force------------------------232 (2) deviation from normal------------------154 (a) caused by participation of “extra” workers. 78 (b) caused by “abnormal” migra tion. 944 1950 labor force__________________________ 843 (1) normal labor force------------ ----------101 (2) deviation from normal-----------------23 (a) caused by participation of “ex tra” workers. (b) caused by “abnormal” migra tion. 78 Source Table Table Table Table Table 1. 3. 3. 3. 3. Table 3. 1 + 2 (below). Table 1. a + b (below). Assumed to be percent of 1945 tra workers above). Assumed same in 19451 (see above). 15 ex (2a as 2b i it is assumed that the net number of workers who move into Washington between 1945 and 1950 will be the same as would be expected on the basis of the 1935-40 experience. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 870 M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 T able 4. —Estimated Labor Force, 1940 and 1945, and Projections, 1950, Under Three Assumptions as to Volume of Interstate Migration 1 [In thousands] Estimated labor force Region, division, and State Projected labor force, 1950 4 1940 5 1945 3 Assump tion A Assump tion B Assump tion C (1) (2) (3) (4) (5) U N IT E D ST A T E S_______ 54, 778 65,986 62,028 62,028 62,028 N O R T H _______ 32,627 38,619 35,732 35,395 35,455 3,757 4,386 4,190 4,181 4,239 343 215 147 1,917 335 800 398 229 147 2,225 387 1,000 375 230 146 2,120 383 936 370 234 145 2,098 383 951 359 224 131 2 132 396 997 M iddle Atlantic________ 12,249 14,069 13, 281 13,202 13,118 N ew York____ N ew Jersey___ Pennsylvania____ 6,188 1,928 4,133 6,920 2,339 4,810 6,486 2,187 4,608 6,451 2,204 4,547 6, 297 2,274 4,547 11,203 13,883 12,644 12, 655 12,913 2,865 1,379 3,485 2,202 1,272 3,689 1,776 4, 200 2, 747 1,471 3,292 1,578 3,810 2,599 1,365 3,282 1,589 3,801 2,637 1,346 3,406 1, 618 3) 841 2' 735 1,313 N ew England_______ ___ Maine- _ _ ___ N ew H am p sh ire___ Vermont__________ _ Massachusetts__ . . Rhode Island_______ Connecticut _____ __ _ East North Central _ Ohio____ _______ Indiana _ ___ Illinois, ____ Michigan_______ Wisconsin______ W est North Central Minnesota Iowa_________ Missouri North Dakota _ South Dakota___ Nebraska_________ Kansas _ ___ _ SO U T H ________ South Atlantic. __ _ Delaware. M aryland________ District of Columbia __ _ _____ ._ V irginia... West Virginia__________ _ North Carolina... South Carolina _ _ Georgia__ _ __ _ _ Florida___ _______ East South Central Kentucky _____ T e n n e s s e e ..___ __ Alabama. __ __. M ississippi._ _______ West South Central __ Arkansas_____ __ _ Louisiana.. Oklahoma..- ___ _ Texas_________ __ See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5,418 6,281 5,617 5,357 5,185 1,142 992 1,579 244 248 519 694 1,308 1,103 1,865 254 257 602 892 1,176 996 1,683 232 238 536 756 1,164 966 1,634 ' 201 209 479 704 1,078 900 1,626 182 192 479 728 16,303 19,660 19,125 19,019 18,579 7,249 8,868 8,810 8,918 8,864 119 797 358 1,072 657 1,388 763 1,277 818 144 1,087 510 1,399 800 1,574 884 1,465 1,005 139 1,016 481 1,356 '743 1,626 910 1,526 1,013 145 1,050 497 1,382 '731 1,616 902 1,507 1,088 148 1 132 574 1,434 673 1 495 840 1,463 1,105 4,050 4,705 4,600 4, 507 4,282 1,037 1,114 1,058 841 1,162 1,349 1,302 892 1,111 1,300 1,270 919 1,087 1,280 1,235 905 978 1,268 1, 214 '822 5,004 6,087 5,715 5,594 5,433 704 919 834 2,547 826 1,054 944 3,263 739 1,083 859 3,034 708 1,086 '777 3,023 626 1,075 706 3,026 871 VARIATIONS IN PROSPECTIVE LABOR SUPPLY T able 4. — Estimated Labor Force, 1940 and 1945, and Projections, 1950, Under Three Assumptions as to Volume of Interstate Migration 1— Continued [In thousands] Estimated labor force Region, division, and State Projected labor force, 19504 1940 2 1945 3 Assump tion A Assump tion B Assump tion C (1) (2) (3) (4) (5) 5,848 7, 707 7,171 7,614 7,994 1,580 1,848 1,796 1,827 1,770 233 198 104 437 184 187 187 50 247 217 118 493 202 259 245 67 220 204 113 477 209 263 245 65 215 211 115 481 217 280 239 69 184 181 109 466 188 303 262 77 - __________ -. 4,268 5,859 5,375 5,787 6,224 W ashington____________________ _ _____ Oregon.-- _ _ ____ California_____________ _____ ___ 742 470 3,056 1,028 624 4,207 905 566 3,904 944 603 4,240 1,022 636 4,566 W E ST _______________________________ M ountain.. _ _ _ _ _ _ _ _______ M ontana______ ____ ______ ____ Idaho _ _________ - - W yom ing________ ___________ _ Colorado..___ - - ______ N ew Mexico - - - - - - - ______ Arizona-------------- --------------------U tah_________________ ____ ____ N evada_________ _____________ Pacific____________ 1 Data presented in this table cover total labor force including armed forces. All data at April seasonal level. Annual average for total United States is about three-fourths of a million higher. 2 From table 1, column (1). 3 From table 3, column (1). 4 All three projections assume that the 1950 labor force of each State will include some “extra” workers who would not be in the labor force on the basis of the prewar patterns of labor-market participation assumed in the “natural” and “normal” projections (table 1). Participation of “extra” workers in each State is assumed to be 15 percent of the wartime extra-worker total (table 3, column 5). All three projections take account of net civilian interstate migration between 1940 and 1945. None of the projections make allowance for migration from foreign countries between 1940 and 1950. Assumptions with respect to interstate migra tion between 1945 and 1950 are as follows: Assumption A . Whatever new interstate migration takes place between 1945 and 1950 will be offset by return of wartime migrants to their prewar States of residence so that interstate migration in the last half of this decade will have no net effect on the size of the labor force in each State. Assumption B. The net number of workers who move between States during the period 1945-50 will be the same as would be expected on the basis of 1935-40 experience. Assumption C. N et interstate migration of all workers between 1945 and 1950 will be equal to the net interstate migration of civilian workers between 1940 and 1945. Migration of workers on this scale during the second half of the decade could come about with a considerably smaller total population movement than occurred during the first half because wartime civilian migrants included large numbers of servicemen’s dependents and a relatively small proportion of men of working age. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Postwar Work Stoppages Caused by Labor-Management Disputes 1 DURING no period in the history of the United States have the scope and intensity of labor-management conflicts matched those recorded in the 12 months following VJ-day, August 14, 1945.2 In this time, the country experienced 4,630 work stoppages, directly involving about 5 million workers and resulting in almost 120 million man-days of idleness. Employment and production, except for temporary set backs, nevertheless forged ahead to establish new peacetime records. Unions, for the most part, retained their several million new members recruited in the war years and, in the aggregate, kept their organized strength at an estimated 14 to 15 million members. More than 10 million service men and women were demobilized during this transition period, and most of them were able to find jobs. Thousands of factories retooled to produce the necessities, conveniences, or luxuries of a civilian economy. Other factories, as well as many service trades, which had been curtailed by wartime stringencies, were on the road to prewar status. These developments, however, did not always proceed smoothly. Shortages of key matelials and, occasionally, of certain kinds of skilled labor occurred. Many work stoppages, in addition, left their imprint in delayed pro duction of commodities sought by American consumers. The direct effects of certain stoppages, particularly in the basic industries, were severe at times. The indirect effects upon plants and industries not involved in work stoppages were also serious, although statistically impossible of measurement. Both represented the price—or penalty— exacted in a shift from a highly controlled, emotionally disciplined “all-out” war economy to a freer, less inhibited way of life. With the end of the war, workers were faced with the abrupt curtailment of the production of thousands of military items. Many factories cut their scheduled hours from 48 or more a week to 40 and less. Others shut down temporarily or permanently. Wage earners, confronted with serious losses in “take-home” pay, sought to maintain their wartime earnings. Accordingly, union demands soon crystallized into requests for wage-rate increases of 30 percent—the approximate advance workers deemed necessary to preserve their former earnings’ 1 Prepared by the staff of the Labor-Management Disputes Division of the Bureau’s Industrial Relations Branch. J Perhaps the most comparable period is 1919. During that year 3,630 work stoppages, involving about 4.2 million workers, were recorded. Data are not available, however, on man-days of idleness. 3 See The Labor Force in the First Year of Peace (p. 669), and Readjustment of Veterans to Civilian Life (p. 712), in M onthly Labor Review, November 1946; and Veterans’ Return to the Nation’s Factories, p. 924 of this issue. 872 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis POSTWAR WORK STOPPAGES 873 Many employers, uncertain of the speed with which reconversion could be accomplished and opposed to the continuation of price and other wartime controls, expressed inability to meet the wage pro posals of organized labor. This conflict of economic interests between labor and management was further aggravated by the partial termination of stabilization restraints which had held the upward movement of the cost of living and of rates of pay within moderate bounds during the war years. Application of the Little Steel formula, whereby it was sought to confine increases in wage rates to a level not more than 15 percent above January 1941, prevented the abnormally high rates of pay which characterized some industries in World War I. Moreover, labor’s “no-strike” pledge, voluntarily given to the Nation a few days after Pearl Harbor (December 1941), imposed a considerable degree' of selfrestraint upon union leaders, who steadfastly insisted that strikes called by local union officials or by the rank and file should be termi nated immediately. The end of the fighting phase of the war ended organized labor’s no-strike pledge. Workers were free to exercise their traditional right to strike—if necessary—to secure what they considered their just demands. In thousands of cases adjustments were made without work stoppages, unions and management reaching an agreement among themselves through direct negotiation, and often with the assistance of State and Federal Government conciliators.4 In other instances the struggle reached the picket lines, with workers sacrificing savings and employers foregoing profits. To some, the fight seemed weighted against the wage earners as wartime legislation permitted employers to obtain from the Federal Treasury a refund of portions of their excess profits taxes to offset “losses” occasioned by subnormal earnings arising out of the idleness of their plants. To others, it appeared that the Government, through statements emphasizing the need to maintain a high level of purchasing power to cushion the shocks of reconversion, lent encouragement to the union’s wage demands. On the whole, both labor and employers wanted to be free to bargain across the conference table and, if necessary, to submit to a test of strength. These convictions were expressed by many representatives of labor and of management as the war neared its end and were reflected in Government policy as hostilities ceased. On August 16, 4 T he U . S. Conciliation Service of the Department of Labor aided in the settlement of 3,360 work stop pages during this 12-month period. About two-thirds (over 2,200) of these stoppages in which conciliators participated had begun before the aid of the Conciliation Service had been requested by the parties. More than 90 percent of the disputes in which conciliators entered negotiations at an early stage were settled w ith out any interruption of work. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 874 M ONTHLY LABOR REVIEW— DECEMBER 194 6 1945—less than 48 hours after VJ-day—President Truman announced that the National War Labor Board would be terminated soon after the conclusion of a forthcoming national labor-management con ference. The Board itself shortly thereafter made it clear that its task had been completed. During the war the Board had weathered numerous crises, but pressure for revision of the Little Steel formula, or outright abandonment of stabilization controls over wages, rose steadily in 1945. On August 18, President Truman issued Executive Order No. 9599 permitting wage increases without specific Govern ment approval, provided the increases would not serve as a basis for higher prices or added cost to Federal agencies purchasing goods or services from contractors. The stage was thus set for a return to “free” collective bargaining within the framework of existing price levels. The War Labor Board indicated it would consider only such controversies as the parties might voluntarily agree to submit to it. Prime reliance, it was stated, would be placed upon a greatly strength ened United States Conciliation Service of the Department of Labor to assist in reconciling differences between labor and management. Significant Stoppages Since V J-D ay The work stoppage involving the oil industry which began on Sep tember 17, 1945, was the first significant wage controversy of the reconversion period. It reflected most of the wage issues and led to the establishment of the fact-finding procedures which were to characterize a number of subsequent major stoppages. The strike involved about 43,000 refinery workers employed in 20 States. The principal demand of the Oil Workers International Union (CIO) was for 52 hours’ pay for 40 hours of work, the equivalent of a 30-percent wage increase. Direct negotiations and Government conciliation were not successful in preventing the stoppage, and arbitration, pro posed by the Secretary of Labor, was not accepted by the oil com panies, although favored by the union. With a third of the Nation’s gasoline supply cut off by the strike and shortages becoming acute, President Truman on October 4 ordered the Navy Department to seize and operate the refineries. Production was resumed shortly thereafter with no change in wage rates or hours of work. Weeks of negotiations between representatives of the union, the industry, and the Government proved fruitless, and on November 27, 1945, the Secretary of Labor appointed a fact-finding panel to review the issues and formulate recommendations for a settlement. Throughout the autumn of 1945, the number of strikes in effect and the resulting man-days of idleness climbed above the levels of the war years. A few days after the oil stoppage began, the United Clerical, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis POSTWAR WORK STOPPAGES 875 Technical, and Supervisory Workers Union, a part of District 50 of the United Mine Workers of America (not yet reaffiliated with the American Federation of Labor), struck to obtain recognition and collective-bargaining rights for mine foremen and other supervisory workers in and about bituminous-coal mines. The ensuing stoppage during the next several weeks affected more than 200,000 workers in the industry. The stoppage was terminated October 17, 1945, with a statement by the president of the United Mine Workers that “ future efforts to abate this controversy will be resumed at a later, more appropriate date.” Although the stoppage in the coal industry was relatively brief and did not involve the wage issues which characterized many of the major strikes, numerous other stoppages continued for months despite all efforts to reach settlement. Thus, for example, approximately 44,000 workers represented by the Lumber and Sawmill Workers Union, a part of the United Brotherhood of Carpenters and Joiners (AFL), stopped work in the forests and sawmills of the Northwest on Septem ber 24, and many continued on strike throughout the winter before a settlement of 15-cents-an-hour increase was reached. The Federation of Glass, Ceramic, and Silica Sand Workers of America (CIO) obtained from two large glass companies a wage increase of 10.7 cents an hour after a stoppage of 102 days. Machinists and shipyard workers in the San Francisco Bay area were idle for 140 days. Among the other large work stoppages from September to late November were those involv ing building-service employees and longshoremen in New York City, textile workers in New England, and Midwest truckers. Aware of the growing unrest throughout the country, the President addressed the Nation by radio on October 30 on the subject of recon version. He set forth the Government’s twin objectives of price stability and higher wage rdtes, and declared that wage increases were necessary “ to cushion the shock to our workers, to sustain adequate purchasing power, and to raise the national income.” At the same time, Executive Order No. 9651 was issued amending the order of August 18, 1945, by providing that the OPA could consider for price-relief purposes (under existing standards) unapproved wage or salary increases after such increases had been in effect normally for at least 6 months. This statement of national policy was expressed on the eve of the President’s National Labor-Management Conference, which brought together on November 5 representatives of organized labor and American industry. Early in the conference, President Murray of the CIO proposed adoption of a resolution urging labor unions and management to engage in “ genuine and sincere collective bargaining” on what Mr. Murray described as the “ all-important wage issue . . . which has created a very serious crisis for the Nation.” https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 876 M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 In introducing his resolution, Mr. Murray emphasized that, although wages were not a specific item on the agenda of the conference, current events demonstrated that the solution of procedural matters would not in any way solve the current unrest. The CIO, however, was not supported in its position. Toward the end of the sessions, in late November, the delegates approved a resolution declaring that the question of wages was not before it, but urged that a solution to the wage problem be sought through the processes of collective bargaining. FACT FINDING AND GENERAL MOTORS The Labor-Management Conference adjourned November 30 with out suggesting specific additional machinery which might be utilized to avert or minimize the effects of stoppages such as had occurred during the autumn. President Truman, in a message to the Congress on December 3, therefore urged enactment of legislation which would give him statutory authority to appoint fact-finding boards to consider such disputes which, in the opinion of the Secretary of Labor, would seriously affect the national public interest. The President’s request for fact-finding legislation came about 2 weeks after the beginning of what was to become one of the most prolonged and bitter stoppages of the reconversion period. On November 21, the United Automobile, Aircraft, and Agricultural Implement Workers of America (CIO), following weeks of unsuccessful negotiations, struck all the plants of the General Motors Corp. This stoppage involved approximately 200,000 employees in automotiveparts and assembly plants in 12 States. The union contended that the corporation’s ability to pay should be considered a major factor in determining the amount of the wage adjustment and asserted that the full 30-percent increase demanded could be paid without price relief. Company officials, however, insisted that prices and profits had to be excluded from the wage discussions. The President did not await action by Congress on his proposed fact-finding legislation and on December 14 appointed a board to investigate the UAW-General Motors dispute. The union rejected the President’s request to return to work pending findings of the board, but both parties indicated their willingness to present their case to the fact-finding board. On the crucial issue of ability to pay, which was also confronting the board appointed by the Secretary of Labor on November 27 in the controversy involving the petroleum companies, President Truman (on December 20) declared that “ ability to pay is always one of the facts relevant to the issue of an increase in wages.” The following day the board in the General Motors case announced that the “ ability to pay” would be considered as a relevant but not as a sole factor in its recommendations. A week later, representatives https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis POSTWAR WORK STOPPAGES 877 of General Motors withdrew from the hearings, stating that they would refuse to participate further so long as “ ability to pay is to be treated as a subject of investigation, fact-finding, and recommendations.” The board, nevertheless, proceeded with its investigation and on January 10, 1946, recommended a wage increase of 19% cents (about 17.5 percent) an hour. Two days later the fact-finding board in the oil case issued its report, recommending an 18-percent wage increase as the basis for settling this dispute. These fact-finding wage recommendations came on the eve of what was to be the severest period of postwar industrial unrest. Within the next 10 days over a million workers in steel, electrical manufacturing, meat-packing, and farm-equipment establishments stopped work in support of their demands for higher wages. Workers involved in strikes tripled in number, rising from slightly less than a half million to approximately 1.5 million. EVOLUTION OF A WAGE PATTERN (EARLY 1946) The largest of these stoppages was in the steel industry, which was brought to a standstill when approximately 750,000 workers, members of the United Steelworkers of America (CIO), stopped work on January 21, 1946, to enforce their demands for a wage increase of $2 a day. As was true of other large stoppages in which strikes were called only after the break-down of prolonged negotiations, the steel strike followed more than 3 months of intermittent negotiations and a strike poll conducted by the National Labor Relations Board under the provisions of the War Labor Disputes Act on November 28, 1945, in which the workers voted 5 to 1 in favor of a suspension of work. The initial demand of the union for an industry-wide increase of $2 a day, announced on September 11, 1945, was rejected by the major steel producers, who claimed that existing OPA ceiling prices for steel did not permit the companies to grant any wage increase. Offers of conciliation by the Secretary of Labor were rejected by industry representatives, who insisted that further negotiations would be futile until the OPA authorized an increase in steel prices. On Decem ber 31, 1945, 2 weeks before the announced date of the strike, President Truman appointed a three-member board to investigate the wage dispute and to determine whether an increase in steel prices would be justified. In an effort to forestall a work stoppage, direct negotiations were resumed on January 10. These followed conferences between repre sentatives of the steel industry and Government officials over revision in steel price ceilings. The union scaled down its demand to an in crease of 19% cents an hour—the amount recommended by the fact finding board in the General Motors case. The United States Steel 7 2 2 2 5 0 — 46 ------- 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 878 M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 Corp., the largest employer in the industry, offered an increase of 15 cents an hour provided price ceilings on steel were revised upward by the OPA. At this juncture, President Truman invited union and industry negotiators to the White House, meanwhile obtaining the union’s consent to a 1-week postponement of the strike. On January 17, after receiving an informal report from his steel fact-finding board, the President proposed a wage increase of 18% cents per hour as the basis of settlement. This proposal was accepted by the union but was rejected by spokesmen for the steel industry. The strike began on January 21, 1946. For the following 3 weeks both parties held their ground despite efforts of the Government to find an acceptable compromise. Furnaces were banked and steel output, which had been running at 80 to 85 percent of capacity, dropped to about 6 percent. Other industries, dependent upon steel, were forced to curtail or suspend operations. . The cumulative effects of the stoppages and unsettled disputes involving a number of basic industries became so great that by midFebruary the Government was forced to revise its wage-price stabiliza tion regulations. The President on February 14, 1946, issued Execu tive Order No. 9697, which permitted the National Wage Stabilization Board—the successor to the former National War Labor Board—to approve any wage or salary adjustment consistent with the general pattern of such adjustments established in the industry or local labormarket area between August 18, 1945, and February 14, 1946. Prior approval was also given to increases made in accordance with a governmental recommendation in a wage controversy announced before February 14, 1946. The following day (February 15) the United Steelworkers of America and the United States Steel Corp. signed an agreement accepting the President’s previously proposed wage increase of 18% cents an hour. The steel industry was also granted price relief, averaging $5 per ton. Settlement of the steel-wage controversy, together with revision of the Government’s wage-stabilization policy, facilitated the adjust ment of many disputes and stoppages then in progress. The specific provision in the President’s February 14 Executive order approving (from a stabilization angle) recommendations of fact-finding or arbitration boards which had reported prior to the issuance of the order gave an added measure of “solidity” to the conclusions of these boards. In the bitter controversy between General Motors and the auto workers’ union, UAW leaders, supported by the rank and file, continued to insist upon the full 19% cents recommended by the fact-finding board on January 10, despite a company proposal to settle for 18% cents. It was not until March 13 that the UAW compromised on the 18%-cent settlement. Although the board in the oil wage https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis POSTWAR WORK STOPPAGES 879 dispute had recommended an 18-percent wage raise on January 12, it was late February when most of the companies concluded agree ments with the Oil Workers International Union (CIO) and the Government returned the seized refineries to private operators. In the meat-packing dispute, approximately three-fourths of the industry was brought under the Government’s seizure order of January 24, which paved the way for the return of 125,000 workers (members of AFL and CIO unions) to their jobs a few days later. On February 7, the fact-finding board appointed by the Secretary of Labor in this controversy recommended a wage increase of 16 cents per hour. This increase was approved by the National Wage Stabilization Board on February 26, concurrently with authorization, by the Director of Economic Stabilization, of an increase in meat prices. That the steel formula did not provide an easy and quick solution in all wage controversies was demonstrated in the dispute of electrical workers with the Westinghouse Electric & Manufacturing Co. About 180,000 members of the United Electrical, Radio, and Machine Workers of America (CIO) stopped work on January 15 at about 75 plants of the General Electric Co., the electrical division of the General Motors Corp., and the Westinghouse Electric & Manufacturing Co. to enforce their demand for an increase of $2 a day. On February 9, the UERMWA accepted the offer of General Motors to settle for 18K cents an hour. It was not until March 14, however, that the union and General Electric agreed on a basic 18^-cent increase, and it was 2 months later (May 10) when the union and Westinghouse Electric & Manufacturing Co. agreed to an 18-cent increase with establish ment of a fund of 1 cent per hour per employee to adjust differentials between men and women. In the case of the United Farm Equip ment and Metal Workers of America (CIO), 25,000 workers became idle on January 21 in plants of the International Harvester Co. in Illinois, Indiana, Iowa, and New York. An agreement, providing for a wage increase of 18 cents an hour, was reached only after 86 days. Again, the strike of the International Union of Mine, Mill, and Smelter Workers (CIO) against the American Smelting and Refining Co., which started on February 25, ended in mid-June when the 18b-cent wage increase recommended by a fact-finding board appointed by the Secretary of Labor was accepted by both parties to the dispute. The wave of large-scale stoppages which began in late November 1945 with the UAW-General Motors dispute, reached its crest in February, when the direct loss of about 23 million man-days was recorded as caused by labor-management disputes. This represented 4.2 percent of the month’s estimated working time. The cumulative, indirect effects of the stoppages occurring during the period were even more severe, although not subject to measurement. Total https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 880 M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 production, as reflected by the index of the Federal Reserve Board, was about 10 percent lower in February 1946 than in the preceding September. Production indexes of specific commodities, such as steel ingots, refined copper, lumber, washing machines, and refrigerators, showed even more drastic declines. COAL AND TRANSPORTATION CONTROVERSIES Although the number of stoppages increased in March, and again in April, fewer workers were involved, and there was a substantial drop in time lost from the record-breaking peak of February. Of the large strikes which occurred in the spring, the most significant were those involving bituminous-coal miners and railroad engineers and trainmen. In soft coal, failure of the coal operators and the United Mine Workers of America (AFL) to negotiate a new agreement prior to the expiration of the existing contract, on March 31, 1946, resulted in an industry-wide stoppage, which continued from April 1 through May 29 except for a 12-day truce (May 13-25), during which the majority of the 340,000 miners worked. At the outset of the coal controversy, the UMWA filed the 30-day strike notice legally required under the War Labor Disputes Act and concentrated its demand upon the establishment of a health and welfare fund to be financed by the industry and administered by the union. Negotiations proceeded slowly during March and April, with the effects of the coal strike on the Nation’s reconversion program becoming increasingly serious. A month after the strike started, President Truman released a report of the Office of War Mobilization and Reconversion in which the coal dispute was termed a “ national disaster.” When both the union and the operators rejected Mr. Truman’s proposal to arbitrate, the President, on May 21, ordered Government seizure of the mines and their operation under the direc tion of the Secretary of the Interior. Despite this step, most miners stayed away from work and did not return until after May 29, when an agreement, to be effective during Federal operation of the mines, was signed by the Secretary of the Interior, Julius A. Krug, and John L. Lewis, president of the United Mine Workers. The principal terms provided for a wage increase of 18% cents an hour and a health and welfare fund to be financed by the levy of 5 cents per ton of coal produced for use or sale, the fund to be administered by three trus tees one selected by the union, one by the coal mines administrator, and the third by the other two. The settlement also served as the basis for terminating the anthracite controversy, which extended from May 31 to June 7. In the case of the anthracite fund, however, it was provided that two trustees would be selected by the union and the third, by the operators. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis POSTWAR WORK STOPPAGES 881 Shortly before the Government seized the bituminous-coal mines, the railroad-wage controversies reached their climax. Early in 1946,5 two groups of railroad unions, one representing firemen, conductors, and switchmen, and the other, 15 “nonoperating unions” (including shop-craft, maintenance-of-way, clerical, and other employees), agreed to submit their wage issues to arbitration. Two other unions, the Brotherhood of Locomotive Engineers (Ind.) and the Brotherhood of Railroad Trainmen (Ind.), declined to arbitrate. Thereupon, after a strike vote had been taken, the President, in early March, appointed a fact-finding board to consider the controversy of these two unions with the railroads. The two arbitration boards, on April 3, awarded the groups of railroad employees involved in the cases an increase of 16 cents an hour. On April 18, the fact-finding board in the engineers’ and trainmen’s case recommended a like amount. Phis board also had before it many involved proposals for changes in working rules submitted by both the unions and the railroads. Most of these pro posals were denied by the board. None of the three groups of unions was satisfied with the wage award. The Brotherhood of Locomotive Engineers and the Brotherhood of Railroad Trainmen also felt that the recommended revisions in working rules were inadequate; these two unions, therefore, laid plans to strike at the expiration of the 30day waiting period provided by the Railway Labor Act. Further negotiations under White House auspices failed, and on May 17 the President ordered seizure of the railroads and their operation under the direction of the Office of Defense Transportation. Shortly before the strike was scheduled to begin on May 18, the leaders of the two brotherhoods complied with the President’s request to postpone the threatened walk-out for 5 days. Negotiations were resumed in Washington involving all three groups of railroad unions. On May 22, the carriers and all the rail unions except the engineers and the trainmen accepted a compromise settlement for an 18&-centan-hour wage increase and a 1-year moratorium on changes in rules. The engineers and trainmen, however, rejected this settlement and at 4 p. m., May 23, withdrew from service, causing a complete Nation-wide tie-up of rail transportation, the first in the long history of the industry. On the night of May 24, the President spoke to the country by radio and requested the men to return to service. I he next day he addressed a joint session of Congress seeking emergency legislation which would give him power designed to prevent, for the immediate future, strikes which might have widespread effects on the Nation’s economy. Almost simultaneously with his appearance before Congress, union officials signed an agreement accepting the President’s proposal of May 22, and ordered their members to return to their jobs. Service was thus restored after the 2-day stoppage. * See Railway Wage Changes, 1941-46, in M onthly Labor Reveiw, September 1946 (p. 335). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 882 M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 The House of Representatives immediately passed the emergency bill the President had requested. The Senate, however, considered various amendments and adopted a modified bill. No action was taken in reconciling the two versions of the President’s proposal. The sentiment of Congress was such, nevertheless, that the bill introduced by Representative Case of South Dakota, which had been before Congress during the spring and vigorously opposed by labor, was revised and approved by both Houses. President Truman, vetoed the Case bill on June 11, explaining that permanent legislation should not be enacted hastily and should be preceded by a careful study of the causes of industrial disputes. The railroad controversy was the last of the stoppages involving over 100,000 workers which occurred during the period under survey. Another threatened transportation strike, involving nearly 200,000 members of the Committee of Maritime Unity, composed of six CIO unions and one unaffiliated union, was averted by a settlement made less than an hour before the strike deadline of June 15. After negotia tions had come to an impasse in this dispute, the Secretary of Labor summoned representatives of the unions and ship operators to meet in Washington on May 29 for further conferences under his direction. The War Shipping Administration (the Government agency which owned many of the vessels) subsequently entered the negotiations and, just prior to the scheduled strike date, directed all WSA general agents or their representatives to accept proposals calling for a wage increase of $>7.50 a month, certain reductions in basic hours, and arbitration of other issues. These terms formed the basis of the agreements which were adopted by the seagoing unions and their employers. The longshoremen’s union, in turn, accepted the report of a fact-finding board which had recommended a wage increase of 22 cents an hour for West Coast longshoremen. By the end of June 1946 the round of “reconversion” strikes, which were predominantly over the wage issue, had come to a close. The final month-and-a-half of the first postwar year was a period of price uncertainty characterized by numerous but relatively small disputes. During the year as a whole, the national wage-price policy was modi fied first in late October 1945 and then more drastically in mid-Febru ary 1946. Fact-finding boards as a substitute for the National War Labor Board were found to be not always entirely successful, and Government seizure had to be resorted to in certain cases as a method of resolving some conflicts. Thus, during the immediate postwar period, the early hopes for a rapid return to free collective bargaining had not been realized. The Government, which had desired to re main in the background and gradually relinquish its wartime controls, had been forced to take an increasingly active part in the settlement of labor-management disputes. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 883 POSTWAR WORK STOPPAGES Statistical Summary 6 Some indication of the scope and severity of the work stoppages that began during the first 12 months after VJ-day can be obtained by comparison with two preceding periods—the 44 months from Pearl Harbor to the surrender of Japan, and the period 1935-39 (used as a base for many current statistical series). During the year following VJ-day, an average of 386 stoppages occurred each month as against 333 per month for the war period and 239 per month for 1935-39. On the basis of workers involved, there were, on the average, 415,000 in stoppages beginning each month in the first postwar year. This compares with monthly averages of 152,000 workers during the war and approximately 94,000 for 1935-39. The greatest divergence from earlier periods was, however, in the idleness which resulted from the stoppages. Between VJ-day and August 14, 1946, the amount of lost time, measured in terms of a monthly average for the period, amounted to almost 10 million man-days per month, as against a wartime figure of 0.8 million man-days per month and 1.4 million man-days per month over the 5 years 1935-39. T able 1.— Work Stoppages in the First Year After VJ-Day, in World War II, and in 1935-39 Period Work stoppages Period Number Workers involved Man-days idle Number Percent of estimated working time First postwar year (August 15, 1945-August 14, 1946): Total_______ ____ __________________ 4,630 4,981,000 119, 785,000 1.62 World War II: Total_______________________ December 8-31,1941____ ______ _____ 1942___________________________________ 1943____________________________________ 1944____________________________________ January 1-August 14, 1945_ _ 14,731 84 2, 968 3,752 4, 956 2,971 6, 744,000 16, 000 840,000 1,981, 000 2,116, 000 1, 791,000 36,301, 000 303, 000 4,183,000 13,501, 000 8, 721, 000 9, 593,000 .11 .06 .05 .15 .09 . 17 2,862 1,125,000 16,949, 000 .27 Yearly average, 1935-39___ ___ ______ 6 All known work stoppages, arising out of labor-management disputes, involving 6 or more workers and continuing as long as a full day or shift are included in reports of the Bureau of Labor Statistics. Fig ures on “workers involved” and “man-days idle” cover all workers made idle in establishments directly involved in a stoppage. They do not measure the indirect or secondary effects on other establishments or ¡i)du3tjies wjiose employees? are made idle §s a result of material or service shortages. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 884 M ONTHLY LABOR REVIEW----DECEMBER 194 6 WORK STOPPAGES AUGUST 1945 TO JUNE 1946 NEW STOPPAGES 600 600 500 500 400 - 400 300 - 300 200 - 200 - 100 100 AUG SEP OCT NOV DEC JAN FEB M AR APR MAY W ORKERS INVOLVED IN ALL STOPPAGES thousands JUN thousands 2000 2000 1500 - 1500 1000 1000 500 500 o AUG SEP OCT NOV DEC JAN FE B M AR APR MAY JUN APR MAY JUN M A N -D A Y S OF ID L E N E S S AUG SEP OCT UNITED STATES DEPARTMENT OF LABOR BUREAU OF LABOR ST AT IST IC S https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NOV DEC JAN FEB M AR 885 POSTWAR WORK STOPPAGES The above averages for the postwar period were, of course, greatly affected by the relatively large number of stoppages involving 10,000 or more workers. During the year following VJ-day, 42 such stoppages took place. These large strikes involved nearly 3,000,000 workers— substantially more than were involved in all stoppages in 1944, the peak war year. They resulted in over 85,000,000 man-days of idleness, or about 70 percent of the total idleness of the period. Eight stoppages involved as many as 100,000 to over 700,000 workers each. Two of these were in coal mining; the others were in automobile manufac turing, electrical machinery, meat-packing, communications, railroad transportation, and steel. All of the 42 large stoppages occurred in the 10% months from VJ-day to June 1946, during which time Government wage policies were adjusted and a general pattern of wage increases established. In this period there were, including the 42 disputes mentioned above, 436 work stoppages which involved as many as 1,000 workers each. These involved nearly 4 million workers and accounted for 104 million man-days of idleness—slightly more than 90 percent of the total lost time recorded for the period August 14, 1945, to June 30,1946. T able 2.— Work Stoppages From VJ-Day to June 30, 1946, by Size of Stoppage Workers involved Size of stoppage Number of stop pages Number Percent of total Man-days idle Number Percent of total T otal_________________ _____ _______ _____ 3,924 4,681,000 100.0 114,932,000 100.0 Under 500----------- ------------- --------- ............ 500 and under 1,000------ ----- ------ ---------------1.000 and under 5,000_____________________ 5.000 and under 10,000.......... ................ ............. 10.000 and over_____________ ___________ 3,124 364 351 43 42 474.000 249.000 683.000 281.000 2,994,000 10.1 5.3 14.6 6.0 64.0 5.061.000 5.854.000 13, 263,000 5.353.000 85,401,000 4.4 5.1 11.5 4.7 74.3 Unions affiliated with the CIO participated in slightly more than half (230) of the work stoppages of 1,000 or more workers occurring between VJ-day and June 1946, and accounted for almost two-thirds of all the idleness; those affiliated with the AFL were involved in about one-third of these work stoppages 7 and accounted for 27 percent of the total man-days of direct idleness. 7 Data referring to A FL work stoppages include disputes involving the United Mine Workers of America for the period following the union’s reaffiliation with the AFL in January 1946, but exclude the UM W A work stoppages from A FL totals for the earlier period covered by the survey when the miners were not affiliated w ith either A FL or CIO. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 886 M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 T able 3.— Work Stoppages of 1,000 or More Workers, V J-D ay to June 30, 1946, by Affiliation of Labor Organizations Involved Labor organization involved Number of stop pages Workers involved Number Percent of total Man-days idle Number Percent of total T o ta l... _ _________ 436 3,958, 000 100.0 104, 016,000 100.0 American Federation of Labor 1 Congress of Industrial Organizations Unaffiliated railroad brotherhoods Unaffiliated unions (other) 1_____ Other—miscellaneous 2_ _____ 142 230 3 50 11 888, 600 1,987, 000 361, 300 545,300 175, 980 22.4 50.2 9.1 13.8 4.5 28,069,000 66,878, 000 775,000 7, 095,000 1,199,000 27.0 64.3 .7 6.8 1.2 1 Data referring to A FL work stoppages include disputes involving the United M ine Workers of America for the period following the union’s reafhliation with the A FL in Janurry 1946 but exclude UM W A work stoppages from A FL totals for the earlier period covered by the survey when the miners were not affiliated with either A FL or CIO. 2 This category includes stoppages in which two or more unions of different affiliation were involved as well as stoppages which were confined to a single-firm union and to those in which no union was included. Wages were an important issue and, in most cases, the major con troversial factor in substantially over one-half of the 436 larger stoppages. Over 77 percent of all workers involved and about 86 percent of the man-days lost in the strikes of 1,000 or more workers centered around wage issues. By contrast, relatively few stoppages had as their major issue questions of union recognition, “security,” and other organizational problems. Still fewer stoppages (only 19) had as their central issue matters pertaining to labor rivalry either within a particular union or between two unions, such as jurisdictional controversies (table 4). On an industry basis, about 3 out of every 4 work stoppages involving 1,000 or more workers took place in manufacturing estab lishments. Among nonmanufacturing industries, the most strikes and resulting lost time between VJ-day and June 30, 1946, occurred in mining and in the transportation-communication field. T able 4.— Work Stoppages of 1,000 or More Workers, VJ-D ay to June 30, 1946, by Major Issues Major issue Number of stop pages Workers involved Number Percent of total Man-days idle Number Percent of total All issues_____________________ . . . 436 3,958,000 100.0 104, 016, 000 100.0 Wages and hours________________ _______ Wage increase___________ Other L _____ _____ Union organization, wages, and hours Recognition, wages, and/or hours______ Other_______ ______ . . . Union organization.. . . . . . R ecognition... . . . . . . Other_____ . . . . . . . Other working conditions Inter- or intra-union matters_________ 242 158 84 50 15 35 27 8 19 98 19 3,064,000 2,338, 600 725, 800 195, 900 35,500 160,400 277, 400 223,000 54, 400 319, 200 101,000 77.4 59.1 18. 3 4.9 .9 4.0 7.0 5.6 1.4 8.1 2.6 89,346,000 83, 526, 000 5,820, 000 7,403| 000 ' 829,900 6, 573, 000 3,958,000 3, 388,000 570,400 2,906, 000 403; 000 85.9 80.3 5.6 7.1 .8 6.3 3.8 3.3 .5 2.8 .4 i Includes stoppages involving adjustments of piece rates, incentive rates, wage classifications for new and changed operations, retroactive pay, holiday and vacation pay, payment for travel time, etc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T able 5.— Work Stoppages of 10,000 or More Workers in the First Year After V J-D ay Beginning date Approxi mate duration (calen dar days) Establishment (s) and location Union(s) involved Major terms of settlement Approxi mate number of work ers in volved 1H5 Sept. 3.. 22 ¡Sept. 4 Bept. 10. 19 Sept. 17. 20 Sept. 21. 30 Sept. 24. 6 Sept. 24. 4 Sept. 24. 0 Sept. 27. 13 Oct. 1_.- 3 Consolidated Steel Corp--------------- AFL craft unions________________ Orange, Tex. Goodyear Tire & Rubber Co_____ United Rubber Workers of America (CIO). Akron, Ohio. B. F. Goodrich Co., Akron, O hio.. . Foreman’s Association of America (Ind.). Westinghouse Electric Corp----------- Federation of Westinghouse Inde pendent Salaried Unions (Ind.). Maryland, Massachusetts, New Jersey, New York, Ohio, and Pennsylvania. Oil Workers International Union Oil refineries___ _________________ (CIO). 20 States. Bituminous-coal mines........................ United Clerical, Technical, and Supervisory Employees, District 8 States. 50, United Mine Workers of America (Ind.). Building Service Employees Inter M idtown R ealty Owners. national Union (A F L ). N ew York City. N ew York Shipbuilding Co...... ........ Camden, N . J. Northwest lumber industry----------California, Idaho, Montana, Ore gon, and Washington. Textile printing companies-----------Connecticut, N ew Jersey, N ew York, Pennsylvania, and Rhode Island. Consolidated Steel Corp-------- ------Los Angeles, Calif. Industrial Union of Marine and Shipbuilding Workers of America (CIO). Lumber and Sawmill Workers Union (AFL). Work resumed pending further company-union negotiations---- 11,000 Grievance adjusted by discharged employees’ return to work after a week’s lay-off w ithout pay. No change in company’s position that it would not recognize a foremen’s union as a bargaining agency. Stoppage arose over protest against War Labor Board’s denial of bonus plan for salaried workers. Employees returned to work upon assurance that War Labor Board would review its decision. Board later reaffirmed its denial. Wage increase of 18 percent--------------------------------------------------- 16,000 14.000 40.000 43.000 Request for union recognition of supervisory workers tempo rarily abandoned. 1 209,000 Protest against War Labor Board modification of recommenda tions of its panel board resolved by agreement to arbitrate. Workers subsequently obtained a reduction in their work week from 48 to 40 hours w ith no loss, in take-home pay. Grievance arising over discharge of 13 employees for alleged “loafing.” Settled by reinstatement of _5 workers and joint union-company review of eases of remaining employees. Wage increase of 15 cents per hour------- ---------------------------------- 15.000 17, 000 44.000 Federation of Dyers, Finishers, Printers, and Bleachers of Ameri ca (CIO). Wage increase of 10 cents per hour for men and 5 cents per hour for women. 16,,000 International Union of Operating Engineers (AFL) and Interna tional Association of Machinists (AFL). Jurisdictional dispute. Work resumed pending further neogtiations between representatives of unions concerned. 10, ooo POSTWAR WORK STOPPAGES 6 1 ¡Sept. 1 - 1 About 45,000 workers were idle by September 30. The remainder became idle during October. 2 Settlements reached with a few companies prior to December 1945. Majority of agreements signed by late December, with most of the remaining settlements, occurring at some time in the subsequent 3 months. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis GO QO T able 5. Beginning date Approxi mate duration (calen dar days) ft 00 00 oo ork Stoppages of 10,000 or More Workers in the First Year After VJ-Day— Continued T Union(s) involved Major terms of settlement General Motors Corp., Frigidaire Division. D ayton, Ohio. N ew York Shipping Association___ N ew York City; Hoboken and Newark, N . J. United Electrical, Radio and Ma chine Workers of America (CIO). Work resumed upon agreement that suspension of 4 workers would be considered under established grievance procedure and, if necessary, be referred to an impartial umpire. Men returned to work pending arbitration of issues. Subse quent award granted 20-percent wage increase, 40-hour work week, 8-hour day, time and one-half overtime. Union’s re quest for limitation on size of “sling load’’ denied. Wage increase of 10.7 cents per hour____________________ _____ Approxi mate number of work ers in volved 1945 Oct. 1 _ ____ 6 Oct. 1 _____ 19 Oct. 16_______ 102 Oct. 29_______ 2 Oct. 29............... 140 N ov. 1_______ 133 Textile m ills. Connecticut, Maine, Massachu setts, N ew Hampshire, and Rhode Island. Textile Workers Union of America (CIO). 2 Goodyear Tire & Rubber Co______ Akron, Ohio. United Rubber Workers of America (CIO). 81 M idwest Truck Operators Associa tion. 20 States. Leather manufacturers 15 States. Illinois Bell Telephone Co Illinois and Indiana. International Brotherhood of Team sters, Chauffeurs, Warehousemen, and Helpers of America (AFL). International Fur and Leather 1-day demonstration to emphasize demand for a 30-percent Workers Union (CIO). wage increase. N o immediate wage changes. Illinois Telephone Traffic Union Wage increase of $4 per week retroactive to M ay 9,1945. Addi (Ind.). tional $2 per week to be effective February 1, 1946. M axi mum of salary brackets to be reached in 8 years, instead of 9 years. United Automobile, Aircraft, and W age increase of 18)4 cents per hour_________________________ Agricultural Implement Workers of America (CIO). Maritime unions (C I O ).................... 1-day demonstration in protest against “ delay” in returning servicemen from overseas. Nov.[6...... ......... N ov.r12. ___ N ov. 1 5 . . ____ 1 N ov. 19______ 6 Nov. 21______ Dec. 3 .......... . Libbey-Owens-Ford Glass Co. and Pittsburgh Plate Glass Co. 7 States. Fires ton ft Tire & Rubber On Akron, Ohio. Machine shops, shipyards etc San Francisco B ay area, Calif. General Motors Corp 12 States. 0 1 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Steamship and stevedoring com panies. Pacific, Atlantic, and Gulf ports. 1 International Longshoremen’s Asso ciation (AFL). Federation of Glass, Ceramic, and Silica Sand Workers of America 12,000 30.000 13.000 (CIO). United Rubber Workers of America (CIO). International Association of Machin ists (AFL) and United Steelwork ers of America (CIO). Demand of maintenance employees for a 23-cents-per-hour wage increase refused; men returned to work. Wage increase of 17)4 percent obtained by United Steelworkers (CIO). Increase of 18 percent obtained by machine shop machinists (IA M ). Shipyard machinists (IAM) obtained an 18-cents-per-hour wage increase. Wage increase of 8 cents per hour, 65-cent minimum; third shift premium of 7 cents per hour and guaranteed base rate to piece work employees. Settlement also provided vacation with pay, added insurance benefits, maintenance-of-membership and union-security provisions. Maintenance employees had protested ruling of impartial um pire that company could schedule 8-hour shifts where needed. Men returned to work on order of union officials. Wage increases averaging 15 to 18 percent________________ ____ 15.000 37.000 18.000 15.000 10.000 25.000 14.000 200,000 13.000 MONTHLY LABOR REVIEW— DECEMBER 194 6 Establishment (s) and location 1946 Jan. 3________ 65 J a n .9________ 7 J a n .15_______ « J a n .16 ______ (•) Jan. 2 1 _____ . 86 Jan. 29_______ 29 Feb. 4________ (6) 2 Feb. 11_______ Apr. 1______ 59 Western Electric Co. Nation-wide. Western Electric Employees Asso ciation (affiliated with National Federation of Telephone Workers, Ind.). Association of C o m m u n ic a tio n Equipment Workers (affiliated with National Federation of Tele phone Workers, Ind.). Electrical workers-.............................. General Motors, General Electric, and Westinghouse plants. United Electrical, Radio, and Machine Workers of America (CIO). Packinghouse workers------- ---------Several States. United Packinghouse Workers of America (CIO) and Amalgam ated M eat Cutters and Butcher Workmen of North America (A FL). United Steelworkers of America (CIO). United Farm Equipment and Metal Workers of America (CIO). Steelworkers_____________ ______ Nation-wide. International Harvester Co_______ Illinois, Indiana, Iowa, and New York. Caterpillar Tractor Co Peoria, 111. American Brass Co, and Chase Brass Co. Connecticut and New York. Philadelphia Transit Co---------Bituminous-coal mines_____ _____ Industry-wide. do_____________ ____ ________ International Union of Mine, Mill, and Smelter Workers (CIO). Transport Workers Union of Amer ica (CIO). United Mine Workers of America (AFL after Jan. 1946). Wage increase of 18.2 percent. Retroactive for 5 weeks prior to March 9. 24,000 Equipment workers returned to work under union orders pend ing formal strike action by National Federation of Telephone Workers. March 9, wage increase of 5 cents per hour retro active to April 21, 1945, plus a 16.4-percent wage increase retroactive to February 2, 1946. Wage increases of 18)4 cents per hour for employees of General Motors and General Electric. Westinghouse workers ob tained 18-cent increase and 1-cent fund to adjust differentials between men and women. Wage increase of 16 cents per hour---- ------ ------------------------------ 142.000 Wage increase of 18)4 cents per hour. 750.000 Wage increase of 18 cents per hour... 25.000 Wage increase of 15 cents an hour for employees earning $1 an hour or less, and 15 percent for those earning more than $1 an hour. Maintenance-of-membership provision established with 15-day escape clause. Wage increase of 1814 cents per hour, with cash settlement of onehalf million-dollar compensatory bonus for wartime swingshift workers of American Brass Co. Wage increase of 12 cents per hour and strengthened maintenance-of-membership clause (preferential shop). Basie wage increase of 18)4 cents per hour. Establishment of welfare fund based upon 5-cents-per-ton levy on coal produced for use or sale. United Harbor Workers (AFL) withdrew their pickets. Sym pathy strikers returned to work. 17.000 180.000 125.000 16.000 10,000 340,000 18,000 United Harbor Workers (District 50, United Mine Workers of Amer ica, A FL ). Stoppage supported by CIO and A FL unions. 21,000 United Automobile Workers and Dispute not settled by August 14, 1946. Allis-Chalmers 8........... ..................— Apr. 30____ _ (7) Farm Equipment and Metal Massachusetts, Illinois, and Wis Workers (CIO). consin (4 plants). 8 Agreement reached on March 13, 1946; ratification by local unions, together with plant-production problems, delayed reopening of most plants until late in the month. A few Apr. 5________ 6 Port of Philadelphia......................... piant^cimtmued^idle into AK,1^ ctrical Division) settled on February 9, General Electric Co. on March 14, and Westinghouse Electric & Manufacturing Co. on M ay 10. ^ nnn s Settlement on February 15 with U. S. Steel Corp., followed by agreements with other large companies within 4 days, resulted in the return to work of approximately 450,000 employees. Virtually all the remaining 300,000 workers went back to their jobs at various dates during the next 2 months as additional settlements were reached. « Chase Brass Co. settled on April 6 and American Brass Co. on M ay 19. i Still in effect August 14, 1946. . _, . . . , . . ... , 8 Stoppages also occurred in the middle of March in three other plants (Indiana, Pennsylvania, and Ohio) involving approximately 4,000 workers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis POSTWAR WORK STOPPAGES Jan. 21____ 19 Western Electric Co_____ N ew Jersey and N ew York. OO 00 CO T able 5. Beginning date Approxi mate duration (calen dar days) Work Stoppages of 10,000 or More Workers in the First Year After VJ-Day—Continued Establishment (s) and location Major terms of settlement United Automobile, Aircraft, and Agricultural Implement Workers of America (CIO). Brotherhood of Locomotive Engi neers and Brotherhood of Railroad Trainmen (Ind.). A FL and CIO unions: General sym pathy strike. Work resumed following a 1-day stoppage in protest against the discharge of 4 employees over production-standard issue. Approxi mate number of work ers in volved 1946 M ay 3_______ 1 Briggs Manufacturing Co Detroit, Mich. M ay 23______ 2 Railroad industry. . . . Nation-wide. M ay 28______ 1 City of Rochester, N . Y . . M ay 31______ 8 Anthracite m in es_____ Industry-wide. United Mine Workers of America (A FL). June 3 _______ 3 June 10_______ 5 International Hod Carriers’, Building, and Common Laborers’ Union of America (AFL). Brotherhood of Railroad Trainmen (Ind.). June 27_______ 5 Association of General Contractors of America. Cincinnati, Ohio. Monongahela Connecting Railroad Co. Pittsburgh, Pa. Railway Express C o____ New York City; Hudson County, N . J. . Brotherhood of Railway and Steam ship Clerks, Freight Handlers, Express and Station Employees (A FL). » Includes workers in Jones & Laughlin Steel Corp. plant served by the railroad. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wage increase of 18\*> cents per honr 11, 000 350, 000- Statement by city officials that municipal employees might join any union of their choice which did not claim the right to strike against the public. Wage increase of 18)4 cents per hour and establishment of wel fare fund based upon 5-cents-per-ton levy on coal produced for use or sale. Wage increase of 15 cents per hou r... 20; 000 Employees returned to work following Government seizure of the railroad. » 10, 000 75,, 000 10,000 12, 000 M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 Union(s) involved OD POSTWAR WORK STOPPAGES 891 Work of the United States Conciliation Service Since V J -D a ys Almost simultaneously with the firing of the last gun in Japan, the bulk of mediating labor-management disputes fell upon the Con ciliation Service of the U. S. Department of Labor. For about 3 years prior to VJ-day the overwhelming majority of serious unsettled dis putes between management and labor were resolved by Government directives. After January 1, 1946, no agency existed which could order changes in contracts or adjudicate disputes over grievances, and although the authority to do so existed prior to that date it was not in fact used between August 17 and December 31, 1945. Since VJ-day, therefore, the settlement of all disputes has in the final analysis required mutual agreement between the parties affected. The emphasis upon direct negotiations, with a minimum of Federal control over labor controversies, resulted in a tremendous increase in the obligation of the U. S. Conciliation Service to secure final settle ment of conflicts on a voluntary basis, through collective bargaining between management and labor. The settlement of cases also became more difficult. During the war, increases in wages were limited by the various stabilization criteria established by the National War Labor Board. These limitations also served as standards for both manage ment and labor to be used in wage negotiations. Moreover, by using a uniform procedure in handling disputes over vacations with pay, night shift premiums, union security, and similar issues, the War Labor Board established standards which in effect set the limitations of collective bargaining on so-called “fringe” adjustments. With the end of WLB these standards were in great part entirely abandoned. Thus, the task of the Conciliation Service was greatly complicated. Voluntary mediation solutions, being far more difficult to evolve, re quire not only greater skill on the part of commissioners of conciliation but also more time and greater energy. Previously such solutions were formulated by the National War Labor Board and enforced under the wartime powers of the President. Now, the Conciliation Service has to resort to settlements by suggestions which may or may not readily be accepted by the parties. Since VJ-day the two major goals o;f the FT. S. Conciliation Service have been to prevent industrial conflict and to restore peace after a work stoppage has begun. The success of the Conciliation Service in reducing the area of industrial conflict is attested by the number of cases handled and closed by conciliators during the 12 months immediately following VJ-day. During that period Federal concilia tors aided in the peaceful settlement of more than 12,500 industrial disputes or 91 percent of the labor-management disputes in which i8 Prepared by the U . S. Conciliation Service of the Department .of Labor. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 892 M ONTHLY LABOR REVIEW— DECEMBER 194 6 conciliators entered into negotiations before a work stoppage had actually occurred. Unfortunately, however, the records of the Conciliation Service also indicate that two out of every three work stoppages had already begun before Federal mediation was requested by the parties. The future effectiveness of voluntary mediation in aiding free collective bargaining will, therefore, largely depend on the degree to which representatives of management and of labor voluntarily assume the responsibility of invoking the aid of the U. S. Conciliation Service before their negotiations reach the stage of complete collapse. T a b l e 6 . — Work Stoppages and Other Labor-Management Disputes Handled by U. S. Conciliation Service, VJ-D ay to August 15, 1946 Work stoppages Other labor-management disputes Month Number of cases Total: August 14, 1945-August 15, 1946____ August 14-31, 1945______ _______ __ September 1945___ _ _____. . . October 1945___ ______ ______ November 1945__________ . . . . . December 1945__________ ____ . . . January 1946_._ _________ ____ February 1946________________ March 1946__________________ April 1946____________ . M ay 1946___ ___________________ . . June 1946..... ................... ........ .................. July 1946___________________ _ August 1-15, 1946_____ _______ . . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Workers involved Number of cases Workers involved 3,360 2,660, 200 12, 581 5,166, 200 139 231 358 256 186 174 222 278 355 324 313 368 156 78, 500 70,000 272, 700 151, 000 118, 600 125,800 206,600 751,800 212, 000 118,000 200, 000 115,100 240,100 613 941 1, 278 1,038 1, 000 911 850 859 1,152 1,409 1,095 972 463 333,300 422,900 463,400 349, 400 419,900 408,200 328, 400 681,000 430,400 476,900 359,900 328,000 164,500 Productivity Changes Since 1 9 3 9 1 PRODUCTIVITY—the relationship between production and labor input—is one of the most significant factors affecting living standards, the relationship between changes in wages, costs, and prices, and em ployment levels. During the prewar period there were substantial gains in output per man-hour from year to year throughout the econ omy, and the present and future course of productivity is a matter of importance to all. In times of depression, productivity gains have been viewed as a serious threat to employment; in times of prosperity, as the promise of a better life. Actually, advances in productivity are neither a guaranty of increasing living standards nor a harbinger of unemploy ment, but represent increases in the Nation’s production potential. If markets for an expanding output are not developed as productivity rises, unemployment may result and the potential rise in production and consumption may not be realized. However, if employment is maintained, gains in productive efficiency make possible greater con sumption of goods and services or greater leisure. During the Second World War, productivity trends varied widely from industry to industry. In the production of war equipment, there were huge gains in productive efficiency as mass-production methods were adapted to the manufacture of munitions and as new techniques and equipment grew out of intensive research. In the industries manufacturing goods mainly for civilian use, there was little significant change in productivity after 1941, primarily because the normal flow of new and improved equipment into these industries was interrupted by the war. In the mining industries, output per man-hour continued to rise at approximately the prewar pace, despite many wartime difficulties; in railroad transportation, electric light and power, and agriculture, there were unusually sharp gains in productivity during the war period. As it is dealt with here, the term “productivity” refers to output, in physical units, per man-hour of work. It is a measure of the rela tionship between the volume of goods produced and one factor of input—labor time. Productivity data do not measure the specific contribution of labor or of capital !or of any other factors of produc tion. Changes in the ratio between output and man-hours of work show the joint effect of a large number of separate, though interrelated, influences. The long-term upward trend of output per man hour is 1 Prepared in the Bureau’s Productivity and Technological Development Division by Celia Star Gody and Allan D . Searle. 893 7 2 2 2 5 0 -4 6 - 4 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 894 M ONTHLY LABOR REVIEW----DECEMBER 1 9 4 6 due mainly to technical improvements in industry. At any time, however, output per man-hour also depends on the rate of operations, the relative contributions to production of plants at different levels of efficiency, the types of resources and materials available, the flow of materials and components, and other circumstances. Moreover, output per man-hour is also affected by human factors—the skill and effort of the work force, the efficiency of management, and the state of labor relations. The relationship between production and labor use is, in this article, generally expressed in terms of output per man-hour—the ratio of production to man-hours worked. This relationship may also be expressed in terms of the ratio of man-hours to production, or unit labor requirements; for some industries, such as shipbuilding, it is more convenient to deal with unit labor requirements. It is obvious that increases in output per man-hour are equivalent to decreases in man-hours per unit of output or unit labor requirements. Productivity in Manufacturing Industries OUTPUT PER MAN-HOUR, 1900 TO 1939 Output per man-hour in manufacturing industries increased at an average rate of 3 to 3% percent per year during the period 1909-39 (table 1). The increase is striking for both its magnitude and steadi ness. From 1909 to 1914 productivity rose 16 percent. World War I interrupted the upward trend and productivity levels were almost the same in 1919 as in 1914. From 1919 to 1929, however, output per man-hour rose nearly three-fourths and from 1929 to 1939 in creased an additional one-third; the total gain for the 20-year period between the two World Wars was 125 percent. Productivity in creased each year from 1919 to 1939 with but three exceptions—from 1922 to 1923, 1931 to 1932, and 1936 to 1937—and the declines which occurred were small. This steady improvement of productive efficiency was due mainly to the growth of scientific and technical knowledge and the utilization of this increased knowledge in industry. In a few in dustries, new equipment was developed which virtually revolution ized the production process (for example, the cigar machine, and the continuous strip mill in the steel industry). In many other industries, however, substantial increases in output per man-hour were achieved primarily through continuous small improvements in the equipment used, without fundamental changes in production methods. Highly specialized machines were designed for particular operations in the production process; new machines were more nearly automatic; and there was a trend toward the use of equipment of larger capacity. Accompanying progress in the design of equipment, were improve ments in plant lay-out and in the flow of work through the various https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 895 PRO DUCTIVITY C H A N G E S S IN C E 1 9 3 9 T a b l e 1.—Productivity Indexes for Selected Industries, 1909 to 1945 [1939=100] Output per worker Output per man-hour Year All manu facturing i 1909 1910 1911 1912 1913 1914 1915 _ .. _________ __________________ . ______ _________________ Railroad transpor tation 2 Mining 2 Electric light and power * 66.3 70.0 73.1 77.3 72.4 79.3 76.9 38.1 44.2 48.6 48.1 48.5 49.4 49.6 51.8 54.2 57.5 Agricul ture 8 73.3 78.1 81.2 81.1 86.4 73.6 79.6 ____ ___________ . _ ________________ -- _______ __________ - ____________ . . ____________ _________________________________ 43.8 48.3 52.7 57.9 51.6 54.2 53.5 56.7 57.6 58.5 60.9 1923 . . . ___________________________ 1924 _________________________ 1925___________________________________ 1926___________________________________ 1927 ___________________ 1928 _________________ 1929 ___ ____________________________ 57.3 60.8 65.0 67.2 69.3 72.4 75.5 62.9 64.6 68.2 70.4 70.2 73.7 75.1 59.0 60.7 62.6 63.4 65.3 68.0 69.9 51.0 49.1 50.4 53.1 52.7 54.1 81.8 83.7 88.5 91.2 88.3 91.7 91.5 75.1 75.6 73.7 83.0 83.7 87.6 93.5 95.2 72.9 77.2 77.6 78.8 81.4 84.9 86.6 88.0 50.1 51.9 58.3 68. 1 77.4 82. 5 87.8 89.6 89.7 98.9 93.3 89.1 76.5 87.4 81.5 105.1 94.7 100.0 105.2 115.5 139.6 150.9 148.1 139.5 90.1 100.0 102.4 105.4 108.0 108.6 112.6 117.8 89.0 100.0 108.6 123.2 145.8 182.7 191.1 181.4 97.7 100.0 103.2 107.4 118.9 116.8 124.5 122.2 1916 1917 1918 1919 1920 1921 1922 1930 1931 1932 1933 1934 1935 1936 1937 ..........- ____ ______________________ ____________________________ ___________________________ _______ ___________________ . ___ _____________________ ____________________________ . ______________________________ ___________________________ 77.4 81.0 78.3 82.9 .86.3 91.0 91.5 90.3 1938 1939 1940 1941 1942 1943 1944 1945 ____________________________ __ _______________________ - _______________________ -- _______________________ ___ _____________________ ____________________ _____________________ _ _____________________ 92.0 100.0 43.1 46.0 1 The production index for 1909, 1914, and the odd-numbered years 1919-39 is from Employment in Manu facturing, 1899-1939, by Solomon Fabricant (National Bureau of Economic Research). The index for the years 1920-38 was completed by interpolation, using the Federal Reserve Index for Manufactures. The index of man-hours was derived from an employment index, based on Census and BLS figures, and a series for average weekly hours including BLS figures for 1909,1919, and 1923-39 and estimates for 1920-22 compiled by the W PA National Research Project. 2 Class 1 steam line-haul railroads. The index for 1935-45 was prepared in the Bureau’s Productivity and Technological Development Division; details are shown in a mimeographed report, Productivity and Unit Labor Cost in Steam Railroad Transportation: 1935-45. The series for the period 1916-34 is based on a slightly different index prepared by W itt Bowden, of the Bureau’s Labor Economics Staff (see M onthly Labor Review, July 1937). 2 The index of output per man-hour for 1935-45 was prepared in the Bureau’s Productivity and Technologi cal Development Division and includes 6 of the principal mining industries—bituminous coal, anthracite, crude petroleum and natural gas, iron, copper, and lead and zinc. The index of production was derived as a harmonic mean of the separate production indexes, weighted with current-year man-hours; the index of man-hours was based on totals for the 6 industries. The series for 1915-34 is based on an index covering virtually all mining industries and prepared by the W PA National Research Project. (Production, Em ployment, and Productivity in the Mineral Extractive Industries, 1880-1938.) The index for the 6 indus tries is in fairly close accord with the N R P index for the period 1919-34. 4 Privately owned electric utilities. The index shows kilowatt-hours of electric energy distributed per man-hour of work, without distinction among different classes of service. Details of the procedures are shown in a mimeographed report, Productivity and Unit Labor Cost in the Electric Light and Power Industry: 1917-45. « The index for 1935-45 was prepared by the Bureau’s Productivity and Technological Development Division; details of the procedures are shown in a mimeographed report, Productivity in Agriculture: 1909-42. The series for 1909-34 was derived from indexes prepared by the W PA National Research Project and shown in the reports Trends in Size and Production of the Aggregate Farm Enterprise, 1909-36, and Trends in Employment in Agriculture, 1909-36. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 896 M O N T H L Y LABOR R E V IE W — DECEM BER 1 9 4 6 stages of the production process, reducing idle time and the amount of labor needed for handling materials and work in process. The combined influence of better equipment and better organization of the production process is most clearly indicated in the economies gained by the use of line-production systems, notably in the automobile industry. The use of improved production methods was also dependent, in part, on the production of large numbers of identical items, made possible by the existence of wide markets and an efficient transporta tion system. Contributions to the improvement of man-hour output were also made by increased study of some of the nontechnical factors affecting productivity—placement and training, job analysis, lighting, ventilation, control of noise, and the like. It is well to remember that the experience of an industry as a whole does not necessarily correspond to the experience of individual plants or companies. Typically, there are wide disparities in productive efficiency among different plants, because of differences in equipment and methods, as well as in the quality of management, worker effi ciency, and other factors. Mechanical equipment, especially, varies widely, reflecting differences in scale of operation, the date of plant construction, and management policy in regard to modernization. While practically all industries achieved gains in productivity during this period, the rate of progress varied from industry to industry.2 The greatest increases in productivity from 1919 to 1939 occurred in relatively new industries, in which the volume of output expanded rapidly. In the production of rayon, output per man-hour quadrupled between 1923 (the earliest date for which data are available) and 1939, in the manufacture of industrial chemicals, output per man-hour m 1939 was more than three times as great as in 1919. Productivity rose 180 percent in the automobile industry between 1919 and 1939 and even more in petroleum refining (290 percent) and rubber tires and tubes (325 percent between 1921 and 1939). Extremely large gains in man-hour output were also recorded for cigarettes, silk and rayon goods, glass, and alloying and rolling of nonferrous metals. The industries which showed the smallest advances from 1919 to 1939 weie, in general, older industries which did not expand rapidly and in which manufacturing techniques were relatively stable, such as food processing, leather, furniture, and lumber. OUTPUT PER MAN-HOUR SINCE 1939 ^ Since the production pattern changed radically when the United States began its war program, it is not possible to measure the over all changes in manufacturing efficiency from peace to war. To do this would require, for example, some equating of ships, planes, s Indexes for individual manufacturing industries for this period are shown in the mimeographed report roductivity and U nit Labor Cost in Selected Manufacturing Industries, 1919-40. February 1942. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PRO DUCTIVITY C H A N G E S S IN C E 1 9 3 9 897 and munitions against automobiles, vacuum cleaners, or typewriters. For some individual industries, much the same problem exists ; hence, it is not possible to state whether physical output per man-hour increased or dropped when the automobile industry converted to production of war equipment. The same type of difficulty exists during peacetime, of course, whenever new products are introduced, but the changes are more gradual and do not usually affect seriously comparisons over reasonable periods of time. While it is not possible to measure the productivity changes during the transition from peace to war in manufacturing as a whole, it is, nevertheless, possible to examine productivity changes in individual war industries and in certain nonmunitions industries which did not need to alter the nature of their production materially. Productivity in the War Industries 3 In the war industries, rapid advances in man-hour output were made as production expanded. The high production requirements for air craft, ships, and other war goods permitted a change from custom to mass-production manufacturing methods, with very great savings in labor requirements. A large number of modern plants were con structed, incorporating assembly-line or préfabrication systems, special-purpose machinery, and other essentials of mass-production methods. In addition, war needs stimulated the development of some basically new techniques—in welding methods, for example, light metal technology, and the like. In shipbuilding a few standardized types were selected to provide the bulk of the wartime program. The most important of the stand ardized types (in respect to number) was the Liberty ship. The new methods of construction called for considerable préfabrication of parts and subcontracting, as well as standardization of plans. Produc tion commenced in 1941 and immediately large increases in produc tivity were forthcoming. Labor requirements per ship dropped from 1,150,000 man-hours in December 1941, when the first ships were delivered, to 515,000 man-hours per ship delivered in December 1944. This 55-percent decrease in unit labor requirements is equivalent to a productivity increase of over 120 percent. In 10 individual yards building Liberty ships, labor requirements per ship dropped an average of 19 percent each time production doubled. There were large decreases in unit man-hour requirements for other types of ships as well. A 50-percent reduction over a 10-month in terval occurred in yards building Victory ships. Man-hour require ments for two types of tankers dropped 38 percent from June 1943 to December 1944, and unit labor requirements for destroyer escorts 3 See also Wartime Productivity Changes in the Airframe Industry, in M onthly Labor Review, August 1945, and Productivity Changes in Selected Wartime Shipbuilding Programs, in M onthly Labor R eview, December 1945. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 898 M O N T H L Y LABOR RE V IE W ---- DECEM BER 1 9 4 6 dropped 45 percent during the 10 months April 1943 to January 1944. Even larger increases in productivity were achieved in the aircraft industry. Aircraft, before the war, were manufactured in small lots to the order of the individual customer. The wartime Government demand, however, enabled the industry to concentrate on producing laige numbers of airplanes to a standard design. Jobs were simplified and specialized. In addition, special-purpose machines for working with light metals, automatic riveting devices, special hand tools, and other labor-saving innovations came into use. Between the first quarter of 1942 and the last quarter of 1944, production of airframes multiplied sixfold, and productivity increased more than 160 percent during the 3 years. During 1942, many new plants entered production and the increase in productivity was rela tively moderate—13 percent between the first and fourth quarters of the year. During 1943 and 1944, however, output per man-hour rose rapidly. From the fourth quarter of 1942 to the fourth quarter of 1943, a 74-percent increase in output per man-hour occurred, and between the fourth quarter of 1943 and the fourth quarter of *1944 productivity rose another 33 percent. The magnitude of the advance may be appreciated when it is compared with peacetime advances in new industries. The increase from the first quarter of 1942 to the last quarter of 1944 was greater than the total gain in productivity in the automobile industry from 1919 to 1929, the years of most rapid development. For individual aircraft plants, the improvement in productivity levels as production increased was remarkable. On the average, plants were able to reduce labor requirements per pound of airframe by 30 percent each time production doubled. T\ hile complete data are lacking, there are indications that pro ductivity increased considerably in other war industries as well. According to data compiled by the Army Service Forces, substantial gains in productivity were made in Government-owned privately operated ammunition plants. Productivity advanced 33 percent for the shell- and bomb-loading industry and 40 percent for the smallaims ammunition industry during 1943. Productivity jumped 45 percent in the manufacture of TNT from April 1943 to the end of the year.4 Productivity Changes in Nonmunitions Industries The course of productivity in those nonmunitions industries for which data are available contrasts with the large and rapid gains made in munitions industries. While some of the nonmunitions industries made important contributions to the war effort, no im portant changes in production techniques could be made, replacement of equipment was difficult, and the manpower shortage was especially * Senate’ s Pecial Committee to Investigate the National Defense Program, Third Annual Renort Mar fin 1944 (n. 1 721 * * https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PRO DUCTIVITY C H A N G E S S IN C E 1 9 3 9 899 severe. Thus, the basis for wartime increases in man-hour output was lacking. Table 2 presents indexes of output per man-hour for 32 nonmuni tions manufacturing industries from 1939 to 1945. In .1939, these industries employed approximately one-third of the total number of wage earners engaged in all manufacturing industries. The industries listed represent more than half the 1939 employment in food, tobacco, basic lumber products, leather, paper manufacture, textiles, petroleum and coal products, and over one-third of the total in print ing and publishing, chemicals, and stone, clay, and glass. Important segments of the manufacturing economy—e. g., steel, automobiles, rubber products, and machinery—are omitted, however, and changes in these industries cannot be assumed to represent the change in manufacturing as a whole. While the industries for which statistics are presented continued to manufacture the same general types of products as in peacetime, in some of them there were shifts in the nature of the products which cannot be fully reflected in the measures of production. Specifications for products for military use—for example, cotton textiles—were in many instances far higher than for civilian goods. In some industries, there was a shift to the manufacture of items in the higher price lines; in others, there was a deterioration in the quality of the goods manuactured for the civilian market; and in some cases, there were sub stitutions in the materials used. For these reasons, the indexes are necessarily approximations and cannot, in some cases, be interpreted as showing precise changes in man-hour output from year to year. The production indexes are based on statistics for the quantities of the separate products manufactured by each industry. In most instances, the products included cover virtually the entire output of the industry, but, in some cases, minor products could not be included. The production figures generally are based on a complete canvass of all plants producing the respective items. The trends of employment and man-hours, on the other hand, are, for most industries, based on a sample of plants which report to the Bureau of Labor Statistics; but this sample represents fairly accurately the changes in total employment in the industry. Man-hour output in these 32 industries generally increased from 1939 to 1941, turned downward from 1941 to 1943, leveled off in 1944, and increased in 1945. Increases in productivity were experienced by 24 of the component industries between 1939 and 1940, and produc tivity rose in 25 industries between 1940 and 1941. However, pro ductivity levels fell in 19 of these industries from 1941 to 1942 and decreased in 22 from 1942 to 1943. Output per man-hour increased in 20 of the industries from 1943 to 1944 and, from 1944 to 1945, rose in 25 of the 29 industries for which data are available. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 900 M O N T H L Y LABOR RE V IE W — D ECEM BER 1 9 4 6 T able 2.— Indexes of Productivity in 32 Nonmunitions Manufacturing Industries 1 [1939=100] Output per man-hour Manufacturing industry 1940 1941 Beet-sugar refining8............................................ Boots and shoes_______ __________ _______ Bread and other bakery products___ . _____ Cane-sugar refining____________ ______ ___ Canned and preserved fruits and vegetables. Canned and cured fish ..................................... Cement........... ...................................................... Clay construction products-............................. Beehive coke......................................................... Byproduct coke....................................... ............ 103.5 105.6 100.9 113.2 105.0 113.4 110.4 Condensed and evaporated m ilk .............. Confectionery___________ ________ ____ Cotton goods............................... .................. Fertilizers___________________ ________ Flour and other grain m ill products____ Glass products.......................... ..................... Hosiery__________ _______ _______ _____ Ice cream........................................................ Leather___________ __________________ Lumber and timber products—Sawmills. M alt liquors.................................................... 109.7 105.6 102.5 110.3 99.6 99.8 108.4 107.0 119.3 108.3 102.7 101.0 110.0 111.7 98.0 105.5 99.0 Newspaper and periodical printing and publishing___ Nonferrous metals—Primary smelters and refineries... Paints and varnishes_____________________ . Paper and pulp_____________________ _______ _ . Petroleum refining__________ _________ _____ ______ Rayon and allied products. _____________________ Slaughtering and meat packing____________________ ____________ — _________ ______________ Cigars Cigarettes_______ . . . ____ ____ _____ ____________ Chewing and smoking tobacco and s n u ff___________ Woolen and worsted goods.............................. .................. 103.8 108.0 100.1 104.2 102.9 113.7 102.1 100.0 100.0 104.3 106.2 103.1 113.8 106.7 107.7 127.2 101.2 101.5 108.9 108.3 103.5 107.1 122.4 100.4 103.1 99.2 104.6 112.1 108.3 106.4 102.0 105.4 110.8 100.3 104.1 109.1 127.0 1942 1943 93.0 78.8 111.8 111.1 106.9 82.8 123.6 92.2 108.4 97.4 103.9 106.2 113.1 91.3 120.8 84.4 94.7 81.3 104.8 98.2 108.6 104.2 102.2 106.5 102.2 100.8 102.1 102.5 94.7 102.9 113.9 147.1 116.5 98.1 100.7 105.7 102.3 108.8 101.8 101.5 141.3 96.0 103.2 112.2 98.8 100.2 85.2 109.2 123.5 142.0 110.7 95.1 92.9 101.4 99.4 109.8 94.7 94.2 135.5 96.9 105.7 111.0 89.3 107.9 1944 1945 82.6 105.9 88.0 110.6 111.2 126.1 92.2 123.2 104.3 89.4 89.2 96.6 119.6 97.3 83.8 83.0 109.7 103.0 106.1 116.4 100.4 108.2 85.2 107.6 130.5 151.2 114.5 96.0 92.6 112.3 117.8 100.7 113.2 93.0 121.3 137.9 153.1 115.4 87.5 97.4 114.1 92.7 95.6 141.5 102.3 117.0 113.2 85.1 116.4 88.7 95.9 120.3 95.2 94.0 151.0 92.5 111.0 133.2 119.8 87.1 118.2 1 Indexes of production, employment, man-hours, and pay rolls, together with the details of the methods used in the preparation of the indexes, are shown in the mimeographed report Productivity and U nit Labor Cost in Selected Manufacturing Industries, 1939-45. In some of the industries listed above, there have been changes in the nature of the products which cannot be measured and are not fully reflected in the indexes of output per man-hour. It is believed that the in dexes of output per man-hour are satisfactory to show the general trends since 1939, but they may not in all cases indicate the precise changes from year to year. 8 Indexes for beet-sugar refining are on the basis of a fiscal year beginning in March. While there is a general pattern in the direction of year-to-year changes in output per man-hour for this group of industries, reflecting wartime economic conditions, there are also substantial variations among different industries in the net changes in man-hour output since 1941. One of the most important reasons for these differences is the fact that in some industries the volume of production increased because of expanded war requirements, while in others output de clined as a result of wartime restrictions. Where volume was re duced, output per man-hour necessarily suffered. In industries in which production rose, output per man-hour generally advanced despite wartime operating difficulties. Thus, of the 13 industries in which man-hour output for 1945 was higher than for 1941, in all but 3 (hosiery, leather, and cigars), the 1945 production level was also higher. Conversely, in almost threefourths of the industries in which productivity declined, production also fell. For example, in the clay-construction products industry, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PRO DUCTIVITY C H A N G E S S IN C E 1 9 3 9 901 which was severely affected by the restrictions on new construction, production dropped 53 percent between 1941 and 1945 and produc tivity declined 16 percent. Similarly, in the cement industry, productivity and production rose from 1939 to 1942, then declined substantially until, in 1944, productivity had fallen 23 percent and production had dropped 45 percent below 1941 levels. From 1944 to 1945 an increase of 13 percent in cement production was accom panied by a 7-percent rise in man-hour output. Likewise, in news paper and periodical printing and publishing, a 20-percent drop in production between 1941 and 1944 was related to an 18-percent decline in productivity. Other industries in which both production and productivity declined significantly during the war are beet-sugar refining and chewing and smoking tobacco. Productivity changes were not uniformly related to like changes in the volume of production, however. Productivity increases in excess of 10 percent from 1941 to 1944 (the last full year of the war) occurred in only 4 industries—hosiery, ice cream, rayon, and cigars. In two of these (hosiery and cigars) production declined, and in the other two increased only moderately. On the other hand, output per man hour dropped between 1941 and 1944 in flour and other grain mill products, cane-sugar refining, condensed and evaporated milk, malt liquors, and petroleum refining, although production was near the 1941 levels or higher. The general, if moderate, increases in productivity between 1944 and 1945 seem especially significant. Producers of goods for civilian use apparently were able to cope with wartime problems more success fully, once the shift to the war production program had been completed and operations had been stabilized, than during the initial transition. This fact is suggested by the evidence that productivity was stable between 1943 and 1944, while small declines generally occurred during 1941-42 and in 1942-43. In addition, the relaxation of some controls during the last part of 1945, as well as the easing of materials and labor shortages, may also have contributed to the improved record. During the first half of 1946, despite the unsettled conditions, productivity levels in those industries for which statistics are available were generally higher than in the same months of 1945. As might be expected, the largest gains occurred in industries which were able to expand production as soon as wartime restrictions were ended. Increases in man-hour output of 20 percent or more between the first half of 1945 and the first half of 1946 are shown for cement and clay construction products. Other industries for which substantial in creases in productivity are shown (5 percent or more) are glass, cigars, newspaper and periodical printing, paper and pulp, cigarettes, rayon and allied products, paints and varnishes, and boots and shoes. With a single exception, production levels during 1946 were higher https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 902 M O N T H L Y LABOR RE V IE W — DECEM BER 1 9 4 6 than in 1945 in the industries in which man-hour output increased. On the other hand, moderate declines in man-hour output were experienced in those industries in which the volume of output declined. FACTORS AFFECTING PRODUCTIVITY DURING, THE WAR The productivity record in the war industries is generally recognized as a magnificent accomplishment. It is not usually appreciated, however, that the performance of the nonmunitions industries was equally creditable, in the face of the many serious operating problems encountered. Some discussions have implied that the small decline in man-hour output in the nonmunitions industries reflects a decrease in “ worker efficiency.” It is not possible, however, to isolate the effects of individual efficiency from the many other influences which determine output per man-hour. It is true, of course, that a trained worker can produce more in an hour than an untrained worker if other factors affecting productivity are held constant, but “worker effi ciency” is not necessarily the most significant element. Thus, the greatest increases in man-hour ouptut were made in war industries even though many new and untrained workers were entering war plants. As has been indicated, these gains were achieved largely because of the adoption of mass-production methods. Among the many factors which determine the relationship between output and labor input, the most important are probably the produc tion methods and the quality of the equipment used. In “ normal” times, it has been possible for productivity levels to rise year after year mainly because there have been steady improvements in processes and equipment. The advance in man-hour output has its origin in technical innovations, but it continues for many years after the new methods are introduced. Since most industrial equipment has a long life and is not scrapped until significant economies can be gained, new methods are not adopted throughout industry as soon as they are developed but find acceptance only after a period of years. Thus, man-hour output continues to increase even when there are no new technological developments, as additional plants adopt the most ef ficient methods. During the war, there was vastly increased technical research, but it was concentrated in the war industries. Many new techniques were developed to speed war production or to improve the quality of war equipment. The industries manufacturing goods for civilian use, on the other hand, were not in a position to make any significant changes in production methods. Technical personnel was drawn into the war industries and the capital-goods industries were converted to the production of equipment for war plants. In many instances, it was difficult to obtain equipment needed for replacement, and ma chines which might otherwise have been discarded remained in service, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PRO DUCTIVITY C H A N G E S S IN C E 1 9 3 9 903 A Department of Commerce study, comparing expenditures from July 1940 to December 1943 with those made during the period Janu ary 1937 to June 1940, indicates clearly the concentration of invest ment in the war industries.6 Expenditures in facilities for the produc tion of aircraft, ships, combat vehicles, explosives, guns, ammunition, shells, and bombs amounted to 10.5 billion dollars, from July 1940 tO' December 1943, out of a total investment of 20.5 billions for all manu facturing plant and machinery. In the prewar period investment in these industries was negligible. The great capital outlays in these industries during the war formed the basis for the adoption of massproduction methods which, together with new techniques and specially designed machinery, contributed to the large wartime increase in productivity. In such basic industries as steel, nonferrous metals, machinery, chemicals, synthetic rubber, and aviation gasoline, investment from July 1940 to December 1943 totaled 7.7 billion dollars compared with 2.5 billion for the preceding 3 years. While much obsolete equipment was also brought into use in these industries during the war, the aver age efficiency of facilities no doubt increased. In industries producing goods for civilian consumption, however, investment dropped from 3.0 billion dollars in the period January 1937-June 1940 to 1.8 billion in the period July 1940-December 1943. During 1944 the rate of expenditures for plant and equipment was 50 percent higher than during the period July 1940-December 1943 but remained below prewar levels. Moreover, these figures understate the decline in physical investment since they do not reflect price rises or the amounts spent by these industries on war items. The non munitions industries may have had poorer plants at the end of the war than at the beginning. In any event, it is clear that they were unable to make any substantial improvements during the war period. While technical factors were the most important, many other elements influenced wartime productivity levels. Increases in the proportion of capacity utilized tended to raise productivity in some industries during the early phase of the war production program, especially where the proportion of “indirect” labor is high, as in the steel industry. In other industries, however—cement, for example— a decrease in capacity utilization attributable to wartime restrictions contributed to a decline in productivity. Intermittent interruptions in the flow of materials had detrimental effects on man-hour output even where there was no general decline in the level of operations. Where such interruptions occurred, workers were sometimes kept on the pay roll even though idle part of the time, and it was impossible to organize the production process efficiently. Many war plants suffered from interruptions of this sort during the early part of the war, as supplies of raw material became scarce. Nonmunitions 8Wartime Construction and Plant Expansion, by D . Stevens Wilson, in Survey of Current Business, October 1944. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 904 M O N T H L Y LABOR RE V IE W — D ECEM BER 1 9 4 6 industries, withflast call on materials supplies, also were affected by wartime bottlenecks. Moreover, changes in the types of materials available from time to time required modifications of manufacturing methods and resulted in loss of productive efficiency. The wartime change in the composition of the work force made it necessary for management to give more attention to training pro grams, recruitment policies, working conditions, supervision, and morale than was customary in peacetime. Millions of men were drawn from jobs in industry into the armed forces and these workers were generally in age groups where there is probably high individual efficiency. Unemployment virtually disappeared, and new workers were recruited largely from groups with little industrial training— women, high-school students, older persons, and minority groups. Thus, the number of males gainfully employed dropped nearly 2 million from May 1940 to May 1945, while the number of female workers rose 7 million. The industries which produced civilian-type goods were more severely handicapped by the change in the labor force than were the war industries. The nonmunitions industries lost skilled workers to the higher-paying war plants and to the armed forces, whereas workers were channeled into war industries by man power controls and high wage rates. Much has been said concerning the “inferior” quality of the wartime labor force. Available evidence, however, indicates that in most industries the way labor was utilized was of morn significance than the training and abilities of individual workers. I t is frequently overlooked that there was dilution within the management group equivalent to that which took place within the labor force. Many management officials were drawn from established industries to staff the new war plants and others went into the armed forces. The magnitude of the over-all volume of production during the war period made necessary a large increase in the size of the management and supervisory group. As a result, management and supervisory positions were, in some instances, necessarily assumed by persons with little previous qualifying experience. Many wartime circumstances made effective labor utilization more difficult. High labor turn-over, or more specifically the high “quit” rate, was one of the most serious problems. The number of persons who quit their jobs increased from less than 1 per month for each hundred persons employed in 1939 to 6.3 per hundred in August and September 1943, a rate not equaled again until September 1945, when the quit rate rose to 6.7 per hundred. While increased labor turn over was inevitable in the process of staffing the war industries, it was detrimental to maximum productivity in a number of respects. Production was interrupted; replacements often required considerable training before attaining sufficient ability; and time of supervisors and other employees was consumed in training new workers. Simi https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PRO DUCTIVITY C H A N G E S S IN C E 19 39 905 larly, unscheduled absences from the job were higher than in peace time because of the employment of women with home responsi bilities, the lengthening of hours of work, and shortages of housing, transportation, and essential services. High absenteeism may result in a loss of productive efficiency, since it makes necessary some im provisation of job arrangements. Information collected during the war period showed wide variation in the absence rate from plant to plant, depending on management practices. In some instances, the longer wartime hours may have tended to increase fatigue and to reduce productivity. The average length of the workweek in manufacturing industries increased from 37.3 hours per week in July 1940 to 45.6 hours in December 1944. In some entire industries (for example, machine tools and machine-tool acces sories) and in many more individual plants, work schedules averaged considerably in excess of 50 hours per week. Where hours of work were extremely long or where there was a 7-day week, productivity levels suffered. Moreover, second or third shifts were added by many industries in efforts to increase the utilization of their facilities. Both workers and managements experienced difficulty in adjusting to evening or night shift operating conditions. OUTLOOK FOR MANUFACTURING INDUSTRIES There is every indication that the advance of productive efficiency is being resumed and that the rise in productivity will be unusually rapid during the coming few years. The special wartime difficulties which hampered productivity gains in the nonmunitions industries have already disappeared or will be eliminated in the near future. There are hardly likely to be any persistent difficulties in the way of recruiting an adequate labor force. Materials will be available in sufficient supply to permit efficient operation, even though it may be impossible to meet all of the pent-up demand immediately. Plant operations will generally be more stable. For example, changes in the nature of the products manufactured or in the materials used will occur more slowly and there will be greater opportunity for advance planning of such changes. In practically all industries, there will be rather intensive utilization of capacity. This factor will be of par ticular importance in industries which operated at a reduced level during the war and which suffered declines in productivity as a result. In the durable goods industries which were converted to war pro duction, productivity should compare favorably with prewar per formance once capacity operations are achieved. Manufacturers of consumer durable goods of all types will be in an excellent position to achieve improvements in productive efficiency, since there are large markets and production will be high for some time to come. In some cases, experience gained in war production will be applied to the manu facture of peacetime products, particularly where the production https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 906 M O N T H L Y LABOR RE V IE W — D EC EM BER 1 9 4 6 methods used for war items were similar to those used for the normal range of products. The most important factor which will tend to raise productivity levels will be widespread installation of new equipment. As pre viously indicated, expenditures for new plant and equipment in non munitions manufacturing industries during the war period were little more than half as great as in the preceding peacetime years. Much of the equipment in use is worn out or obsolete and will be replaced within the next few years. It is likely that expenditures for new plant and equipment will be well above the “ normal” rate for several years in all manufacturing industries, except those few in which capacity was expanded during the war to a level in excess of what will be required for peacetime production. The belief that productivity will rise rapidly during the coming period is supported by available evidence on recent expenditures for plant and equipment and on plans for future expenditures. A study by the U. S. Department of Commerce and the Securities and Ex change Commission provides some information on planned expendi tures for new plant and equipment in manufacturing and mining combined. Expenditures planned for the second and third quarters of 1946 total 3.4 billion dollars. On an annual basis, such expendi tures would be almost three times as large as those made in 1939 and would substantially exceed the level of 1941, when many of the newequipment purchases were designed for the production of munitions. It is interesting to note that actual expenditures rose sharply with the end of the war. During the last quarter of 1945, 1.4 billion dollars was spent for plant and equipment and during the first quarter of 1946, 1.2 billions, compared with an average quarterly expenditure of 750 millions during January-September 1945. An earlier study of planned expenditures for equipment made by the Department of Commerce provides some indication of the prob able distribution of expenditures among the various industries.6 As might be expected, the greatest increases, relative to the prewar period, were contemplated in those industries which were not able to add any great amount of new equipment during the war period and in those industries which were converted to war ^production—textiles, apparel, and leather; pulp, paper and printing; transportation 'equip ment, including automobiles; and machinery, including electrical equipment. These large-scale installations of new equipment will make possible substantial increases in man-hour output. Even if the types of equip ment purchased were not fundamentally different from those availa ble before the war, a high rate of investment in equipment would rapidly raise the average quality of all equipment in use and would andPJuFy 194£aPital https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Financills’ by D ‘ Stevens Wilson- in Survey of Current Business, June PRODUCTIVITY CHANGES SINCE 1 9 3 9 907 permit retirement of the least efficient machinery. It is likely, however, that the types of equipment installed will be superior to those which were available before the war, and this factor should permit additional gains in productive efficiency. Techniques developed for war production, as in metalworking and electronics, will undoubtedly contribute to the advance of productivity over a period of years. Productivity in Nonmanufacturing Industries The types of difficulties which handicapped operations in the non munitions manufacturing industries during the war period were prev alent, to a greater or lesser extent, in virtually all industries. The general shortage of manpower, restrictions on new-equipment instal lations, and shortages of materials had their effects throughout the economy. The severity of the operating problems varied from indus try to industry, however, depending on the importance of the industry in the war-production program. Those industries producing goods which were not essential suffered most seriously, for they had last call on available manpower, materials, and machinery. Activities directly supporting the war effort, on the other hand, were not affected to the same extent by wartime restrictions. In the latter category were some nonmanufacturing industries which were vital to the successful prosecution of the war—mining, railroad transportation, electric light and power, and agriculture. Special efforts were made to supply these industries with needed equipment and to keep them adequately staffed. In each of these activities, the obstacles to efficient operation were outweighed in importance by other factors, and substantial gains in man-hour output are recorded for the war period. M INING In mining, as in manufacturing, productivity has increased steadily in the past. Considering the major mining industries together, output per man-hour doubled during the 20-year period 1919-39, rising at an average rate of 3 percent annually (table 1). The con tinued advance in output relative to labor time resulted mainly from the steady growth of mechanization and improvement in the types of equipment used. In bituminous-coal mining, for example, 60 percent of total underground production was cut by machine in 1919, 78 per cent in 1929, and 88 percent in 1939. Similarly, mechanical loading of coal, a more recent development, was used for less than 1 percent of total underground production in 1924, but rose to 31 percent of the total in 1939. Strip mining, which is far more efficient than under ground mining with respect to man-hour requirements per ton, con tributed little more than 1 percent of the total coal tonnage in 1919, but almost 10 percent in 1939. Comparable improvements were made in metal mining, including more extensive mining by open-cut https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 908 M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 methods. New processes of recovery developed for nonferrous metals made it economical to mine large masses of easily accessible low-grade ore. Man-hour output continued to rise in the mining industries during the war years. For the major mining industries together, the gain in productivity was 18 percent from 1939 to 1945 and 12 percent from 1941 to 1945. Despite wartime shortages, a considerable amount of new equipment was installed—mobile loading machines and conveyors in underground coal mines, larger draglines and new-type excavators in some surface stripping operations, belt conveyors and larger capaci ty trucks in certain open-cut metal workings, and new drilling rigs and ore-handling devices in underground metal mines. Moreover, special efforts were made to maintain an adequate labor force. For example, in 1942, prior to the adoption of Nation-wide manpower controls, the War Manpower Commission imposed a “freeze” on separations in nonferrous-metal mining, and in the same year the War Labor Board granted wage increases to nonferrous-metal miners, precisely because the importance of maintaining an adequate labor force was recog nized. Since these measures were not adequate, Government authori ties took the drastic step of furloughing nonferrous-metal miners from the armed forces. The largest increase in productivity during the war period occurred in the extraction of crude petroleum and natural gas—28 percent be tween 1939 and 1945. This gain was attributable in part to a reduc tion in the proportion of labor devoted to the development of new wells. The number of wells drilled dropped sharply between 1941 and 1943. With accelerated well drilling in 1944 and 1945, the advance in man-hour output was halted. There was also a substan tial increase in output per man-hour in bituminous-coal mining— 20 percent between 1939 and 1945. Machine-cutting, strip mining, and mechanical loading all continued to grow in importance during the war years. Particularly significant is the increase in mechanical loading—from 31 percent of the total underground output in 1939 to 41 percent in 1941, and to 53 percent in 1944. In iron-ore mining, productivity in 1945 was 17 percent above the 1939 level, although slightly lower than in 1941. Open-pit mines increased their share of total iron-ore output from 62 percent in 1939 to 74 percent in 1944. The large wartime requirements for nonferrous metals could be achieved only by working deposits which would not be economical sources in normal times. In order to encourage production from leaner ores, the Government made premium payments for copper and for lead and zinc produced in excess of fixed quotas. In both copper mining and lead-and-zinc mining, the percentages of re coverable metal in the ores mined declined substantially after 1939. Sharp gains were made in ore output per man-hour in both industries https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PRODUCTIVITY CHANGES SINCE 1 9 3 9 but comparable advances were not achieved in recoverable metal production per man-hour. Despite the necessity for mining leaner deposits, recoverable copper mined per man-hour was 15 percent higher in 1945 than in 1939, with most of the gain occurring after 1943, as production declined. The rise in productivity reflects an increase in the proportion of output contributed by open-cut mines. In lead-and-zinc mining, productivity fell about 13 percent from 1939 to 1943, but by 1945 the 1939 level was regained (table 3). T able 3.— Indexes of Productivity in Selected JSonmanujaciuring Industries 1 [1939=100] Output per man-hour Nonmanufacturing industry Mining: Bituminous coal____'L l_____________ __________ Anthracite___________________________________ Crude petroleum and natural gas_______________ Iron ore______________________________________ Copper: Recoverable metal____________ _____ ______ •_ Ore______________________________________ Lead and zinc: Recoverable metal_________________________ Ore______________________________________ Steam râilroad transportation:2 K> Revenue traffic._______________________________ Car-miles_______________________ ____ ___ ____ _ Electric light and power 3_________________________ Agriculture *-------- ------------ --------- -------------------------- 1940 1941 1942 1943 1944 103.9 101.1 98.8 118.8 105.8 105.7 104.5 119.7 107.1 98.3 118.7 110.7 106.8 95.3 126.9 101.2 116.0 102.6 127. 4 110.2 119.6 99.6 127.7 117.3 104.2 108.2 100.3 108.1 102.5 114.9 103.7 123.0 113.6 140.7 115.1 149.2 97.2 100.3 99.2 108.7 91.1 103.2 87.2 112.0 95.7 134.0 99.2 145 3 105.2 102.5 108.6 103.2 115.5 104.2 123.2 107.4 139.6 108.7 145.8 118.9 150.9 103.9 182.7 116.8 -148.1 101. 2 191.1 124. 5 139.5 95.3 181.4 122.2 1945 1 Indexes of production, employment, man-hours, and pay rolls, together with the details of the methods used in the preparation of the indexes, are shown in a series of mimeographed reports: Productivity and U nit Labor Cost in Selected Mining Industries: 1935-45; Productivity and Unit Labor Cost in Steam Railroad Transportation: 1935-45; Productivity and U nit Labor Cost in the Electric Light and Power Industry: 1917— 45; Productivity in Agriculture: 1942-45. 2 Class I steam line-haul railroads. 2 Privately owned electric utilities. * Output per worker. It seems likely that man-hour output in the mining industries will continue to rise in the future at a rate comparable with that achieved in the prewar period. As in manufacturing, much new equipment will be purchased as soon as it is available. The most efficient methods will gradually be adopted by additional mines and improvements will doubtless be made in the design of equipment. The proportion of copper and iron mined in open-cut operations and of coal extracted by stripping may continue to increase. Since these methods require less labor than underground mining, productivity will tend to rise as a result. An additional factor which may tend to raise man-hour output in metal mining will be the abandonment of the least productive mines and ore deposits. On the other hand, it may be necessary, for a time, to devote a relatively large amount of labor to development ivoikr Since such labor will not yield any immediate output, this factor may tend to retard the gains in productivity. Well-drilling in crude“' petroleum and natural gas was below the prewar rate in 1944 and 1945 and additional development work will probably be essential if producd 722250— 46----- 5 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 910 MONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 tion is to be sustained. In iron mining, too, it may be necessary to develop new ore beds, possibly of lower grade. This factor is unlikely to be of major significance, however, and continued increases in man hour output may be anticipated in the mining industries. RAILROAD TRANSPORTATION Productivity in railroad transportation (measured in terms of passenger mileage and freight ton-mileage carried per man-hour of labor) has, in the past, increased at a rate only slightly lower than in manufacturing and mining. Output per man-hour rose approximately 75 percent from 1919 to 1939; the average rate of increase was nearly 3 percent per year (table 1). During this period, there was a steady rise in the average tractive effort of locomotives, train speeds were increased, and freight cars of larger capacity were added. Moreover, improvements were made in the methods used for constructing road way and there was a trend toward greater durability of rail and ties, with a consequent reduction of the amount of labor needed for con struction and maintenance. As a result of the huge increase in traffic during the war, man-hour output jumped 48 percent from 1939 to 1944; but, with the decline in traffic between 1944 and 1945, it fell 6 percent. During the first quarter of 1946, man-hour output was 7 percent below the level for the year 1945 but remained 30 percent higher than in 1939. The tremendous wartime gain in productivity, unlike the steady advance in the period before the war, did not arise from any fundamental improvement in operating methods, but resulted in large part from more complete loading of cars. It is apparent that the volume of traffic carried per man-hour depends, to a great extent, on the average load per car, since an increase in the average load does not require a proportional increase in the amount of labor. War requirements made extremely heavy demands on the rail roads. During 1944, the peak year, the volume of freight and pas senger traffic was 144 percent higher than in 1939; the number of pas senger-miles traveled was four times as great as in 1939 and freight ton-mileage more than twice as great. This enormous increase in the volume of traffic was achieved with little addition to rolling stock. No new passenger cars were built during the war period, and only small numbers of locomotives and freight cars were added. Both passenger and freight cars were more fully loaded and more continuously used, and this factor accounted in large part for the great increase in man hour output. The number of car-miles traveled per man-hour of work, which shows productivity in terms of carrying space provided, increased 9 percent from 1939 to 1942, despite heavier loading of cars. In con trast, car-miles per man-hour declined 8 percent from 1943 to 1945, although there was no further increase in average load during this https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PRODUCTIVITY CHANGES SINCE 193 9 911 period. Few basic improvements in operating methods could be made in the face of the wartime shortages of labor and materials. The use of rolling stock due for retirement doubtless also contributed to the decline in the index of car-miles per man-hour. Moreover, the loss of experienced railroad workers presented grave operating problems. It seems certain that there will be some decline in revenue traffic per man-hour in the immediate future, as the volume of traffic and the utilization of car capacity decline. Civilian passenger travel obviously does not permit as complete use of facilities as did troop movements. In any event, with alternative forms of transportation available, passengers will not be willing to tolerate the overcrowding which was prevalent during the war. Freight shipments have been changed in character, so that cars are not so fully loaded or so con tinuously used, a change reflected in the severe shortage of freight cars. Moreover, because of the extreme shortage of railroad labor during the war, some maintenance work was postponed, and it may be necessary to increase the amount of labor devoted to such work. After the initial readjustment to a lower volume of traffic, how ever, the long-term upward movement of productivity will doubt less be resumed. Track maintenance work and yard operations will probably be mechanized to a greater extent, and track and roadbed may be of more durable construction. In addition, modern locomo tives and rolling stock will be purchased, and modern communications devices will be more widely used. The competition of other means of transportation will doubtless stimulate the modernization of equip ment in the railroad industry. A survey made by the Department of Commerce and the Securities and Exchange Commission indicates that the railroads are planning capital expenditures of 360 million dollars for the second and third quarters of 1946. On an annual basis, this expenditure would be the highest since the year 1929, and would be twice as high as the average annual expenditures during the years 1937-40. The expenditures planned for 1946 are also substantially higher than the average for the years 1941-44. Since the amount of traffic will be below the wartime peak, such investment will permit substantial improvements in roadway and equipment and will permit retirement of the least efficient equipment. ELECTRIC UTILITIES The amount of electric energy distributed per man-hour worked by employees of electric light and power companies more than doubled from 1917 to 1939. The gain in productivity was moderate between 1917 and the early thirties, averaging 1% percent per year. There after, however, man-hour output advanced extremely rapidly, with an annual rate of increase of approximately 8 percent between 1930 and 1941 (table 1). In generating stations, savings of labor resulted https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 912 MONTHLY LABOR REVIEW----DECEMBER 1 9 4 6 from the use of larger-capacity equipment at higher pressures and temperature, increased fuel efficiency, and improved methods of han dling fuel. Better transmission and distribution systems permitted a decrease in power losses as well as reduction in the amount of labor needed for maintenance and repair. One of the important factors contributing to the rise in man-hour output has been the increase in the amount of electric energy consumed per customer. This factor has permitted a reduction in the proportion of labor which must be devoted to installation, maintenance, and clerical work. The rapid increase in output per man-hour during the thirties parallels a rise in the amount of electric energy consumed per customer, from 2,900 kilowatt-hours in 1934 to 3,600 in 1939. The increase in the amount of energy consumed per customer was attributable both to greater use of electric power in industry and to more extensive use of radios, refrigerators, and other electrical appliances in the home. Total requirements of electric energy and the average consumption per customer went up sharply during the war period. As a result, output per man-hour rose even more rapidly than during the thirties, and in 1944 was 91 percent above the 1939 record. A small decline in man-hour output is shown for 1945, reflecting the decline in power requirements of large industrial users with the end of war production. Many measures which were adopted to meet wartime power require ments contributed to the unusually sharp gain in output per man hour. For example, power-pooling agreements and the adoption of “ war time” permitted greater use of generating capacity. Bimonthly meter reading saved a large amount of clerical and meter readers’ labor and there was some restriction on new installations. Output per man-hour during the year 1946 will undoubtedly be lower than during the peak war period, since average consumption of electric energy per customer will be reduced and additional new installations will be made. As in the case of the railroads, the decline in productivity will probably be of brief duration. In the longer run, there will doubtless be continued advance in man-hour output. The indications are that the electric utilities are planning moderate increases in capital expenditures over the prewar averages, and con tinued improvement of operating efficiency may be anticipated. It is possible, however, thatfproductivity will not continue to advance at the rapid pace shown before the war. Ultimately, the rate of increase in average requirements per industrial user may taper off and there may be some retardation of the growth of average consump tion of electricity for domestic use as well. Should this occur, it is probable that the rise in man-hour output will be more moderate than during the thirties. AGRICULTURE The long-term rise in productive efficiency in agriculture has been more moderate than in the other industry divisions considered. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PRODUCTIVITY CHANGES SINCE 193 9 913 Satisfactory information cannot be compiled on output per man-hour since data are not available on average hours per worker. An index of output per worker (including proprietors) is, however, available from 1909. This index shows fairly wide fluctuations from year to year. The relationship between production and labor input depends, in part, on weather conditions. Moreover, the tendency of workers to turn to agriculture in times of depression and to enter into nonagricultural employment in times of prosperity also makes for short-term fluctuations in output per worker. Nevertheless, there has clearly been an upward trend in productive efficiency. Between 1919 and 1939, output per worker rose about 25 percent (table 1). The major influences tending to raise productivity have been mechanization, particularly the adoption of the tractor, and improvement of farm practices, for example, the development of improved plant varieties, pest control, and the use of improved breeding and feeding practices for livestock. Output per worker rose 25 percent between 1939 and 1944 and declined only slightly between 1944 and 1945. This advance is due in part to favorable weather conditions and also to an increase in average hours per worker. However, the large wartime rise in output per worker also suggests the extent of “ hidden unemployment” in agriculture in the prewar period. It is worthy of note that the war time advance in productivity was achieved despite the restrictions on the production of new farm equipment. Expenditures on equipment during the period July 1940-December 1943 were approximately the same as during January 1937-June 1940. It is probable that there will be a considerable amount of mechaniza tion of farming operations. During the war, farm income was at a high level and production of agricultural machinery, restricted because of shortages of materials, was far below the demand for such equipment. Equipment purchases will now be made at an increased rate, and many new types of machines will probably be introduced. An improved cotton picker has been developed which is said to be applicable in the major cotton-growing regions. This picker, or other models, may be adopted on a substantial scale in the years to come. Machines for thinning and harvesting sugar beets, another labor-consuming crop, may also find wide use. A variety of other machines will probably be used to a greater extent, among them improved corn pickers and hay balers. A number of new farm machines specially adapted to the needs of small farms have recentty been announced. Continued progress may be expected in the develop ment of superior plant varieties, improved methods of pest control, greater control of erosion, and better breeding practices. Thus, the upward trend of productivity will doubtless continue. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 914 M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 If jobs outside of agriculture are abundant, the number of persons engaged in agriculture will be lower than before the war and high productivity levels will be favored. Moreover, if there is reasonably high employment and if farm wages are high, mechanization will be extended rapidly; if agricultural labor should become available at low wages, the rate of investment in new equipment would be smaller. Unit Labor Cost, 1939 to 1945 Output per man-hour, together with average hourly earnings, determines the wage payments made per unit of output, or unit labor cost. Unit labor cost may be derived as the ratio between the total wage bill and total physical output; or it may be derived as the ratio between wages paid per man-hour (average hourly earnings) and output per man-hour. Thus, unit labor cost varies directly with average hourly earnings and inversely with output per man-hour. If output per man-hour is advancing, unit labor cost will decline unless there are increases in average hourly earnings larger than the gains in output per man-hour. Conversely, if average hourly earnings increase, unit labor cost will also rise unless the increase in average hourly earnings is overbalanced by gains in output per man-hour. Unit labor cost does not show the proportion of the total value produced which is distributed as wages. Moreover, for any industry, it shows changes in only one cost factor—labor. To analyze changes in total production costs, it is necessary to have information on changes in materials costs and in overhead costs, as well as in labor costs. The importance of labor cost on the entire cost structure varies from in dustry to industry, depending on the proportion of labor cost to total cost. In 1939, for example, wages made up only 5 percent of the total value of products for petroleum refining but 36 percent for fullfashioned hosiery. It is obvious that any specified change in unit labor cost would have a much less significant effect on total costs in petroleum refining than in hosiery. Of course, it must also be recog nized that a change in unit labor cost for one industry (for example, coal mining) may result in changes in the cost of materials for other industries (for example, steel and electric utilities). Table 4 shows indexes of unit labor cost for those manufacturing and nonmanufacturing industries for which data are available. In most of the 32 manufacturing industries, unit labor cost increased from 1940 through 1944. There were substantial increases in wage rates and a general lengthening of the workweek to 48 hours, with premium payment for the hours over 40. A reversal of trend is ap parent in 1945, for in that year unit labor cost declined in 11 industries, despite higher wage levels in all the industries. Since there was sub https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PRODUCTIVITY CHANGES SINCE 193 9 915 stantial variation among different industries in the extent of changes in both average hourly earnings and output per man-hour, there is a wide dispersion in the changes in unit labor cost between 1939 and 1945. In two industries, unit labor cost in 1945 was below the 1939 level. In others, the increase in unit labor cost from 1939 to 1945 ranged up to 80 percent. In the mining industries, the wartime increases in unit labor cost were generally smaller than in manufacturing. While average hourly earnings were substantially higher than in 1939, man-hour output was also greater. In iron mining, unit labor cost in 1945 was only 18 percent greater than in 1939; in coal mining and copper mining, wage payments per unit of output rose approximately one-third over the same period. The largest wartime increase in unit labor cost is shown for lead-and-zinc mining—67 percent from 1939 to 1945—where there was no gain in productivity. In both railroad transportation and electric light and power there were large gains in output per man-hour and smaller increases in average hourly earnings than occurred in most manufacturing indus tries. As a result, unit labor cost declined in both industries. In railroad transportation, unit labor cost fell 17 percent from 1939 to 1943. Reduced productivity and increased hourly earnings resulted in some rise thereafter, but unit labor cost in 1945 remained 5 percent below the 1939 level. The decline in unit labor cost was even more marked for electric power. In 1945, wage payments made per kilo watt-hour of electric energy distributed were 28 percent lower than in 1939. It is to be emphasized that the significance of unit labor cost change cannot be judged without references to other economic changes. One important comparison is that between unit labor cost (the amount paid for labor per unit of product) and prices (the amount received per unit of product). In the limited number of industries where data are available, there is no evidence to suggest that increases in unit labor cost overbalanced price adjustments in the war period, a conclusion buttressed by the substantial profits reported by all branches of industry. It is obvious that changes in unit labor cost, as in other cost factors, have an influence on prices. However, it is important to recognize that changes in price levels do not always originate in response to changes in costs. The impetus for price changes may arise in other economic conditions, particularly changes in supply-demand relations. Moreover, the relationship between unit labor cost and prices is a reciprocal one. Increases in unit labor cost may result in increases in prices. But increases in prices, through their effect on the cost of living, may result in higher wage rates and increases in unit labor cost, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 916 MONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 T able 4. — Indexes of Unit Labor Cost in Selected Industries1 [1939=100] Unit labor cost Industry 1940 1941 1942 1943 1944 Beet-sugar refining___________ _ ____„___________ Boots and shoes__ ___ __________________________ Bread and other bakery products______________ ____ Cane-sugar refining______________ . . . . _____ ____ Canned and preserved fruits and vegetables_________ Canned and cured fish_______________ . ________ Cement____________ ____________ - . . . . . . . . . . Clay-construction products___ _______ ____________ 101.9 98.2 98.2 97.6 81.0 ■99.4 90.8 117.4 102.6 102,9 92.9 105.8 93.0 98.4 94.3 144.3 119.9 110.6 141.4 115.7 134.1 104.8 111.7 190.2 130.8 114.0 139.6 137.9 146.1 130.3 147.8 183.5 146.9 122.9 137.4 147.8 154.6 152.0 151.0 181.7 150.8 114.4 146.7 150.8 156.6 146.9 149.9 Condensed and evaporated m ilk___________________ C on fectio n ery___. . . . _ . . ________ _____ Cotton goods___________________________ ______ _ Fertilizers________________________ ____________ . Flour and other grain m ill products________________ Glass products._________ ____ ____________________ Hosiery____ ___________________________________ Ice cream_____________ ________________ . _______ Leather____ ____ _ . ____________ ______________ Lumber and timber products—Sawmills. ______ . . . M alt liquors______ _________________ _____ ______ 90.9 96.1 103.3 95.7 101.4 103.7 95.7 96.3 101.3 94.9 104.4 89.9 101.1 116.2 105.4 106.4 106.1 96.7 84.7 101.8 no. 3 103.6 110.4 117.2 135.8 132.1 126.8 114.3 102.7 79.5 110.2 137. 6 110.2 130.7 127.4 150.5 150.8 156.9 115.9 109.0 91.6 123.9 162. 7 124.3 134.2 127.8 161.1 159. 5. 166.2 123.3 112.4 92.0 127.8 175.1 130.6 131.8 135.4 174.4 160.8 160.3 112.1 112.5 95.1 132.0 Newspaper and periodical printing and publishing___ Nonferrous metals—Primary smelters and refineries... Paints and varnishes_____________________________ Paper and pulp. _ _ . _ _______________________ Petroleum refining.. _______________________ ______ Rayon and allied products______________ . ______ Slaughtering and meat packing___ ________ _______ Cigars.. . _________________ ________________ Cigarettes______________________________ _______ Chewing and smoking tobacco and snuff__________ _ Woolen and worsted goods_______ ______ _________ 98.6 95.3 103.2 99.4 97.8 92.2 98.1 103.4 105.2 100.6 98.5 111.5 97.3 106.2 99.7 89.2 107.8 108.4 103. 5 102.0 103. 6 127.4 111.5 124.8 116.1 90.1 123.3 118.2 111.7 121.4 141.7 112.3 143.3 117.5 143.4 134.2 100.5 131.9 135.9 113.1 137.6 146. 5 135.9 151.4 117.2 152.1 138.3 99.7 132.7 139.3 117.8 151.7 140. 5 140.4 155.9 115.5 152.9 143.7 97.2 126.4 133.0 119.3 160.0 144.3 96.7 98.4 85.3 101.5 109.1 107.5 100.1 95.7 114.1 119.2 114.8 110.9 109.1 128.2 151.2 126.4 120.7 127.0 141.9 172.7 131.7 123.4 118.9 133.7 167.2 132.3 134.5 118.0 134.3 166.6 95.4 93.7 90.8 85.9 82.8 78.1 83.1 65.9 88.6 9 5 .2 66.1 71.6 1945 Manufacturing 136.5 Nonmanufacturing Mining: Bituminous coal________________________ ______ Anthracite______________________ _________ Iron ore________ _______ _____ _ Copper—Recoverable metal_____________ _____ Lead and zinc—Recoverable metal_____________ Steam railroad transportation: Revenue traffic______________ _____________ Electric light and power___ ____ ______________ ____ 1 Fee f o o tn o te s to ta b le s 2 a n d 3. Significance of Productivity Changes Substantial increases in man-hour output will probably occur throughout industry during the coming years. This process of gradual improvement of productive efficiency will, as in the past, have repercussions on the entire economy. If unemployment is avoided, it will be possible to produce greater quantities of goods and services than ever before and to raise living standards substantially. Output per man-hour, together with average hourly earnings, determines unit labor cost—the wage payments made per unit of output. If average hourly earnings remain unchanged, unit labor cost is reduced as productivity is increased, and prices can be reduced without any decline in profits. Where there is competition, it is likely that savings in labor cost made possible by productivity https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 917 PRODUCTIVITY CHANGES SINCE 1 9 3 9 increases will be reflected, in lower prices, which benefit all cpnstimers. If effective competition does not exist, however, and if average hourly earnings are not increased, the result of gains in pioductivity may be an increase in profits. ’ '" Workers benefit through price declines, together with all other con sumers. A more direct way in which workers share the benefits of productivity gams is by means of wage increases. As output per man-hour increases, average hourly earnings may also inciease withr out any increase in unit labor cost and without any upward pressure bn prices or any reduction in profits. In 1939, unit labor cost in manufacturing industries was 44 percent lower than in 1919 and whole sale prices of manufactured goods, 38 percent lower. Average hourly earnings, on the other hand, were 28 percent higher. The basis for the wage increases and the declines in unit labor cost and prices was the large rise in output per man-hour. The gains in living standards made possible by productivity ad vance will be realized only if employment is maintained. Assuming that average weekly hours remain unchanged, this means that pro* duction and demand must increase year after year at a rate sufficiently great to accommodate both the increase in the size of the labor force and. the rise in productivity. It is sometimes argued that advancing productivity in itself will make it more difficult to achieve the desired volume of demand. Much depends, however, on the types of produc tivity changes and on the adjustments to those changes. If inflation can be avoided during the coming period, the economy should be in a relatively favorable position to absorb substantial productivity ad vances. The backlog of savings, the demand for consumer! durable goods, and accumulated needs for equipment are important current factors. The challenge may be whether the economy can adjust itself to increasing productivity, without suffering unemployment, once war-accumulated demands are exhausted. If we are successful in solving the problem of employment, advance in productive effi ciency can provide the basis for steady improvements in the level of living. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis , > .i ;i The Physically Impaired Worker in Industry1 THROUGHOUT the United States, during the week of October 6, 1946, press and radio carried stories certifying to the successful utili zation of physically impaired workers in industrial occupations. The fact that it was found desirable to resort to this national drive by means of an “Employ the Physically Handicapped Week” was strong indication that, in spite of known labor shortages, persons with serious physical impairments were finding it difficult to obtain employment. Before the war, many industrial establishments refused employment to impaired workers. By means of preemployment physical examina tions, the “undesirables” were weeded out. For various reasons, a large portion of industrial management insisted on hiring only the physically sound. During the stringent wartime manpower shortage, many of these exclusion policies were relaxed, and workers who under ordinary con ditions would have been refused employment were given jobs. In some plants these workers staffed entire assembly lines. As subsequent events proved, however, their employment was frequently regarded as an emergency measure at a time when industry was scraping the bottom of the manpower barrel. When the emergency was over, the need for their service disappeared. Either their jobs vanished during reconversion or they were replaced by able-bodied workers. Even in plants which had no specific exclusion policies, they were among the first to be fired because they had been among the last to be hired. A considerable number of establishments that employed impaired persons before the war found them to be good workers—provided they were so placed that their impairments were not handicaps. Many establishments that had refused to employ such workers before the war satisfied themselves during the war that this technique resulted in acceptable and frequently superior performances. But many others reverted to their earlier practices. Still others did not relax their hiring policies even during the war. How M any Impaired Workers ? How many seriously impaired workers are there? No one knows. The figures used publicly vary all the way from 5 million to 28 million. It is of interest, however, that as of August 31, 1946, the U. S. Employment Service had on hand a backlog of 215,331 applications from disabled veterans whom it had not yet placed in industrial em ployment. At the rate at which these veterans had been placed be tween April and August of 1946-—about 11,000 per month—it would take nearly 20 months to place this backlog. Between September 1 Prepared by Max D . Kossoris and Henry S. Hammond of the Bureau’s Industrial Hazards Division. 918 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PHYSICALLY IMPAIRED WORKER IN INDUSTRY 919 1945 and March 1946, placements averaged only between 7,000 and 8.000 per month. About 100,000 impaired veterans of World War I are now receiving rehabilitation under the GI Bill of Rights. A similar number of nonveterans are being supplied with vocational rehabilitation training. The total number of veterans with serious impairments is considerably in excess of 100,000, and, by general admission, the 100,000 non veterans receiving rehabilitation training is only a small fraction of the number requiring rehabilitation. Many seriously impaired per sons, however, do not require retraining, let alone rehabilitation. In the light of available estimates of the number of persons with serious physical impairments—totaling about 16 million or more—an estimate of about 5 to 7 million impaired workers who could be placed in industrial occupations does not appear unreasonable. This ex cludes the old and the young, as well as persons who would not nor mally be available for the labor market. But again, we do not know how many are now employed and how many more could be employed. A large segment of industry does not want to employ the physically impaired, and frequently cites these reasons for its position: The impaired are less efficient than the able-bodied; it is more difficult to transfer them from one job to another; they are more likely to lose time because of illness; they are more difficult to place satisfactorily; they are more likely to be h u rt; their employment involves hazards to their fellow employees; they increase the cost of workmen’s com pensation. Inquiry as*to Performance To what extent is industry justified in discriminating against the impaired worker? At the request of the Veterans Administration, the Bureau of Labor Statistics undertook to appraise the work performances of about 10.000 seriously impaired workers. Capitalizing the fact that impaired persons had found employment during the war period as never before and that marly of them were still at work, the Bureau studied the performance records of these workers in manufacturing industries. A committee of industrial physicians assisted in defining 10 specific types of physical impairments which were regarded to be so severe that they would raise serious difficulties for those seeking employment. Included were orthopedic impairments, such as the loss or severe limitation of use of an arm, leg, hand, or foot; partial or complete blindness; partial or complete deafness; severe deformity of the spine; arrested tuberculosis; compensated cardiacs; peptic ulcers; and epilepsy. An advisory committee (which, in addition to the industrial physicians, included members of industry and of labor organizations, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 920 MONTHLY LABOR REVIEW— DECEMBER 194 6 placement counselors, and other persons deeply interested in the problem) went over the proposed program carefully and assisted in the development of the scope, purpose, and methodology of the survey. The theory basic to the survey may be summarized briefly as fol lows: To justify his employment per se, in competition with “normal” workers, the impaired worker must demonstrate that he can hold his own. As a matter of intelligent placement policy, a worker should be placed on the basis of his capacity and ability, and these should be adequate to meet the requirements of the job he is to fill. If a job requires the use of two good arms and not the use of legs—or the use of only one leg—then the fact that the worker has only one leg is immaterial. In other words, his impairment would not be a disadvan tage to him in competition with other workers. Proof as to whether or not impaired workers, intelligently placed, were efficient, were absent no more than others, and were no greater accident risks, was to be supplied by industry’s own records. All findings were to be based on objective measurements, which in turn were to be based on data taken from production records, attendance records, injury records, and turn-over records. Subjective reactions, opinions, and testimonials were to be taken into account, but would not be permitted to influence the statistical measurements. The record should speak for itself. To rule out as many variables as possible, each impaired worker selected from the medical records as falling within one of the defined groups of impairments was matched against 2, sometimes 3, unim paired workers of about the same age, sex, and work experience, on the same shift, and performing the same job in the same department of the plant. Thus, the only basic difference between the impaired worker and his unimpaired coworkers against whom he was matched would be the factor of impairment. The ultimate measurements, of course, would have to be evaluated in the light of the placement practices and the work environment of each plant studied. Preliminary Findings Work performance.—By August 1, the performances of about 4,000 impaired workers and 6,500 unimpaired workers had been surveyed, m 47 plants engaged in a wide variety of industrial activities. While the number falling into any one impairment group was not large enough to offer adequate data for that group, the experience of the entire group of over 10,000 workers permits a fairly reasonable evalua tion of some of the employer opinions cited earlier. As a group, the impaired were 2 percent more productive than the unimpaired. This does not mean, of course, that every impaired worker is a good worker; but neither is every unimpaired worker a good worker. On the average, the impaired workers held their own. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PHYSICALLY IMPAIRED WORKER IN INDUSTRY 921 An analysis of the detailed data showed that 34 percent of the im paired were better than the unimpaired in the corresponding control group, 36 percent were as good, and 29 percent were poorer workers. Thus, 70 percent were as good or better. Absenteeism rates of the two groups were identical. Each lost 3.8 percent of scheduled working hours. Nor did the Bureau find any significant differences among the types of absenteeism. The rates, by reasons of absence (illness, personal business, tiansportation diffi culties, etc.), did not vary between the two groups by more than two-tenths of 1 percent. Although the data were not adequate at this stage to permit conclusions as to any one type of impairment, it was surprising to find that neither cardiac nor extubercular workers had lost any more time from work than had their fellow workers with whom they were matched. Injury experience.—One of the most serious objections to the em ployment of impaired workers is that they are greater accident risks than are the unimpaired. This objection takes three forms: (1) the impaired worker is more likely to be injured, (2) he is a menace to others, and (3) if he is injured, the workmen’s compensation cost is greater because the injury is superimposed on an existing disability or can aggravate the existing disability. To obtain as comprehensive a comparison as possible, both dis abling and nondisabling injuries were studied. In first-aid injuries per million hours worked, 1,228 were reported for impaired workers, as against 1,206 for the unimpaired—a difference of 22 in slightly over I, 200 injuries. But the amazing finding was that, in disabling injuries per million employee-hours, the impaired averaged only 8.3 as against II. 8 for the unimpaired. In other words, the accident record of the so-called “normal group,” doing exactly the same work, and exposed to the identical work hazards, was about 40 percent worse. One obvious explanation for this finding is that, having a serious disability, the impaired workers are more careful not to get hurt again. The comment of one plant manager is worth quoting: “Take a look at my shop. The impaired workers aren’t engaged in horseplay and chasing one another with air hoses. I t’s the unimpaired guys who do that sort of stuff and end up in the dispensary.” In none of the 47 plants studied did the Bureau find a single instance in which the existing impairment was a causal factor in an injury to the impaired worker, or in which an injury, when added to the existing impairment, resulted in permanent total disability. Nor was a single instance found in which an impairment was a causal factor in the work injury of an unimpaired worker. As to the question whether the injury aggravated the existing disability so as to result in higher work men’s compensation costs, the available data on injury cost were not tabulated. (They will be when the entire survey has been completed.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 922 MONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 The data revealed, however, that there was very little difference in average time lost per injury between the two groups. Medical examinations— All the 47 plants studied used medical examinations for their employees. As a matter of fact, plants which had no such examinations could not be studied because of the obvious difficulty of ascertaining the type and severity of impairments. But the character of the examinations varied widely, from the cursory type to the very exhaustive type including X-rays and a variety of laboratory tests. Very significant is the fact that several hundred other plants which had impaired employees could not be surveyed because they had no medical records and did not use medical examinations as part of their employment practices. It is not necessary, of course, that each plant have a medical department. That is plainly impracticable for small and for many medium-sized plants. But the fact that they lack medical records raises the questions of how such plants may be aware of an applicant’s impairment if it is not readily apparent, and how such applicants can be placed at jobs in which their impairments will not be handicaps. As far as it had gone, the survey indicated that the plants with inadequate medical examinations and without ade quate placement methods and job-requirement analyses—these characteristics frequently went together—did not fare as well as the other plants in the utilization of the impaired workers. Exclusion rules.—Among the 47 plants surveyed, exclusion rules varied widely. Only three plants had no rules of this kind. At the other extreme, one plant refused employment to persons with epileptic, diabetic, ex-tubercular, cardiac, hernia, and vision disabilities. The other 43 plants had exclusion rules somewhere between these ex tremes but they had them. Such rules, of course, applied only to new applicants. Consequently the impairments which would have barred new applicants frequently were found among the plant’s own employees; but in these cases the disabilities had developed subse quent to the workers’ entering into service in the plant. It was found, too, that the exclusion rules were not always strictly observed. Conversely, however, instances were found in which applicants weie barred from employment even though there were no specific rules for their exclusion. A considerable number of plants had tightened their exclusion rules since VJ-day, and at the time of the survey were unwilling to accept some of the impairment types which they had accepted during the war. As a result, some plants which had used impaired workers in sizable numbers during the war had very few such workers on their pay rolls at the time of the survey. In certain instances, of course, this was the result of a reduction in force, the impaired workers having been laid off first because they were the last to be hired. But https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PHYSICALLY IMPAIRED WORKER IN INDUSTRY 923 in many plants the reduction was the direct result of tighter exclusion rules. The emergency was over. Placement practices.—The survey disclosed great variations in placement practices. Matching the man to the job is far from general in industry. Only a few of the plants surveyed made use of compre hensive analyses of jobs and job requirements, not only as related to impaired workers, but as a tool toward the adequate placement of all workers. Some plants left decisions concerning the placement en tirely up to the foreman. If the impaired worker made out satis factorily, that was fine; if not, he was shifted to another job or was discharged. Between these extremes, placement practices varied widely. One of the more dramatic instances involved a man who handled steel drums with hooks attached to two artificial arms—and did a good job. It is important also to note that in the plants surveyed, which obviously were more sympathetic to the employment of impaired workers and were satisfied that they were desirable employees, the impaired workers constituted only about 5 percent of the total force. There is no reason to believe that, for industry generally, the percent age would be that high. Specialists in rehabilitation and retraining believe that if the im paired are to be utilized on the basis of what they can do—and can do well enough to hold their own in the competition for jobs—industry must be convinced that it is good business to employ them. It is not enough, they believe, to give the impaired workers jobs which they can perform, if they cannot do them well. Nor does it seem desirable to them to reserve for these workers the jobs of watchmen, janitors, or elevator operators. Few of the impaired workers, particu larly the veterans, want charity. They want to find their places as useful and respected members of the community. Whether they are afforded that opportunity depends on whether industry will accept the policy of hiring them for what they can do well in place of rejecting them because of what they cannot do. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Veterans Return to the Nation’s Factories1 THIS study is primarily concerned with veterans in manufacturing industries. It is an attempt to answer questions such as these: Which industries employ most of the veterans? Do veterans shift about from industry to industry, quitting job after job? What is the attitude of employers in the matter of discharging or laying off veterans, whether newly hired or reinstated on preservice jobs? Monthly repoits on the job experience of veterans in manufacturing covering hires, lay-offs, and quits, submitted to the Bureau of Labor Statistics by some 6,500 employers, employing moie than 3% million workers, form the basis of the present analysis. Which Industries Employ M ost Veterans ? The trend in employment of veterans of World War II in manu facturing industries between December 1945 and July 1946 was characterized by continuous gains. Despite the temporary declines during this period in general factory employment owing to shortages of materials, major labor disputes in basic industries, and seasonal factors, veteran employment doubled over the period, rising from 1.2 million in December to 2.6 million in July. (See table 1.) The increasing importance of relumed veterans in the industrial life of the Nation is demonstrated in the manufacturing industries by the changing ratio of veterans lo all employees. In December 1945, veterans were 9.3 percent of all factory employees but in July they constituted 18.4 percent. Veterans comprised 10.4 percent of all employees in the durable-goods industries and 8.2 percent in the non durable groups in December. The comparable percentages in July 1946 were 21.8 and 14.6. (See table 2.) Veterans constituted fewer than 15 percent of all employees in December 1945 in all the 19 major groups shown in table 2. However, in July 1946, at least 17 percent of the employees in 14 of the major groups were veterans, and in 10 of these groups the proportion was above 20 percent. Only in the 4 low-wage industry groups, which traditionally employed large numbers of women, was the proportion of veterans to all employees consistently low (apparel, tobacco, tex tiles, and leather). However, less than 10 percent of all veterans in manufacturing were engaged in these industrial groups. Although veteran employment continued to increase from December 1945 through July 1946, the distribution of veterans in the two large component divisions of manufacturing remained substantially the same. Fiom 51 to 59 percent of the veterans were employed in the 1 Prepared in the Employment Statistics Division by Ella Joan Polinsky under the direction of Clara F. Schloss. 924 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 925 VETERANS RETURN TO NATION’S FACTORIES durable-goods industries over 1he period. However, this apparent stability should not obscure the moderate but steady tendency for veterans to shift from employment in the nondurable-goods industries into the durable-goods groups. T able 1 .— Percentage Distribution of Veterans in Manufacturing Industries by Major Industry Group, December 1945—July 1946 1 Percentage distribution of veterans Industry group Dec. 1945 Jan. 1946 Feb. Mar. Apr. M ay June 1946 1946 1946 1946 1946 July 1946 Estimated number of veterans (in thousands)--------- 1,216 1,497 1,632 1,952 2, 210 2,385 2,462 2,611 All manufacturing, total-------------------------------- 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Durable goods. ____ - - - ------------- 53.8 55.4 51.3 55.1 57.6 59.2 58.9 Nondurable goods---------------------------------------- 46.2 44.6 48.7 44.9 42.4 40.8 41.1 100.0 59.1 40.9 Durable goods Iron and steel and their products------- --------- ----- 2 14.5 Electrical machinery------------------------------------- 4.9 10.7 Machinery, except electrical.---------- --------- ------ Transportation equipment, except automobiles------ 5.5 5.0 Automobiles------ ------ -------------- ----------------N or ferrous metals and their products-------------- 3.2 Lumber and timber basic products------- . --------------- 3.7 Furniture and finished lumber products------- --------- 3.2 3.1 Stone, clay, and glass products----------------------------- 13.8 4.9 11.4 5.3 5.9 3.4 3.9 3.4 3.4 10.1 3.8 10.8 5.3 6.0 3.1 4.3 3.8 4.1 14.6 3.8 10.7 5.1 6. 2 3.2 4.1 3.6 3.8 14.5 4. 5 10.9 5. 3 7. 9 3.2 4.2 3.4 3.7 14.4 4.9 n .i b. 1 9. 3 3.3 4.1 3.3 3. 7 14.4 5.1 11.4 5. 3 8. 2 3.3 4.1 3.3 3.8 14.3 6.0 11.3 5. 2 8. 9 3.3 4.1 3. 3 3. 7 5.8 1.6 2.0 11.3 .3 3.8 6.6 2.2 2.5 4.5 4.0 6.6 2.1 2.1 12.2 .3 4. 5 6.9 2.2 2. 7 4.8 4.3 6.2 6.0 2.0 1.7 1.8 1.9 9.8 10.7 .3 • .3 3.9 4.1 6. 4 6.0 2.1 2.0 2. 5 2. 4 4. 5 4.7 4. 0 4.0 5.8 1.6 1. 8 9.3 .3 3.7 5.8 1. 6 1. 8 9.2 .3 3. 7 5.8 2. 0 2. 3 4. 5 4.1 5.6 1. 7 1. 7 9.8 .3 3. 6 5. 6 2. 0 2. 2 4. 4 4. 0 Nondurable goods Textile-mill products and other fiber manufactures.. 5.7 1.9 Apparel and other finished textile products------ . . . 2.0 Leather and leather products. ----------------------------Food .. --- ----- --------— ------ ---------------------- 12.2 .3 Tobacco manufactures -----------------------------------Paper and allied products------------------------------------- 4.0 6.8 Chemicals and allied products------------------- --------- Products of petroleum and coal----------------------------- 2.3 Rubber products.. ------------------------------------------ 2.5 Printing, publishing, and allied industries-------------- 4.5 4.0 Miscellaneous industries-------------------------------------- 6. / 2.0 2.3 4.4 3. 9 1 Based on data collected monthly from some 6,500 reporters employing approximately 3.5 million workers. 2 Includes some ordnance in December only. Closer inspection of the component industry groups shows that some important shifts occurred, although the distribution of veterans remained fairly constant over the 8-month period. In December 1945—when a little over 1 million veterans were employed in manu facturing as a whole—only 5 percent were employed in the automobile industry. By July—when veteran employment in manufacturing rose to 2.6 million—about 9 percent of the total were working in automobile plants. Also, proportionately fewer veterans were employed in the highly seasonal food industries and in the chemical groups in the last 4 months of the period studied than iu the first 4 months. Except in February when the industry was strike-bound, the iron and steel group ranked as the largest industrial employer of veterans over the entire period from December 1945 to July 1946. Although the proportion of veterans to all employees in iron and steel doubled over the period, the percentage of veterans employed in this group 722250— 46------ 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 926 M ONTHLY LABOR REVIEW----DECEMBER 1 9 4 6 remained fairly stable in respect to the estimated number of veterans in all manufacturing (around 14 percent). In large measure, employment opportunities for veterans were better in those industries in which average weekly earnings exceeded $40. About half of the veterans in manufacturing were employed in 8 major industry groups in which weekly earnings averaged $45 or better over the entire 8-month period (iron and steel, machinery except electrical, transportation equipment, automobiles, nonferrous metals, petroleum products, rubber products, and printing and publishing). In December, only about 2 percent of all veterans were employed in industry groups in which earnings averaged over $50 a week (petroleum and coal products), but in July 1946, over a third of all veterans on factory pay rolls were in such industry groups.2 T able 2. — Veterans as Percent of A ll Factory Employees, December 1945-July 1946 1 Percent veterans of all employees Industry group All manufacturing___ _ _____ ___ Durable goods__________________ . Nondurable goods.. ________ Dec. Jan. 19452 1946 Feb. Mar. Apr. M ay June July 1946 1946 1946 1946 1946 1946 9.3 10.4 8.2 11.3 12.9 9.7 13.0 14.9 11.3 14.8 17.4 12.3 16.0 19.0 13.0 17.1 20.4 13.5 17.4 20.7 13.9 18.4 21.8 14.6 11.6 9.0 10.9 9.4 12.5 9.7 8.2 9.5 10.0 13.4 11.3 13.7 11.7 16.7 12.7 10.3 12.0 12.9 15.0 13.2 15.7 14.1 18.3 14.5 12.2 14.6 15.9 18.9 14.8 17.8 16.6 21.2 16.7 13.3 16.2 17.2 20.3 16.9 19.3 18.5 22.5 18.0 14.9 17.3 18.6 22.0 17.8 20.6 19.6 26.1 19.2 15.4 18.1 19.8 22.2 18.8 21.3 21.4 24.6 19.3 15.4 18.2 20.5 22.9 19.5 22.1 22.8 27.0 20.2 15.9 19.2 21.2 5.7 2.2 6.6 10.2 3.5 11.8 13.1 14.4 12.2 10.2 7.1 2.2 8.0 11.8 4.4 13.9 15.7 16.6 14.6 12.2 8.6 3.0 8.9 13.8 5.9 17.4 17.7 18.5 16.6 13.9 9.5 3.4 9.6 14.6 6.5 18.6 19.6 19.9 17.9 15.4 10.3 3.3 10.1 15.2 6.3 19.8 20.5 21.4 19.3 16.9 10.8 3.4 10.7 15.7 7.1 20.2 21.7 22.3 19.9 17.8 11.0 3.4 10.9 16.0 7.3 20.9 22.6 23.1 20.6 18.8 11.4 4.0 11.2 17.1 7 3 21 8 23.5 24.1 21.2 19.2 Durable goods Iron and steel and their p r o d u c ts.___ _ Electrical machinery. ___________ _ Machinery, except elect v eal______ Transportation equipment, except automobiles_____ Automobiles_______________ Nonferrous metals and their products _ Lumber and timber basic products Furniture and finished lumber products Stone, clay, and glass p ro d u cts________ Nondurable goods Textile-mill products and other fiber manufactures. Apparel and other finished textile products Leather and leather products.. . F ood .. _______ _ Tobacco manufactures. . Paper and allied products.. ____ Chemicals and allied products Products of petroleum and coal _ Rubber products____ Miscellaneous in d ustries____ ' Based on data collected monthly from some 6,500 reporters employing approximately 3.5 million workers. 2 Veterans also comprised 9.6 percent of all employees in ordnance. A considerable number of veterans were also employed in six indus try groups having average weekly earnings of less than $40 throughout the period (lumber, furniture, textiles, apparel, leather, and tobacco). About 17 percent of all veterans in manufacturing were so employed in December 1945. By July 1946, despite the doubling of veteran employment in these groups, the ratio to all veterans employed re mained unchanged (under 17 percent). Average weekly earnings increased even in these low-wage industries over the*period studied, 2As reports from cooperating firms utilized in this analysis do not give separate data on earnings of veterans the published monthly series on average earnings and hours of all production workers in manufacturing industries has been used as an indication of veterans’ earnings throughout this study. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis VETERANS RETURN TO NATION’S FACTORIES 927 generally accompanied by a drop in the hours worked. (See tables 1 and 2.) A special tabulation for the month tof July shows veterans as a percent of all employees in 64 manufacturing industries.3 Veterans comprised 1 out of every 5 employees in 35 industries and 1 out of every 6 employees in 15 additional industries. Average weekly earn ings in about half the industries for which veteran employment was tabulated ranged from $46.01 (electrical equipment) to $57.02 (petro leum refining), and in these industries veterans accounted for more than 18 percent of all employees. (See table 6.) Only in 10 industries which employed large numbers of women were veterans less than 15 percent of all employees. Except in the woolen and worsted industry and in rubber footwear (with veterans more than 13 percent of all employees), average weekly earnings in this group of industries followed the lower wage pattern characteristic of industries in which women predominate. Turn-Over Among Veterans Over-all employment alone, is not a sufficiently sensitive guide to gauge the reabsorption and readjustment of veterans to the industrial life of the Nation. Turn-over must also be carefully scrutinized from the standpoint of the special problems confronting veterans. The two main components of turn-over—accessions and separations—are analyzed separately to obtain a clearer picture of how veterans are getting on in industry. Veteran Hires In the earlier months of the period December 1945-July 1946, veterans formed a larger proportion of the accessions in manufactur ing—about 40 percent—owing chiefly to the acceleration of military discharges at the end of 1945 and in the first quarter of 1946. From May through July, veteran hires declined to a level closer to 30 per cent of all monthly accessions. Throughout the period studied, veterans comprised a greater pro portion of all accessions in the durable than in the nondurable-goods industries. From December through April they constituted at least 45 percent of all hires in the durable groups as compared with a range of from 27 to 37 percent in the nondurable-goods groups. In May, when hiring was curtailed as a result of the coal strike and freight embargo, veteran accessions in the heavy goods industries still com prised 39 percent of all accessions as compared with only 23 percent in the nonduri ble groups. (See table 3.) s Included are 17 of the 19 industry groups in all manufacturing. Break-down by industry is not available for tobacco and miscellaneous industries. The special tabulation is based on regular reports for July from some 6,400 cooperating firms, employing about 3.9 million workers. Data on accessions and separations of veterans by industry are compiled from the same reports. Comparable data are released m onthly for major industry groups by the Bureau’s D ivision of Employment Statistics. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 928 MONTHLY LABOR REVIEW— DECEMBER 194 6 Veteran Separations Total separation rates for veterans including quits, discharges, and lay-offs were consistently higher than for nonveterans in the 8 months, December 1945 through July 1946. Since quits represent at least three-quarters of the separations of veterans during this period, and higher quit rates are characteristic of new employees, the higher veteran separation rates should not be overemphasized. T able 3.— Veteran Accessions Compared With A ll Accessions in Manufacturina Indus tries, December 1945-July 1946 1 Percent veteran accessions of all accessions Industry group All manufacturing___ Durable goods____ Nondurable goods. D ec.2 Jan. 1945 1946 Feb. Mar. Apr. M ay June July 1946 1946 1946 1946 1946 1946 42.1 47.0 37.1 41.5 47.7 34.4 39.8 46. 2 34.1 38.4 45.1 30.2 37.1 44.6 27.4 31.7 39.2 23.3 28.2 34.0 20.9 29.1 36.2 20.8 57.2 36.4 60.2 31.1 49.8 44.2 33.4 33.6 43.2 48.0 32.3 63.6 52.0 53.0 48.5 37.9 38.3 49.5 48.8 32.2 60.3 49.7 58.4 43.6 38.0 42.9 38.8 54.6 34.9 56.6 48.8 37.1 42.3 36.3 38. 1 37.5 45.9 41.5 49.0 45.4 52.3 41.1 31.5 37.4 41. 7 43.4 33.2 46.7 40.2 50.0 39.4 27.2 29.4 40.7 38.7 27.5 39.0 39.6 34.2 32.9 24.6 31.3 30.9 38.3 26. 7 42.0 41.8 42.0 35.6 27.2 31.8 30.0 27.7 14.9 29.2 33.5 16.5 51.3 68.3 76.6 53.7 51.6 27.7 9. 5 27.2 36.1 21.3 48.4 63.0 82.4 49.1 48.3 27.1 10.3 23.7 39.2 14.7 49.2 66.2 81.2 47.5 40. 1 23. 5 10. 1 21.6 32.6 10. 1 46.8 58.1 74.2 45.3 40.2 21.8 7.2 19.0 28.3 9.5 43.2 54.7 68.9 44. 1 42.1 18.6 5.4 15.9 23.5 10.7 40.3 49.8 69.8 41.4 36.0 16.6 5.2 11.2 21.1 7.8 31.0 43.7 62.5 38.4 31.1 15.1 6.3 11.6 19.7 7.2 32.9 45.1 65.7 41.0 30.7 Durable goods Iron and steel and their products____________ . Electrical machinery________________________ Machinery, except electrical.________________ Transportation equipment, except automobiles Automobiles______________________________ Nonferrous metals and their products________ " Lumber and timber basic products________ Furniture and finished lumber products_______ Stone, clay, and glass products_______________ Nondurable goods T e x t ile -m ill p r o d u c ts a n d o th e r fib er m a n u fa ctu r e s A p p a r e l a n d o th e r fin is h e d t e x tile p r o d u c ts_________ L e a th e r a n d le a th e r p r o d u c ts ____ . Food________________________________: : :::: ::: ::: T o b a c c o m a n u fa c tu r e s ._____ ________________________[ P a p e r a n d a llie d p r o d u c ts________________ C h em ica ls a n d a llie d p r o d u c ts _________________ P r o d u c ts o f p e tr o le u m a n d c o a l________________ R u b b e r p r o d u c t s ____________________________________ ’ M is c e lla n e o u s in d u s t r ie s ___________________ --------------------1---------------vwv*,** ' ‘ U iu o u iu p o , o u u i o p u i t c i o c i j u j j i u y m g a p p iU A l l Veterans also comprised 41.3 percent of accessions in ordnance in December. Higher veteran quit rates reflect in part the problems and conflicts peculiar to this group of employees. It would be unrealistic to expect masses of men to make the transition from warfare to factory routines without some degree of shifting from job to job. Also, it is not yet known to what extent the introduction of up-to-date equipment and improved production techniques during wartime were responsible foichanges in employment patterns in the postwar period. It must be recognized, however, that with job simplification to speed production and to conserve scarce labor in a war economy, the content and re quirements of some jobs had undergone substantial alteration. Vet erans reinstated in preservice jobs in durable-goods industries, in which such changes were greatest, were confronted with different and generally less skilled jobs. . Other factors influencing job shifts by veterans include their desire to employ various new skills and aptitudes developed during their https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis V ETERA N S R E TU R N TO N A T IO N ’S FACTORIES 929 war service, and conversely, for some veterans, the discovery that the years of prolonged military service had impaired their peacetime skills. Special adjustment problems were posed by the younger veterans who had either never held jobs prior to military induction, or were drafted from first jobs in war plants where they had little opportunity to acquire useful peacetime skills. On the other hand, the lower involuntary separation rates for vet erans than for non veterans may be attributed in large measure to such factors as the legal job rights of veterans, and the reluctance of in dustry to discharge or lay off former members of the armed forces. The provision of the amended Selective Training and Service Act of 1940, that veterans reinstated under the act may not be discharged from their jobs for a period of 1 year after restoration, gives veterans as a group greater job security for that period, at least, than that possessed by nonveterans. Do Veterans Quit Job After Job ? Over the period December 1945-July 1946, proportionately more veterans than nonveterans quit jobs in manufacturing industries. The quit rates of veterans were consistently higher than for nonvet erans, and ranged from 54 to 61 per 1,000 veterans. Although veteran quits were higher than for nonveterans, the trend over the period of these quits in all manufacturing was similar to that of non veterans. For a period of 5 months (December 1945-April 1946) the veteran quit rate ranged from 57 (December) to 60 quits per 1,000 veterans (March and April). In May, it dropped to 54, the lowest rate in 6 months, but in July the veteran quit rate rose to 61, the highest rate for this group. The nonveteran quit rate of 41 in July was also a high point. Since veterans are new employees, it would be more appropriate to compare their quit rates with those of new nonveteran employees rather than with all nonveterans. However, as the necessary data are not available, comparison is made instead with the quit rates in manufacturing in wartime when new employees were constantly being recruited. If, for example, veteran quit rates of 57 per 1,000 veterans in December 1945 and 61 per 1,000 in July 1946 were compared with quit rates of all employees in the corresponding 8-month period from December 1943 to July 1944 (44 and 50 per 1,000 employees), the rates for veterans would not appear too different. If further com parison were made between veteran quit rates and those prevalent in typical war industries (such as aircraft, with quit rates of 52 per 1,000 employees in July 1943, 57 in August 1943, 61 in August 1944), the difference would appear even smaller. Proportionately more veterans quit jobs in the durable than in the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 930 M O N T H L Y LABOR R E V IE W — DECEM BER 1 9 4 6 nondurable goods component of manufacturing. The veteran quit rate in the durable-goods group varied over the period from 57 quits per 1,000 veterans in December to 69 per 1,000 in July. The quit rates in corresponding months among veterans in the nondurablegoods group were 57 and 49. Comments are not available from employers to explain the higher veteran quit rates in the durable-goods groups; to some extent they were occasioned by the major labor disputes such as those in automo biles, steel, coal mining, and transportation. For example, while in some States persons unemployed because of labor disputes are dis qualified for unemployment compensation, veterans quitting jobs in anticipation of strikes are eligible for special readjustment allowances under Federal law.4 Veterans quitting their jobs in 3 major heavy-goods groups ac counted for at least 30 percent of all veteran quits over the entire period studied (iron and steel, machinery except electrical, and auto mobiles). Approximately another 14 percent of the veteran quits occurred in the lumber and furniture groups, which also had the highest veteran quit rates in the 8-month period. Veteran quits in the food and textile groups accounted for about half the quits in the nondur able-goods component. (See table 4.) T able 4. —Quit Rates Among Veterans in Manufacturing Industries, December 1945- July 1946 1 Veteran quit rates Industry group All manufacturing____ _ ___________ Durable goods____ . . _____________________ Nondurable g o o d s... ______________________ Dec.2 Jan. 1945 1946 Feb. Mar. Apr. 1946 1946 1946 M ay June July 0946 1946 1946 5.7 5.7 5.7 6.0 6.1 6.0 5.7 5.6 5.9 6.0 6.0 5.9 6.0 6.3 5.6 5.4 5.6 5.1 5.4 5.8 4.7 6.1 6.9 4.9 Iron and steel and their products_______ . . . __ _. 5.5 Electrical machinery_____________ _ . . . ___ 3.2 Machinery, except electrical_____________________ 4.8 Transportation equipment, except automobiles_____ 5.3 Automobiles_______________ . . . . . . 5.3 Nonferrous metals and their products______ . 6.1 Lumber and timber basic products__________ . . 10.2 Furniture and finished lumber products . . . 10.0 Stone, clay, glass, and their products______________ 5.4 5.7 3.9 5.0 7.6 4.7 7.2 9.9 9.7 5.5 4.8 3.5 4.8 6.1 3.5 6.3 9.0 9.8 4.6 5.5 4.1 5.1 6.1 4.3 6.7 10.3 11.6 4.9 5.9 3.7 5.4 5.2 6.6 5.8 11.1 11.6 6.0 5.2 3.4 4.5 5.7 4.7 6.2 11.9 9.8 5.4 5.4 3.6 4.4 5.6 5.5 5.9 11.4 9.8 6.0 6.3 3.5 5.3 5.7 8.6 6.7 12.3 11.1 7.0 Durable goods Nondurable goods Textile-mill products and other fiber manufactures.. Apparel and other finished textile products . . ___ Leather and leather products___ Food. ____________ ______ Tobacco manufactures . . . . Paper and allied p r o d u cts_____ Chemicals and allied products____ ____ Products of petroleum and coal_____________ Rubber products_________ Miscellaneous industries____ . 5.6 1.8 3.6 8.4 6.8 6.2 3.6 2.7 9.0 2.6 6.8 4.5 4.4 7.7 6.7 8.0 4.2 3.5 7.2 3.0 6.8 4.6 4.2 8.6 4.1 6.1 3.7 2.0 6.6 3.0 6.9 7.8 5.0 7.3 2.6 8.0 3.8 2.4 6.2 3.4 6.5 5.5 4.5 6.7 4.3 8.2 3.9 2.3 5.8 4.1 6.4 5.1 3.8 5.5 3.6 7.7 3.7 2.2 5.4 3.7 5.6 4.8 3.0 5.1 3.1 6.5 3.7 2.5 5.4 3.8 6.0 4.7 3.7 5.1 5.3 7.0 3.8 2.6 6.1 4.0 Nonveterans—All manufacturing. 3.7 4.0 3.5 3.9 3.9 3.8 3.6 4.1 1 Based on data collected from some 6,500 reporters employing approximately 3.5 million workers. 2 Veteran quits in ordnance included in December only. * See Protection of Veterans’ Unemployment Benefits During Work Stoppages in N ew York, in M onthly Labor Review, M ay 1946, (p. Jjjg), for an example of a State law. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis V ETERA N S R E TU R N TO N A T IO N ’S FACTORIES 931 Quit rates were obtained for nonveterans in the 10 selected industry groups in which two-thirds of all veterans in manufacturing were employed in July 1946. Veteran quit rates were higher than for nonveterans in all of the groups. In 4 groups, veteran quit rates were practically double the rates for nonveterans (iron and steel, machinery except electrical, lumber, and rubber). In the petroleum products group, the rate of 26 quits per 1,000 veterans was almost treble the rate of 9 quits per 1,000 nonveterans. Only in food and textiles were the rates for veterans less than 25 percent above those for nonveterans. A special tabulation of the quit rates of veterans in all 64 industries in the sample is given in table 6. Veteran quit rates in the 42 durablegoods industries ranged from 16 per 1,000 (communication equipment) to 144 (sawmills). In the 22 nondurable-goods industries, veteran quit rates were considerably lower, ranging from 11 per 1,000 veterans (full-fashioned hosiery) to 81 (cotton). The rate in cotton, of 81 veteran quits for every 1,000 veterans employed in the industry, was the highest in all nondurable-goods industries and was also above the rates for veterans in three-fourths of the durable-goods industries. ? Are Veterans Being Fired Proportionately fewer veterans than nonveterans were discharged or laid off in the 8-month period, reflecting in large measure the co operation of employers in keeping veterans on industry pay rolls. In December 1945, when 10 out of every 1,000 veterans were involun tarily separated, the corresponding rate for nonveterans was double. However, in July 1946, when the veteran rate was 11 per 1,000— the lowest involuntary separation rate since December 1945—the corresponding rate for nonveterans was only slightly higher (12 per 1,000 nonveterans). The involuntary separation rates of veterans approximated those for nonveterans in July partly because of the ‘'superseniority” decision of the United States Supreme Court.5 According to the decision, the year’s guaranty against discharge without cause (under the Selective Training and Service Act) protects the veteran against lay-off only within the established seniority system. It does not extend to veterans preference over nonveterans with greater job seniority. Despite various preferences extended to ex-GI’s, veterans as a com paratively younger group in the labor force than persons past military age, have in many cases been unable to accumulate job seniority equal to that of nonveterans. s See decision (M ay 27, 1946) on “superseniority” of veterans in Fishgold. v. Sullivan Drydock and Repair Corp., in M onthly Labor Review, July 1946 (p. 98). For background of this ease, see also issues of M onthly Labor Review November 1945 (p. 993), M ay 1946 (p. 760), June 1946 (p. 920). For other decisions on sen iority rights of veterans see: Olin Industries, Inc. v. Barnett et al., M onthly Labor Review, April 1946 (p. 618); Droste v. Nash-Kelvinator Corp. et at., M onthly Labor Review, April 1946 (p. 619); Whirls v. Trailmobile Co., M onthly Labor Review, March 1946 (p. 437) and June 1946 (p. 919). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 932 M O N T H L Y LABOR RE V IE W — D ECEM BER 1 9 4 6 Over the period studied, between 60 and 75 percent of all the lay-offs and discharges of veterans occurred in the heavy industry group. Approximately 50 to 60 percent of these separations took place in four major durable-goods groups which reported basic raw material shortages in some of the months; i. e., iron and steel, machinery except electrical, transportation equipment, and automobiles. In the nondurable-goods component from February through July, the food industry accounted for about half of the veterans fired or laid off. In June 1946, the lay-off and discharge rate for veterans was 44 per 1,000 which resulted largely from livestock shortages and uncertainty as to the fate of price control of meat. The corresponding rate for nonveterans in June was 63 per 1,000. (See table 5.) T a b l e 5 . — Involuntary Separation Rate of Veterans in Manufacturing Industries, December 1945—July 1946 1 Veteran involuntary separation rates Industry group Dec.2 Jan. 1945 1946 All manufacturing ................. . ............... Durable goods_________________________ ____ Nondurable goods........................................................ Feb. Mar. Apr. May June July 1946 1946 1946 1946 1946 1946 1.0 1.3 .6 2.0 2.5 1.1 1.7 2.1 1.2 1.9 1.9 1.9 1.7 1.8 1.5 1.7 2.0 1.2 1.6 1. 6 1.6 1.1 1. 2 .9 .7 .7 .7 4.5 2.5 1.2 .5 .8 .5 4.2 1.6 1.3 5.1 1.7 2.0 .9 1.8 .5 1.3 1.6 1.8 4.9 3.0 1.5 .5 3.8 .4 1.2 1.2 1.2 6.5 2.9 1. 2 1.1 1.6 .6 .9 1.0 1.1 6.3 2.9 .8 .9 1. 5 1.4 .9 1.1 1.4 7.2 3. 5 1. 2 .6 1.1 1.5 .9 1.3 1.2 4.7 3.1 1. 0 .2 .9 1.2 .8 .8 .6 3.2 2.5 1. 2 .3 .9 1.2 Textile-mill products and other fiber manufactures.. Apparel and other finished textile products. Leather and leather products.. . . . ___ F o o d ..____________ _____ Tobacco manufactures_______ ____ Paper and allied p r o d u c t s ...___ . Chemicals and allied products___. . . Products of petroleum and c o a l... Rubber products. ________ Miscellaneous industries____ .6 .3 .8 .5 .1 .9 1.0 .9 .4 .6 .7 .5 .3 .9 .2 1.1 1.6 1.3 2.0 1.5 .4 .7 .2 2.4 .3 .7 1.5 1.4 .6 .9 .3 .4 .2 5.0 0 .7 .9 1.8 .5 1.1 .5 .7 .2 3.2 .1 .5 1.1 .5 .5 2.2 .5 .3 .2 2.5 .5 .9 .9 1. 2 .7 .9 .3 .I .1 4.4 .2 .9 .7 .9 .5 .9 .4 .2 .3 1.8 1.3 .4 .5 .6 .3 1.0 Nonveterans—All manufacturing___ 2.0 2.5 2.4 2.4 2.1 2.0 1.7 1.2 Durable goods iron and steel and their products ________ Electrical m achin ery... _______ . ____ . Machinery, except electrical-. . ________ Transportation equipment except automobiles........... Autom obiles........... .. . ... _ Nonferrous metals and their products ____ Lumber and timber basic products___ Furniture and finished lumber products Stone, clay, and glass products________________ . . Nondurable goods 1 Based on data collected from some 6,500 reporters employing approximately 3.5 million workers. 1 Veteran involuntary separation in ordnance included in December only. • A tabulation was made of the involuntary.separation rates of nonveterans in July in 10 major industrial groups employing two-thirds of all veterans in manufacturing, and accounting for more than 60 per cent of the lay-offs and discharges. Except in the automobile in dustry (see footnote 5) for which the rate for veterans was consider ably higher than for nonveterans (25 per 1,000 veterans and 3 per 1,000 nonveterans), the involuntary separation rates in the remaining nine groups were lower for veterans than for nonveterans. The range of the veteran rates was from 3 per 1,000 (lumber and rubber) to 18 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 933 V ETERA N S R E T U R N TO N A T IO N ’S FACTORIES per 1,000 (food); the corresponding rates for nonveterans varied from 6 per 1,000 nonveterans (rubber) to 27 per 1,000 (food). The rates for the respective industrial groups were lower for veterans than for nonveterans by two-thirds or more in lumber, and paper products; by one-half in chemicals, rubber, and textiles; and by one-third in iron and steel, machinery except electrical, and food. The difference between the veteran and nonveteran rates in the petroleum product group was relatively small. A special tabulation was also made of the involuntary separation rates of veterans in July 1946 in the 64 industries in the sample. In the durable-goods industries, in which veterans were discharged and laid off at a higher rate than in the nondurable-goods industries, their rates ranged from less than 1 (pottery) to 69 (shipbuilding and repairs). Of the 22 nondurable-goods industries—having involuntary separa tion rates for veterans of from less than 1 (seamless hosiery) to 27 (grain-mill products)—only 3 industries had rates of 10 or more: leather (10), meat products (25), and grain-mill products (27). (See table 6.) T a b l e 6.— Labor Turn-Over Among Veterans in 64 Manufacturing Industries, July 1946 Industry group and industry Percent veterans of all em ployees Veteran separation rates (per 100 veteran employees) Total Quit Involun tary Durable goods Iron and steel and their products: Blast furnaces, steel works, and rolling m ills_____________ Gray-iron castings_________________________ ____ ___. Malleable-iron castin gs----------------- --------------- . . . ---Steel castings, _________ - ----------------------------------Cast-iron pipe and fittings __________________________ Tin cans and other tinware______________________ . . _.. Wire products.. _____________________________________ ------------ ----------- _. Cutlery and edge t o o l s . . . -----. . . Tools (except edge tools, machine tools, files, and saw s)----H ardw are... -------------------------------------------------Stoves, oil burners, and heating equipment______________ Steam and hot-water heating apparatus and steam fittings. Stamped and enameled ware and galvanizing __________ Fabricated structural-metal products.. . . . --------- ------Bolts, nuts, washers, and rivets_____ __________ _____ . Forgings, iron and steel________ . . . ---------- . ______ 25.9 18.4 17.8 18.8 26.7 15.2 23.4 17.0 20.4 15.2 22.4 20.4 19.7 20.6 19.9 21.2 6.0 9.6 9.5 7.7 10.5 13.6 3.4 5.9 8.6 7.5 9.9 7.7 10.1 8.1 5.3 7.8 5.5 8.6 9.2 5.6 9.9 11.6 2.9 4.9 7.8 7.3 7.9 7.0 9.2 6.4 4.9 5.9 Electrical machinery: Electrical equipment for industrial use__________________ Radios, radio equipment, and phonographs______________ Communication equipment, except radios_______________ 18.4 15.0 25.7 3.4 5.6 2.5 2.9 4.5 1.6 21.4 24.8 20.6 19.8 6.3 8.3 3.7 5.1 5.3 7.9 3.2 4.6 1.0 .4 .5 .5 18.1 21.1 22.7 4.6 5.8 5.4 4.0 5.3 4.8 .6 .5 .6 25.3 23.5 19.9 8.3 4.9 12.6 6.8 3.4 5.7 1.5 1.5 6.9 Machinery, except electrical: Engines and turbines . . _________ ____________ _ .. Agricultural machinery and tractors____________________ Machine tools_______ . . ------------------------------------------ . Machine-tool accessories ______ . . _______________ Metalworking machinery and equipment, not elsewhere classified____________________________________________ General industrial machinery, except pumps_____________ Pumps and pumping equipm ent.. . _________________ . . Transportation equipment, except automobiles: Aircraft___ ____ _____ _____________________________ Aircraft parts, including engines_________________ _______ Shipbuilding and repairs________________________ ______ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 0.5 1.0 .3 2.1 .6 2.0 .5 1.0 .8 .2 2.0 .7 .9 1.7 .4 1.9 ■: . .5 i.i .9 934 M O N T H L Y LABOR RE V IE W — D ECEM BER 19 46 T a b l e 6 .— L abor T u rn -O ver A m on g V eterans in 64 M a n u fa ctu rin g In du stries, J u l y 1946 — C on tin u ed Percent veterans of all em ployees Industry group and industry ’ Veteran separation rates (per 100 veteran employees) Total Quit Involun tary Durable goods—Continued Automobiles: Motor vehicles, bodies, and trailers_____ __ _ _ _ . Motor-vehicle parts and accessories __________________ 27.3 26.2 12.0 7.5 9.2 6.0 2.8 1.5 Nonferrous metals and their products: Primary smelting and refining, except aluminum and mag nesium _ _ ____ Rolling and drawing of copper and copper alloys_______ . _ Lighting equipment__ __ _ Nonferrous-metal foundries, except aluminum and mag _____ __ ________ _ ________ nesium _____ 22.4 20. 5 18.4 9.2 6.9 12.5 8.7 6.2 7.6 .5 .7 4.9 19.9 7.9 6.1 1.8 Lumber and timber basic products: Sawmills . _ _ ___ Planing and plywood m ills. _______________ _________ 15.4 17.8 14.6 8.5 14.4 8.0 .2 .5 Furniture and finished lumber products: Furniture, including mattresses and bedsprings. ________ 20.2 12.2 11.2 1.0 Stone, clay, and glass products: Glass and glass products ___ _____________________ ____ Cement . _ _ ____ . . . _________ . _ __ Brick, tile, and terra cotta_________ _______ . . . _ . . Pottery and related products. . .. _____ . 22.9 25.1 18.8 16.8 6.3 11.4 15.2 6.7 4.4 10.1 14.1 6.7 1.9 1.3 1.1 0 Nondurable goods Textile-mill products: Cotton. _ _ . . . ______________________ _ __ Silk and rayon goods ____ . . . _ ... . Woolen and worsted, except dyeing and finishing_________ Hosiery, full-fashioned.. _ __________ _ _ _ Hosiery, seamless . ._ _ _ _ . . . ____________________ Knitted underwear______________________ ____________ Dyeing and finishing textiles, including woolen and worsted. 10. 6 11.0 13.4 12.7 5.8 6.4 16.5 8.2 5.5 6.4 1.3 4.7 5.7 6.3 8.1 5.0 5.7 1.1 4.7 5.6 5.5 .1 .5 .7 .2 0 .1 .8 4.6 6.2 6.1 .1 3.1 2.1 2.0 .1 17.8 9.7 5.9 3. 2 4.9 3.1 1.0 .1 Food and kindred products: Meat products______________ . . . ___ __________ . Grain-mill products___________ . _ _____ . ________ . . 19.0 18.7 7.7 8.5 5.2 5.8 2.5 2.7 Paper and allied products: Paper and pulp_________________ _____________ Paper boxes._. . . . ______ __ _ ___________ . 23.5 17.8 7.4 7. 5 7.0 7.2 .4 .3 Chemicals and allied products: Paints, varnishes, and colors_____ ______________ _ Rayon and allied products___________ ________ Industrial chemicals, except explosives______________ 22.3 24. 6 25.2 4.6 3.1 5.2 4.2 2.7 4.6 .4 .4 .6 Products of petroleum and coal: Petroleum refining ................... .......... 24. 2 2. 8 2.3 .5 23.3 13.7 20.3 6.4 4.9 6.8 6.0 4.6 6.5 .4 .3 .3 Apparel and other finished textile products: M en’s and boys’ suits, coats, and overcoats___ M en’s and boys’ furnishings, work clothing, and allied gar ments_______________ _______________________ Leather and leather products: L eather._ _ . . . . ______ Boots and shoes_____ . ... _ _ _______ _ __ __________ __ Rubber products: Rubber tires and inner tubes______________ . . JRubber footwear and related products ___ . Miscellaneous rubber industries____ _ .. ___ _ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ... International Labor Relations The Twenty-ninth Session of the International Laboi Organization THE Conference of the International Labor Organization at Montreal, September 19 to October 9, 1946, is significant for the ratification of the agreement defining its relationship to the United Nations as a specialized international agency and establishing its affiliation with the Social and Economic Council. The ILO was organized in 1919 as a tripartite organization representing governments, labor, and management, and it has functioned effectively since that time in im proving labor standards and standards of living throughout the world. It was consequently of great importance that the place of the ILO should be defined in the scheme of new international organizations and institutions. During the intergovernmental ' discussions preceding the San Francisco Conference in the spring of 1945, ILO representatives con tributed substantially to a clarification of the objectives of the pro posed United Nations Organization and of the role of the ILO in any postwar international framework. Early in 1946, the ILO and the United Nations both appointed committees to negotiate a draft agreement providing for practical and efficient mutual collaboration. The draft agreement was approved by the Economic and Social Council in June 1946. It will become effective when it has been ap proved by the Assembly of the United Nations and will permit co operation between the ILO and the United Nations Economic and Social Council in promoting economic and social development, full employment, and higher levels of living. If improvement of economic conditions is one of the methods of achieving world peace, the Mon treal Conference marks an important step toward meeting that objective. In speaking to the Conference about the ratification of the agree ment between the ILO and the United Nations Organization, Senator Elbert D. Thomas, of Utah, one of the United States Government delegates to the Conference said: This great Organization, in collaboration with the Economic and Social Council of the United Nations and other appropriate international agencies, has a stake in the planning of full production and employment as well as in the expert work of employment organization. With the Director (of the ILO), the United States https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 935 936 M O N T H L Y LABOR R EV IEW — DECEM BER 1 9 4 6 realizes that close cooperation between the ILO and other international agencie; is necessary for the maximum effectiveness of all such bodies. It commends the wise arrangements for that collaboration proposed in the Director’s report. In no field will teamwork and cooperation be more necessary than in striving towards our goal. The winning of full production and employment cannot be attained by running our horses Broad Plan and Expert Organization—against each other around the global track. This run calls for double harness. Much of what it takes to organize full employment in expert detail is also needed to plan for it in the broadest terms. The excellent fact-finding facilities of the ILO provide basic data that are as essential to broad planning as they are to expert organizing for high living levels. The years of experience which the ILO has had and the wisdom of its tripartite membership should also contribute to this goal. Amendment of the ILO Constitution The 1946 Conference carried forward the work initiated at Phila delphia in the fall of 1944, continued by the Conference in Paris in 1945 and by a Working Party in London in January and February of this year, of amending the ILO Constitution. As a result, the Conference had before it for adoption a substantial number of significant amendments. They must now be ratified by member States. Since the United States is one of the eight countries of chief industrial importance, five of which must ratify amendments before they can take effect, ratification by this Government is of con siderable importance. Moreover, the proposed revisions are in close conformity with proposals and positions already taken by the United States, whose entire delegation supported the amendments. Some of the proposed constitutional changes merit brief discussion. (a) P rovisions fo r A p p lic a tio n o f C onventions and Recom m enda tions. The present Constitution provides that Conventions or Recommendations adopted by the Conference are to be submitted by member Governments to the appropriate national authorities for the enactment of legislation or other action. In the case of a Con vention, if the member obtains the consent of the competent authori ties it communicates a formal ratification to the ILO and reports annually to the ILO on the measures it has taken to give effect to the Convention. If a Convention is not ratified, or no action is taken on a Recommendation, no further obligation rests upon the member. Under proposed amendments, member States would have responsi bilities not solely for ratified Conventions but also for those which they do not ratify. In case of nonratification, however, the responsi bilities would necessarily differ from those described above, in which the member has agreed to accept the. obligations which a Convention lays down. The new obliga tions (which would apply to Recommenda tions as well as to Conventions) will require each member to report to the ILO the position of its law and practice in regard to matters dealt with and showing the extent to which effect has been given to the provisions of the Convention or Recommendation and, in the case https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IN T E R N A T IO N A L LABOR RE LA TIO N S 937 of a Convention, stating the difficulties which prevent or delay ratification. As a result of this extended responsibility, the ILO and all member Governments may expect to have a much clearer and truer picture of the actual standards in effect in each country—whether they be above or below the international levels adopted by ILO. It is felt that such extended reporting will put the United States, for example, in a much more favorable light than does a mere record of the Conventions ratified by this country, since their number is not great. A second important amendment deals with the special situation of Federal Governments in regard to their responsibilities for dealing with Conventions. The present Constitution permits a Federal Government, in which power to enter into Conventions on labor matters is subject to limitations, to treat Conventions as Recom mendations. This limits obliga tions in such cases merely to bringing the Recommendation before whatever agency of that government would have power to act on it. The new Constitution will require a Federal Government to assume the same responsibilities as a Unitary Government in regard to Con ventions which it considers appropriate for Federal action. It will be obligated to refer to its constituent States or Provinces for appro priate action Conventions which it does not deem as appropriate for Federal action. It is apparent that the contemplated reporting process will apply equally to Federal States and will result in reports on the entire body of State and Federal labor legislation coming within the scope of ILO Conventions and Recommendations. As adopted, the Federal States’ provisions for the new Constitution took the form of a clarifying amendment which was sponsored jointly by Australia, Canada, and the United States. Speaking to that proposal a United States delegate, David A. Morse, Assistant Secretary of Labor said: In undertaking this obligation, my Government is fully aware of and willing to assume the enormous administrative burden entailed in dealing with 48 State jurisdictions and reporting on their actions. In this connection it is worthy of note that in many instances our States have already surpassed the standards set by ILO Recommendations and Conventions. Never before, however, were we in a position to obtain formal reports on these matters. Consequently, the pro posed amendment will make possible more accurate reflection of the United States’ real position with respect to the application of Conventions. The United States Government representative cooperated with representatives of the United Kingdom and the Netherlands in the adoption of a joint amendment to Article 35 clarifying the proposals regarding the application of Conventions in nonmetropolitan terri tories, particularly those with elected assemblies responsible for their own labor legislation. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 938 M O N T H L Y LABOR REV IEW — D ECEM BER 1 9 4 6 « (b) A m e n d m en t concerning nonm etropolitan territories .—The Con ference also adopted an amendment authorizing each member respon sible for the international relations of nonmetropolitan territories to appoint, as additional advisers to each of its delegates, representatives of any such territory to advise in regard to matters concerning non metropolitan territories. Admission of New Members The Conference received requests to admit one new member (Lebanon) and to readmit two former members (El Salvador and Nicaragua). When they communicate to the Director of the ILO their formal acceptance of the obligations of the Constitution of the Organization, this action will bring the membership of the ILO to 55 nations. Conventions and Recommendations Concerning Protection of Children and Young Workers The Conference adopted three Conventions and two Recommenda tions for the protection of children and young workers. In the first ILO Conference held in 1919, two Conventions dealing with minimum age and regulation of night work for children in industry were adopted. No further action was taken with respect to standards for children in nonindustrial occupations until 1932, when a minimum-age Convention was adopted. In the Conferences held during the war years in New York and Philadelphia, emphasis was placed on the importance of extending protection through international regulation for all children. In the spring of 1945, the Office brought together a small group of government experts from 16 countries to advise on the next steps to be taken in this program. This group strongly urged that action be taken speedily, and in particular stressed the importance of moving forward in the field of medical examination for fitness for employment and the restriction of night work for nonindustrial workers. The Paris Conference in 1945 discussed Draft Conventions on these subjects and recommended that they be placed on the 1946 agenda. The Montreal Conference gave full consideration to these questions and adopted Conventions concerning medical examination for fitness for employment of children and young persons in industrial and non industrial occupations, and restriction of night work of children and young persons in nonindustrial occupations, as well as Recommenda tions on these subjects. The Recommendations include definitions and administrative principles and procedures which seemed too detailed for inclusion in a Convention. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IN T E R N A T IO N A L LABOR R E LA TIO N S 939 Labor Standards in Nonmetropolitan Territories Plans for establishing international agreement on labor standards in nonmetropolitan territories were initiated by the Governing Body of the ILO in 1943 and Recommendations as to such standards were adopted by the Philadelphia and Paris Conferences in 1944 and 1945. At the Paris Conference it was decided that the time might be ripe for the adoption of the standards in a more binding form. The Confer ence, therefore, requested the Governing Body to instruct the Inter national Labor Office to examine the provisions of the Recommenda tions and to select those which seemed most suitable for inclusion in Conventions and to place the question on the agenda of the 1946 Conference. Using the replies by Governments to a questionnaire, the Office prepared a draft statement of the basis for Conventions on labor standards in nonmetropolitan territories. The Office draft included the substance of the principal provisions contained in the Philadelphia and Paris Recommendations and, in addition, draft statements on minimum-wage fixing machinery, the protection of wages, and hours of work and annual holidays. A Committee, headed by Senator Thomas, reported on this subject. In approving this report, the Conference accepted the basis for drafting Conventions concerning (1) social policy in nonmetropolitan terri tories, (2) the application to such territories of international labor standards contained in 12 existing conventions, and (3) maximum length of contracts. The Conference also adopted five resolutions proposed by the Committee: (1) Drawing attention of member States to the urgent need of ratification and application of previously adopted Conventions on forced labor and on recruitment, contracts, and penal sanctions in the employment of indigenous workers; (2) placing on the agenda of the next general session of the ILO the consideration of Conventions based on the conclusions of the Montreal Conference; (3) inviting the Governing Body to take certain action regarding technical aid from the Office to Governments requesting assistance in studies of living conditions in the territories; (4) regular meetings to implement the proposed Convention on social policy, and (5) the establishment of an ILO Branch Office in Africa. Financial and Budgetary Matters Regulations providing for a finance committee consisting of one representative from each of the member Governments were approved by the Conference. This Committee will have responsibility not only for matters relating to the budget and for fiscal controls but also for decisions on certain administrative questions. The Conference de cided to continue the present scale of contributions by Governments https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 940 M O N T H L Y LABOR RE V IE W —‘-D E C E M B E R 1 9 4 6 to the ILO, pending the establishment of the United Nations con tribution scale. The scale adopted by the United Nations will not be binding on the ILO, but it will have great weight because the United Nations is giving thorough and expert consideration to the problem. It was indicated that the ILO scale should be reconsidered in time to apply to the 1948 budget. Forty-six member nations sent representatives, and two nonmember nations, the Philippine Kepublic and El Salvador, sent observers.1 There were 8 representatives of the United Nations, 5 representatives of other official specialized agencies, and 14 representatives of Pro vincial Governments among the 429 persons participating in the Conference. The only major nation not represented was the Soviet Union. The Future of the ILO Developments in the world labor situation during and since the war have emphasized the importance of the work the ILO has to do. Its place in the framework of the United Nations organizations is now generally recognized. Next spring, for the first time since the be ginning of the war, the Conference will be held in Geneva. The Honorable Trygve Lie, the Secretary-General of the United Nations, in addressing one of the plenary sessions said that the United Nations welcomes association with the ILO and looks to it as “an Organiza tion of proved efficiency to carry out one of the most important branches” of the work of the United Nations. i The United States Delegation to the Conference was composed as follows: Government delegates.—Hon. David A. Morse, Assistant Secretary of Labor, (Head of the Delegation), Hon. Elbert D . Thomas, Senator from Utah; Advisers and substitute delegates—Hon. Augustine B. Kelley, Congressman from Pennsylvania; Frieda S. Miller, Director, Women’s Bureau, U. S. Department of Labor; Adviseis from the U. S. Department of Labor were Clara M. Beyer, John S. Gambs, Beatrice McConnell, Louis Sherman, Faith M. Williams, and Thacher Winslow; from the U. S. Department of State, Frederic P. Bartlett, Alice M . McDiarmid, Murray Ross, and Bernard Wiesman; from the Bureau of the Budget, Walter Laves; from Ohio State Depai tment of Industrial Relations, Richard Tobin; from the Puerto Rican Insurance Fund, Guillermo Atiles Moreu; In charge of Senate Education and Labor Committee matters,Ethel Evans; Substitute Adviser, Millard Cass of the Department of Labor. ' J Employers’ delegate—Jrmes D . Zellerbach, Vice Chairman of the Governing Body of the ILO. Advisers:; John Meade, M . M. Olander, Thomas R. Reid, Charles E. Shaw, and James Tanham. Workers’ delegate.—Robert J. W att, member of the Governing Body of the ILO. Advisers: C. L. Dar ling, F. H. Fljozdal, V. S. Gautier, J. C. Lewis, Jennie Matyas, Joseph P. McCurdy, and John L. Spalding.) Mary M. Cannon of the Department of Labor and Millard Kenestrick of the Department of State served as secretaries to the Delegation. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Labor Requirements Labor Requirements in Southern Pine Lumber Production 1 IN ORDER to determine the volume of employment required to produce the necessary materials for the present housing program, or for any other major construction activity, the Bureau of Labor Sta tistics is conducting a series of man-hour surveys in the basic building materials industries. The present study 2 analyzes the man-hours required to produce lumber in 1945-46 and discusses some of the factors affecting labor requirements in the southern pine region. This forest area embraces most of the lower South and derives its name from the species of trees predominant in the area. The lumber production of this vast area constitutes about a third of the total production of the country, which is expected to reach about 30 billion board feet in 1946. It was found that a total of 41.2 man-hours of labor were required to produce 1,000 board feet of finished construction lumber in the southern pine region in 1945— 46. This is a substantial increase from the 30.7 man-hours which, according to a previous Bureau study,3 were required in 1935, and lends some support to the statement fre quently made that the task of meeting the huge current demand for lumber is complicated by a relatively low level of productivity. Processes and Characteristics of Industry Lumber is defined 4 as the product of the saw and planing mill not further manufactured than by sawing, resawing, crosscutting, passing lengthwise through a standard planing machine, and, for some pur poses, through a matching machine or molder. The basic processes of lumber production are similar in all the forest regions of the country. The trees are felled, limbed, and 1 Prepared by Eugene J. Lowther and Roland V. Murray, under the direction of Brunswick A. Bagdon, in the Bureau’s Division of Construction and Public Employment. This study was made in cooperation with the National Lumber Manufacturers Association, the U. S. Southern Forest Experiment Station, and the Southern Pine Association. 2 This is the third study in the series and covers the first section of an industry-wide study of the lumber and allied building materials industries. The first study covered labor requirements in cement production and was summarized in the September 1946 M onthly Labor Review (p. 355); the second study covered labor requirements in the production and distribution of concrete masonry units and concrete pipe and was summarized in the November 1946 M onthly Labor Review (p. 681). a Labor Requirements in Lumber Production, 1937, in M onthly Labor Review, M ay 1937 (p. 1136). Reprinted as Serial No. R. 529. * Lumber: Simplified Practice Recommendation R16-39 (U. S. Department of Commerce, 1940). 722250— 46 - https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 941 942 M ONTHLY LABOR REVIEW— DECEMBER 194 6 bucked (cut into suitable lengths), and the resulting logs are skidded to a bunching site. The latter is equipped with a portable facility for loading the logs on some type of vehicle which transports them to the sawmill. Here they are dumped into a log pond or yard from which they are carried as needed to the head saw, where they are reduced to boards, planks, or timbers of the desired thicknesses. This lumber is conveyed to the edgers and trimmers (special saws for squaring edges and ends to the desired dimensions), and out to the “ green chain” (conveyor leading from the last saw), where it is graded and sorted. It is then ready for seasoning (the reduction of the moisture content to increase strength and dimensional stability) in the dry kiln or seasoning yard. Finally, in the planing mill, the rough dry lumber is generally dressed smooth on two or more sur faces, and, frequently, is further processed to produce tongue-andgroove or shiplap edges, or certain other standard workings. The nature of the southern pine timber stand has, however, imposed certain very marked characteristics on lumbering in the region. Timber in this area is generally second- or third-growth, and occurs principally in small, scattered tracts. These two facts account for the great numbers of small producers in the region, and the limited use of the heavy, highly mechanized equipment found in those sections of the country, particularly in the Pacific Northwest, where sawlog diameters are very large and timber growths are dense. The impor tance of the small mill in the South is strikingly evident from figures presented in the most recent Census of Forest Products, which show that in 1944, mills sawing less than 1 million board feet a year accounted for 33 percent of all lumber produced in the South. In contrast, mills of this size accounted for only 3 percent of the total cut in the West, the other major producing area. Moreover, there is evidence that the importance of the small mill is increasing rather than declining, and that an abnormal increase took place during the war when the demand for lumber brought many individuals into the field. Thus, only 27 percent of the total production of the South in 1942 was cut by those mills sawing fewer than 1 million board feet, as compared with 33 percent in 1944. These small mills differ not only in size, but in basic type, from the larger mills. Generally speaking, a mill cutting fewer than a million board feet a year is of a portable type, operating in the midst of a small timber stand, and is readily movable to another stand when the supply of sawlogs has been exhausted. Such mills have no seasoning or planing facilities and produce solely rough green lumber. This has given rise to an important type of processing and marketing operation in the South—the concentration yard. Typically, these yards do no logging or primary sawing. Their entire production is developed from rough green lumber, purchased from “ peckerwood” https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LABOR REQUIREMENTS 943 mills5 in the surrounding countryside, which they season, dress, and market. In 1940 it was estimated by the U. S. Forest Service that there were in the lower South about 500 of these concentration yards, and in addition more than 500 stationary sawmills which operated as concentration yards; the number of both types of operations has almost certainly grown since then. Thus, it is evident that southern lumbering falls into two distinct groups—the peckerwood-concentration yard combinations; and the stationary mills, which generally have their own seasoning and planing facilities. The latter frequently own or control their own timber tracts, which are normally managed on a sustained-yield basis, the amount of lumber cut each year being held in balance with the amount of growth. Scope and Method of Survey To obtain the data on which the current study is based, a Bureau representative visited 47 medium and large southern pine mills selected for survey through consultation with the Southern Forest Experiment Station and the Southern Pine Association. However, 11 of these plants did not maintain suitable records for the purpose of this study, and 8 more were found unsuitable for inclusion for reasons such as specialization in other than lumber production and extreme irregularity of operation. The study is therefore based on data from 28 medium and large southern pine mills, a sample which leaves something to be desired particularly with respect to coverage among the small mills. The sample is, however, believed to be wellbalanced with respect to geographic dispersal, types of operation and equipment, and variety of product. Man-hour information—from estimated rather than recorded figures—for some of the items needed was, in fact, obtained for about a dozen of the portable mills. This material is presented separately and is not included in the general averages. It is doubtful that data could be obtained for a representative sample of small mills, because the great number of these plants, the remote locations of many of them, and their frequent shifts of location make the problems of field coverage exceedingly difficult. More serious is the fact that only exceptional mills of this category maintain records of the type needed, and in these cases both management ability and equipment are likely to be well above the average for all small mills. The 28 plants surveyed were located in Alabama (3), Arkansas (5), Georgia (3), Louisiana (3), Mississippi (7), and Texas (7). The sample included 1 plant which, although it had a stationary sawmill in its yard, was at the time of the survey operating solely as a concen tration yard, and 1 concentration yard which had facilities for this type of operation only. The total production in these 28 mills was 8 A term commonly used for the type of small portable mill described. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 944 M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 at the rate of about 33 million board feet per month, and was dis tributed by type of product approximately as follows: Percent of production All types of products 1__________________________________ 10 0.0 Rough green lumber____________________________________ Rough dry lumber______________________________________ Dressed lumber_______________________________ Center-matched and shiplapped lumber__________________ Flooring_______________________________________________ Miscellaneous (including molding)and unspecified_________ 9. 2 11. 4 50. 0 16. 2 2. 6 10. 6 1 Arranged approximately by degree of finish. At each plant, the field representative transcribed from operating statements and pay-roll records data relating the number of board feet processed to the number of man-hours worked, in each major department, in a period of normal operation during the latter part of 1945 or early in 1946. Obtaining separate production figures for each depaitment was particularly necessary in this industry because of the frequent wide variation in quantities processed through the various operations of a mill within the same period. This was partly because of the introduction into the manufacturing process of material initially processed elsewhere (e. g., use of purchased logs or rough green lumber), and partly because of conditions which make it ex pedient to process more material in one department than in another (e. g., during unfavorable weather, logging production may be at a low level, while the sawmill is working out of a large supply of logs in the pond). Man-hour requirements per 1,000 board feet of production for each department were established by dividing the number of man-hours worked by the number of thousands of board feet processed. The sum of these average departmental requirements is the total processing requirement. Man-Hour Requirements, 1946 The average man-hour requirements in 1946, by major process, in the production of lumber in the southern pine region, and the ranges in the sample plants surveyed, are presented below: Man-hour requirements per 1,000 board feet of lumber processed Aver Range in age sample plants All operations. 41. 2 0) Logging----------------------Sawmill_______________ Seasoning_____________ Planing mill___________ Shipping______________ Administration and sales 14. 6 9. 5 6. 7 6. 4 2. 3 1. 7 9. 5-19. 9 6-14. 2 2. 5-10. 6 1. 3-15. 0 0. 5 - 6. 2 0. 4 - 4. 4 6. 1 It is not feasible to show ranges of total requirements because of the number of plants which do not perform all operations. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LABOR REQUIREMENTS 945 The total requirements figure of 41.2 man-hours represents the average number of man-hours required to produce 1,000 board feet of the planed-lumber items constituting the output of the sample mills in 1945-46. A quite different result is obtained, however, by the simpler method of relating total man-hours worked to total board feet of finished lumber produced, during a specified period. This method was used in a survey conducted by the Southern Pine Association, which obtained from a sample of 59 mills the total number of man-hours, excluding administrative, worked during the year 1945 and the first 6 months of 1946, and the total number of board feet of production during the two periods, including that developed from purchased logs and rough green lumber. The total man-hour requirements per 1,000 board feet, obtained from these data by dividing the aggregate man-hours by the aggregate production, were 33.0 in 1945 and 34.8 in 1946. Tabulating the 1945-46 material collected by the Bureau in a similar manner gave an average of 33.7 man-hours, which is in reasonably good relation to the trade association’s figures, considering the differences between the two samples. These averages, which are substantially lower than the 39.5 man-hours (excluding administration) indicated in the above tabulation, represent the man-hour requirements for those operations, or parts of operations, performed by the sample mills.6 They do not represent over-all requirements for lumber production, since they do not include the hours of labor applied to purchased logs and purchased rough lumber before they reach those mills. As has been pointed out previously, it was not possible to obtain a sufficient amount of reliable data concerning requirements in the “ peckerwood” operations. Some partially estimated figures were obtained, however, from several of these mills, all of which were sub sidized by large-scale concentration plants. These figures indicated that the man-hours required for logging and sawing in these portable operations were 17.5 per 1,000 board feet, and that an additional 4.2 man-hours were needed to haul that quantity of the rough green lumber to the concentration yard. These requirements, totaling 21.7 man-hours, are roughly comparable to the 24.1 man-hours for logging and sawing shown above and emphasize the well-known fact that the efficiently operated portable mill offers certain advantages in opera tions in the small, scattered tracts of timber characteristic of much of the South. Some of these are economies in transportation (it is cheaper to haul rough green lumber than logs), reductions in overhead, and an increase in general flexibility. However, it should be emphasized that these small-mill require ments are based on data from a particularly efficient group of opera8 Concentration yards were omitted from both samples in arriving at the unit labor requirements by the method described in this paragraph. Inclusion of such plants would, of course, lower the averages still more, since all of the production of these mills is developed from the rough green stage. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 946 MONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 tions. Most of them were equipped with electrically operated car riages and were powered by Diesel engines. All were under the close supervision of parent companies which applied modern business methods to the integrated activity. It is therefore likely that require ments in the more typical “ peckerwood” mill average considerably higher than those shown above. VARIATIONS BY PROCESS It will be noted that the foregoing tabulation shows a fairly wide range of requirements in each of the operations. Specific reasons for these plant-to-plant variations are discussed below, but a general observation to be borne in mind is that few other industries embrace as many variables affecting labor requirements as does the southern pine industry. These include not only the wide variety of products of these mills-—from rough green lumber to such relatively highly processed planing-mill products as molding and flooring—but also extremes in production methods, from a rather primitive use of human and animal power in transportation to the use of the most modern types of straddle- and lift-trucks, automatic sorters, mechanical unloaders, and other labor-saving machines. Logging- Labor requirements in logging are primarily affected by natural factors; i. e., by the terrain of the aiea being cut over, by the character of the timber stand, and by weather conditions. (The undue effect of the latter factor was minimized by the selection of a period of normal operating conditions, but abnormally wet weather during the first half of 1946 in some southern areas had kept labor requirements for logging high during several months.) Thus, the felling and bucking of small scattered trees, the skidding of the logs over hilly ground or through thick underbrush, and the difficulty of getting a heavy logging truck from a marshy bunching site to a hard surfaced road, all tend to increase logging requirements in certain of the operations surveyed. Moreover, these adverse natural conditions in some cases make it impractical for southern loggers to use certain improved methods employed elsewhere. For example, only one of the plants surveyed used portable power saws exclusively in the woods—handsaws and axes being almost universally used in felling, bucking, and limbing. About a third of the sample plants had experimented with power saws, but reportedly had found them too heavy for efficient use on the small, scattered trees and in the dense underbrush typical of most of the areas. It may be, however, as some lumbermen believe, that failuies with the power saws in these cases were caused primarily by the improper training of the woods crews in their use and maintenance. In this connection, it may be noteworthy that the logging operation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LABOR REQUIREMENTS 947 which showed the second lowest man-hour requirement (11.7) was the one that used power saws exclusively. The method of skidding the log from the stump to the loading area is also frequently determined by local conditions. Thus, although tractor skidding is generally most efficient, operators in hilly areas, as in Arkansas, have found mule and horse teams better adapted to the terrain, and in the bayou region of Mississippi and Louisiana, there is still some use of oxen. The logging railroad has largely passed from the picture in the South; the Southern Pine Association reports that 98 percent of its members’ logs are hauled to the mill by truck. Once a truckload of logs reaches the highway, there is little variation in requirements for the haul to the sawmill, except insofar as distance is concerned. Sawing.—'The chief factors affecting man-hour requirements in the sawmill are the quality of the sawlog (the degrees of rot, crook, and taper existing), and its average diameter, the type of head-saw rig and other equipment, and the kind of lumber being sawed. The in fluence of the first item is discussed on page 950; at this point it need only be noted that as the size of fhe log decreases, the man-hour re quirements increase markedly. Types of head-saw equipment which reduce labor requirements significantly are the ‘‘steam nigger” (a mechanical arm which eliminates the work of 2 or more men in mov ing the log on and off the= carriage and turning it during sawing), and the electric set works (by means of which 1 man is able to replace 2 or 3 in controlling the dogs and blocks which hold the log in proper position on the carriage during sawing). The gang saw, which re duces a large cant or slabbed log to boards in a single operation, and which is an important factor in reducing man-hour requirements in some sections of the country (at some sacrifice of lumber quality) is not often seen in the South. On the other hand, the resaw, which reduces relatively heavy boaids produced by the head saw to desired thicknesses, is frequently encountered. The saving of labor in this resawing operation is not apparent to the layman who has not ob served the actual operation of the primary sawing of the log. How ever, the United States Forest Service has established that in the sawing of southern hardwood the addition of a resaw reduces total sawing time as much as 40 percent.7 The variation of sawing requirements with the type of lumber produced is readily apparent with respect to size, 1,000 board feet of 2-inch boards requiring obviously about half the sawmill labor needed for the same quantity of 1-inch boards. What is not so apparent is the effect on labor requirements of “ sawing for grade.” The increased work involved in the repeated movement of the log so as to secure the maximum amount of high-grade lumber is well illustrated, however, ’Effect of Resaw on Output of Single Band Mills in Southern Hardwoods (U, S. Forest Service, 1933), https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 948 MONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 by one of the mills included in the survey. The sawing requirements in this mill were the second highest of the entire sample (13.3 hours per 1,000 board feet), despite its use of the most modern equipment, including electric set works and band resaw. The explanation lies in the emphasis which this firm, manufacturing a widely known “ big mill” product, places on quality. Seasoning.-—Contrary to popular opinion, the reputable southern mills are not merchandising large quantities of green lumber in order to meet the current unprecedented demand, and the labor require ments for seasoning are substantial (see page 949). Typically, all pine is kiln-dried for from 48 to 72 hours, and hardwood is air-dried for from 2 to 4 months (in some cases, particularly with the hardwoods, a combination of the two methods is used). With either method, however, the actual process of reducing the moisture content of the green lumber accounts for few man-hours, the greatest labor require ments arising from the handling of the lumber in the yard. It is also, presumably, in this handling that the greatest variations in seasoning requirements occur. One phase of the handling problem is the move ment of lumber about the yard, for which the equipment in the plants visited ranged from hand-pushed 2-wheel dollies to the most modern types of straddle- and lift-trucks. The use of the latter vehicles represents perhaps the greatest stride in the reduction of labor re quirements that the industry has made in recent years. The straddletruck is the more widely used. It is a high-bodied truck designed to straddle a uniform “ package” of lumber, lift it off the ground, and carry it beneath the chassis rather than on it. At present, this equip ment is found only in relatively few of the larger mills, but a number of the operators surveyed reported that it had been ordered. Another aspect of the handling operation is the stacking of lumber (for either kiln- or air-drying), which appears to be almost exclusively a hand process in the South. The sample mill with the highest seasoning requirements (10.6 man-hours per 1,000 board feet) airdried its lumber by end-stacking for a month, followed by flat-stacking for a month, thus more than doubling its stacking lequirements. Planing.—It will be noted that the range of man-hour requirements for planing is wider than that for any other operation. Over threequarters of the plants surveyed, however, fell within a range of 2 man-hours above or below the average requirement of 6.4 man-hours. The extreme cases represent actual but unusual planing-mill opera tions. Lowest requirements (1.3) were found in a “ mill” which con sisted of a single planer located in a shed adjacent to a railroad siding. Boards of a standardized size were fed from the surrounding drying yard into this planer and pushed by the following boards along a trough leading out of the shed and into a boxcar. This operation represents the minimum of planing-mill processing—the mere dressing https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 949 LABOR REQUIREMENTS of the board to the smooth surfaces required for most lumber uses. On the other hand, the planing mill requiring the maximum number of man-hours (15.0) was also the plant producing the widest variety of highly refined products, including packaged trim and hardwood flooring. This planing mill was composed of a battery of machines, including resaws and ripsaws, center- and end-matchers (for cutting tongue-and-groove joints in the edges and ends of the boards), molders, and sanders. Shipping.—With the current demand for lumber greater than the supply, shipping requirements generally do not include the operation of a “slick shed” (storage shed for dressed lumber), but represent chiefly the labor needed to move the lumber out of the planing mill and directly into a boxcar or truck. (Indeed, for this reason, planing mill and shipping labor were in several cases so closely related that it was not possible to separate them for the purposes of this study). On the whole, requirements for this department grouped closely about the average of 2.3 man-hours, three-quarters of the mills surveyed falling in a range of plus or minus 1 man-hour of this figure. Administration.—For the purposes of this study, administration was taken to include only the activities of the central office executive and clerical personnel. (Activities of departmental superintendents and foremen were included as indirect charges to the appropriate operation.) Except for the fact that sales-promotion activities were negligible—an expected result of today’s marketing conditions—the study developed little of interest in connection with requirements in administration. , Comparison of Requirements 1935 and 1946 In 1935, the Bureau of Labor Statistics conducted a survey of labor requirements in the production of a number of building materials in the forest-products group, which included southern-pine planing-mill lumber. The figures developed in that study appear roughly com parable to those obtained in the current survey. Man-hour requirements per 1,000 board feet 19351 191,0 All operations____________________________________ Logging_________________________________________ Sawmill_________________________________________ Seasoning_______________________________________ Planing mill--------- _--------------------------------------------Shipping________________________________________ Selling and administration------------------------------------- Percent of change, 1935 to 191,6 30. 7 41. 2 +34 19. 9 14. 6 9 .5 6. 7 6 .4 2. 3 1. 7 +34 +58 +40 +42 2 6- 0 2 4. 8 2 4. 5 2. 5 2. 0 —8 15 • Labor Requirements in Lumber Production, in M onthly Labor Review, M ay 1937 (p. 1136). 2 For comparability with the current report, a separate item of 0.4 hour of “miscellaneous manufacturing labor” was distributed among the indicated operations. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 950 MONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 The total requirements show a sharp increase (34 percent) over the 11-year period, and all departments, except shipping and administra tion, required a substantially greater number of man-hours per 1,000 board feet in 1946 than in 1935. It is believed that these figures on the whole reflect with fair accuracy the direction and magnitude of changes in labor requirements during the period covered, but caution should be used in applying these percentages to specific problems. The relatively small samples on which both surveys were based, the fact that the samples were not identical, and the differences in the methods used, all impose limitations on exact comparison between the findings. Factors entering into the increase in man-hour requirements since 1935 are of two classes, representing (1) conditions of a permanent or semipermanent nature and (2) purely temporary conditions arising from the excessive postwar demand for construction materials. Un fortunately, the nature of the data does not permit measurement of the influence of individual factors—they can only be listed and dis cussed. One of the long-range factors involves variations in the'average size of the sawlog. The U. S. Forest Service has established through a series of time studies that man-hours required to produce 1,000 board feet of lumber decrease sharply as the size of the log increases (until very large sizes of logs are reached), as the following table indicates: L abor R equirem ents in Logging a n d M illin g P in e L u m ber, b y Tree S ize , 1935 1 Man-hour requirements per 1,000 board feet Tree diameter (breast high) Logging Sawing Supervision Total Average- 2 6.6 7.4 0. 5 13.5 8 inches. 10 inches. 12 inches. 14 inches. 16 inches. v18 inches. 20 inches. 22 inches. 24 inches. 26 inches. 28 inches. 9.0 8.3 7.3 6.1 5.3 4.7 4.4 4. 2 4.2 4.4 4.9 10.3 10.0 8.8 7.7 7.0 6.6 6.3 6.0 6.0 6.1 6.5 .7 .7 .6 .6 .5 .5 .4 .4 .4 .4 .5 20.0 19.0 16.7 14.4 12.8 11.8 11.1 10.6 10.6 10.9 11.9 ‘ Condensed from table 1, p. 3, “ Operating Small M ills in Wartime”, U . S. Forest Service, 1943. Q T O r o d t l f S r l o w e r average logging requirement« shown in this table as compared to the logging „ i f H r bot-h 19t 61925 U reslllt primarily from the fact that the above data are based on small mill operations, in which log hauling requirements are at a minimum. According to informed opinion, the average diameter of sawlogs in the south has decreased perhaps 3 inches over the period between the two surveys. This factor alone could account for an increase of 2 or 3 hours in the logging and sawing operations. (Subsequent opera tions would be affected by this factor only to the extent that the out put from smaller logs might involve a higher percentage of smaller https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LABOR REQUIREMENTS 951 boards.) Moreover* these estimates of increases in labor require ments with decreases in tree size probably understate this factor, since recent surveys by the U. S. Forest Service indicate that the average volume of trees of similar diameter is less today than 10 years ago, owing to increased taper and other growth characteristics. A second long-term element in increased requirements involves the migration of experienced workers from the lumber industry to higher paying war industries. It is generally believed that many of these workers have no intention of returning to their former occupations. One of the larger mills in the current survey reported that half of the Negro families of the mill village had been lost through migration to the northern war plants, and that none were expected to return. Industry opinion is that the more resourceful and more capable workers make up the greater part of those migrating to localities offering better wage opportunities. It would seem that a stable supply of workers in this part of the lumber industry is difficult to maintain in competition with industries having better working condi tions and paying higher wages. The present situation with respect to wages is illustrated by the Bureau’s earnings tabulations for April 1946, a month during which much of the labor requirements data were collected. These indicate that whereas the national average of hourly earnings, in durable-goods manufacturing was $1.13, the average in sawmills and logging camps was 83 cents for the entire country and 65 8 cents for the southern pine region. One of the temporary conditions responsible for the increase in man-hour requirements is linked to this difficulty of obtaining skilled, reliable labor. It is the current policy in some mills not to lay off a valued worker during “down” or slack periods (caused by break-downs, shortages of logs due to adverse weather, etc.), but to maintain him on the pay roll to dissuade him from seeking another job. The effect of these “idle hours” on labor requirements may be considerable in some cases. Thus, the sample mill with the highest over-all require ments (58.4 man-hours per 1,000 board feet, as compared with an average of 41.2 for all mills surveyed) expressly gave this as the reason for its high ratio of man-hours to production. The second factor temporarily increasing unit man-hours was the current practice in most southern pine mills of processing the hard woods which occur intermixed with the pine stands. These hard woods had not been previously considered merchantable, since they were of too low a grade for furniture and flooring and too hard for construction purposes. The heavy demand for lumber made it temporarily profitable to market this material. Thus, hardwood •constituted about 22 percent of the total production of the mills sur* Since this average is based principally on data from the larger stationary mills, it is believed that it somewhat overstates average earnings for the entire industry to this area. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 952 M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 veyed. Not all of this was of the low-grade type, however. Two mills, in which hardwoods accounted for 29 percent of production, normally manufacture a higher grade of hardwood lumber, but could not segregate their pine- from their hardwood-processing requirements. There is little doubt in the minds of practical lumbermen that hard wood requires more man-hours of processing than pine, although the statistical data supporting this view are scanty. Surveys have been made 9 which tend to establish records of higher requirements for southern hardwood, but these have compared processing hours in the true Delta hardwood area with those in the pine area, which is not an entirely satisfactory comparison for the present purposes. None of the mills in the current survey maintained separate hardwood manhour records, although 1 of the 2 mills producing a high grade of hardwood had maintained such records up to 1942. Its records for 1942 indicated that logging required 15.1 hours per 1,000 board feet for hardwood as against 11.2 for pine. These figures reflect the difficulty of skidding and hauling the heavier hardwood log over the more difficult terrain where these woods generally oc^ur, as well as that of cutting the denser wood. The requirements for milling, which apparently includes sawing, seasoning, and planing, were 31.7 hours for hardwood and 28.6 for pine. To offset all these factors tending to increase labor requirements over the 11-year period, there were few, if any, which tended to decrease them. Widespread use of the newer types of equipment might have had this effect, but their adoption was discouraged by the relatively low wage rates which have prevailed in the South, and by the type of timber stands. Several of the operators interviewed predicted, however, that rising minimum-wage rates would force the mills to lower their costs through use of the new mechanized devices. In the two departments shipping and administration, unit man hour requirements decreased slightly over the 11-year period. It is believed that both of these decreases are attributable to the fact that fewer functions are currently performed in these departments than under normal conditions. As previously pointed out, shipping today consists essentially of moving lumber out of the planing mill and into a waiting freight car or truck. As to administration require ments, while the 1935 figures were obtained from firms employing a full selling staff, none of the mills in the current survey reported any activity of this nature. 8 For example, Primary Wood Products Industry in the Lower South (U. S. Forest Service, 1940), pp. 17-18; and the 1935 requirements study by the Bureau, previously referred to. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LABOR REQUIREMENTS 953 Supplementary Requirements One of the purposes of this series of studies is to estimate the total number of man-hours of labor represented by a unit of the specified building material delivered and ready for use on the construction site. This estimation of over-all requirements is simplified in the case of southern pine lumber production by the nature of the industry. Since it is a basic extractive industry, there are no requirements to be added for raw-material production. (A considerable variety of such materials as lubricating oils and greases, lumber-treating chemicals, etc., are consumed in the production of lumber, but no allowance has been made for such items, nor for the depreciation of machinery, in these studies.) Again, power requirements, which represent a substantial portion of total requirements in some industries, are negligible in the pine-lumber area, because practically all the fuel used to fire the boilers in the mills studied was sawmill waste in the form of slabs, trimmings, and edgings. This, indeed, was the only use to which waste material was put in the sample plants, with the exception of a negligible local sale of waste lumber for firewood. None of these plants engaged in the manufacture of such byproducts as lath, wood flour, or briquettes, which have reputedly been found profitable by some operators. The data necessary for estimating roughly the man-hours required to transport 1,000 board feet of lumber from the mill to the construc tion site are available in Bureau publications. A study of require ments in the rail transportation of construction materials 10 developed that the average haul of a ton of lumber required 3.8 man-hours of labor. The transportation of 1,000 board feet of southern pine lumber, which weighs about 1% tons, therefore requires about 5.7 man-hours. An additional 1.5 11 man-hours are estimated to be required to haul 1,000 board feet from the terminal to the construction site. The over-all transportation requirements are thus in the neighborhood of 7.2 man-hours, without accounting for possible handling at various merchandising levels. Conservatively, then, it may be estimated that 1,000 board feet of southern pine lumber delivered on a job site represents a labor input of 48.4 man-hours. 10 See M onthly Labor Review, October 1937 (p. 846), Labor Requirements in Rail Transportation of Construction Materials (also reprinted as BLS Serial No. R. 637). u See M onthly Labor Review, M ay 1937 (p. 1136), Labor Requirements in Lumber Production (also reprinted as BLS Serial No. R. 529). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis H age and Hour Statistics Wage Structure of the Hosiery Industry, January 1 9 4 6 1 IN JANUARY 1946, plant workers in full-fashioned hosiery mills averaged 97 cents an hour, exclusive of premium pay for overtime and night work, in seamless (circular knit) hosiery mills, the average was 63 cents. The wage differential between the two branches of the industry reflects dissimilarities in manufacturing processes, skill re quirements of the labor force, value of product, mill location, and unionization. In both, earnings of the majority of the mill workers are based on piece-rate scales. Women’s full-fashioned hosiery, produced on costly and complicated knitting machines, was made principally from silk before the war; rayon was the wartime substitute. Since September 1945, nylon has been available in increasing quantities and three-fifths of the mills studied by the Bureau of Labor Statistics in January 1946 reported nylon hosieiy as their major product.“ As nylon yarn becomes more plentiful, this proportion will probably increase and affect wage levels to some extent. This study showed that nylon hosiery workers averaged about 10 percent more pay an hour than those making rayon stockings. Seamless hosiery mills, specializing in men’s and children’s hosiery although some make women’s hosiery, use cotton yarns predomi nantly. Earnings of plant workers making women’s seamless hosiery were the highest in most occupations, and earnings in children’s hosiery were the lowest. 1 This report was prepared by Hilda W. Callaway of the Bureau’s Wage Analysis Branch. Detailed “ . m a t 10“ on waSes may be obtained from a mimeographed report: Wage Structure—Hosiery. 1946. wage statistics, by locality, are available in the Bureau’s regional offices. 2 Altogether 393 representative mills employing 64,250 workers were surveyed, or nearly one-half of the mills with 8 or more employees representing 58 percent of the employment in the entire industry and in each ranch. The number of full-fashioned and seamless hosiery mills studied was 187 and 206, respectively. Those mills which produced both full-fashioned and seamless hosiery were tabulated according to major product. Similarly, independent dyeing and finishing hosiery mills were also included in the study. 954 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 955 WAGE AND HOUR STATISTICS Full-Fashioned Hosiery Straight-time average hourly earnings3 of full-fashioned hosiery mill workers (97 cents) exceeded those in many other consumer goods industries in January 1946. Men, comprising over two-fifths of the mill workers, averaged $1.24 an hour, or 59 percent more than women plant workers (78 cents). Few of the women and 1 out of every 7 men earned over $1.70 an hour. At the lower end of the wage scale, only an eighth of the men compared to more than a third of the women averaged less than 65 cents an hour (table 1). REGIONAL DIFFERENCESIN^W AGE LEVELS There is a scatteiing of mills in other regions but the Middle Atlantic States and southeast each account for about 40 percent of all mill workers in the industry and therefore determine the national wage pattern. Average hourly earnings in the Middle Atlantic States were 11 percent above the national average of 97 cents; in the Southeast they were 9 percent below that level. 1.—Percentage Distribution of A ll Plant Workers in Full-Fashioned Hosiery M ills by Straight-Time Average Hourly Earnings,1 Selected Regions, January 1946 T able Average hourly earnings (cents) United Middle States2 Atlan tic Under 45.0_ __ _ _ __ 45.0-49.9 50.0-54.9......................... . 55.0-59.9. 60.0-64.9 65.0-69.9_______________ 70.0-74.9 75.0-79.9_______________ 80.0-84.9 85.0-89.9 90.0-94.9 95.0-99.9 100.0-104.9 105.0-109.9 2.4 2. 2 4. 8 8.6 6.6 6.8 5.4 5.5 5. 4 4.3 4. 1 4. 0 4. 0 3.3 110 0 - 1 1 4 0 115.0-119.9 125.0-129.9_____________ 130.0-134.9_____________ South east 0.5 1.0 1. 7 7.9 4.6 5. 5 4. 4 5.1 5.9 4.8 4.6 4.8 4.1 4.0 4.4 3.6 6. 4 9. 5 9.1 8.1 6.7 5.6 4. 7 3.4 3. 3 3. 2 3.8 2. 7 3 3 3 R 3 0 2.6 3. 1 2.3 2.6 2.5 3^0 3.1 2.5 2.3 Average hourly earnings (cents) 135.0-139.9_____________ 140.0-144.9 ________ 145.0-149.9__ __________ 150.0-159.9_ ___________ 160.0-169.9 ___________ 170.0-179.9_____________ 180.0-189.9 190.0-199.9____________ _ 200.0-209.9. ___________ 210.0-219.9- ___________ 220.0-229.9 __ __________ 230.0-239.9_ __________ 240.0-249.9. _____________ 250.0-and over. _ _ . South United Middle States2 Atlan east tic 2.4 2.0 1.9 3.0 2.7 2.1 1.6 1. 0 .7 .5 .3 .2 .1 .3 2.9 2.4 2. 3 3.8 3. 4 2.7 2. 2 1.6 1. 2 .9 .6 .3 .2 .7 2. 2 2. 0 1.6 2.0 1.9 1.3 .8 .4 .2 .1 .1 (3) (3) (3) 100. 0 100.0 100.0 Average hourly earnings1 $0. 97 Total number of workers. 56,450 $1.08 22, 425 $0. 88 22, 725 T otal___ 1 Excludes premium pay for overtime and night work. 2 Includes data for other regions in addition to those shown separately. 3 Less than . 05 of 1 percent. 3 The figures presented exclude premium overtime, shift differentials, and nonincentive bonuses (such as Christmas and profit-sharing) but include cost-of-living bonuses. In addition, earnings of inexperienced beginners, apprentices, and handicapped plant workers are included in the over-all averages and distribu tions but excluded from the occupational data; administrative, professional, and executive personnel were omitted entirely from the study. Field representatives of the Bureau obtained the data from January 1946 pay rolls and other related records of the cooperating hosiery mills. Estimated employment on all shifts in hosiery mills with 8 or more employees is shown, instead of employment in the mills actually studied. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 956 MONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 Middle Atlantic hosiery mills are concentrated in two relatively high wage areas—Philadelphia and Reading—and a few are scattered in other localities of Pennsylvania, New York, and New Jersey. Competition for labor in this region is generally greater than in the Southeast where such comparatively low-wage industries as textiles and furniture are among the major bidders. As a result, there are marked differences in earnings between the two regions. Hourly earnings of men single-unit knitters, for example, were 27 percent higher in Middle Atlantic hosiery mills than in the Southeast; similarly, women seamers averaged 26 percent more and folders and boxers 15 percent more in the former region. The over-all averages shown below illustrate the differences between the key wage areas in January 1946, as well as the differences in earnings of men and women. Middle Atlantic: Philadelphia Reading____ _________ Southeast: Charlotte.. Winston-Salem.. _ Chattanooga S ta tesv ille__ __ Average hourly earnings Total Men Women _____ $1. 13 _____ 1.13 _____ _____ _____ _____ 1 . 00 .9 7 .90 .80 $1. 42 1. 41 $0. 91 . 87 1. 33 1 . 21 1. 25 1. 03 . 79 . 78 . 69 . 67 OCCUPATIONAL DIFFERENCES IN WAGE LEVELS Essentially, the difference between men’s and women’s earnings resulted from the concentration of the former (about three-fifths) in skilled knitting occupations, such as footers, leggers, and single-unit and backrack-converted-machine knitters. In these knitting opera tions, men’s earnings varied from $1.17 to $1.86, depending on the number of machine sections handled and the gauge of the hosiery. The installation of the single-unit type machine in recent years, coupled with the manpower shortage during the war, stimulated the employment of women as knitters. However, the number of women employed in this group of occupations was still comparatively small in January 1946. Earnings of both men and women knitters (as shown in table 2) were far above those of workers employed in the other key occupations, except for fully experienced machine adjusters and fixers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 957 WAGE AND HOUR STATISTICS T a b l e 2 . — Straight-Time Average Hourly Earnings 1 in Full-Fashioned Hosiery M ills, by Occupation and Sex, Selected Regions, January 1946 United States 2 Occupation and sex Middle Atlantic Southeast Number Average Number Average N umber Average hourly of hourly hourly of of workers earnings workers earnings workers earnings Men Adjusters and fixers, knitting machines: Oyer 4 ypars’ experience _ __________ Under 4 years’ experience______________ Adjusters arid fixers' looping and seaming machines over 4 years’ experience. ________ “Boarders machine __ _______ ________ Carpenters niaintp.na.nce Dyeing-machine tenders, h o sie ry .___________ Electricians maintenance ______ _______ Janitors ____________ ____________ J^nitters footer __ ________ _____ 24 sections or less, helow 45 gauge _ . ____ 24 sections or less, 45 gauge and up _ _ ____ 20 and 28 sections, below 45 gauge _ ______ 9.fi and 2 8 sections, 45 gauge and up ______ Over 2 8 sections, 45 gauge and up _______ Knitters legger ____ _____ _______ 24 sections or less, below 45 gauge_________ 24 s^ctinn^ or less 45 gauge and up _ _ ____ 9fi and 9 8 sections, 45 gauge and up _ _ _ .. Oyer 9 8 sections 45 gauge and up _______ Knitters single-unit and backrack ________ Machinists maintenance _____________ Maintenance men, general utility_____________ Mechanics maintenance __ ___ ___ ______ Stock clerks _ _ _______________ — -------Truck drivers _ _ _ ________ ________ __ _______ Truckers, hand __ _ __________ ______ __ ______ __ Watchmen _ _ Working foremen processing departments . . . Women hoarders, machine _ __ _ _ _ _ ____________ Folders and boxers _ _ _ ______ _______________ Inspectors, hosiery _ __________________ Janitors ______ ________ _________ Knitters, legger: 24 sections or less below 45 gauge _ _ ____ Knitters single-unit and backrack _ _ Loopers, toe only: Oyer 1 year’s experience . ___ Under 1 year’s experience _____ __ . . Loopers, toe and heel: Oyer 1 year’s experience Under 1 year’s exp erien ce.____ Menders hand _ _ _____ ___ __ — Pairers _ _______ . ______ Reamers ____ _ ______ ______ Stampers _________________________ Stock clerks _____ ___ _ _ — . . Toppers ________ -- — -------Working foremen processing departments____ 700 102 $1. 52 1.17 210 30 $1. 58 1.22 356 57 $1.50 1.14 147 1,127 57 271 96 473 1,343 462 416 81 175 209 4, 715 1,670 2,025 727 293 9,540 137 132 58 176 76 240 628 223 1.22 1.07 .98 .80 1.06 .60 1.54 1.31 1.53 1.68 1.71 1.86 1.34 1. 17 1.38 1.49 1.64 1.47 1.10 .89 1.12 .73 .79 .65 .59 1.20 46 590 24 108 40 142 510 142 158 50 80 80 1,632 672 826 102 32 4, 672 62 42 30 90 36 60 264 72 1.20 1.14 1.01 .86 1.00 .65 1.73 1.55 1.65 1.80 1.82 2.06 1.42 1.28 1.45 2.02 1.79 1.62 1.02 .96 1.10 .71 .88 .68 .59 1. 19 76 468 13 105 25 226 511 223 150 24 50 64 2,058 699 753 398 208 3, 620 35 51 11 29 24 146 239 86 1.23 .97 .84 .71 1.10 .55 1.28 1.20 1.31 1.43 1.38 1.40 1.24 1.09 1.26 1.29 1.58 1.28 1.17 .87 1.03 .73 .68 .63 .56 1.17 1,877 1,345 2,473 85 .94 .76 .72 .57 636 598 896 20 1.08 .82 .77 .61 751 465 1,194 46 .82 .71 .68 .54 166 705 .91 1.06 10 68 1.26 1. 44 100 523 .97 1.06 1,497 128 .82 .56 430 32 .91 .62 764 78 .78 .55 1,565 186 2,182 1,797 5,328 410 196 3,817 242 .81 .60 .78 .87 .83 .71 .64 .83 .81 790 108 914 858 2,174 218 108 1,356 78 .87 .67 .85 .92 .92 .73 .65 .94 .86 536 70 840 582 2,275 153 54 1,590 106 .71 .48 .69 .80 .73 .68 .62 .70 .76 1 Excludes premium pay for overtime and night work. 2 Includes data for other regions in addition to those shown separately. VARIATION BY UNIONIZATION, SIZE OF MILL, AND SIZE OF COMMUNITY In the Middle Atlantic region, the earnings of men and women in union mills (employing 62 percent of the workers) were 1 and 2 percent higher, respectively, than in nonunion mills. In the South east, where only 19 percent of the workers were under union contracts, the organized sector of men averaged 3 percent more and the women 1 percent less than those in nonunion mills. With few exceptions, workers in the largest mills (over 250 em ployees) showed a distinct wage advantage. For example, single722250—46------ $ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 958 MONTHLY LABOR REVIEW----DECEMBER 1 9 4 6 unit knitters (an important occupational group) averaged $1.60 in the largest mills; $1.40 in mills with 8 to 50 workers; and only $1.35 in the intermediate size group. Size of community also showed a marked correlation with wage levels. To illustrate, on a national basis hourly earnings of single unit knitters (men) averaged $1.26 in the towns under 25,000 popu lation; $1.68 in the cities of over 100,000 population; and $1.41 in cities of intermediate size. The Middle Atlantic region followed the national pattern fairly closely. In the Southeast, the highest earn ings were most frequently observed in cities with 25,000 to 100,000 population; Charlotte and Winston-Salem, with hourly earnings averaging $1.00 and 97 cents, respectively, fall within this class. WAGE AND RELATED PRACTICES In January 1946, the 40-hour work schedule was the most prevalent; longer hours for men (usually 45, 48, or 50) were in effect in about twofifths of the mills studied. Scheduled hours in excess of 40 for women were reported by about a fourth of the mills, with the greatest propor tion in the Southeast. Extra shift operations were also reported by 164 out of 187 mills. The differential for second-shift workers (paid by less than half of the mills with extra shifts) was generally 5 cents, added to the hourly rate of first-shift workers. About a third of the mills (including a larger proportion of those in the Southeast than in the Middle Atlantic States) gave plant workers a bonus, usually at Christmas time. When averaged over all plant workers in the industry, such nonproduction bonuses added less than one-half of 1 cent to the workers’ hourly pay. In the important Philadelphia area, only 7 of the 25 mills studied granted bonuses in contrast with 10 of the 13 mills studied in the Winston-Salem area. The amount paid to all plant workers in the latter area averaged 1.1 cents an hour as compared to two-tenths of 1 cent in Philadelphia. Similarly, insurance and pension plans were more prevalent in South eastern than in the Middle Atlantic mills. Health and life insurance were most common. With respect to paid vacations, the regional positions were reversed. Less than half of the Southeastern hosiery mills and over four-fifths of those in the Middle Atlantic area granted paid vacations (usually 1 week) to their plant workers. To some extent, this reflects the more extensive unionization in the Middle Atlantic mills, as paid vacations have become a standard feature of union agreements. Seamless Hosiery In contrast with the full-fashioned branch of the industry, straighttime average hourly earnings of seamless hosiery workers were extremely low—58 cents for women and 75 cents for men. The men averaged 3 cents less an hour than women in full-fashioned mills. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 959 WAGE AND HOUR STATISTICS The lower level of skill, the predominance of women (almost threefourths of the total), and concentration in the Southeast are impor tant factors accounting for lower earnings in the seamless branch than in the full-fashioned branch of the industry. REGIONAL DIFFERENCES IN WAGE LEVELS Seamless hosiery mills are concentrated in the Southeastern States. All but 28 percent of the industry’s workers were in southern mills; the Middle Atlantic region accounted for 13 percent and the Border States for 8 percent. Relatively few mills were in New England, the Great Lakes area, and the Southwest. T a b l e 3. — Percentage Distribution of All Plant Workers in Seamless Hosiery Mills by Straight-Time Average Hourly EarningsJ Selected Regions, January 1946 Average hourly earnings Under 25.0 cents _______ ___ _______ _ __ _ 35 0 37 4 cents _ _____ - ___ 37 5-39.9 cents - -___ ____ _______ 40 0-49 4 cents _____ _ _______ ___ 42 5-44.9 cents _______ _ ---- -----__ ____ ______ 45 0-47 4 cents ________ - _____47 5-49 9 cents 50 0—52,4 cents ___________ -- - ___ 52 5—54 9 cents _ __ ______ ____ _ - 55 0-57 4 cents ____ ______ __ 57 5-59 9 cents ___ __________ ___ 00 0— 02 4 cents ____ _____ - - - 02 5-04 9 cents _ __ _ 05 0-07.4 cents _______ _ __- - -----------07 5-09 9 cents _ __ ______ - ________ 70 0-74 9 cents __ __ _ __ _____ — 75 0-79 9 cents _ __ _________ ______ 80 0-84 9 cents __ __________ _ ______ — 85 0 89 9 cents ___ _ ____ 90 0—94 9 cents ___________ _____________ 95 0-99 9 cents __ __ __ _ _ _ _ -----------100 0-109 9 cents - ___ 110 0-119 9 cents __ _ _ ____ - _______ 120 0-129 9 cents _________ _____ - ______ 1 30 0-139 9 cents __________ _______ _ -- 140 0-149 9 cen ts ___________ - ________ 1 50 0-159 9 cen ts _ __ ____ _____ _____ 160.0 cents and over________________________________ United States 2 Middle Atlantic Border States Southeast (3) (3) (3) (3) 0.5 .1 10.5 2.6 5.8 3.6 10.5 4.7 7.6 5.3 6.2 4.4 5.1 3.5 7.0 6.1 5.2 2.8 2.1 1.3 2.4 1.4 .6 .4 .1 .1 .1 100.0 $0.63 Average hourly earnings i _______ _________ 51,800 Total number of workers------------------------- -------------1 Excludes premium pay for overtime and night work. 2 Includes data for other regions in addition to those shown separately. 3 Less than .05 of 1 percent. 3.5 2. 1 3.3 1.8 8.4 3.7 14.2 4.5 6.0 4.7 5.7 4.4 10.9 7.1 5.5 3.1 2.9 1.8 2.8 2.0 .8 .3 .2 .2 .1 1.1 .2 19.9 3.9 8.5 6.4 12.0 5.8 6.1 5.0 5.0 4.0 3.4 2.2 3.4 3.0 2.6 1.3 1.8 1.0 1.2 .9 .5 .2 .2 .1 .3 100.0 100.0 (3) $0.67 6.625 $0. 57 4,175 0.5 .1 11.4 2.7 6.2 3.6 10.8 4.8 6.9 5.6 6.1 4. 4 5. 0 3.4 6. 5 6.2 5. 4 2.9 1.8 1.1 2.2 1.2 .5 .5 .i ,i « 100.0 $0.62 37,675 Regionally and occupationally, earnings varied little from the na tional pattern. The Middle Atlantic region, as indicated below, tended to pay higher wages than any other area, and frequently earn ings in the Border States were below those in the Southeast. Middle Atlantic: Philadelphia______ Reading_________ Southeast: Winston-Salem___ Chattanooga_____ Knoxville________ States ville-Hickory https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Average hourly earnings Women M en Total $0. 69 . 65 $0. 86 . 77 $0. 65 . 62 . . . . . . . . . . . . 69 63 58 61 79 73 69 73 64 67 54 55 960 MONTHLY LABOR REVIEW----DECEMBER 194 6 OCCUPATIONAL DIFFERENCES IN WAGE LEVELS The great majority of women (71 percent) as against 38 percent of the men averaged less than 65 cents an hour in January 1946. Only 1 percent of the women compared to 16 percent of the men had earnings of $1.00 or more. Even when employed in the same occu pation, men usually had a wage advantage over women, varying from 8 to 50 percent; transfer knitters, alone of all the occupational groups studied, showed the same average earnings of 60 cents an hour for both sexes (tables 3 and 4). T a b l e 4. Straight-Time Average Hourly Earnings 1 in Seamless Hosiery Mills, by Occupation and Sex, Selected Regions, January 1946 U n it e d S ta te s 2 O cc u p a tio n a n d sex M id d le A t la n tic N u m A ver N u m A ver age age ber of ber of w o rk h ou rly w o rk hourly ea rn earn ers ers in g s in g s B o rd er S ta te s S o u th e a st N u m A ver N u m A ver age age ber of ber of w o r k hourly w o rk h o u r ly ea rn earn ers ers in g s in g s Men Adjusters and fixers, knitting machines: Over 4 years’ experience______________ Under 4 years’ experience____ ____ ____ Adjusters and fixers, looping and seaming machines: Over 4 years’ experience______________ Under 4 years’ experience________ _ Boarders, machine_______________________ Dyeing-machine tenders, hosiery Janitors________________________________ Knitters, automatic________________ l . : Knitters, flat-bed___________________ Knitters, rib________ _________________ Knitters, string_______________________ Knitters, transfer_____________________ ]]] Machinists, maintenance__________ Maintenance men, general utility_________ Stock clerks________________________ Truck drivers__________________~~~ ] ........... Truckers, hand_____________ _ Watchmen__________________”__ IIZIIZIII Working foremen, processing "departments.. 2, 381 456 $0. 99 .8 0 275 42 $1.02 .91 140 63 $0. 93 .7 9 1,831 337 $0.99 .7 8 193 53 2, 382 376 327 1,491 85 228 151 108 45 135 176 106 265 488 315 .8 9 .7 9 .7 2 .6 4 .5 4 .71 .8 0 .6 4 .6 7 .6 0 .9 6 .81 .6 2 .6 4 .5 7 .5 4 .9 9 41 6 135 31 16 46 .9 4 (3) .7 9 .8 2 .5 9 .8 2 .8 9 (3) .6 9 .6 0 .4 7 .6 5 135 43 2,065 297 275 1,380 .8 7 .7 8 .71 . 62 . 54 .7 1 30 29 10 4 19 17 16 17 50 54 .6 7 .8 5 .6 7 12 4 134 36 19 30 3 17 23 11 1 2 15 6 32 19 14 .5 5 .51 .6 7 (3) (3) .5 8 (3) .51 .5 2 .8 9 172 94 87 26 89 136 80 186 387 190 . 63 .6 4 . 58 .8 3 .7 6 .61 .61 .5 7 .5 3 .9 6 1,674 886 1,730 924 2,695 71 2, 205 61 399 757 3, 554 .61 .5 5 .6 0 .6 0 .5 8 .4 7 .6 4 .6 3 .5 9 .6 2 .6 0 33 118 330 234 242 6 335 6 162 217 608 .6 5 .71 .6 5 116 78 156 27 199 3 94 2 31 120 324 .5 6 .4 8 . 50 .5 7 .5 2 (3) .5 7 (3) .5 4 .5 5 .5 5 1,421 679 1,155 625 2,134 61 1,609 53 185 389 2,466 .6 0 .5 5 .6 2 .5 8 . 58 .4 6 .6 5 .6 3 .5 4 .5 8 .5 9 7, 753 1,238 1,487 2,180 804 130 67 236 .6 2 .4 6 .5 7 .61 .5 9 .5 5 .5 3 1,058 132 202 243 99 9 .6 7 .5 2 .6 0 .6 0 .5 8 599 115 102 102 61 5, 676 887 ( 3) 11 .5 2 .4 3 .4 9 . 58 .4 9 .61 8 ( 3) 5 10 .6 2 .4 4 . 56 .6 2 .6 0 .5 3 .5 4 .6 4 ( 3) .9 3 .7 1 .7 7 .5 9 .5 5 1.02 (3) Women B o a r d e r s, m a c h in e __________ ______ C l i p p e r s . .. . __________________ F o ld e r s a n d b o x e r s____________ "I H e m m e r s ______________________________ y In s p e c to r s , h o s ie r y ___________________ J a n ito r s ________________________ K n itte r s , a u t o m a t ic _____________ K n itte r s , fla t-b e d ___________________ K n itte r s , r ib ________________________ K n itte r s , s tr in g _____________________ K n itte r s , tra n sfe r __________________ L oop ers: O v er 1 y e a r ’s e x p e r ie n c e _______________ U n d e r 1 y e a r ’s e x p e r ie n c e .. M e n d e r s, h a n d _________________ P a ir e r s _________________________ S ta m p e r s _____________________ ” ” 1111111"" S to c k c le r k s . ______ __________ T r u c k e r s, h a n d .............. . I I I I I I I . I I I I I I I I H I ' W o r k in g fo re m e n , p r o c e ssin g "departm ents. V.V.'.Y. .6 6 58 .7 2 .5 7 .6 0 .6 5 .5 7 ( 3) .6 7 ( 3) .7 0 ’ E x c lu d e s p r e m iu m p a y for o v e r tim e a n d n ig h t w o r k . In c lu d e s d a ta for o th e r r e g io n s in a d d itio n to th o s e s h o w n s e p a r a te ly . I n s u ffic ie n t n u m b e r o f w o r k e r s to j u s tify p r e se n ta tio n o f a n a v era g e. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ( 3) .6 4 1 ,0 1 1 1,741 596 105 40 143 WAGE AND HOUR STATISTICS 961 VARIATION BY UNIONIZATION, SIZE OF MILL, AND SIZE OF COMMUNITY The seamless hosiery industry was less extensively unionized than the full-fashioned branch. About an eighth of the mills studied were operating under union agreements in January 1946; they employed about a sixth of all workers in the industry. Though few in number, union workers had a greater wage advantage in seamless than in full-fashioned hosiery mills. The differential for the industry as a whole was 6 percent; in the Southeast alone, it was 10 percent. Half of the seamless hosiery mills studied employed 51 to 250 workers, a third had a larger number, and the remainder had 50 or less. Earnings for both men and women tended to be highest in the largest mills. The difference frequently did not exceed 5 cents except for a few jobs in which wages were related to productivity. In most occupations, workers employed in mills located in cities of 25,000 to 100,000 population were the highest paid. They earned up to 32 percent more than workers in the smallest communities (less than 25,000 persons). Between medium-size cities and metro politan centers of over 100,000, the wage spread was considerably less in the majority of the key jobs studied. WAGE AND RELATED PRACTICES As in the full-fashioned hosiery branch, the typical workweek in seamless hosiery was 40 hours. In the Southeast, over 10 percent of the mills scheduled 48 hours for men and women alike. A majority of the mills (including four-fifths of those in the Southeast) operated extra shifts but seldom provided a wage differential for late work. Only 23 of the 149 mills reporting extra shifts generally added 5 cents or 5 percent to the first-shift hourly rate for such work. Over half of the seamless hosiery mills, compared to a third in the full-fashioned branch, gave their workers a nonproduction bonus, usually at Christmas. When averaged over all plant workers in the industry, the bonus added eight-tenths of 1 cent to the hourly rate— twice the amount estimated for full-fashioned hosiery workers. Although paid vacations and insurance or pension plans are fairly widespread practices in most industries, less than a half of the seam less hosiery mills reported such plans for plant workers. Practically all of these mills allowed 1 week’s vacation with pay and provided health- or life-insurance benefits. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Cooperatives Activities of Credit Unions in 1945 THE slight upward trend in business done by credit unions in the United States in 1944, after a serious decline during the war years, was continued in 1945, although the total of loans made was still more than 40 percent below the peak of 1941. This increase took place in spite of a slight reduction in number of loans made, indicating a rise in the average size of loan. Share capital and assets which (notwithstanding the otherwise adverse business experience of the credit unions during the war) have continued to rise steadily, main tained their upward pace in 1945, showing increases of 8.1 and 9.2 percent, respectively. Reserves fell somewhat, however, both in amount and in relation to loans outstanding, declining as regards the latter from 20.7 percent in 1944 to 19.4 percent in 1945. Both net earnings and dividends paid on share capital increased as compared with 1944. For 1945, credit union members received nearly $5,900,000 in dividends on their shares. Because 398 credit unions went out of existence (some of them undoubtedly in war plants now closed) and only 239 were newly chartered, the total number of associations fell from 9,041 at the end of 1944 to 8,882 at the end of 1945. Partly as a result of this, the total membership declined 3.3 percent. The State-chartered credit unions fared better during the year than the Federal associations.1 Their membership declined 0.5 percent, as against 6.7 percent for the Federal associations; they increased their business by 0.8 percent, whereas the loans made by the Federal credit unions fell 0.1 percent. The increases in assets of the two groups of associations were 11.0 and 6.1 percent, respectively. Data on membership and business of credit unions in 1944 and 1945 are given in table 1. 1 For the State-chartered associations the statistical data on which the present report is based wereiu most cases furnished to the Bureau of Labor Statistics by the State official—usually the Superintendent of Banks_ charged with supervision of these associations. Keports were received from all States except Iowa. For that State and for certain items concerning which some States do not require the associations to report, estimates were made, based on the trend in other States and on the trend of the other items in the same State. All of the information for the Federal credit unions was supplied by the Credit Union Division of the Federal Deposit Insurance Corporation. 962 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 963 COOPERATIVES T able 1.—Operations of Credit Unions in 1944 and 1945, by States [S om e r e v is io n s in 1944 fig u res, o n b a sis o f la te r reports] Number of associations 1 State, and type of charter ♦ Year Total 1945 2 1944 1945 2 1944. _ 1945 1944 All States________________ State associations_____ Federal associationsAlabama- _ _ ... 1945 _ Arizona ............ 2 1944 . . Arkansas__________ _____ C alifornia_____ . . . ___Colorado. _ ___ C onnecticut4. - - ____ . . . Delaware 4_______ . . . . . District of Columbia. . ... Florida_________ ______ Georgia_________________ Haw aii4_________________ Idaho__________________ I llin o is ________ _______ Indiana... . .... Iowa ______ _ .. _ . . . . . -. Kansas--------------------------Kentucky_______________ Louisiana____ . . ---- . M aine____ . ... . . Maryland_______________ Massachusetts. ____ ____ Michigan _______________ Minnesota_____ . ... ... M ississippi_________ ____ Missouri--------- ----------Montana___ . . . . . . Nebraska------- ---------------N ev a d a 4 ___ . New Hampshire New Jersey. . . ___ . ___ .. N ew Mexico 5 N ew York . . . ______ North Carolina-- _ 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 21944 3 1945 1944 1945 2 1944 1945 1944 1945 2 1944 1945 1944 1945 1944 1945 1944 1945 2 1944 1945 2 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 8,882 9,041 4,923 4, 993 3,959 4,048 78 80 23 24 25 27 444 451 106 107 186 185 10 10 112 114 160 168 132 135 96 97 31 33 762 766 297 299 195 201 112 117 104 108 131 139 38 44 64 65 539 537 248 253 325 332 26 27 369 378 40 40 89 96 4 4 16 15 247 240 14 14 753 763 195 173 Number Report members ing 8. 615 8, 702 4,858 4,907 3, 757 3, 795 2, 838,034 2,933, 507 1,621,409 1,629,706 1,216, 625 1, 303, 801 76 28,258 26,806 77 22 3, 285 24 3,419 25 3,059 2, 862 26 432 ■>171,391 442 a 184,969 102 25, 999 100 25, 645 180 75,118 89, 517 179 2,126 9 2,114 9 62,095 108 66,099 106 156 35, 202 162 34, 991 33,837 128 131 34,117 36,112 95 96 37,753 31 3 3,971 31 3,895 330, 830 758 756 290,032 3 93, 502 295 294 3 97,967 195 40, 779 41, 395 196 110 25,068 111 27,914 103 3 24, 582 •>26, 649 107 125 3 32,405 3 32, 241 132 9, 273 35 35 9,080 25,109 60 60 26, 748 535 255,007 532 257, 260 108, 633 240 114,320 241 324 65, 734 329 66,696 3 5, 553 23 24 6, 640 88,761 340 359 90,834 7,175 37 6,382 37 19,381 87 88 20, 595 584 4 562 4 14 5, 698 6,151 14 99,042 237 114, 225 233 1,304 13 14 1,324 721 258,397 279,116 729 35,471 168 29, 387 151 Number of loans Amount of loans— during year Made dur ing year 1,511,851 1,591,132 909, 922 926, 518 601,929 664,614 $21.0,885, 783 209,955,479 132,616,939 131,621,582 78, 268,844 78,333,897 34, 261 3 26,948 3 1, 367 3 1,350 1,824 1,685 3 78, 839 3 89,047 3 17, 312 3 18, 259 41,755 47,962 1,003 1,148 3 33, 236 3 38,052 22,659 25, 251 3 22,879 3 22, 744 11,116 10,076 1,405 1, 329 3 238, 519 3 226, 575 3 44, 616 3 51, 326 18,446 18,921 13,056 3 14,423 3 16,209 3 15,214 3 17,008 3 17,270 3, 672 3,987 3 17,395 3 17,458 3 122,570 3 122, 591 50,172 3 51,950 28,713 3 33,389 3 4, 787 3 5,784 3 41,887 3 44,328 3 2,952 3 2, 284 8,795 9,882 108 104 3 3,017 3 3, 557 £0, 390 63,925 333 589 3 127,090 3 144,310 3 17, 801 17,822 4,147,161 3,155, 213 3 339,842 547,043 194, 567 163,980 3 12,926, 276 3 13,481,423 3 2, 247, 274 3 2,105, 359 4, 821, 201 5, 742, 389 132,166 139,085 3,825,016 3, 881,868 3, 683,161 3, 248, 585 3 3,090, 362 3 2, 886,066 2,155,997 1,941,163 185,467 173, 653 28,929,683 25, 698, 370 3 5,755,008 3 6, 278,072 2, 397, 601 2,420,443 1,971,470 3 1,952, 696 3 1,841,919 3 1,752,616 3 2,158,785 3 2,143, 350 450,641 441,178 3 1,942, 507 3 1,883, 517 22,917, 547 22,654, 669 8, 683,432 3 8, 437, 474 4,598,703 3 3, 662, 418 3 462,150 3 530,087 3 4,868,432 3 5,432,884 3 440, 493 3 373,912 1, 253,906 1,320, 588 16,185 13,004 3 760.720 3 788,041 5,809, 257 6,382,951 46,262 63,358 3 20,785,191 3 23,601,108 3 2,078,429 2,088,966 Outstanding end of year $126,277, 698 120,955,395 91,122, 284 86, 551,928 35,155,414 34,403,467 1,929, 705 1, 534,975 135,613 117,812 113, 615 86,860 8,171, 810 7, 761, 778 1,349, 980 1,151,187 1, 744,467 1,963, 648 71,371 67, 574 1,976,325 2,065, 336 2,099,007 1, 774,033 2,068, 728 1,896,131 930,429 1,001,467 102, 729 87,049 14,011,222 13,135,592 3, 529,359 3, 378,962 1,771, 508 1,825,666 1,082,077 1,071,793 3 1, 366,101 1, 366,019 1,066,420 3 1,037, 703 261, 743 237,840 804, 623 784,897 16, 436,055 15,466,050 6, 389, 549 5,981,086 6,808,028 5, 451,077 191,042 226,352 3,116,292 3,185, 792 261,103 201,345 730,378 717,155 9,386 7,169 640,080 653,906 2,416, 596 2,632, 417 25,220 28, 217 12,608,773 12,898,928 1,934, 614 1,256,073 964 MONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 T able 1.— Operations of Credit Unions in 1944 and 1945, by States— Continued Number of associations 1 State, and type of charter Year Total North Dakota________ - _ Ohio______ _________ . . . Oklahoma... _ . _ ______ Oregon. _____ ._ Pennsylvania_______ Rhode Island _. _ _ . South Carolina___________ South D a k o ta 4. . .. Tennessee. ________ ____ Texas___________________ U tah________________ _ Vermont. ____ _. _____ Virginia_________________ Washington_____________ W est Virginia__________ . Wisconsin______________ Wyoming 4____________ 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 93 97 583 589 71 75 71 75 586 587 36 37 35 39 32 32 117 127 334 350 64 66 10 9 86 91 178 188 63 67 534 551 18 19 Number of members Report ing 87 80 567 575 66 72 68 71 571 560 35 34 29 31 32 32 115 124 319 328 62 65 9 9 83 86 174 180 59 60 534 548 17 18 11, 766 10, 589 188, 522 214,099 3 16, 225 16, 513 12, 491 13,053 213, 503 224,151 26, 648 25, 792 6,922 7,688 4,818 5.176 33,903 34, 567 76, 217 77,952 11,375 11, 577 1,692 1, 562 23,391 25, 396 35,404 37, 739 15,318 15,857 144, 594 151,509 2, 504 2,582 Number Amount of loans— of loans made during Made dur year Outstanding ing year end of year 3,300 3, 241 84,927 97, 508 3 7, 760 3 7, 737 4,420 5,135 106,331 111,023 6, 275 7,062 5,651 5,346 1,970 2,547 3 26, 412 3 27,298 3 44,953 3 45,870 3 10,152 3 7,625 3 1,108 1,265 16, 519 14,366 3 15,846 3 18, 999 9,839 3 7,983 70,319 77,640 877 947 $1,115,835 738,280 11,896,005 12,317,470 3 1,330,282 3 1, 238,328 749,837 811,167 13, 435, 747 13,406,338 2, 445,642 2,023,922 416, 753 427, 749 236; 954 273,901 3 3,788,965 3 3, 581,047 3 6,133, 740 3 5, 763,109 3 1, 328, 692 3 1, 204, 492 3 76, 395 74,947 1, 619,262 1, 462,221 3 1,947, 710 2, 428,191 1,026; 200 3 764,907 7,265; 449 7, 885,115 155, 504 168,766 $805, 445 486,812 6,012,876 6, 311, 501 ' 864; 512 3 710,019 531, 506 544, 424 6,326; 211 6,296; 028 4, 510,639 3, 781, 404 ' 204; 162 190, 507 99,457 119; 880 1, 578', 663 1,428,126 3; 229,896 3,063, 612 ' 637; 293 567,092 27; 389 27, 554 843; 257 901,198 1, 234,717 3 1, 280; 285 510,424 452; 887 3, 625, 734 3, 655, 518 81, 569 86; 660 1 M o s t of th e d ifferen ce b e tw e e n th e to ta l n u m b e r o f a sso cia tio n s a n d th e n u m b e r re p o r tin g is a c c o u n ted for b y a s so cia tio n s c h artered b u t n o t in o p e r a tio n b y th e e n d o f th e y e a r a n d a sso cia tio n s in liq u id a tio n w h ic h h a d n o t r e lin q u is h e d th e ir ch a rters. 2 R e v is e d . 3 Partly estimated. 4 F e d e r a l a s so cia tio n s o n ly ; n o S ta te -c h a r te r e d a sso cia tio n s in th is S ta te . 3 Federal associations only; although State permissive legislation was passed in 1945 no associations had yet been formed under it. Fifteen States (Alabama, Arkansas, Colorado, Delaware, Florida, Idaho, Illinois, Louisiana, Maine, Montana, Nevada, North Carolina, North Dakota, Rhode Island, and Vermont) showed a membership increase. Their slight gains, however, were not sufficient to overcome the losses in members in the other States. The prewar level of business was reached or exceeded in 1945 by both State and Federal associations in Alabama, Montana, and Ver mont, by the State-chartered associations in Rhode Island, and by the Federal credit unions in Utah. Data on the financial status of credit unions, by States, is given in table 2. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 965 COOPERATIVES T able 2. —Assets and Earnings of Credit Unions, 1944 and 1945, by States Number of associations 1 State, and type of charter Year 1945 1944 State associations. 1945 1944 Federal associations_________ 1945 1944 All States_______ . . . Paid-in share capital Reserves (guaranty fund, gen Total assets eral reserve, etc.) DiviNet earn dends on ings shares Total Re port ing 8,882 9,041 4, 923 4, 993 8,615 $366,201,586 $24,506,019 $434,627,135 $7,839,810 $5,888,412 8,702 338,713,383 25,081,703 397, 929,814 5, 716,736 5,122,454 4,858 225,587,624 19, 595,211 281, 524,015 5,278,300 3,781,036 4,907 205,127,236 17,023,389 253,663,658 3, 507,152 3, 368,794 3,959 4,048 3,757 3,795 1945 78 1944 80 1945 23 1944 24 24 Arkansas___________ 1945 1944 28 444 California____ ______ 1945 1944 451 Colorado___________ 1945 106 1944 108 Connecticut3_______ 1945 186 1944 185 D elaw are3. _______ 1945 10 1944 10 112 D ist. of Columbia___ 1945 1944 113 Florida_____________ 1945 160 1944 170 132 Georgia____________ 1945 1944 138 Hawaii___ _______ 1945 96 1944 97 31 Idaho______________ 1945 1944 33 762 Illinois______ ______ _ 1945 1944 766 Indiana____________ 1945 297 1944 297 Iowa............................ 21945 195 1944 201 112 Kansas_____________ 1945 1944 118 1945 104 Kentucky________ 1944 108 131 Louisiana_________ 1945 1944 145 38 M aine__________ ._ 1945 1944 44 1945 64 M a ry la n d .... . . 1944 66 539 M assachusetts______ 1945 1944 537 M ichigan___________ 1945 248 1944 253 325 M in n esota _________ 1945 1944 365 M ississippi_________ 1945 26 1944 27 369 M issouri___________ 1945 1944 378 M ontana___________ 1945 40 1944 42 1945 89 Nebraska__________ 1944 91 4 N evad a3 . . . . ____ 1945 1944 4 N ew Hampshire____ 1945 16 1944 15 247 N ew Jersey_________ 1945 1944 241 14 N ew Mexico 6______ 1945 14 1944 N ew York__________ 1945 753 764 1944 195 North Carolina_____ 1945 1944 173 See fo o tn o te s a t 2nd o f tab le. Alabama___________ Arizona____________ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 76 77 22 24 24 26 432 442 102 100 180 179 9 9 108 106 156 162 128 131 95 96 31 31 758 756 295 294 195 196 110 111 103 107 125 132 35 35 60 60 535 532 240 241 324 329 23 24 340 359 37 37 87 88 4 4 14 14 237 233 13 14 721 729 168 151 140,613, 962 133, 586,147 3,490, 315 2,753,163 340, 278 318,418 280,647 219,261 23,072,165 22, 313, 274 3,534,312 2,898,805 10,886, 299 12,849, 767 177,527 161,965 5,851, 332 5,472, 271 5,742,807 4,629, 791 1,599,847 1,425,875 9, 920, 711 8, 785,479 362,180 292,498 47,144,644 42,522, 556 12,893, 396 12,106,052 5,278, 339 5,172, 242 3,104,637 2,805, 222 1,603,451 2,865,077 3,135,173 2, 775, 840 905,029 735,914 2,143,396 2,029,995 34,835,929 30, 893,107 1,897, 722 17, 420,056 10, 445,037 8,995, 484 394,429 508, 580 12,350,600 10, 490,289 631,187 460, 586 2,258,249 2,042, 738 30,220 25, Oil 521,102 490,954 11,997,931 12,027,205 97,912 80, 794 32,051,449 31, 673,401 4,390, 565 2, 796,132 4, 910,808 8,058,314 331, 965 275, 891 16, 331 24, 464 19,108 17, 720 1,192,163 1,487, 572 193,990 229,402 323, 390 548, 399 9,824 13,305 500,025 527,168 228, 720 278, 735 475,877 396, 375 245,751 399, 350 12, 587 17, 595 2, 931,533 2, 924,278 605,425 869,698 282,273 281, 504 125,397 143, 798 237, 313 215,170 229,695 281, 554 80,954 82,502 234,146 230,933 4,094,449 3,176,049 866, 627 826, 662 547,621 547,967 23, 759 53,008 3 554, 521 2 601,875 18, 386 23, 642 119,160 135,202 1,412 1,741 89, 449 85,489 526,189 579,566 5,057 6, 582 3,381,877 3,132,182 168,470 159,545 153,103,120 144,266,156 3, 908, 510 3,081,166 370,860 349,497 314,409 232,625 26,986, 463 25, 910,483 4, 017,658 3, 354,663 12, 517, 942 13,575, 000 192,605 176,276 6,613,620 6, 203, 746 6,191,836 5,014,622 5, 339,232 4, 778,774 10, 558, 538 9,253, 563 382,466 312, 947 51,250, 789 46,666, 917 14,099,255 13, 217,602 6,082, 772 6,037,066 3,372, 538 3, 059,167 3,777,484 3, 304,051 3,468,822 3, 081, 504 1,021,718 889,104 2, 522,736 2,370,134 48,036, 635 42,322,457 21,265,393 19,622, 464 14,132,049 12,231, 282 619,069 589,365 13, 550,872 11, 592,194 679,020 495,219 2,806,406 2,567, 729 32, 588 26, 764 1, 352, 729 1,114,147 13,734,068 13,166, 766 104,125 87, 586 36, 700,864 36,573,853 6,012, 566 3, 571,806 2, 561, 510 2,209, 584 2,107,376 1, 753,660 94,715 76, 509 82,859 62,830 4, 908 7,580 2 4,455 3 4, 908 5,841 6,194 4,932 3,896 2 286,432 2 408, 543 2 407, 721 3 250, 641 2 53, 773 2 77,060 2 72,654 2 51,381 170,143 246,542 158,189 207,095 4,463 4,169 3,391 3,208 115, Oil 202, 550 111,651 170,029 122, 329 89, 530 73,180 3 104,471 2 104,657 3 70, 387 2 63,359 3 100, 237 173,028 136,026 112, 905 158, 711 4,152 5,009 3,824 3,709 938, 364 778,743 322,849 645,723 2 134, 715 2 173, 438 2114,888 2 161, 751 70, 904 45,410 93,051 88, 595 2 31,846 2 45,765 2 31, 585 .2 48,959 2 43, 203 2 28, 979 2 42,401 2 28,474 2 49, 444 2 62,663 40,808 60, 209 12,092 10,333 8,287 10, 526 47,013 64,802 56,182 40,431 * 812,162 1,170, 221 609, 262 379, 626 291,839 306,032 246,189 320,972 203,950 195,008 3 4, 745 170, 283 21, 793 8,361 14, 262 6,356 2162,124 2 97,497 3 160,978 2 95,154 14,370 N 10,049 8,565 6, 486 2 29,888 39,891 24, 207 44,475 456 487 119 287 9,896 32,026 9,966 28,528 196,245 268,184 202,493 171,265 623 816 872 862 558, 692 770, 253 542,878 682, 279 3 23,266 32,680 3 37,909 82,861 966 MONTHLY LABOR REVIEW----DECEMBER 194 6 T able 2. —Assets and Earnings of Credit Unions, 1944 and 1945, by States— Continued Number of associations 1 State, and type of charter N o r t h D a k o ta . Ohio. Oklahoma___ Oregon______ Pennsylvania. Rhode Island.. South Carolina South Dakota 3_ Tennessee. Texas. TJtah.. Vermont. Virginia.. W ashington. __ West VirginiaWisconsin____ Wyoming : Year 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 1945 1944 Total Re port ing 93 95 583 589 71 75 71 75 586 587 36 37 35 39 32 32 117 127 334 354 64 66 10 9 86 91 178 200 63 67 534' 551 18 19 87 80 567 575 66 72 68 71 571 560 35 34 29 31 32 32 115 124 319 328 62 65 9 9 83 86 174 180 59 60 534 548 17 18 Paid-in share capital $2,153, 649 1, 560, 501 22, 665,272 22, 554,131 954,852 764, Oil 1,657,161 1, 585, 523 22,109, 027 19, 976,363 4,160, 685 3, 713,056 475,998 492,980 495, 777 432,363 4,285, 476 3, 613,033 10, 680, 407 9, 565, 633 1, 441, 870 1,291, 712 67,859 72,201 1, 623, 534 1, 629,188 4,354, 530 4,074,313 1,185, 546 1,009,311 17,144, 895 15,110,319 292, 789 230,943 Reserves (guaranty fund, gen Total assets eral reserve etc.) $38, 597 29,867 788,602 1,009, 014 79, 711 86,153 91,957 99, 714 831, 494 1,255,130 430, 473 369, 780 30,274 44, 716 19, 794 34, 466 509, 368 367, 724 705, 052 839, 769 72,840 80, 718 2,250 2,584 213, 237 316, 819 348,999 371, 762 109,095 129,608 1, 546,123 1, 453, 581 9,141 15, 375 $2, 233,424 1, 617,913 24, 223, 640 24. 336,012 2,246,601 1,812, 545 1,819,237 1, 749,892 24,033, 969 22,065,186 10, 904,433 9,134,996 537,129 561, 540 531, 688 467,914 4, 939, 793 4, 253, 506 11, 795,192 10, 634,060 1, 612,069 1, 444, 259 81,164 75,826 2,082,280 2,159,086 4, 776, 410 4, 467,146 1, 413,816 1,201, 774 19, 065, 759 16,871,283 309,246 246,337 N et earn D ivi ings dends on shares $29, 759 17,366 321, 372 288,882 2 43,115 26,130 27, 014 26,027 451,817 380, 534 149, 536 129,433 8, 278 8,053 8,402 7,420 120, 941 57, 534 205, 521 2 221, 783 2 34,015 2 32, 706 1,019 735 39, 775 41,094 95,303 56,318 25, 913 24,446 395, 744 361, 551 6,428 5,489 $16, 756 10,325 278, 563 242,121 2 31,315 19, 521 24,054 21,137 381, 417 331,854 85, 942 75,431 8,058 6,947 8,422 7, 302 97, 514 76, 779 168, 980 2 160,116 2 23, 674 2 21,081 448 398 36,130 31, 496 80, 769 44,981 22,998 22,913 229, 798 219,135 5,334 4,808 i^ ° £ ,0f w ? di£fe£en?e b®t1we®11 tbe total number of associations and the number reporting is accounted dation whfch hTd f f i S f a q S S S d ^ t h e ^ c t a t e r s Y ^ ^ ° f “ “ ^ &nd associations in Process 2 Partly estimated. ? Federal associations only; no State-chartered associations in this State. Includes interest paid on deposits by State-chartered associations. 6 Loss. '^ i' yet beenrfom eTunderSitn ly ’ although State Permissive legislation was passed in 1945, no associations had https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Labor-Management Disputes Controversies and Significant Developments, November 1946 BITU M INO U S coal strike.-—On November 21 practically the entire bituminous coal mining industry was shut down for the second time, in 1946 as the miners, members of the United Mine Workers of America (AFL), stopped work because of a dispute between their union and the Federal Government, which had been operating the mines since May 29. The issues involved in the controversy stemmed from a request of the union to reopen the contract which it had signed with the Government at the termination of the 59-day work stoppage in the spring of the year.1 The union contended that the reopening provisions of its 1945 con tract with the coal operators had been incorporated into the agree ment signed by Secretary of the Interior J. A. Krug and UMWA President John L. Lewis. Under that particular provision, the union held it was permitted to submit new wage proposals upon a 10-day notice and, after 15 days of negotiations, to terminate the contract following a 5-day notice. The Secretary of the Interior, on the other hand, took the position that the contract was in full force and effect for the period of Government operation of the mines and could not be unilaterally reopened. Secretary Krug agreed, however, to confer with union representatives, and discussions between union and Government representatives began November 1. Neither Mr. Krug nor Mr. Lewis participated in the initial conferences. The union submitted general demands for wage rate increases, reduction of hours, increased employer contributions to the health and welfare fund, and adjustment of issues relating to foremen and supervisory employees. The union also raised questions of compliance with mining, workmen’s compensation, and occupational disease laws. Later conferences involved both the Secretary of the Interior and the president of the United Mine Workers, but these also did not result in a solution acceptable to the union. Accordingly, on No vember 15, Mr. Lewis gave formal notice of expiration of the con tract as of midnight November 20. The same day (November 15) the Attorney General issued an opinion that the contract signed on i See M onthly Labor Review, June 1946 (p. 915). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 967 968 M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 May 29 was in effect for the full period of Government operation and could be reopened only by mutual consent of the contracting parties. Three days later, Justice T. Alan Goldsborough, of the Federal Dis trict Court of the District of Columbia, issued a temporary order restraining all officials and attorneys of the UMWA from permitting to continue in effect the union notice purporting to terminate the Krug-Lewis agreement of May 29, and scheduled a hearing for November 27. The court order was issued upon application of the Attorney General, who stated that the notice of termination was “in fact and in effect” a call to strike. On November 21 an estimated 340,000 miners were reported idle. Upon complaint, filed by the Federal Coal Mines Administrator, that the UMWA had violated the restraining order by failing to withdraw the contract expiration notice, the union and its president were cited for contempt of court, and trial was set for November 27. As the trial progressed the district court ruled that the Norris-LaGuardia Act did not apply to the case and on December 3 Justice Goldsborough found the United Mine Workers and its president in contempt of court. The following day (December 4) the union was fined $3,500,000 and President Lewis $10,000. The union indicated it would appeal the court’s decision, as the Government took further steps to conserve the Nation’s dwindling stocks of bituminous coal pending settlement of the controversy and the miners’ return to work. On December 7 the President of the United Aline Workers directed each union member in the bituminous coal districts “ to return to work immediately to their usual employment under the wages, working hours, and conditions of employment in existence on and before November 20, 1946.” According to the union’s president this action was necessary to free the Supreme Court “ from public pressure superinduced by the hysteria and frenzy of an economic crisis” and because “ public necessity requires the quantitative production of coal during such period.” Maritime strike settled— Final settlement of the three-coast2 stop page of licensed maritime workers and longshoremen was achieved when members of the International Longshoremen’s and Warehouse men’s Union (CIO), the Marine Engineers Beneficial Association (CIO), and the Masters, Mates, and Pilots of America (AFL) ratified agreements reached on November 17 and 18 with the Waterfront Employers Association of the Pacific Coast and the Pacific-American Shipowners’ Association. Substance of the money provisions in the MEBA and MMP agree ments with the Pacific-American Shipowners’ Association were identi cal with those reached on the Atlantic and Gulf Coasts by the same unions. Basic wage rates were raised 15 percent, overtime was set See M onthly Labor Review, November 1946 (p. 778) for settlements on the East and Gulf Coasts https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 969 LABOR-MANAGEMENT DISPUTES at $1.60 an hour, and the night relief rate at $1.50. The union security clause of the East Coast contracts for MMP and MEBA provided maintenance of membership for all but masters, and preferential hiring for all but masters in separate bargaining units. On the Pacific Coast the parties worked out special clauses to fit the particular needs of each contract. The CIO longshoremen’s agreement with the West Coast Waterfront Employers’ Association provided for hourly increases of 15 cents in basic rates and 22% cents in overtime rates. Eligibility for future vacations will require only 1,344 hours worked a year instead of 1,500. An impartial three-man Longshore Safety Commission is to be ap pointed which will submit recommendations for revising the existing safety code. Truck drivers' strike settled.—A 51-day stoppage of truck drivers for the United Parcel Service in the New York City area was settled on November 2 when members of the International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America (AFL), signed an agreement providing wages of $56 and $57 for a 40-hour week. Work Stoppages in October 1946 APPROXIMATELY the same number of work stoppages (450) began in October as in September 1946. Somewhat fewer workers (290,000), however, were directly involved in October stoppages than in the preceding month (380,000). T able 1.— Work Stoppages in October 1946, with Comparable Figures for Earlier Periods1 Work stoppages beginning in the period Man-days idle (all stoppages) Period Number Workers involved Number Percent of estimated working time (all industries) October 1946 2______________________ ______ ______ September 1946 2_________ ________ ___ ______ August 1946 2___________________________________ July 1946 2________________________________________ 450 450 500 480 290, 000 380,000 235, 000 185,000 4, 500, 5,000, 3, 425, 3, 300, 000 000 000 000 0 .6 .8 .5 .5 October 1945..................... .............................. ........................ 474 550, 500 8,611, 000 1 .4 4, 025 4, 258 4 ,347 2,551 4, 095, 000 2 ,9 9 6 ,4 0 0 1, 822,400 1, 041, 000 102, 725, 000 23,372, 000 7, 547, 000 1 4 ,859,000 1 .6 .3 .1 January-October: 1946 2_________________________________________ 1945__________________________________________ 1944__________________________________________ 1935-39 average___ ___ . . . __ ___ ___ 1 All known work stoppages arising out of labor-management disputes involving 6 or more workers and continuing as long as a full day or shift are included in reports of the Bureau of Labor Statistics. Figures on “ workers involved” and “man-days idle” cover all workers made idle in establishments directly involved in a stoppage. They do not measure the indirect or secondary effects on other establishments or industries whose employees are made idle as a result of material or service shortages. 2 Preliminary estimates. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 970 MONTHLY LABOR REVIEW----DECEMBER 1 9 4 6 Idleness of workers employed in establishments directly involved in labor-management controversies declined from approximately 5,000,000 man-days in September to 4,500,000 man-days in October. In each of these months widespread maritime strikes accounted for more than a third of the total lost time. Including disputes continued from earlier months, a total of 750 stoppages were in effect at some time during October. These involved about 450,000 workers. , Activities of the United States Conciliation Service October 1946 Cases closed in October 1946 by the United States Conciliation Service showed a large increase over the number closed during Septem ber. Inclusive of all activities, 1,633 cases involving 605,507 workers were closed in October, as compared with 1,263 cases involving 396,024 workers in September. A break-down of the cases closed in October, by method of handling,1 follows: Cases closed, Workers involved All methods of handling--------- --------------------------------------------- p 633 go5, 507 Settled by conciliation___________________________________ 1 100 Dispute called off------------------------- ----------------------------------- ~ ’ 93 Unable to adjust___________________________________ 23 Referred to NLRB and other agencies_______________________ 81 Referred to arbitration_____________________ 50 Consent elections held or union membership verified__________ 12 Decision rendered in arbitration____________________________ 82 Technical services completed_______________________________ H 70 Miscellaneous services______________________ 454 743 35 ’ 595 2 378 31353 44 ’i^g 1689 13 '406 ’ 500 on 790 1 D e t a ile d d a ta o n a c tiv itie s o f th e U . S . C o n c ilia tio n s S e r v ic e w ere n o t a v a ila b le w h e n t h is issu e w e n t t o p ress. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Labor Laws and Decisions Recent Decisions of Interest to Labor1 Fair Labor Standards Act APPLICATION OF VARIOUS EXEMPTIONS SEVERAL recent decisions of Federal district courts further clarify the applicability of some of the exemptions from coverage provided in the Fair Labor Standards Act. Motor carriers.—Two decisions of a district court in Kentucky applied the rule2 that the Motor Carrier Act exemption is limited to those employees of motor carriers who spend a substantial part of their time in duties affecting the safety of operation of motor vehicles. Thus, drivers, drivers’ helpers, mechanics, loaders, and checkers who were responsible for proper loading were held to be exempt from coverage, while those engaged in unloading, wheeling, and working in the warehouse were not.3 Service establishment.—In a Texas suit for the recovery of overtime and damages under the act, the court held that a company perform ing surveys for interstate concerns which are engaged in drilling oil wells is not a service establishment within the meaning of section 13 (a) of the act, which exempts service establishments.4 Retail establishment.—A coal company sold its products to both domestic and industrial consumers. In a suit brought to enjoin alleged violations of the Fair Labor Standards Act,5 the Company contended it was exempt from the act as an establishment engaged in retail trade, pointing out that the selling of coal to ultimate consumers has been recognized in the trade as a retail operation. The court, however, ruled that the company was not exempt. Following the decision of the United States Supreme Court in Roland Electric Co. v. 1 Prepared in the Office of the Solicitor, U. S. Department of Labor. The cases covered in this article represent a selection of the significant decisions believed to be of special interest. No attempt has been made to reflect all recent judicial and administrative developments in the field of labor nor to indicate the effect of particular decisions in jurisdictions in which contrary results may be reached, based upon local statutory provisions, the existence of local precedents, or a different approach by the courts to the issue presented. . 2 For discussion of this rule and its application by a circuit court of appeals, see M onthly Labor Review, iviarcn xato yj. u i ; . 3 Walling v. Silver Fleet Motor Express, Inc., U. S. D . C. W. D . Ky., Sept. 20, 1946, and Walling v. Huber & Huber Motor Express, Inc., U . S. D . C. W. D. K y., Sept. 20, 1946. i Straughn v. Schlumberger Well Surveying Corp., U. S. D . C. S. D . Tex., July 22, 1946. « Walling v. Northwestern-Hanna Fuel Co., U. S. D. C. W. D. Mont., Oct. 3,1946. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 971 972 M ONTHLY LABOR REVIEW— DECEMBER 194 6 Walling (326 U. S. 657), the court pointed out that the test is not merely whether the customers are ultimate consumers, but whether the customers consume the product in connection with the production of goods for interstate commerce. Since in this case more than 25 percent of the gross receipts 6 of the company were derived from sales to industrial users, the company was not exempt. Seamen.—A recent decision of a district court in New Jersey 7 estab lished the principle that seamen are exempt from the act not only during the periods in which they are actually engaged in navigation but also during such time as they are engaged in fitting out and repairing the employers’ ships. FURTHER CLARIFICATION OF "HOURS WORKED” Three recent cases shed additional light on the problem of the extent to which nonproductive time may be considered “ hours worked” under the Fair Labor Standards Act.8 Travel time.—Time spent in traveling over the employer’s railroad and logging roads from its logging camp to the sites of active logging operations has been held to constitute time worked under the act, for which compensation is due.9 The court pointed out that, as in the Mt. Clemens Pottery case, the travel here involved “ physical or mental exertion (whether burdensome or not) controlled or required by the employer and pursued necessarily and primarily for the benefit of the employer and his business.” Overtime.—Likewise, in a case 10in which suit was brought to recover for overtime arising from the fact that the employee’s duties included reporting to work early to open the shop, and staying late to close it, the court ruled that time spent in the performance of such duties con stitutes “ hours worked” under the Fair Labor Standards Act. Employee subject to call.-—On the other hand, a case arose in which an ice-plant engineer was subject to 24-hour call to repair break-downs of equipment, although during the time he was absent from the plant he was free to go where he pleased, so long as he kepkthe plant informed of his whereabouts. The court held that his time away from the plant did not constitute “ hours worked.” “ It sustained the contention of the lower court that the employee was not “ engaged to wait” but rather was “ waiting to be engaged.” 6 The 25 percent tolerance for companies engaged in both retail and nonretail operations was established by the Wage and Hour Administrator and was approved by the court in the Roland case, supra. 7 Walling v Keansburg Steamboat Co., U. S. D . C. N . J., Sept. 3,1946. 8 See Anderson v. M t. Clemens Pottery Co., — U. S. —, June 1946, discussed in M onthly Labor Review, August 1946 (p. 249). 9 Walling v. Anaconda Copper M ining Co., U , S. D . O. M ont., Aug. 2, 1946. 10 Spilky v . Meyer Rein & Co., U. S. D . C. N . D . 111., Oct. 17, 1946. 11 Dumas v. King (C. O. A. 8th), Oct. 11, 1946. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LABOR LAWS AND DECISIONS 973 Veterans Reemployment Officer-employees.—In two recent district court cases the courts have been faced with the problem of the reemployment rights of officeremployees in two distinguishable factual situations. In one case 12 the veteran had, prior to his induction, been an em ployee (office manager and purchasing agent) as well as an officer (treasurer and director) of the company. During his absence in the service the position of the company had not changed. The court ruled that the denial to him of reemployment as office manager was illegal. In the second case,13 however, during the absence in service of a veteran who had been vice president and director, the company had undergone a reorganization as a result of which business opera tions to which the veteran had clearly indicated hostility were adopted. In holding that the veteran was not entitled to reinstatement, the court relied not only on the “ unreasonableness” of such reinstate ment 14 but also on the argument that “ his (the veteran’s) right to be a director or vice president of the defendant is not one which this court has power to decree, for that is something in the hands of the stockholders.” National Labor Relations Act Free speech and coersive statements.—A decision of the Federal Cir cuit Court of Appeals for the Sixth Circuit15supports the position fre quently taken by the National Labor Relations Board concerning the extent to which antiunion statements by employers or their repre sentatives are protected by the first amendment to the Constitution. In that case a manager who had authority over employees’ jobs and wages stated that the employees were “ sticking their necks out” if they joined the union. The court, in upholding the ruling of the Board that there had been interference, pointed out that an employer is protected by the free speech amendment only if the statements are noncoercive, and that in this case “ the reasonable inference is that a threat of discharge or discrimination is intended.” Timely notice of elections.—Two recent decisions of the National Labor Relations Board clarify the requirements of notice in cases in which an election is directed. In one case 16 the copies of the election notice had been mailed to the company and the union, but had not been received by the com pany until a day after the election was held. The Board ruled, in »2 Van Doren v. Van Boren Laundry Service, Inc., U. S. D . C. N . J., Sept. 3, 1946. 13 Houghton v. Texas State Life Insurance Co., U. S. D . C. N . D. Tex., Oct. 1, 1946. 11 See a similar ruling in McClayton v. W. B. Cassell Co., discussed in M onthly Labor Review, August 1946 (p. 253). 15 National Labor Relations Board v. Hal Peterson, et al. (C. C. A. 6th), Oct. 16, 1946. 16 In re Hunt Foods, Inc., 70 N L R B No. 128, Sept. 12,1946. 722250— 46— 9 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 974 M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 setting aside the election, that the fact that the union had notified some of the employees, and the newspapers had carried an item on the election, was not sufficient to remedy the lack of timely notices of election. In the second case,17 however, the Board sustained the results of an election held, over the objection of the employer that “the majority of the people involved did not have time to think the matter out * * because in this instance it was shown that an election had been scheduled a month before but postponed and as a result the eight or nine employees in the small unit must have known, long before it was actually held, that an election was to be conducted. Effect of existing contract on new determination of representatives.— Where negotiations in process under an existing collective-bargaining agreement are so broad in scope as to constitute a complete reopen ing of the contract, the Board held that such a contract will not operate as a bar to a new determination of representatives.18 The Duquesne Light Co. had a contract with an independent union which provided for automatic renewal and also provided that “without can celling the agreement” either party could serve written notice within 60 days of the renewal date, requesting changes in the contract. Within the stipulated period the parties requested changes in the contract. In the ensuing negotiations a draft of a new contract was presented by the independent union, and various proposals and counter-proposals on substantive matters not covered in the old con tract were made. At this point the United Aline Wbrkers of America filed a petition for certification which the independent union con tended was barred by the contract. The Board, however, held that, in the light of the scope of the renegotiations then in process, the contract did not bar a determination of representatives. Past membership requirement in closed shop agreements.—The Na tional Labor Relations Board has recently held 19 that the closed-shop provision of the National Labor Relations Act does not sanction contracts which require past membership in the union as a condition of future employment. In this case the union contract contained a maintenance-of-membership clause which required as a condition of future employment that employees must have maintained member ship in the union for a specified period of time. The period, however, included time when no contract between the union and the employer was in effect. The Board held this provision invalid and not pro tected by the closed-shop sanctions of the act. 17 In re Uailed States Gypsum Co., 70 N L R B No. 131, Sept. 12, 1946. 18 In re Duquesne Light Co., 71 N L R B N o. 47, Oet. 11, 1946. w In re Colonie Fibre Co., Inc., 71 N L R B No. 50, Oct. 14, 1946. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LABOR LAWS AND DECISIONS 975 War Labor Disputes Act Liability of individuals for refusing to work during “cooling off 'period.”—A Federal District Court has for the first time ruled on the iquestion of whether the terms of the Smith-Connally Act subject an individual to liability for damages if he refuses to work during the 30-day period following the filing of a strike notice. In this case 20 the company, suing three employees for “willfully refusing to continue production” during the 30-day period, relied on section 8 (a) (2) of the act, which provides that during this period “the contractor and his employees shall continue production under all conditions which prevailed when the dispute arose except as modified by mutual agree ment or by decision of the court.” After examining the basic purpose of the act and its legislative history, the court held that section 8 (a) (2) was designed to prevent the calling of an official strike during the 30-day period, but does not deprive the individual worker of the right or privilege to leave the job on his own initiative. The court said: “It is difficult to believe that section 8, the heart of which is to place in the hands of the rank and file of American labor the privilege and responsibility to decide of their own violation whether there shall be strikes, was meant to deny the right of the individual to cease pro duction—a right not denied even against the Government.” Decisions of State Courts Massachusetts referendum on union-control laws. Pursuant to Massachusetts statutes, initiative petitions were recently filed to submit two union-control laws to the voters at the State elections. The first of these would prohibit labor unions from making political contributions in any form. The second would require labor unions to file annual reports subject to public scrutiny as to names and addresses of officers, salaries, scale of dues, initiation fees, and assess ments, amounts collected, and all expenditures. Suit was brought by the president of the Massachusetts State Federation of Labor and five other petitioners to prevent the sub mission of these two proposed laws to public vote.21 The Massa chusetts Supreme Judicial Court held that the first proposedjlaw could not properly be submitted because, if enacted, it would interfere with freedom of speech, liberty of the press, and the right of peaceable assembly. The court pointed out that the political activity of labor unions, like that of individuals, may be curbed by corrupt practices acts “ but under the proposed law the political activities of labor unions are not regulated or curbed but are substantially destroyed. 20 France Packing Co. v. Dailey, U . S. D . C. E. E . Pa., Sept. 23,1946. Boioe, e t al. v . Secretary of the Commonwealth, Mass. S . J* C., Sept. 20,1946* https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 976 M ONTHLY LABOR REVIEW— DECEMBER 194 6 The second proposed law, however, was declared proper for sub mission, the court saying that “ these mild regulations would be amply justified in the constitutional sense by the great power wielded by a labor union, and its capacity for harm if that power should rest in irresponsible hands and be exercised without public scrutiny.” California “hot cargo” statutes— The lower courts in California continue to disagree over the constitutionality of the State “ Hot Cargo” Act, which outlaws sympathetic strikes and secondary boy cotts for the duration of the war.22 In two cases which came before it recently, the Superior Court for Los Angeles County held the act constitutional and effective until the official end of the war. In one of these cases 23 the complaint by the publisher of a shopping-news publication alleged picketing by a central labor council to induce the publisher to refrain from dealing with a printing establishment engaged in a labor dispute. In the second case 24 the complaint alleged that members of a delivery drivers’ union engaged in a labor dispute had picketed the premises of a,supplier of the plaintiff to prevent shipments to him. In both cases the court held the acts illegal under the “ Hot Cargo” Act, and supported the constitutionality of the act as a proper exercise of the State’s police power in the face of “ clear and present danger.” On the other hand, the Superior Court for Humboldt County refused to enjoin the peaceful picketing of a railroad by employees of a lumber company, one of the railroad’s customers, with which they were engaged in a labor dispute.25 While specifying that it was not passing on the constitutionality of the “ Hot Cargo” Act in its entirety, the court held the act unconstitutional insofar as it can be interpreted to outlaw all peaceful picketing. 22 See M onthly Labor Review, July 1946 (p. 102). 22 Los Angeles Down Town Shopping News, Corp. v. Los Angeles Central Labor Council, et al., Sup. Ct. Los Angeles County, Aug. 27, 1946. 24 Farmer Bros. v. Wholesale Delivery Drivers and Salesmen Union Local 696, Sup. Ct. Los Angeles Countv Sept. 17, 1946. ’ 28 Northwestern Pacific Railroad Co. v. Lumber and Sawmill Workers Union, et al., Sup. Ct. Humboldt County, Sept. 10, 1946. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Prices and Cost o f Living Decontrol of Prices and W ages1 THE abandonment of all remaining price ceilings, except those for rents, sugar, and rice, was announced by the President on November 9, 1946. At the same time, an Executive order provided for the end of wage and salary controls, as: “ The removal of price controls leaves no basis or necessity for the continuation of wage controls, which have operated, in most industries, only as an adjunct to price controls.” In taking such action, the President stated that “ general control over prices and wages is justifiable only so long as it is an effective instru ment against inflation. I am convinced that the time has come when these controls can serve no useful purpose. * * * that their further continuance would do the Nation’s economy more harm than good.” Following the President’s report of October 14, regarding the meat shortage and the general stabilization program, meat had been decon trolled and the lifting of other controls had been accelerated. As a result, it was pointed out, practically all foods and many other com modities had been freed from Federal control. Therefore, to retain the remaining controls would have led, in the judgment of the Price Administrator, “ to distortions in production and diversions of goods to an extent far outweighing any benefit that could be achieved.” In addition, the President stated, existing conditions were more favorable for the return to a free economy than those in existence “ when the present badly weakened stabilization law was finally enacted by the Congress.” 2 1 Data are from W hite House release of November 9,1946, and Federal Register, Vol. 11, No. 221 (p. 13435). 2 For a brief statement on the amended Emergency Price Control Act of 1942 and the Stabilization Act of 1942, as amended on July 25, 1946, see M onthly Labor Review, November 1946 (p. 832). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 977 978 M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 Reasons cited for the retention of rent ceilings were the extreme shortage of housing, which was expected to continue for a long time, and the fact that tenants were in no position to protect themselves against extortionate demands. If rents were fixed by ordinary meth ods, hardship would result. The President added: “ It may be that some adjustment of rents will be required, but control of rents and control over evictions must be continued.” Regret was expressed that it was not possible to retain price controls on building materials to facilitate the veterans’ emergency housing program. To maintain them would have meant that the raw materials needed for housing and for alternative uncontrolled products would be utilized for the latter purposes. The only other control retained was “ that necessary to implement the rationing and allocation programs of sugar and rice.” Wage and salary controls which were removed consisted of those that were authorized by the Stabilization Act of 1942, and in recent months had been administered in large part by the National Wage Stabilization Board (established by Executive order of December 31, 1945).3 This action did not affect “ the statutory provision governing changes in terms and conditions of employment in plants operated by the Government pursuant to the War Labor Disputes Act.” 4 Re sponsibility also remained for the disposition of pending caset involving alleged violations of wage controls before November 9. The Bureau of the Budget was asked to prepare plans, in consulta tion with the agencies involved, for the reduction of operations re sulting from decontrol. In closing his statement, the President said: “ Today’s action places squarely upon management and labor the re sponsibility for working out agreements for the adjustment of their differences without interruption of production.” 3 For summaries of provisions of Executive orders affecting wage control see M onthly Labor Review, March 1946 (p. 397), April 1946 (p. 538), M ay 1946 (pp. 833, 836). 4 For summary of provisions of this act see M onthly Labor Review, August 1943 (p. 305). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PRICES AND COST OF LIVING 979 Prices in the Third Quarter of 1946 THE price advance during the third quarter of 1946 was greater than the entire increase from the hold-the-line order in the spring of 1943 to June 1946. Led by a record increase of 19.6 percent for foods, consumers’ prices rose 9^ percent during the quarter; wholesale prices advanced 9.8 percent. Both primary market and retail prices reached the highest levels since late 1920. The dominant influence during the quarter continued to be the huge effective demand from consumers and industry for goods and services, supported by the high level of national income. Income payments to individuals of about 167 billion dollars, civilian employ ment of 58 million, farm income and business profits after taxes, all were higher than ever before. The greatly reduced level of Government spending after the end of the war was offset by a substantial rise in net foreign purchases and purchases of producers’ durable goods, and by an increase in the rate of consumer expenditures. Total volume of foreign trade continued at high postwar levels during the third quarter. The revaluation of currencies in Canada and Sweden increased these countries’ ability to purchase in American markets. The annual rate of expenditure for consumer goods and services during the third quarter amounted to 126 billion dollars with an increasing proportion represented by consumer durable goods. There appeared to be a leveling off in the physical volume of purchases of nondurable goods and some indication of consumer resistance to high prices and poor quality of such goods. Demand for many products still far exceeded supply, although total production reached an annual peacetime peak of 172 billion dollars and marketings of goods were increasing. Production of services, foods, and other nondurable consumer goods in the third quarter were far above prewar rates. Output of many durable goods surpassed peacetime highs but production of automobiles, refrigerators, and sewing machines was still below the 1941 level. Housing was critical and nonresidential construction was curtailed to meet the needs of the housing program. The following table shows percentage changes in consumers’ prices and in primary market prices for selected periods. From June 30 to July 25 all goods and services, except rents, which were controlled by local ordinances in some areas, and utilities and other public services, normally regulated by other agencies, were free of price control. The threat of resumption of controls remained as a partial check. On July 25 the Price Control Extension Act of 1946 extended price controls for 1 year and with certain exceptions restored https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 980 M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 controls which, had been in effect on June 30. Congress expressed the desire to terminate general control of prices and the use of subsidies as rapidly as possible. The act also exempted a large proportion of agricultural products from price control at least until August 21, 1946, and specified that only those commodities, certified by the Secretary of Agriculture as being in short supply, could be continued under price control. Under the decontrol policy OPA moved rapidly during the quarter to remove controls. In late September only about 71 percent of all items in the wholesale price index, excluding gas and electricity, 62 percent of items in the consumers’ price index, and 55 percent of retail food prices remained under OPA control. The new act also contained a number of important provisions which resulted in price increases during the quarter. It specified that maxi mum prices must cover increases in average costs since 1940 and guaranteed distributors’ margins in effect on March 31, 1946. Weighted average price regulations were forbidden. The BankheadBrown Amendment specified that maximum prices for cotton and wool products must cover raw material costs, mill conversion costs, and a reasonable profit. P ercen t o f Change in C onsum ers’’ P rices a n d in P r im a r y M a rk ets, in S pecified P eriods 1 Percent of change Commodity group C o n su m e r s ’ p rices: A ll i t e m s _______ F o o d _______ _____ _____ _______ C lo t h in g .................................. ............... R e n t _______________________ _____ F u e l, e le c tr ic ity , a n d i c e ________ G as a n d e le c t r ic it y ______________ O th e r fu e ls a n d ic e _____ _____ _ H o u s e fu r n is h in g s ..................... .......... M is c e lla n e o u s ___________ _______ P r im a r y m a r k e t prices: A ll c o m m o d it ie s ....... ..................................... .. F a r m p r o d u c ts ...................................... F o o d s ____________________________ H id e s a n d le a th e r p r o d u c t s _____ T e x t ile p r o d u c ts ....................... ........... H o u s e fu r n is h in g s g o o d s ............. F u e ls a n d lig h tin g m a te r ia ls ____ M e ta ls a n d m e ta l p r o d u c ts . . B u ild in g m a te r ia ls ______________ C h e m ic a ls a n d a llie d p r o d u c t s .. M is c e lla n e o u s c o m m o d itie s _____ A ll c o m m o d itie s , e x c e p t farm p r o d u c ts a n d fo o d _____ _______ From From holdIn last From end In last the-line From wage month be quarter, of war, fore war in June 1946 Aug. 1945 year, Sept. order,2 base date, Europe, 1945 to M ay 1943 Jan. 1941 to to Sept. to Sept. Aug. 1939 Sept. 1946 to Sept. Sept. 1946 1946 1946 to Sept. 1946 1946 + 9 .5 +19.6 + 5 .5 + 0 .3 +3. 5 - 0 .4 + 6 .3 + 6.1 -j- 1. t> +12.8 +23.6 +13.3 + 2 .7 -3 .7 + 7 .3 +13.4 + 4 .3 +13.2 +24.9 + 11.9 + 0 .5 + 3 .3 - 3 .7 + 8 .6 +12.8 + 4 .3 +16.6 +21.7 +29.7 + 0.7 + 6.3 - 4 .6 +15.0 +32.4 +12.7 +44.7 +78.4 +63.9 + 3.6 +13.5 - 5 .9 +31.2 +65.3 +27. 6 +65.4 +4. 3 +17.3 - 7 .4 +41.7 +64.6 +29.4 + 9 .8 +10.1 +16.8 +15.7 +15.1 + 2 .9 + 7 .4 + i. 8 + 3 .0 +2.1 + 3 .7 +17.3 +21.6 +24.0 +20.0 +26.2 + 8 .7 +11.2 + 9.1 +13.6 + 3 .3 + 7 .7 +17.9 +24.1 +25.7 +19.3 +25.6 + 8 .6 +12.1 + 8 .9 +13.4 + 3 .3 + 7 .7 +19.1 +22.8 + 19.4 +20.2 +29.1 +10.6 +16.7 +10.0 +21.1 + 3.8 +11.1 +53.5 +115.5 +79.0 +38.3 +67.2 +27.6 +30.8 +16.9 +34.3 +25.2 +32.4 +65.3 +153.0 +96.3 +52.8 (-85.4 +32.7 +29.9 +22.5 +49.3 +32.6 +39.3 + 6 .3 +12.3 +12.4 +16.0 +33.1 +40.1 +48.0 + 86.2 i In comparing retail and primary market price movements, the following differences between the con sumers price and primary market price indexes must be noted: The primary market index is based on prices of selected commodities of unchanged specifications in major trading centers, which are considered repre sentative of all commodities. The consumers’ price index is based on prices of selected goods and services purchased by moderate-income families in large cities and reflects in part the effect of disappearance of lower-priced articles. * The President’s hold-the-line order was issued April 8, 1943. The price rise which had led to this order reached a peak in M ay, which is, therefore, used for this comparison. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PRICES AND COST OP LIVING 981 During the quarter there were significant differences in the extent and timing of price rises for different commodity groups. Immedi ately after June 30, there were sharp increases in primary market prices, particularly agricultural commodities. Prices for 28 raw materials, traded on organized exchanges, jumped 25 percent in the first 17 days of July. The Bureau’s comprehensive price index of nearly 900 commodities averaged 10 percent higher in July than in June—the largest monthly advance in the history of the series. Record increases occurred for farm products, foods, and hides and leather products. Retail prices of consumer goods and services increased 5.8 percent between mid-June and mid-July, with a 13.8percent rise in retail food prices. Although there were substantial increases for a few scarce industrial goods, manufacturers of nonagricultural commodities generally held prices at June 30 ceiling levels, or slightly higher levels already under <consideration, pending final action on OPA legislation. Retail prices .of living essentials other than foods increased only 0.3 percent on the :average between June and July. In the first few weeks after restoration of OPA (July 26) prices con tinued to rise, although the rate of advance was reduced considerably and prices of a few commodities were rolled back to former ceilings. The new price control law left important foods uncontrolled and prices of agricultural commodities reached peak levels in late August. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 982 M ONTHLY LABOR REVIEW— DECEMBER 194 6 Wholesale prices of most other commodity groups also increased, reflecting ceiling adjustments required by the provisions of the new act. After restoration of controls on livestock and meats in early September at levels higher than on June 30, but considerably below the level of uncontrolled prices, wholesale prices dropped sharply. Average primary market prices declined 5.1 percent in the first 2 weeks of September; however, the average for September was 4.0 percent below August, but 9.8 percent higher than in June before suspension of controls. In contrast to the sharp fluctuations for agricultural commodities, prices for industrial goods rose steadily throughout the quarter and in September were 6.3 percent higher than the June average. The persistent advance for industrial goods reflects a continuation of the wartime pressure of higher costs, which resulted in numerous upward adjustments of ceilings during this quarter. The American economy during the third quarter of 1946 was characterized by sudden changes in price and production situations, with conflicting trends that make uncertain the direction and extent of future changes. Consumer Goods FARM PRODUCTS AND FOODS Prices of farm products and foods rose sharply following the lapse of OPA controls on June 30. Record increases of 12.1 percent in prices for farm products in primary markets, and of 24.2 and 13.8 percent for wholesale and retail food prices occurred during July, with the suspension of subsidy payments and continued high demand for scarce commodities. Prices advanced through August as many commodities remained uncontrolled. The trend was reversed in September in primary markets, primarily because of reinstatement of ceilings over livestock and meats. Retail prices for most foods, par ticularly those in short supply, continued to rise. At the end of the third quarter, prices for farm products and wholesale foods were 10.1 and 16.8 percent above June levels and double those existing prior to World War II. With the exception of many fresh fruits and vege tables, in seasonally abundant supply, these higher price levels were shared by all major commodity groups. General price uncertainty and confusion characterized food mar kets. Contributory causes were the delay in reenacting price control legislation and, later in the quarter, the simultaneous emphasis upon decontrol and a possibility of recontrol if prices rose unreasonably. The revival of OPA on July 25 automatically returned to June 30 ceilings, commodities representing approximately 37 percent of the average family food budget; namely, cereals and bakery products, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PRICES AND COST OF LIVING 983 fruits and vegetables, imported foods, sugar, and sweets. An addi tional 55 percent was specifically exempt until August 21, pending a final decision by the Price Decontrol Board. These items included livestock, meats, poultry and eggs, dairy products, grains, cottonseed, soybeans, and their products. Ceiling increases to cover higher raw material and labor costs were allowed for many commodities restored to control on July 25. On August 20 resumption of price controls over livestock, meats, cottonseed, soybeans, flaxseed, and products was ordered by the Decontrol Board. Subsidies for meats were reinstated at previous rates, but those on dairy products, flour, the major processed vege tables, dried prunes, raisins, dry beans, coffee, soybeans, and flaxseed, were discontinued. Other commodities, principally fruits and vegetables, were automati cally removed from controls on September 1, when the Secretary of Agriculture excluded them from the first list of products in short supply issued, as required by the new Price Control Extension Act. Led by increases for butter, prices for dairy products, uncontrolled throughout the quarter, rose 32.8 percent at wholesale and 26.4 per cent at retail from June to September. In some cities retail prices of butter as high as $1 per pound were reported in September; the aver age for September was 82.9 cents, compared with 61.0 cents in June and 50.0 cents a year earlier. Most of the advance occurred in July, after termination of the dairy feed subsidy, which in June amounted to about 20 percent of retail prices for butter, 8 percent for fluid milk, 13 percent for cheddar cheese, and 11 percent for evaporated milk. Supplies of butter, formerly scarce, became generally adequate. After the lapse of OPA controls and subsidies, livestock prices at primary markets climbed rapidly—more than 29 percent in 2 months— despite unprecedented marketings. As a result of high prices and the possibility of recontrol, livestock previously withheld, including many not in prime condition, swelled the volume generally marketed during the summer. With the reinstatement of price controls on September 1, marketings dwindled to a new low. The new ceilings, ordered by the Secretary of Agriculture as a production incentive, were set above June levels but considerably below August quotations. Livestock prices declined 15 percent in September; wholesale meat prices, which had risen nearly 80 percent between June and August, dropped 34 percent—more than any other commodity group. Retail meat prices were over 39 percent higher in August than earlier in the year. New retail ceilings established September 10 were 20 percent lower than in the previous month; but beef, pork, and veal generally were unavail able. As meat supplies fluctuated between extremes, demand for meat substitutes, such as poultry, fresh fish, and eggs also varied, weakening https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 984 M ONTHLY LABOR REVIEW— DECEMBER 194 6 somewhat in July and August and gaining strength in September. At retail, during the severe meat shortage in September, poultry and fish prices rose 5 percent, while egg prices moved upward more than 11 percent. Fruits and vegetables declined as a group, with seasonally lower prices for fresh produce such as onions, potatoes, lettuce, carrots, and apples. Prices for canned and dried fruits, and vegetables increased somewhat, reflecting continued heavy demand. Prices for grains, which had been particularly scarce, rose 19 per cent in July. During August demand abated because of recontrol uncertainty and decreased need for livestock feed. Prices declined somewhat, holding fairly steady at this lower level through September, with seasonably higher marketings and estimates of record crops! Although grains remained free of ceilings, cereals and bakery products were recontrolled in late July. Because of the termination of the flour subsidy (amounting to $1.03 per hundred pounds of flour at wholesale and 1 cent per pound at retail) and increased costs for raw material, labor, and freight, ceilings later were raised. Over the quarter, prices for cereals and bakery products moved up 25 percent at wholesale and more than 12 percent at retail. There was little trading in seasonally scarce edible vegetable oils. During the brief absence of controls, wholesale prices for refined lard at Chicago reached 32.9 cents per pound in August (compared to 14.8 cents in June). No important sales were reported after ceilings were restored at 19 cents in September. June ceilings, reinstated on imported commodities on July 25, were soon forced upward. Sugar prices, under an agreement with Cuba, which links purchase prices to the Bureau of Labor Statistics retail price indexes, rose 2.5 percent at retail over the quarter. Coffee ceilings were increased in mid-August, to improve the competitive position of importers and compensate them for the loss of the 3 cents per pound subsidy. HIDES AND LEATHER PRODUCTS AND TEXTILE PRODUCTS Prices for hides and leather and cotton goods increased sharply with the suspension of OPA controls at the end of June but prices for most other textile products remained at June 30 levels. Many retailers made public announcements that they would not raise their prices until forced to do so by higher costs and most manufacturers re frained from instituting price increases until the final status of price ppntrol had been determined. From June through September average prices of textile products in primary markets advanced 15 percent. Cotton goods rose 19% percent; woolen and worsted goods, 1 percent; clothing, 2 percent; and hosiery and underwear, 17 percent. Quotations for rayon and nylon yarns and staple fiber remained unchanged. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PRICES AND COST OE LIVING 985 The cost of clothing purchased by moderate-income families ad vanced 5.5 percent between June and September. Cotton clothing prices increased 7.6 percent; woolen clothing, priced in the fall and winter months, was 3.6 percent higher than last season. In September, retail costs of clothing were more than one and one-half times as high as in September 1939. Quotations for raw cotton rose almost uninterruptedly throughout the quarter. From a level of 31 cents early in July prices had risen more than 22 percent by the end of September to the highest point in over 20 years. Strong demand and reports of the shortest crop in many years helped to stimulate the market. After the extension of price controls at the end of July, OPA granted three successive increases in maximum prices of cotton goods to cover higher raw cotton and labor costs—17 percent early in August and 2}£ and 2 percent respectively on August 30 and September 18. The Price Control Extension Act of 1946 provided that prices for cotton products must reflect either parity or the current market price for raw cotton, whichever is higher, as well as current conversion costs. The price of domestic raw wool, 14 to 23 percent lower than a year ago, because of reductions in selling prices by the Commodity Credit Corporation to encourage the use of domestic wools, showed no change over the quarter, although ceilings were removed in September. The Commodity Credit Corporation remained the sole purchasing and selling agent for practically all domestic wool, selling to mills at prices lower than it paid growers. During July, over 5,000 bales of raw silk were sold at prices varying from $16.50 to $6.78 per pound. The July quotation on the 13/15 denier D grade was about 142 percent above prewar. Only a small proportion of silk offered was sold at the August auction, and at prices considerably lower than the first sale. The September sale was held on open auction, but “ upset prices” were established by the Government below which bids would not be accepted. About 5,000 bales were sold, at prices ranging from $6.20 to $13.50. Manufacturers’ and retailers’ prices for apparel generally increased as costs of fabric and labor rose and new ceilings were established for most articles. Retail prices of women’s garments continued to advance although retailers reported consumers were becoming more selective in the choice of fabrics. Stocks of tailored rayon slips failed to meet consumer demand as manufacturers continued to produce a greater proportion of lace-trimmed undergarments selling at higher prices. Women’s coats, utilizing higher quality fabrics in some cases, were higher than last season. Manufacturers’ prices of men’s and boys’ clothing increased from 10 to 24 percent. Retail prices of men’s suits, topcoats, and over coats increased as higher labor and trimming costs were passed on to https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 986 M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 the consumer. Overalls, work shirts and work trousers, business shirts, woven shorts, knit undershirts, and rayon hose also were higher. Women’s silk hosiery was available at many retail stores but at prices ranging from $1.95 to $4.50 a pair, well above prices for the more durable nylon. Market prices of hides and skins soared nearly 40 percent in July and declined only 8 percent after ceilings had been restored. As a group, prices of hides and skins averaged higher during July 1946 than at any time since September 1920. Imported goatskins led the July upswing as trading in foreign skins returned to a fully competi tive basis. Tanners’ eagerness to acquire raw stock doubled prices within a few weeks after the RFC ceased to regulate imports, and sustained goatskin prices at high levels throughout the third quarter. Quotations for domestic cattiehides and calfskins advanced over 35 percent during the July interim between controls to levels comparable with those in world markets and then returned to the ceiling in effect since 1941. Black-market meat operations were said to have reduced the quantity of hides and skins available to tanners during the latter part of the quarter. Leather prices advanced approximately 20 percent in July, reflect ing the rising cost of raw material. After controls were restored, prices of cattle-hide leathers declined to June ceiling levels, and tanners of kid leather and shearlings were granted price advances to compen sate for the soaring prices of imported skins. Factory prices of shoes moved up 12 percent in the third quarter, following adjustments in ceilings. Although August output of foot wear continued at an unusually high level, sharply reduced shoe production was anticipated for the fourth quarter. Several prominent shoe firms curtailed production as a result of leather shortages, and manufacturers showed increasing interest in South American hides. Prices paid by consumers for medium and lower grades of leather footwear continued to rise as a result of higher manufacturers’ ceiling prices and the disappearance of lower price lines. Retailers and wholesalers complained of difficulty in obtaining shoes, many report ing an oversupply on nonessential footwear and an insufficiency of durable shoes, with no prospect of balanced stocks before the end of the year. FUEL AND LIGHTING MATERIALS Average primary market prices for fuel and lighting materials increased 7.4 percent during the third quarter of 1946, although realized prices for electricity and gas were lowei. Decontrol of prices for petroleum and its products and specific OPA amendments granting higher ceilings to coal producers accounted for the increase in primary market prices, The revised act extending OPA restored https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PRICES AND COST OF LIVING 987 to retailers their March 1946 margins, thus generally raising solidfuels prices to consumers during the quarter. Both commercial and domestic electricity rates continued their 1946 downward trend during the quarter, as earnings of utilities permitted billings at lowered rates. Gas rates remained unchanged in most cities. However, some utilities selling manufactured gas increased rates to cover higher fuel costs. Late in the second quarter, the OPA, in order to cover wage and other cost increases and to “ remove price as a transition period impediment to production and supply,” had granted substantial price increases to coal producers, averaging 40 cents per ton for bituminous coal and 91 cents per ton for anthracite. Retailers were first granted an exact “ pass-thru” in dollars and cents which reduced retailers’ percentage margins. Late in August solid-fuels retailers were granted an additional increase of 10 to 30 cents per ton to restore March 31, 1946, percentage margins, which had been reduced in June when ceiling increases were sufficient only to pass on to the consumer the dollars-and-cents increases in wholesale prices. With the suspension of price control at the end of June, producers of Connelsville beehive coke advanced their prices approximately $1.25 per ton. Prices were rolled back to June 30, 1946, levels when price control was reestablished, but shortly thereafter an OPA amend ment granted these producers a $1.35 per ton ceiling advance to compensate for higher coal and labor costs. Early in July the Interstate Commerce Commission allowed in creases of 6 cents per net ton in coal freight rates of less than $1.00 per ton and 8 cents in freight rates greater than $1.00. Retailers were permitted to pass on this increase to consumers. Fuel-oil prices as well as prices for all petroleum and its products were formally decontrolled in August. This was followed by price rises of 25 to 35 cents per barrel for crude petroleum. The Govern ment then withdrew subsidy payments of 25 cents per barrel to certain stripper-well crude producers. Higher prices for crude petroleum were followed by corresponding increases in prices of petroleum products at all levels of sale, high lighted by fuel-oil price increases amounting to 0.6 to 1.75 cents per gallon at retail in several cities. HOUSEFURNISHINGS Prices of housefurnishings rose 6.1 percent at retail during the third quarter and 2.9 percent in primary markets. Advances at both levels followed largely increases in OPA ceilings. Prices during the OPA “ holiday” were generally stable. Substitutions to higher priced merchandise, resulting from continued shortages, and reintroduction of some consumer durable goods into the consumers’ price index in September, including radios, sewing and washing https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 988 M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 machines, vacuum cleaners, and mechanical refrigerators, also con tributed to the advances. Increases for these durable goods represent the total increase to September 1946 from December 1941, the last period when stocks were near normal. They account for a 1 percent increase in the retail costs of housefurnishings between August and September. Prices of wool floor covering to the consumer advanced as retailers sold higher-cost inventories and the shift from lower to higher grades of covering continued. There was no change at the primary market level. Higher wholesale and consumer prices reflected the third industry-wide increase granted manufacturers of hard-surface floor covering on August 30, 1946—amounting to 2.8 percent—to cover increased freight rates and increased costs of materials and labor. Manpower shortages and shortages of certain materials, such as burlap, sizing, and linseed oil, continued to hamper production. Changes in retail costs of wood household furniture during the quarter varied as retailers shopped around for sources of supply. Increases due to substitutions of higher price lines were numerous. OPA adjustments were followed by higher prices of bedsprings and sofa beds at wholesale and retail and of upholstered furniture and wood office furniture at the primary market level. One spokesman estimated current production of wood household furniture at 40 per cent above the 1941 level. Supplies of hardware, upholstered springs and other metal items, and ticking and filling materials remained limited. Retailers reported all low- and medium-priced case goods in short supply, with dining-room suites almost unobtainable. Upholstered furniture appeared to be obtainable in greater quantity. September 1946 retail prices of appliances reflected both OPA advances and the long-term increase from December 1941. In August, in order to assure March 31, 1946, mark-ups, retailers were permitted to pass on manufacturers’ increases for radios, vacuum cleaners, washing machines, gas stoves, and dinnerware. Primary market prices reflected OPA-approved increases of 3.5 percent in the price of electric refrigerators, 8 percent on domestic cook stoves, 7 percent on semivitreous dinnerware, and the long-term increase caused by the réintroduction of electric washers and ironers into the wholesale price index. Full-scale production in the electrical manufacturing industry was not expected until early 1947. Material shortages continued to be the major problem. For radios, vacuum cleaners, washing machines, and some small appliances, however, current production had passed the 1941 rate and some retailers reported clearance sales on lesserknown brands of small table model radios. Other major appliances, stoves, and dinnerware continued to be scarce. -Supplies of cotton yard goods, sheets, and pillow qas.es in retail https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PRICES AND COST OF LIVING 989 stores also were scarce. Towels were more plentiful, at considerably higher prices than in June. From June to September the cost to consumers of sheets and of towels advanced 12.2 percent. HOUSING Residential rents in all large cities combined increased 0.3 percent during the quarter, the largest increase reported in the rent index for any quarterly period since early in 1942 before Federal rent controls were instituted. Although rents advanced over the period, the largest increase occurred during suspension of Federal controls in July. During this 25-day period, 21 of the 34 large cities surveyed by the Bureau reported increases in rents. The increases averaged 2.6 percent in Houston (affecting 12 percent of the tenants), slightly more than 1 percent in Cleveland and Scranton (affecting 5 percent of the tenants), 0.6 percent in Chicago, 0.5 percent in Denver, and from 0.1 to 0.4 percent in 16 other cities. Ten cities showed no change in rents and three cities reported slight decreases. Washington, D. C., which has its own rent control law, was the only city not affected by suspension of controls. Rents in 7 of the other 33 cities surveyed were controlled by emergency State laws and in 5 cities by city ordinances. Some of the emergency legislation per mitted increases up to 15 percent in rent. The short duration of suspension of controls prevented many advances which might have occurred in a longer period since many State laws require a notice of rent increase or eviction, usually one rental payment period in advance of the effective date. Following the reinstitution of Federal rent control after July 25, rents for most dwellings returned to former OPA ceilings. There was no relief during the quarter from the severe housing shortage. Continued shortages in some essential building materials delayed new construction, and some builders hesitated because of rising building costs. In spite of the handicaps to the construction program, it was announced by Housing Expeditor Wilson Wyatt that 62,800 dwelling units were completed in August, making a total of 350,000 dwelling units completed since the first of this year. Reports indicate that the rise in sales prices of homes and number of sales have slowed up somewhat during the past few months. Removal of homes from the rental market for owner occupancy is still very high. MISCELLANEOUS Retail costs of miscellaneous goods and services increased 1.6 per cent on the average during the third quarter of 1946. Scattered increases were noted in the cost of newspapers and motion picture admissions. Prices of heauty .and barber shop services con722 2 5 0 — 46-------L.o https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 990 M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 tinued^ their upward trend, as shops reported increased costs of operations. Fees for medical services showed some advance, particu larly hospital rates and charges for eyeglasses. Prices of lenses were increased at the manufacturers’ level on August 23, 1946, with OPA approval. Several laundries were allowed increases in bundle charges, and there was an indication that the delivery service of both laundry and dry-cleaning establishments was improving. The cost of auto mobile repairs was higher following Government-approved increases in the price of parts. Tobacco products, exempt from control, in creased in price at both the primary market and retail levels. Ciga rettes increased one-half cent to 1 cent a pack at retail, and many brands of cigars rose from 7% to 9 cents. During the lapse of OPA controls, some manufacturers of soaps raised prices because of limited pro duction and increased costs of raw materials and labor. Recontrol on July 25 returned these items to June 30 ceilings where they remained despite substantial ceiling increases in prices of raw materials. Pro duction of soap for the quarter was estimated at 50 percent of demand. Industrial Goods BUILDING MATERIALS Prices of building materials in primary markets continued upward during the third quarter, to a level approximately 50 percent above immediate prewar levels. The average advance during the quarter was 3 percent compared to about 4 percent during each of the two previous quarters. The suspension of price controls had little noticeable effect on building material prices as a group. Higher prices for some materials in July reflected the general freight rate increase, effective July 1, of 6 percent with an additional 5 percent for eastern carriers. More over, a number of price adjustments covering building materials, pending on June 30, were granted; also, there were unusual price advances for some paint materials in July, because of shortages and soaring prices of imported materials such as shellac. Production of most building materials remained inadequate to meet estimated housing needs, despite the substantial increases made during the last few months. Lack of skilled labor, freight car shortages, and strikes continued to hamper production. Particularly scarce were cast-iron soil pipe, millwork, gypsum board and lath, hardwood flooring, bath tubs, and lavatories. To increase production, premium payments were authorized for several commodities in short supply, principally softwood plywood, brick, oak flooring, and convector radiators. Prices of lumber advanced 1 percent—in sharp contrast to the 5 and 6 percent increases in the earlier quarters of 1946. The principal price rises permitted during the third quarter were for central hard https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PRICES AND COST OF LIVING 991 wood and redwood lumber, and western softwood shingles. Despite substantial increases in production, the supply of lumbei still was far from satisfactory. It was reported in trade journals that lumber was widely sold in the black market at prices as much as 50 percent above ceilings. Western softwoods were on a 2 to 3 months delivery basis for priority orders. There was still a large backlog of orders for hardwood flooring, and residential flooring was reserved entirely for holders of housing priorities. Premium payment regulations, effec tive August 1, 1946, authorized manufacturers to pay reimbursable bonuses to their suppliers for specified grades and species of hardwood lumber, and entitled them to other payments based on output of residential flooring in excess of quotas. A premium payment plan was also instituted for production of peeler logs in an effort to lift production of softwood plywood. Prices of paint and paint materials rose 7.5 percent, largely during the period of uncontrolled prices. By the end of July carbon black had risen 55 percent, and shellac 65 percent, while advances ranging from 12 to 35 percent were reported in prices of litharge, red lead, linseed oil, and turpentine. Prices declined in August with the reapplication of price ceilings but not to the level prevailing before suspension of controls. Several paint materials, including carbon black, rosin, and color pigments, were decontrolled in August and September, while ceiling prices were raised for lithopone, linseed oil, gum turpentine, paint, and shellac. Wholesale prices of the paint and paint materials group in September were more than 40 percent above prewar averages and were at the highest level since 1920. Many paint materials continued in short supply. Among these were lead, litharge, litho pone, zinc oxide, and drying oils. Brick and tile prices rose 5.3 percent, raising the index for these commodities 40 percent above the August 1939 average, and almost 5 percent over the previous peak in August 1920. Fire clay and silica brick prices, which had been removed from OPA control in May, moved up about 8 percent and some local area adjustments were granted to producers of tile and common brick. Premium payments of $5 per 1,000 standard brick equivalents in excess of quotas were inaugurated, and brick and tile production showed considerable im provement. Prices of cement rose nearly 4 percent in the quarter, as ceilings were raised 5 cents per barrel for packaged cement produced east of the Rockies. The increased cost of pig iron resulted in higher prices for cast-iron enameled plumbing fixtures, and there were increases for cast-iron soil pipe, lead pipe, lime, builders’ hardware, window glass, and wall board. The shortage of cast-iron soil pipe was critical. CPA estimated in August that the supply for 1946 would fall 30 per cent short of demand. The Government instituted a number of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 992 monthly labor review—December 1916 actions to relieve the situation, including a ceiling increase of 3 per cent, an order to pig iron producers to channel greater supplies to soil pipe producers a set-aside of 80 percent of soil pipe for priority holders, a limit of 7 percent of production for industrial consumers, and premium payments effective August 1. METALS AND MACHINERY Prices of metals and metal products increased less than 2 percent from June to September 1946, with an advance of only 1 percent in July despite the absence of OPA controls. The increase in July re flected primarily higher prices for certain iron and steel products on which ceiling increases had been planned by OPA and price increases for nonferrous metals to offset the cessation of subsidy payments. The Bureau’s index of metals and metal products in September reached 114.2 percent of the 1926 level, the highest point since July 1921 and 9 percent above its level at the end of World War II. During the temporary lapse of OPA controls and subsidies in July, trading in several nonferrous metals was virtually at a standstill. A break-through in former OPA ceilings occurred first in prices of lead and zinc, when leading sellers advanced their quotations 1){ cents a pound, maintaining that the new prices were below the sum of former prices and subsidies. Copper producers withdrew from the market rather than raise prices. Meanwhile RFC continued to sell copper from its stockpile at the old ceiling price, but lead and zinc at prices in effect at time of shipment, which were above former ceilings. The restoration in late July of the old maximum prices for lead and zinc caused trading to decline sharply. Both metals were in critically short supply and both producers and consumers requested higher prices to stimulate output. The CPA stated that zinc shortage was accentuated by producers’ action in marketing only output on which premiums were paid. Prices of nonferrous metals continued to advance in the world market to levels above domestic ceilings, and RFC purchase prices of foreign lead and copper were 2 to 4 cents a pound higher than during the second quarter. Prices of zinc in the export market increased :2 cents a pound and tin 3 to 4 cents a pound. Silver prices advanced to 90.125 cents a pound early in July com pared to the former OPA ceiling of 71.11 cents. The ceiling price was restored temporarily on July 26 but advanced on August 1 to the mew Treasury buying price of 90.5 cents a pound established by ;the Congress. Prices of steel and its raw materials remained relatively stable •during the quarter. Both steel mills and scrap dealers demanded higher ceilings or decontrol after the restoration of OPA. Output remained high during the quarter, despite shortages of steel scrap and https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PRICES AND COST OF LIVING 993 pig iron. Refusal of mills to pay more than former OPA ceilings for scrap kept prices of most grades down but sharp advances were reported in July for cast scrap used by foundries. Later, incentive increases, ranging from $2.50 to $7.00 per gross ton, were allowed for cast scrap. A Nation-wide scrap drive was inaugurated at the same time. Prices of pig iron advanced early in July. Shortage of pig iron was one of the factors limiting production of castings, and CPA announced a plan for channeling supplies to castings for use in building materials and agricultural implements. An upward adjustment of $2 a gross ton in maximum prices of pig iron was made in July, retroactive to May 29. A subsidy program announced on September 17 provided for payment of premiums ranging from $8 per gross ton for production above base period quotas to $12 per ton for new production. In a further effort to aid the housing program, OPA on July 25 granted incentive price increases ranging from 10 to 50 percent over former ceiling prices to manufacturers of knobs, locks, butts, and other types of builders’ hardware. Producers of metal fasteners were permitted an additional increase of 5 percent, late in July, to offset higher labor and material costs. CHEMICALS AND ALLIED PRODUCTS Prices for chemicals and allied products rose 3 percent in July and then declined about 1 percent with the reestablishment of OPA. Increases occurred primarily in chemicals derived from scarce farm or metal raw materials. Thus, prices for inedible tallow advanced 41.4 percent; glycerin, about 8.5 percent; vanillin, 73 percent; and cotton seed meal, 45.5 percent. Prices for lead arsenate, copper sulphate, and silver nitrate were higher. Although many chemical prices declined after the reestablishment of OPA controls, higher prices for others, under increased ceilings, resulted in a September average about 2 percent above the June level. During this quarter, chemical manufacturers generally maintained stable prices but resale prices on occasional lots reflected the pressure of large demands upon tight supplies. This was particularly evident in alkalies, with July bids up to 11 cents a pound for caustic soda and 6 cents a pound for soda ash. Odd lots of sodium bichromate sold for 17 cents compared with the primary market price of 8 cents a pound and the resale prices for chemically pure glycerin ranged up to 40 cents a pound compared to 18 cents in primary markets. Primary market prices for fats and oils showed the greatest fluctu ation, advancing about 12 percent in July and then declining, so that September prices were only 1 percent above June. Sharpest increases were registered for tallows and greases, which rose about 50 percent above former ceilings because of demand from “spapers,” Advances https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 994 MONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 for vegetable oils were smaller. Prices for soybean and castor oils were raised over June ceilings to compensate for increased costs. In July, primary market prices for drugs and pharmaceuticals rose 2.9 percent, primarily because of increases for medicinal glycerin and menthol, but declined 2.2 percent in August, with a “ roll back” in glycerin prices and increased supplies of nux vomica, tartaric acid, and ergot. The development of more productive mold strains now available in quantity caused penicillin prices to decrease to 48 cents per 100,000 units, an all-time low price to wholesalers. Prices for fertilizer materials rose sharply in July and again in August, but declined in September. The increase for the quarter amounted to about 9 percent. Organic fertilizer materials rose rapidly in July because of competition with feed grades. Prices for cottonseed meal, ground bones, and animal tankage fell, following restoration of price controls. Maximum prices for mixed fertilizers were raised in August, accounting for an increase of about 4 percent during the quarter. Average prices of industrial chemicals advanced 0.6 percent over the quarter. Prices for oleic and stearic acid and glycerin rose sharply in July, but declined in August. Higher metal prices resulted in in creased ceilings for lead arsenate and silver nitrate and higher quota tions for lead napthenate. Decontrolled products, blasting powder (both grain and pellet), dynamite, and white arsenic rose by amounts varying from 9 to 18 percent. RUBBER AND RUBBER PRODUCTS During this quarter, prices of rubber and rubber products generally were stable, although a number of products were decontrolled. The price increases which occurred were principally those permitted by OPA to cover higher labor and material costs and to maintain earnings. Noteworthy among these was the approximately 2^-percent increase in retail ceiling prices on tires to restore distributors’ percentage mark-ups. Products decontrolled during this period included a number of industrial rubber goods and rubber drug sundries. Of particular importance was the September 6 directive of Recon version Director John R. Steelman to the Reconstruction Finance Corporation to maintain the sale price for natural rubber at 22}( cents a pound until the end of the year, compared with a purchase price of 23}2 cents f.a.s. or 25-26 cents delivered. Subsequently, because natural rubber production increased more rapidly than anticipated, agreements were signed with the Governments of the Netherlands and the United Kingdom to purchase additional rubber at 20}i cents per pound f.a.s. The increase in natural rubber production and shipments led to general expectation of the return of free rubber tradingUy the begin ning of next year. Supplies of synthetic rubber, however, are inade https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PRICES AND COST OF LIVING 995 quate because of the alcohol shortage. Limitations on the delivery and inventories of GR-S were reinstituted in order to insure equitable distribution of the present limited supply. Although the supply of scrap was adequate, scrap rubber dealers reported an increased reluctance on the part of reclaimers to accept scrap containing synthetic. Rejections of mixed scrap, higher freight rates, and the unsalability of synthetic tire parts caused Akron dealers to raise prices on some grades of acceptable scrap in August. PAPER AND PULP Paper and pulp prices advanced about 5 percent during the third quarter as increases in manufacturers’ ceilings were granted in order to maintain supplies and to compensate for higher labor and material costs. Higher prices for wood pulp and newsprint also were allowed because of the revaluation of the Canadian dollar and Swedish krona. During the suspension of OPA controls, mills, converters, and distributors maintained June quotations for most paper and paper products, except wood pulp. Some producers of wood pulp billed on “an adjustable pricing basis,” others raised their quotations to match the 10-percent higher prices asked by Canadian exporters and the substantially higher prices demanded by Swedish exporters. Ceiling prices for wood pulp, both domestically produced and imported, were increased approximately 10 percent, and subsidies to domestic pro ducers were restored following the reestablishment of OPA. To encourage Scandinavian imports, the amount of transportation costs required to be absorbed by sellers was cut in half. For newsprint, new ceilings were established $7 a ton higher. Following reestablishment of OPA, manufacturers’ ceiling prices for the lower-priced book and writing papers, Northern bleached sulphate waxing papers, glassine and grease-proof papers, facial tissue, toilet tissue, paper toweling and towels, and ground wood specialty papers were increased. Wholesale and retail ceiling prices also were raised to restore percentage mark-ups. During late July and August, paperboard ceilings were increased to encourage production of the essential grades used in all types of containers. Demand for paper products continued to be heavy with reports indicating the inability of many consumers to obtain supplies for current consumption, although record-breaking production was achieved in August. Localized operating problems, such as lack of freight cars, continuing shortages of mechanized equipment, and wet weather, affected pulpwood procurement on the West Coast and in the South. Imports of wood pulp were not up to expectation. Waste paper receipts, on the other hand, were larger. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 996 MONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 Index of Consumers’ Prices in Large Cities, October 1 9 4 6 1 RETAIL prices of living essentials used by moderate-income city families advanced 1.7 percent between mid-September and midOctober 1946. Food prices rose 3.4 percent, and prices of consumers’ goods and services other than food and rent rose 0.6 percent. Rents were not surveyed in October. The consumers’ price index on October 15, 1946, was 148.4 percent of the 1935-39 average and 15.1 percent higher than a year ago. In mid-October prices of goods and services used by moderateincome city families were 50.5 percent higher than in mid-August 1939. The family food bill increased 92.5 percent; clothing and housefurnishings costs each advanced more than 66 percent; but residential rents increased only 4.3 percent. Retail food prices in large cities advanced 3.4 percent between midSeptember and mid-October 1946. Butter prices rose almost 13 cents per pound during the month; in mid-October butter was 96 cents per pound as compared with 35 cents in October 1939 and 61 cents in June 1946. Poultry and egg prices—each in demand as meat substitutes in September and early October—increased 17 and 11 percent, respectively. The cost of sugar to consumers jumped 20 per cent as retailers were allowed to raise their prices to cover increases in prices given to sugar producers. 1 The “consumers’ price index for moderate-income families in large cities,” formerly known as the “cost of living index,” measures average changes in retail prices of selected goods, rents and services, weighted by quantities bought by families of wage earners and moderate-income workers in large cities in 1934-36. The items priced for the index constituted about 70 percent of the expenditures of city families whose incomes averaged $1,524 in 1934-36. The index only partially shows the wartime effects of changes in quality, availability of consumer goods, etc. The President’s Committee on the Cost of Living has estimated that such factors, together with certain others not fully measured by the index, would add a maximum of 3 to 4 points to the index for large cities between January 1941 and September 1944. If account is taken of continued deterioration of quality and disappearance of low-priced merchandise between September 1944 and September 1945, which was esti mated at an additional Yi point, the total large-city adjustment would be 4r/i points. If small cities were included in the national average, another ^ point would be added, making the total approximately 5 points. The indexes in the accompanying tables are based on time-to-time changes in the cost of goods and serv ices purchased by wage earners and lower-salaried workers in large cities. They do not indicate whether it costs more to live in one city than in another. The data relate to the 15th of each month, except those for January 1941, in tables 1 and 2. They were estimated for January 1, 1941, the base date for determining allowable “cost of living” wage increases under the Little Steel formula and under the wage-price policy of February 1946. January 1,1941, indexes in tables 1 and 2 have been estimated by assuming an even rate of change from December 15, 1940, to the next pricing date. Food prices are collected monthly in 56 cities during the first 4 days of the week which includes the Tues day nearest the 15th of the month. Aggregate costs of foods in each city, weighted to represent food pur chases of families of wage earners and lower-salaried workers, have been combined for the United States with the use of population weights. In March 1943, the number of cities included in the food index was increased from 51 to 56, and the number of foods from 54 to 61. Prices of clothing, housefurnishings, and miscellaneous goods and services are obtained in 34 large cities in March, June, September, and December. In intervening months, prices are collected in 21 of the 34 cities for a shorter list of goods and services. Kents are surveyed semiannually in most of the 34 cities (in March and September, or in June and December). In computing the all-items indexes for individual cities and the rent index for the average of large cities, because of the general stability of average rents at present, the indexes are held constant in cities not sur veyed during the current quarter. Prices for fuel, electricity, and ice are collected monthly in 34 large cities. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 997 PRICES AND COST OF LIVING Fresh fruit and vegetable prices showed a further decline of 1.3 percent, with prices of spinach, lettuce, cabbage, and potatoes 4 to 9 percent lower. It is estimated that meat prices increased 1.2 per cent over the month. (See note, p. 999.) Food prices in midOctober were 29.2 percent higher than a year ago and 23.6 percent above mid-June. They were obtained in the period October 14—17, meat price controls were removed effective October 15. Average costs of clothing again advanced. The sharp increases in prices of raw cotton during the summer were reflected in October in the higher prices for many essential cotton garments. Prices for all types of leather footwear advanced as a result of higher ceiling prices granted to manufacturers in recent months to offset the rising cost of leather. Prices for sweaters were somewhat lower in many stores as supplies increased. Housefurnishings prices rose 1.2 percent during the month as higher price lines replaced those previously available and retailers adjusted their prices in accordance with price increases granted by OPA before all price controls were removed. Prices of sheets, mattresses, cook stoves, sewing machines, radios, electric refrigerators, vacuum cleaners, and washing machines advanced in many of the 21 cities surveyed. Average costs for bedroom furniture were also higher, although some what lower prices were reported in a few cities. Miscellaneous goods and services rose 0.7 percent because of higher prices for cigarettes, beauty-shop services, motion-picture admissions, and motor oil. Electricity costs declined 7 percent in New Orleans as lower rates became effective on October 1. T a b l e 1.— Index of Consumers’ Prices for Moderate-Income Families and Percent of ________ 7 TY/ ’ * L A /T September 1946 October 1945 August 1945 This month Last month Year ago VJ-day October 1946 Group o January 1941 August 1939 M onth be Wage base fore war in date Europe Indexes (1935-39=100) All item s______________ ____ F o o d ,---------- ---------------Clothing................ ......... R ent___________ ____ --Fuel, electricity, and ic e ... Gas and electricity— Other fuels and ice----Housefurnishings.............Miscellaneous---------------- 148.4 180.0 167.0 114.4 91.6 136.5 167.6 130.8 145.9 174.1 165.9 108.8 114.4 91.7 136.5 165.6 129.9 97.5 104.0 98. a 93.5 100.3 104.3 97.5 99.0 96.3 100.2 101.8 100.6 100.4 +47.2 +84.4 +65.0 + 3 .6 +13.5 - 6 .1 +31.2 +67.3 +28.5 +50.5 +92.5 +66.5 + 4 .3 +17.3 -7 .5 +41.7 128.9 139.3 148.5 129.3 140.9 146.4 100.8 110.5 94.8 125.7 146.9 124.7 111.4 95.2 127.2 146.0 124.5 100.8 97.6 101.2 105.0 Percent of change to October 1946 All items........................- ......... Food----- ------ ------------Clothing........................... R e n t1__________ ______ Fuel, electricity, and ice. Gas and electricity.. Other fuels and ice.. Housefurnishings......... Miscellaneous------------1 Percent of change to September 1946. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis + 1 .7 + 3 .4 + .7 +15.1 +29.2 +12.5 +14.8 +27.8 +14.1 Ö -.1 0 + 1 .2 + .7 + 3 .5 - 3 .4 + 8 .6 +14.1 + 4 .9 + 2 .7 - 3 .8 + 7 .3 +14.8 + 5 .1 + 66.6 +30.3 998 MONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 T a b l e 2.—Percent of Increase in Consumers' Price Index From Specific Dates to October 1946, by Cities September 1946 October 1945 August 1945 Last month Year ago VJ-day January 1941 August 1939 City Wage base Month be fore war in date Europe A verage..................... 1.7 15.1 14.8 47.2 50.5 Baltimore, M d _____ Birmingham, Ala___ Boston, M ass____ Buffalo, N . Y ______ Chicago, 111________ Cincinnati, Ohio___ Cleveland, Ohio____ Denver, Colo______ Detroit, M ich______ Houston, T ex______ Kansas City, M o__ Los Angeles, C alif... Minneapolis, M inn.. N ew York, N . Y ___ Philadelphia, P a___ Pittsburgh, P a........ . St. Louis, M o______ San Francisco, Calif. Savannah, Ga............ Seattle, W ash______ Washington, D . C ... 1.7 2.2 2.0 1.0 2.1 .6 1.1 .6 1.4 .8 .6 1.9 2.3 2.1 1.4 1.1 2.5 1.4 .8 2.6 1.6 14.0 12.9 16.1 13.8 16.9 13.1 13.3 13.0 13.8 13.1 11.8 12.0 16.4 17.9 15.9 14.6 15.4 15.0 12.8 15.1 14.2 13.6 12.2 15.0 13.1 16.7 13.1 12.9 12.2 13.3 13.0 11.3 13.1 16.7 17.4 15.3 14.4 14.9 15.5 12.1 14.2 14.3 49.6 47.9 45.8 43.6 47.4 46.9 46.3 43.3 47.2 41.1 44.3 44.6 43.1 51.1 49.3 47.2 45.0 50.3 53.0 48.7 47.4 52.6 52.6 48.8 48.5 51.2 50.4 49.2 45.3 51.0 42.9 44.0 47.5 46.1 54.1 51.4 51.4 49.3 54.1 56.2 51.3 49.4 T a b l e 3. Percent of Change in Consumers' Price Index, September to October 1946, by Cities and Groups of Items ’ J Fuel, electricity , and ice City A v e r a g e .. ...................... A t la n ta , G a . . . ........... B a ltim o r e , M d _____ B ir m in g h a m , A l a . —. B o s to n , M a s s _______ B u ffa lo , N . Y _______ C h ic a g o , 111_________ C in c in n a ti, O h io ____ C le v e la n d , O h io ____ D e n v e r , C o lo _______ D e tr o it, M ic h ______ H o u s to n , T e x _______ I n d ia n a p o lis , I n d ___ J a c k s o n v ille , F l a ____ K a n s a s C it y , M o ___ L o s A n g e le s , C a l i f .._ M a n c h e s te r , N . H___ M e m p h is , T e n n ____ M ilw a u k e e , W is ____ M in n e a p o lis , M i n n M o b ile , A l a _________ N e w O rleans, L a ____ N e w Y o r k , N . Y ____ N o r fo lk , V a . ............ P h ila d e lp h ia , P a ____ P itts b u r g h , P a ______ P o r tla n d , M a in e ____ P o r tla n d , O reg ______ R ic h m o n d , V a ______ S t. L o u is, M o _______ S a n F r a n c isc o , C a lif. S a v a n n a h , G a _______ S c r a n to n , P a ________ S e a ttle , W a s h _______ W a s h in g to n , D . C . . . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis All items Food + 1.0 + 2.1 + 3 .4 + 2 .4 + 3 .3 + 3 .6 + 3 .8 + 2.2 + 4 .1 + 1.1 + 1.2 + 2.1 + 1 .7 + 1 .7 + 2. 2 + 2.0 +.6 +.6 + 1 .4 +.8 +.6 + 1 .9 + 2 .3 + 2.1 + 1.4 + 1.1 + 2 .5 + 1 .4 +.8 + 2.6 + 1.6 +. 8 + 3 .3 +• 7 + 2.0 + Cloth ing + 0 .7 + .8 + .6 +1. 5 -h 5 + .3 +• 1 + 1 .6 + 1 .4 + .7 + .6 1.0 +■8 + 3 .6 + 4 .1 + 3 .1 + 2.6 + 5 .8 + 3 .6 + 2.8 + 4 .4 + 6 .7 + 2 .9 +1. 4 + 3 .9 -.4 + 5 .1 +5. 2 + 2.6 +. 9 + 4 .9 + 6.0 + 3 .4 + .4 + .9 + .5 + .1 +. 2 + 2 .8 + .6 + .4 + 1 .4 +. 1 + .7 Total Gas and elec tricity Other fuels and ice 0 + .2 + .3 + .2 -.2 -.3 + .2 0 0 + .1 0 0 0 0 0 0 +. 1 +. 1 + .1 0 + .1 -1 .3 -. 1 + .2 0 0 + .2 -.4 0 0 0 -.8 0 0 0 - 0 .1 0 0 0 - 1 .0 0 0 0 0 0 0 0 0 0 0 0 +. 2 0 + .1 0 0 -2 .6 0 0 0 0 + .6 + .1 0 0 0 0 0 0 0 0 +. 3 + .4 + .2 + .1 -.6 + .3 0 0 + •1 0 0 0 0 0 0 0 0 0 0 +• 2 b -.2 +. 3 + .1 0 0 —.6 +. 1 0 0 -1 .0 0 + .1 0 House- M iscel furnish lane ings ous + 1.2 — + 0 .7 + .3 + 3 .7 + 3 .8 + .4 + 1 .8 -. 1 + 1.0 + .5 + .2 + 1.7 + .6 + 1 .9 '+. 2 + .4 + .7 + .4 —. 2 +. 2 + .4 + 1 .0 + 1.1 + 2 .5 + .8 + .8 + .4 0 + .1 + 1 .0 + 1.7 + .8 + .4 + .8 + 2 .3 + .6 +■8 + 1 .0 + 3 .0 + .4 + .5 999 PRICES AND COST OP LIVING T able 4.— Indexes of Consumers’’ Prices for Moderate-Income Families in Large Cities, 1935 to October 1946 Indexes (1935-39=100) of cost of— Year and month All items 1935 _______________________ 1936 _______________________ 1937 ___________________ _____________________ 1938 ___________________ 1939 1940 -- __________________ 1941 _________________ 1942 . __________________ 1943 ________________ 1944 _____________________ 1945.. ___________________ 1945: J a n .15 . ___ _________ Feb. 15 ____________ Mar. 15 ____________ Apr. 15_________________ M ay 15 ________________ June 15 ____________ -July 15— ____________ Aug. 15 ________________ Sept. 15 ______________ Oct. 15 ______ _______ N ov. 15 _______________ Dec. 15 _ ______________ 1946: Jan. 15 ________________ Feb. 15 ______________ Mar. 15 ______________ ................. ........... Apr. 15 M ay 1 5 ______ ________ June 15___ ____________ July 15 ______ __ . . Aug. 15 __ ____________ Sept. 1 5 __ ___ _____ Oct. 1 5 _____________ -- Food Clothing Rent Fuel, elec Housefurnish tricity, ings and ice Miscel laneous 98.1 99.1 102.7 100.8 99.4 100.2 105.2 116.5 123.6 125.5 128.4 100.4 101.3 105.3 97.8 95.2 96.6 105.5 123.9 138.0 136.1 139.1 96.8 97.6 102.8 102.2 100.5 101.7 106.3 124.2 129.7 138.8 145.9 94.2 96.4 100.9 104.1 104.3 104.6 106.2 108.5 108.0 108.2 108.3 100.7 100.2 100.2 99.9 99.0 99.7 102.2 105.4 107.7 109.8 110.3 94.8 96.3 104.3 103.3 101.3 100.5 107.3 122.2 125.6 136.4 145.8 98.1 98.7 101.0 101.5 100.7 101.1 104.0 110.9 115.8 121.3 124.1 127.1 126.9 126.8 127.1 128.1 129.0 129.4 129.3 128.9 128.9 129.3 129.9 137.3 136.5 135.9 136.6 138.8 141.1 141.7 140.9 139.4 139.3 140.1 141.4 143.0 143.3 143.7 144.1 144.6 145.4 145.9 146.4 148.2 148.5 148.7 149.4 (>) 0) 108.3 0) (>) 108.3 0) (0 108.3 (>) 0) 108.3 109.7 110.0 110.0 109.8 110.0 110.0 111.2 111.4 110.7 110.5 110.1 110.3 143.6 144.0 144.5 144.9 145.4 145.8 145.6 146.0 146.8 146.9 147.6 148.3 123.3 123.4 123.6 123.8 123.9 124.0 124.3 124.5 124.6 124.7 124.6 124.8 129.9 129.6 130.2 131.1 131.7 133.3 141.2 144.1 145.9 148.4 141.0 139.6 140.1 141.7 142.6 145.6 165.7 171.2 174.1 180.0 149.7 150.5 153.1 154.5 155.7 157.2 158.7 161.2 165.9 167.0 (0 (0 108.4 0) 0) 108.5 0) 108.7 108.8 (0 111.0 110.8 148.8 149.7 150.2 152.0 153.7 156.1 157. 9 160.0 165.6 167.6 125.4 125.6 125.9 126.7 127.2 127.9 128.2 129.8 129.9 130. 8 110.5 110.4 110.3 110.5 113.3 113.7 114.4 114.4 i Rents not surveyed in this month. N ote .—Sufficient price quotations were obtained in mid-October to compute price indexes for beef and veal in many cities but the shortage of pork in all cities, and the scarcity of beef, veal, and lamb in a few cities continued to be so severe that a reliable sample of prices could not be obtained. For those meats in the cities where an adequate number of prices could be obtained, mid-October prices were compared directly w ith prices in August, the last month in which sufficient quotations were secured for most meats used in computing the index. For meats for which an adequate sample of prices was not obtained in midOctober, prices were again held unchanged at August levels in computing the index. An adequate number of quotations was reported in all cities for poultry and fish. On this basis the average increase in the cost of meat, fish, and poultry combined to consumers between September and October has been estimated at 1,2 percent. It is expected that the November meat index w ill be based on the usual number of price quotations and w ill describe in full the change that has occurred in the price of meat between mid-November and midAugust, the last date for which quotations could be obtained from nearly all stores. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1000 m onthly la bo r r e v ie w — De c e m b e r 1 9 4 6 Retail Prices of Food in October 1946 RETAIL prices of food in October 1946 in relation to those in selected preceding periods are shown in the accompanying tables. T able 1. Percent of Change in Retail Prices of Food in 56 Large Cities Combined, by Commodity Groups, in Specified Periods Commodity group All foods Cereals and bakery products M eats____________________ Beef and veal__________ Pork__________________ Lamb_________________ Chickens______________ Pish, fresh and canned-. Dairy products____________ E ggs--------------------------------Fruits and vegetables______ Fresh_________________ Canned_______________ Dried_________________ Beverages_________________ Fats and oils______________ Sugar and sw eets__________ Sept. 17, 1946,to Oct. 15, 1946 Oct. 16, 1945, to Oct. 15, 1946 M ay 18, 1943, to Oct. 15, 1946 Jan. 14, 1941, to Oct. 15, 1946 Aug. 15, 1939, to Oct. 15, 1946 + 3 .4 + 2 9.2 +25.9 +84.0 +92.5 +. 9 +26.9 +45.6 +47.7 +62.0 +37.8 +47.9 + 28.7 +37.9 +33.1 +45.3 +32.6 +52.6 +24. 5 +47.8 +51.0 - 7 .5 -1 3 .1 +17.9 +25.8 +33.7 +17.1 +31.3 +45.9 +48.3 +99.3 +75.3 +107.3 +90.0 +138. 2 +150. 7 +117.4 +136.6 +91.0 +92.7 + 68.8 i +1.2 i -3 .2 (9 1+• 1 + 16.9 + 5 .0 + 8 .5 + 11.0 + 1 2 .8 +51.8 +15.7 + 2 .3 -1 .9 +18.6 +17.6 +33.5 +19.3 +32.4 +.1 - 1 .3 + 4 .0 +7.1 + 2.8 - 2 .3 +18.4 + 88.6 +59.6 + 111.8 +90.2 +131.8 +110.4 +92.6 +120. 3 +89.2 +91.4 +69.1 +99.5 + 83.2 +84.2 +75.8 + 120. 0 +75.4 +75.0 +75.2 1 Prices were held at August levels as follows: Pork—all cities, round steak—28 cities, rib roast—33 cities chuck roast 32 cities, beef liver—38 cities, hamburger—30 cities, veal cutlets—41 cities, leg of lamb—35 cities, lamb chops—33 cities. It is expected that the November meat index w ill be based on the usual number of price quotations and will describe m full the change that has occurred in the price of meat between mid-November and mid-August, the last date for which quotations could be obtained from nearly all stores T able 2 — Indexes of Retail Prices of Food in 56 Large Cities Combined,1 by Commodity Groups, on Specified Dates [1935-39=100] 1946 1945 1943 1941 1939 Aug. 15 Commodity group All foods________ ____ _____ Cereals and bakery products. M eats...... .................. ............... Beef and veal_________ Pork__________________ L am b-..______________ Chickens______________ Fish, fresh and canned. Dairy products__________ Eggs____ _________________ Fruits and vegetables______ Fresh_________________ Canned................... ............. D ried........................ ........... Beverages_________________ Fats and oils.............................. Sugar and sw eets............. ....... Oct. 15 2 Sept. 17 Oct. 16 M ay 18 Jan. 14 180.0 138.5 3190.7 3 174. 6 3 182.4 3 187.7 225.3 249.7 202.4 214.6 176.5 178.8 154.6 198.7 166.5 147.9 167.5 174.1 137.3 188.5 180.3 182.4 < 187.6 192.8 237.8 186.6 193.3 176.4 181.1 148.7 185.6 162.0 151.4 141.5 139.3 109.1 131.0 118.2 112.6 136.2 152.3 221.3 133.3 185.5 172.5 182.3 130.4 168.9 124.7 124.0 126.5 143.0 107.6 138.3 131.2 125.5 141.6 147.6 200.5 136.9 142.1 190.8 205.8 131.1 158.0 124.5 126.3 127.6 97.8 94.9 101.1 109.4 86.1 98.7 97.2 118.7 105.1 97.4 93.3 93.4 91.4 99.6 90.9 80.3 95.3 93.5 93.4 95.7 99.6 88.0 98.8 94.6 99.6 93.1 90.7 92.4 92.8 91.6 90.3 94.9 84.5 95.6 c° s jS of food®in city, weighted to represent total purchases by families of wage earners a°' Prehmimir06 ^ wor^ers’ have been combined with the use of population weights. , 3,L rices Verc beM. at August levels as follows: pork—all cities, round steak—28 cities, rib roast—33 cities, Cltl®s» J??ei liver—38 cities, hamburger—30 cities, veal cutlets—41 cities, leg of lamb—35 cb°Ps 33 cities. It is expected that the November meat index will be based on the usual num;’ T ,°iTprice quotations and will describe in full the change that has occurred in the price of meat between mid-November and mid-August, the last date for which quotations could be obtained from nearly all stores https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis AVERAGE FOR LARGE CITIES 1935-39 = 100 PRICES AND COST OF LIVING 1001 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis RETAIL PRICES OF FOOD TO CITY WORKERS 1002 M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 RETAIL PRICES FOR GROUPS OF FOOD AVERAGE FOR LARGE CITIES index https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1935 ■ 39 = IOO 1003 PRICES AND COST OF LIVING T able 3.—Average Retail Prices of 78* Foods in 56 Large Cities Combined, October 1946, Compared with Earlier Months 1945 1941 1939 Sept. 17 Oct. 16 fan. 14 Aug. 15 Cents 38.6 18.0 11.6 8.4 14.1 10.6 Cents 32.1 15.7 9.2 6.5 12.7 10.4 Cents 20.7 13.8 9.8 4.2 7.9 7.1 Cents 17.9 14.0 9.7 4.0 7.5 7.1 11.6 12.6 13.2 34.0 21.6 8.8 9.6 9.9 29.1 18.9 7.8 8.7 9.0 25.1 15.0 7.8 8.8 9.2 « 14.8 (8) (8) (8) (0 (8) 40.9 33.1 28.4 37.2 27.3 38.6 31.5 25.2 (5) (0 36.4 28.9 22.5 (0 (0 00 (8) 44.5 35.1 45.2 (0 42.5 (0 (8) 00 (8) (8) 00 00 37.2 41.2 49.4 34.7 22.0 38.7 29.1 30.1 45.1 26.2 16.7 (0 30.9 30.4 46.4 27.4 15.4 (0 00 (8) 58.2 40.4 45.9 46.1 27.8 35.0 31.1 27.6 36.7 30.9 -00 24.0 41.7 00 23.0 40.2 00 15.7 26.4 (0 12.8 23.1 82.9 60.3 19.3 18.2 12.7 67.0 49.9 35.7 15.6 14.5 10.0 65.7 38.0 27.0 13.0 11.9 7.1 34.9 30.7 24.7 12.0 11.0 6.7 32.0 11.2 11.0 57.4 11.7 13.6 10.4 51.2 10.0 5.2 6.6 27.3 (0 4.4 6.1 31.5 (0 17.4 5.4 8.9 12.2 4.7 63.7 11.9 9.5 17.0 4.8 9.0 12.2 6.6 62.0 11.1 7.7 14.0 3.4 6.0 8.4 3.6 29.2 7.3 5.0 7.2 3.9 4.6 8.4 3.6 34.4 7.8 5.5 30.1 28.5 15.3 27.5 26.3 14.5 16.5 20.9 (0 17.1 21.0 (0 14.6 15.4 14.8 16.7 13.4 18.4 13.1 14.8 13.3 12.2 13.0 17.3 10.0 10.7 13.2 8.4 (0 9.6 10.0 10.4 13.6 8.6 (0 8.8 13.9 11.5 6.5 5.8 1946 Article Oct. 15i Cereals and bakery products: Cereals: Cents Flour, w h ea t3 ________________ _________ 5 pounds.. 40.3 Macaroni____________________ , ______ pound.. 18.6 11.7 Corn flakes1___________ _____ ________ 11 ounces.. _ _________ pound.. Corn meal_____ . _ ______ 8.6 R ic e 3, . , ______ ____ _ _ _____ ___________ do____ 14.8 Rolled oats_____________ _________ _ do___ 10.6 Bakery products: Bread, w hite_________ _ _____ ____________ do___ 11.6 12.5 Bread, whole wheat___________ ____________do__. 13.4 Bread, rye. _ . . . _____________ ___________ __do___ 33.7 Vanilla cookies,,,'_____________ ____________ _do_ __ 22.2 Soda crackers_________________ ___ _______ do._ _ Meats: Beef: Round steak_________________ ______________ do___ (*) Rib roast___ ____ ___ _______ _____________do____ 00 _________ do___ Chuck roast________ ______ 00 Liver____________________ - , , ______________do___ (0 Hamburger___________________ ______________do___ l8) Veal: Cutlets______________________ _____________do____ 00 Roast, boned and rolled3______ ______________do___ (8) Pork: Chops_______________________ ______ _______do__ _ (8) Bacon, sliced____ ______ ______ __ ______ _____ do 00 Ham, sliced_________ _______ _________ ____ do___ 00 ________ ___ do___ Ham, whole_________ 00 Salt p o r k ____________ _______ _ ___________ do___ (8) Sausage3________________ ____ _______ _____do ___ (8) Lamb: Leg--------------------------------------- ______ _____do___ (0 ______ do___ Rib chops______________ , ___ _ (0 68.0 Poultry: Roasting chickens__________ _ ____________do___ Fish: Fish (fresh, frozen)_____ ______ ______________do___ 00 24.1 Salmon, pink________________ _________ 16-ounce can.. 43.2 Salmon, red 3________ ___ ---------- ______________do___ Hairy products: 96.3 B u tt e r ------ -------------------- , , , , , ____________ pound,. 65.3 Cheese___________ , . -------------- __________ ___do___ 20.0 M ilk, fresh (delivered) , --------- _______ ____quart,. 19.0 M ilk, fresh (store)________________ _ ______ - . . _do___ 13.2 M ilk, evaporated________ . ------- . _._14J^-ounce can.. 74.4 Eggs: Eggs, fresh------------------------------ _____________dozen.. Fruits and vegetables: Fresh fruits: 11.4 Apples_______________ _____ , __________ pound _ 11.0 Bananas_____________________ _____________do___ 57.4 Oranges_____ 1___ ______ , , ___________ dozen.. 10.0 Grapefruit 3_, _______ , ------- ______________each.. Fresh vegetables: 18.1 . . . pound. Beans, green,, , ----------------- _____ 5.1 Cabbage___________ _____ ____ ______________do___ 9.5 Carrots---------------------------- ____ ______bunch.. 11.5 Lettuce-------- -------------------- , _____ . . . . . . head.. 4.7 Onions_______________________ . _____ ..p o u n d .. 61.0 P o ta to e s____________________ _________ 15 pounds, _ 10.8 Spinach_______________ . , , . ____________ pound.. 9.1 Sweetpotatoes________________ ______________do___ Canned fruits: 30.8 Peaches.................... . ........ , , _______ N o. 2Yi can.. 28.9 Pineapple, ---------------- ------ ______________do_ __ 15.2 Grapefruit juice_________ ' ------ _________ No. 2 can. Canned vegetables: 15.0 ______________do___ Beans, green_________________ 16.2 Corn_____________ ________ ______________do. _ 15.2 _ ___________ do___ P ea s.. ____________________ 17.6 ______________do___ Tomatoes ,_, , -------------- . 13.7 Soup, vegetable3 __________ _____ ,11-ounce can.. 20.0 Dried fruits: Prunes,------- ---------- ____________pound , Dried vegetables: Navy beans_________________ ...... ..................... do___ 14.6 See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1004 M ONTHLY LABOR REVIEW— DECEMBER 194 6 T able 3.—Average Retail Prices of 78 Foods in 56 Large Cities Combined, October 1946, Compared With Earlier Months— Continued 1946 1945 1941 1939 Article • Beverages: Coffee___________________________ . . . _______ pound. T ea. ____________________________ _____ . 54-pound.. Cocoa3_____ _______ _____________ -------------- 14-pound-, Fats and oils: Lard____________ ____ ___________ ........ .............p ou n d .. Shortening other than lard: In cartons__________ ____ . ___ --------------------do___ In other containers___________ _____________ do___ Salad dressing,.________________ _______________p in t.. Oleomargarine___________ . . . . . . __________ pound,. Peanut butter___ _____ ___________ _____________ do___ Oil,cooking or salad 3_______ ______ ______________p in t.. Sugar and sweets: Sugar__________ ________________ ___________ pound.. Corn sirup_________ . . . _ ______ _________ 24-ounce.. Molasses 37_______________________ _____16-fluid-ounce.. Oct. 15 Sept. 17 Oct. 16 Jan. 14 Aug. 15 Cents 41.6 24.3 10.9 Cents 40.4 24.3 10.5 Cents 30.6 24.3 10.4 Cents 20.7 17.6 9.1 Cents 22.3 17.2 8.6 25.8 28.2 18.8 9.3 9.9 22.3 27.0 30.2 27.2 34.9 32.1 22.9 26.3 29.7 26.5 34.6 32.1 20.0 24.5 24.5 24.3 28.6 30.0 11.3 18.3 20.1 15.6 17.9 6) 11.7 20. 2 (5) 16.5 17.9 (s) 9.0 19.2 20.8 7.5 18.6 20.6 6.6 15.8 20.4 5.1 13.6 17.3 5.2 13.7 17.6 *The collection of prices for the following eight foods not included in the index was discontinued as of October 1946: Wheat cereal, pancake flour, stew meat, liver, bologna, beets, dehydrated chicken noodle soup, and apple butter. 1 Preliminary. 2 Price formerly published for 10 pounds. 3 N ot included in index. 4 Price formerly published for 8 ounces. 5 N ot priced. 6 Composite price not computed. 7 Price formerly published for 18 ounces avoirdupois. 8 Average for 56 cities combined not computed because of high percentage of cities with prices held at August levels. T able 4. — Indexes of Average Retail Prices of A ll Foods, by Cities,1 on Specified Dates [1935-39 = 100] 1946 1945 1941 1939 Oct. 16 Jan. 14 Aug. 15 City Oct. 15 2 4 Sept. 17 United States______ _______ ____________ 180.0 174.1 139.3 97.8 93.5 Atlanta, Ga___________ ____________ Baltimore, M d ______ ____ _ Birmingham, Ala_________________ Boston, M ass_____________ _ . Bridgeport, C o n n ._____ ________________ 177.5 186.1 183.0 174.4 175.9 173.4 180.1 176.6 168.0 168.9 140.5 147.5 144.2 133.3 136.4 94.3 97.9 96.0 95.2 96.5 92 94 90 93 Buffalo, N . Y ..................... ................ Butte, Mont _____________ . . . Cedar Rapids, Io w a 3________ . Charleston, S. C ______ . . . . . Chicago, 111______ ________________ 168.4 175.6 184.8 173.0 183.4 164.7 170.0 180.0 170.4 176.2 135.6 136.7 142. 2 139.4 137.8 100. 2 98.7 95 9 95! 9 98.2 92.3 Cincinnati, Ohio____________ . Cleveland, Ohio____________ : . Columbus, O hio........................ Dallas, T ex____________ _ Denver, Colo____ ____________ 171.3 183.1 171.6 177.0 171.4 169.3 179.3 161.9 173.0 170.1 139.0 143.3 132.6 137.1 138.0 96. 5 99.2 93.4 92.6 94.8 90 4 93 6 88 1 91. 7 92.7 Detroit, M ic h ..................... Fall River, M ass_____ Houston, T ex. _ ________ Indianapolis, Ind ______ . . . Jackson, M iss.3____________ _ 173.9 175.6 174.7 175.9 195.8 168.4 168.4 173.5 172.4 189. 0 136.4 132.8 139. 7 136.0 150 0 97.0 97. 5 102. 6 98. 2 105 3 90. 6 95.4 97 8 90 7 Jacksonville, F la_________ Kansas City, M o____ _ Knoxville, Tenn.3. ________ Little Rock, Ark_____________ Los Angeles, Calif____ _____________ 180.7 166.6 201.5 172.3 182.8 180.7 165.3 197. 8 168.6 176.5 149.0 132.9 161.1 138.3 147.2 | 98.8 92.4 97 1 95 8 91 5 95.6 101.8 94. 0 94.6 See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5 7 7 5 93.2 94 5 94 1 951 1005 PRICES AND COST OP LIVING T able 4. — Indexes of Average Retail Prices of A ll Foods, by Cities,1 on Specified Dates— Continued [1935-39=100] 1946 1945 1941 1939 Oct. 16 J a n .14 Aug. 15 City Sept. 17 Oct. 15 Louisville, K y — -------------------------------Manchester, N . H ---- ----------- --Memphis, T enn---- ---------- - -----Milwaukee, W is— - ------- ---- ----Minneapolis, M inn-------- -----_ _ 167.4 176.9 191.0 174.8 177.6 163.7 170.0 4 185. 3 170.3 167.9 133.5 134.6 148.6 137.4 132.6 95.5 96.6 94. 2 95.9 99.0 92.1 94.9 89.7 91.1 95.0 Mobile, Ala__________ ___ _ --- Newark, N . J-- ---------- --- -- - N ew Haven, C o n n .-. . ---- -------- - - -N ew Orleans, La . -. - - -----N ew York, N . Y ................................ . 182.8 179.5 173.9 196.0 186.7 176.4 170.9 166.8 190.7 178.8 148.1 141.0 135.5 154.4 139.5 97.9 98.8 95.7 101.9 99. 5 95.5 95. 6 93.7 97.6 95.8 Norfolk, V a_______________ _ — - - -Omaha, N ebr___ ___ — -- - - - - - Peoria, 111 ______ ____ . . - ------- Philadelphia, P a -._ ---------------------------Pittsburgh, P a_________________________ 189.3 178.2 188.9 177.6 179.3 177.4 171.0 183.8 172.6 176.9 144.3 131.1 145.5 137. 2 140.0 95.8 97.9 99.0 95.0 98.0 93.6 92.3 93.4 93.0 92, 5 Portland, Maine - . - -- Portland, Oreg - ---- ----------Providence, R. I- _ Richmond, V a --- ------- - ----------Rochester, N . Y . — --------- ------ -- 173.5 183.7 184.1 175.9 172.5 167.0 184.5 175.9 167.4 165.7 133.0 149.7 139.1 137.7 134.7 95.3 101.7 96.3 93.7 99.9 95.9 96.1 93. 7 92. 2 92.3 St. Louis, M o ______ ____ -----St. Paul, M inn-------------------Salt Lake City, U tah__ . . - --- - -------- - ----San Francisco, Calif . - .Savannah, G a_------------------------------------- 183.6 176.2 180.6 191.4 192.6 174.5 164.6 175.4 186.5 190.9 141.4 131.4 144.5 147.9 155.4 99. 2 98.6 £7. 5 99. 6 100. 5 93.8 94.3 94.6 93. 8 96.7 Scranton, Pa - ____ -— ----Seattle, W ash__ ____ .. ----Springfield, 111— ---- - -------------------Washington, D . C --------------------------------- 182.5 186.1 181.7 180.6 189.2 184.3 174.0 175.6 179.8 174.7 186. 6 179. 2 138.7 142.7 145.0 140. 2 148.3 142.6 97.5 101.0 96. 2 97.7 97. 2 93.7 92.1 94. 5 94.1 94.1 1 Aggregate costs of 61 foods in each city (54 foods prior to March 1943), weighted to represent total pur chases by wage earners and low-salaried workers, have been combined for the United States with the use of population weights. Primary use is for time-to-time comparisons rather than place-to-place comparisons. 2 Preliminary. 4 Prices were held at August levels as follows: Pork—all cities, round steak—28 cities, rib roast—33 cities, chuck roast—32 cities, beef liver—38 cities, hamburger—30 cities, veal cutlets—41 cities, leg of lamb—35 cities, lamb chops—33 cities. T able 5. — Indexes of Retail Food Prices in 56 Large Cities Combined, 1913 to October 1946 [1935-39=100] Year All foods index Year All foods index All foods index Year and month 138.0 136.1 139.1 1946—Con. November____ December-........ 140.1 141.4 137.3 136.5 135.9 136.6 138.8 141.1 141.7 140.9 139.4 139.3 1946 January______ February ______ March _________ April__________ M a y ....... .........June ---- -----------July---------------August . -_- -September— _ October --------- 141. 0 139.6 140.1 141.7 142.6 145.6 165.7 171.2 174.1 180.0 1Q13 1Q14 -j q-j p; 1916 1917 1Q1R 1Ql Q 79.9 fll 8 80 9 90.8 116.9 184.4 149.8 1928......... ........... 1929 1930 1931___________ 1932___________ 1933 ___ 1934 130.8 132.5 126.0 103.9 86.5 84.1 93.7 1943........... ........... 1944 __________ 1945 __________ 1Q20 1Q?1 1Q99 19?** 1924 1Q9.^ 1Q?6 1927___________ 168 8 198 8 110 0 1935 1936 1937 1938 1939 . 1940. ______ 1941 1942___________ 100.4 101.3 105.3 97.8 95.2 96.6 105.5 123.9 A pril.. . - . M a y . ___- _ June......... ........... July__________ A ugust-, .September------October _____ 194 0 122 8 132 9 137 4 132.3 7 2 2 2 5 0 — dO- ll https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis All foods index Year and month 1946 January _______ February _____ 1006 M O N T H L Y LABOR RE V IE W — D ECEM BER 1 9 4 6 W holesale Prices in October 1946 AVERAGE primary market prices 1 advanced 6.9 percent between September and October largely because of higher agricultural prices, but there were small increases in most other commodity groups. In addition, current prices of motor vehicles were introduced into October calculations,2 so that the October index of commodity prices was increased to 134.1 percent of the 1926 average—26.6 percent above October 1945 and 78.8 percent above August 1939. Prices of farm products and foods rose 7.1 percent and 19.7 percent respectively during the month, led by increases for meats. Prices of all commodities other than farm products and foods (not including current motor vehicle prices) averaged 0.9 percent higher. Textile products, chemicals and allied products, housefurnishings goods, and miscellaneous commodities increased about 2 percent; building materials and hides and leather products less than 1 percent. There was a slight decline in the group index for fuel and lighting materials. Prices of raw materials were 5.2 percent higher, semimanufactured articles 2.8 percent, and manufactured products 10.6 percent (excluding motor vehicles, 8.4 percent). The advance of 7.1 percent for farm products was due mainly to higher prices for livestock, which increased sharply immediately after their removal from control in mid-October; substantially higher prices prevailed throughout the remainder of the month, despite record ship ments to market. Quotations for hogs and steers in October averaged more than 22 percent above September and prices advanced sub stantially for calves, cows, and lambs. Increased supplies of livestock led to reduced demand and lower prices for live poultry. Grain quota tions rose over 2 percent, largely reflecting short supplies because of a boxcar shortage and a tendency to withhold shipments pending decision on ceiling increases or decontrol of flour. Corn, however, declined in price with larger shipments of the new crop and decreased demand for livestock feed. Egg quotations advanced steadily to mid-October, reflecting heavy demand as a meat substitute, but de clined in late October; average prices for the month were higher. Except for potatoes and onions, both in liberal supply, prices of fresh fruits and vegetables were generally higher. Higher prices were al lowed for fluid milk under Federal milk marketing agreements. Flaxseed and tobacco, exempt from OPA control, advanced. There were increases in Commodity Credit Corporation selling prices of 1 The Bureau of Labor Statistics wholesale price data, for the most part, represent prices in primary markets. In general, the prices are those charged by manufacturers or producers or are those prevailing on commodity exchanges. The monthly index is calculated from a monthly average of one-day-a-week prices. It should not be compared directly with the weekly wholesale prices index, which is designed as an indicator of week to week changes. Indexes for the last 2 months are preliminary. 5 See footnote 1 to table 1. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis P R IC E S AND COST OF L IV IN G 1007 domestic wools to cover parity. Quotations for foreign wools also advanced to meet higher prices in Australian and South American markets. Cotton quotations reached 20-year highs during the month, but broke sharply late in the month with spot prices falling 5 cents a pound in 10 days. Meat prices, largely responsible for the 19.7-percent rise in food prices, nearly doubled in mid-October immediately upon decontrol and averaged 45.8 percent higher for the month. Beef, pork, and veal were up more than 50 percent and lamb and mutton about 40 percent. There were small increases for dressed poultry. Prices of most dairy products advanced—by amounts ranging from 4 to 20 percent. Dried fruits of the new pack, exempt from OPA control, were priced well above old-pack ceiling levels. Increases from about 10 percent to as high as 85 percent occurred for a number of other foods removed from OPA control, including lard, tallow, edible oils, cocoa, coffee, and black pepper. Higher prices for most textile groups contributed to the average price rise of 2.3 percent in textile products for the month. Further upward adjustments of OPA ceilings to cover higher costs of raw cotton, as required by the Price Control Extension Act of 1946, led to higher prices of many cotton fabrics, artificial leather, and some cotton clothing. There also were advances for some woolen fabrics reflecting higher costs. Prices of raw silk declined because of lack of demand at current high prices for manufactured silk products. Kaw jute quotations increased. Prices of most metals and metal products were unchanged during the month. The introduction of current prices of motor vehicles, however, raised the October index for the group 10 percent. Motor vehicles, unavailable to civilians during the war, had been carried at April 1942 prices in the index. Average prices in October 1946 were 27.0 percent above these levels. During the month there were small increases for some nonferrous metals, gray iron castings, and farm machinery, reflecting ceiling adjustments. Higher prices of prepared paint because of increased costs of linseed oil and also of paint materials largely accounted for the 0.7 percent increase in building material prices. Linseed oil, naval stores, and several colors, exempt from OPA control, advanced in price, and ethyl acetate prices were up sharply following ceiling adjustments. Prices for shellac and zinc oxide declined. Incentive ceiling adjust ments for shop lumber sold directly to millwork manufacturers resulted in substantial increases for some lumber, and ceiling increases were allowed also for millwork and window glass. Prices of Douglas fir lath declined with partial cancellation of an earlier ceiling increase. Chemicals and allied products advanced 1.5 percent as a group because of sharp increases for a number of decontrolled commodities in https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1008 M O N T H L Y LABOR RE V IE W — D ECEM BER 1 9 4 6 short supply, including fats and oils, inedible tallow, opium, and cottonseed meal. Prices of acetone, dynamite, and castor oil advanced following upward ceiling adjustments. Lower raw-materials costs made possible substantial lowering of prices of cream of tartar and tartaric acid. Ergot prices dropped with larger supplies from Portugal. Price increases for housefurnishings, which rose 1.5 percent as a group, generally followed upward ceiling adjustments. Advances for cotton blankets, sheets and pillowcases, tablecloths, and oilcloth reflected higher costs of raw cotton. Linoleum prices rose because of higher costs of linseed oil. Other articles which advanced in price included sewing machines, furniture, mattresses and bedsprings, floor coverings, dinnerware, and window shades. Miscellaneous commodities rose 1.9 percent during the month. Sharp price advances for cattle feed occurred late in the month after removal from price control. Lubricating oils and tobacco products, also exempt from price control, rose in price. Higher ceilings were followed by price rises for newsprint, tissue paper, and woodpulp. T able 1 . — Indexes of Wholesale Prices by Groups and Subgroups of Commodities October 1946, Compared with Previous Months Percentage changes to October 1946 from— Indexes (1926=100) Groups and subgroups Oct. 1946 Sept. 1946 Oct. 1945 Aug. 1939 Sept. 1946 Oct. 1945 Aug. 1939 All commodities____ ________ i 134.1 124.0 105.9 75.0 + 8.1 +26.6 +78.8 Farm products______________ Grains__________________ Livestock and poultry___ Other farm products_____ 165.3 174.2 174.6 156.1 154.3 170.6 150.4 151. Î 127.3 130.2 130.5 123.6 61.0 51.5 66.0 60.1 +7.1 +2.1 +16.1 + 3.3 +29.9 +33.8 +33.8 +26.3 +171.0 +238.3 +164. 5 +159.7 Foods______________________ Dairy products__________ Cereal products_________ Fruits and vegetables____ M eats__________________ Other foods_____________ 157.9 185.5 128. 5 122. 5 191.4 136.2 131.9 169.1 127.4 115.5 131.3 115.5 105.7 110.4 95.3 116.3 107.9 98.5 67.2 67.9 71.9 58.5 73.7 60.3 +19.7 + 9 .7 + .9 +6.1 +45.8 +17.9 +49.4 +68.0 +34.8 +5.3 +77.4 +38.3 +135.0 +173.2 +78.7 +109.4 +159. 7 +125.9 Hides and leather products___ Shoes__________________ Hides and skins_________ Leather_________________ Other leather products___ 142.4 145.2 153.0 138.5 118.6 141.6 144.8 151.5 138.5 115.8 118.6 126.3 117.6 103.8 115.2 92.7 100.8 77.2 84.0 97.1 + .6 + .3 + 1 .0 0 + 2.4 +20.1 +15.0 +30.1 +33.4 + 3.0 +53.6 +44.0 +98.2 +64.9 +22.1 Textile products....... .................. Clothing_________ _____ _ Cotton goods____________ Hosiery and underwear___ R ayon.............................. Silk_____________________ Woolen and worsted goods. Other textile products____ 128.6 125.5 172.9 88.8 30.2 125.7 116.6 130.6 125.7 122.9 166.6 88.7 30.2 126.5 113.9 126.7 101.0 107.4 125.0 71.5 30.2 (2) 112.7 101.4 67.8 81.5 65.5 61.5 28.5 44.3 75.5 63.7 + 2.3 + 2.1 + 3.8 + .1 0 - .6 + 2.4 +3.1 +27.3 +16.9 +38.3 +24.2 0 + 3 .5 +28.8 +89.7 +54.0 +164.0 +44.4 + 6 .0 +183. 7 +54.4 +105.0 Fuel and lighting materials___ Anthracite______________ Bituminous coal_________ Coke____________________ Electricity_______________ Gas_____________________ Petroleum and products__ 94.2 113.5 137.2 147.5 (2) (2) 73.1 94.3 113.5 137.0 147.5 (2) 80.6 73.0 84.2 102.2 124.8 134.9 66.7 79.8 62.1 72.6 72.1 96.0 104.2 75.8 86.7 51.7 -.1 0 +■1 0 + 11.9 +11.1 + 9.9 + 9.3 +29.8 +57.4 +42.9 +41.6 + .Ï +17.7 +41.4 See footnotes a t end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1009 PRICES AND COST OF LIVING T able 1.—Indexes of Wholesale Prices by Groups and Subgroups of Commodities October 1946, Compared with Previous Months— Continued Percentage changes to October 1946 from— Indexes (1926=100) Groups and subgroups Sept. 1946 Oct. 1945 Aug. 1939 Sept. 1946 Oct. 1945 i 125.7 Metals and metal products----------- --------— Agricultural im plem ents_______________ 108.7 109.9 Farm machinery--------------------------------Iron and ste e l,. ______ _ ----------------- 113.7 .... .................................. i 143.3 Motor vehicles 101.8 Nonferrous metals____________ ______ 107.2 Plumbing and heating------------- -- ------- 114.2 108.6 109.8 113.5 (2) 101.4 107.2 105.0 97.9 98.9 99.8 112.8 85.7 95.0 93.2 93.5 94.7 95.1 92.5 74.6 79.3 +10.1 + .1 + ,1 + .2 + .4 0 +19.7 +11.0 +11, 1 +13.9 +27.0 +18.8 +12.8 +34.9 +16.3 +16.1 +19.6 +54.9 +36.5 +35.2 Building materials-----------------------------------Brick and t i l e . ---- ---------------- -Cement ______________________ ___ Lumber.- . . . ------- -- ------ ---------------Paint and paint materials. ----------------Plumbing and h e a tin g ________________ Structural steel___ ____________________ Other building materials---------------------- 134.8 127.8 106.5 178.9 119.2 107.2 120.1 122.5 133.8 127.7 106.5 178.2 116.7 107.2 120.1 121.4 118.3 115.2 99.9 155.2 107.6 95.0 107.3 104. 6 89.6 90.5 91.3 90.1 82.1 79.3 107.3 89.5 + .7 + .1 0 +• 4 + 2.1 0 0 + .9 +13.9 +10.9 + 6 .6 +15.3 +10.8 +12.8 +11.9 +17.1 +50.4 +41.2 +16.6 +98.6 +45.2 +35.2 +11.9 +36.9 Chemicals and allied products-------------------Chemicals________________ ____ ____ Drugs and pharmaceuticals. --------------Fertilizer materials-----------------------------Mixed fertilizers------. . -------------- — Oils and fats____ _____________________ 99.9 98.8 111.5 91.9 90.5 111.1 98.4 98.6 110.3 90.2 90.0 103.3 95.5 96.4 110.3 81.9 86.6 102.0 74.2 83.8 77.1 65.5 73.1 40.6 + 1 .5 + .2 + 1.1 + 1 .9 + .6 + 7 .6 + 4 .6 + 2 .5 + 1.1 +12.2 + 4 .5 + 8 .9 +34.6 +17.9 +44.6 +40.3 +23.8 +173.6 Housefurnishing goods____________________ Furnishings---------------------- ----------------Furniture____________________________ 115.3 121.3 109.2 113.6 119.4 107.5 104.7 107.9 101.6 85.6 90.0 81.1 + 1 .5 + 1 .6 + 1 .6 +10.1 +12.4 + 7 .5 +34.7 +34.8 -¡-34. 6 Miscellaneous. . . . ---------- ----------- ----------Automobile tires and tubes------------------Cattle feed. ------ ------- -- ---------------Paper and pulp___ ... - ---------Rubber, crude - . -------------- ---------Other miscellaneous-------- - - . ------------- 104.0 73.0 217.2 124.6 46.2 108.2 102.1 73.0 201.8 121.9 46.2 106.5 94.8 73.0 159.6 109.3 46.2 98.9 73.3 60.5 68.4 80.0 34.9 81.3 + 1 .9 0 + 7 .6 + 2 .2 0 + 1 .6 + 9 .7 0 +36.1 +14.0 0 + 9 .4 +41.9 +20.7 +217. 5 +55.8 +32.4 +33.1 Raw m aterials..- _ . . . ----------- ------------ 148.7 118.2 Semimanufactured articles------------------------Manufactured products___________________ 1 129.6 i 127.1 All commodities other than farm products— All commodities other than farm products and foods--------- ------------------------------------- i 115.7 141.4 115.0 117.2 117.2 116.6 96.8 101.9 101.0 66.5 74.5 79.1 77.9 + 5 .2 + 2 .8 +10.6 + 8 .4 +27.5 +22.1 +27.2 -J-25.8 +123. 6 +58.7 +63.8 +63.2 112.2 100.1 80.1 + 3.1 +15.6 +44. 4 Oct. 1946 Aug. 1939 i Index including motor vehicles at current prices. Motor vehicles—The rate of production of motor vehicles in October 1946 exceeded the monthly average rate of civilian production in 1941, and in accordance with the announcement made last month the Bureau introduced current prices for motor vehicles in the October calculations. During the war, motor vehicles, were not produced for general civilian sale and the Bureau carried April 1942 prices forward in each com putation through September 1946. . ^ If April 1942 prices of motor vehicles had been used in computing the October 1946 indexes, the October indexes for the groups of which motor vehicles is a component would have been: Indexes 1926=100 Indexes 1926=100 All commodities - ____________ _____ _____ 132.5 All commodities other than farm products------ 125.1 Metals and metal products________ ________ 114.3 All commodities other than farm products Manufactured products--........ - ................ .........127.0 and foods------------------------------------------------- 113.2 These special indexes will be published as long as the need for them continues 2 N ot available. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1010 M O N T H L Y LABOR R E V IE W — D ECEM BER 1 9 4 6 , Index Numbers by Commodity Groups 1926 to October 1946 Index numbers of wholesale prices by commodity groups for selected years from 1926 to 1945, and by months from October 1945 to Octo ber 1946, are shown in table 2. T able 2. — Index Numbers of Wholesale Prices by Groups of Commodities [1926=100] Hides and Farm prod Foods leath er ucts prod ucts Fuel Chem Tex and Metals icals HouseMisand Build furtile light metal ing and celnish- laneprod ing mate allied prod ing ucts mate rials prod ous ucts rials ucts goods 1926________________ 1929................................ 1932__________ ____ 1933______________ 1936___________ 1937____________ 1938______________ 100.0 104.9 48.2 51.4 80.9 86.4 68.5 100.0 99.9 61.0 60.5 82.1 85.5 73.6 100.0 109.1 72.9 80.9 95.4 104.6 92.8 100.0 90.4 54.9 64.8 71.5 76.3 66.7 100.0 83.0 70.3 66.3 76.2 77.6 76.5 100.0 100.5 80.2 79.8 87.0 95.7 95.7 100.0 95.4 71.4 77.0 86.7 95.2 90.3 100.0 94.0 73.9 72.1 78.7 82.6 77.0 100.0 94.3 75.1 75.8 81.7 89.7 86.8 100.0 82.6 64.4 62.5 70.5 77.8 73.3 100.0 95.3 64.8 65.9 80.8 86.3 78.6 1939_______________ 1940_____________ 1941_______________ 1942.............. ............ 1943____________ 1944__________ 1945_______________ 65.3 67.7 82.4 105.9 122.6 123.3 128.2 70.4 71.3 82.7 99.6 106.6 104.9 106.2 95.6 100.8 108.3 117.7 117.5 116.7 118.1 69.7 73.8 84.8 96.9 97.4 98.4 100.1 73.1 71.7 76.2 78.5 80.8 83.0 84.0 94.4 95.8 99.4 103.8 103.8 103.8 104.7 90.5 94.8 103.2 110.2 111.4 115.5 117.8 76.0 77.0 84.4 95.5 94.9 95.2 95.2 86.3 88.5 94.3 102.4 102.7 104.3 104.5 74.8 77.3 82.0 89.7 92.2 93.6 94.7 77.1 78.6 87.3 98.8 103.1 104.0 105.8 1946 October____________ N ovem b er______ December__________ 127.3 131.1 131.5 105.7 107.9 108.6 118.6 118.8 118.9 101.0 101.1 101.4 84.2 84.6 84.8 105.0 105.2 105.6 118.3 118.7 119.5 95.5 95.7 96.1 104.7 104.7 104.7 94.8 94.8 94.8 105.9 106.8 107.1 1946 January___________ February___________ March____________ April_______________ M ay____________ June_____ . July-----------------------August.......................... September__________ October_____ _______ 129.9 130.8 133.4 135.4 137.5 140.1 157.0 161.0 154.3 165.3 107.3 107.8 109.4 110.8 111.5 112.9 140.2 149.0 131.9 157.9 119.4 119.6 119.8 119.8 120.4 122.4 141.2 138.9 141.6 142.4 101.6 102.2 104.7 107.9 108.8 109.2 118.1 124.0 125.7 128.6 84.9 85.1 85.0 86.1 86.1 87.8 90.3 94.4 94.3 94.2 105.7 106.6 108.4 108.8 109.4 112.2 113.3 114.0 114.2 125.7 120.0 120.9 124.9 126.5 127.8 129.9 132.1 132.7 133.8 134.8 96.0 95.9 96.0 96.1 96.5 96.4 99.3 98.4 98.4 99.9 106. 2 106.5 106.9 107.5 108.3 110.4 111. 9 112.6 113.6 115.3 95.3 95.6 95.6 95.7 97.0 98.5 101.3 102.0 102.1 104.0 107.1 107.7 108. 9 110.2 111.0 112.9 124.7 129.1 124. 0 134.1 Year and month All com modi ties The price trend for specified years and months since 1926 is shown in table 3 for the following groups of commodities: Raw materials, semimanufactured articles, manufactured products, commodities other than farm products and commodities other than farm products and foods. The list of commodities included under the classifications “Raw materials,” “Semimanufactured articles,” and “Manufactured products” was shown on pages 10 and 11 of Wholesale Prices, JulyDecember and year 1943 (Bulletin No. 785). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1011 PR IC E S AND COST OF L IV IN G T able 3.— Index Numbers of Wholesale Prices by Special Groups of Commodities [1926=100] Year All com All modi com Semi- M an modi ties other ties ufac Raw manufacthan mate tured tured other farm than rials arti prod farm prod ucts cles prod ucts and ucts foods 100.0 1926............ 1929 ............. 97.5 55.1 1932 ........ . 1933________ 56.5 1936________ 79.9 100.0 93.9 59.3 65.4 75.9 100.0 94.5 70.3 70.5 82.0 100.0 93.3 68.3 69.0 80.7 100.0 91.6 70.2 71.2 79.6 1937________ 1938________ 1939 _____ 1940 1941 84.8 72.0 70.2 71.9 83.5 85.3 75.4 77.0 79.1 86. 9 87.2 82. 2 80.4 81.6 89.1 86.2 80.6 79.5 80.8 88.3 85.3 81.7 81.3 83.0 89.0 1942 1943 1944________ 1945________ 100. 6 112.1 113.2 116.8 92.6 92.9 94.1 95.9 98.6 100.1 100.8 101.8 97.0 98.7 99.6 100.8 95.5 96.9 98.5 99.7 Year and month All com Semi- M an modi ties Raw manufac- ufac mate tured tured other than prod rials arti farm ucts cles prod ucts 1945 October____ 116.6 November. __ 118.9 D ecem ber... 119.2 1946 January____ February___ March_____ April______ M ay ______ June.............. July_______ August_____ September __ October____ 118.3 118.9 120.5 122.2 123.6 126.3 141.7 145.7 141.4 148.7 All com modi ties other than farm prod ucts and foods 96.8 96.9 97.6 101.9 102.2 102.5 101.0 101.3 101.6 100.1 100.2 100.5 97.6 98.8 100.4 101.1 101.9 105.7 110.2 111.9 115.0 118.2 102.9 103.4 104.5 105.5 106.1 107.3 118.9 123.9 117.2 129.6 101.9 102.5 103.4 104.5 105.1 106.7 117.5 121.9 117.2 127.1 100.8 101.3 102.2 103.3 103.9 105.6 109. 5 111.6 112.2 115.7 Weekly Fluctuations Weekly changes in wholesale prices by groups of commodities during September and October 1946 are shown by the index numbers in table 4. These indexes are not averaged to obtain an index for the month but are computed only to indicate the fluctuations from week to week. T able 4. — Weekly Index Numbers of Wholesale Prices by Commodity Groups, September and October 1946 [1926=100] Commodity group Oct. 26 Oct. 19 Oct. 12 Oct. 5 Sept. 28 Sept. 21 Sept. 14 Sept. 7 ---------------------------------- 135.9 135.1 126.0 125.1 124.4 123.8 121.7 122.0 Farm products---------------- ---------------------F o o d s... . . _ _____ . . . ____ ______ Hides and leather products________________ Textile products___ . --------------- --------Fuel and lighting materials. ---------- --------- 170.1 169.9 143.3 126.5 95.0 160.1 175.6 141.5 126.3 95.0 160.2 137.7 141.3 126.1 95.0 158.0 135.5 141.1 125.9 95.0 156.6 133.0 140.9 125.4 95.1 155.1 131.9 139.4 123.7 95.3 151.8 128.1 139.7 117.5 95.2 150.4 130.7 139.6 117.3 95.1 M etals and metal products________________ Building materials------------ -------------------Chemicals and allied products-------------------Housefurnishing goods---- ----------------------Miscellaneous________ . ----------------------- 114.4 134.2 99.5 115.9 103.7 114.4 134.2 98.8 115.7 102.5 114.2 134.1 98.8 115.3 102.2 114.2 134.1 98.6 115.1 102.2 114.2 134.0 98.2 115.0 101.8 114.2 133.9 98.4 114.7 101.8 113.6 133.3 97.9 114.3 101.9 113.6 133.1 97.9 114.1 101.3 Raw materials . . . . ----------------------------Semimanufactured articles ______________ Manufactured products. . . ------- --------All commodities other than farm products... All commodities other than farm products and foods---------------------------------------------- 153.0 117.7 131.7 128.5 146.3 117.5 133.7 129.7 146.3 117.1 118.6 118. 4 144.5 116.9 118.1 117.8 143.6 116.7 117.5 117.4 142.5 116.2 117.1 116.9 138.4 111.9 115.9 115.1 137.5 111.5 116.9 115.8 113.1 112.8 112.6 112.6 112.4 112.1 111.0 110.8 All com m odities., https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Construction Construction Activity, September-November 1946 Progress on the Housing Program WELL over a third of a million (366,400) new permanent dwellings were under construction and almost the same number (340,700) had been completed by the end of October 1946. It is estimated that practically all of the dwellings under construction in October had been started this year. While about a third of all the completed units were begun in 1945, the remaining two-thirds accounted for a sub stantial proportion (37 percent) of the 580,600 new permanent dwellings started thus far in 1946. The new permanent dwellings discussed here account for about 2 in every 3 of all the units begun and completed during the Veterans’ Emergency Housing Program. The VEHP includes, in addition to the new permanent units, conversion, trailer, and temporary re-use accomodations. All but a very small proportion (1.4 percent) of the new permanent units begun in October were privately financed. Average construc tion cost of 1-family privately financed homes (as distinguished from selling price) increased only about 6 percent between January and October of this year in spite of the fact that materials and labor costs in general advanced more. Average construction cost for private 1-family houses started this October was only about 1 percent higher than last December when all controls on selling price had been lifted. The relative staoilization in average construction cost of private single-family homes this year can be attributed directly to regulations governing the selling price and rentals of units for which authoriza tion was given under Priorities Regulation 33, initiated in January of this year. It was possible in this way to bring about construction of a much greater proportion of smaller and cheaper houses than might otherwise have been built, placing the new units within the range of more of the veterans wanting to buy homes. A total of 616,000 workers were employed at the site of new resi dential construction in October, and 380 million dollars were spent for this work. 1012 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1013 CONSTRUCTION T able 1.—Number oj Family Dwelling Units or Equivalent Living Accommodations Started and Completed in Nonfarm Areas, January-0ctober, 1946 1 Number of units Completed Started Month First 10 months of 1946-_ -- ----- January ________________ - - _____ February __ _ - - - ____ ______ Mar eh _ _____ _______ April _______ ______ ------M ay ________________ __________ June ____________ __- - - - -------July __________ - ___ __________ August - _____ ___ ___ ________ Sp.ptember _____ _____ ___ October ______________________ — ___ Total N ew per manent family dwell ings 2 Other 3 Total N ew per manent family dwell ings 4 882,900 580,600 302,300 499,900 340, 700 159,200 49,300 56,600 86, 500 96, 800 105, 500 95,700 106,000 104,200 104,300 78,000 36,100 43,100 60,400 66,100 67, 500 63,600 64,300 64,400 57,100 58,000 13,200 13, 500 26,100 30,700 38,000 32,100 41, 700 39,800 47,200 20,000 25,900 29, 200 32,200 37,200 41,900 48, 700 57, 700 62,000 81,300 83, 800 18, 700 20,300 22,600 26,400 30,300 34,900 41,000 42,200 49,800 54,500 7,200 8, 900 9,600 10,800 11, 600 13,800 16, 700 19,800 31,500 29,300 Other 5 1 Excludes military barracks. . , , , . . 2 Includes 8,027 permanent units started by New York City Housing Authority, and 30,800 prefabricated units (National Housing Agency estimate). . , _ ■, . , 3 Covers 51,100 privately financed converted units; 191,600 Federal (Mead-Lanham temporary housing program) units (150,900 family dwellings and 40,700 dormitory equivalents—Federal Public Housing Author ity estimates); 36,200 trailers (Bureau of the Census); and 23,400 family and dormitory equivalent units financed by various State and local public bodies and educational institutions. These units are not in cluded under the Federal Mead-Lanham temporary housing program. A small proportion of new per manent units provided in the local emergency program, now included under “ Other w ill be shown for all months in the column for new permanent housing in future publications of this table. i Break-down not available for conventional and prefabricated units. 3 Covers 50,400 conversion units, 69,100 re-use units, 36,200 trailers, and 3,500 local emergency units. Total Construction Activity Construction employment and expenditures in November, according to preliminary estimates, continued the downward trend which started in October. In spite of these declines, the level of activity was twice that of a year ago. There were 109,000 fewer workers employed on construction this November than in the preceding month, and the dollar volume of work put in place was 67 million dollars below the October total. In November 1946, total construction employment amounted to 2,184,000, compared with 1,183,000 last November; corresponding expenditures figures are 1,162 million dollars and 555 million dollars. Privately financed industrial building and National Housing Agency’s re-use homebuilding projects are the only two major construc tion categories which did not undergo a decline in expenditures during November. Industrial building, at 230 million dollars, was slightly higher than in October, and re-use housing rose from 5 million to 55 million dollars. Seasonal drops of 22 million dollars in farm construc tion and 15 million in highway construction accounted for the greatest portion of the over-all decline in expenditures during November. Private builders spent 10 million dollars less for new residential con struction and 6 million less for commercial building. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1014 M O N T H L Y LABOR R E V IE W — D ECEM BER 1 9 4 6 Employment, too, was down in practically all classes of construction. The 783,000 persons working on construction and repair of nonfarm homes were 17,000 below October; nonresidential building and repair engaged 807,000 in November, or 13,000 fewer than in the preceding month. Despite continuing seasonal declines, construction employ ment in November topped the 2-million mark for the sixth successive month in 1946. T able 2. —Estimated Construction Employment1 in the United States, Selected Months of 1945 and 1946 Estimated employment (in thousands) Type of project 1946 November » October * Septem ber5 November 1945» All types........................................................ . 2,184 2,293 2,313 1,183 New construction............................................. Private construction......... ....................__ Residential (nonfarm) building........ Nonresidential building..................... Parm construction............... ............ Public utilities.................................... Public construction......... ....................... Federal *_....... ........... ......................... Residential building_____ ____ Nonresidential building............. Reclamation_______ _______ _ River, harbor, and flood control. Streets and highways........... ...... All other »___ ______ ________ Non-Federal_____ _____ ________ Streets and highways........... ...... A llother«.................................. Minor building repairs__________________ Residential (nonfarm)..................... N onresidential.......................................... Farm construction................ ............. 1,885 1,423 578 641 42 162 462 279 126 35 9 34 55 20 183 88 95 299 79 131 89 1,986 1,505 603 655 85 162 481 272 115 31 10 33 63 20 209 102 107 307 82 134 91 2,014 1,544 621 653 106 164 470 247 100 27 11 29 64 16 223 105 118 299 86 133 80 941 711 239 313 24 135 230 132 6 70 7 20 11 18 98 38 60 242 69 116 57 i Estimates include wage earners, salaried employees, and special trades contractors aetivively engaged ^ additions and alterations, and on repair work of the type usually covered by building permits, whether performed under contract or by force-account. (Force-account employees are workers hired directly by the owner and utilized as a separate work force to perform construction work of the type usually chargeable to capital account.) These figures should not be confused with those included in the Bureau’s nonagncultural employment series, which covers only employees of constructton contractors " » b i t e i a S . ' T f S K S 3’ ,nd e“ ludes f~ » “ ‘ « state * Preliminary. * Revised. *cI neludes the following force-account employees hired directly by the Federal Government- November 1945, 16,800; September 1946, 21,700; October 1946, 20,900; November 1946, 20 000 C' ^ emDer « M ainly airports, water and sewer systems, and electrification projects. ’ s e r v i c e t ^ c°mm unity buildings, water supply and sewage disposal projects, and miscellaneous public- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1015 CONSTRUCTION T able 3. —Estimated Construction Expenditures1 in Continental United States, Selected Months in 1945-1946 Estimated expenditures (in millions) 1946 Type of construction NoNovem Octo Septem ber 2 ber 3 ber 3 First 11 moi^th of— 1945 1946 1945 Total construction....................................- .............. ............ $1,162 $1,229 $1, 250 N ew construction * -------------- ------------- ----------------Private construction__________________________ Residential (nonfarm) building________ ____ Nonresidential building......... .............................. Industrial................ - ............ ............. ............ Commercial______ _____ ___ ____ _______ All other................................... ...................... . Farm construction................... - ............................. Public utilities.—---------- ---------------------------Public construction_________________ _____ ____ Residential building__________ ____ ________ Nonresidential (except military and naval facilities). _________ _______ ______ ________ Industrial facilities________________ ____ All other____ _______________ ____ _____ Military and naval facilities 5_______________ Highway_________________________________ Other public______________________________ Federal6___ _________________________ State and lo ca l7_____________ __________ Minor building repairs 8 _________________________ Residential (nonfarm)_____________ ___________ Nonresidential______ ________________ _______ Farm construction. __________________________ 988 750 320 332 192 87 53 20 78 238 55 1,050 784 330 337 191 93 53 40 77 266 50 1,075 804 340 335 186 96 53 50 79 271 45 437 309 98 138 80 34 24 10 63 128 2 9,224 7,271 3,003 3,162 1,628 1,039 495 340 766 1,953 256 4,113 2,199 554 852 221 153 478 186 607 1,914 69 27 7 20 15 90 51 24 27 174 45 71 58 32 9 23 19 105 60 27 33 179 47 72 60 35 9 26 16 108 67 31 36 175 47 73 55 30 11 19 34 31 31 15 16 118 34 52 32 296 79 217 169 739 493 236 257 1,680 488 716 476 755 589 166 544 281 265 127 138 978 277 409 292 $555 $10,904 $5,091 1 Estimated construction expenditures represent the monetary value of the volume of work put in place in continental United States during a given period of time. These figures should not be confused with the data on value of construction reported in the table on urban building construction (table 4). 2 Preliminary. 2 Revised. * Estimates of new construction are prepared jointly by the Bureau of Labor Statistics and the Office of Domestic Commerce (a successor to the Bureau of Foreign and Domestic Commerce) and include expen ditures for new construction, major additions, and alterations. * Expenditures for floating dry docks and facilities for the production of atomic bombs are excluded. « Mainly river, harbor, flood control, reclamation, and power projects. 7 Includes water supply, sewage disposal, and miscellaneous public-service enterprises. * Covers privately financed structural repairs of the type for which building permits are generally required. Urban Building Permit valuations of building construction in urban areas (includ ing the value of Federal construction contracts awarded) amounted to 332 million dollars for October—a decrease since September of 9 million dollars. Less employment and lower expenditures in this field of construction may be expected in the next month or two, since decreases in building permits indicate a decline in the volume of con struction to be started. Valuations of both new residential and new nonresidential con struction in urban areas decreased somewhat during the month, to 190 million and 84 million dollars, respectively. Additions, altera tions, and repairs, on the other hand, rose slightly to reach an October https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1016 MONTHLY LABOR REVIEW— DECEMBER 194 6 total of 58 million dollars—continuing the steady increase that has been evidenced since June. Restrictions on new construction are, apparently, causing owners to repair and to improve available struc tures in an effort to meet part way the current demand. T able 4. —Permit Valuation 1 of Urban Building Construction,2 by Class of Construc tion and by Source of Funds, Selected Months of 1945 and 1946 Valuation (in millions) 1946 Class of construction Octo ber 3 First 10 months of— Septem ber 4 October 1945 1946 3 1945 Total All building construction________ $332 $341 $267 $4,071 $1,466 N ew residential5______ _________ New nonresidential____ _____ ___ Additions, alterations, and repairs. 190 84 58 194 90 57 93 110 64 2,108 1,293 670 474 586 406 Non-Federal All building construction________ 321 317 260 3, 790 1,224 N ew residential *__________ _____ N ew nonresidential_______ ______ Additions, alterations, and repairs. 181 84 56 174 90 53 93 106 61 1,874 1,271 645 444 402 378 7 7 281 242 4 3 7 234 22 25 30 184 28 Federal All building construction......... ....... 9 11 24 New residential *_______________ N ew nonresidential_____________ Additions, alterations, and repairs. «9 20 (8) 2 (8) 4 (8) 1 Includes value of Federal construction contracts awarded. 2 Estimates of non-Federal (private, and State and local government) urban building construction are based upon building permit reports received from places containing about 85 percent of the urban popula tion of the country; estimates of federally financed projects are compiled from notifications of construction contracts awarded, which are obtained from other Federal agencies. 3 Preliminary. 4 Revised. 3 Includes value of dormitories and other nonhousekeeping residential buildings in addition to house keeping units shown in table 5. 6 Includes $8,440,000, the estimated cost of 1,286 dwelling units in N ew York City Housing Authority projects. These projects, although financed solely with city funds, are included with Federal projects in order to segregate public from private housing. All other types of building construction financed with State or local government funds are included under “non-Federal.” 7 Includes $45,188,850, the estimated cost of 8,027 dwelling units contained in N ew York City Housing Authority projects. » 9 Value less than $500,000. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1017 CONSTRUCTION T able 5. —Estimated Number and Permit Valuation 1 of New Dwelling Units Scheduled To Be Started in A ll Urban Areas,2 Selected Months of 1945 and 1946 First 10 months of— 1946 October 1945 Source of funds and type of dwelling October 3 September4 19463 1945 Number o indwelling units 43,087 19,830 450, 584 121,497 35,044 35, 799 Privately financed....... .................................. 29, -335 29, 491 1fam ily......... ...................... ...................... - .................... 2,050 1,839 2-family 5__________________________ 3, 659 4,469 M ultifamily 6----------------- --------8,043 1,314 Federally financed 7. __ ------------------------ 19,496 16, 582 857 2,057 334 376,059 316, 657 21,500 37,902 74, 525 111,039 92, 580 6,938 11, 521 10,458 All dwellings_________ ________ _________ 37,113 Valuation (in thousands) All dwellings___________________________ $189,284 $191,826 $91,484 $2,060,921 $465, 956 Privately financed--------------------------------1family 5___ ________ ____ 2family 6__ ____ _______ Multifamily . . . ------- -- ---------------Federally financed 7------------------------------- 180,784 155,839 7,923 17,022 8,500 172,678 150,795 8, 960 12,923 19,148 91,114 79,194 3, 551 8, 369 370 1,841,386 1,609, 314 89,896 142,176 219, 535 438,236 377,033 23,319 37,884 27,720 1 Includes value of Federal construction contracts awarded. 2 See footnote 2, table 4, for source of urban estimates, a Preliminary. 4 Revised. « Includes 1- and 2-family dwellings with stores. e Includes multifamily dwellings with stores. „ , ., ^ For number of, and estimated cost of, dwelling units contained m New York City Housing Authority projects but included here with federally financed housing, see footnotes 6 and 7, table 4. Average Hours and Earnings Both general building and special trades contractors reported additional contracts, some overtime work, and upward wage adjust ments, all of which are reflected in September average weekly earnings of $58.49 for private building construction. This was the highest average weekly earnings figure recorded since January 1940—the beginning of the period for which monthly data are available. General building contractors reported average hourly earnings for their employees of $1.45 in September—10 percent higher than a year ago. This 10-percent increase, coupled with a lengthened aver age workweek, resulted in a $7 rise ovei the year in average weekly earnings. Increases during the month, both in the hourly rate (3 cents) and in the hours worked per week (% hour), caused weekly earnings for general building to increase almost $2 from August to a new high of $55.64 for September. The earnings of skilled, as well as semiskilled and unskilled, employees of general building contractors are included in the averages. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1018 M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 Average weekly earnings increased both over the year and during the month for all groups in the special building trades, but principally for persons employed in plumbing and heating, painting and decorat ing, and electrical work. Wage increases during the year caused weekly earnings to rise $8 from the level of a year ago to $69.66 for electrical work, $6.25 to $63.70 for plumbing and heating, and $4.53 to $62.06 for painting and decorating. The increases in weekly earn ings from August to September for the three trades were $2.08, $2.27, and $2.31, respectively. A successively longer average workweek for these trades, as well as for carpenters, during July, August, and Sep tember reflects a better flow of materials to the job site. For nonbuilding construction, a longer workweek and generally increased hourly earnings resulted in higher average weekly earnings tor the month—$57.90 in September compared with $56.24 in August. T able 6.—Average Hours and Earnings on Private Construction Projects for Selected Types of Work, September 1946 1 [Subject to revision] Average hours per week Average weekly earnings Average hourly earnings Type of work Septem August Septem Septem August Septem Septem Septem ber 1946 1946» ber 1945 ber 1946 1946 3 ber 1945 ber 1946 August 1946» ber 1945 All types of work Building construction General contractors____ Special building trades »_ Plumbing and heat ing_____________ Painting and dec orating___ . . Electrical work Masonry______ Plastering and lath ing— C arpentry.. _____ Roofing and sheet metal______ Excavation and foundation___ 38.3 38.4 Nonbuilding construction... Streets and highway___ H eavy construction . Other___________ 42.2 42.0 42.6 41.3 41.6 40.9 42.1 40.9 39.3 38.7 38.4 39.2 38.7 38.2 37.8 38.7 M 38.1 36.9 39.0 40.2 39.5 38.6 41.1 38.1 37.8 40.3 38.6 38.3 39.8 37.7 39.4 $58.39 58.49 55.64 61.87 $56. 61 56.67 53. 66 60. 34 40.8 63.70 61.43 39.3 40.1 37.6 62.06 69. 66 58.53 59.75 67.58 58.36 34.4 40.2 65. 21 58.68 64.60 56.82 53. 73 54.39 37.7 37.2 54.06 53.30 51.90 1.412 1.414 1.395 38.3 38.4 54.88 54. 21 51. 51 1.431 1.416 1.341 (4) (4) (4) (4) 57.90 55. 71 59.86 54.46 56.24 54.39 58.21 53.40 (4) « (4) (4) 1. 372 1. 327 1.407 1.317 1.353 1.331 1.382 1.305 (4) (4) (4) (4) $1.485 1. 510 1.450 1.580 $1.462 1.482 1.419 1.558 57.45 1.584 1. 555 1.410 57.53 61.66 58.11 1.609 1.696 1.537 1.581 1.678 1. 510 1.464 1.539 1.545 1.703 1.473 1. 716 1.442 1.560 1.353 (4) $53.11 48. 56 56.42 (4) $1. 392 1.317 1.445 lishments.eS &U flrmS reporting during the months shown (about 9,000) but not necessarily identical estabbecause ofrom dm g. Wh<m multiplied by weekly hours of work m ay not exactly equal weekly earnings 3 Revised. 4 N ot available prior to February 1946. »Includes types not shown separately. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Trends o f Employment and Labor Turn-Over Labor Force, October 1946 WHO IS COUNTED IN THE LABOR FORCE L a b o r F o r c e .—Persons 14 years of age and over who are employed or unemployed during the census week (the week containing the eighth day of the month). E m p l o y e d .—Those who, during the census week, (1) work full or part time for pay or profit; (2) work without pay in k family enterprise (farm or business) at least 15 hours; or (3) have a job but do not work because of illness, vacation, labormanagement dispute, bad weather, or lay-off with definite instructions to return to work within 30 days. U n e m p l o y e d .—Those not working, but seeking a job. Declines of 120,000 in unemployment and 10,000 in employment combined to reduce the civilian labor force by 130,000 between September and October, according to the Bureau of the Census sample Monthly Report on the Labor Force. The civilian labor force in October numbered 59,310,000, including 57,360,000 employed and 1,950,000 unemployed. The decline in unemployment brought the number of job seekers below the 2 million mark for the first time in 1946. Unemployment in October was 760,000 below the postwar peak of 2,710,000 reached in March 1946. The number of unemployed men in October (1,540,000) was more than a million above the VJ-day level. One out of every two unem ployed men was a veteran. Unemployed women (410,000) numbered about the same as just before the war’s end. The small decline in employment during the month represented the net effect of divergent movements in agricultural and nonagricultural employment. A seasonal decline of 220,000 in farm employment was largely offset by a gain of 210,000 in nonfarm employment. The increase in nonagricultural employment between September and October of this year maintained an unbroken record of monthly https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1019 1020 M ONTHLY LABOR REVIEW----DECEMBER 194 6 increases since September 1945. Veterans and women accounted for the greater part of the gain during the month. The September to October increase among ex-servicemen, however, was the smallest monthly gain since the war’s end, as demobilization tapered off and some veterans left the labor market to go to school. A gain of 90,000 among women continued the series of moderate advances recorded since June of 1946. Entries of women in response to pressures of rising living costs and high labor demand have been more than offsetting withdrawals accompanying high marriage and birth rates. Total Labor Force in the United States, Classified by Employment Status, Hours Worked, and Sex, September and October 1946 and October 1945 [Source: U. S. Department of Commerce, Bureau of the Census] Estimated number (in thousands) of persons 14 years of age and over 1 Item Total, both sexes Sept. 1946 Oct. 1946 Oct. Sept. 1945 1946 Male Oct. 1946 Female Oct. Sept. 1945 1946 Oct. 1946 Oct. 1945 Total labor force 2___________________ 61, 660 61,480 63, 750 44, 360 44, 290 44,990 17, 300 17,190 18, 760 Civilian labor force__________ Unemployment_____ _______ Employm ent________ ______ Nonagricultural- ______ Worked 35 hours or m ore.._ Worked 15-34 hours______ Worked 1-14 hours 3 . . . W ith a job but not at work 4__ Agricultural_______. Worked 35 hours or more____ Worked 15-34 hours... Worked 1-14 hours 3____ W ith a job but not at work 4 . 59,440 59, 310 53,110 42,170 42,140 34,590 2,070 1,950 1, 550 1,580 1, 540 930 57, 370 57, 360 51, 560 40, 590 40, 600 33, 660 48,630 48, 840 42, 770 33, 810 33, 930 27, 060 41,960 41,870 35,180 30, 290 30, 220 23, 320 3, 640 4,320 4,740 1,760 2,180 2,140 1,130 1,240 1,130 440 540 440 1,900 1,410 1,720 1,320 990 1,160 8,740 8, 520 8,790 6,780 6, 670 6,600 7,120 6,740 6, 820 6,030 5, 730 5, 610 1, 330 1,490 1, 660 540 750 770 170 180 190 100 100 110 120 110 120 110 (*) 110 17, 270 17,170 18, 520 490 410 620 16, 780 16, 760 17,900 14,820 14,910 15, 710 11, 670 11, 650 11, 860 1,880 2,140 2, 600 690 700 690 580 420 560 1,960 1, 850 2,190 1, 090 1,010 1,210 790 740 890 (*) (*) (*) (*) (*) (*) Estimates are subject to sampling variation, which may be large in cases where the quantities shown are relatively small. Therefore, the smaller estimates should be used with caution; those under 100,000 are not presented m the table but are replaced with an asterisk (*). All data exclude persons in institutions. 2 l otal labor force consists of the civilian labor force and the armed forces. Estimates of the armed forces during the census week are projected from data on net strength as of the first of the month. 2 Excludes persons engaged only in incidental unpaid family work (less than 15 hours); these persons are classified as not m the labor force. 4 Includes persons who had a job or business, but who did not work during the census week because of illness, bad weather, vacation, labor dispute, or because of temporary lay-off with definite instructions to return to work within 30 days of lay-off. Does not include unpaid family workers. Summary of Employment Reports for October 1946 DURING October 1946 employment in trade rose seasonally by 116,000 and in government declined by almost 100,000, while nonfarm employment increased by 121,000. The drop of about 19,000 in contract construction was offset by a rise of more than that number in manufacturing. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TRENDS OF EMPLOYMENT AND LABOR TURN-OVER 1021 The number of employees in nonagricultural establishments showed an increase of 121,000 between September and October 1946. Unem ployment, according to the Bureau of the Census, remained at the 2 million level. The current seasonal gain in trade raised the number of workers in this industry division to more than 8 million, the highest since Decem ber 1941. After VJ-day, there was a net rise of more than a million in trade employment. Of the increase of about 30,000 workers in manufacturing between September and October, only 5000 were production workers. The heavy goods industries showed a gain in production-worker employ ment of 29,000, while employment in the light industries dropped by 24,000. Industrial and Business Employment The most sizable manufacturing employment change between Sep tember and October was the seasonal decline of 83,000 production workers in the food group. Almost all of this drop was in the canning industry. Significant gains were reported by the electrical machinery and other machinery groups among the heavy industries and by textiles and apparel in the light industry group. In the year ending October 1946, more than 1% million production workers were added to manufacturing industries. Of the 20 major groups, only transportation equipment and food failed to show an increase. The largest single increase was in the automobile industry, where employment rose by 309,000. T able 1.— Estimated Number of Employees in Nonagricultural Establishments, by Industry Division Estimated number of employees, (in thousands) Industry division Septem ber 1946 Total estimated employment L ------ --------------------------- ------ 40, 250 40,129 Contract construction and Federal force-account construction, _ Transportation and public utilities---------------------- ---------------- 14, 761 825 2,084 3, 988 8, 034 5,208 24, 731 827 2,103 3, 948 7,918 5,155 14, 583 828 2,091 4,001 7, 814 5,160 13, 048 718 1, 006 3, 825 7, 331 4,698 5, 350 5, 447 5, 394 5,701 Finance, service, and miscellaneous-------------------------------------Federal, State, and local government, excluding Federal forceaccount construction__________________ _______ __________ August 1946 October 1945 October 1946 39, 371 36, 327 1 Estimates include all full- and part-time wage and salary workers in nonagricultural establishments who worked or received pay during the pay period ending nearest the 15th of the month. Proprietors, selfemployed persons, domestic servants, and personnel of the armed forces are excluded. 2 Estimates for manufacturing have been adjusted to levels indicated by final 1944 data made available b y the Bureau of Employment Security of the Federal Security Agency and are comparable with the pro duction-worker estimates shown in table 2. 7 2 2 2 5 0 -4 6 - 12 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1022 M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 T able 2. — Estimated Number of Production Workers and Indexes of Production-Worker Employment in Manufacturing Industries, by M ajor Industry Group 1 Estimated number of Production-worker production workers indexes (1939=100) (in thousands) Group October 1946 October 1945 October 1946 All manufacturing................................................ ............................ . Durable goods _______________________________ ___ ____ Nondurable g oods....................................... ................................. 12, 021 6,118 5,903 10,450 5,151 5, 299 146.7 169.4 128.9 127.6 142.6 115.7 Iron and steel and their products........... ............................... ............ Electrical machinery_______ ____ __________________________ Machinery, except electrical__________ ____ _____ ______ ____ Transportation equipment, except automobiles______________ Automobiles_________ _______ _____ ________ _____________ Nonferrous metals and their products_______________ _____ _ Lumber and timber basic products__________ _______________ Furniture and finished lumber products____ ____ ___________ Stone, clay, and glass products._________ __________________ 1,442 559 1, 091 442 745 402 633 393 411 1,241 467 909 667 460 305 476 307 319 145.5 215.9 206.5 278.7 185.1 175.4 150.7 119.8 139.9 125.2 180.1 172.1 « 420.4 114.4 133.0 113.3 93.7 108.8 Textile-mill products and other fiber manufactures...... .............. . Apparel and other finished textile products.................................... Leather and leather products______________________ _______ Food_____________ _______________ ___________ ____________ Tobacco manufactures._______ ____________________ _____ _ Paper and allied products_______________________ _________ Printing, publishing, and allied industries....................................... Chemicals and allied products..... ....................................................... Products of petroleum and coal____________ ________________ Rubber products. ........................................................ ....................... Miscellaneous industries____________ _____ ___________ ____ _ 1,224 1,085 352 1, 074 89 372 394 491 151 235 436 1,057 928 313 1,116 86 321 336 486 131 187 338 107.0 137.4 101.5 125. 7 95.8 140.2 120.1 170.5 142.8 194.0 178.2 92.4 117.5 90.3 130. 6 92.2 120.9 102.5 168.5 123.6 154.4 138.3 October 1945 1 T he estimates and indexes presented in this table have been adjusted to levels indicated by the final 1944 data made available by the Bureau of Employment Security of the Federal Security Agency. Public Employment C iv ilia n .—Employment in the executive branch of the Federal Government within continental United States on October 1 was 78,000 lower than the previous month. War agencies as a whole dropped 81,000 persons, but the War and Navy Departments alone dropped 86,000. The difference was made up by a gain in War Assets Administration personnel, which was the only war agency showing an uptrend, except the Maritime Commission which ab sorbed the personnel of the abolished War Shipping Administration. Although the Agriculture Department showed a seasonal employ ment drop of 6,000 and several other agencies whittled down their staffs, an increase of 11,000 in the Veterans’ Administration pushed the peacetime agencies total up by 3,000. In the Washington, D. C., area, however, war and peacetime agencies alike were affected by cut-backs, amounting to an over-all figure of 7,000, though the war agencies were affected to a greater extent than the peacetime agencies. Within continental United States, employment in the executive branch totaled 2,100,000, of which 1,000,000 or 47 percent was in war agencies. Employment in the Washington area amounted to 226,000, with 81,000 or a little over a third in war agencies. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TRENDS OF EMPLOYMENT AND LABOR TURN-OVER 1023 T able 3. —Employment and P ay Rolls of Regular Federal Services and of Government Corporations in Selected Months Executive 1 Year and month Continental United States Total All areas Legislative Judicial Govern ment cor porations 2 Washing ton, D . C., area Total E m ploym ent2 992,324 1,127,921 1,588,997 2,671,692 3,223,035 3,369,288 3,495,546 958,920 1,093,078 1,549, 670 2,629,189 3,178,075 3,324,693 3,451,871 916,805 1,025,945 1,433,694 2, 406,497 2,823, 745 2,881,171 2,581,276 126,355 146,059 192, 742 282,629 267,545 259,060 239,992 5,551 5,938 6,279 6,314 6,135 6,240 6,388 2,282 2,518 2,571 2,664 2,651 2,633 2,878 25,571 26,387 30,477 33,525 36,174 35,722 34,409 2, 725,779 July 1946____________ August 1946 4____ ___ 2,661,749 2,554,824 September 1946 *___ . . . October 1946______ ____ 2,471,435 2,682,586 2,618, 630 2,511,979 2,428,901 2,266,850 2,250,166 2,200,271 2,121,526 235,112 234,758 232,602 225,862 6,697 6, 736 6,825 6,902 3,063 3,036 3,075 3,058 33,433 33,347 32,945 32,574 October October October October October October October 1939__________ 1940 . . ---1941. _______ 1942__________ 1943________ . 1944__________ 1945__________ Pay rolls (in thousands) 8 October 1943................... October 1944__________ October 1945 8. . . . . . . $672,738 684, 763 587,175 $664,958 677,023 579,053 $607,968 626,305 519,594 $54,883 54,628 52,033 $1,495 1,529 1,749 $768 789 940 $5, 517 5,422 5,433 July 1946 8______ _ . August 1946 6_____ _ __ September 1946 8_______ October 1946 8 ________ 534,406 547,947 537,114 529,328 525,674 539,142 528,256 520,297 486,965 503,903 492,955 481,498 57, 280 56,090 54,594 54, 220 2,093 2,106 2,112 2,112 945 1,009 1,136 1,104 5,694 5,690 5,610 5,815 1 Includes employees on force-account construction who are also included under construction projects (p. 1014). Beginning July 1945, data include clerks at third-class post offices who were previously working on a contract basis. Data exclude substitute rural mail carriers. 2 Data are for employees of the Panama Railroad Company, the Federal Reserve banks, and banks of the Farm Credit Administration. Data for other Government corporations are included under the executive service. 2 Employment is as of the first of the calendar month. * Revised. • Data are for all pay periods ending within the calendar month. Beginning July 1945, this represents pay for 4 weeks for most employees. 8 Subject to revision. Military.—With enlisted personnel entitled for the first time to retention on the pay roll after separation from active duty until the expiration of all accrued and unused leave, total military strength showed only a slight decline, 7,000, during the month of September 1946. This contrasts with a decline of 300,000 in the preceding month and of 400,000 to 2,000,000 a month in the 11 months of heavi est demobilization immediately following the close of the war. In accordance with the same law as that providing the above leave arrangements for enlisted men (Public, No. 704, 79th Cong.), enlisted personnel who were separated from military duty prior to September received payment for similar accrued and unused leave amounting to $120,000,000 in October—$112,000,000 in the form of bonds and $8,000,000 in cash. In addition, officers and enlisted personnel who were still on active duty received $9,000,000 in October for leave https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1024 M ONTHLY LABOR REVIEW----DECEMBER 1 9 4 6 accrued in excess of 60 days ($7,000,000 in bonds and $2,000,000 in cash), also authorized by Public Law No. 704. In September, when procedures for making payments were still in the process of being evolved, both types of leave payments amounted to only $2,000,000; three-fourths of this was for leave of present personnel accrued in excess of 60 days and almost all of it was in cash. The cost of the leave-payment program is not entirely reflected in these figures, however, as the pay of present enlisted personnel while on terminal leave is included in the regular pay roll. The part of the program for which figures are separable may be expected to be of short duration as the claims of former enlisted men dwindle in volume with the lapse of time after passage of the act and with the gradual payment of excess leave. T able 4. —Employment and P ay Rolls of the Executive Branch of the Federal Govern ment in Selected Months 1 War agencies 2 Year and month All agencies Total Other agencies3 Outside conti nental United S tates4 Conti nental United States Total Conti nental United States Outside conti nental United States 4 Em ploym ent5 October October October October October October October 1939___ 1940___ 1941___ 1942___ 1943___ 1944___ 1945___ July 1946______ August 1946 6___ September 1946 •. October 1946___ 958,920 1, 093, 078 1,549, 670 2, 629,189 3,178, 075 3, 324, 693 3, 451,871 229,917 328,860 725,413 1, 774,994 2, 360, 974 2, 480, 712 2,494, 739 197, 955 273, 835 622, 988 1, 566,801 2, 024, 409 2, 053, 014 1,648, 236 31,962 55, 025 102, 425 208,193 336,565 427, 698 846, 503 729,003 764, 218 824, 257 854,195 817,101 843,981 957,132 718, 850 752,110 810, 706 839,696 799, 336 828,157 933,040 10,153 12,108 13, 551 14,499 17', 765 15', 824 2A 092 2,682, 586 2,618, 630 2, 511,979 2, 428, 901 1,547,893 1, 470, 579 1, 358, 426 1, 271, 976 1,159, 084 1,129, 390 1, 074, 344 992,574 388,809 341,189 284, 082 279, 402 1,134, 693 1,148, 051 1,153, 553 1,156,925 1,107,766 1,120,776 1,125,927 1,128,952 26,927 27,275 27; 626 27,973 Pay rolls (in thousands) 7 October 1943___ October 1944___ October 1945 >... $664, 958 677, 023 579, 053 $501, 927 506, 923 . 385,094 $448, 562 459,628 330,442 $53, 365 47, 295 54, 652 $163,031 170,100 193, 959 $159, 406 166,677 189,152 $3, 625 3,423 4,807 July 1946 *_____ August 1946 8__ September 1946 8. October 1946 8__ 525,674 539,142 528, 256 520, 297 277, 907 286, 911 275,147 261, 999 245, 220 257, 355 245,604 229, 013 32,687 29,556 29, 543 32,986 247,767 252, 231 253, 109 258, 298 241,745 246,548 247, 351 252, 485 6, 022 5,683 5,758 5,813 (p I1014)deS employees on force-account construction who are also included under construction projects 2 ?-0Vemi.W 3F and N avy Departments, Maritime Commission, National Advisory Committee for Aero nautics, th e Panama Canal, and the emergency war agencies. 3 Beginning July 1945, data include clerks at third-class post offices who previously were working on a contract basis. Data exclude substitute rural mail carriers. 4 Includes Alaska and the Panama Canal Zone. * Employment is as of the first of the calendar month. 6 Revised. 7 Data are for all pay periods ending within the calendar month. Beginning July 1945, this represents pay for 4 weeks for most employees. 8 Subject to revision. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TRENDS OF EMPLOYMENT AND LABOR TURN-OVER 1025 Sources oj data.—Data for the Federal executive service are reported through the Civil Service Commission, whereas data for the legisla tive and judicial services and Government corporations are reported to the Bureau of Labor Statistics. Employment on Federal forceaccount construction is included in both the executive branch (tables 3 and 4) and in construction employment (table 2, p. 1014). Military personnel and pay figures are reported mpnthly to the Bureau of Labor Statistics but are published here only quarterly. Mimeographed tables giving civilian employment and military personnel and pay monthly, 1939 to date, and civilian pay rolls monthly, 1943 to date, are available upon request. T able 5. —Personnel and P ay of the M ilitary Branch of the Federal Government in Selected Months [In thousands] Branch, sex, or type of pay October 1946 i August 1946 1 September 19461 October 1945 October 1941 2,744 1,816 928 11,519 7, 564 3,955 2,006 1,601 405 2,696 48 11, 261 258 1,998 8 $475,227 304,352 170, 875 $541,049 311, 584 229,465 $1,859,636 1,179, 249 680,387 $138,029 99,805 38,224 384,052 51,139 38,029 2,007 1,984 23 413,956 86, 111 40, 964 18 18 1,323,369 284,476 251, 791 138,029 Personnel, to ta l2--------------------A rm y________ -- ----------N a v y 3- - . ---------------------- - 2,468 1,737 731 2,476 1,731 745 M en___ . -- ---------- - -Women____ - ------------------- 2,435 33 2,440 36 Pay, total____________________ A rm y_______ ----N a v y 3-- ------------------------- $609, 669 371,766 237,903 Pay rolls 4________ ______ 388,255 56 665 35 653 129* 096 10j 086 119,010 , 1 Preliminary. . , . ,, 2 Personnel is as of the first of the calendar month and mcludes those on terminal leave. s Data for the N avy cover the N avy, Marine Corps, and Coast Guard. The missing and those in the hands of the enemy are included. , A1_ . . ,« . 4 pay rolls are computed from personnel records. The personnel used m the computations is the count as of the last day of the month for the Army and the average for the month for the N avy. Pay rolls for the N avy (proper) in October include quarterly clothing allowances; in October 1946 these allowances amounted t0 ^Although payments may extend over a period of 3 months, data for the N avy (proper) include the total amount in the month of discharge. 8 Represents Government’s contribution. The men’s share is included in the pay roll. 7 Leave payments were authorized by Pub. N o. 704, 79th Cong., to former enlisted personnel for accrued and unused leave and to present officers and enlisted personnel for leave accrued in excess of 60 days. P ay ment of present enlisted personnel while on terminal leave is included in the pay roll. Value of the bonds represents the face value; interest w ill be paid in addition to the face value at the tim e the bonds are cashed. Detailed Reports for Industrial and Business Employ ment, September 1946 MONTHLY reports on employment and pay rolls are presented below for more than 150 manufacturing industries and for 27 non manufacturing industries including water transportation and class I steam railroads. Data for both manufacturing and nonmanufacturing industries are based on reports of the number of employees and amount of pay rolls for the period ending nearest the 15th of the month. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1026 T a b l e M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 1. Estimated Number of Production Workers in Manufacturing Industries 1 [In thousands] Industry group and industry All manufacturing___ Durable goods____ Nondurable goods. 3pt. 194 Aug. 1946 July 1946 Sept. 1945 2,019 6,091 5,928 11, 881 5, 999 5,882 11, 554 5,829 5,725 10,529 5,234 5,295 Durable goods Iron and steel and their products................................................ Blast furnaces, steel works, and rolling mills.................. Gray-iron and semisteel ca stin g s..................................... Malleable-iron castings............. ................................. Steel castings............... ”” Cast-iron pipe and fittin g s ............................... ................. Tin cans and other tinware..... ................................... Wire drawn from purchased rods................................I l l ” Wirework........................... ............................... ...................... Cutlery and edge tools.......... ........................................ ” ” Tools (except edge tools, machine tools, files, and s a w s ).” Hardware..................... ............ ............................................... . Plumbers’ supplies________ ” ___ Stoves, oil burners, and heating equipment not elsewhere classified..................... ....................................... .................... Steam and hot-water heating apparatus and steam fittings" Stamped and enameled ware and galvanizing________ Fabricated structural and ornamental m etalw ork......... M etal doors, sash, frames, molding, and trim *______ II Bolts, nuts, washers, and rivets............................ . I ........... Forgings, iron and steel__________ ____________ Wrought pipe, welded and heavy-riveted »............” ” ” Screw-machine products and wood screws..................... Steel barrels, kegs, and drums........................................ ” ” Firearms............. ........................................... Electrical machinery.......... ................................................. Electrical equipment.......................................... Radios and phonographs........ ........................ .......I" Communication equipment___________________ ! 1,456 480.1 82.1 24.4 50.7 18.8 44.8 29.8 41.4 25.9 26.4 47.7 28.1 1,433 480.0 81.6 24.1 60.2 16.9 44.4 29.1 39.5 25.7 25.6 45.9 27.1 1, 390 469.5 80.7 23.6 50.2 18.3 43.4 28.7 36.5 25.4 24.3 44.8 25.8 1,240 422.4 66.1 22.0 53.4 13.2 37.6 27.5 26.0 21.0 22.7 33.9 17.5 59.4 48.9 82.0 55.6 10.2 20.4 26.2 13.4 28.6 6.2 14.2 56.8 48.0 79.0 55.5 9.8 18.7 26.3 12.8 27.8 6.4 14.0 54.0 47.7 75.4 53.2 8.8 17.6 25.5 11.5 26.8 5.8 13.3 43.8 40.4 59.8 41.0 7.0 19.5 25.1 12.3 • 25.1 6.0 10.6 542 300.1 84.9 89.0 524 200.7 82.3 85.3 507 282.5 76.7 85.4 445 271.0 57.4 65.7 Machinery, except electrical..... ............................... Machinery and machine-shop products_________ Engines and turbines_________________________ Tractors_________ __________ _________________ Agricultural machinery, excluding tractors______ Machine tools....... ......................... ................. .............. Machine-tool accessories...................................... Textile machinery________ ______ _______ _____ Pumps and pumping equipm ent.......................... . Typewriters______ ____ _____________________ Cash registers, adding and calculating machines.” Washing machines, wringers and driers, domestic. Sewing machines, domestic and industrial.......... . Refrigerators and refrigeration equipment_______ 070 363.2 45.3 52.0 41.2 62.0 51.5 33.4 57.5 20.5 34.7 11.9 10.1 61.4 1,051 356.6 44.9 52.8 40.7 61.3 50.2 32.7 56.9 19.4 33.2 11.5 9.7 60.5 1,027 351.5 43.5 52.4 40.8 59.2 48.7 31.7 54.6 18.2 33.5 10.3 9.8 59.2 913 332.9 44.7 48.8 36.0 59.7 47.4 24.9 52.5 11.5 25.2 6.5 7.4 32.1 Transportation equipment, except automobiles... Locomotives.......... ........................................ ................ Cars, electric- and steam-railroad____ ” ” ” ” ” ” ’ Aircraft and parts, excluding aircraft engines Aircraft engines___________ ______ ____ ________ Shipbuilding and boatbuilding................. ” ” ” ” ” Motorcycles, bicycles, and parts________________I 444 27.1 48.1 139.5 27.9 143.4 11.2 451 26.8 46.6 134.2 27.5 157.8 10.7 459 26.2 45.5 128.8 26.5 173.9 10.4 788 29.7 40.5 156.5 33.1 445.4 6.2 Autom obiles................................................. 764 731 699 426 Nonferrous metals and their products................ Smelting and refining, primary, of nonferrous metals” ” "" Alloying and rolling and drawing of nonferrous metals ex cept aluminum....................................................... Clocks and watches________ _______ I” ” ” ” ...................... Jewelry (precious metals) and jewelers’ findings............ Silverware and plated w a r e ....................... ......... Lighting equipment....................................... ................... Aluminum manufactures....... ..................................................... Sheet-metal work, not elsewhere classified-.” ” ” ! ” ” ” ” ' 396 37.4 392 36.9 378 35.4 301 36.0 61.5 27.8 17.9 14.6 30.4 49.7 26.4 61.2 27.5 17.4 14.2 29.9 49.4 26.5 59.5 26.1 16.7 13.7 29.1 48.6 25.0 51.6 19.6 13.5 9.7 16.8 35.9 21.1 Lumber and timber basic products....................................... Sawmills and logging camps............................” ” Planing and plywood mills...............” ” ” ” ” ” 624 231.9 74.3 625 235.4 73.4 603 229.0 70.7 508 207.7 63.1 See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TRENDS OF EMPLOYMENT AND LABOR TURN-OVER 1027 T a b l e 1.—Estimated Number of Production Workers in Manufacturing Industries 1 Continued [In thousands] Industry group and industry Sept. 1946 Aug. 1946 July 1946 Sept. 1945 Durable goods—Continued Furniture and finished lumbar products _________ - ___ Mattresses and had springs ___________________ Furnitur« - _____- ____ __ ___________ Wooden boxes otber than cigar ______ ______________ Caskets and other morticians' goods ____________ __ Wood preserving ____________________________ Wood turn«d and shaped __________________________ 388 22.7 164.4 25.1 13.2 12.6 22.6 388 21.9 165.3 25.3 13.1 12.5 22.7 376 20.7 160.9 24.7 13.1 12.2 22.0 303 14.7 128.4 23.2 11.3 10.3 19.5 Stone clay and glass products _________ ______ ____ Glass and glassware ________________________ Glass products made from purchased glass__ ___ __ __- __ Cement __________________________ Brick tile and terra cotta _ _____ _______________ Pottery and related produ cts__________________________ Gypsum ______ _____________________ Wallboard, plaster (except gypsum), and mineral wool........ T,ime __________ ____________________________ Marble granite slate and other products ______ ___ __ Abrasives __________________________ Asbestos produts __________________________ 407 104.3 12.0 28.9 63.4 48.0 5.9 10.8 8.9 17.4 19.3 20.5 404 103.7 12.0 29.1 63.4 47.2 5.8 10.9 8.9 17.3 19.0 20.0 390 100.1 11.5 28.2 62.4 45.6 5.5 8.8 8.8 16.9 18.8 19.1 310 84.5 9.8 19.4 42.7 37.4 4.1 9.0 7.4 11.9 17.1 17.5 Textile-mi1! prnflrir.t.s and other fiber m anufactures__________ Cotton manufactures except smaiiwares-.«.« _________ ________ - ___________ Cotton gmab wares Pilk and rayon goods _ ______ ____ ______________ Woolen and worsted manufactures, except dyeing and finishing _ __________________________ Hosiery ___________________________ Twitted cloth _______________________ TCniffpid outerwear and knitted gloves_______________ ___ _____ _____________ ______ Knitted underwear Dyeing and finishing textiles, including woolen and worsted. Carpets and rugSj w o o l _ _____________________________ — Hats fur-felt _________ - ________________ Jute goods except felts ____________ ________ Cordage and t w i n e _ ____________________________________ 1, 212 455.8 14.3 93.0 1,197 452.3 14.1 92.6 1,183 445.0 13.7 90.9 1,051 407.0 12.4 84.9 159.7 113.8 11.1 30.4 34.9 64.1 24.6 11.3 3.8 15.2 155.8 114.1 11.2 29.7 35.2 63.8 24.2 9.0 3.7 14.9 155.0 113.3 11.1 30.0 34.9 63.0 23.7 10.7 3.8 14.4 136.3 96.2 9.6 26.3 32.5 55.9 17.8 9.3 3.4 13.8 Apparel and other finished textile products--- - - - - - - - - - - - - - - - - - Men's clothing not elsewhere classified _ ____________ Shirts collars and nightwear Underwear and neckwear, men's _________________ Work shirts ___________________________ W omen’s clothing not elsewhere classified......................... -«■Corsets and allied*garments ________ _____ . . . ___ _ ______ ____________ ______ ___ Millinery Handkerchiefs _____ - ____ - _____ ______ Curtains draperies, and bedspreads h ___- - - - - - - - - - - - - - - - - - 1,068 197.1 54.4 12.4 13.5 216.5 16.0 19.3 2.3 14.0 11.0 13.5 1, 049 197.3 54.5 11.9 13.3 211.5 15.9 18.7 2.3 13.9 11.1 13.6 1,001 191.8 53.8 11.3 13.3 195.7 15.6 17.1 2.2 14.0 10.6 14.6 911 180.5 48.5 11.3 i3.1 202.1 14.1 18.1 2.6 9.8 8.1 14.4 355 42.1 17.7 192.7 11.0 14.6 354 41.9 18.2 191.4 11.1 14.8 355 41. 6 17.7 193.3 11.3 14.4 305 38.8 16.3 164.6 10.9 10.9 1,157 94.8 25.2 14.2 18.9 29.7 21.0 10.9 241.4 12.7 7.9 52.1 24.1 54.2 243.9 1,166 138.4 26.1 15.0 20.2 29.5 22.4 10.1 236.9 14.0 6.8 48.6 25. 6 52. 4 206.5 1,102 123.4 26.4 15.7 20.9 28. 3 21.7 9. 5 234.0 14. 2 4. 5 46. 0 25.7 52. 0 183.9 1,183 126.5 23.7 14.9 16. 6 3Ü. 8 23.0 9.5 251.0 13.1 7.6 50.7 25.7 55.2 237.1 Nondurable good$ Textile bags - _ ___________________________ Leather - __________________________ Boot and shoe cut stock and findings _ ___________ Trather cloves and mittens ■ R nt for ________________----- _________________________ Canning and preserving------------------------- --------- - ................ See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1028 M ONTHLY LABOR REVIEW— DECEMBER 194 6 T a b l e 1.— Estimated Number of Production Workers in Manufacturing Industries 1— . Continued [In thousands] Industry group and industry Sept. 1946 Aug. 1946 July 1946 Sept. 1945 Nondurable goods—Continued Tobacco manufactures________________________ Cigarettes______________________________ ____ ___ Cigars..______ __________ Tobacco (chewing and smoking) and snuff_______ _ 87 33.6 40.0 7.6 86 33.3 38.7 7.7 85 33.6 37.6 7.6 83 34.9 34.3 8.7 Paper and allied products________________ ________ Paper and pu lp____________________________ . Paper goods, other_____________________________ . Envelopes_________ ____________________________ _ Paper bags____________________________________ Paper boxes_________________________________ 368 167.7 46.6 10.4 14.7 87.4 366 167.8 46.2 10.3 14.0 87.2 361 166.2 45.5 10.2 14.1 85.6 312 142.0 41.9 9. 5 12.2 76.8 Printing, publishing, and allied industries___ ___________ Newspapers and periodicals_________ ______________ Printing, book and job_________________ _______ Lithographing__________________ . . . Bookbinding. _ _____________________ 387 131.8 159.8 29.5 31.9 385 131.1 158.7 29.1 32.1 383 130.1 159.5 28.8 31.2 324 112. 5 133.1 24.2 26.3 Chemicals and allied products _________ _______ Paints, varnishes, and colors............... . Drugs, medicines, and insecticides_______ _______ . Perfumes and cosm etics______________ _ . . . . Soap___________ _ _ ______________ . . Rayon and allied products _____________ . . . _ Chemicals, not elsewhere classified. ____ . . . Explosives and safety fuses ____________ . . . . Compressed and liquefied g a s e s ________ . Ammunition, small-arms _________ Fireworks _____ _________ Cottonseed oil _______________ . . Fertilizers ________ ______ _____ _ 484 36.0 52.2 12.2 14.2 57.4 116.6 12.8 5.7 7.4 3.2 13.4 22.3 475 35.9 51.8 12.6 14.1 57.3 117.2 12.6 5.9 4.9 2.9 10.9 20.9 472 35.6 51.4 12.6 14.0 57.0 117.2 12.3 5.8 7. 6 2.8 8.4 19.3 496 29.7 46.9 12.4 13.2 54.0 111.7 39.2 5.6 13.5 3.3 14. 7 20.9 Products of petroleum and coal __________ _ Petroleum refining_________________ . Coke and byproducts____ __________ Paving materials________________ . . Roofing materials_____ __________ 152 99.8 25.9 2.4 12.6 152 100.1 25.9 2.3 12.2 151 100.1 25.6 2.1 12.0 131 87.7 22.1 1.7 9.8 Rubber products______________ Rubber tires and inner tubes________ Rubber boots and shoes___________ Rubber goods, oth er......... ....... 230 104.0 17.9 73.3 227 102.8 18.0 72.1 218 99.1 17.5 69.3 165 71.8 14. 7 57.7 Miscellaneous industries__________ Instruments (professional and scientific!, and fire control equipment___________________ Photographic apparatus_______________ Optical instruments and ophthalmic goods____ Pianos, organs, and parts . . . _______ Games, toys, and d o lls.. . _______ Buttons____ _________ Fire extinguishers_________ _ _ 428 425 414 334 20.9 25.5 21.2 9.4 23.5 10.6 2.1 21.2 25.6 21.2 9.4 22.8 10.6 2.1 21.2 25.2 21.1 9. x 20.8 10.1 2.0 26.2 20.9 18.8 5. 2 12.8 8.8 2.5 1 September 1946 estimates are based on reports from 33,200 cooperating establishments covering 7,268,000 production workers. Estimates for the major industry groups have been adjusted to levels indicated by final 1944 data made available by the Bureau of Employm ent Security of the Federal Security Agency. Estimates for individual industries have been adjusted to levels indicated by the 1939 Census of Manufac tures but not to Federal Security Agency data. For this reason, together with the fact that this Bureau has not prepared estimates for certain industries, the sum of the individual industry estimates w ill not agree with the totals shown for the major industry groups. 2 Revisions have been made as follows in the data for earlier months: M etal doors, sash, frames, molding, and trim.—January 1946 to 7.4: March to 7.2: M ay and June to 7.3 and 7.7. Wrought pipe, welded and heavy-riveted.—June 1946 to 11.2. Curtains, draperies, and bedspreads.—January through June 1946 to 11.8,12.4, 12.5,12.6,13.0, and 13.8. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TRENDS OF EMPLOYMENT AND LABOR TURN-OVER 1029 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1030 M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 T a b l e 2 . — Indexes of Production-Worker Employment and P ay Rolls in Manufacturing Industries 1 [1939 average=100] Employment indexes Pay-roll indexes Industry group and industry Sept. Aug. July Sept. Sept. Aug. July Sept. 1946 1946 1946 1945 1946 1946 1946 1945 A ll m a n u fa c tu r in g ........................................................................... D u r a b le g o o d s ........................................................................... N o n d u r a b le g o o d s _________ _______________________ 146.7 145. 141. 128. 284. 278. 261. 224.2 168.7 166.] 161. ■ 144.9 314.6 306.6 287.7 246.2 129.4 128.4 125. 115. 254.'- 250. 235.4 202.6 Durable goods 146.9 123.6 140.5 135. 168.5 113.6 141.1 135.7 136.3 167.7 144.5 123. € 139.6 133.6 166. 102.2 139.9 132. i 130.0 166.5 Iron a n d s te e l a n d th e ir p r o d u c ts ______________ ______ B la s t fu r n a c es, s te e l w o r k s , a n d r o llin g m ills ____ G ra y -iro n a n d s e m is te e l c a s tin g s ................................... M a lle a b le -ir o n c a s tin g s ......................... ............................ .. S te e l c a s tin g s .............................................................................. C a st-ir o n p ip e a n d f it tin g s .......................................... .. T in c a n s a n d o th e r tin w a r e _____________ ________ _ W ire d r a w n fr o m p u r c h a se d r o d s _________ _______ W ir e w o r k ......................... ......................................................... C u tle r y a n d e d g e t o o l s . ______ ___________ _______ _ T o o ls (e x c e p t e d g e to o ls, m a c h in e to o ls , file s, a n d s a w s ) . . ........................................ ..................... ........................ H a r d w a r e ________________ ________________________ P lu m b e r s ’ s u p p lie s ____________ _______ _______ ____ S t o v e s , o il b u r n e r s, a n d h e a t in g e q u ip m e n t n o t e lse w h e r e c la s s ifie d ............................................................ S te a m a n d h o t-w a te r h e a t in g a p p a r a tu s a n d s te a m f it tin g s ............................... ......................................... S ta m p e d a n d e n a m e le d w a re a n d g a lv a n iz in g ____ F a b r ic a te d s tr u c tu r a l a n d o r n a m e n ta l m e t a l w o r k ......................... ...................................................... .......... M e t a l doors, sa sh , fra m e s, m o ld in g , a n d tr im B o lt s , n u t s , w a sh e r s, a n d r iv e t s ................ ................... F o r g in g s, iro n a n d s te e l_________________ ______ _ W r o u g h t p ip e , w e ld e d a n d h e a v y - r iv e te d >______ S c r e w -m a c h in e p r o d u c ts a n d w o o d s c r e w s ............. S te e l barrels, k e g s , a n d d r u m s «...................................... F ir e a r m s ...................................................................................... 156.7 131.9 142.5 170.1 159.7 168.7 2102.7 284.1 156.1 126.7 130.6 170.9 153.4 164.1 106.0 281.0 149.8 114. 1 122.9 165.9 137.0 158.5 95.6 266.9 115.5 90. ] 136.1 163.5 147.1 148.6 98.5 213.0 273.9 248.9 245.0 301. 1 281.3 334.0 214.5 573.2 271.7 233.4 227.7 303.8 270.7 324.9 227.4 530.8 250.8 207.4 190.5 272.1 218.6 300.5 187.2 515.9 180.8 148.1 217.1 258.5 237.3 260.2 164.5 380.0 E le c tr ic a l m a c h in e r y ......................... ............... E le c tr ic a l e q u ip m e n t ........................................................ R a d io s a n d p h o n o g r a p h s ................................................... C o m m u n ic a tio n e q u ip m e n t .............................. ............... 209.3 166.0 195.1 277.2 202.1 160.8 189.0 265.6 195.8 156.3 176.2 265.9 171.5 149.9 131.8 204.6 384.5 299.5 391.8 505.1 364.4 285.0 368.3 478.8 338.3 264.3 332.1 459.2 268.5 229.7 227,6 313.9 M a c h in e r y , e x c e p t e le c t r ic a l............................ ........................ M a c h in e r y a n d m a ch in e -sh o p p r o d u c ts____ I I .I I E n g in e s a n d t u r b in e s .............................. ............... T r a c to r s ______ ______ ______ ____________ _____ A g r ic u ltu r a l m a c h in e r y , e x c lu d in g tr a c to r s ______ M a c h in e t o o ls __________ __________ __________ _____ M a c h in e -to o l a c c esso r ie s____ ____________ HH T e x t ile m a c h in e r y .___________ IIIIIIIIII P u m p s a n d p u m p in g e q u ip m e n t .......... ............... T y p e w r it e r s _________________________________ I .I I I I C a sh r eg isters, a d d in g a n d c a lc u la tin g m a c h in e s !! W a s h in g m a c h in e s , w r in g e r s a n d d riers, d o m e stic S e w in g m a c h in e s , d o m e stic a n d in d u s tr ia l_______ R e frigerators a n d r efrig era tio n e q u i p m e n t . . .......... 202.5 179.5 242.6 166.4 148.1 169.2 204.8 152.3 237.1 126.6 176.1 158.7 128.3 174.7 199.0 176.2 240.9 168.7 146.4 167.5 199.5 149.2 234.6 119.5 168.9 153.8 123.2 172.1 194.4 173.7 233.1 167.5 146.8 161.5 193.5 144.7 225.2 112.2 170.0 137.8 124.8 168.4 172.7 164.6 239.6 155.9 129.3 163.1 188.2 113.6 216.6 71.2 128.1 87.4 94.6 91.2 362.2 322.9 484.5 254.1 269.8 285.5 336.0 290.5 444.0 248.1 333.2 287.9 243.1 298.2 348.8 314.2 453.7 256.5 256.7 281.4 316.3 277.9 438.4 228.2 292.8 269.5 238.9 288.2 333.5 299.4 446.8 248.4 251.2 262.3 293.2 265.3 413.2 216.5 314.2 234.6 229.6 272.2 285.7 266.4 368.6 237.5 246.8 260.5 279.6 209.8 389.9 133.1 210.4 143.2 192.8 146.7 T r a n s p o r ta tio n e q u ip m e n t, e x c e p t a u to m o b ile s ............ L o c o m o tiv e s .......................... .................................................... C ars, e le c tric - a n d s te a m -r a ilr o a d ________ ________ A ir c ra ft a n d p a r ts, e x c lu d in g aircraft e n g in e s ____ A ir c ra ft e n g in e s __________________ _________________ S h ip b u ild in g a n d b o a t b u i ld i n g l .I I I I I I I I I I I I I I H M o to r c y c le s , b ic y c le s , a n d p a r t s . . _______________ 279.8 419.4 196.1 351.6 313.5 207.1 160.1 284.0 414.0 190.1 338.3 309.3 227.9 152.9 289.1 405.1 185.7 324.2 298.3 251.2 148.6 496.5 458.4 165.1 394.5 372.2 643.3 88.6 513.0 855.6 364.9 663.9 509.7 362.1 287.3 533.0 835.4 362.0 640.8 498.3 423.1 267.9 538.5 836.0 341.5 605.6 468.9 468.8 239.8 844.1 894.1 271.7 624.5 469.7 1115.9 132.7 140. 120.9 138. 131.0 167. C 110.5 136.6 130. 5 120.2 164.8 125. 108.8 113. 121.8 177.6 80. 118. < 125 .: 85.7 136.5 263. 206.3 291." 287.5 297.5 240. ‘ 274. : 231.8 272.6 364.6 255. 204. 280.5 282. 294.8 208.6 270. 219. 267.3 354.9 238. 191.8 264. C 267. 277.1 221.7 248.7 206.3 237.2 340.4 206.9 175.3 214.8 228.4 280.9 151.2 200.7 179.4 157.6 265.0 172.2 167.2 158.6 148.3 340.8 326.2 303.6 256.7 133.8 128.7 125.7 95. ( 267.2 254.3 244.9 173.9 113.9 110.0 104.8 71.2 196.7 191.0 175.4 114.2 128.8 123.0 117.0 95.1 247.5 234.3 210.7 160.5 161.3 158.2 157.3 133.4 306.7 289.6 279.7 234. 0 147.6 142.2 135.8 107.7 291.0 279.9 253.5 190.1 A u to m o b ile s .......................................... 189.8 181.8 173.6 105.9 320.2 308.0 282.2 151.2 N o n fe r r o u s m e ta ls a n d th e ir p r o d u c t s . . . ......................... S m e lt in g a n d r e fin in g , p r im a r y , o f n o n ferro u s m e t a ls ____ _____ __________________ _______________ A llo y in g a n d r o llin g a n d d r a w in g o f n o n ferro u s m e ta ls e x c e p t a lu m in u m ____ _____ ______________ C lo c k s a n d w a t c h e s . ________ _________________ I I I I J e w e lr y (p r ec io u s m e ta ls) a n d je w e le r s ’ f in d in g s .. S ilv e r w a r e a n d p la te d w a r e .............................................. L ig h t in g e q u ip m e n t .............................................................. A lu m in u m m a n u f a c t u r e s .__________________ _____ S h e e t-m e ta l w o r k , n o t e ls e w h e r e c l a s s i f i e d .. .I I I I 172.9 171.0 165.0 131.2 320.0 311.4 292.9 223.3 See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 135.3 133.6 128.2 130.4 247.0 239.5 227.8 231.3 158.4 136.8 123.8 120.0 148.6 211.0 141.1 157.8 135.5 120.6 117.2 146.1 209.6 141.1 153.2 133.0 284.1 279.7 268.7 222.6 128.5 96.6 289.7 280.8 251.4 168.5 115.5 93.7 237.3 221.1 201.6 160.4 112.6 80.1 250.9 232.7 213.7 144.2 142.1 82.2 260.5 252.4 239.2 131.6 206.4 152.5 358.1 351.3 340.4 219.9 133.1 112.4 265.5 273.4 246.1 200.1 TRENDS OF EMPLOYMENT AND LABOR TURN-OVER 1031 T a b l e 2 . — Indexes of Production-Worker Employment and P ay Rolls in Manufacturing Industries 1— Continued [1939 a v e r a g e = 1 0 0 ] Employment indexes Industry group and industry Sept. Aug. 1946 1946 Pay-roll indexes July Sept. Sept. Aug. 1946 1945 1946 1946 July Sept. 1946 1945 Durable food*—Continued Lumber and timber basic products...............................- 148.5 148.7 143.4 120.8 305.7 305.5 270.8 215.3 80.5 81.7 79.5 72.1 167.5 169.7 151.7 130.3 Sawmills and logging camps..................................... Planing and plywood m ills........................... ........... 102.3 101.0 97.3 86.8 198.8 196.2 174.0 145.2 92.4 80.3 80.6 91.3 90.6 91.2 88.5 243.4 238.4 212.1 218.3 194.5 266.4 209.6 239.3 223.4 209.7 223.0 185.2 255.1 210.9 222.1 205.9 194.2 203.4 182.4 244.7 199.7 164.0 137.9 140.8 176.6 149.6 209.4 159.0 Furniture and finished lumber products___________ Mattresses and bedsprings____________________ Furniture________ . . . . ___ _____ ________ Wooden boxes, other than cigar_________ ____ Caskets and other morticians’ goods___________ Wood preserving______ _______ ____________ Wood, turned and shaped____________________ 118.2 123.6 103.3 98.9 106.2 112.3 102.6 118.1 119.2 103.9 99.7 105.1 110.9 103.4 114.5 112.7 101.1 97.6 105.2 108.4 99.9 Stone, clay, and glass products............................ ........... Glass and glassware_______________ _________ Glass products made from purchased glass_____ Cement______________________ ______________ Brick, tile, and terra cotta___________ _________ Pottery and related products_________ _____ _ Gypsum--------------- --------------------------------------Wallboard, plaster (except gypsum ), and mineral wool_____ ________________________________ Lime ______ ____ ______________________ ____ Marble, granite, slate, and other products--------Abrasives........................ ................ ........................... Asbestos products___________________ ________ Nondurable goods Textile-mill products and other fiber manufactures... Cotton manufactures, except small wares______ Cotton smallwares______________ ____ ________ Silk and rayon goods_________________________ Woolen and worsted manufactures, except dyeing and finishing......................... ............................ Hosiery______________________ _________ ____ Knitted cloth_____ . . . . . . . ........ ..................... Knitted outerwear and knitted gloves_________ Knitted underwear_____ __________________ Dyeing and finishing textiles including woolen and worsted_____________ _______ __________ Carpets and rugs, wool...... ....................................... Hats, fu r-fe lt....................... ......................... .............. Jute goods, except felts.............. ................................ Cordage and tw ine..........................— .................... 138.7 149.4 119.9 121.5 111.7 145.1 119.7 137.8 148. 5 120.3 122.0 111.7 142.6 117.6 132.9 105.7 259.8 253.2 235.7 175.7 143.4 121.0 268.9 255.0 238.3 188.9 114.8 98.1 223.3 227.7 205.5 172.2 118.2 81.3 212.5 207.0 196.1 131.0 109.9 75.2 224.1 219.8 210.5 125.6 137.9 113.0 257.7 252.4 229.0 172.7 111.4 82.9 231.0 226.9 197.6 144.8 Apparel and other finished textile products________ M en’s clothing, not elsewhere classified________ Shirts, collars, and nightwear_________________ Underwear and neckwear, men’s______________ Work shirts_________________________________ Women’s clothing, not elsewhere classified_____ Corsets and allied garments................ ..................... Millinery__ _______________________________ Handkerchiefs____________________ ____ ______ Curtains, draperies, and bedspreads *__________ Housefurnishings, other than curtains,'etc______ Textile bags.......... ................ ....................................... 280.0 216.5 154.8 407.7 272.1 215.7 201.0 147.0 404.5 252.4 211.2 158.3 102.0 339.6 216.9 104.7 103.5 91.9 237.2 231.0 114.2 112.4 102.8 281.7 275.5 105.8 103.0 92.9 222.0 220.3 77.2 75.9 70.9 180.9 181.4 214.7 246.1 207.6 166.3 169.7 201.0 166.0 138.2 133.0 134.9 108.6 110.9 93.8 93.7 93.1 77.9 94.1 93.4 91.2 64.3 249.3 246.1 243.4 220.6 128.9 126.1 120.2 110.4 106.0 115.1 107.5 77.6 0 107.6 71.8 101.0 108.6 90. 283.9 219.5 152.9 399.2 276.3 91.3 60.5 88.3 93.6 84.3 242.7 143.7 214.4 234.0 200.4 234.1 141.3 213.1 220.1 196.1 228.6 130.9 209.0 216.7 189.7 175.4 101.1 168.1 172.1 157.2 95.9 95.4 94.2 83.6 96.1 94.7 92.7 69.4 78.0 61.8 73.7 63.8 105.7 103. 7 104.9 95.3 125.5 122.8 118.8 114.2 186.8 182.5 181.3 237.4 266.2 187.6 173.0 137.9 225.8 255.9 178.8 165.2 152.0 217.2 229.3 144.8 113.7 124.8 190.3 218.0 135.3 132.9 126.7 115.3 90.2 90.2 87.7 82.5 77.3 77.3 76.4 68.8 76.8 73.8 70.2 70.3 100.6 98.9 98.9 97.1 79.7 77.9 72.1 74.4 85.0 84.7 83.0 74.9 79.6 77.1 70.5 74.5 46.7 47.3 46.1 53.9 82.9 82.0 82.8 57.8 103.7 104.8 100.2 76.4 112.2 113.7 122.1 120.5 288.2 186.8 167.6 188.1 219.3 176.0 171.8 149.3 100.7 175.1 218.1 210.0 277.5 182.7 162.7 173.8 214.8 169.8 168.6 138.7 103.0 169.5 214.6 203.2 244.7 166.8 155.3 157.9 204.2 141.3 160.0 123.3 93.2 171.5 198.3 208.1 208.4 141.4 126.1 141.8 188.3 138.4 132.2 131.1 98.1 111.0 131.0 205.7 Leather and leather products................... ............ ........... 102.4 102.0 102.3 88.0 203.3 89.1 88.6 88.1 82.1 lbO. 2 Leather.______ _____________________________ Boot and shoe cut stock and findings..................... 93.7 96.6 94.1 86.5 168.4 Boots and shoes------------------------- ------------------- 88.4 87.8 88.6 75.5 182.7 Leather gloves and mittens_______ ________ ___ 109.9 111.5 113.4 109.4 220.6 175.0 177.9 173.0 130.8 333.6 Trunks and suitcases_______________ ______ _ 198.2 161.1 181.0 175.4 214.7 333.0 197.3 156.5 167.8 177.6 217.1 303.6 160.2 146.3 143.4 140.3 195.3 212.8 242.7 118.2 258.2 279.9 204.0 249.1 261.1 269.2 187.5 142.0 250.3 202.3 263.7 293.2 215.7 238.6 275.2 244.4 184.1 162.5 231.5 179.9 267.6 305.9 221.7 221.1 251.0 219.5 178.5 167.5 226.6 177.6 216.2 261.0 161.8 218.2 267.2 243.9 173.6 145.3 Food__________________ . ________ ______ _____ Slaughtering and meat packing........................ ....... Butter______________________________________ Condensed and evaporated milk----- ---------------Ice cream._______________ ___________________ Flour ___________________ ________________ _ Feeds, prepared..____ _____________ ________ _ Cereal preparations......................................... ............ Baking........ .............................................................. . Sugar refining, cane.............. ............. ....................... See fo o tn o te s a t end o f tab le. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 135.4 78.6 140.6 146.6 120.2 119. S 136.2 146.4 104.6 90.0 104.4 103.9 71.7 71.2 102.4 101.2 105.8 106.8 91.2 90.6 136.5 114.8 145.4 154.9 128. S 118. S 145.7 135.1 102.7 98.8 129.0 102.4 146.9 162.1 132.7 114.3 140.6 127.4 101.4 100.0 138.4 105.0 132.1 153.9 105.9 124.3 149.2 126.9 108. S 92.3 1032 M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 T able 2.— Indexes of Production-Worker Employment and P ay Rolls in Manufacturing Industries 1— Continued [1939 average=100] Employment indexes Pay-roll indexes Industry group and industry Sept. Aug. 1946 1946 July Sept. Sept. Aug. 1946 1945 1946 1946 July Sept. 1946 1945 Nondurable goods— C o n tin u e d F o o d — C o n tin u e d Su gar, b e e t ___ ______ ________ ______ ________ C o n fe c tio n e r y _______________________________ B e v e r a g e s, n o n a lc o h o lic .______ ____________ M a lt liq u o r s ________________________________ C a n n in g a n d p r e s e r v in g ____________________ 76.1 64.8 43. 104. 7 97.7 92.5 113.2 120.6 120.8 150.2 145. 2 144. C 181.4 153.5 136.8 T o b a c c o m a n u fa c tu r e s __________________________ C ig a r e tte s _________________________ _________ C ig a r s_______________________________________ T o b a c c o (c h e w in g a n d s m o k in g ) a n d sn u ff. 72.5 102. ( 120.7 153.0 176.3 151.1 204.2 170.6 244.2 465.4 107. 186. 185. C 232.3 387.4 72.0 169.7 186.1 222.3 325.8 108.9 175.4 168.4 242.6 351.6 93.5 91.7 90.7 89.5 196.0 122.5 121.1 122.5 127.2 226.6 78.6 76. 1 73.9 67.5 180. i 82.8 83.6 83.1 95.2 150.7 186.2 218.0 167.4 149.3 178.3 211.1 160.1 140.5 176.0 214.1 148.4 164.6 P a p e r a n d a llie d p r o d u c t s ._______ ______________ P a p e r a n d p u l p . . . ______________ ___________ P a p e r g o o d s, o t h e r . . . _______________________ E n v e lo p e s ____ _____ ________________________ P a p e r b a g s . ______________ __________________ P a p e r b o x e s ______ ___________ _______________ 138.0 122.0 123.8 119.3 132.3 126.3 137.8 122.1 122.7 118.1 126. S 126.1 135.9 120.9 120.8 116.8 127.5 123.8 253.9 227.8 216.4 205. 5 233.9 234.1 243.8 218.4 211.8 198.4 237. 7 222.6 200.7 180.5 182.6 174.5 193.4 185.5 P r in tin g , p u b lish in g , a n d a llie d in d u s tr ie s ____ _____ N e w s p a p e r s a n d p e r i o d i c a l s . .. ....................... ............. P r in tin g , b o o k a n d j o b ________ __________________ L ith o g r a p h in g ___________ _____ ___________________ B o o k b in d in g ________ ______ _____ _________________ 117.9 111. 1 126.4 113.6 123.6 117.3 110.4 125.6 112.0 124.4 116.8 98.8 195.9 190.5 186.0 109.6 94.8 176.3 168.8 163. 7 126.3 105.4 216.1 211.1 209.1 110.8 93.2 185. 2 182.6 173.2 121.0 102.0 247. 5 250.9 240.7 147.7 130.2 166.5 141.0 184.7 C h e m ic a ls a n d a llie d p r o d u c t s .................. ..................... .. P a in t s , v a r n ish e s , a n d c o lo r s ____________________ D r u g s , m e d ic in e s, a n d in s e c tic id e s ______________ P e r fu m e s a n d c o s m e tic s _____________________ S o a p ___________________________________ R a y o n a n d a llie d p r o d u c ts ______________________ C h e m ic a ls , n o t e ls e w h e r e c la s s ifie d ______________ E x p lo s iv e s a n d s a fe ty f u s e s ______________________ C o m p r e ssed a n d liq u e fie d g a se s_________________ A m m u n itio n , s m a ll-a r m s ____________________ F ir e w o r k s __________ _____ ______________________ C o tto n s e e d o i l _______________________________ F e r t iliz e r s ........................................... ........................"" ” ” 16V. 9 127.8 190.6 118.0 104.5 118.8 167.6 176.9 144.5 174.1 272.5 88.1 118.9 164.9 127.6 189.2 121.4 103.8 118.7 168.5 173.1 148.1 115.6 254.7 71.4 111.5 163.7 126.6 187.5 121.4 103. 2 118.0 168.4 169.8 145.9 178.0 244.4 55.6 102.7 172.1 105.6 171.2 120.1 97.6 111.8 160. 5 540.8 140.6 316.2 281.8 97.0 111.2 298.3 201.7 317.0 195.2 173.2 210.8 289.6 292.9 239.4 339.3 698.3 199.9 297.6 290.5 204.2 314.0 191.8 171.7 206.2 288.0 272.6 247.2 201.4 623.1 160.1 275.4 286.9 199.5 307.0 191.4 170.2 197.6 289.2 264.5 238.8 335.7 622.1 119.8 246.4 292.2 167.0 265.0 178.9 170.2 179.4 273.6 738.9 230.0 561.8 755.3 204.8 261.0 P r o d u c ts of p e tr o le u m a n d co a l______________________ P e tr o le u m r e fin in g _______________________________ C o k e a n d b y p r o d u c t s ______ ___________ " P a v in g m a te r ia ls _______________________________ R o o fin g m a te r ia ls _____ _____ _________ _____ 143.8 137.0 119.4 97.2 156.6 143. 4 137.4 119.2 92.5 151.0 142.7 137.4 117.8 86.7 149.4 123.3 120.4 101.9 71.4 122.0 250.3 232.7 218.1 196.9 298.6 246.3 228.7 216.8 189.2 292.0 244.3 228.0 215.1 174.2 2V9. 5 212.1 203.5 181.6 142.0 208.7 R u b b e r p r o d u c t s _______________________ ______________ R u b b e r tir e s a n d in n e r t u b e s ......................I I I I I I I I I ' R u b b e r b o o ts a n d s h o e s ________ . R u b b e r go o d s, o t h e r .____ _____________________ 190.1 192.2 120.7 141.6 187.5 189.9 121.3 139.4 180.2 136.5 365.0 343.2 327.2 183.1 132.7 340.5 311.2 304.3 118.4 99.4 242.5 240.2 226.6 133.8 111.5 282.4 277.7 255.9 231.3 211.4 185.6 193.2 M is c e lla n e o u s in d u s tr ie s _________________ _________ I n s tr u m e n ts (p r o fe ssio n a l a n d s c ie n t if i c ) r a n d fire c o n tr o l e q u ip m e n t ..................... P h o to g r a p h ic a p p a r a tu s __________________ O p tic a l in s tr u m e n ts a n d o p h t h a lm ic g o o d s .......... P ia n o s , o r g a n s, a n d p a r ts ______________________ G a m e s, t o y s , a n d d o l ls __________________ B u t t o n s _________ _______ _______________________ ” F ir e e x tin g u is h e r s _________________________ i l l " 188.8 147.8 182.0 124.0 125.9 96.2 212.3 117. 5 103.3 111.3 109.6 109.8 111.1 257.1 228.0 225.8 207. £ 249.8 235.8 174.9 173.9 169.2 136.5 334.9 326.9 311.8 239.2 191.3 148.3 182.1 122.9 122.1 96.3 209.1 191.6 145.9 181.8 118.9 111.3 92.2 202.1 236.8 120.9 162.1 67.8 68.7 80.5 252.1 330.7 240.9 322.1 241.1 258.8 213.2 414.7 330.4 244.6 316.5 230.8 252.1 208.2 405.8 327.0 240.0 314.9 213.7 222.1 195.2 397.1 372.7 190.6 265.6 110.9 124.3 167.7 463.4 These indexes are based on reports from 33,200 cooperating establishments covering 7,268,000 full-and Pi?r i eS?6 Production workers who worked or received pay during any part of one pay period ending nearest tne 15th of September 1946. Indexes for the major industry groups have been adjusted to levels indicated * v,n a . data u p d e available by the Bureau of Employm ent Security of the Federal Security Agency. 2 Revisions have been made as follows in the indexes for earlier months: Metal doors, sash, frames, molding, and trim.—August 1945 through June 1946 pay roll to 167.5, 148.1, J55.7, J 16V2, 158.0, 136.8, 157.9, 189.8, 159.6, and 175.3; January 1946 employment to 95.8, March to 93.0, M ay and June to 94.4 and 99.9. Wrought pipe, welded and heavy-riveted.—April and June 1946 pay roll to 274.3 and 229.0, respectively; June employment to 134.0. Steel barrels, kegs, and drums.—March through June 1946 pay roll to 148.7, 170.4, 192.0, and 190.3. Curtains, draperies, and bedspreads.—January through June 1946 employment to 70.1, 73.3, 74 1, 74 7 76.6, and 81.6; pay roll to 138.8, 142.8, 151.6, 157.4, 162.7, and 175.3. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1033 TRENDS OF EMPLOYMENT AND LABOR TURN-OVER T a b l e 3 . —Estimated Number of Employees in Selected Nonmanufacturing Industries 1 Estimated number of employees (in thousands) Industry group and industry Sept. 1946 Aug. 1946 July 1946 Sept. 1945 Mining: 2 68.1 67.9 67.5 64.3 A n th ra cite________ _ ___________ _______ ___ 336 332 325 335 Bituminous coal ______________________________ 68. 8 63.7 73.7 72. S Mp.tal __ _ _ _ _______ -- _____ 28.1 27.4 23.7 27.7 Iron ___ -- - _____ __ - _____ 20.4 21.5 21.2 18.8 Copper ______ _______ ___ 14.9 13.8 11.5 13.2 _______ -Lead and zinc. __ _ _______ 7.2 7.2 5.5 7.0 Gold and silver . . ____________ -2.5 2.5 2.5 2.4 Miscellaneous __ ______ ___________ 565 424 575 575 Telephone ____ ________ - - -- - ----- ---------42.1 42.3 42.2 45.6 Tolograph 3 _______ - _________ -247 249 206 249 Eleetrie Iwht, and power __ __ _ __ ________________ 252 229 252 250 Street railways and b u s e s ____ - _______________ 384 362 385 385 H ot el s (year-round) _____________ ____ ____________ (4) « (4) (4) ______ - -_____ _____ ____ Power laundries (4) Pleaning and dveing _________ __________ (4) (4) (4) 1,368 1,350 1,414 1,362 r,las,s T steam railroad s 8 __ _ _______ 119 168 120 m Water transportation 6--------------------------------------------i See footnote 1, table 4. 2 Data are for production workers only. 3 Excludes messengers, and approximately 6,000 employees of general and divisional headquarters, and of came companies. . . . , , ,,. , , . , , 4 The change in definition from “wage earner” to “production worker” m the power laundries and cleaning and dyeing industries results in the omission of driver-salesmen. This causes a significant difference in the data N ew series are being prepared. 5 Source: Interstate Commerce Commission. « Based on estimates prepared by the U . S. Maritime Commission covering employment on active deepsea American-flag steam and motor merchant vessels of 1,000 gross tons and over. Excludes vessels under bareboat charter to, or owned by the Army or N avy. September 1946 data are not available. T a b l e 4 . — Indexes of Employment and P ay Rolls in Selected Nonmanufacturing Industries 1 [1939 average=100] Pay-roll indexes Employment indexes Industry group and industry Sept. 1946 Aug. 1946 July 1946 Sept. 1945 Sept. 1946 Aug. 1946 July 1946 Sept. 1945 Mining: 149.8 81.4 77.6 191.1 193.3 156.5 82.0 82.2 Anth rani to, ____________________ 90.7 87.6 232.9 238.9 198.4 199.7 89.5 90.4 Bituminous coal _____________ _____ 72.2 146.9 145.2 132.4 116.4 82.5 78.0 83.5 M etal ________ _________ ________ 197.5 ________ _________ ____ 138.1 139.3 135.6 118.1 253.3 253.5 247.1 Iron 78.8 163.1 164.1 153.8 127.5 88.8 85.6 90.0 Copper ___ -- -- _______ 159.4 74.2 84.6 188.0 172.1 128.5 89.0 Load and zinc ________________ 95.6 43.5 38.5 28.4 22.3 42.5 29.1 28.5 29.0 Gold and silver _______ _______ 96.7 63.6 97.6 103.0 104.6 63.7 62.5 Miscellaneous __ -- _________ 60.4 225.1 159.2 103.2 82.5 226.7 213.6 101.2 Quarrying and non metal lie _______ 102.4 138.4 84.0 150.5 152.6 151.3 95.5 95.4 Crude petroleum production 2 ___ __ 94.1 Public utilities: ~ 181.7 181.0 181.1 177.7 133.5 265.0 267.6 268.8 178.5 178.6 177.2 111 9 112.4 121.2 (5) m Telegraph ___________ __ ___ _ 84.5 153.3 152.4 150.2 120.6 Electric light and power ______ ______ 101.9 101.9 101.2 207.9 211.2 206.7 177.1 128.9 118.0 130.2 129.9 _______ Street railways and busses 145.6 97.0 182.8 177.3 174.5 Wholesale trade _________________________ 109.4 109.1 107.5 106.2 180.9 174.6 172.6 97.6 138.7 106.7 ■Retail trad e ________________________ 109.8 145.7 Pood _ _ _______ ___ _ — -- 103.5 103.6 101.3 102.0 173.5 177.3 171. 5 188.1 187.1 110.4 150.0 117.4 117.7 199.0 125.4 General merchandise ________ 165.0 Apparel ___________ ____ 116.7 105.8 107.9 106.4 197.5 175.9 177.5 92.1 63.2 139.1 129.9 129.6 79.5 78.1 81.5 Furniture and honsefurnishings___ ____ 113. 5 93.4 72.3 164.8 160.1 156.8 94.4 Automotive ________ ______ - 95.5 191.4 186.1 180.1 146.7 96.1 112.6 111.1 113.8 Lumber and building materials _ ____ 177.2 Ffnt.pls (year-round)3 _________ ______ 119.5 119.3 119.1 112.2 209.6 208.9 204.9 168.1 Power laundries _________________________ 109.9 111.6 113.6 106.6 188.7 188.4 193.3 199.2 P,loaning and dyeing ______________ 125.6 124.5 130.0 122.3 227.2 216.9 231.3 143.1 138.5 136.6 137.9 (5) (5 ) (5) _________ __ (•) Plass I stpam railroads 4 478.8 490.1 669.6 225.9 228.2 320.5 (») (5) Water transportation6_____________________- 4 -------1 These figures are based on reports irom cooperating raiauiiimucuo;. iu»cniii6 umn mm employees who worked or received pay during any part of one pay period ending nearest the 15th of September 1946, as follows: . , Mining—2,800 establishments—346,000 production workers. Public utilities—3,400 establishments—761,000 employees. Wholesale trade—12,000 establishments—324,000 employees. Retail trade—39,800 establishments—1,042,000 employees. Hotels (year-round)—1,300 establishments—129,000 employees. Power laundries and cleaning and dyeing—1,500 establishments—72,000 production workers 2 Does not include well drilling or rig building. . . . . . . 3 Cash payments only; additional value of board, room, and tips, not included. * Source: Interstate Commerce Commission. _ 3 N ot available. « Based on estimates prepared by the U. S. Maritime Commission covering employment on active deepsea American-flag steam and motor merchant vessels of 1,000 gross tons and over. Excludes vessels under bareboat charter to, or owned by the Army or N avy. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1034 MONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 Labor Turn-Over in Manufacturing, Mining, and Public Utilities, September 1946 THE September factory hiring rate of 70 per 1,000 workers continued at high levels, exceeding the prewar demand for labor. Women were hired at a higher rate than men in two-tliirds of the durable and in all 10 of the nondurable goods groups. The highest accession rate was reported by the flour and feed milling industry, in which a rate of 108 per 1,000 reflected the change back to the manufacture of white flour, as well as increased orders for flour. Separation rates also showed tight labor-market characteristics. For every 1,000 employees on factory pay rolls, 52 quit, 4 were dis charged, 9 were laid off, and 2 were separated for other reasons. Separation rates in anthracite and bituminous coal mining remained substantially below those in manufacturing industries. T able 1.—Monthly Labor Turn-Over Rates (Per 100 Employees) in Manufacturing Industries 1 Class of turn-over and year Jan. Total separation: 1946______ _____ _ 1945.......................... 1943........... ............. 1939.......................... Quit: 1946.......................... 1945_____________ 1943............ ............. 1939.......................... Discharge: 1946_____________ 1945.......................... 1943.......................... 1939.......................... Lay-off:* 1946_____ _______ 1945.......................... 1943......................... 1939............. ............ M ilitary and miscellaneous:* 1946_____________ 1945.......................... 1943_____________ Accession: 1946................................. 1945.................................. 1943________________ 1939__________ _____ _ Feb. Mar. Apr. M ay June July 6.8 6.3 6.6 6.3 6.2 6.0 6.8 6.6 7.1 7.1 7.7 7.5 3.2 2.6 3.1 3.5 6.3 7.0 6.7 3.5 5.7 * 5.8 7.9 7.7 7. 1 7.6 3.3 3.3 4.3 4.6 4.5 .9 3.9 4.3 4.7 4.2 5.0 5.4 4.3 4.8 5.4 .8 4.2 4.8 4.8 .7 4.0 5. 1 5.2 .7 .5 .7 .5 .5 .7 .5 .4 .7 .4 .4 .3 .7 .8 .8 34.6 5.2 5.6 Aug. Sept. Oct. Nov. Dec. 6.6 36.7 12.0 8.6 8. 1 7.0 2.8 2.9 5.3 35.2 6.2 6.7 5.6 6.3 6.3 5.2 .8 1. 1 .9 17.9 8.3 3.0 7.1 6.4 3.0 5. 9 4.7 4.5 4 0 4.4 .4 .4 3 .4 .6 .6 .4 .6 .5 .5 .6 .5 .6 .6 .6 .7 .7 .6 .6 .6 .1 .1 .1 .1 .1 . 1 .1 . 1 .1 .2 j 2 1.8 1.7 1.8 1.4 1.5 1.2 3.6 .7 ‘ : 9 .6 .7 .7 .8 1.2 1.7 1.5 10.7 % 5 2.3 1.7 .7 .5 .5 .6 .5 .5 .7 .5 .5 .5 2.2 1.9 2.2 2.6 2.7 2.5 2.5.5 2.1 1.6 1.8 20 .2 .2 .2 .2 .2 .2 .2 . 2 3.2 .3 .3 .4 .4 .4 .4 .4 .3 .2 .2 . 2 1.4 1.4 1.2 1.0 .8 .8 .8 .8 .7 .7 8.5 6.8 7.1 6.7 6.1 6.7 37.4 7. 0 37.0 7.0 5.0 4.9 4.7 5.0 5.9 5.8 5.9 7.4 8.6 8.7 8.3 7.9 8.3 7.4 7.2 8.4 7.8 7.6 7.7 7.2 4.1 3.1 3.3 2.9 3.3 3.9 4.2 5.1 6.2 5.9 6.6 4.1 6.6 3.5 jj ^4 J> 1. 3 J) 27 1 .2 , 0 6.9 6. 2 2.8 1 Month-to-month employment changes as indicated by labor turn-over rates are not precisely comparable to those shown by the Bureau’s employment and pay-roll reports, as the former are based on data for the entire month while the latter refer, for the most part, to a 1-week period ending nearest the middle of the month. In addition, labor turn-over data, beginning in January 1943, refer to all employees, whereas the employment and pay-roll reports relate only to production workers. The turn-over sample is not so exten sive as that of the employment and pay-roll survey—proportionately fewer small plants are included; print ing and publishing, and certain seasonal industries, such as canning and preserving, are not covered For P® ™°nth l°f August, [rates are based on reports from 6,900 cooperating establishments, employing 4,409,000 workers. ° * Revised. * Preliminary. ‘ Including temporary (of more than 7 days’ duration), indeterminate, and permanent lay-offs. «M iscellaneous separations comprise not more than 0.1 in these figures. In 1939 these data were included. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1035 TRENDS OF EMPLOYMENT AND LABOR TURN-OVER Lumber and furniture continued to have the highest quit rates of any of the major industrial groups. Despite the relatively high accession rates in these groups, the respective quit rates of 91 and 82 per 1,000 tended to keep employment from rising. High injuryfrequency rates are typical of both groups. Proportionately more women than men quit factory jobs, while lay-offs and discharges continued lower for women than for men. Although the quit rate for women was considerably higher than that for men in nondurable goods industries, in the durable goods component the rates were closer—58 per 1,000 women and 51 per 1,000 men. T able 2. —Monthly Labor Turn-Over Rates (Per 100 Employees) in Selected Groups and Industries,1 September 1946 2 Total separa tion Quit Discharge Lay-off Aug. Aug. j Sept. Aug. Sept. Aug. 5.3 5.2 5.2 5.4 0.4 .3 0.5 .4 0.8 1.0 0.8 .6 0.2 .1 0.2 .1 7.2 6.7 7.2 6.8 5.6 5.3 4.5 4.3 .3 .4 .5 .4 .3 .2 5.6 6.1 4.1 3.8 8.9 9.7 7.3 8.2 5.3 5.3 7.2 6.6 12.7 14.5 4.7 4.1 6.2 6.1 3.4 7.5 6.6 4. 1 6.5 9.8 3.6 4.5 3.2 7.9 7.4 4.0 5.3 9.5 3.4 4.8 .1 .8 .3 .5 .1 1.3 .2 1.4 .2 1.0 .4 .5 .1 2.4 .3 .8 .3 .2 .2 .4 .1 1.5 .7 .1 .2 .3 .2 .6 1.1 2.5 .2 .4 .3 .4 .2 .3 .5 .1 .2 .2 .2 3.6 .5 10.2 .2 9.0 .2 6.0 .1 7.1 .1 8.8 .2 5.0 .1 8.6 4.1 10.5 8.5 5.6 8.3 9.3 5.3 8.5 .4 .5 .5 .5 (<) .2 .1 .3 .3 .2 .2 .2 7.6 8.3 6.5 8.1 11.0 J J Sept. Sept. 6.7 6.5 Aug. Aug. Durable goods___________ ___ ______ 6.7 Nondurable goods3.................................. 6.6 Sept. Sept. Group and industry Military and mis Total ac cellaneous cession Manufacturing Iron and steel and their products . . . Blast furnaces, steel works, and rolling mills......... ...........— ........... Gray-iron castings______________ Malleable-iron castings--------------Steel castings---------------------------Cast-iron pipe and fittin g s.-........ . Tin cans and other tinware--------Wire products__________________ Cutlery and edge tools--------------Tools (except edge tools, machine tools, files, and saws)--------------Hardware-____________________ Stoves, oil burners, and heating equipment-------------- -------------Steam and hot-water heating apparatus and steam fittings-------Stamped and enameled ware and galvanizing...................................... Fabricated structural-metal prodnets Bolts, nuts, washers, and rivets.. . Forgings, iron and steel.................... Electrical machinery............................... Electrical equipment for industrial use- -----------------------------Radios, radio equipment, and phonographs-------- --------- -------Communication equipment, except radios-------- -------------------Machinery, except electrical................. Engines and turbines_________ _ Agricultural machinery and tractors__________________ - .......... Machine tools__________________ Machine-tool accessories................. Metalworking machinery and equipment, not elsewhere classifled------- -- ------ - ----------------General industrial machinery, except pumps------------------------Pumps and pumping equipment— S ee fo o tn o te s a t end o f ta b le. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6.6 7.2 5.9 6.7 5.9 6.3 5.1 5.7 8.1 7.8 6.7 6.4 .8 1.0 .5 .3 ,1 .1 10.3 6.4 5.9 5.4 4.5 .5 .6 .4 .5 .1 .3 7.4 8.6 8.9 8.9 7.4 7.7 .6 .6 .6 .4 .3 .2 8.7 10.8 6.6 4.9 4.5 6.2 4.6 5.1 5.1 3.8 3.3 4.9 3.9 3.7 .4 .3 .2 .5 .2 .3 .8 .6 .8 .7 .3 1.0 .3 .2 .2 .1 .2 .1 7.4 5.2 4.9 8.9 4.9 5.2 5.5 5.2 4.4 4.1 .4 .4 .5 .5 .2 ,2 7.0 6.7 3.7 3.6 3.0 2.9 .2 .2 .3 .3 .2 .2 4.8 4.7 6.9 6.8 5.5 5.4 .8 .7 .5 .5 .1 .2 8.9 9.0 4.9 4.2 .6 .9 .4 .2 6.6 5.2 .2 .3 .2 .1 5.7 7.2 5.3 5.8 3.7 3.0 .2 .1 4.8 4.7 4.8 5.3 3.9 3.5 3.8 3.7 .4 .6 .4 .5 .3 .3 .4 1.0 4.8 4.1 4.4 4.7 3.3 4.7 4.1 3.3 3.6 3.9 2.5 3.8 .3 .2 .4 .2 .3 .5 .2 .4 .3 .4 .3 .3 .2 .2 .1 .2 .2 .1 5.2 3.6 5.2 4.7 3.2 5.3 4.8 4.5 4.1 3.7 .4 .4 .2 .3 .1 .1 4.9 4.5 4.8 5.5 5.1 5.2 3.9 4.5 4.1 4.3 .4 .7 .5 .6 .4 .2 .4 .2 .1 .1 .1 .1 5.2 6.1 5.6 6.0 2.—Monthly Labor Turn-Over Rates (Per 100 Employees) in Selected Groups and Industries,1 September 1946 2— Continued Total separa tion Quit Discharge Lay-off ( Sept. 4.1 0.4 4.0 .4 3. C .4 5.0 .6 7.0 6.0 5.5 .6 .5 7.2 6.5 5.7 .6 .5 bi <! 0.5 4.8 .4 1.8 .4 3.1 .8 11.5 4.3 .9 1.9 9.3 0.2 .2 .1 .2 0.2 .1 .1 .1 .6 .8 .2 .2 9.2 8.5 .5 .9 .2 .1 9.5 8.1 Aug. Sept. 4.1 4.7 4.0 4.0 Aug. 9.5 9.1 7.1 5.4 7.6 5.4 16.3 15.2 bi) <1 Sept. bi) 2 Sept. Sept. Group and industry Military and mis Total ac cellaneous cession 7.9 7.9 6.5 8.4 Aug. T able M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 Sept. 1036 Manufacturing—Continued Transportation equipment except automobiles________________________ Aircraft____ ________________ Aircraft parts, including engines. Shipbuilding and repairs. _____ Automobiles...... ..............................■____ 7.4 Motor vehicles, bodies, and trailers__ ___ __ _______________ __ 7.8 Motor-vehicle parts and accessories.____ ___________________ 6.6 Nonferrous metals and their products.. Primary smelting and refining, except aluminum and magnesium ___________ _ _ ________ Rolling and drawing of copper and copper alloys_____________ Lighting equipm ent_____ _____ Nonferrous-metal foundries, except aluminum and magnesium. 5.9 7.4 7.7 5.0 8.1 6.6 4.8 5.0 .6 .6 .9 .7 .3 .3 8.4 9.3 6.3 4.9 4.9 .5 .6 .3 .6 .2 .2 7.0 7.0 4.1 4.9 3.4 3.8 .5 .4 .1 .4 .1 .3 4.7 6.4 4.3 8.3 4.8 7.0 4.0 6.9 3.8 5.8 .2 .5 .3 .4 (4) .8 .6 .7 .1 .1 .1 .1 4.3 9.6 5.6 8.1 5.3 6.3 4.3 4.9 .5 .7 .2 .5 .3 .2 5.9 6.4 Lumber and timber basic products__ 10.1 10.8 Sawmills______________________ 10.3 11.2 Planing and plywood mills______ 6.7 7.7 9.1 9.7 9.4 10.1 5.8 6.8 .4 .4 .3 .5 .5 .4 .4 .2 .5 .5 .5 .4 .2 .3 .1 .1 .1 .1 9.7 9.6 6.6 10.2 10.0 7.9 Furniture and finished lumber products______ ____________ ____ __ 9.5 Furniture, including mattresses, and bedspripgs_______________ 9.5 9.6 8.2 8.4 .7 .7 .4 .4 .2 .1 10.1 10.6 9.8 8.1 8.5 .7 .7 .4 .4 .3 .2 9.9 10.9 Stone, clay, and glass products._____ Glass and glass products________ Cement_________ . . . _______ Brick, tile, and terra cotta______ Pottery and related products____ 6.0 6.0 7.4 6.7 5.3 5.8 5.4 7.1 8.5 5.2 5.1 4.8 6.3 6.0 4.7 4.9 4.3 5.9 7.0 4.5 .4 .4 .6 .5 .2 .5 .5 .6 .9 .5 .3 .5 .3 .1 .3 .2 .3 .1 .5 .1 .2 .3 .2 .1 .1 .2 .3 .5 .1 .1 6.3 6.1 7.1 7.4 5.6 7.0 6.6 8.8 9.4 5.5 Textile-mill products_______________ Cotton________________________ Silk and rayon goods___ ____ ___ Woolen and worsted, except dyeing and finishing. _ ___________ Hosiery, full-fashioned__________ Hosiery, seamless_______________ Knitted underwear_____________ Dyeing and finishing textiles, ineluding woolen and worsted___ 6.1 7.2 5.7 6.4 7.4 5.7 5.5 6.4 5.0 5.6 6.6 5.0 .3 .4 .4 .4 .4 .4 .2 .2 .2 .3 .2 .2 .1 .2 .1 .1 .2 .1 6.6 7.7 6.2 6.8 7.9 6.4 5.0 4.1 5.6 5.7 4.9 4.3 7.1 6.9 4.3 3.7 5.2 5.3 4.1 4.0 6.7 6.2 .4 .3 .2 .3 .4 .2 .2 .4 .2 .1 .1 .1 .2 .1 .1 .2 .1 (4) .1 (4) .2 (4) .1 .1 5.0 4.5 6.7 6.1 5.1 4.1 6.7 7.4 3.7 .6 .6 .3 .2 .4 .2 4.5 5.0 4.8 4.7 3.5 Apparel and other finished textile products_____ _________________ 6.4 M en’s and boys’ suits, coats, and overcoats_________ ________ 3.7 M en’s and boys’ furnishings, work clothing, and allied garm ents... 6.6 7.1 5.9 6.7 .2 .2 .2 .2 .1 (4) 6.8 7.2 4.9 3.3 4.5 .2 .2 .1 .2 .1 (4) 4.4 5.5 7.6 6.3 7.2 .2 .2 .1 .1 (4) .1 7.2 7.3 Leather and leather products________ 5.8 Leather. _ _____________________ 4.6 Boots and shoes________________ 6.0 6.1 4.9 6.3 5.2 3.4 5.5 5.5 3.8 5.8 .2 .1 .2 .2 .2 .2 .3 1.0 .2 .3 .8 .2 .1 .1 .1 .1 .1 .1 5.0 3.1 5.4 5.0 3.4 5.2 Food and kindred products3 ............. . 9.7 8.1 Meat products_____________ . 41.4 15.0 Grain-mill products....... .................. 6.6 8.5 5.9 3.5 5.7 6.0 5.6 6.0 .4 .3 .3 .5 3.3 .6 37.2 .8 .5 1.5 8.5 1.7 .1 .4 .1 .1 9.8 .3 6.2 (4) 10.8 9.2 8.8 7.9 Tobacco manufactures_________ ____ 6.2 7.3 5.3 6.0 .4 .4 .4 .8 .1 .1 7.2 7.7 Paper and allied products__________ Paper and pulp________________ Paper boxes_________ __________ 7.2 7.0 6.2 5.9 9.6 | 9.8 6.3 5.4 8.4 6.1 5.2 8.7 .5 .4 .7 .5 .4 .8 .2 .2 .2 .2 .1 .1 .2 .2 .3 .2 .2 .2 6.7 5.5 9.9 6.9 5.9 9.3 See fo o tn o te s a t end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1037 T R EN D S OF E M P L O Y M E N T AND LABOR T U R N -O V E R T able 2. — Monthly Labor Turn-Over Rates (Per 100 Employees) in Selected Groups and Industries,1 September 1946 2— Continued Total separa tion Quit Discharge Lay-off Military and mis Total ac cellaneous cession 0.3 .3 .3 0.2 .1 .2 0.2 .2 .3 0.2 .1 .3 Sept. 0.3 .4 .2 Sept. 0.3 .1 .2 Aug. 3.0 3.2 2.4 Sept. 3.3 3.2 2.6 Aug. 3.7 3.8 3.1 tub 3 3 << 3.8 3.5 2.8 4.3 4.4 3.3 tub j 4.1 3.8 3.4 bi) < Sept. bh 2 Sept. Sept. 1 Group and industry Manufacturing—Continued Chemicals and allied products---------Paints, varnishes, and colors------Rayon and allied products-------Industrial chemicals, except explosives--------------------------------- 4.4 4.1 3.6 3.2 .4 .4 .2 .3 .2 .2 3.9 5.0 Products of pertroleum and coal------- 2.3 Petroleum refining_____ ________ 2.2 2.3 2.1 1.7 1.6 1.8 1.6 .1 .1 .1 .1 .3 .3 .2 .2 .2 .2 .2 .2 2.3 2.2 2.4 2.2 Rubber products___________________ Rubber tires and inner tubes . . . Rubber footwear and related products_____ ____________ Miscellaneous rubber industries. _ 5.0 3.8 5.1 3.6 4.4 3.3 4.4 3.3 .3 .2 .3 .2 .1 .1 .2 (4) .2 .2 .2 .1 6.1 4.6 5.9 4.8 7.2 6.9 6.7 6.9 6.6 5.9 6.0 5.8 .3 .6 .3 .5 .1 .2 .2 .4 .2 .2 .2 .2 7.7 8.5 7.1 7.4 Miscellaneous industries_______ ____ 5.7 5.1 4.2 3.8 .3 .3 1.0 .8 .2 .2 5.3 5.2 6.5 4.9 7.4 6.4 6.5 3.2 8.7 6.9 5.8 4.2 6.5 6.2 5.2 2.4 7.0 6.0 0.3 .1 .6 .2 0.4 .2 .5 .6 0.1 .2 .1 0) 0.6 .2 1.1 .2 0.3 .4 .2 (4) 0.3 .4 .1 .1 6.2 3.4 8.4 6.1 6.9 3.3 9.1 8.6 Coal m ining:3 Anthracite mining______________ 1.5 Bituminous-coal m ining________ 4.0 1.9 4.0 1.2 3.3 1.4 3.5 .1 .2 .1 .2 .1 .2 .3 .1 .1 .3 .1 .2 2.0 3.5 2.1 4.5 Public utilties: Telephone____ _________ ______ Telegraph----- ------------------ m w m (6) 0>) (6) («) (6) (6) W (8) (8) («) (8) (8) (8) (8) (8) (8) (8) m (6) JSionmanufacturing M etal m in in g :3____________________ Iron ore____ ____ _____ Copper ore_____________________ Lead and zinc ore.--------------- («) w 1 Since January 1943 manufacturing firms reporting labor turn-over have been assigned industry codes on the basis of current products. M ost plants in the employment and pay-roll sample comprising those which were in operation in 1939, are classified according to their major activity at that time, regard less of any subsequent change in major products. s Preliminary. 3 July rates have been revised as follows: Industry group Nondurable goods - . ...................... ....... Food and kindred p ro d u cts_____ _ . __ Total . separa tion 5.6 6.7 Quit 4.7 5.1 D is charge Lay-off M itary and miscel laneous 0.3 .4 0.5 1.1 0.1 .1 Total acces sion 6.8 9.6 4 Less than 0.05. 3 Rates for mining industries are based on reports from 480 establishments employing 218,000 persons. 3 N ot available. 722250— 46-------13 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis m 1038 M O N T H L Y LABOR RE V IE W — D ECEM BER 1 9 4 6 T able 3. —Monthly Labor Turn-Over Rates for Men and Women in A ll Manufacturing and Selected Groups,1 September 1946 2 M en (per 100 men) Quit Total Accession separation Quit Accession 1 j Total separation Women (per 100 women) August September August September August September August September August September August All manufacturing 3__ _____ ________ 6.2 Durable goods__________________ 6.5 Nondurable goods3_____________ 5.8 6.1 6.4 5.5 4.7 5.1 4.1 4.7 5.0 4.3 6.4 6.9 5.5 6.6 7.1 5.8 7.6 7.2 7.7 7.5 7.0 7.6 6.4 5.8 6.6 6.5 5.6 6.9 8.5 8.3 8.5 8.0 7.7 8.1 Iron and steel and their products____ Electrical machinery______ _ _ _ _ _ _ Machinery, except electrical____ _ Transportation equipment, except automobiles______________________ Automobiles_______________________ Nonferrous metals and their products Lumber and timber basic products__ Furniture and finished lumber prod ucts. _ _________________________ Stone, clay, and glass products______ 5.3 3.7 4.6 4.6 3.3 3.6 4.3 2.9 3.6 5.8 5.4 5.4 6. 2 5.5 5.2 7. 2 7.6 5.8 7.0 7.4 5.9 5.8 6.3 4.8 5.6 6.1 4.6 7.3 9.7 6.1 7.3 8.9 5.5 8.6 8.9 6.8 6.6 5.5 5.9 10.3 11.1 4.2 5.4 4.5 9.3 4.2 5.0 4.6 9.9 7.9 7.7 8.3 7.9 6.3 7.0 9.8 10.4 7.0 6.8 7.3 7.7 6.1 6.6 7.6 6. 5 4.4 4.2 6.4 6.7 3.8 4.3 6.1 6.1 6.9 8.2 9.4 7.9 5.9 8.7 7.3 7.8 Textile-mill products_______________ Apparel and other finished textile products_________________________ Leather and leather products_____ _ Food and kindred products 3_____ __ Tobacco manufacturers_____________ Paper and allied products___________ Chemicals and allied products ____ Products of petroleum and coal______ Rubber products___________________ Miscellaneous industries____________ 5.8 4.3 4.6 ____ September Industry group 9.5 5.8 9.6 5.8 8. 2 4.9 8.4 4.8 9.9 10.9 6.0 6.9 9.5 6.5 9.7 6.0 8.1 5.7 8.4 10.8 5.3 7.3 9.4 7.0 5.9 6. 2 5.1 5.1 6.2 6.8 6.4 6.6 5.8 6.1 7.1 6.8 4.0 4.9 8.5 5.7 6.4 3.7 2.2 4.5 5.1 4.2 4.8 7.3 6.2 6.4 3.4 2.0 4.6 4.3 3.5 4.2 4.5 4.3 5.6 3.0 1.6 3.9 3.6 3.6 4.3 5.1 4.4 5.5 2.7 1.6 4.0 3.1 5.1 3.8 7.3 4.9 6.3 3.5 2.1 5.4 4.4 4.8 6.6 7.6 6.1 4.2 7.2 7.7 6.7 7.3 13.4 10.3 10.1 6.8 6.6 8.0 5.8 6.3 9.5 8.7 8.6 4.3 5.5 5.2 4.5 2.3 5.3 6.0 4.1 5.5 6.6 6.2 5.9 4.7 6.8 6.4 5.2 7.3 7.0 7.2 6.8 8.5 17.1 6.9 8.6 8.2 8.3 4.2 4.9 3.8 5.3 5.5 8.1 5.0 6.9 7.5 6.0 14.2 8. 2 8.1 4.4 3.8 7.1 6.1 1 These figures are based on a slightly smaller sample than that for all employees, inasmuch as some firms do not report separate data for women. Rates for August are based on 6,800 reports covering 4,167,000 employees. 2 Preliminary figures. 3 July rates have been revised as follows: Men Industry group All manufacturing_______ ___ Nondurable goods _ __ ____ Food and kindred products ___ https://fraser.stlouisfed.org n Federal Reserve Bank of St. Louis Total separa tion Quit 5. 3 4.1 4.8 5.9 4.3 3. 8 Women Acces sion Total separa tion 7.3 6.4 9.0 6.5 6.7 8.9 Quit 5.6 6.0 7.4 Acces sion 7.3 7.2 11.1 Trends o f Earnings and Hours Summary of Earnings and Hours Data for September 1946 WEEKLY earnings in manufacturing industries, according to pre liminary estimates, averaged $45.68 in October 1946, a level almost $5 above last October but still about $1.50 below the January 1945 wartime peak. The average workweek in October 1946 was about 1 hour below that of last October and about 5 hours below January 1945. Preliminary averages for October 1946 are as follows: Weekly hours Hourly earnings (in cents) _____________ $45. 68 40. 4 113. 0 _____________ _____________ 40. 6 40. 2 120 . 2 105. 5 Weekly earnings All manufacturing. _ Durable goods__ Nondurable goods__ __ 48.83 42. 42 Final September figures in both anthracite and bituminous-coal mining industries indicate that declines in average weekly earnings were largely due to the Labor Day holiday and to the continued critical shortage of railroad cars. In bituminous-coal mining, earn ings declined from $62.37 a week in August to $61.00 in September, while average hours worked per week fell from 42.4 to 41.4. Average weekly earnings in anthracite mining also declined over the month from $60.65 in August to $59.78 in September, reflecting a slight decline in hours. Wage increases and premium overtime work combined to raise average weekly earnings in September above the August level in 17 of the 20 major manufacturing groups, despite plant closings in ob servance of Labor Day. In 8 of the groups a somewhat longer work week was reported in September than in August, reflecting mainly the termination of strikes and the easing of raw material shortages. The automobile, transportation equipment, and food groups were the only major industrial groups failing to show an increase m average weekly earnings over the month. The curtailment of operations in the shipbuilding industry owing to the maritime strike contributed heavily to the decline in earnings in the transportation equipment group. Raw material shortages, the trucking strike, seasonal declines, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1039 1040 M O N T H L Y LABOR R E V IE W — D ECEM BER 1 9 4 6 and the exemption of the canning industry from overtime provisions in September, the month of peak production, combined to keep weekly earnings down in the food group. Weekly earnings averaged above $37 in all maj or manufacturing groups except tobacco, and above $50 in 6 groups. In the tobacco group, weekly earnings in September averaged over $35 for the first time on record. This represents an increase of more than $2 a week over September 1945, when the average workweek was 3 hours longer (or an increase in average hourly earnings amounting to 11 cents over the year). Earnings and Hours in Manufacturing and Nonmanufacturing Industries, September 1946 MANUFACTURING Average weekly earnings 1 Average weekly hours 1 Average hourly earnings 1 Industry group and industry Sept. Aug. July 1946 1946 1946 All manufacturing_________________________ $45. 41 $44.98 $43. 38 Durable goods................ ................................ 48.39 48.00 46.24 42.34 41.89 40. 46 Nondurable goods. ------ . . Sept. Aug. 1946 1946 July Sept. Aug. July 1946 1946 1946 1946 Cents Cents Cents 39.7 112.6 111. 1 109.3 39.3 120.1 118.6 117.7 40.1 104.9 103.6 100.9 40.3 40.3 40.3 40.5 40.5 40.5 49. 31 48.78 46.80 39.7 39.9 38.5 124.2 122.2 121.6 49. 84 50.95 51.28 49. 32 42. 30 45.97 49.37 44.98 47.85 48. 53 49.60 46. 35 41. 55 43.47 49. 61 43. 74 38.0 42.3 40.7 38.3 4u. 8 41.9 41.4 43.0 38.2 41.8 40.7 38.9 40.8 42.6 41.8 43.1 36.4 40.4 40.6 36.7 40.1 40.9 41.9 42.3 47.59 46.91 46.16 45. 26 44.88 44.20 45. 63 46.00 43.98 42.5 41.4 39.4 42.4 41.7 40.2 42.5 112.1 110.6 108.7 41.2 109.5 106.9 106.6 39.0 115.7 113.8 112.8 Durable goods Iron and steel and their products___________ Blast furnaces, steel works, and rolling mills________________________________ Gray-iron and semisteel castings________ Malleable-iron castings_______________ . Steel castings ______________________ . Cast-iron pipe and fittings___________ . Tin cans and other tinware. . . . ____ . W irework__ _______________ _____ _. Cutlery and edge to o ls ____________ ____ Tools (except edge tools, machine tools, files, and saw s)_____________ . . . ____ Hardware_______________ . . . . ... Plumbers’ supplies____________________ Stoves, oil burners, and heating equip ment, not elsewhere classified_________ Steam and hot-water heating apparatus and steam fittings____________________ Stamped and enameled ware and galvan izing________ _________ _____ ____ Fabricated structural and ornamental metalwork.. . ________ ________ _ M etal doors, sash, frames, molding, and trim J.._ . ______ Bolts, nuts, washers, and rivets_____ Forgings, iron and steel____ _______ Screw-machine products and wood screws Steel barrels, kegs, and drums 2______ . Firearms________________ . . . . . 50.28 52. 58 61.50 49.28 43.59 46. 22 50. 30 45. 83 132.5 124.3 126.6 128.6 107.4 111.1 121.3 106.5 130.5 122.0 126.0 126.9 103.6 108.6 118.9 104.3 131. 4 120.3 122.2 126.3 103.5 106.7 118.3 103.2 47.36 47.16 44.68 40.2 40.6 39.6 117.8 116.1 112.9 49.72 47.81 46.28 40.8 40.3 39.5 121.9 118.6 117.2 45. 53 45.53 43.15 39.9 40.5 38.7 114.6 112.5 111.4 48. 71 48. 35 46. 38 40.5 40.5 39.3 120.4 119.3 118.5 51.40 45. 67 53. 52 50. 86 45.46 53.30 50.20 46. 55 53.94 50.86 47.06 49. 86 49. 59 41.59 49. 72 48.69 42.94 51.06 40.5 38.8 39.5 42.0 39.8 42.3 41.2 40.4 40.0 42.8 41.7 40.4 41.3 36.6 37.8 41.5 38.2 41.0 126.9 116. 6 136. 3 120.5 114.3 125.9 121.9 114.3 134.9 118.7 113.0 123.6 120.1 113.0 131.4 117.4 112.5 124.4 Electrical machinery_____ _ _________ Electrical equipment_____________ . Radios and phonographs_______ _ Communication equipment_____________ 48. 45 49. 41 43.11 50.41 47.57 48. 54 41.96 49.88 45.59 46.31 40.40 47.80 40.8 40.5 40.3 42.2 40.5 40.2 39.9 42.2 39.4 38.9 39.1 41.1 118.9 121.9 107.2 119.6 117.3 120.4 105.2 118.3 115.8 118.9 103.4 116.4 Machinery, except electrical________ Machinery and machine-shop products... Engines and turbines______________ Tractors____________ . . . Agricultural machinery, excluding trac tors________________ Machine tools________ . Machine-tool accessories___ Textile machinery______ T y p ew riters_________________ 51.79 51.08 55.26 51.21 51.03 51.06 51.95 51.01 49.76 49.49 52.86 49.73 41.1 41.2 40.5 39.3 40.9 41.6 39.0 39.1 40.4 40.7 40.3 37.9 126.1 124.0 136.5 130.2 124.7 123.1 132.8 130.3 123.2 121.2 131.3 131.1 51.09 54.31 56.28 49.43 47.19 49.20 54.07 54.49 48.28 46.01 48.02 52.44 52.09 47.42 46.49 40.4 42.0 41.5 42.6 41.7 39.9 42.0 40.8 41.9 41.1 39.7 41.3 40.0 41.4 41.7 126.9 129.9 136.0 116.1 113.2 123.8 129.1 134.0 115.2 111.9 121.5 126.9 130.5 114.4 111.6 See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1041 TRENDS OF EARNINGS AND HOURS Earnings and Hours in Manufacturing and Nonmanufacturing Industries, September 1946— Continued MANUFACTURING— Continued Average weekly earnings 1 Average weekly hours 1 Average hourly earnings 1 Sept Aug. July 1946 1946 1946 Sept Aug. July 1946 1946 1946 Industry group and industry Sept Aug. 1946 1946 July 1946 Durable goods—Continued Machinery, expect electrical—Continued Cash registers, adding and calculating ma chines - _ _ ____________ $58. 20 $52.84 Washing machines, wringers and driers, dom estic____________ _____ _ __ _ 47.87 46.30 Sewing machines, domestic and industrial. 51.15 52. 27 Refrigerators and refrigeration equipment. 49.54 48.46 Transportation equipment, except automo biles. __________________________ _____ Locomotives__________________ . _____ Cars, electric- and steam-railroad________ Aircraft and parts, excluding aircraft en gines____ __ __ ___________________ _ _________ ____ Aircraft en gin es____ Shipbuilding and boatbuilding_________ Motorcycles, bicycles, and parts________ $56. 29 42.6 39.9 Cents Cents Cents 41.9 136.9 133.8 134.9 44.99 49. 58 46. 77 41.7 40.4 40.3 41.2 42.1 39.7 40.7 114.7 112.4 110.5 43.1 127.4 124.8 115.6 38.6 122.9 122.2 121.0 52.81 54.18 53.70 58.12 57.48 59.18 49.08 50.23 48.21 39.0 39.6 39.7 40.0 39.8 41.1 39.3 135.5 135.5 136.6 40.5 146.8 144. 5 146.0 39.6 123.4 122.3 121.9 53.51 56. 67 51. 7C 49.65 40.8 41.7 36.2 40.1 41.0 41.4 38.5 40.0 40.0 40.6 38.4 38.2 53.68 56.08 54. 91 48.50 53.01 54. 72 55.20 44. 64 131.3 135.8 143.0 123.8 131.3 135.4 143.1 121.2 132.5 134.8 143.6 116.9 Automobiles______________________________ 53.12 53. 39 51.15 38.7 39.2 37.8 137.4 136.1 135.4 Nonferrous metals and their products_______ Smelting and refining, primary, of nonferrous metals. _ . . _____ ________ Alloying and rolling and drawing of nonferrous metals, except aluminum ............ Clocks and watches _____ Jewelry (precious metals) and jewelers’ findings_____ ____ _________ _____ Silverware and plated ware. Lighting e q u ip m e n t... ______ _ Aluminum manufactures__________ _ 48.68 47. 93 46.68 40.7 40.7 40.0 119.6 117.8 116.6 48.74 47.85 47.42 40.3 40.2 39.9 120.8 118.9 118.9 51.50 50.90 50.34 43.56 42.86 40.44 40.5 40.9 40.4 41.0 40.2 127.5 126.5 125.2 39.8 107.1 104.5 101.7 48.96 55.60 46.18 47.10 44.69 50.29 44.44 45. 98 43.6 45.9 39.3 39.6 42.7 45.2 39.1 39.7 42.0 43.9 38.2 39.1 112.4 121.2 117.8 119.7 109.0 116.8 116.6 117.6 105.7 114.6 116.3 117.6 Lumber and timber basic products_________ Sawmills and logging cam ps.. . . _____ Planing and plywood m ills... . . . . _ . 38. 79 38. 76 35.60 37. 72 37. 70 34.66 41.97 42.17 38.71 41.4 41.1 42.3 41.7 41.4 42.9 39.1 38.9 40.0 93.7 91.7 99.6 92.8 91.1 98.2 91.0 89.2 96.5 Furniture and finished lumber products ____ Furniture___________ _________ ______ Caskets and other morticians’ goods.. . . Wood preserving_______ __________ ___ 40.84 41.58 42. 47 37.99 40.15 40. 85 40.86 36.84 38. 37 38.80 40.23 36.15 41.8 41.6 42.4 41.4 41.9 41.7 42.0 41.4 41.0 97.7 40.6 100.1 41.5 101.1 40.9 92.1 95.7 98.2 97.0 89.4 93.7 95.7 96.4 88.4 Stone, clay, and glass produ cts_____________ Glass and glassware. ___. . . ________ Glass products made from purchased glass. Cement . . . . ______ . . . . _____ Brick, tile, and terra cotta______________ Pottery and related products___ ______ Gypsum. . . . . . ______ _______ Lim e. __________ ______ . . . _________ Marble, granite, slate, and other products. Abrasives _______ _______ ______. . . Asbestos products . __________ ______ 44.15 45. 29 38.86 47. 03 41.47 41.42 50.46 45. 96 42.64 45.38 49. 67 43. 27 43.14 39.46 45.63 40. 67 41.34 50.45 45. 27 43.63 47.02 50.02 41.80 41.87 37.33 44. 66 39.44 38.84 46.40 42.11 42.44 47. 02 48.70 40.6 39.5 40.6 42.9 40.5 38.1 46.6 46.9 41.8 37.9 43.3 40.7 39.4 41.9 42.3 40.0 38.5 47.2 46.6 43.1 40.1 43.9 39.5 38.0 40.4 41.7 39.8 36.5 44.3 44.9 41.9 39.9 42.9 108.8 114.7 93.6 109.7 102.1 108.9 108.4 98.1 102.2 119.7 115.2 106.3 109. 5 91.9 107.9 101.2 107.9 106.9 96.7 100.7 116.7 114.4 105.7 110. 2 90.2 107.2 99.1 106.8 104.8 93.2 100.4 117.9 113.6 37. 53 35.35 38. 33 37.20 36.99 34. 81 38. 67 37.42 34.76 31.64 37. 44 34.94 40.0 39.8 40.5 40.4 40.1 39.8 41.0 41.3 39.6 39.4 41.2 40.7 93.9 88.8 94.7 92.2 92.3 87.5 94.2 90.6 87.7 80.3 90.9 85.8 42. 44 36.60 39. 76 35.84 32. 70 41.88 36. 07 39. 29 34.35 31.79 41.18 33. 47 38. 98 33.73 31.00 41.1 37.7 41.8 38.6 38.1 40.9 38.1 42.2 38.6 38.1 40.5 103.4 102.4 101.7 37.2 97.0 94.3 89.9 42.3 95.1 93.1 92.3 38.6 91.8 88.1 87.0 38.1 85.2 83.0 81.0 40. 72 43.72 53.25 39.47 37.86 40.92 42.10 52.93 38.23 37.17 39. 66 41.03 48. 38 36. 39 34. 43 41. f 41.3 40.9 44.0 41.4 42.1 40.4 39.8 43.4 41.3 41.9 98.3 97.1 94.5 40.0 106.1 104.3 102.7 39.3 131.3 135.4 123.3 42.2 91.2 89.7 87.8 40.2 91.41 90.1 85.6 46.82 52.78 45.63 46. 73 Nondurable goods Textile-mill products and other fiber manu factures. ._ ______________________ ______ Cotton manufactures, except smallwares. _ Cotton smallwares.. _______ _ _______ Silk and rayon goods____ __________ Woolen and worsted manufactures, except dyeing and finishing. ____ ____ . . . _. Hosiery___. . . _____________ _________ Knitted c lo th ... -----------------------------Knitted outerwear and knitted gloves___ Knitted underwear____ _ . . . .. Dyeing and finishing textiles, including woolen and w o rsted ________ ______ Carpets and rugs, wool_____ _ ______ Hats, fur-felt__________________________ Jute goods, except f e lt s ________________ Cordage and twine____ ________________ See footnotes at end of table. 7 2 2 2 5 0 -4 6 - ■14 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1042 M O N T H L Y LABOR R E V IE W ---- D ECEM BER 1 9 4 6 Earnings and Hours in Manufacturing and Nonmanufacturing Industries, September 1946— Continued MANUFACTUREN G— Continued Average weekly earnings 1 Average weekly hours 1 Average hourly earnings ' Industry group and industry Sept. Aug. 1946 1946 July 1946 Sept. Aug. July 1946 1946 1946 Sept. Aug. 1946 1946 July 1946 Nondurable goods—Continued Apparel and other finished textile products.. . M en’s clothing, not elsewhere classified. . . Shirts, collars, and nightwear___________ Underwear and neckwear, men’s________ Work shirts.. ---- -- ------------------------ W omen’s clothing, not elsewhere classified. Corsets and allied garments_____________ M illin e r y ..____ ________________ _____ Handkerchiefs___________ ____________ Curtains, draperies, and bedspreads 2____ Housefurnishings other than curtains, etc. Textile bags----------------- ----------------------- $37.32 $36. 53 $33.83 39.14 38.11 35.84 29. 60 28. 71 27.90 32. 61 31.31 29.90 23. 55 23. 48 22. 30 48.14 47. 54 42. 67 35.09 34.58 33.50 45.75 43.90 42. 65 28.36 28. 61 26.43 28.29 27. 58 27. 64 36.36 35.38 34.12 33.03 31.53 30.06 36.9 37.7 37.2 37.5 34.5 36.1 38.0 33.3 35.0 35.7 38.9 39.7 37.1 37.5 36.9 37.2 35.7 36.6 38.3 33.1 36.4 35.5 38.7 38.7 36.0 36.2 36.1 36.4 34.4 35.4 37.8 32.4 34.7 36.1 38.2 38.0 Cents 101.0 102.7 80.0 87.1 68.2 129.8 92.9 113.1 81.2 80.1 93.6 83.1 Cents Cents 98.5 94.1 100.9 98.5 78.1 76.9 84.2 82.2 65.8 64.8 126.0 118.0 90.7 88.7 109.5 108.0 78.9 76.4 78.4 77.0 91.1 88.9 81.5 79.0 Leather and leather products___________ . . Leather______ _ ----------- --------- -------Boot and shoe cut stock and findings____ Boots and shoes_______________________ Leather gloves and m ittens________ . . Trunks and suitcases_______________ . . . 37.49 44.60 36.06 36. 71 33.68 39.46 36.74 45. 08 37.69 35.17 32. 33 38. 96 36.46 44.08 35.86 35.38 32.14 36. 57 38.2 39.5 38.7 37.8 37.0 39.3 37.8 40.3 40.2 36.9 36.7 39.5 38.2 98.2 97.2 95.4 40.1 112.9 112.0 110.2 39.8 93.5 94.0 90.4 37.8 95.4 94.5 92.7 36.5 91.9 88.3 88.3 37.1 100.4 98.3 98.3 Food_____________ . . . . . . . --------------Slaughtering and meat packing_________ Butter___ ___________________________ Condensed and evaporated m ilk------------Ice cream___________ . . ---------------- . Flour_________________________________ Cereal preparations___________ ______ Baking_______ ______________ ____ ___ Sugar refining, cane______________ _____ Sugar, beet_____________ ______________ Confectionery_____ _________________ Beverages, nonalcoholic__________ _____ M alt liquors___________________ _______ Canning and preserving__________ ____ 43. 56 41.11 41.54 43.95 46.48 52.30 46.85 44.60 37.99 49.24 35.90 39.95 57.45 41.54 44.34 48.37 40. 73 43. 55 45. 71 50.37 46.04 44.63 39.27 40.92 35.03 40. 45 56.36 41.12 43.22 48.05 40. 71 43.48 45. 67 48.63 43.85 43.81 39.97 40. 67 33. 76 40. 52 54. 21 38.89 43.0 35.9 46.3 47.6 46.8 49.2 42.1 44.5 37.9 42.9 39.8 43.8 42.7 43.4 43.7 43.4 46.3 48.0 47.6 49.3 42.4 45.0 39.1 38.3 39.6 44.2 42.5 42.3 43.8 43.0 47.4 48.8 48.3 48.8 41.5 44.8 39.3 37.3 38.6 44.7 42.0 43.2 101.3 114.4 88.9 92.4 95.6 106.4 111.5 100.3 100.1 114.7 86.5 90.3 134.4 96.3 101.5 111.6 88.0 90.8 93.5 102.4 108.9 99.4 100.4 106.8 85.9 91.1 132.4 97.6 98.6 111.5 85.6 89.1 92.3 99.7 105.8 98.0 101.8 109.1 85.4 90.2 129.1 90.4 Tobacco manufactures_____________________ Cigarettes--------- ---------------------------------Cigars ______________________________ Tobacco (chewing and smoking) and snuff. 35.37 39.33 32.84 31.87 34.26 38. 21 31.50 31.28 33.24 36. 66 31.05 29.45 39.3 40. 1 39.0 38.0 38.7 39.1 38.6 37.4 39.1 40.1 38.6 37.1 89.9 98.2 83.9 83.9 88.6 97.8 81. 4 83.7 85.1 91.5 80.3 79.4 Paper and allied products__________________ Paper and pulp________ _____ __________ Envelopes _____________ ____ __________ Paper bags____________________________ Paper boxes____________________ ____ _ 44.47 47.57 41.93 37.89 41.13 44.23 47.56 41.61 37.17 41.07 43.12 46.06 40.61 37.42 39.93 42.9 43.8 42.6 40.9 42.0 43.4 44.4 42.7 40.9 42.6 42.8 103.6 101.9 100.7 43.8 108.6 107.0 105. 3 42.5 97.7 97.5 95.6 41.3 93.1 91.1 91.1 41.9 98.1 96.6 95.3 Printing, publishing, and allied industries___ Newspapers and periodicals_____________ Printing, book and job. . ......... ....... . Lithographing___________________ _____ 54.19 60. 33 51.81 53.89 53.03 58.10 50.93 54.10 51.79 56.62 50.03 51.80 41.2 39.4 42.2 43.0 40.9 38.7 41.9 43.3 40.2 37.9 41.5 41.8 131.7 150.0 123.3 126.1 129.8 147.4 122.0 124.8 128. 7 145.9 121.2 124.1 Chemicals and allied products____________ Paints, varnishes, and colors.......... . Drugs, medicines, and insecticides......... Soap.. _ _____________ ___________ Rayon and allied products__________ Chemicals, not elsewhere classified__ Explosives and safety fuses______ . Ammunition, small-arms________ Cottonseed oil. . . . . . . ...... ........... Fertilizers.. ________ _____ 45.35 46.63 39.08 47.29 43.55 52.61 50.98 44.05 31. 36 35.74 44.94 47.41 38.95 47. 21 42.62 51.81 48.37 39.53 30.97 35.09 44.67 46. 62 38.42 47. 08 41.08 52.09 47.96 42.65 29.65 34.11 40.9 41.4 39.5 40.5 39.3 41.1 41.3 39.1 49.4 42.4 40.8 42.6 40.0 40.7 39.1 41.1 39.1 38.7 47.2 42.1 40.7 42.2 39.7 41.0 38.6 41.5 38.9 38.6 47.0 42.7 110.9 112.5 98.4 116.7 110.7 128.1 123.3 112.7 63.1 84.3 110.1 111. 4 97.7 115.9 108. 9 126. 0 123.7 102.3 65.4 83.4 109.8 110. 9 97.0 114.8 106. 5 125.6 123.3 110.6 63.1 79.8 Products of petroleum and coal____ Petroleum refining_________ Coke and by-products______ Roofing materials______ . 55.20 58. 35 46.63 48.93 54.30 57.10 46.45 49.61 54.19 57. 02 46.65 48.06 40.3 40.2 39.1 43.5 40.3 40.0 39.4 44.5 40.0 39.7 38.9 44.5 136.9 145.3 119.0 112.4 134.7 142.7 117.6 111.4 135.5 143.7 119.5 108.5 See fo o tn o te s a t end o f table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1043 TRENDS OF EARNINGS AND HOURS Earnings and Hours in Manufacturing and Nonmanufacturing Industries September 1945—Continued M ANUFACTURING—Continued Average weekly earnings 1 Average weekly hours 1 Average hourly earnings 1 Industry group and industry Sept. Aug. 1946 1946 July 1946 Sept. Aug. July 1946 1946 1946 Nondurable goods—Continued 39.2 38.0 39.6 40.8 Sept. Aug. 1946 1946 July 1946 Cents 132.0 150.5 108.4 112.7 Cents 129.2 147.2 108.5 110.2 Cents 129.6 147.7 107.8 112.0 $50.60 56.11 42.98 44.93 40.6 39.7 41.6 41.7 39.4 37.3 41.2 41.8 Miscellaneous industries_________ ____ ___ 44.11 43.30 42.42 Instruments (professional and scientific), 50.43 49.74 49.06 and fire control equipment________ Pianos, organs, and parts --------------------- 47.73 46.11 44.04 41.2 41.0 40.5 107.2 105.7 104.8 40.3 42.2 40.2 41.3 39.9 124.3 123.3 122.9 40.6 113.4 112.1 108.6 Rubber products ----------------- -------------------Rubber tires and inner tubes----------------Rubber boots and shoes. --------------------Rubber goods, other___________________ $53.60 59.91 45.10 47.02 $51.04 55.43 44.45 46.85 NONMANUFACTURING Cents Cents Cents Mining: A nthracite------------------------------------------ $59. 78 $60.65 $49.53 37.7 37.9 31.7 158.7 159.8 156.2 Bituminous coal___________ __________ 61.00 62.37 52.27 41.4 42.4 36.0 148.0 146.8 145.7 M etal------------------ ------------------------------- 49. 50 49.59 47.70 40.5 40.9 39.6 122.1 121.2 120.5 Iron. ____________________________ 48. 45 48. 03 48.10 39.8 40.2 40.2 121.9 119.4 119.8 Copper____________________________ 51.09 52.13 50. 47 41.9 42.4 41.2 122.1 123.1 122.5 Lead and zinc.......................................... - 49.60 48. 70 43. 60 40.3 39.9 36.2 122.5 121.9 120.4 47.97 47.04 45.51 46.2 46.5 45.4 104.2 101.5 100.4 Quarrying and nonmetallic_______ ____ Crude-petroleum production------------------ 53.43 53. 35 52.97 40.9 40.9 40.4 130.7 130.4 131.1 Public utilities: 44.10 44.19 44.82 38.5 39.3 39.7 114.8 112.9 113.5 Telephone___ ________________________ Telegraph3_____ . ___________________ 40. 98 41. 31 41.15 44.8 45.4 45.2 91.4 91.0 91.0 Electric light and power________________ 52. 78 52. 27 51.96 41.0 41.6 41.5 129.1 126.0 125.8 Street railways and busses______________ 54. 62 55.35 54.60 47.5 48.6 48.4 111.0 109.9 109.7 Trade: Wholesale ___________ ____ ___________ 49. 54 48.14 48.06 41.8 41.7 41.4 117.9 114.8 115.5 R eta il2. _________________ __________ 33. 76 33.81 33.64 40.9 41.5 41.3 90.6 89.1 88.8 Food- ------------- ------------------------- 39.42 40.22 40. 20 41.1 42.7 42.3 93.7 92.4 92.1 General merchandise----------------------- 28. 57 28.63 28.22 36.7 37.6 37.5 75.6 74.7 74.2 Apparel_____________ . --------------- 35.26 34.93 34.27 37.2 37.5 37.4 95.6 92.7 92.6 Furniture and housefurnishings 2 _ . . 46.59 44. 52 44.86 43.9 43.5 43.8 108.0 104.5 105.8 Automotive. . . . ------------------------- 49.15 47.97 47.36 46.4 46.1 46.1 107.5 105.8 104.6 Lumber and building materials-------- 43.60 42.93 42.32 43.1 43.0 42.7 102.7 101.3 100.1 27.20 27.15 26.63 43.5 43.8 44.0 62.0 61.4 60.2 Hotels (year-round)4---------- ------ ------------Power laundries___________________________ 30. 45 29.97 30. 37 42.9 43.0 43.4 70.8 69.3 69.8 Cleaning and dyeing------------------- ----------- 36. 36 35. 01 35.58 42.9 42.6 43.2 85.0 83.2 82.6 0) _________ 63.50 62.61 64.04 (5) (») (s) (5) Brokerage- __________________ (;) («) 0) (5) (s) 0) Insurance_______________________ _______ 50. 63 49.87 50.76 (») 1 These figures are based on reports from cooperating establishments covering both full- and part-time employees who worked or received pay during any part of 1 pay period ending nearest the 15th of Septem ber 1946, as follows: Manufacturing.—32,000 establishments, 7,121,000 production workers. M ining.—2,600 establishments, 311,000 production workers. Public utilities.—3,000 establishments, 667,000 employees. Wholesale trade—9,000 establishments, 240,000 employees. Retail trade.—28,100 establishments, 720,000 employees. Hotels (year-round).—900 establishments, 78,000 employees. Power laundries and cleaning and dyeing.—1,300 establishments, 62,000 production workers. Brokerage and insurance.—3,400 establishments, 147,000 employees. As not all reporting firms furnish man-hour data, average hours and average hourly earnings for individual industries are based on a slightly smaller sample than are weekly earnings. For manufacturing, mining, power laundries, and cleaning and dyeing industries, the data relate to production workers only. For the remaining industries the data relate to all employees except high-paid executives and officials. D ata for the current and immediately preceding months are subject to revision. 2 Revisions have been made as follows in the data for earlier months: Metal doors, sash, frames, melding, and trim.—December 1945 to $48.19, M ay and June to $45.49 and $47.08. October 1945 through February 1946 to 43.0, 42.9, 43.9, 41.4, and 41.7 hours; 108.1, 108.5,109.7, 107.3, and 104.6 cents. N ew series beginning March 1946; not comparable with previously published data. ' N ew data for March through June are 41.8, 42.3, 40.7, and 41.8 hours; 110.1, 114.6, 111.7, and 112.5 cents. Comparable February data are 40.5 horns and 108.5 cents. Steel barrels, kegs, and drums.—March through June 1946 to $42.47, $45.79, $45.30, and $44.32; 40.3, 41.5, 41.1, and 40.4 hours; M ay and June to 110.1 and 109.8 cents. Curtains, draperies, and bedspreads.—M ay 1946 to 77.7 cents. Retail trade.—June 1946 to $32.93. Furniture and housefurnishings.—June 1946 to $44.33. 8 Excludes messengers, and approximately 6,000 employees of general and divisional headquarters, and of cable companies. 8 Cash payments only; additional value of board, room , and tips not included. { N ot available. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1044 M ONTHLY LABOR REVIEW----DECEMBER 1 9 4 6 Trend of Factory Earnings, 1939 to September 1946 THE average earnings of factory workers are summarized in the accompanying table for selected months from January 1939 to Sep tember 1946.1 The earnings shown in this table are on a gross basis (i. e., before deductions for social security, income taxes, bond purchases, etc.). Weekly earnings in all manufacturing averaged $45.41 in September 1946—95.8 percent above the average in January 1939, 70.5 percent above January 1941, and 16.8 percent above October 1942. Weekly earnings for September 1946 increased 11.1 percent above September 1945. However, average weekly earnings were still below the wartime peak of $47.50 (in January 1945), as a result of shorter working hours and shifts of workers from the high-paid war industries to the lowerpaid consumer-goods industries. Gross hourly earnings in all manufacturing averaged 112.6 cents in September 1946—78.2 percent above the average in January 1939, 64.9 percent above January 1941, and 26.1 percent above October 1942. Straight-time average hourly earnings, as shown in columns 7 to 9, are weighted by man-hours of employment in the major divisions of manufacturing for January 1941. These earnings are estimated to exclude premium pay at time and a half for work in excess of 40 hours. However, the effect of extra pay for work on supplementary shifts and on holidays is included. For all manufacturing, the straight-time average in September 1946 was 109.3 cents per hour; this was 70.5 percent higher than in January 1939, 64.6 percent above January 1941, and 35.4 percent above October 1942. i Compare Trends in Factory Wages, 1939-43, in M onthly Labor Review, November 1943 (p. 869), espe cially table 4 (p. 879). For detailed data regarding weekly earnings, see preceding table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1045 TRENDS OF EARNINGS AND HOURS Earnings of Factory Workers in Selected Months, 1939 to September 1946 Average weekly earnings Average hourly earnings Estimated straight-time average hourly earn ings i weighted by January 1941 employ ment. M onth and year All manu factur ing Dur able goods N on dur able goods All manu factur ing Dur able goods N on dur able goods All manu factur ing Dur able goods N on dur able goods (1) (2) (3) (4) (5) (6) (7) (8) (9) $25.33 27.39 30.48 $21. 57 . 01 22. 75 $0. 632 .655 .683 $0. 696 .717 .749 $0. 583 .598 .610 $0. 641 .652 .664 $0. 702 .708 .722 1939: January_______ _____ $23.19 1940: January____ ______ 24. 56 1941: January____ _____ 26.64 22 .688 $0. 575 .589 .601 .668 1942: January_____________ July________________ October_______ . . . . 33.40 36.43 38.89 38.98 42.51 45.31 26. 97 28.94 30.66 .801 .856 .893 .890 .949 .990 .725 .751 .751 .783 .807 .826 .863 .888 .696 .718 1943: January_____ _____ April____ _______ July________________ October_______ _____ D ecem ber... ________ 40. 62 42.48 42.76 44. 86 44. 58 46.68 48.67 48.76 51.26 50. 50 32.10 33.58 34.01 35.18 35. 61 .919 .944 .963 .988 .995 1.017 1.040 1.060 1.086 1.093 .768 .790 .806 .824 .832 .819 .833 .850 .863 .873 .905 .916 .939 .950 .962 .726 .742 .753 .768 .775 1944: January... _______ . April____ ____ ______ July________________ October.. . _____ ____ December___________ 45.29 45. 55 45. 43 46. 94 47.44 51. 21 51.67 51.07 53.18 53.68 36.03 36.16 37. 05 37. 97 38.39 1.002 1.099 1.013 1.018 1.031 1.040 1.116 1.129 1.140 1.110 .838 .850 .862 .878 .883 .877 .889 .901 .908 .912 .965 .976 .993 .991 .997 .780 .794 .802 .817 .820 1945: January_____ _____ April_______________ July________________ O c to b e r .____ D ecem ber... . ______ 47. 50 47.12 45. 45 40.97 41.21 53. 54 52. 90 50.66 44. 23 44.08 38. 66 38.80 38. 59 37. 76 38. 52 1.046 1.044 1.033 .985 .994 1.144 1.138 1.127 1.063 1.066 .891 .899 .902 .909 .927 .920 .925 .933 .942 .957 1.005 1.007 1.017 1.014 1.028 .827 .836 .842 .863 .880 1946: January____. . . _____ April______ . . . ____ July________________ A ugust2___ ________ September2_________ 41.15 42.88 43. 38 44.98 45.41 43.67 45.71 46.24 48.00 48.39 38. 75 40.13 40.46 41.89 42.34 1.004 1.058 1.093 . I ll 1.126 1.070 1.131 1.177 1.186 .941 .988 1.009 1.036 1.049 .970 1.027 1.067 1.078 1.093 1.037 .895 .946 .970 .994 1.008 1 1 1.201 1.102 1.155 1.154 1.171 The method of estimating straight-time average hourly earnings makes no allowance for special rates of pay for work done on major holidays. Estimates for the months of January, July, September, and N ovem ber, therefore, may not be precisely comparable with those for the other months, in which important holidays are seldom included in the pay periods for which manufacturing establishments report to the Bureau. This characteristic of the data does not appear to invalidate the comparability of the figures for January 1941 with those for the following months. Preliminary. 2 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Recent Publications of Labor Interest December 1946 Cooperative Movement The competition of cooperatives with other forms of business enterprise. First interim report from the Committee on Small Business, House of Repre sentatives, pursuant to H. Res. 64. Washington, 1946. 43 pp., chart. (House report No. 1888, 79th Cong., 2nd sess.; Union calendar No. 550.) 10 cents, Superintendent of Documents, Washington. The Committee concluded that tax-exempt farmer cooperatives have a slight tax advantage in the exemption (from Federal income tax) of reserves and of interest paid by them on capital stock, but that consumers’ cooperatives and nonexempt farmers’ associations have no advantages not available to all types of competitive business; that, since the cooperative serves only as an agent for its members, to whom its income belongs, taxation of its income would “require a drastic change in the basic principles of our revenue laws” ; that “there is sub stantial evidence to show that the cooperative movement operates as a very successful means of combating monopolistic concentrations and, as such, is a very healthy addition to the American economy” ; and that “many of the most vocal opponents of cooperatives are themselves members of cooperatives and their firms engage as members in cooperative enterprises.” The principal recommendations of the Committee are that a single Federal agency be authorized to compile statistics of all types of cooperatives; that the Bureau of Internal Revenue amend its regulations to require cooperatives to issue to each patron evidence of his equity; that farmers’ purchasing cooperatives be restricted to the handling of farm production supplies; that the retention of refunds be limited to a period of 5 years; and that Congress act to provide a basis for establishment, operation, and federation of nonexempt associations. Consumers’ cooperation and free enterprise. By Emory S. Bogardus. {In Sociology and Social Research, Los Angeles, May-June 1946, pp. 391-398. 60 cents.) The thesis of this article is that consumers’ cooperatives are genuine expressions of free enterprise because they develop on the basis of individual initiative and independent of government, they decentralize control, they free groups from “oligarchical tendencies,” they react vigorously against the “enslaving practices” of monopoly, they encourage fair competition, and their goal is the welfare of all classes. Cooperatives. {In Building America, New York, April 1946, pp. 194-223, biblio graphy, charts, illus. 30 cents.) The entire April number of this periodical is devoted to cooperatives. Follow ing a statement of cooperative principles, it gives a history of cooperative develop ment in various countries, including the United States, and describes different types of associations. Organization and management of cooperative and mutual housing associations. Washington, U. S. Bureau of Labor Statistics, 1946. 65 pp. (Bull. No. 858—revision of Bull. No. 608.) 20 cents, Superintendent of Documents, Washington. E ditor ’s N o t e .—Correspondence regarding the publications to which reference is made in this list should be addressed to the respective publishing agencies mentioned. Where data on prices were readily available, they have been shown with the title entries. 1046 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis RECENT PUBLICATIONS OF LABOR INTEREST 1047 Memoria y balance general de la Federación Argentina de Cooperativas de Consumo, ejercicio año 1945. Buenos Aires, 1946. 20 pp. Financial report of the Argentine Federation of Consumers’ Cooperatives for 1945, with summary data for 1932 and 1936-45. Education and Training Counseling techniques in adult education. By Paul E. Klein and Ruth E. Moffitt. New York, McGraw-Hill Book Co., Inc., 1946. 185 pp., bibliography. $2. One chapter is on occupational counseling. Educating for industry: Policies and procedures of a national apprenticeship system. By William F. Patterson and Marion H. Hedges. New York, Prentice-Hall, Inc., 1946. 229 pp., bibliography. $2.50. Points made in this book include management’s stake in apprenticeship as well as that of labor. Methods of establishing an apprenticeship program are outlined. Mission and functions of the Retraining and Reemployment Administration. Wash ington, U. S. Department of Labor, Retraining and Reemployment Adminis tration, 1946. 4 pp. Free. Work experience in secondary education: A study of part-time school and work pro grams. By Harold J. Dillon. New York, National Child Labor Committee, 1946. 96 pp. (Publication No. 394.) Appraisal of programs in which secondary school pupils were released from school part time to take paid employment under a scheme developed and super vised by the schools. Employment and Unemployment Christianity and the economic order, Study No. 8: Employment and unemployment. New York, Federal Council of the Churches of Christ in America, Department of Research and Education, 1946. 8 pp. (Information Service, September 28, 1946, part 2.) Considers various aspects of the problem of maintaining a high level of employ ment. Estimated employment and wages of workers covered by State unemployment insurance laws, July-December 1945. Washington, Federal Security Agency, Social Security Administration, Bureau of Employment Security, 1946. 23 pp., chart; processed. (Supplement to Employment Security Activities, August 1946.) Estimates of total employees in manufacturing industries, California, 1948-46. San Francisco, Department of Industrial Relations, Division of Labor Statistics and Research, 1946. 8 pp.; mimeographed. Trends of employment and wages in the covered industries of Pennsylvania, 1940-44Harrisburg, Department of Labor and Industry, Bureau of Employment and Unemployment Compensation, 1946. 27 pp., charts; mimeographed. (Statistical information bull. No. 52.) Data on employment and pay rolls of all employers (nonagricultural) reporting to the Pennsylvania Bureau of Employment and Unemployment Compensation. One of the tables shows average total wages per worker, by year and quarter, 1940-44. Handicapped Workers E f f ic ie n c y o f th e i m p a i r e d w o r k e r : A r e v ie w o f in f o r m a tio n o n th e e x p e r ie n c e o f e m p lo y e r s o f h a n d ic a p p e d w o r k e r s . Washington, Federal Security Agency, Office of Vocational Rehabilitation, 1946. 12 pp., bibliography. Free. H e a lth a n d e m p lo y m e n t: A s t u d y o f p u b lic a s s is ta n c e c lie n ts [o f th e D e p a r tm e n t o f W e lfa r e , N e w Y o r k C ity ] a tte n d in g o u t- p a tie n t D e p a r tm e n t c lin ic s . By Myra E. Shimberg. New York, National Council on Rehabilitation, 1946. 109 pp., charts, forms. Survey of employability, looking to a more selective program of diagnosis, rehabilitation, and placement. Preponderance of middle-aged and older indi viduals, and cardio-vascular conditions and arthritis as the major physical disabilities which led to unemployment, are significant findings. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1048 M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 P la c in g th e h a n d ic a p p e d — a p o s itiv e , in d i v i d u a l, a n d s p e c ific a p p r o a c h . Hanman. ( I n Industrial Medicine, Chicago, October 1946, pp. By Bert 597-604, bibliography, forms. 75 cents.) The author was identified with the wartime development of selective placement of workers in industry. In this article he presents an advanced personnel tech nique for such placement of the handicapped and the results of its operation. He also compares the performance of a handicapped group with that of an ablebodied group. Substantially the same article was published in National Safety News, October 1946 (pp. 103, 106, et seq.). O p p o r tu n itie s f o r th e d e a f a n d th e h a r d o f h e a r in g th ro u g h v o c a tio n a l r e h a b ilita tio n . Washington, Federal Security Agency, Office of Vocational Rehabilitation, [1946], 12 pp. Free. R e a d ju s tm e n t to c iv ilia n jo b s : R e p o r t o n n e u r o p s y c h ia tr ic p r o b le m s r e la tin g to e m p lo y m e n t i n i n d u s t r y . New York, National Association of Manufacturers, 1945. 22 p p . Prepared by the NAM Medical Advisory Committee’s subcommittee on psychiatry. S e c o n d a n n u a l r e p o r t, O ffice o f V o c a tio n a l R e h a b ilita tio n S e r v ic e f o r th e B lin d , u n d e r th e C o m m is s io n f o r th e B l i n d a n d th e P r e v e n tio n o f B lin d n e s s , [O regon ], f o r th e f is c a l y e a r J u l y 1 , 1 9 j 5 , to J u n e SO, 1 9 f 6 . By Clifford A. Stocker, Director. [Portland?], 1946. 26 pp.; mimeographed. Housing Chicago, National Association of Housing Officials, 1946. 16 pp., charts. $1. An analysis of urban redevelopment laws and a bibliography of housing litera ture are included. H o u s in g p r a c tic e s — w a r a n d p r e w a r : R e v ie w o f d e s ig n a n d c o n s tr u c tio n . Washing ton, U. S. National Housing Agency, 1946. 58 pp. (National housing bull. No. 5.) 15 cents, Superintendent of Documents, Washington. Covers developments in materials and equipment, changes in methods of construction, and related subjects. P u b l i c h o u s in g d e s ig n : A r e v ie w o f e x p e r ie n c e i n lo w - r e n t h o u s in g . Washington, U. S. National Housing Agency, Federal Public Housing Authority, 1946. 294 pp., plans, diagrams, illus. $1.25, Superintendent of Documents, Washington. S u m m a r y o f th e 19J+5 h o u s in g y e a r . P r o d u c tio n i n b u ild in g a n d c iv il e n g in e e r in g : S u p p l e m e n t N o . 1, d e a lin g w ith th e a n a l y s i s o f m a n -h o u r s a n d m a c h in e -h o u r s e x p e n d e d i n th e a d v a n c e p r e p a r a t i o n o f h o u s in g s ite s a n d t e m p o r a r y h o u s in g s ite s [ in G r e a t B r i t a i n ] , London, Ministry of Works, 1946. London. 8 pp., pasters. 9d. net, H. M. Stationery Office, By Francis Violich. Washington, Pan American Union, Division of Labor and Social Information, 1946. 13 pp.; mimeographed. (Housing and Planning, No. 3, October 1946.) V e n e z u e la a tta c k s th e h o u s in g p r o b le m . Income By Horst Mendershausen. New York, National Bureau of Economic Research, Inc., 1946. 168 pp., charts. (Conference on research in income and wealth, Studies in income and wealth, Vol. VII.) $2.50. A study of changes from 1929 to 1933, based largely on the Financial Survey of Urban Housing, a U. S. Civil Works Administration project sponsored by the U. S; Bureau of Foreign and Domestic Commerce. An appendix gives cross classification tables of 1929 and 1933 incomes for identical samples of families in each of 33 cities, showing changes in family income, by income levels. The author concludes that inequalities within the lower income group and between the lower and the upper income groups increased, while inequalities within the upper income group declined. Various inferences as to the significance of such shifts in the distribution of income are drawn in the preface. N a t i o n a l in c o m e a n d e x p e n d itu r e o f th e U n ite d K i n g d o m , 1 9 8 8 - 4 5 . London, H. M. Stationery Office, 1946. 50 pp. (Cmd. 6784.) 9d. net. C h a n g e s i n in c o m e d i s t r i b u ti o n d u r in g th e g r e a t d e p r e s s io n . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1049 RECENT PUBLICATIONS OF LABOR INTEREST Industrial Accidents and Accident Prevention By R. W. Mallick. (I n National Safety News, Chicago, July 1946, pp. 24, 25, et seq., illus. 60 cents.) Emphasizes the importance of adequate space provision in planning buildings and lay-out of operations, among other accident-prevention measures which lie in the field of management. G r o u n d s a f e ty . By Frederick L. Anderson. ( I n Safety Engineering, New York, September 1946, pp. 14-16, 28-30, illus. 25 cents.) Description of the Army Air Forces’ program for ground safety of civilian and military personnel at various installations. This program has resulted in considerable reduction in accidents and fires. A n a tio n a l d i r e c to r y o f s a f e ty f ilm s , 1 9 4 6 —4 7 e d itio n . Chicago, National Safety Council, Inc., [1946?]. 48 pp., illus. 25 cents. Subjects of films listed (with annotations) include industrial, commercial vehicle, public, and home and farm safety, prevention of industrial and other fires, and rehabilitation and training of the handicapped. Are y o u p l a n n i n g a c c id e n ts ? S a f e u s e o f s c a ffo ld s . S a f e o p e r a tio n o f p o w e r s h e a r s . S a f e o p e r a tio n o f f r e ig h t e le v a to r s . Washington, U. S. Department of Labor, Division of Labor Standards, 1946. (Industrial safety charts, series R -T.) Superintendent of Documents, Washington. 5 cents each, S o m e d a ta a b o u t f ir e - fig h tin g f a c i l i t i e s a t m e ta l m in e s i n th e U n ite d S ta te s . Kennedy. By D. O. S a f e sto r a g e , h a n d lin g , a n d u se o f c o m m e r c ia l e x p lo s iv e s i n m e ta l m in e s , n o n m e ta llic m in e s , a n d q u a r r ie s . By D. Harrington and J. H. East, Jr. S o m e s a f e ty p r a c tic e s f o r m e ta l m in e s , n o n m e ta l m in e s {o th e r th a n c o a l) , m ills , m e ta llu r g ic a l p la n ts , a n d q u a r r ie s . Washington, U. S. Department of the Interior, Bureau of Mines, 1946. 9, 30, 56 pp.; mimeographed. (Information circulars Nos. 7374, 7380, 7387.) Free. A m e r i c a n w a r s ta n d a r d s a f e ty c o d e f o r th e i n d u s t r i a l u s e o f X - r a y s , a p p r o v e d A p r i l 1 5 , 1 9 f 6 . New York, American Standards Association, 1946. 54 pp. (Z54.1— 1946.) $1.50. Calls attention to the many elements of safety which must be considered in the design, installation, maintenance, and operation of X-ray equipment, and lists certain minimum precautions for the safety of workers, including permissible exposure. Also presents procedures for proper control and examination of workers. Industrial Hygiene A d is e a s e r e s u ltin g f r o m th e u s e o f p n e u m a tic to o ls. By Frederick { I n Occupational Medicine, Chicago, July 1946, pp. 55-66, M. Peters, M.D. illus. 75 cents.) Medical report on a group of workers who operated a high-speed pneumatic tool in “ burring,” while employed in the production of motors for B-29 bombers. Incidence of disease, symptoms, and results of treatment are shown in the report. Against this type of industrial hazard, the author recommends i eduction in vibra tion to a prescribed standard, limitation of length of usejof tool, and utilization of mechanical devices for holding it. L o b a r p n e u m o n ia i n th e s h ip b u ild in g i n d u s t r y . By Charles M. Grossman. { I n Journal of Industrial Hygiene and Toxicology, Baltimore, September 1946, pp. 233-236, bibliography. Also reprinted.) Review of all lobar pneumonia cases among employees of the Kaiser Vancouver Ship yards admitted to the Medical Service of Northern Permanente Foundation Hospital in the year ended September 1, 1945. The annual frequency rate was 23.6 percent per 1,000, contrasted with 4.8 percent for adult members of the employees’ families. Workers living in the dormitory had more than double the rate of those living with families. Occupationally, frequency was highest among painters and chippers (42.5 and 32.4 percent, respectively). O c c u p a tio n a l d e r m a to s e s . By J. G. Downing, M.D., and S. J. Messina, M.D. { I n New England Journal of Medicine, Boston, September 19, 1946, pp. 416-423; September 26, pp. 472-480, bibliographies. 25 cents each.) Summarizes recent medical experience in this field* https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1050 M ONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 T h e s a f e u s e o f s o lv e n ts f o r s y n th e tic r u b b e r s , By Leonard Greenburg, M.D., and Samuel Moskowitz. ( I n Monthly Review of Division of Industrial Hygiene & Safety Standards, New York State Department of Labor, New York, May 15 and June 1, 1946. 8 pp., bibliography, diagrams, illus.) T h e t o x i c i t y a n d 'p o te n tia l d a n g e r s o f m e th y l b r o m id e w ith s p e c i a l r e fe r e n c e to i t s u s e i n th e c h e m ic a l i n d u s t r y , i n f ir e e x tin g u is h e r s , a n d i n f u m i g a t i o n . By W. F. Von _ Oettingen. Washington, Federal Security Agency, Public Health Service, 1946. 41 pp., bibliography, diagrams. (National Institute of Health Bull. No. 185.) 15 cents, Superintendent of Documents, Washington. Industrial hazards are pointed out and their prevention discussed. Industrial Relations T h e a d m i n i s t r a t i o n , u n d e r c o lle c tiv e b a r g a in in g , o f w e lf a r e p l a n s b a s e d o n e m p lo y e r c o n tr ib u tio n s . By David J. Farber. Washington, U. S. National Wage Stabilization Board, Case Analysis and Program Appraisal Division, Re search and Statistics Branch, 1946. 44 pp.; mimeographed. Free. A r b i t r a t i o n o f la b o r d i s p u t e s . By Clarence M. Updegraff and Whitley P. McCoy. Chicago, Commerce Clearing House, Inc., 1946. 291 pp. $3.75. Includes specimen decisions and awards, specimen contract clauses covering arbitration, and citations to State arbitration statutes. Footnotes give references to court decisions covering topics discussed, and there is a detailed subject index. C o lle c tiv e b a r g a in in g a n d th e s t r i k e l i m i t a t i o n i s s u e , 1 9 8 3 - 4 6 : A r e v ie w o f n a tio n a l la b o r r e la tio n s p o l i c y a n d a b r ie f a n a l y s i s o f p r o p o s e d la b o r r e la tio n s le g is la tio n . By Gustav Peck. Washington, U. S. Library of Congress, Legislative Reference Service, 1946. 39 pp., paster; mimeographed. (Public affairs bull. No. 39.) Available (free) only to libraries. L a b o r a d j u s t m e n t m a c h in e r y . By Herbert R. Northrup. New York and Wash ington, American Enterprise Association, 1946. 51 pp. (National eco nomic problems, No. 417.) 50 cents. In this brief history and analysis of existing and proposed Federal, State, and municipal machinery for the adjustment of labor-management disputes, the author deals primarily with mediation, conciliation, and arbitration procedures. He reviews the organization and operations of railway adjustment machinery, the United States Conciliation Service, and special agencies established during World War I and World War II, and summarizes labor legislation proposed during 1945. W o r k s to p p a g e s c a u s e d b y la b o r - m a n a g e m e n t d i s p u t e s i n 1 9 4 5 . Washington, U. S. Bureau of Labor Statistics, 1946. 41 pp., charts. (Bull. No. 878; reprinted from Monthly Labor Review, May 1946, with additional data.) 10 cents, Superintendent of Documents, Washington. T V A la b o r r e la tio n s : A la b o r a to r y i n d e m o c r a tic h u m a n r e la tio n s . By Max M. Kampelman. ( I n Minnesota Law Review, Minneapolis, April 1946, pp. 332-371, bibliography. $1.) Describes the purposes, formation, and activities of the Tennessee Valley Authority and the gradual formulation of its labor policy. Subjects covered include recruitment of labor, relations with unions, methods of fixing wages, ad justment of grievances, training of workers, apprenticeship, retirement system, and accident-prevention work. L e s c o m m is s io n s p a r i t a i r e s d ’i n d u s t r i e s e n B e lg iq u e . By Albert Delpérée. ( I n Revue du Travail, Ministère du Travail et de la Prévoyance Sociale de Belgique, Brussels, May-June 1946, pp. 408-425.) History of development of joint industrial councils in Belgium, their member ship, powers, and work, 1918-40; their disappearance with the dissolution of free trade unions during the German occupation; and their revival, after the country’s liberation, under the decree-laws of April 14 and June 9, 1945, and the decree of October 15, 1945. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis RECENT PUBLICATIONS OF LABOR INTEREST 1051 International Labor Conditions Montreal, Inter national Labor Office, 1946. Distributed in United States by Washington Branch of I. L. O. Report I, D ir e c to r 's r e p o r t. 113 pp. 60 cents. Report II, C o n s titu tio n a l q u e s tio n s : Part 1, R e p o r ts o f th e C o n fe re n c e d e le g a tio n o n c o n s titu tio n a l q u e s tio n s . 197 pp. $1. Part 2, D r a f t a g r e e m e n t b e tw e e n th e U n ite d N a t i o n s a n d th e I n t e r n a t i o n a l L a b o r O r g a n iz a tio n . 12 pp. 10 cents. Report III, P r o te c tio n o f c h ild r e n a n d y o u n g w o r k e r s . 257 pp. $1.25. Report IV, P r o p o s e d i n te r n a tio n a l la b o r o b lig a tio n s i n r e s p e c t o f n o n - s e lf g o v e r n in g te r r ito r ie s : Part 1, P r e l i m i n a r y r e p o r t. 190 pp. $1. Part 2, F u r th e r r e p o r t. 53 pp. 25 cents. Report V (with supplement and appendix), R e p o r ts o n th e a p p l i c a t i o n o f I n t e r n a t i o n a l L a b o r C o n fe r e n c e , 2 9 th s e s s io n , M o n tr e a l, 1 9 4 6 . C o n v e n tio n s (a r tic le 2 2 o f th e c o n s titu tio n [o f th e I n t e r n a t i o n a l L a b o r O r g a n i z a tio n } ) . 121, 44, 10 pp. $2. The reports listed were prepared for submission to the Conference and deal with the five items on its agenda. ( Labor Legislation General ) A n n u a l d ig e s t o f S ta te a n d F e d e r a l la b o r le g is la tio n e n a c te d A u g u s t 1, 1 9 4 5 , to A u g u s t 1, 1 9 4 6 . Washington, U. S. Department of Labor, Division of Labor Standards, 1946. 32 pp. Documents, Washington. (Bull. No. 84.) 15 cents, Superintendent of By Lawrence H. Chamberlain. New York, Columbia University Press, 1946. 478 pp., bibliography. (Studies in history, economics, and public law, No. 523.) $5. One chapter deals with labor legislation from 1900 to 1938. L a b o r la w s o f th e S t a t e o f O k la h o m a , 1 9 4 6 e d itio n . Oklahoma City, Department of Labor, 1946. 137 pp. C u r r e n t tr e n d s i n la b o r la w i n V i r g i n ia . By John C. Parker, Jr. (I n Virginia Law Review, Charlottesville, August 1946, pp. 1050-1063. $1.) L a b o r le g is la tio n i n C a n a d a i n 1 9 4 5 . Ottawa, Department of Labor, 1946. 121 pp. 25 cents, Edmond Cloutier, Ottawa. Labor legislation enacted in 1946 by the Dominion Parliament, and recent regulations under Dominion and Provincial legislation, were summarized in the September 1946 Labor Gazette of the Department of Labor. T h e P r e s i d e n t, C o n g r e s s , a n d le g is la tio n . Labor Organizations and Their Activities R e p o r t o f th e E x e c u tiv e C o u n c il o f th e A m e r ic a n F e d e r a tio n o f L a b o r to th e s ix ty - f if th c o n v e n tio n , C h ic a g o , III., O c to b e r 7 , 1 9 4 6 . Washington, 1946. 220 pp. Presents statistics on AFL membership, finances, and fraternal benefits, and discusses national and international developments of interest and concern to labor. L a b o r u n io n s a n d m u n i c i p a l e m p lo y e e la w . By Charles S. Rhyne. Washington, National Institute of Municipal Law Officers, 1946. 583 pp. $10. Compilation of court decisions and orders, opinions of city attorneys and State attorneys-general, and other material on relations between municipalities and labor unions with respect to union membership of municipal employees. L e s v u e s é c o n o m iq u e s _ a c tu e lle s d u s y n d ic a lis m e f r a n ç a i s . By Robert Bothereau. ( I n La Revue Économique et Sociale, Paris, August-September 1946, pp. 5-14.) Following a short review of the French General Confederation of Labor s programs from 1914 to the outbreak of World War II, the article gives a brief sum mary of the present-day demands of the Confederation for works committees ( c o m ité s d ’e n tr e p r is e ) in the various enterprises of the national economy, for a Superior Economic Council to advise the Government, etc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1052 MONTHLY LABOR REVIEW— DECEMBER 1 9 4 6 By H. Samuels. London, Stevens & Sons, Ltd., 1946. 96 pp. 2d ed. 6s. Short textbook on British trade-union law as it stands after the repeal of the 1927 Trade Disputes and Trade Unions Act. Deals with union contracts, criminal conspiracy and intimidation, legality of strikes and picketing, property and liabilities of unions, etc. T h e la w o f tr a d e u n io n s . Medical Care M e d ic a l c a r e in s u r a n c e : A s o c ia l in s u r a n c e p r o g r a m f o r p e r s o n a l h e a lth s e r v ic e s . Report from Bureau of Research and Statistics, Social Security Board, to Committee on Education and Labor, U. S. Senate. Washington, 1946. 185 pp. (Senate committee print No. 5, 79th Cong., 2d sess.) Limited free distribution by Bureau of Research and Statistics, Social Security Board, Federal Security Agency, Washington. Comprehensive report covering the objectives, scope, and estimated cost of a coordinated national social-insurance system of medical care, and analyzing such phases as coverage, financing, administration, operation, benefits, and professional services. A preview is given of the system in operation, with respect to various interested groups. Alternate plans are suggested and practical experience is summarized. N a t i o n a l h e a lth p r o g r a m . Hearings, April-July 1946, before Committee on Education and Labor, U. S. Senate, 79th Congress, 2d session, on S. 1606, a bill to provide for a national health program. Washington, U. S. Govern ment Printing Office, 1946. 5 parts, 3086 pp. $1 each, except part 3, $1.25. F r e e m e d ic a l c a re . Compiled by Clarence A. Peters. New York, H. W. Wilson Co., 1946. 378 pp. (Reference shelf, Vol. 19, No. 3.) $1.25. Debate handbook on adequate medical care for the Nation, consisting of quoted material, briefs, and an extensive bibliography. Occupations A b ib lio g r a p h y o f o c c u p a tio n a l a n d e d u c a tio n a l m a te r ia ls u s e d i n th e E d u c a tio n a l S e r v ic e s c o u n s e lin g p r o g r a m . Washington, U. S. Bureau of Naval Personnel, Educational Services Section, [1946?]. 27 pp.; processed. o u tlo o k in f o r m a tio n . Washington, U. S. Department of Labor, Retraining and Reemployment Administration, 1946. 6 pp. Free. List of occupational outlook materials issued by the Federal Government. G e t t h e jo b ! By Willard Abraham. Chicago, Science Research Associates, 1946. 198 pp., chart. Suggestions on how to choose, get, and advance on a job, and related information. H o w to g et th e j o b y o u f i t. By Ernst F. Curtz. New York, Franklin Watts, Inc., 1946. 64 pp., diagrams. $1. O p p o r tu n i t i e s i n r a d io . By Jo Ranson and Richard Pack. New York, Voca tional Guidance Manuals, Inc., 1946. 104 pp., bibliography. Occupational fields covered by other volumes in this series include acting, architecture, free-lance writing, journalism, and public relations. O c c u p a tio n a l Old-Age Adjustment and Retirement By Clare de Gruchy. San Francisco, Old Age Counselling Center, 1946. 143 pp., illus. $2.75. Presentation of case histories and projects illustrating the application and effectiveness of the principles and procedures of the Old Age Counselling Center, of which the author is the director. C r e a tiv e o ld a g e . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis RECENT PUBLICATIONS OF LABOR INTEREST 1053 New York, Bankers Trust Co., 1946. 59 pp. Tabular summary of provisions of individual company pension plans as to eligibility, employee contributions, benefits, methods of funding, etc. R a i l r o a d R e tir e m e n t B o a r d o p e r a tio n s , 1 9 4 5 - 4 6 . ( I n Monthly Review U S Railroad Retirement Board, Chicago, August 1946, pp. 130-156 map charts.) ’ Includes data, for 1945-46 and certain earlier periods, on operation of the respective systems of unemployment insurance, employment service, and retire ment, and on wage and service records, and selected current statistics of the Board’s operations in June 1946. 1 8 8 r e tir e m e n t p l a n s , 1 9 4 4 ~ 4 6 . T r u s t f u n d s o f th e F e d e r a l R e s e r v e a n d T e n n e s s e e V a l l e y A u t h o r i t y r e tir e m e n t s y s te m s . ( I n Social Security Bulletin, Federal Security Agency Social Security Board, Washington, July 1946, pp. 49-54. 15 cents, Superintendent of Documents, Washington.) Gives information on income and types of investments for 1935, 1940, and 1945. Both employers and employees contribute to the funds. Population P o p u l a t i o n — in t e r n a l m ig r a tio n , 1 9 3 5 to 1 9 4 0 : A g e o f m ig r a n ts . C o lo r a n d se x o f m ig r a n ts . E c o n o m ic c h a r a c te r is tic s o f m ig r a n ts . S o c ia l c h a r a c te r is tic s o f m ig r a n ts . Washington, U. S. Department of Commerce, Bureau of the Census, 1943 (Color and sex of migrants) and 1946. 382, 490, 223, 270 pp. (Sixteenth census of the United States, 1940.) $1.25, $2.25, 60 cents, $1, respectively, Superintendent of Documents, Washington. E c o n o m ic d e m o g r a p h y o f e a s te r n a n d s o u th e r n E u r o p e . By Wilbert E. Moore. Geneva, League of Nations, 1945. 299 pp., bibliography, maps, charts. $3, Columbia University Press, New York. Prepared for League of Nations by Office of Population Research, Princeton University, in execution of a program drawn up before the war by a committee appointed by the Council of the League to study, in their economic, financial, and social settings, problems arising from rapidly increasing populations. Abundant prewar statistical data are presented and discussed. E u r o p e a n p o p u l a t i o n tr a n s f e r s , 1 9 3 9 - 4 5 . By Joseph B. Schechtman. New York, Oxford University Press, 1946. 532 pp., bibliography, map. $5. Factual account of the organized removal of minority groups from their coun tries of residence during World War II, and their subsequent resettlement. The author suggests population transfers as a solution of the problems of minorities for which no other satisfactory solution can be found. V ie i l l i s s e m e n t d e la p o p u l a t i o n , r e tr a ite s , et im m i g r a t i o n . Bv Paul Vincent. ( I n Population, revue trimestrielle de l’Institut National d’Etudes Démographi ques, Paris, April-June 1946, pp. 213-244., charts.) Survey of the present and possible future age structure of the French population and its relation to retirement in France and certain other countries. Includes an examination of the advantages of immigration as a compensation for decline of the population in certain age groups and a help in reconstructing the war-damaged French economy and regaining prewar living standards. T h e p r o b le m o f I t a l y — a n e c o n o m ic s u r v e y . By Ivor Thomas. London, George Routledge & Sons, Ltd., 1946. 96 pp. 5s. Brief summary of Italy’s overpopulation in relation to her resources, with sug gestions for building a prosperous Italy by relieving'the pressure of population and developing resources and industry. Contains 30 statistical tables, illustrating and forcasting the demographic problem and showing the occupational distribu tion of the population. F o lk m a n g d e n in o m a d m in is tr a te om rdden , [ S w e d e n ], den 31 decem ber 1945. Stockholm, Statistiska Centralbyrân, 1946. 46 pp. One of the statistical tables in this report on the population of Sweden at the end of December 1945 shows migration to, from, and within the country. A translation of the table of contents and a brief résumé in French are provided. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1054 MONTHLY LABOR REVIEW----DECEMBER 1 9 4 6 Price Control p r ic e r e g u la tio n . Washington, U. S. Bureau of Labor Statistics, 1946. 57 pp., bibliography. (Bull. No. 879.) 15 cents, Super intendent of Documents, Washington. R e fle c tio n s o n p r ic e c o n tr o l. By John Kenneth Galbraith. (I n Quarterly Journal of Economics, Cambridge, Mass., August 1946, pp. 475-489. $1.25.) Discusses the causes of the greater degree of efficiency of emergency price controls than economists generally had expected. T h e g e n e r a l m a x im u m Recreation By Earl L. Ferris and Floyd R. Eastwood. Lafay ette, Ind., Purdue University, 1945. 48 pp., bibliography, illus. Summary of data furnished by 61 companies employing a total of 248,055 workers. R e c r e a tio n f o r i n d u s t r i a l w o r k e r s . New York, National Recreation Association, 1945. 48 pp., bibliography, charts. Rev. ed. 50 cents. Simple guide for plant and related activities. I n d u s t r i a l r e c r e a tio n f a c i l i t i e s . Veterans’ Affairs T w e lf th a n n u a l n a tio n a l c o n fe re n c e o f v e te r a n s ’ e m p lo y m e n t r e p r e s e n ta tiv e s , S t. L o u is , M o ., M a y 1 1 - 1 5 , 1 9 4 6 . Washington, U. S. Department of Labor, Employ ment Service, Veterans’ Employment Service, 1946. 310 pp.; processed. Free. V e te r a n s ’ r ig h ts u n d e r u d o n a g r e e m e n ts . Washington, U. S. Bureau of Labor Statistics, October 1946. 12 pp.; mimeographed. Free. W a r v e te r a n s i n c iv il l if e . By Kendrick Lee. Washington, Editorial Research Reports, 1205-19th Street NW., 1946. 14 pp. (Vol. II, 1946, No. 3.) $1. Deals with special problems that the war veterans have in readjusting to civilian life. Attention is directed to lack of housing and educational facilities. O p p o r tu n i t y u n l i m i t e d : A g u id e f o r v e te r a n s in te r e s te d i n th e c o n s tr u c tio n i n d u s t r y By Van Rensselaer Sill. Issued by Committee on Opportunities for Veterans in the Construction Industry. Washington, E. Lawrence Chandler (secretary to committee), 1026-17th Street NW., 1946. 55 pp. 10 cents. O n -th e -jo b t r a i n i n g f o r v e te r a n s i n r e t a il s e r v ic e tr a d e s . Prepared by Chicago Retail Merchants Association. Washington, American Retail Federation, 1946. 79 pp. Wages and Hours of Labor Washington, U. S. Bureau of Labor Statistics, 1946. 18 pp. (Bull. No. 883; reprinted from Monthly Labor Review, July and August 1946.) 10 cents, Superintendent of Documents, Washington. F a c to r s a ffe c tin g e a r n in g s i n c h e m is tr y a n d c h e m ic a l e n g in e e r in g . Washington, U. S. Bureau of Labor Statistics, 1946. 22 pp., charts. (Bull. No. 881; reprinted from Monthly Labor Review, June 1946, with additional data.) 10 cents, Superintendent of Documents, Washington. W a g e a n d h o u r m a n u a l — la w s , r u lin g s , i n te r p r e ta tio n s i n w a g e -h o u r r e g u la tio n : A W a r t i m e w a g e s , in c o m e , a n d w a g e r e g u la tio n i n a g r ic u ltu r e . c o m p le te h a n d b o o k a n d g u id e to F e d e r a l r e g u la tio n o f w a g e s , h o u r s , a n d c h ild la b o r , 1 9 4 6 e d i t i o n ( c o v e r in g p e r io d b e tw e e n N o v e m b e r 1 , 1 9 4 5 , a n d J u l y 1 , 1 9 4 6 ) . The Washington, Bureau of National Affairs, 1946. 408 pp. $4. Supplement to 1944-45 edition, cumulated to November 1, 1945 ($10). w a g e -c o s t-p r ic e d ile m m a . { I n Conference Board Business Record, National Industrial Conference Board, Inc., New York, September 1946, pp. 343-366.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis RECENT PUBLICATIONS OF LABOR INTEREST 1055 By Bichard A. Lester. ( I n Review of Economic Statistics, Cambridge, Mass., August 1946, pp. 152-159.) The author states that, contrary to conventional wage theory, one of the most significant facts about wage rates is their variation for the same job in the same labor market. The evidence presented is largely from Bureau of Labor Statistics occupational wage-rate data. In his analysis of the theoretical implications, the author suggests various causes of wage diversity and states that “new and broader approaches are needed to develop adequate explanations of wage rates actually being paid. W a g e d i v e r s i t y a n d i t s th e o r e tic a l i m p l i c a t i o n s . London, Ministry of Labour and National Service, 1946. 133 pp. 2s. net, H. M. Stationery Office, London. Minimum time rates in Great Britain, fixed by collective agreements, joint industrial councils, or statutory orders under various wage acts are set forth in tabular form for occupations and industries within principal industry groups in manufacturing, agriculture, mining and quarrying, building, transport, public utilities, distributive trades, national and local governments, and miscellaneous industries and services. Industries covered by the Wages Councils Act are tabu lated separately. Hours of labor in a full week, generally exclusive of mealtimes are given. Other provisions listed include the time-rate basis for piece work’ guaranteed weekly wages, arrangements for shift work, and other special features! T im e r a te s o f w a g e s a n d h o u r s o f la b o u r , A u g u s t 1 , 1 9 4 6 . T w e n ty - s e v e n th report o f th e D e p a r tm e n t o f L a b o r , P r o v in c e o f O n ta r io 1946 Toronto, 1946. 63 pp. ’ ’ The report of the Minimum Wage Branch shows the average number of hours worked (normally) per week by male and female employees, and hourly or weekly wage rates for women and for girls, by industry. Women in Industry W o m e n i n f a c to r ie s , O c to b e r 1 9 8 9 —J u n e 1 9 4 6 : E s t i m a te d n u m b e r o f w o m e n p r o d u c tio n w o r k e r s e m p lo y e d i n m a n u f a c tu r in g in d u s t r i e s . Washington U. S. Bureau of Labor Statistics, 1946. 16 pp.; mimeographed. Free. By Anna M. Baetjer. Philadel phia, W. B. Saunders Co., 1946. 344 pp., bibliographies, charts. $4. Presents basic information on proper employment and work environment for women, with relation to their physiological processes. Originating in the warproduction needs of Army plants, and prepared in the Army Industrial Hygiene Laboratory, the volume reviews and evaluates important published and unpub lished studies bearing on women in industry and prescribes correct industrial practice. Section I is devoted to an analysis of the physical ability of women to work, suitable types and arrangements of work, and personnel and plant policies in employment of women. Succeeding sections deal, respectively, with sickness absenteeism, accidental injuries, occupational diseases, gynecological and obstetri cal problems associated with employment, and mortality and fertility in relation to occupation. W o m e n i n i n d u s t r y , th e ir h e a lth a n d e ffic ie n c y . W^omen w o r k e r s i n te n w a r p r o d u c tio n a r e a s a n d th e ir p o s tw a r e m p lo y m e n t p la n s . Washington, U. S. Department of Labor, Women’s Bureau, 1946. 56 pp! (Bull. No. 209.) 15 cents, Superintendent of Documents, Washington. A n a l y s i s o f S ta te m in im u m - w a g e o r d e r s (e ffe c tiv e d a te s M a y 6 , 1 9 4 6 - O c to b e r 2 3 1 9 4 6 ). Washington, U. S. Department of Labor, Women’s Bureau, 1946’ 11 pp.; mimeographed. (Supplement No. 3 to Bull. No. 191.) Free. C o s t o f l i v i n g f o r w o m e n w o r k e r s a t a d e q u a te m a in te n a n c e a n d p r o te c tio n o f h e a lth , N e w Y o r k S ta te , 1 9 4 5 . New York, State Department of Labor, Division of Industrial Relations, Women in Industry, and Minimum Wage, 1946. 30 pp., map, chart; processed. W o m e n a n d w o r k . By Gertrude Williams. London, Nicholson & Watson, 1945. 128 pp., bibliography, charts, illus. 5s. net. This popular presentation gives a historical account of the development of women s employment outside the home in Great Britain, and discusses economic and social factors affecting women’s work and also differences between the earnings and union membership of women and those of men. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1056 MONTHLY LABOR REVIEW----DECEMBER 1 9 4 6 General Reports {I n Fortune, New York, November 1946, pp. 121-126, et seq. $1.) The article listed is one in a symposium on “Labor in U. S. industry” comprising this issue of Fortune. Other articles include: Anatomy of the labor force; Labor drives South (dealing with AFL and CIO organizational drives in the South) ; United Steelworkers of America; The Garment Workers (International Ladies’ Garment Workers’ Union). T h e la b o r s it u a t i o n . A n n u a l r e p o r t o f th e D e p a r tm e n t o f L a b o r a n d I n d u s t r i a l R e la tio n s , T e r r i to r y o f H a w a i i , J u l y 1 , 1 9 4 5 , to J u n e 8 0 , 1 9 4 6 . Honolulu, 1946. 51 pp., charts. Contains the annual reports of the different branches of the Department, including the Bureaus of Workmen’s Compensation, Unemployment Compensa tion, Labor Law Enforcement (Wage and Hour and Child Labor Divisions), and Research and Statistics, and the Territorial Apprenticeship Council. [ M e m o r a n d u m o n c o st o f liv in g , f o o d d i s t r i b u ti o n a n d s u p p l y , w a g e s , h o u s in g , la b o r o r g a n iz a tio n s , a n d s t r ik e s i n se v e n L a t i n A m e r i c a n c o u n tr ie s .] By Ernesto Galarza, Washington, Pan American Union, Division of Labor and Social Information, 1946. 51 pp.; mimeographed. B u l l e t i n d e l ’I n s t i t u t d e R e c h e rc h e s É c o n o m iq u e s et S o c ia le s , X I I e a n n é e , N o . 1. Louvain, Université Catholique de Louvain, Institut de Recherches Éco nomiques et Sociales, January 1946. 126 pp., charts. Yearly subscription, 200 francs. With this number the B u lle tin d e l ’I n s t i t u t d e R e c h e rc h e s É c o n o m iq u e s e t S o c ia le s succeeds the B u l l e t i n d e l ’I n s t i t u t d e R e c h e rc h e s É c o n o m iq u e s , publication of which was suspended on the German invasion of Belgium. The issue contains three studies: D ’une politique du volume de l’emploi en Belgique; Emploi et revenus en économie ouverte: théorie et application à l’évolution belge et britannique de 1919 à 1939; Introduction aux chroniques de la conjoncture économique de la Belgique (which will again become a regular feature). More than 30 pages of the second study are on wage changes. L a m a i n - d ’œ u vre b elg e a u s e r v ic e d e s a r m é e s a llié e s — a p e r ç u g é n é r a l d e s c o n d itio n s d e t r a v a il. By Aug. De Block. { I n Revue du Travail, Ministère du Travail et de la Prévoyance Sociale de Belgique, Brussels, March-April 1946, pp. 255-272.) Survey of the policies followed in the use of Belgian workers by the Allied armies in Belgium, covering, particularly, problems of administration, wage scales and wage payments, and application of laws on hours of work and social security. E s q u is s e d e l ’é c o n o m ie f r a n ç a i s e s o u s l ’o c c u p a tio n a lle m a n d e . By Louis Baudin. Paris, Librairie de Médicis, 1945. 222 pp., bibliography. 120 fr. Sketch of economic conditions in France during* the German occupation, written mainly at the request of foreign readers. Covers the dissolution of the labor and employer organizations, the creation (August 16, 1940) and develop ment of the Vichy Government Organization Committees, the labor charter (law of October 4, 1941), employment, rationing, the black market, price control, prices, and wages. W a r t i m e la b o r c o n d itio n s a n d r e c o n s tr u c tio n p l a n n i n g i n I n d i a . Montreal, Inter national Labor Office, 1946. 113 pp. (Studies and reports, new series, No. 2.) 50 cents. Distributed in United States by Washington Branch of I. L. O. T h e S o v ie t G o v e r n m e n t o r g a n iz e s f o r r e c o n s tr u c tio n . By John N. Hazard. { I n Journal of Politics, Gainesville, Fla., August 1946, pp. 248-277.) Among the topics discussed are demobilization (including reemployment rights and other benefits for veterans), amnesty to violators of the wartime strict dis ciplinary labor decree, restoration of vacation rights, the program of special bene fits to encourage increase in size of families, and rewards to those who serve the State well. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis U. S. GOVERNMENT PRINTING OFFICE: 1946