Full text of Monthly Labor Review : October 1944, Vol. 59, No. 4
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REHABILITATION
BUND HAND PUNCH OPERATOR
In this Issue
. . Impaired workers in industry . . War
tim e wages . . Labor co n d itio n s in
France . . Earnings in brass industry.
UNITED STATES DEPARTMENT OF LABOR • BUREAU OF LABOR STATISTICS
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UNITED STATES DEPARTMENT OF LABOR
F rances P erkins, Secretary
♦
BUREAU OF LABOR STATISTICS
I sador Lubin , Commissioner (on leave)
A. F. H inrichs, Acting Commissioner
H ugh B. K il l o u g h , Acting Chief,
Employment and Occupational Out
look Branch
H e n r y J. F it z g e r a l d , Chief, Business
Management Branch
H ugh S. H anna, Chief, Editorial and
Research
A byness J oy W ickens, Chief, Prices
and Cost of Living Branch
N. A rnoi.d T ollés, Chief, Working
Conditions and Industrial Relations
Branch
S idney W. Wilcox, Chief Statistician
DIVISIONS
Construction and Public Employment,
Herman B. Byer
Industrial Relations, Florence Peter
son
Consumers’ Prices, Ethel D. Hoover
Labor Information Service, Boris Stern
Cost of Living, Faith M. Williams
Machine Tabulation, Joseph Drager
Employment Statistics,
Sturges (acting chief)
Occupational Outlook, Charles Stewart
Alexander
General Price Research, Walter G.
Keim
Post-War Labor Problems, John H. G,
Pierson
Industrial Hazards, Max D. Kossoris
Productivity and Technological De
velopment, W. Duane Evans
Industrial Prices, Jesse M. Cutts
Wage Analysis, Robert J. Myers
Copies of Bureau of Labor Statistics publications and further information may
be obtained from the several field offices, a list of which appears on the inside
back cover of this issue. The services of the Bureau’s Regional Directors and
their technical staffs are available to labor organizations, management, and the
general public for consultation on matters with which the Bureau deals, as, for
example, employment, prices, wages, absenteeism, labor turnover, and industrial
accidents.
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•BUREAU OF LABOR
HANNA,
CONTENTS
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STATISTICS
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OCTOBER 1944, Vol. 59, No. 4
Special articles:
Page
Im paired workers in industry________________________________ ____
W artim e wage movements and urban wage-rate changes-----------------Labor conditions in F rance______________________________________
677
684
705
Employment and labor conditions:
S tate distribution of employment in Federal agencies, June 1944-----Effects of long working hours: Summary of 12 plant surveys-----------Em ploym ent changes in M assachusetts in relation to the post-war
situation_____________________________________________________
Feeding of war workers on the job________________________________
Occupational distribution of population of El Salvador, 1941----------Em ploym ent in H aiti, 1943______________________________________
728
737
740
746
746
747
Wartime policies:
Em ploym ent ceilings and manpower priorities-------------------------------Measures for control of textile industry in B razil__________________
749
752
Post-war reconstruction:
Post-war planning in A ustralia___________________________________
754
Discharged soldiers:
W age-adjustm ent rulings relating to veterans--------------------------------Protection of veterans in A ustralia------------------------------------------------
759
759
Productivity of labor and industry:
Production in Federal prison industries in 1943-----------------------------Hours of work and productivity in British war factories____________
Productivity in the British coal-mining industry ----------------------------
764
765
767
Social security:
Recent developments in company pension plans----------------------------Operation of Canadian Unemployment Insurance Fund, 1942-43—
British Unemployment Insurance Fund in 1943------------------------------
769
773
774
Cooperation:
Operations of consumers’ cooperatives in 1943-------------------------------Activities of credit unions in 1943-------------------------------------------------
777
778
Labor organizations:
International Typographical Union convention, 1944----------------------
782
Industrial relations:
Seniority in the Akron rubber industry------------------------------------------Compulsory arbitration of labor disputes tem porarily decreed in
Colombia____________________________________________________
788
796
Industrial disputes:
Strikes in August 1944----------------------------------------------------------------
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x
797
II
Contents
Labor laws and decisions:
Recent decisions of interest to labor______________________________
Decisions of Brazilian labor court, 1943___________________________
Labor inspection and labor court decisions in Chile, 1943____________
Egyptian law on labor contracts__________________________________
Page
800
808
809
810
Housing conditions:
New dwelling units in nonfarm areas, first 6 months of 1944________
812
Education and training:
Vocational training, 1940-44_____________________________________
Fellowships for citizens from other American countries_____________
818
822
Wage and hour statistics:
W artim e wage movements and urban wage-rate changes___________
Earnings in cotton-goods m anufacture during the w ar years________
Wages in the Connecticut Valley brass industry, April 1943 ________
T rend of factory earnings, 1939 to July 1944_____________________
Farm income and wages, by region and size of enterprise, 1939_____
684
823
836
842
843
Wage and hour regulation:
Certain absences excusable in computing premium p ay _____________
Wage increase for Canadian railroad workers______________________
Minimum wages for construction workers in C uba_________________
Wage rates and hours under British trade-board system ____________
847
847
848
848
Cost of living and retail prices:
Cost of living in large cities, August 1944_________________________
R etail prices of food in August 1944______________________________
Consumption expenditures, 1929-43______________________________
Cost of living a t a subsistence level_______________________________
851
854
857
859
Wholesale prices:
Wholesale prices in August 1944_________________________________
862
Labor turnover:
Labor turnover in m anufacturing, mining, and public utilities, July
1944------------------------------------------------------------------------------------
867
Building operations:
Building construction in urban areas, August 1944_________________
872
Trend of employment, earnings, and hours:
Summary of reports for August 1944______________________________
Industrial and business em ploym ent__________________________
Public em ploym ent_________________________________________
D etailed reports for industrial and business employment, July 1944:
E stim ates of nonagricultural em ploym ent_____ ________________
Industrial and business em ploym ent__________________________
Indexes of em ployment and pay rolls. ____________________
Average earnings and hours_____________________________
Civlian labor force, August 1944_________________________________
875
875
876
879
879
880
889
893
Labor conditions in Latin America.......... .. 746, 747, 752, 796, 808, 809, 848
Recent publications of labor interest_________________________________ 894
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This Issue in Brief
Impaired workers in industry.
When physically impaired workers have been properly placed in work suited
to their abilities, they are just as efficient as unimpaired workers, and are generally
superior in respect to absenteeism, injury frequency, and labor turnover. This
was the consensus among 300 employers of handicapped workers, recently report
ing to the Bureau of Labor Statistics. The chief problem raised in respect to
the industrial utilization of workers w ith physical impairments was the lack of
freedom in transferring them from one job to another in accordance w ith plant
needs. Page 677.
Wartime wage movements and urban wage-rate changes.
Wage stabilization has become increasingly effective during the war period.
In the first year after the President’s “ hold-the-line” order of April 1943, wage
rates in urban m anufacturing industry increased by only 5.8 percent. A com
paratively small p art of this increase was due to general wage-rate increases
which affected as m any as 10 percent of the workers in any one plant. In the
6 m onths prior to April 1944, urban m anufacturing wage rates increased by only
1.9 percent, or by 0.3 percent per month. Before wage stabilization, from Jan u
ary 1941 to October 1942, the average m onthly rate of increase was 0.8 percent.
Wage rates in nonm anufacturing were generally lower than those in m anufacturing
and rose somewhat further (9.4 percent) during the year following April 1943.
Page 684.
Labor conditions in France.
France had a comprehensive code of labor legislation which had been built up
largely since the last war, and several reforms (including the 40-hour week) for
which French labor had been pressing were put into effect by the Popular Front
Government in 1936. The approach of war in 1938 and 1939, however, necessi
ta te d more rigorous labor controls and hours were greatly increased, first in the
industries directly concerned with the war effort and later in all industries.
Although France had highly developed m anufacturing industries, more people
were employed in forestry and agriculture than in manufacturing. Also, an
unusually high proportion of the gainfully employed population were managers
and employers and persons working alone, indicating the importance of smallscale industry and independent work in France. Many changes in the labor
legislation were made by the German occupying authorities during the war,
although the comprehensive social insurance system was m aintained. The
Provisional French Government established in Paris by General Charles de
Gaulle after the liberation of th a t city announced wage rates would be increased
and the 44-hour week would be reestablished. A general election to enable the
French people to select their own government was promised as soon as the
prisoners of war and persons who had been deported to Germany could be returned.
Page 705
State distribution of Federal employees, June 1944.
Washington, D. C., no longer leads as the area of greatest em ployment of
Federal employees. In June 1944 New York and California each had more
Federal workers than the m etropolitan area of the N ation’s capital. A third of
th e 2,918,000 workers in Federal service were in the 5 States of New York, Calif
ornia, Pennsylvania, Texas, and Illinois. Over seven-tenths of all the employees
were working in war agencies. Page 728.
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iii
IV
This Issue in Brief
The effects of long working hours.
Studies in 6 additional plants corroborate previous findings th a t hours worked
beyond 40 or 48 per week result in additional output, but a t the price of con
tinuous decreases in efficiency accompanied by marked increases in absenteeism as
hours are lengthened. A point is finally reached at which the longer work
schedule is no more productive, and actually may be less productive, than a
shorter work schedule. Page 737.
Employment changes in Massachusetts in relation to the post-war situation.
D ata obtained by the M assachusetts Committee on Post-W ar Readjustm ent
relative employments covered by the Unemployment Compensation Act indicate
th a t all the m ajor industries in the State employed more workers in December
1941 than in September 1939. During the period since the attack on Pearl H ar
bor, however, declines in employment have taken place in the textile, leather,
food, furniture, apparel, and chemicals industries and in nonm anufacturing as a
whole. In those industries which expanded, by far the largest p art of the expan
sion took place in the large establishments. Page 740.
Seniority in the Akron rubber industry.
In the m anufacture of rubber, unlike the situation in industries which experi
enced wartime conversion, there has been little change in plant organization,
and the modified departm ent-seniority system evolved for peacetime operations
has been continued w ith slight modification. Under this system, any worker’s
right to retain his job during lay-off or to be rehired after lay-off depends mainly
on the relative length of his company service as compared to the company service
of the other workers in his departm ent. Although it is agreed th a t seniority
continues to accumulate during m ilitary service, there is some difference of inter
pretation concerning the relative reemployment rights of veterans as compared
w ith nonveterans of greater seniority. Page 788.
New dwellings in nonfarm areas, first 6 months of 1944.
In the first half of 1944, housing construction was at its lowest ebb since 1934
and was expected to decline still further. Less th an half as m any nonfarm
dwelling units were started in the first 6 months of 1944 as in the corresponding
period of 1943. Over four-fifths of these units (two-fifths in 1943) were privately
financed. Page 812.
Vocational training, 1940-44.
Enrollm ents in all types of Federally aided vocational classes declined in the
year ending in June 1943, largely as a result of war conditions which reduced the
num ber of young pupils who would normally be taking training in these courses.
Since the beginning of the war, vocational training has been especially directed
tow ard training for those occupations necessary in war production. Over 2
million women have been trained for such work. R eturning veterans are be
coming of increasing im portance in the vocational-training program. Page 818.
Wages in the Connecticut Valley brass industry, April 1943.
In selected occupations in the Connecticut brass industry, for which data were
t ‘obtained by the Bureau of Labor Statistics, average hourly earnings ranged from
73 cents to $1.48. Seventy percent of all the workers in the 18 plants studied had
straight-tim e earnings of from 90 cents to $1.10 an hour. There was a median
increase of 11.8 percent in occupational earnings from August 1941 to April 1943.
Page 836.
Farm income and wages, by size of enterprise.
A D epartm ent of Agriculture study of income and wages in 1939, by size of farm
enterprise, shows an extremely large proportion of farms w ith small net returns.
The study indicates th a t opportunities in agriculture for displaced industrial
war workers and returning members of the armed forces will be severely limited
after the war. This conclusion is supported by the fact th a t farm mechanization
and improved farming methods may be expected to cause a progressive increase in
the average output of farm workers. Page 843.
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Current Labor Statistics
V
Current Statistics of Labor Interest in Selected Periods 1
1944
Item
1939:
1943:
A ugust Average
for year
U nit
A ugust
Ju ly
54,010
35,570
18,440
53,170
35,140
18,030
44,600
8,570
840
55.000
35,890
19,110
54.000
35,410
18, 590
44,330
9,670
Em ploym ent
C ivilian labor force: T otal (B C )-----------------—
M ale------------ ------------------------------ - ..........
Fem ale________________________________
E m plo y ed ...------- ---------------------------------M ale______________________ ________
F em ale____________________________
N onagricultural------------------------------A gricultural________________________
U nem ployed, to ta l-------------------------- -—
E m ploym ent in nonagricultural establish
m ents: T o ta l3____________________________
M anu factu rin g---------------- --------------------M i n i n g . _____________________________
C onstruction 4~ ----------------- -------------------T ransportation and public u tilities----------T rad e ----------- -------------------------------- -----Finance, service, and m iscellaneous.-------Federal, State, and local governm ent, ex
cluding F ed eral fo r c e -a c c o u n t con
stru ctio n_____________________________
W age-earner em ploym ent:
M anufacturing_________________________
Bitum inous-coal m in in g _________________
Class I steam railroads, including salaried
employees (IC C )-------------------------------H ired farm w orkers (BA E )---------------------
2 54, 230
3 40,950
213,280
2 46,930
2 35,600
2 11,330
2 37, 430
2 9, 500
2 7,300
1,000
1,000
55,440
36,990
18,450
54,370
36, 440
17,930
44,730
9, 640
1,070
38, 771
16,118
832
684
3,817
6, 896
4, 558
38, 724
16,042
833
685
3,808
6,945
4, 581
38,824
16,093
844
691
3,803
6,977
4, 520
39,860
17,182
882
1,169
3,694
6, 875
4,172
30,353
10,078
845
1,753
2,912
6,618
4,160
5,830
5,896
5,886
3,988
_do.
-do_
13,001
352
12, 931
351
12,985
357
13,990
8,192
371
-do.
-do.
1,449
2, 694
1,443
2,732
1,447
2, 440
1,379
2,962
988
s 3,063
39.5
44.7
39.5
43.2
40.6
45.5
44.1
42.3
40.2
i 44.4
'37.1
' 41.7
39.0
37.7
27.1
43.0
32.4
$52. 08
$45. 52
$47. 31
$27.83
$52.81
$46.27 «$42.76
$52.27 «$42. 76
$27.06 8$25.48
$52. 21 $47. 97
$23.86
$23.88
$21.17
$30.24
$1,019
$0. 706
$1. 302
$1,018
$1.185
$0.701
$1. 300
$0.963
$1.150
$0. 675
$1.231
$0. 536
$0. 933
$0. 951
0.944
0.899
$0.622
$0. 874
0.867
0. 823
$0.622
$3.34
8 $1. 59
Thousands.
___ do_____
___ do_____
___ do ____
___ do_____
___ do ------___ do ------___ do_____
___ do____
.do.
.do
_do.
-do.
-do.
_do_
-do.
-do.
54.220
35,540
18,680
53.220
35,040
18,180
43,660
9, 560
H ours of labor
Average hours per week of wage earners:
M anufacturing___________ _______ B itum inous-coal m ining___________
R etail tra d e -------------------- ------------B uilding construction (p riv ate)-------
H ours.
.do.
-do.
_do.
Weekly earnings
Average w eekly earnings of wage earners:
M anufacturing-------- ----------------------B itum inous-coal m ining------------------R etail tra d e ----- ------ ----------------------B uilding construction (p riv ate)--------H ourly or daily earnings
A verage hourly earnings of wage earners:
M anufacturing...............................................
Bitum inous-coal m ining________________
R etail tra d e ____________________________
B uilding construction (p riv ate)--------------Average straight-tim e hourly earnings in
m anufacturing, using—
C urrent em ploym ent b y in d u stry -----E m ploym ent b y in d u stry , as of Jan
u a ry 1939__________ _____ ________
Q uarterly farm wage rate, per day w ithout,
board (B A E )........ ...................................... .
$ 1.
$1,317
201
$4.06
0. 633
Industrial injuries, labor turnover, and absences
from work
Industrial injuries in m anufacturing, per m il
lion man-hours w orked___________________
Labor turnover in m anufacturing:
T otal separations, per 100 employees........ .
Quits, per 100 employees-----------------Lay-offs, per 100 employees--------------T o tal accessions, per 100 employees---------Absence rates (workdays lost as percent of total
scheduled) :
M anufacturing, selected industries---------Bituminous-coal m ining------ ----------------See fo o tn o te s a t en d o f ta b le .
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t 19.3
6.5
4.9
0.5
6.2
6.4
12.2
7.1
5.4
0.5
7.6
6.1
12.6
i 20.6
15.4
« 7.6
8 5.6
6 0. 5
(8)
(8)
«7.8
6.6
9.7
( 8)
( 8)
( 8)
( 8)
VI
Current Labor Statistics
Current Statistics of Labor Interest in Selected Periods 1— Continued
1944
Item
U nit
August
July
June
1939:
1943: Average
A ugust for year
Strikes
Strikes beginning in m onth:
N u m b er of strikes..............................................
N u m b er of workers involved.......................... T h o u san d s..
M an-days idle during m onth (all strikes):
N u m b e r................................................................ ___do.............
Percent of available w orking tim e________
485
190
470
145
500
155
310
106
218
98
935
0.12
680
0.09
680
0.09
357
0.05
1,484
0. 28
123.4
137.2
129.6
108.0
107.6
125.9
116.5
99.4
95.2
100.5
104.3
99.0
101.3
100.7
Cost of living
Cost-of-living index (wage earners in large
cities): All item s.......... .........................................
F o o d ......................._..................I . I I I I I 'I I I I I I
C lothing
R e n t ........................................... mmiiiii
Fuel, electricity, and ice...................................
H ousefurnish ings...............................................
M iscellaneous.....................................................
..... ................
mum
1935-39=100
1935-39=100
1935-39=100
1935-39 = 100
1935-39=100
1935-39=100
1935-39=100
126.3
137.7
139.1
126.1
137.4
138.2
109.8
138.7
. 122.0
109.8
138.5
121.8
125.4
135.7
138.0
108.1
109.6
138.4
121.7
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.
137.7
108.5
129.0
133.6
159.4
175.6
124.3
122. 7
126.5
137.4
108.6
129.3
133.6
148.9
176.9
124.3
122.9
126.6
135.7
108.4
129.8
133.5
129.1
174.0
124.3
123.1
126.5
137.2
108.1
129.7
133.4
167.4
169.8
125.3
126.5
126.6
95.2
94.5
96.6
95.9
91.0
94.5
95.5
87.7
100.6
1926=100....
1926=100....
103.9
99.7
104.1
99.6
104.3
99.6
103.1
98.5
77.1
79.5
1926 = 1 0 0 ....
1926 = 1 0 0....
1926 = 1 0 0 ....
98.6
122.6
104.8
98.5
124.1
105.8
98.5
125.0
106.5
97.1
123.5
105.8
81.3
65.3
70.4
Retail food prices (large cities)
R etail price index: All foods................................
Cereals and bakery products_____________
M ea ts____________ ____________
D airy p ro d u c ts......... ............
.......I .
Eggs______________________________ ____
F ru its and vegetables___________________
Beverages_____ ________________________
F a ts and oils_______ _____ ______________
Sugar and sweets_____ ____________ _____
Wholesale prices
W holesale price index: All com m odities______
All commodities other th a n farm products.
All commodities other th a n farm products
and foods__________________
F arm p ro d u cts.______________111111111
Foods._____ ___________________________
National income and expenditures
N ational income paym ents, to tal (B F D C )____ M illions___
C onsum er expenditures for goods and services,
total (B F D C )__________________________
____do_____
R etail sales, total (B F D C )____________ ______ ____do_____
$12,982 $13,499 «$11,846 « $5,806
$7,806
$5, 452
$7,886 $7,454
$5, 593 «$5, 231
*$4, 904
8 $3,349
232
248
143
48,930
236
252
146
52, 780
245
264
140
52,432
109
109
106
32,905
$361
$90
13,454
147
$359
$116
18,180
144
$671
$105
27,900
145
« $682
(•)
‘ 51, 200
101
Production
In du strial production index, u nadjusted (F R ):
T o ta l................................................................. .......
M anufacturing________________ I I I I I I .I I I
M inerals______________ _____
B itum inous coal (B M ).................. ..........................
1935-39 = 100.
235
1935-39 = 100.
250
1935-39 = 100.
146
T h o u s a n d s 54, 220
of short tons
Construction expenditures, all types (exclud
ing m aintenance)___________ _________ ____ M illions___
$379
Building construction started in u rb a n a re a s ... ____do............
$85
New family-dwelling un its in nonfarm areas___
12,675
Carloadings index, unadjusted ( F R ) .................. 1935-39 = 100
146
> Source: B ureau of L abor Statistics unless otherwise indicated. A bbreviations used: BC (B ureau of
tne Census); IC C (In terstate Commerce Commission); B A E (B ureau of A gricultural Economics); B F D C
(B ureau of Foreign and Domestic Commerce); F R (Federal Reserve); B M (B ureau of M ines), M ost of
^ o current figures are prelim inary. Copies of this table are available on request.
2 10-month average—M arch to December 1940.
3 Differs from em ployed nonagrieultural workers in civilian labor force above, m ainly because of exclusion
of such groups as self-employed and dom estic and casual workers.
4 Includes workers employed b y construction contractors and Federal force-account workers (nonmaintenanee construction workers employed directly b y th e Federal G overnm ent). Other force-account nonm am tenance construction em ploym ent is included under m anufacturing and the other groups
5 A ugust.
6July.
7 C um ulative frequency rate, Jan u a ry to June.
8 N o t available.
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MONTHLY LABOR REVIEW
FOR OCTOBER 1944
Im paired W orkers in In d u s try 1
Summary
PHYSICALLY impaired workers employed in factories are just as
efficient in the jobs they hold as their unimpaired fellow workers.
This was the general opinion of management in the first 300 estab
lishments reporting to the Bureau of Labor Statistics in a recent
survey of the utilization of physically impaired workers in manufac
turing industries. Eighty-seven percent of the 63,382 impaired
workers employed in these establishments were reported to be just
as efficient as the unimpaired doing similar work, and the 8 percent
reported as more efficient outweighed the 5 percent reported as less
efficient.
In respect to absenteeism, injury frequency, and labor turnover the
physically impaired were rated as superior to the unimpaired. While
44 percent of the impaired workers were reported as having an ab
sentee record no worse than their fellow workers, 49 percent had
better records. Only 7 percent were absent more than the unimpaired.
According to the reports, the p h y s ic a lly handicapped workers
generally experienced fewer accidents, for 38 percent were reported as
having just as good an accident record, and 51 percent a better record
than the workers without disabilities; 11 percent had a higher injuryfrequency rate. Similarly, job changes were less frequent among
them, with 31 percent reported as having a turnover record comparable
to that of the unimpaired and 58 percent a better record. A higher
rate of turnover was reported for 11 percent of these workers.2
Frequently advanced as a reason for the better absenteeism and
labor turnover records of the impaired workers is the fact that, as a
general rule, the handicapped worker has found it much more difficult
to get a job than his more fortunate fellow worker and therefore
exerts greater efforts to keep it. Further, he is anxious to prove to
himself and to others that he is as good as, or better than, his unim
paired fellow worker.
Manufacturing plants in all parts of the country reported that they
were utilizing workers with physical impairments. About 46 peri Prepared in the B ureau’s D ivision of In d u strial Hazards, by Clarence A. T ru m p and Frances J.
^3°;Percentages are based upon th e total num ber of im paired workers reported b y each employer. Thus,
if an employer reported th a t the im paired workers in his plant were more efficient than the unim paired the
total num ber of his im paired w ould be included in the percentage reported as being more efficient th a n the
unim paired.
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Federal Reserve Bank of St. Louis
678
Monthly Labor Review—-October 1944
cent of all these workers were employed in the highly industrialized
East North Central area; more than half were working in plants em
ploying 10,000 or more persons.
A majority of the employers stated emphatically that selective
placement is the key to their satisfactory employment. Difficulty in
transfers from one job to another and in upgrading were reported by
some manufacturers employing relatively large numbers of physically
handicapped. Special in-service training facilities have been pro
vided in an attempt to solve these problems. The necessity of
flexibility in the manufacturing process was cited by a few manu
facturers as limiting the number of physically impaired employees
that could be utilized. Several foundries reported that few of their
jobs could be filled by physically handicapped workers because foundry
work is heavy.
In addition to surveying the plants by mail, the Bureau’s repre
sentatives interviewed management in six companies that have long
made a practice of hiring the physically handicapped. Some of these
companies are so concerned with the problem of placing returning
veterans that they are conducting surveys of the men who have left
their plants for military service, to determine the new skills acquired
and the type of work each man desires to engage in upon his return.
Analyzing these replies, together with past records of the men, the
employers are earmarking at least three jobs for each returning
veteran. One of these jobs is being selected on the supposition that
the veteran may return disabled.
In the cities in which two of these companies are situated, finding
jobs for the handicapped has been made a community responsibility.
Every device has been used to create an awareness among employers
of the employability of such persons. Some leaders in the field be
lieve that community interest is one answer to the employment of
the physically disabled.
The results so far show that impaired persons have been hired in
appreciable numbers, especially in critical labor-market areas and in
industries engaged most directly in essential war work. Many of
these workers probably will be out of jobs when this work ceases.
The position of the handicapped worker may be further weakened by
the return of the disabled veterans of World War II who must be
absorbed into industry. In order that existing prejudices may be met
and overcome and that the performance of impaired workers at jobs
at which their disabilities are no handicaps, may be appreciated fully,
it is essential that a body of factual, objective data be made available.
The Bureau hopes to be able to continue its survey, to provide this
information.
Scope of the Survey
To fill the need for information on the job performance of workers
with disabilities, the Bureau of Labor Statistics in cooperation with
the War Manpower Commission, the Office of Vocational Rehabili
tation of the Federal Security Agency, and the Veterans Administra
tion undertook a study of plants employing physically impaired
workers. The study consists of 3 parts: (1) A preliminary analysis,
part of which is presented here, including a mail survey of the perform
ance of impaired workers; (2) a series of case studies in plants with
records permitting a statistical analysis of the performance of the
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Federal Reserve Bank of St. Louis
Impaired Workers in Industry
679
impaired and the unimpaired, which cannot be completed until funds
are made available; and (3) a critical analysis of prevailing methods
of placement and rehabilitation, as well as of workmen’s compensa
tion problems.
On the questionnaire used in the mail survey, information was
requested concerning total employment, number of impaired workers,
type of manufacturing activity, physical examinations, job analyses,
methods of placement, special problems encountered in the utilization
of impaired workers, and job performance of the impaired as com
pared with the unimpaired. In order to obtain comparative perform
ance data the employer was asked to check for each of the four
measures of general perfoimance (efficiency, absenteeism, injury fre
quency, and labor turnover) whether his impaired workers were better
than, as good as, or poorer than the umimpaired doing similar work.
Therefore, in the statistical analysis of comparative performance the
impaired workers are necessarily treated as groups rather than as
individuals.
At the outset it was recognized that neither the number of physically
impaired persons in the United States nor the number employable
were known. As of 1940, it was estimated that there were 5 million
persons with major or minor physical impairments. This estimate
included persons with incapacitating and nondisabling orthopedic
impairments, total or partial deafness, and blindness in one or both
eyes.3 Of these 5 million persons, 3 million were within the employ
ment age groups. Over a year ago, the War Manpower Commission
estimated that there were between 2% and 3 million physically disabled
persons available for industrial employment. It has. been estimated
that there are 230,000 blind persons who can be fitted into industry.
It is known that the employment of disabled civilians has increased
rapidly during the past 2 years, for the records of placements made
through WMC facilities reveal that industry has hired increasing
numbers of handicapped persons, primarily because of the manpower
shortage created by the war. Industry is now faced with another
problem. When labor was scarce, employers hired anyone available
and made special efforts in many cases to subdivide jobs so that inex
perienced and impaired workers could be utilized successfully. Many
of these employees will work for the duration only and will leave
the labor market, while the returning veterans gradually find their
way back into civilian employment. Some of these veterans will be
disabled and will be unable to fill the jobs they left or similar jobs.
In view of this, it is important to know how successful the disabled men
and women have been, whether they have been able to maintain the
production pace, and what the problems have been in their employ
ment.
The analysis presented here covers 300 manufacturing establish
ments which returned the questionnaire on the performance of im
paired workers. Although this sample is small, it is nevertheless the
first study of this magnitude. The replies indicated, however, that
in most cases the employers did not base their judgment on actual
statistical measurements. It is likely that such measurements would
confirm their opinion, but the fact remains that factual measure
ments are not yet available.
* The Physically H andicapped, b y Bernard D . Karpinos.
R eports (W ashington), October 22,1943, p. 17.
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Federal Reserve Bank of St. Louis
R eprint No. 2521 from the Public H ealth
680
Monthly Labor Review—October 1944
For purposes of the study, impaired workers were defined as “ em
ployees with marked physical impairments which limit their working
capacity if not properly placed.” In June 1944, the 300 manufactur
ers reported that of their 1.3 million employees, approximately 63,000
were thus handicapped. Many companies were so interested in this
problem that they conducted surveys within their plants in order to
provide the information desired.
The majority (63 percent) of the reports came from establishments
in the East North Central and Middle Atlantic States. Fifty-seven
percent of the companies employed fewer than 2,000 persons. Half
of the reporting plants were engaged in the manufacture of transpor
tation equipment, iron and steel, munitions, and other war material.
Placement of Impaired Workers
Much has been written about how impaired persons should be
placed and what facilities should be provided for their proper place
ment. This survey indicates that the program of selective placement
is quite widespread. Only 7 percent of the 300 companies reported
that they neither gave pre-employment physical examinations nor
had made an analysis of the jobs within their plants; 17 percent re
ported that job applicants were given pre-employment physical exami
nations but that they were not placed on the basis of job analyses; 15
percent reported job-analysis programs only; and 61 percent reported
both methods. There is strong indication that many plants, regard
less of size, are cognizant of the fact that it.is now ordinary procedure
to examine an applicant for a job and to make a detailed study of the
physical requirements for each job in order to place the applicant most
advantageously from both his and the firm’s viewpoint.
Some small plants consider the elaborate personnel departments of
the larger concerns too costly for their own operation. From plant
visits it was found that it is not necessary for small employers to
maintain the services of a full-time medical examiner and a special
placement officer for physically impaired applicants. Any plant can
make its own analysis of the physical requirements necessary for each
job, and the specialists of the War Manpower Commission stand
ready to aid them in making such an analysis. A fair examination
made by a competent industrial physician should supply the infor
mation necessary to place the impaired worker satisfactorily. The
applicant’s abilities, training, and experience obviously must also be
taken into consideration.
From such simple arrangements as the above, the selective place
ment facilities range up to very formal ones entailing special counselors
and other specialists trained in the placement problems of impaired
workers. It should be pointed out that the placement of the blind
involves additional problems. A blind person must be trained on the
job and special attention must be given to introduce him to the sur
roundings and to the job itself. In this questionnaire survey, no
attempt was made to segregate the impaired by type of disability.
A few plants reported that they have found special types of impaired
persons, as for example the blind and the deaf, to be particularly
adaptable to the operations within their plants. Blind workers sort
ing rivets, bolts, and small parts by touch are doing better work and
staying on the job longer than sighted workers. In extremely noisy
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Federal Reserve Bank of St. Louis
Impaired Workers in Industry
681
shops, such as boiler factories and the riveting departments of air
frame plants, it has been found that deaf workers are more satisfactory
than those who can hear.
One of the major problems brought to light in this survey is that
the number of jobs open to the impaired within a plant is limited.
Especially hazardous or heavy industries and those using the produc
tion-line method believe that they cannot use handicapped persons.
Some plants, after considerable job analyses, reported they had reached
their limit of employment of impaired workers. Many employers
seem to be of the opinion that such workers are useful only on tedious
or repetitive jobs or as clerks and watchmen. Perhaps a more thor
ough analysis of physical requirements would reveal additional jobs
suitable for the physically handicapped, in plants where this opinion
is held.
Such a job analysis should reveal to the employer the jobs which
can be performed by persons with one arm, or no hearing, etc. In
many cases it will be discovered that a slight job change will permit
the use of a physically handicapped person on a particular operation.
A striking example of this occurred in a plant where a one-armed
operator was given a trial on a particular job. In the course of her
work she had to adjust a small screw below the machine table. Nor
mal operators merely reached under the machine, located the position
of the screw with one hand and, with a screw driver in the other, made
the necessary adjustment. This was impossible for the one-armed
operator, so she requested a mirror. When the mirror was placed so
that she could see the location of the screw, she easily adjusted it. As
a result, the company concluded that mirrors were equally helpful
to normal operators. Other equally simple modifications can be
made, such as placing a lever on the left instead of on the right,
lining up tools in another order, or converting foot releases to hand
releases. Such modifications can be determined from job analyses
as well as by the workers on the jobs, and the number of jobs avail
able to persons with physical disabilities can be increased.
The difficulty of transferring the physically impaired from one job
to another and the consequent doss, in flexibility of plant operations
was cited by a number of employers as a limitation on the utilization
of these workers. Some plants have solved this problem by providing
extra training facilities.
A number of plants made adjustments in their personnel and in
working conditions, to make work possible for large numbers of
handicapped workers. Besides providing special in-service training
facilities to aid in job transfers and upgrading, they had trained
special supervisors for selected groups of deaf and blind. Many
pointed out that special clearance for job transfers was made through
the medical officer. In order to spare the more seriously handicapped
the general confusion of the rush hours, these workers in some cases
were permitted different hours for entering and leaving the plant and
for lunch and rest periods.
.
.
.
.
Union agreements were mentioned in a few instances as hindering
the employment of the physically impaired. In a few industries,
these contracts require that all new employees enter a plant as labor
ers. Such a requirement might keep some workers from jobs which
they could otherwise fill. Seniority provisions of agreements were
likewise mentioned as deterrents to the employment of the handi
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Federal Reserve Bank of St. Louis
682
Monthly Labor Review—October 1944
capped. How widespread these two requirements are cannot be
determined from this survey, as relatively few employers remarked
upon them.
The problem of workmen’s compensation was not emphasized to
the extent that might be expected. Only 2 percent of the reporting
firms commented that some of the employees attempted to obtain
compensation for the aggravation of an old injury.
Performance of Impaired Workers
It is clear from the reports that the majority of companies consider
handicapped persons to be as good as or better than the nonhandi
capped, as regards performance on the job. Only 5 percent of the
63,382 impaired workers covered in this study were reported to be less
efficient; only 7 percent had poorer absenteeism records; 11 percent
were reported as having accidents more frequently than their fellow
workers; and 11 percent showed greater tendency to seek employment
in other companies.
On the whole, employers seemed pleased with the performance of
this group. Many noted that this depends especially upon selective
placement. The crux of the problem is given in the following comment
made in one of the reports:
Successful experience w ith handicapped presons m ay be expected when dis
abilities are not perm itted to interfere w ith performance and safety factors.
Job descriptions w ith physical requirem ents check lists make possible th e ‘classi
fication of jobs in term s of disabilities which will not interfere w ith performance
and safety factors. When employment and medical departm ents are guided by
such data, intelligent recruiting and placem ent of handicapped workers can be
expected.
Experience of Companies with over 3 Percent of Impaired Workers
Of the 300 reports received, 128 were from establishments in which
more than 3 percent of the total labor force consisted of impaired
workers. Of 502,851 workers in these 128 plants, 53,035 had physical
disabilities. Sixty-two percent of the 128 plants were in the East
North Central and Middle Atlantic areas. The majority of them
were of small size: 33 reports came from plants employing fewer than
500 persons; 20 from the 500-999 group; 15 from the 1,000-1,499
group; 12 from the 1,500-1,999 group; and 47 from plants employing
2,000 or more persons. The principal industries represented in
this group were those manufacturing transportation equipment,
iron and steel, and munitions.
Eight percent of the companies used neither physical examinations
nor job analyses in making placements, 15 percent used physical
examinations only, and 14 percent job analyses only. In 63 percent,
both methods were in use. This group of 128 plants contained those
that have gone farthest in providing special placement facilities.
Although the group contained few employing great numbers of im
paired, in those few the problems have been thoroughly investigated
and special provisions made.
The performance records in these plants are as outstanding as those
reported for all 300 companies. The general attitude is expressed in
the following quotations taken from the returned questionnaires.
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Federal Reserve Bank of St. Louis
Impaired Workers in Industry
683
From a company in which 11 percent of the total force consists of
impaired workers, the management sent the following comment:
We have employed persons with nearly all types of physical im pairm ents
except blindness and epilepsy. The problem of using handicapped persons has
been given special consideration recently for two reasons: (1) They are an added
labor resource in a tight labor-m arket area, and (2) we are preparing for the
return of our boys in the service who may come back w ith some degree of physical
im pairm ent.
A larger company employing over 200 handicapped workers wrote:
We have found th a t people with marked physical handicaps can be used to
advantage in our factory jobs. They m ust be carefully placed as to job and also
supervision. Under such circumstances they do as well or b etter th an unim
paired individuals, depending upon the personalities involved. However, they
are not as flexible as the others and are more difficult to shift from job to job as
production, m aterial, or jobs may require.
A large aircraft corporation employing 900 workers with physical
impairments noted that—
In the placement of impaired workers, care is taken to make sure they are
placed on jobs they can do. An orientation program whereby they are checked
periodically by our personnel counselors is also in operation. Cases needing adjust
m ent or change in work are, therefore, taken care of before any real difficulty
develops.
Deaf persons have been found very useful in the riveting departm ents. Be
cause of the noise involved, it has been found th a t their work is generally b etter
th an th a t of persons with normal hearing. This applies to efficiency on the job,
absenteeism, and labor turnover. Blind persons have been used successfully
in salvaging operations, mainly in the sorting of rivets.
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Federal Reserve Bank of St. Louis
W artim e Wage Movements andU rban Wage-Rate Changes 1
Summary
FIELD surveys of actual pay rolls by the Bureau of Labor Statistics
show that wage stabilization has been increasingly effective during the
war period. Since the Stabilization Act of October 1942, compara
tively few “general” wage increases have been granted. Moreover,
the trend of urban factory wage rates, including wage increases to
individual workers, has leveled off in the most recent period. During
the 21 months, January 1941 to October 1942, urban factory wage
rates increased by 0.8 percent per month. During the following year
the increase was 0.6 percent per month. During the 6 months,
October 1943 to April 1944, the most recent period for which wagerate information is available, the average increase dropped to 0.3
percent per month.
Although the gross weekly earnings of factory workers rose by 71
percent from January 1941 to April 1944 and their gross hourly
earnings rose by 48 percent, urban factory wage rates rose by only
28 percent in this period and “general” increases in wage rates
amounted to less than 16 percent.
The substantial increase in weekly earnings 2 is partly attributable
to increased hours of work, amounting to an equivalent of nearly 1
additional day of work each week. Both weekly and hourly earnings,
moreover, have been influenced by a variety of factors which have
caused earnings to rise more rapidly than wage rates. The most
important of these factors in recent years have been the g ro w in g
prevalence of overtime work at premium rates and the growing
importance of employment in the higher-wage war industries. Thus,
the estimated averages of straight-time hourly earnings of factory
workers, after eliminating the influence of the two factors just noted,
show an increase of 33 percent from January 1941 to April 1944, in
contrast to the increase of 48 percent in gross hourly earnings. Other
factors which have tended to raise earnings more than wage rates
include the growing importance of the higher-wage centers of employ
ment, the growth of late-shift work at premium pay, the increased
output of incentive workers, and extensions of the incentive method of
pay. None of the increases in earnings arising from these factors is
inconsistent with a stabilization of wage rates. Neither weekly nor
hourly earnings provide an adequate measure of the effectiveness of
the wage-stabilization program.
Analysis of the material available regarding the changes in urban
wage rates of factory workers reveals a marked transition since the
outbreak of the war in the method by which those changes have been
1 Prepared m the B ureau’s Division of Wage Analysis by R obert J. M yers, H arry Ober, and Lily M ary
D avid. T he planning and analysis of the stu d y was supervised by N . Arnold Tolies. Special assistance
was provided by Toivo P. Kanm nen, John F. Laciskey, and M argaret L. H am m ond. (Reprinted as
Serial No. R. 1684; for sale by Superintendent of Documents, U. S. Government Printing Office, W ashington
25, D. C., price 5 cents.)
2 T h e increase in net spendable earnings has been m uch less th an the increase in gross weekly earnings
™ SPen„d ?b,le Earnings of Factory W orkers, 1941-43, by N . Arnold Tolies, in M onthly Labor Review,'
M arch 1944 (pp. 477-489) or B ulletin N o. 769.
684
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Federal Reserve Bank of St. Louis
Wartime Wage Movements
685
accomplished. From January 1941 to October 1942, prior to the
stabilization period, wage rates were typically raised by means of
broad, general increases in time or incentive rates, many of which
affected all workers in a given establishment. Out of the total in
crease in wage rates during this period, estimated at 17 percent, about
13 percent—or roughly three-fourths—was accounted for by general
increases affecting 10 percent or more of the workers (or all workers
in a key occupation) in a given establishment. During the following
18 months (October 1942 to April 1944) wage rates rose by approxi
mately 9 percent, but less than one-third of this increase a little
more than 2 percentage points—was accounted for by general wage
increases. The major part of the increase in wage rates during this
period resulted from merit increases, in-grade promotions, and other
wage adjustments affecting individual workers or small groups. In
the most recent period for which information is available, October
1943 to April 1944, general wage increases accounted for only about
one-fifth of the declining total of increases in wage rates.
Information regarding wage rates in nonmanufacturing is not
available for the entire period since January 1941. From April 1943
to April 1944, however, wage rates in selected nonmanufacturing
industries rose by 9.4 percent. The wages paid in nonmanufactur
ing are typically lower than those in manufacturing and, in general,
the greatest increases in wage rates occurred in those segments of
nonmanufacturing industry in which the lowest wage rates have
prevailed.
Wage Rates and Earnings
Wage rates represent the pay for some specified unit of labor, such
as an hour’s work or the amount of work necessary to perform a given
operation. Hourly earnings may be defined as a total amount of
earnings divided by a total of hours actually worked.3 While the
term “wage rate” implies a particular occupation or type of work, the
term “hourly earnings” may be applied appropriately to widely dis
similar groups of workers (e. g., an entire industry, all workers in a
geographic area, an age group, etc.). Although wage rates, partic
ularly for “white-collar” workers, are frequently quoted in terms of a
day, a week, a month, or some other unit, all wage rates referred to in
this article have been reduced to an hourly basis.
During periods of general economic stability it may be safely as
sumed that changes in average hourly earnings reflect changes in wage
rates. Under rapidly changing conditions of employment, however,
such as those of recent years, earnings and rates may move quite
differently. Indeed, for short periods they may move in opposite
directions. Simple averages of total pay roll divided by total hours
of work can furnish only a rough approximation of changes in wage
rates.
The distinction between rates and earnings may be seen more clearly
from a list of the chief factors that influence average earnings. Table 1,
which presents such a list, indicates which of the major factors affect
various measures of wage changes recently issued by the Bureau of
Labor Statistics.
3
T h is is essentially the com putation m ade b y th e B ureau of L abor Statistics in preparing its m onthly
figures on average hourly earnings, although certain additional steps are necessitated b y the n ature of tne
basic data.
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Federal Reserve Bank of St. Louis
v
686
Monthly Labor Review—October 1944
T able 1.— Major Factors Influencing Specified Bureau of Labor Statistics Measures
of Wage Changes1
Straig ht-time
hourly earnings
Item
No.
Factor
(a)
1
2
General changes in hourly ra te s__________
Changes in liberality of basis for incentive
p a y ------------------------- ------ ------------------3 A djustm ents in th e hourly rates of individual w orkers for small groups) in recognition of m erit, length of service, e tc ..
4 Changes in th e o u tp u t of workers paid on
an incentive basis_________________ .
5 Changes in th e prevalence of incentive paym e n t____
. . . ._
6 Changes in th e relative im portance of individual companies or establishm ents_____
7 Changes in the composition of the labor
force___________________
8 Changes in th e relative im portance of individual regions or localities_____________
9 Changes in th e provisions for prem ium pay
for work on extra shifts______
10 Changes in th e extent of extra-shift work
a t prem ium p a y _____________________
Changes in occupational s tr u c t u r e .. . ___
12 Changes in th e provisions for prem ium pay
for overtime w ork_______
13 Changes in th e relative im portance of individual industries______ _
. _
14 Changes in the prevalence of overtim e work
a t prem ium p ay___ _______________
15 Changes in the weekly hours of w ork___
16 Changes in pay-roll deductions for taxes,
bonds, etc............. .....................
11
U rban A djusted
W ith
wage to elim i industry
rates
n ate in
terindus weights
as cur
try em
rently
ploym ent reported
changes
(b)
(0
(d)
Gross
Gross Spend
hourly weekly able
earn
earn weekly
earn
ings
ings
ings
(e)
(0
(g)
>X
X
X
X
X
X
IX
X
X
X
X
x
x
x
x
x
x
X
X
X
X
X
¡X
X
X
X
X
SX
X
X
X
X
‘X
X
X
X
X
(«)
X
X
X
X
X
x
x
X
x
X
X
X
X
X
X
x
x
x
x
x
x
X
X
x
1
"1----------
X
X
x
x
x
X
X
x
x
x
x
x
x
x
X
1T h e list of factors is no t exhaustive, b u t is believed to include the m ost im portant factors influencing
wage changes in a group of industries. (As applied to individual industries or establishm ents the list would
require modification.) N onincentive bonuses, vacations w ith pay, and sim ilar factors have been excluded
from th e list because th ey are rarely reflected in measurements of wage changes. Changes resulting from
revised definitions, such as the revision involved in the portal-to-portal decision in coal mining, have also
been ignored for present purposes. T h e measures of wage changes referred to in this table have appeared
m recent publications of th e B ureau of Labor Statistics.
■
2 Factors 1 and 2 constitute “ general wage changes” and are referred to jointly b y this term in a later sec
tion of th is article. As a m atter of research procedure, general wage changes are considered to include those
wage changes th a t affect 10 percent or more of the w orkers (or all of the w orkers in any key occupation)
ln*a™i?s
ishment; changes th a t affect smaller groups are considered as individual adjustm ents (factor 3).
, l hese factors are perm itted to influence the m easurem ent of changes in urban wage rates only because
th e y cannot readily be separated from item 2. In special tabulations, however, it is possible to elim inate
the influence of all three factors (2, 4, and 5).
* T he influence of this factor is allowed only in th e interest of simplifying tabulating procedures and
because it is believed to be unim p o rtan t; it can be excluded if desirable.
* T he influence of this factor on the measure of urb an wage rates has been largely elim inated b y th e assign
m ent of separate, constant weights to m en and women workers, and by th e distinction between learners
and experienced w orkers. U nder certain circumstances, however, labor turnover among experienced
workers of the same sex m ay affect som ew hat the average wage rates of individual occupations.
DEVELOPMENT OF WAGE SERIES
The oldest comprehensive and continuous 4measure of wage changes
issued by the Bureau is in the form of gross average weekly earnings
(column f of table 1). Continuous series of average weekly earnings
in manufacturing have been published by the Bureau of Labor
4
L im ited inform ation as to b o th rates and earnings has been assembled since th e earliest tim es and this
information has been gradually extended ever since th e establishm ent of the U. S. Bureau of L abor ir
th e 1880 s. (See H istory of Wages in th e U nited States, B ulletin No. 604.) A t one tim e the B ureau issued e
crude b u t useful index of wage rates. T h e B ureau has published union wage scales for a group of time-work
l£?;d ™eacï} ye?r smce 1907- (See M o n th ly L abor Review, Jan u ary 1944, p. 163; F ebruary 1944, pp. 382 and
389; M arch 1944, p. 601; and A pril 1944, p. 822.)
, vy.
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Federal Reserve Bank of St. Louis
Wartime Wage Movements
687
Statistics for each month since 1919, and various nonmanufacturing
industries have been added in subsequent periods. Average weekly
earnings, consisting of a simple division of the total pay roll by the
number of workers employed, constitute the most readily available
type of wage statistics. Because they are greatly influenced by
part-time and overtime work, the changing composition of the labor
force, and other factors, average weekly earnings constitute a better
measure of income trends than of changes in rates of pay.
Even as a measure of the worker’s income available for expen
diture, average weekly earnings have become defective in recent
years, owing to the increased importance of pay-roll deductions. The
approximate amounts of these deductions have been estimated by the
Bureau for certain specified groups of workers so that net spendable
earnings (column g) may be computed from the published averages of
gross weekly earnings.5
Gross average hourly earnings (column e) have been published by
the Bureau each month since 1932 for all major manufacturing and for
selected nonmanufacturing industries. At the outbreak of the war,
these averages of gross hourly earnings constituted the only compre
hensive indicator of wage-rate changes, even though at least 14 factors
influenced the result. More refined estimates of wage-rate changes
became necessary as both wages and employment conditions began to
undergo rapid wartime changes.
The first step in refining the gross averages of hourly earnings was to
eliminate the effect of changes in the extent of overtime work at
premium pay (factor 14) and thus to estimate the trend of average
earnings on a straight-time basis (column d).6 To eliminate the effect
of interindustry shifts of employment, the Bureau next developed a
series of estimates of straight-time earnings for manufacturing in
which the distribution of workers by industry was maintained on the
same proportionate basis as in 1939 or in any other base period with
which comparison was desirable (constant industry weights).7 This
method serves to eliminate the influence of factor 13 in table 1. These
two adjustments (column c), elimination of overtime premiums and
constant industry weighting, permit the Bureau to distinguish between
the 48-percent rise in gross hourly earnings since January 1941, and
the 33-percent rise in straight-time earnings which would have occurred
if the various industries#had continued to employ their original pro
portions of the labor force.
While the two steps just described brought the Bureau’s figures
closer than before to a measure of wage-rate changes, several of the
other factors accounting for the difference could not be isolated by any
estimates derived from the Bureau’s mailed questionnaires covering
gross pay rolls and man-hours. A new method was required to
determine the changes in actual wage rates by occupation. The basis
for the new method had been provided by the numerous field in
vestigations of wages, conducted by the Bureau ever since its estab5 See Spendable Earnings of Factory W orkers, 1941-43, in M onthly Labor Review, M arch 1944 (pp. 477489) or B ulletin No. 769.
6 F o r th e rr ethod of estim ating straight-tim e earnings, see E lim ination of Overtim e Paym ents from Gross
H ourly Earnings, in M onthly Labor Review, N ovem ber 1942 (pp. 1053-1056).
7 F o r example, straight-tim e hourly earnings for all m anufacturing in A pril 1944 averaged $0,942 when the
averages for th e various individual industries were weighted b y em ploym ent in those industries in
th a t m on th . T h e corresponding average was $0,862 when th e current industry averages were weighted by
em ploym ent in Jan u ary 1939. See M onthly Labor Review, July 1944, p. 147; also T rends in F actory Wages
1939-43, in M o n th ly L abor Review, N ovem ber 1943.
610054— 44-------2
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688
lishment. These field investigations had provided experience in
classifying workers by occupation and obtaining actual wage pay
ments per hour by inspection of company pay rolls. Their defect, as
a means of measuring wage-rate changes, consisted simply of the lack
of a comprehensive coverage of industries during any given year.
The opportunity to measure changes in job rates themselves was
provided by the results of the Bureau’s recent work for the National
War Labor Board. To provide a factual basis for the setting of local
wage brackets, the Board required a vast enlargement of existing in
formation as to actual rates of pay, by occupation, industry, and
locality. Generalized averages of hourly earnings for all the workers
in an industry could not be used. To meet the Board’s needs the
Bureau expanded its field investigations of occupational wage rates
early in 1943 on a project financed in part by the Board.8 The wage
information collected in this way, supplemented somewhat to improve
its representative character, permits wage-rate comparisons for three
periods: April 1943, October 1943, and April 1944. Additional in
formation, not previously available, throws light on the nature of
wage changes between January 1941 and April 1943.9 The material
for the period before April 1943 is discussed in a later section of this
article.
METHOD OF MEASURING WAGE-RATE CHANGES
The measure of wage-rate changes presented for the period, April
1943 to April 1944, possesses the following important features: (1)
The measure is based on the observations of trained field represent
atives of the Bureau, who visited the cooperating establishments and
transcribed wage rates directly from pay rolls and other basic records;
(2) the wage data relate to specific occupations, defined in writing to
assure uniformity, and with appropriate distinction between men and
women workers, experienced workers and learners, etc. ; (3) the rates
obtained are defined uniformly and exclude all premium payments for
overtime and for work on extra shifts; (4) all comparisons relate to
wage rates in establishments that are virtually identical from period
to period; and (5) the use of constant weights assures that each oc
cupation, each industry, and each area (but not each establishment)
will exert the same degree of influence in all periods.
Examination of these features of the new measure of wage-rate
changes reveals that they eliminate the influence of most of the dis
turbing factors which affect even the best over-all estimates of straighttime earnings. The influence of changes in the provisions for over
time premium pay (factor 12—illustrated by the adoption of double
time instead of time and one-half for the seventh consecutive day of
work) has been eliminated by excluding all premium pay from the
original data. This approach has also, of course, eliminated the in
fluence of premium pay for work on extra shifts (factors 9 and 10).
The effect of changes in the number of workers employed in the
various occupations (factor 11) is separable only in statistics col
lected by occupation and on a comprehensive scale; in the measure
ment of urban wage-rate changes this factor has been eliminated by
8 See Statistics for W age Stabilization, in Journal of th e A merican Statistical Association, D ecember 1943.
s A lthough th e wage comparisons developed herein can be continued in the future w ith com parative ease,
it is doubtful w hether they can be carried fu rth er back into th e past. T he occupations of individual w orkers
are no t custom arily shown in com pany pay-roll records and m u st be discovered by special investigation,
requiring th e assistance of foremen and others who know th e n atu re of each w orker’s job. A fter th e lapse of
a few m onths it th u s becomes alm ost impossible to identify a worker’s occupation.
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689
the assignment of constant occupational weights. The influence of
shifts in the employment of workers among the various localities
(factor 8) has been offset by the same method.
Although the influence of changes in the relative importance of
individual establishments (factor 6) could be similarly canceled, there
is evidence that this factor has been of little importance during the
war period and, up to the present time, its elimination has not appeared
to justify the considerable amount of work involved.
Changes in the composition of the labor force (factor 7) are illus
trated by the substitution of women for men, or of beginners for
experienced workers, without any significant change in the nature or
importance of the job/ The influence of this factor on the measure of
wage-rate changes has been largely, although not entirely, eliminated
by the assignment of separate and constant weights to male and female
workers and by the elimination of rates for learners from the observa
tions.
The measure of urban wage rates is also influenced somewhat by
changes in output due to the increasing effort or skill of workers paid on
an incentive basis (factor 4) and by changes in the prevalence of incen
tive payment (factor 5). Since neither of these factors constitutes a
change in wage rates, the removal of their influence would be desirable
if the factors could be segregated. In many cases, however, it is im
possible, without prolonged and intensive investigation, to ascertain
to what extent a change in incentive pay reflects a change in the basis
of payment (factor 2) and to what extent a change in the intensity or
effectiveness of work (factor 4). Measurement of wage-rate changes
for time workers alone serves to eliminate the influence of all three of
these factors.
By means of these eliminations and special measurements, there
fore, it is possible to determine with considerable accuracy the effect
of factors 1, 2, and 3 of table 1, which are believed to constitute a
reasonable measure of wage-rate changes. The first two of these
factors, which constitute “general wage changes/’ may also be meas
ured with some accuracy.10
NATURE OF BASIC DATA
The data used in the new measure of wage-rate changes were ob
tained almost exclusively from areas centering in a city of 25,000
population or more. The measure consequently applies only to urban
areas. Wage-rate changes in 69 separate areas were analyzed but,
since many areas include suburbs or neighboring cities in addition to
the central city, the number of cities and towns covered was substan
tially greater. The 69 areas include about 40 percent of the population
of the Nation as a whole and 70 percent of the urban population. They
represent all of the 48 States and a great variety of urban industry.
In the selection of areas, particular attention was paid to the desir
ability of representing industries important in each region; thus,
Akron was included because of the rubber industry, Grand Rapids
to represent the furniture industry, and Waterbury to represent the
brass industry of the Connecticut Valley. Although proportionately
few areas of less than 100,000 were covered, the weight of these was
10 As has been pointed out, certain changes in th e liberality of incentive pay m ay be hidden or confused
w ith increases in worker productivity. O rdinarily, however, these constitute b u t a small p a rt of th e total
of general wage changes.
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Monthly Labor Review—October 1944
increased in order to represent other areas of comparable size.11 The
regional boundaries used in this analysis have economic rather than
administrative significance. They are intended to group States in
which urban wage levels are roughly similar and in which wage
movements would be expected to show generally similar trends.
The manufacturing industries for which data were available had
been selected as characteristic of the areas represented. For the
most part they were the larger industries and tended to dominate the
wage structure of the respective communities. Each area was
represented by several different industries—typically 10 to 15.
The nonmanufacturing industries selected for study, unlike the
manufacturing industries, were the same for all areas. These con
sisted of about 10 industries representing five broad groups. Specif
ically, financial institutions were represented by banks and various
types of savings and loan associations; retail trade by department,
clothing, and grocery stores; wholesale trade by general-line wholesale
grocery establishments; local public utilities by electric light and
power companies; and the service trades by laundries, hotels, and
auto-repair shops. Conspicuously absent are construction, com
munication, and transportation, and, of course, the rural industries of
mining and lumbering. Obviously the representation of nonmanu
facturing is less complete than could be desired. It is hoped that the
coverage of such industries may be extended in connection with future
measures of wage-rate changes.
Approximately 6,600 establishments 12 were covered in the 69
areas, or an average of about 100 per area. In some of the larger
areas, however, more than 300 establishments were covered, while
several small areas were represented by fewer than 30 plants.
Establishments with fewer than 9 employees were rarely covered,
but otherwise the establishments included were reasonably repre
sentative of the industries and areas selected, some over-representa
tion of the largest establishments being corrected by weighting.
It was deemed unnecessary to study all of the occupations in the
establishments covered. The wage-rate changes in each establish
ment, therefore, were measured in terms of changes in selected key
jobs. These jobs—usually" 10 to 12 in number—were uniform within
a given industry and were selected to represent the various skill
groups and wage levels characteristic of the industry. Office and
clerical jobs are represented only in the occupations for nonmanu
facturing industries.
A brief comment on weighting will be of interest to most readers.
Each occupation (and each sex, in occupations commonly employing
both men and women) is considered to represent a skill class or group
of similar occupations and has been assigned an appropriate weight,
depending upon the proportion of all employees in the industry
11 T he areas covered, identified b y central city, were as follows: New England— Boston, Bridgeport,
Claremont-Springfield, Lowell, Portland, Providence, W aterbury; Middle Atlantic—B ingham ton,
Buffalo, H arrisburg, N ew ark, New Y ork, Philadelphia, Pittsburgh; Border States—Baltimore, Charleston,
Louisville, R ichm ond, W ilm ington; Southeast—A tlanta, B irm ingham , Colum bia, Greenville, Jackson,
Knoxville, M em phis, Raleigh, Savannah, T am pa, W inston-Salem ; Great Lakes—A kron, Chicago, Cleve
land, D etroit, G rand Rapids, Green B ay, Indianapolis, Lim a, M ilwaukee, M inneapolis, South Bend,
Springfield; Southwest—D allas, H ouston, L ittle Rock, Lubbock, New Orleans, Tulsa; Middle West—
Cedar R apids, Fargo, K ansas C ity, O maha, Sioux Falls, St. Louis, W ichita; M ountain—A lbuquerque,
Boise, Cheyenne, D enver, G reat Falls, Phoenix, Salt Lake C ity; Pacific—Fresno, Los Angeles, P o rt
land, Reno, San Francisco, Seattle, Yakima.
li This figure applies to the period October 1943-April 1944. D ata for about 4,400 identical establish
m ents were available for the preceding 6-month period. A somewhat broader industrial coverage was
also achieved in the second period and, in general, the findings for the second period are more reliable and
perm it more detailed analysis th an those for the first.
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691
typically found in the class or group represented. Since the same
occupational weights have been used for all periods studied, the aver
ages derived have not been affected by changes in occupational com
position. Each covered industry and each major industry group
within each area has also been assigned a constant weight 13 as has
each region. In general, no changes in the relative importance of
industries, individual areas, or regions have been permitted to influ
ence the results of the study. The weights assigned represent the
distribution of employees in the autumn of 1943.
Trend of Urban W age Rates, April 1943-April 1944
The 12-month period from April 1943 to April 1944 was one of
considerable significance in the history of American wages. Although
the National War Labor Board had been given compulsory powers
eariy in 1942 and in October of that year had been charged with
inaugurating a general wage-stabilization program, it was not until the
spring of 1943 that a full-scale organization was in operation to
administer this program. Hence, the year, April 1943-April 1944,
represents the first period of operation of a complete program of wage
stabilization.
MANUFACTURING INDUSTRIES
The increase in urban wage rates in manufacturing industries during
the period from April 1943 to April 1944 amounted to 5.8 percent.
The rise during the second 6 months of the year (1.9 percent) was only
half as great as that during the first 6 months (3.8 percent), reflecting
the development of effective stabilizing procedures by the War Labor
Board and, in small degree, the continuing exhaustion of increases
permitted under the “Little Steel” formula. Gross average hourly
earnings in manufacturing,14 influenced by changes in overtime pay
ments, occupational structure, etc., rose 7.2 percent, and adjusted
average hourly earnings (corrected for premium overtime payments
and for changes in the importance of individual industries) rose 6.7
percent during the same period.
General wage increases were not a major factor in the rise of
wage rates. Increases affecting as many as 10 percent of the employees
simultaneously were reported by only 411 of the 2,332 establishments
studied during the first 6 months and by only 397 of the 3,612 estab
lishments studied during the second 6 months. In the aggregate,
these increases raised the over-all average by only about 1.1 percent
during the year.
The extension of incentive payment and the increasing output of
incentive workers also appear to have been minor factors. A special
tabulation based exclusively on the wage rates of time workers indi
cates an increase of 5.3 percent during the year, or almost as much as
13 T he inform ation used as a basis for the weighting of industries, areas, and regions was supplied by cour
tesy of the B ureau of E m ploym ent Security of th e Federal Security Agency, and of the various S tate u n
em ploym ent compensation commissions.
14 All figures on average hourly earnings presented in this article have been supplied b y the B ureau’s
Division of E m ploym ent Statistics. Since these figures relate to earnings in all parts of the U nited States
and are no t lim ited to u rb an areas, their comparison w ith the measure of urban wage-rate changes m ay
be subject to question. T h e comparison is also affected somewhat by differences in the size of establish
m ents covered and by certain other differences. A bout three-fifths of all m anufacturing employees,
however, are employed in cities of 25,000 or more, and the inclusion of suburbs of these cities w ould result
in an even higher proportion. M ost of the other differences affect even smaller proportions of the workers.
In view of this fact, and in view of the general consistency of the measure of hourly earnings and th a t of wage
rates, the comparison is believed to be justified.
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Monthly Labor Review—October 1944
the tabulation including incentive workers. The wage rates (i. e.,
straight-time average hourly earnings) of incentive workers rose
somewhat more than those of time workers,15 but incentive payment
was not common enough to exercise great influence.
There is no evidence that changes in the importance of individual
establishments significantly affected the level of average wage rates
during this period. Information is at hand, however, which will permit
measurement of the influence of this factor before the measure of
wage-rate changes is extended to later periods.
These observations lead to the inference, which is supported by the
reports of hundreds of employers, that merit increases, automatic
seniority increases, and other types of individual adjustments were
the dominant factor in the rise of wage rates during the year.
Regional Variations
Variations in wage-rate increases by region are of particular interest
because of the lack of regional detail in most of the wage information
previously available. The figures presented in table 2 reveal a sub
stantial degree of uniformity in wage movement among the various
regions. All nine regions showed an increase, but in six the average
rate of increase differed from the national average by not more than
1 percentage point.
The smallest increase, 3.7 percent, occurred in the Border States,
where lower-than-average increases were rather general among the
industries studied. Wage rates increased most, 8.3 percent, in the
Middle West, where particularly large gains were registered in the
leather industries (14.2 percent) and in metalworking (10.0 percent).
The Great Lakes region was also influenced considerably by the metal
working industries, which showed the largest increase (7.1 percent)
of any of the industry groups in that region.
There is little evidence here of any consistent relationship between
level of wages and extent of increase. Although both the Pacific and
Great Lakes regions—the highest-wage regions—showed greater
increases than the Nation as a whole, the extent of the difference was
slight. The lowest-wage region, the Southeast, also showed a greaterthan-average increase, while the increase for the Southwest was only
slightly less than the National average. The greatest increase, as
has been seen, occurred in the Middle West, where about average
wage rates prevail.
is It would be erroneous to a ttrib u te the relatively rapid rise of incentive wages entirely to increasing
worker productivity. There is, in fact, little evidence of increasing productivity during this period. I t is
probable th a t liberalization of piece rates (or their equivalent) which are notably difficult to stabilize,
was the m ajor factor.
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T a b le 2. —Percent of Increase in Urban Wage Rates in Manufacturing, by Economic
Region and Selected Area, A pril 1943-April 1944
Economic region and urb an a re a 1
All regions____ _____ ______ ____ . . . .
N ew E ng lan d ______________________________________
B oston____________________________________
Providence________________________________ ____
M iddle A tlantic....... .......................................... ...................
Buffalo___ ____________________________ ________
N ew ark_______________________________ . .
New Y ork_________________________
. .
P hilad elp h ia______________________________
P ittsb u rg h ________________________________
Border States__________ ________ _
_____ . .
B altim ore_______ _______ ____ __________________
. . .
Louisville______________ ________ _
Southeast_______________________________ _
A tla n ta ________________ _____ . . . . .
B irm ingham __________________ _______ _____
M em phis_____________ _____ _______ _____ ..
Q reat Lakes________________ .
. . .
Chicago_____________________________ . .
Cleveland_____________________________________
D e tro it._________________ _____________________
Indianapolis. _______ _____ _____________________
M ilw aukee __________________________________
M inneapolis_________________________ __________
M iddle W e s t______ ____ __________________________
Kansas C ity ___________________________________
St. Louis______________________________________
Southw est- ____ ____ ______________ . . .
D allas___ ________ ____________ . _
H ouston_______________________________________
New Orleans__________ ________________________
M o untain____ ____________________________________
D enver____ ___________________________________
Pacific_________________________ _____ _ .
Los Angeles_______ ____________________________
P o rtla n d ______________________________________
San Francisco__________________________________
Seattle__________ __________ ___________________
N um ber of
establish
ments
studied 2
Percent of increase from—
April 1943 October 1943 April 1943
to
to
to
October 1943 April 1944 April 1944
3,612
3.8
1.9
5.8
490
199
3.2
1.3
715
76
93
267
142
44
214
61
63
334
55
45
30
945
261
171
134
44
74
73
2.6
2.9
4.5
6.9
3. 3
5. 5
66
202
45
87
184
46
43
40
120
42
408
159
55
84
61
11.8
8. 3
5.5
3.7
1.6
2.0
3.6
2.2
5.1
1.3
2.8
3. 7
2.8
5.4
5. 9
5.1
2.9
6.4
.5
4.9
6.5
6
6.1
4.8
3.3
4.2
1.2
3.0
2.3
4.6
1.3
4. 6
3.0
3.7
8.3
3.1
10.6
5. 5
9. 2
.8
7.8
5. 4
7. 5
1
6.0
8. 4
.4
1.3
3.3
1 For the nam es of other areas included w ithin the various regions, see footnote 11, p. 600.
2 These figures are included only to indicate the num ber of establishm ents from which pay-roll d ata were
obtained: they refer to the period from October 1943 to April 1944. O ther information representing all
m anufacturing employees in the respective regions was used for weighting purposes.
Intercity Variations
Only in the largest of the individual city areas is the coverage
sufficient to justify presentation of separate figures. Table 2 gives
such information for 28 of the 69 areas.16
These figures, too, show some uniformity with respect to the trend
of wage rates. Eleven of the areas had increases within 2 percentage
points of the national average. Portland, Seattle, and San Francisco
all showed small increases during the year; wage-rate increases in
these cities were partly' offset by a decline in the competence and ex
perience of workers in specific jobs resulting from a high rate of labor
16 There appears to have been no m arked difference in am ount of wage increase b y size of city. The follow
ing figures present weighted averages of the yearly increases of individual areas, classified by size of central
city.
Average
Number of
increase
Size of central city:
areas
(percent)
U nder 100,000.........................................................................................
28
5.9
100,000 and over.................... ..............................................................
41
5.7
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Monthly Labor Review—October 1944
694
turnover.17 The largest increases occurred in Buffalo (11.8 percent)
and St. Louis (10.6 percent), reflecting primarily increases in wage
rates in the metal trades and (in the case of St. Louis) leather prod
ucts.
As would be expected, the uniformity of wage-rate changes was
greater within individual regions than in the Nation as a whole.
All but 6 of the 28 areas experienced greater wage increases in the
first half-year than in the second.
Wage-Rate Changes by Industry Group
The greatest increase in wage rates during the year studied was in
the leather industries, chief of which is the manufacture of leather
boots and shoes (table 3). The 8.7-percent increase reported for this
industry group in all areas combined was influenced considerably by
an increase of 14.2 percent in the Middle West and one of 9.4-percent
in New England. Wage rates in petroleum refining, on the other
hand, showed virtually no change in four of the five regions in which
this industry is of significance. The slight decline in average rates
for all regions combined is believed to reflect the substitution of
inexperienced for experienced workers as a result of labor turnover.
As is pointed out below, several of the industry groups that showed
little change in wage rates during this period had shown substantial
increases prior to the wage-stabilization program.
T a ble 3. — Percent of Increase in Urban Wage Rates in Manufacturing, by Industry
Group, A pril 1943-April 1944
Percent of increase from—
In d u stry group
N um ber of
establish
m ents
studied 1
A pril
1943 to
October
1943
October
1943 to
A pril
1944
April
1943 to
A pril
1944
All industries.............................................................................
3,612
3.8
1.9
5.8
Food and kindred p ro d u cts...................................................
Tobacco m anufactures____________ ______ __________Textile-mill products----------------------------------------------A pparel and allied products------------------ --------------L um ber and tim ber basic products.....................................
F u rn itu re and finished lum ber products-..........................
P ap er and allied products....................................— ...........P rin tin g , publishing, and allied industries-......................
Chem icals and allied products..............................................
Prod u cts of petroleum and coal--------------------------------R ub b er p roducts____________ _____ ______ _______ ___
L eather and leather products....................................... .........
Stone, clay, and glass products..................- ................ .........
Basic iron and steel--------------------- ------------------------ Shipbuilding----------------- ---------------- ------ ---------- M etalw orking (except basic iron and steel and shipbuilding)____________________ _____ ______________
693
26
192
368
84
99
64
295
157
33
25
101
26
27
43
3.2
1.1
2.7
2 .2
1.1
3.1
2.7
5.0
4.3
4.2
5.5
4.8
1,379
(3)
(3)
(5)
3.4
5.2
3.1
2.4
2.3
2.0
4.5
(3)
(4)
(3)
1.8
.2
1.6
1.3
(3)
2.5
4.0
.4
.5
.4
5. 4
1.9
(3)
(5)
5.3
5.4
4.7
3.7
2.3
4.6
8.7
.8
7.4
1 These figures are included only to indicate th e num ber of establishm ents from which pay-roll d ata were
obtained a n d refer to the period from October 1943 to A pril 1944. O ther information representing all
employees in the respective in d u stry groups was used for weighting purposes.
2 Decrease.
2 R epresentation inadequate to show percent of increase.
4 Less th a n a te n th of 1 percent.
5 D a ta not available for A pril 1943.
n jT h is appears to be an unusual case in which the measure of wage-rate changes is appreciably influenced
by a change in the composition of th e labor force. See footnote 5, table 1.
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It is notable that the war and nonwar industry groups show no
sharp and consistent differences with respect to increases in wage
rates. On the whole, the industries engaged primarily in production
for civilian use appear to have raised wages most during the year.
It is probable that local manpower shortages, concentrations of sub
standard wage groups, and other local considerations have been
more important in causing variations in the trend of wage rates than
have the general characteristics of entire industry groups.
Special attention should be given to the changes in wage rates in
metalworking, since this broad group is engaged largely in the manu
facture of war products and because it employs over two-fifths of
all urban factory workers. Wage rates in the metalworking indus
tries rose 7.4 percent from April 1943 to April 1944, with most of
the increase coming in the first 6 months. All regions reported wage
increases in this industry group, the range being from 2.7 percent in the
Border States to 10.2 percent in the Southwest. The food industries
are also of considerable interest, not only because they constitute an
important civilian industry group but because they are represented
in practically all areas. The following figures indicate the percent of
increase in wage rates in the metalworking and food industries, by
region:
Percent of increase in wage rates
Metalworking
Food
New E ngland__
Middle A tlantic _
Border S tates__
Southeast______
G reat Lakes____
Middle W est___
Southw est_____
M ountain States
Pacific Coast_.__
_
.
_
_
_
_
^
5.
8.
2.
5.
7.
10.
10.
5.
8.
8
1
7
1
1
0
2
6
8
4.
3.
7.
6.
4.
5.
7.
4.
2.
9
3
5
5
4
7
1
3
5
SELECTED NONMANUFACTURING INDUSTRIES
The nonmanufacturing industries represented in the Bureau’s study
of wage-rate changes cannot be considered to represent all nonmanu
facturing, in view of the fact that important industries such as con
struction, communications and transportation, and mining have been
excluded. Agriculture and domestic service are, of course, also
omitted. The five industry groups represented, however, currently
employ about 9,000,000 urban workers, of whom a significant propor
tion are white-collar workers. Most of the nonmanufacturing em
ployees represented are paid by the week or month instead of by the
hour, and their wage rates are lower, on the average, than the rates
of factory workers. Both because of their numerical importance and
because of their distinctive characteristics, therefore, the nonmanu
facturing workers form a significant group.
Wage rates in the five nonmanufacturing industry groups combined
rose 9.4 percent from April 1943 to April 1944 (table 4)—consider
ably more than wage rates in factories. This increase is not affected
by changes in the hours of work, since all weekly and monthly rates
were converted to an hourly basis before the changes were computed.
Although three of the five industry groups individually showed
greater increases than the average for all manufacturing, the greatest
increase (12.4 percent) occurred in retail trade, which employs almost
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as many urban workers as the other four groups combined. The
following percentages indicate that large increases in wage rates in
retail stores were experienced in nearly all regions:
Percent
of increase
New England_____________
Middle A tlantic____________
Border S tates______________
S outheast_________________
G reat Lakes_______________
T a ble 4.
6. 7
12.0
14.7
14.9
14.8
Percent
of increase
Middle W est_____________
Southwest________________
M ountain S tates__________
Pacific C oast_____________
15.
21.
7.
4.
5
3
4
9
Percent of Increase in Urban Wage Rates in Selected Nonmanufacturing
Industries, by Industry Group, A pril 1943-April 1944
In d u stry group 1
Percent of increase from—
N um ber of
establish
m ents
April 1943
October
April 1943
s tu d ie d 3 to October
1943 to
to April
1943
A pril 1944
1944
T otal, selected industries.................
3,019
6. 4
2. 7
9.4
Wholesale trad e..................................
R etail tra d e ........... ..............................
Finance, insurance, and real estate.
Local u tilities.......................................
Service tra d e s ....................................
269
1,142
389
p ! 87
1,132
2.5
9. 2
3.9
1. 5
6. 4
2.0
3.0
3.1
1.1
2. 4
4.5
12.4
7.2
2.6
8.9
1 T he specific industries selected to represent these groups in the m easurem ent of wage-rate changes were
as follows: Wholesale trade—general-line wholesale groceries; retail trade— departm ent stores, clothing stores,
and groceries; finance, insurance, and real estate—banks and savings and loan associations; local utilities—
e « mil0 light and power or gas companies; service trades—hotels, power laundries, and auto-repair shops.
2 These figures are included only to indicate the num ber of establishm ents from which pay-roll data were
obtained; they refer to the period from October 1943 to April 1944. Other information representing all em
ployees in the respective nonm anufacturing in d u stry groups was used for weighting purposes.
There is reason to believe that the substantial wage increases
granted by retail stores, the service trades, and certain other nonmanufacturing industries during this period represented a delayed
reaction to the forces that had raised wages in manufacturing industry
many months earlier. Many stores and offices that had not pre
viously been affected by manpower shortages were required to raise
wages in order to keep their workers or attract new ones during this
period. The “substandard wage” policy of the National War Labor
Board also facilitated the raising of rates in the low-wage retail stores
and service trades. It is notable that the wage rates of local utilities,
which increased least during the period studied, have long compared
favorably with those in manufacturing industry, and rose substan
tially prior to the spring of 1943.
General wage increases affected a relatively small proportion of
the nonmanufacturing establishments studied. Only 361 of the
2,098 establishments studied in the first 6 months and only 430 of
the 3,019 studied in the second 6 months reported such increases.
For the most part the raising of rates was accomplished by means
of the merit increases and seniority promotions that are character
istic of these industries.
Among the industries covered, incentive pay is of greatest import
ance in retail trade, particularly in department and clothing stores.
Many stores, in addition to raising hourly rates, liberalized salesmen’s
commissions; sales per salesman, moreover, were at a high level.
These factors, however, were not primarily responsible for the wagerate increases in retailing. The average increase of wage rates for
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time workers only was 10.0 percent, or more than that for any other
industry.
Variations by Region and City
Interregional and intercity comparisons of wage-rate changes in
nonmanufacturing are particularly significant because the same in
dustries have been studied in all localities. Data for all regions and
for 28 large cities are presented in table 5. These show considerably
wider variation than do the comparisons for manufacturing industry.
T able 5. —Percent of Increase in Urban Wage Rates in Selected Nonmanufacturing
Industries, by Economic Region and Selected Area, A pril 1943-A pril 1944
Percent of increase from—
Economic region and urb an area 1
N um ber
of estab
lishm ents
studied 8
A pril 1943
to
October
1943
October
1943
to
A pril 1944
A pril 1943
to
A pril 1944
All regions__________________________ _______ - .........—
3,019
6.4
2.7
9.4
N ew E ng lan d_________________ __________________
Boston
______
Providence
_
____ __________
M iddle A tlantic___________ ______ ______________ —
Buffalo
- ___________ ___
N ew ark
_
_ ______
N ew York
_____
Philadelphia
- _____________
P ittsb u rg h
_ _________________
Border S tates______________________________________
B altim ore
_
_
___
__________________
Louisville
Southeast__________________________________
___
A tlan ta
_ _ ____ _____________
B irm ingham
- - ____ ________ _____ M em phis
_
_
______
G reat Lakes________________________________ ______
Chicago
_ _______
Cleveland
- - _________________ - ..........
D etroit
_ _
_ _____________________
Indianapolis
.
_ ________ _______________
M ilw aukee
_
__
_ ____
M inneapolis
.
__________________
M iddle W est______________________________________
K ansas C ity
. _ _ ______________
St. Louis .
.
_________________________
Southw est. ______________________________________
Dallas
. . __________
H ouston
. ________________
N ew Orleans
_____________
M o u n ta in ________________________________________
D env er. _
_
_
_______ _______________
Pacific____ _____________________ ________________
Los Angeles ___________ ____ _________________
P ortland
. . ___________________
San Francisco
____________________
Seattle
. __________________
501
144
76
483
73
79
159
66
43
222
49
55
424
54
37
45
541
101
65
69
42
49
49
187
32
35
215
43
49
47
180
49
266
69
33
46
37
3.3
2.3
5.6
2.3
6.5
4.6
9.3
4.1
8.2
2.2
8.6
3.0
11.4
5.6
4.0
2.7
2.7
1.8
5.7
5.8
2.4
8.0
4.3
3 12.7
3 7.4
12.9
5.8
11.4
9.5
15.8
13.8
13.7
12.0
13.3
10.6
11.8
11.2
16.1
8.8
11.1
7.5
11.8
11.7
11.0
17.6
21.8
16.3
19.2
6.9
5.1
4.5
6.4
4.3
3.4
1.5
1 For th e names of other areas included w ithin th e various regions see footnote 11, p. 690.
8 These figures are included only to indicate the num ber of establishm ents from which pay-roll data were
obtained; they refer to the period from October 1943 to April 1944. O ther information representing all
employees in the selected nonm anufacturing ind u stry groups in the respective regions was used for weighting
purposes.
3
D a ta for A pril 1943 to October 1943 based only on wholesale groceries and departm ent a nd clothing
stores.
All regions showed greater increases in wage rates in the combined
nonmanufacturing industries than in manufacturing. Nonmanu
facturing wage rates in all regions were raised more in the first halfyear than in the second. The two lowest-wage regions, the Southeast
and Southwest, showed the largest increases in nonmanufacturing
wage rates (13.8 and 17.6 percent, respectively), and the Pacific Coast,
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where the Nation’s highest wage rates prevail, showed the smallest
increase (4.5 percent). In five of the nine regions the average increase
exceeded 10 percent.
In general, the rank of the various regions with respect to the
increase in urban wage rates in individual nonmanufacturing indus
tries was about the same as for the five industry groups combined.
Thus, the Southwest showed the largest increase in three of the five
industry groups and the second largest in the remaining two. The
Pacific Coast region showed relatively small increases in all of the
four industry groups for which information was available for the
full year. 18
Among the larger individual urban areas the change in wage rates
during the year ranged from an increase of only 1.5 percent in Seattle
to one of 21.8 percent in Dallas.19 Only Boston, Providence, Buf
falo, Denver, Seattle, and Los Angeles showed smaller increases in
nonmanufacturing wage rates than in manufacturing. There was a
marked tendency for those cities with the lowest wage levels in
nonmanufacturing industry to show the greatest increase in wage
rates between April 1943 and April 1944.20 Among the exceptions to
this tendency was Detroit, which, in spite of its high rank with respect
to nonmanufacturing wage rates, was fourth from the top in percent
of increase.
General Wage Increases in Manufacturing,
January 1941-April 1943
r Information similar to that presented in the preceding section is
not available for the period prior to April 1943. Hitherto unpub
lished material regarding general wage changes put into effect by
several thousand urban manufacturers, however, throws new light
on the nature and extent of wage movements between January 1941
and April 1943. During most of this period, general wage increases
(i. e., increases affecting the hourly or piece rates of substantial groups
of workers simultaneously) provided the customary means of raising
factory wages 21 and undoubtedly accounted for the preponderant
share of all wage-rate changes.
NATURE OF INFORMATION
The Bureau’s information on general wage increases is limited
primarily to increases simultaneously affecting 10 percent or more of
the workers in a given factory. In rare cases increases affecting
smaller groups are included; as, for example, a raise affecting all
employees in a key occupation. Most such increases during the
period described here were uniform for an entire occupation, division,
18 D ata on th e increase in Pacific Coast u tility wage rates are no t available for the period prior to October
1943.
is Wage rates in nonm anufacturing industries increased slightly more in larger th a n in sm aller cities,
although this relationship was no t found in all regions. T h e average increase for the cities of 100,000 or
more was 9.6 percent while th a t for smaller areas was 9.3 percent.
20 See In te rc ity V ariations in W age Levels, in M o n th ly Labor Review, A ugust 1944.
21 In nonm anufacturing industries general wage increases appear to have been m uch less im portant as
a means of raising wage rates, while m erit increases and other types of individual adjustm ent were more
common. A lthough there is convincing evidence of an appreciable increase in the wage rates of n o n
m anufacturing workers during this period, an analysis of reports on general wage increases in several
thousand nonm anufacturing establishm ents reveals th a t this ty p e of wage adjustm ent was of m inor im
portance.
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Wartime Wage Movements
699
or shop; for example, 5 percent or 5 or 10 cents per hour for all main
tenance workers. Many of the increases affected the entire factory
labor force. Office employees were not covered.
As compared with the wage-rate changes described in the preceding
section, general wage changes are more limited, since they exclude
merit increases and other types of wage adjustment affecting indi
viduals or small groups.22 In the early years of the war, to be sure,
prior to the passage of the Stabilization Act in October 1942, indi
vidual wage adjustments were relatively unimportant in their in
fluence on wage levels, particularly in the larger establishments. For
all of the early war period, however, and particularly for the period
from October 1942 to April 1943, general wage increases provide
only a minimum measure of the rise of wage rates.
Information regarding general wage increases was obtained by the
Bureau’s field representatives in connection with their visits to man
ufacturing establishments in the spring and summer of 1943. The
findings presented in this article summarize general wage increases
reported for characteristic industries in 40 large urban areas. Usable
data were obtained from more than 5,700 establishments employing
approximately 1,750,000 workers. Establishments employing fewer
than 9 workers were not visited.
In summarizing the information on general wage increases the
amount of each hourly increase was first expressed as a percentage
of the estimated straight-time hourly wage bill of all workers.23 The
percentages representing the various establishments, including those
that had granted no general raises, were then combined into weighted
averages representing industry-area units. These weighted averages
were further consolidated to represent broad industry groups and
broad regions.
The »establishments for which general wage increases have been
analyzed are only roughly representative of urban manufacturing.
Although careful weighting has improved the usefulness of the ma
terial reported, it is recognized to be subject to an appreciable margin
of error. The summaries presented below should, therefore, be re
garded as approximations, suitable primarily as a basis for broad,
general conclusions.
EXTENT OF GENERAL WAGE INCREASES
The findings appearing in table 6 indicate that general wage in
creases alone raised urban factory wage rates by approximately 14
percent from January 1941 to April 1943. A 13-percent increase
was effected in the 21 months prior to the passage of the Stabilization
Act, while the 6 months following the passage of that act witnessed
an increase of only 1 percent. As has been indicated above, these
figures may be considered to represent minimum measures of the
change in wage rates.
22
In term s of th e list of factors influencing hourly earnings, presented in table 1, general wage increases
include factors 1 and 2, b u t exclude factors 3 and 6. Since, in sum m arizing the increases reported, constant
weights were assigned to th e areas, regions, and establishm ents concerned, the resulting measure is clearly
free from influence by the other factors.
22 Tflus an across-the-board increase of 5 cents per hour in a factory paying wage rates averaging $1.00 per
hour was expressed as a 5-percent increase; a 10-percent increase affecting only half of the w orkers was also
expressed as a 5-percent increase.
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700
T a ble 6. —Percent of Increase in Urban Wage Rates in Manufacturing, Caused
Exclusively by General Wage Increases, January 1941-April 1943 1
Percent of increase from—
Region and in d u stry group
N um ber of
establish
m ents
studied 1
January
1941 to
October
1942
October
1942 to
A pril
1943
January
1941 to
A pril
1943
All re g io n s ___ ____________________________________
____________
N ortheast and M iddle A tlantic .
Southeast, Southw est, and Border States_________
G reat Lakes and M iddle W est_________________
M ountain and P a c ific ___________________ _____
5, 726
2,028
962
2,154
582
12.6
13.3
14.3
11.7
11.1
1.1
1.2
.8
.8
2.2
13.8
14.7
15.2
12.6
13.6
Food and kindred p ro d u cts_________________________
Tobacco m anufactures. _____________ ____________
Textile-m ill products ____________________________
Apparel and allied products _______________________
L um ber and tim ber basic p ro d u c ts _________________
F u rn itu re and finished lum ber p roducts_____________
P aper and allied products. _________________________
P rin tin g , publishing, and allied industries___________
Chem icals and allied pro d u cts______________________
Products of petroleum a n d coal_____________________
R ub b er products __________________ ____________
L eather "and leather products _______________________
Stone, clay, and glass p r o d u c ts _____________________
M etalw orking 4__ _________ _______ ______________
792
32
362
611
44
97
90
468
177
31
25
160
27
2,810
11.3
13.3
19.4
11.6
(3)
9.3
7.7
4.7
9.8
15.8
12.3
13.1
(3)
13.3
1.3
.8
.3
2.3
12.7
14.2
19.7
14.1
(3)
(3)
.5
2.2
1.0
1.4
.0
.6
1.1
.9
(3)
(3)
9.9
10.0
5.8
11.4
15.8
13.0
14.3
14.3
1 D a ta cover only u rb a n areas of 100,000 or more.
2 These figures are included only to indicate the num ber of establishm ents from which pay-roll d ata were
obtained. O ther information representing all m anufacturing employees in the respective regions and
in d u stry groups was used for w eighting purposes.
3 R epresentation inadequate to show percent of increase.
* Including shipbuilding and basic iron and steel.
A comparison of these findings with available measures of average
hourly earnings is of considerable interest. Gross average hourly
earnings rose 38 percent from January 1941 to April 1943, or more
than twice as much as the rise resulting from general wage increases.
Much of the increase in earnings, however, reflected the relative growth
of the high-wage war industries and an increase in premium payments
for overtime work. If rough correction be made for these factors,
the remaining “adjusted” increase in average hourly earnings is
25 percent. For reasons discussed below, this figure also appears to
exaggerate somewhat the extent of changes in wage rates and may be
considered a maximum measure.
Analysis by broad region indicates that general wage increases were
common in all parts of the country during this period. The greatest
increase of this type took place in the southern section of the country
(Southeast, Southwest and Border States), followed by the North
east, the Mountain and Pacific States, and the Great Lakes and
Middle West. It must be remembered, however, that the picture
presented here is incomplete, since it includes general wage increases
only. It is probable that wage adjustments of this particular type
are more characteristic of the large, organized factories of the North
east than they are of the smaller southern factories, in which union
ization is less common. Although the regional detail provided in
table 6 is of value in demonstrating the wide extent of general wage
increases, it would be unwise to regard the differences shown as
reliable measures of regional variations in the wartime trend of wage
rates.
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701
The data for separate industry groups may also be somewhat mis
leading and must be interpreted with caution. It is indicated, how
ever, that general wage increases in the textile-manufacturing indus
tries were sufficient to raise wage rates by almost 20 percent, while
those in printing and publishing raised wage rates by less than
6 percent. Most of the industry groups, however, showed about the
same average increase as all manufacturing combined. Several
groups that showed little or no increase in wage rates in the year fol
lowing April 1943 are seen to have granted substantial increases
during the preceding 27 months; the petroleum and chemical-products
industries are outstanding examples.
ESTIMATED CHANGE IN WAGE RATES
It has been pointed out above that the increase resulting^from
general wage changes between January 1941 and April 1943 constitutes
a minimum measure of the increase in wage rates during this period,
while the rise of adjusted average hourly earnings constitutes a
maximum measure. The observation regarding adjusted hourly
earnings, however, justifies further discussion and qualification.
January 194-1 to October 1942.—Correction of hourly earnings for
changes in the relative importance of the war industries and premium
overtime pay undoubtedly removes the two factors that were pri
marily responsible for the divergent trends of wage rates and hourly
earnings during the early years of the war. It should not be assumed
without question, therefore, that the increase in adjusted hourly
earnings exceeded that of wage rates; it will be seen, in fact, that
during a later period (April 1943 to October 1943) wage rates actually
rose more than adjusted hourly earnings.
There is reason to believe, however, that prior to the passage of
the Stabilization Act adjusted hourly earnings increased appreciably
faster than wage rates. The increase in shift differentials alone
raised hourly earnings by almost 2 percent over the January 1941
base.24 Another important factor was the relative increase of employ
ment in the higher-wage regions and cities.25 Incentive earnings
undoubtedly rose appreciably during this early period, as a result of
increased productivity. On the other hand, there was no significant
increase in the proportion of women in manufacturing industry
during this period and the increasing proportion of unskilled and
semiskilled workers could not have been sufficient to offset the
important forces tending to raise hourly earnings.
These observations are of help in arriving at a rough estimate of
the probable increase in wage rates from January 1941 to October
1942. This estimate may confidently be placed between the limits
of 13 percent (the amount of general wage increases in urban indus
try) and 21 percent (the increase in adjusted average hourly earnings).
The upper limit, however, may be reduced by approximately 2 per
centage points to eliminate the influence of increased premium pay
ments for work on extra shifts. It appears reasonable to assume that
the effect of the increase in the proportion of unskilled and semiskilled
** See T rends in Factory Wages, 1939-43, in M onthly L abor Review, N ovem ber 1943 (p. 882).
5 Some, b u t not all, of the effect of interregional and intercity shifts has been elim inated by correction
for shifts among industries.
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Monthly Labor Review—October 1944
workers is approximately offset by the influence of the relative increase
in the proportion of workers in high-wage regions and cities. The
increase in hourly earnings due to increased productivity of incen
tive workers is estimated at 2 to 3 percentage points, which seems con
servative. This, however, leaves only 3 to 4 percentage points to repre
sent merit increases and other individual wage adjustments, plus any
underreporting of general wage increases. It is doubtful whether the
influence of these factors could have been less than this. Seventeen
percent is estimated as the most probable increase, although the
actual amount may have been 1 or 2 percentage points above or
below this figure.
October 194^ to April 1948.—The increase in adjusted hourly earnings
from October 1942 to April 1943 amounted to 3.3 percent and reflected
a substantially lower monthly rate of increase than occurred in the
preceding period. In view of the changes in the organization of
industry that had already been accomplished, and in view of the sub
stantial increase that occurred in the proportion of women workers,26
it is doubtful whether adjusted hourly earnings rose appreciably more
than wage rates during this 6-month period.
The estimate of wage-rate changes, however, may, in this case,
be built up from the minimum of 1 percent representing general wage
increases. Taking this approach, it remains only to add the esti
mated influence of merit increases and other individual wage adjust
ments. These accounted for an increase of about 3 percentage points
in the following 6-month period, after relaxation of the restrictions on
individual adjustments. During the period from October 1942 to
April 1943 the extent of such adjustments was undoubtedly somewhat
less, and is here estimated at a rounded 2 percent.
Comparative Trends in Earnings and Wage Rates,
January 1941-April 1944
On the basis of the data presented in the earlier sections of this
report it is now possible to estimate the increase in wage rates in
manufacturing industry during the entire period from January 1941
to April 1944, and to compare this estimate with various measures of
increases in earnings. Such comparison is afforded by table 7, which
gives separate detail for the pre-stabilization period and for three
6-month periods since the beginning of wage stabilization.
The increase in urban wage rates during the entire period since
January 1941 is estimated at about 28 percent. Rising wage rates
thus accounted for about two-fifths of the increase in average weekly
earnings (71 percent) and for less than three-fifths the increase
in average hourly earnings (48 percent). “Adjusted” hourly earn
ings, corrected roughly for increases in premium overtime pay and
for changes in the relative importance of the various industries, rose
33 percent during the period, or only about one-fifth more than urban
wage rates.
26 B oth th e n um ber and th e proportion of women workers increased more in this period th a n in any other
6-m onth period since th e outbreak of th e war.
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T a b le 7.— Comparative Summary of Changes in Earnings and Wage Rates in
Manufacturing, January 1941—A pril 1944
Percent of increase per m onth 1
Percent of increase
Period
T otal period (January 1941-April
1944)__________________________
Pre-stabilization period (January 1941October 1942)__________________
Stabilization period (October 1942A pril 1944)_ ___________________
October 1942-April 1943_____
A pril 1943-October 1943_______
October 1943-April 1944_______
N um
ber of Gross Gross
m onths weekly hourly
earn earn
ings
ings
“ A d
“ A d
Gross Gross justed” U rban
justed” U rban weekly
hourly
hourly wage earn hourly
earn earn wage
earn rates
rates
ings
ings
ings 2
in g s 2
39
71.0
48.2
33.0
3 27. 5
1.3
1.0
0.7
3 0.6
21
46.0
30.7
20.7
3 17.0
1.8
18
6
6
6
17.2
9.2
5.6
1.6
13.3
5.7
4.7
2.4
10.2
3.3
3.5.
3.1
39.0
3 3.0
3.8
1.9
.9
1.5
.9
.3
1.3
.9
3.8
.7
.9
.8
.4
.5
.5
.6
.5
3.5
3.5
.6
.3
1 I n obtaining these m onthly averages it has been assumed th a t th e increase for each m onth is com puted
as a percentage of th e rate a t th e beginning of th a t m onth. In m ost cases, therefore, the m onthly figures are
slightly lower th a n those com puted by dividing th e percentage for an entire period by the num ber of m onths
in the period.
2 H ourly earnings, excluding prem ium paym ents for overtim e, and w ith industries w eighted according to
1939 em ploym ent. T his corresponds w ith column (e) of table 1.
3 P a rtly estim ated.
WAGE CHANGES BEFORE AND AFTER STABILIZATION
What the trend of wages would have been in the absence of wage
stabilization will never be known, but table 7 shows clearly that the
rise has been less steep since the beginning of the stabilization program
than it was in the early years of the war. From January 1941 to
October 1942, a 21-month period, wage rates rose 17 percent,
while increases during the following 18 months totaled only 9 per
cent. The monthly rate of increase dropped from about 0.8 percent
before stabilization to 0.5 percent in the stabilization period.27
The decline in the rate of increase has not proceeded without
interruption, however. Despite the intensification of the stabiliza
tion program in the spring of 1943, wage rates rose slightly more in
the next 6 months than they had risen in the preceding half-year
period. The greatest degree of stabilization was achieved from
October 1943 to April 1944, when the increase in urban wage rates
averaged only 0.3 percent per month.
In conclusion, it is of interest to note that the factors chiefly respon
sible for wage movements have shown marked changes during the
period covered by this study. In the early years of the war, changes
in wage rates in manufacturing industry resulted primarily from
general wage increases. Premium payments for overtime work and
the growing importance of the high-wage war industries were the
chief additional factors tending to raise average hourly earnings,
although other factors exercised some influence. Weekly earnings
were increased substantially by lengthening hours of work. Under
wage stabilization, however, merit increases and other individual
wage adjustments replaced general wage increases as the chief in27 T his drop appears to have been closely related to the inauguration of wage stabilization. A stu d y oi
q uarterly changes in adjusted hourly earnings indicates th a t the increase of 3.0 percent from Ju ly to October
1942 was th e greatest increase for any quarter in th e w ar period. From October 1942 to Jan u a ry 1943, how
ever, th e increase am ounted to only 1.5 percent, w hich is .about th e average for subsequent 3-month
periods.
6 1 0 0 5 4 — 44------ 3
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Monthly Labor Review—October 1944
U+S- CV a tvf' rI!e1chang(? ln the relative importance of the
war industries has been of decreasing importance. Weekly hours of
work and premium payments for overtime have leveled off As a
result of these developments the differences in the trends of wage
rates and hourly or weekly earnings have, for the time being, almost
disappeared. In the half-year prior to April 1944 theg increase
of gross hourly earnings only slightly exceeded, and that of weekly
eammgs failed to attain, the rise of wage rates.
^
his experience has deep significance for the future. As a result of
t r S ^ f “ °f h°U? °f T k and, the S” ™ * of civilian industry, the
,
riTfeS and °f K'"r y “ d weekly earnings will inevitably
again diverge. If wage rates are held at a constant level, earnings
must necessarily fall. It is possible that even a modest ¿crease ff
rates would be accompanied by a decline in earnings. In view of
¡ipeJ ta/ g+l^ ° p0ir tlr n of the national income that consists of wage pay
ments, the level of wage rates will be a factor of enormous importance
m the post-war development of the Nation
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Federal Reserve Bank of St. Louis
Labor C onditions in France
Summary
ALTHOUGH France had highly developed manufacturing industries,
more people were employed in forestry and agriculture than in manu
facturing. At the time of the last published census (1931), 7,637,433
persons were engaged in forestry and agriculture and 6,837,684 in
manufacturing. The total population of the country in that year was
41,834,923, of whom 52 percent were gainfully occupied. Managers
and employers and persons working alone totaled 8,990,590—an un
usually high proportion, indicating the importance of small-scale
enterprise and independent work in France.
France has a number of coal-mining districts, particularly in the
northern section of the country, but under normal conditions was
obliged to import coal for industrial use. The North was also the
center of the great textile industry. Paris and its environs was, how
ever, the pre-eminent center of industrial activity as well as the
political seat of government before the German occupation. As a
result of the concentration of industry in the region of Paris, living
costs and wages were higher there than in other sections of the country.
Wage rates were substantially unchanged from 1929 to 1936 but an
upward movement of wages began with the social laws enacted by the
Popular Front Government in 1936. The wage structure was par
ticularly affected by the law establishing the 40-hour week, which
provided there should be no reduction in the remuneration of workers
in industries in which the 48-hour week had been in effect. Wages of
female workers were generally lower than for male workers. Shortly
after the armistice with Germany, the State assumed total control of
the movement of wages. Minimum hourly rates for various classes
of activity were established by an order issued jby Pierre Laval in
June 1943. The minimum rates ranged from 6 to 10 francs, according
to zone. In principle, the avei age wage could not exceed the minimum
by more than 15 percent. Women’s rates were fixed at 80 percent of
the corresponding rates for men.
The 40-hour week established by the Popular Front Government
in 1936 was in practically universal effect by the middle of 1937 but,
w’hen war became imminent, legislation was passed which, although
retaining the principle of the 40-hour week, fixed the normal week at
45 hours and provided for a 60-hour week for establishments working
directly or indirectly for the national defense. At the outbreak of the
war in September 1939 a general 60-hour week was decreed and longer
hours were authorized when necessary. After the invasion there was
widespread unemployment and a flexible workweek was introduced,
with hours much below 40 in some industries. As German demands
for lphor in the war industries increased, however, measures were
taken to reduce the number of persons employed in French enterprises
by revising the hours-of-work regulations in establishments working
short time, and thus releasing the desired manpower which could be
put at the disposal of the German recruiting authorities.
The organized labor movement played an important part in the
enactment of the Popular Front laws under the Socialist Premier
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705
706
Monthly Labor Review—October 1944
Léon Blum. The Vichy Government dissolved both trade-union
and employer organizations and their places were taken by profes
sional syndicates organized under the French Labor Charter. The
free trade-unions survived underground, however, and continued
their struggle against the dictatorship of Vichy and Berlin.
Contractual agreements between employers and employees were
not so deeply rooted in French as in English custom but were stimu
lated by a Popular Front Law on collective agreements passed in
1936, which was followed by the conclusion of a large number of
agreements. Conciliation and arbitration machinery had been estab
lished by a law passed in 1919 and the scope of this machinery was
much extended in 1936 and 1937; in 1938 a High Court of Arbitra
tion was created. After the outbreak of war, however, the con
ciliation and arbitration system was suspended and a new system of
labor relations was introduced to fit war conditions. Under the
Vichy Government, this system was supplanted by an organization
of the totalitarian type.
The cooperative movement was well established in France. In
1934 there were 74,259 associations of all types, with a membership
of 4,435,050. About nine-tenths of the consumers’ cooperatives were
in northern (occupied) France. Although both they and the associa
tions in Vichy France were reorganized (by force) along corporative
lines, reports indicate that they were still in operation in June 1943.
Compulsory insurance, covering sickness, maternity, invalidity,
old age, and death and providing benefits for dependent children in
the event of the disability or death of the insured person, was pro
vided by a law passed in 1930. Two systems were established by
the law—-one covering industrial and commercial workeis and domestic
servants, and the other, agricultural workers. The wage limit for
inclusion in the system was raised in 1936 and again in 1938, and the
Vichy Government in 1942 made considerable changes, extending
the liability to insurance by raising and in some cases abolishing the
wage limit, and issuing regulations to simplify the operation of the
scheme; the agricultural scheme was also reorganized. Unemploy
ment insurance was organized on a voluntary basis by trade-union
and mutual-assistance funds which received a State subsidy.
RESTORATION OF THE FRENCH GOVERNMENT
In accordance with an agreement concluded between the Allied
Governments and the chief of the military section of the French
Committee of National Liberation, early in August 1944, self-govern
ment was to be established in the liberated areas as rapidly as the
military situation made this feasible. The establishment of a Pro
visional French Government in Paris, headed by General Charles de
Gaulle as president of council, was announced by the French Com
mittee on August 30. The Provisional Government included a former
Deputy who was appointed as liaison officer between the Provisional
Government and the temporary assembly, and General Georges
Catroux was made coordinator of Moslem questions and Commis
sioner of State for French North Africa. Fourteen commissioners—-a
rank equivalent to that of cabinet minister—were also appointed.
All of the,Ministries were in operation by September. On September
10 it was announced that the “French State” of Marshal Petain
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Labor Conditions in France
707
and all its major laws had been abolished and, on September 12, that
France had returned to the laws of the Third Republic.
A radio broadcast of September 7, 1944, reported that Adrien
Tixier, who holds the labor portfolio in liberated France under General
de Gaulle, had announced an increase in wage rates of French workers,
retroactive to September 1. It is expected that the 44-hour week
will be re-established in the near future and that overtime will be
paid wherever war exigencies or reconstruction make longer working
hours necessary. A change in the social-insurance system is also
forecast.
The right of Frenchmen to choose their form of government and
officers of the government has been affirmed by General de Gaulle
on numerous occasions. After his arrival in Paris he stressed the
necessity of holding a general election as soon as possible, to enable
the French people to select then’ own government, and expressed the
belief that there should be no call of a national assembly not elected
by the people. The Provisional Government will remain substan
tially the same until war prisoners and deportees can be returned and
can take part in the general election.
A “consultative chamber” of the Resistance Council, it was reported,
was to meet in Paris to consider a constitution for the projected
Fourth Republic.
The post-war program of the chief labor organization in pre-Vichy
France—-the Confédération Générale du Travail—was summarized by
one of its secretaries at the headquarters in Paris in the middle of
September. He stated that the organization would demand (1) im
portant reforms which would satisfy the needs of the French workers,
and (2) that injustices caused by the Vichy Government and the Nazis
should be righted. Specific demands were an immediate increase of
50 percent in wages, since it was stated wages had increased only 18
percent during the occupation whereas living costs had increased
200 percent. For the period of the present emergency it was con
sidered that factories engaged in war work, which comprised practi
cally all industries, should be requisitioned by the Provisional Govern
ment and officials installed to control profits and direct administra
tion. Nationalization of the mines, electric-power industries, chemical
industries, the steel industry, and the insurance companies was also
demanded, and it was stated that the country’s banks should be
strictly controlled by the Bank of France, which should be nationalized.
Economic Resources of the Country
Manufacturing industries were highly developed in France, partic
ularly the manufacture of automobiles, iron and steel and machine
products, chemicals, textiles, and luxury goods, but forestry and
agriculture were even more important. France has a number of
coal-mining districts, particularly in the northern section of the
country, but under normal conditions was obliged to import coal
for industrial use. The country has a variety of minerals, of which
iron ore, potash, bauxite, pyrites, and antimony are abundant and
zinc, lead, manganese, and gold are present in certain quantities.
The North is also the center of the great textile industry in and around
Lille, but Paris and its environs constituted the chief center of in
dustrial activity as well as the political seat of Government until the
fall of France. Shipbuilding was carried on in various coastal cities.
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Monthly Labor Review—October 1944
Occupations of the Labor Force
The latest data regarding the industrial distribution of the popu
lation are contained in the 1931 General Census. A census was
taken every 5 years m France but at the time of its fall in 1940, the
results of the 1936 census had not been published except for a part
oi the first volume covering only general population figures.
01 the total population of 41,834,923 in 1931, 21,611,835, or 52
percent, were gainfully occupied. Forestry and agriculture accounted
lor 7,637,433 persons and manufacturing for 6,837,684. French
employers and persons working alone aggregated
8,990,590, showing the relative importance of small-scale enterprise
and independent work in France. Mines and quarries emploved
440,677.
Table 1 shows |he gainfully occupied population in France in 1931,
by branch of activity and by sex.
T a b le 1 —Gainfully Occupied Population of France, by Occupational Groups, Sex,
and Industrial Status, 1931
P e r
Transpor Com
Class and sex of
merce, Liberal sonal
F i s h F o restry M in e s M an u tation
All
groups
and
agri
and
and ware banks, proies service Public
workers
ing
do- services
culture quarries facturing housing
and
sions and
m e stic
theaters
servants
T o ta l g a in fu lly
e m p lo y ed ..
21, 611, 835 66. 747 7, 637, 433 440, 677 6. 837, 684 1, 069, 356
M a le ...
13,711,487 63, 396 4, 447,051 429,308 4, 725. 194 934, 746
F em ale..
/, 900, 348 3, 351 3,190, 382 11, 369 2,112, 490 134,610
M anagers or em
ployers:
M ale____
3, 392, 423 11, 759 2, 362, 758 5,244 522,064
24, 633 409, 569 34,981 21,415
F em ale..
2,844,155 1, 291 2, 303,017
140 188, 067
6,105 316,813 17, 451 11, 271
Salaried employees:
M ale____
1,958, 040
505
4, 823 16, 431 347, 368 159, 531 576,812 141, 323 31, 313
F em ale...
1,066,845
126
1, 058 1, 295 191, 213
25,132 446, 355 182, 779 12, 617
Wage earners:
M ale . .
6, 491, 660 18, 789 1, 543, 364 401, 330 3, 221, 360 538, 908 269. 327 34. 318
79. 786
Fem ale .
2, 651,885 1, 517 576, 961 9,881 1,196, 231
31, 626
83, 522 43, 639 665, 775
U nem ployed:
M ale___
308,141
986
20, 356 3,705 165, 210
71, 892
31,171 10, 867 3, 954
Fem ale__
144, 674
4
3, 547
43
74, 703
13^ 950
17, 317 15, 360 19. 750
S e lf-e m p lo y e d ,
hom e workers,
etc.:
M ale___
1, 561, 223 31, 357 515, 750 2.598 469,192 139, 782 251, 293 111, 152 40,099
Fem ale___
1,192, 789]
413 305, 799
10 462, 276
57, 797 293, 211 65, 887 7,396
679,934
206, 270
384, 478
42, 733
Fiance normally had a considerable contingent of foreign workers.
In 1931 they numbered over 1}{million. First in numerical importance
were workers from Italy, followed in order by those from Poland, Spain,
and .Belgium, and finally by French subjects from North Africa. In
peacetime, there was a considerable movement each day of Belgian
workers who lived in Belgium but worked in France. Like other
countries that raise a large volume of agricultural products, France
required the services of extra workers during the season.
Employment Conditions
Changes of employment in France were shown by a series of index
numbers beginning in 1930 and running up to August 1939—the month
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Labor Conditions in France
709
before the outbreak of war. The series was based on a sample group of
2.363.000 wage earners and salaried employees in mining, industry,
transportation, and commerce, using 1930 as 100. Employment pro
gressively declined from 1930 through 1935, when the index was 73.5.
After the enactment of the Popular Front laws in 1936, employment
improved slightly in the following year, to an index of 74.1 . By March
1939, under the impetus of war production, the index was 84.6. How
ever, there was some deterioration in the employment situation by
August 1939, when the index dropped to 81.2.
UNEMPLOYMENT, AND MEASURES OF CONTROL
The effects of the world-wide depression were not felt as early in
France as in most of the industrialized countries, although statistics
are unlikely to reflect the full volume of unemployment in a country
in which there is no general unemployment-insurance system and,
therefore, neither compulsory registration nor the opportunity to
benefit from registration. This is the case in France where the only
regularly recorded unemployment has been among those voluntarily
registering for relief or with the employment exchanges in an effort
to secure work. Such statistics as are available show that in 1929
only 928 unemployed persons were listed as on relief and 10,052 as ap
plicants for work. The numbers on the rolls for unemployment relief
and applications for work increased steadily from 1929 to 1936. In
the latter year the average number of unemployed on relief was about
432.000 and work applications about 475,000. There was some re
cession in the 2 following years but by October 1940 the numbers on
relief and registered for work were at a peak of 1,100,000. By Jan
uary 1941, the totals had dropped by approximately one-third and at
the end of that year were in the neighborhood of 200,000.
Various measures were taken by the Vichy Government to cope
with the unemployment following the armistice. These included the
prohibition of multiple employment and overtime, restrictions on the
employment of women, compulsory termination of the employment
of married women in the State services in some cases, and fixing the
quota of posts both in public and private employment which could
be filled by women.
Preliminary measures were taken, providing for the reinstatement of
demobilized workers and salaried employees by their former em
ployers, in a legislative decree of April 1939. This decree was sup
plemented by laws passed in September 1940 and June 1941. The
legislation applied to demobilized men in general, and therefore to re
turned prisoners of war. Acts passed in February and June 1942
and a decree of July 1942 contained provisions for compulsory rein
statement, placement, and retraining. In addition, a medical service
was started for returned war prisoners to help them to become physi
cally fit for work, and various measures were adopted to facilitate
their readjustment to civilian life.
WARTIME EMPLOYMENT CONDITIONS
In July 1938, a law was passed providing for the requisitioning of
both industry and labor in the event of war. By this and a later decree
the worker lost his right to move freely from job to job. General
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Monthly Labor Review—October 1944
centred of labor was placed in the hands of the Minister of Labor, who
had charge of the occupational and geographical allotment of the personnel between public and private employing services—military or
cml, industrial, commercial, or agricultural—and the specific assign
ment ot personnel to establishments and farms.
Such a high proportion of the adult male population was placed
under aims when the war started that it became increasingly difficult
to man the war industries. As the labor-supply problem grew worse
the Government used its power to recall mobilized men who, because
‘
qualifications, were indispensable on war work
Rigid control over employment was established by a Vichy law of
September 1942, which provided that all male citizens between the
ages of 18 and 50 years and all unmarried women between the ages of
21 and 35, who were shown by a medical examination to be physically
ht, could be required to carry out any work judged by the Govern
ment to be m the higher interests of the nation. The law provided
that no worker might be dismissed and no labor contracts canceled in
industrial and commercial enterprises without the authorization of
the labor-inspection service, and no one might be hired without such
authorization.
The recruitment of French labor for work in Germany began in 1941
and in the spring of 1942 the German Government began to press the*
Laval Government to supply an increasing number of workers (par
ticularly trained workers) for German factories. These demands
were followed by threats. Although the French Government insisted
ioi a time upon recruitment on a voluntary basis, a redistribution-oflabor act passed in September 1942 furnished the means of exerting
sufficient pressure on the workers to induce them to sign contracts
with German firms, while nominally retaining the voluntary prin
ciple. One of the inducements offered workers to volunteer for em
ployment in Germany was the release of a certain number of war
prisoners for a fixed number of labor volunteers. Various reasons
were advanced by the French Government, and repeated by the prop
aganda services, to justify the sending of French labor to Germanv:
ihe social argument of the fight against unemployment; the occupa
tional argument that workers and technicians would have the op
portunity of keeping up and even improving their skill; the political
argument of the desirability of Franco-German understanding and of
collaboration m the struggle against Bolshevism and in the building
oi a new Europe; and, lastly, the moral and sentimental argument in
iavor oi the release of prisoners of war.
As voluntary recruitment failed to show the desired results, more
and more pressure was applied on the workers. By the end of March
1942 between 140,000 and 150,000 skilled and unskilled workers
had been recruited, mainly in the Paris region. Of this number about
20 percent were women, and between 22 and 23 percent of the recruits
were colonial or foreign workers living in France. Subsequently,
thousands of these workers returned to France on various pretexts.
In June 1942, 350,000 more workers were demanded and in February
1943, 250,000 more. In order to get these workers, conscription for
compulsory labor service was introduced, and two acts were passed
making young men between the ages of 20 and 23 liable for conscrip
tion. In the compulsory recruitment, violent and even brutal meas
ures were resorted to, and many workers tried to evade recruitment
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Labor Conditions in France
711
either by hiding in the interior of the country or by escaping to neutral
countries (Spain or Switzerland). Since the quota of younger men
was not obtained, measures were taken to conscript men under 50
years of age who were not liable to compulsory labor service and were
employed in various capacities in commerce, the hotel industry, banks,
insurance companies, and similar establishments. Later a law pro
vided for the suspension of prison sentences for persons vho could be
released without danger to the public welfare, in order that they
might be sent to work in Germany.
Males between the ages of 18 and 50 years were required as of April
20, 1943, to have an employment certificate and were prohibited from
leaving the employment specified on the certificate without a transfer
order issued by the General Commissioner for Compulsory Labor
Service. This card had to be shown upon demand.
The second quota—250,000 workers—demanded by Germany in
February 1943, was sent to join the 350,000 to 400,000 already
working in German factories and on German construction sites;
210,000 more were added in June 1943. At that time over 2 million
Frenchmen (including prisoners of war) were in Germany and at
Germany’s service; these were in addition to all the workers required
by and for the benefit of the occupation authorities on French territory.
E M P L O Y M E N T A G E N C IE S
Public employment agencies were first placed in operation in 1904,
and in 1925 a law made it mandatory for cities of more than 10,000
inhabitants to establish free labor exchanges. In addition to the
municipal offices the Government maintained offices in the various
departments. Under the 1904 law private fee-charging agencies were
permitted to collect a maximum fee of 60 francs from employers, but
no fee could be charged to workers. Advisory councils, which in
cluded equal numbers of employers and employees in their member
ship, were established by the 1925 law. In 1936 the Ministry of Labor
abolished the divisional offices and entrusted the coordination of de
partmental and municipal offices to the divisional inspectors of labor.
A further centralization of the employment offices was carried out
under a decreee of March 1939, which made the departmental offices
subject to the direct authority of the Ministry of Labor.
After war was declared, decrees were issued regulating the hiring
and firing of workers, which placed under the jurisdiction of the labor
inspectors and the departmental labor-mobilization services all the
municipal employment offices and the free offices (established by
professional syndicates of workers, or employers, or both), the labor
exchanges, trade-unions, mutual-aid societies and all other legally
constituted associations, and the authorized fee-charging agencies.
The trades or occupations for which all hiring must be done through
the public employment offices, and those for which all hiring and firing
must be reported to those offices, were established by orders of the
Minister of Labor.
A Vichy decree of October 1940 abolished the existing departmental
and municipal exchanges and substituted a State system of employ
ment offices organized on a regional basis. In January 1943, an act
to reorganize the French Secretariat of State for Labor abolished the
Unemployment Commissariat and transferred those of its functions
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Federal Reserve Bank of St. Louis
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Monthly Labor Review—October 1944
for which the Secretariat remained responsible to the Directorate of
Labor and Employment and the Office for the Occupational Redis
tribution of Labor.
Workers’ Wages
GENERAL LEVEL OF WAGES
Wages in France before the war were low in comparison with those
in Great Britain, Sweden, and Germany, and particularly the United
States. Even within France there had always been a great difference
between the wages paid in Paris and its environs and in cities in other
parts of the country. In October 1938 hourly wages of adult males
in manufacturing industries averaged 10.50 francs in the Paris region
and 6.19 francs in cities other than Paris. Wage rates remained sub
stantially without change from 1929 to 1936 when the social laws
enacted by the Popular Front Government resulted in a general
upward movement of wages. The laws which particularly affected
the wage structure were the decree establishing the 40-hour week,
which provided that there should be no reduction in the remuneration
of- the workers in industries in which the 48-hour week had been in
effect either in wages or other payments, and the one on collective
agreements which provided for the establishment of minimum wages
by classes and by regions.
The French franc, which had had an exchange value of 19.30 cents
in United States currency for many years prior to and during the
first World War, underwent a long series of revaluations after the
war. The exchange value in terms of United States currency was
also affected by the reduction in the gold content of the dollar. In
1934 the exchange value was 6.56 cents, in 1937 it had dropped to
4.34 cents, and in 1940 (the latest year for which quotations have been
made by the Federal Reserve Board) it was only 2.08 cents. Although
the exchange value in 1940 was only about one-third of what it was in
1934-36, this does not mean that there was a corresponding drop in
the purchasing power of the franc in France. According to figures
presented in the 1941 I. L. O. Yearbook of Labor Statistics, the costof-living index for Paris (based on 1929=100) was 93 in 1934 but rose
to 111 in 1937 and to 126 in 1938. As the wage rates rose even more
rapidly during those years, there was a net gain in the hourly “ real”
wage of about 30 percent. On the other hand, as a result of the
40-hour-week law, the weekly “ real” wage in 1938 was just about
what it was in 1934.
WAGES IN VARIOUS OCCUPATIONS AND INDUSTRIES
Average hourly wages paid in a number of occupations for the years
1935 through 1938 are shown in table 2. The 1935 data are for the
period just before the enactment of the 40-hour law, which resulted
in sharp increases in hourly wage rates.
The minimum guaranteed hourly wages of metalworkers in the
Paris district, as fixed by collective agreement in May 1938, are shown
in table 3. Hours worked above the 40 per week provided by law were
paid for at time and a quarter for the first 2 hours and time and a
third for additional hours; time and a half was paid for night work
and work on Sundays and holidays. Other extra payments included
a meal allowance of 8 francs for night shifts, bus or car fare of 2 francs
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Labor Conditions in France
for the second day shift, a half-hour rest period paid for at the full
rate for workers on continuous shifts, paid vacations between June 1
and October 15 at the rate of 1 day per month of work, and the family
allowances prescribed by law.
T a b le 2. —Average Hourly Wages in French Cities in October of Each Year, 1935 to 1938,
by Occupation
Average h o u rly wages (in fran c sl) in —
O ccupation
Average
Males
______________________
Brewers _________________________
Printers, compositors______________
___ ____________
Bookbinders
Tanners
_ __________
Saddlers, harnessmakers ________
Shoem akers______________________
Tailors ___________________ ______
Dyers, cleaners _ _ _ __________
W eavers
_ _ _ __________
R opem akers
_ _ _ ___________
W heelw rights ___________________
Wood turners
_ ________________
Coopers
_ _ ________________
C abinetm akers _ ________________
TTpholsterers
_ __________
P it sawyers
_ _ ________________
C arpenters____ ___________________
Joiners __ _______________________
C oppersm iths
_ ____________
T insm iths
________________
Plum bers ______________________
Blacksm iths . _______________ -Farriers
_________________
Stovemakers
_________________
Locksm iths
. ..................................
Fitters
____ _____________
M etal turners _ _________________
Electrical f i t t e r s ________________
W atchm akers
_ ________________
Q u a rry m e n ______________________
Stonecutters ____ _____ ____ ____
M asons
_
_________________
Navvies (terrasiers) __
__________
Roofers .
______ _____________
House painters___
- _______ .
O rnam ental-stone c u tte rs_____ ____
Brick makers
Potters _____________________ ___
Glaziers
_ ________________
TVTotormen, tram w ays
Conductors, tram w ays. _ ________
T ruck drivers
Laborers
Paris and its environs
1938
1937
10. 50
10. 06
1936
7.06
Cities other th a n Paris
1935
6.23
11.90
11.90
10.50
10.50
7.25
6. 75
6.15
5.05
8.49
8.49
6. 38
5. 50
9.80
9.10
7.50
6. 25
10.10
9.40
6.50
5.87
9. 85
9.85
9. 65
9. 65
6.50
6.50
6. 75
5. 87
5.87
10. 45
11.70
10.28
10. 50
7. 25
7. 50
6. 25
6.10
9.85
9. 65
7.25
6.00
11.90
9.91
10. 35
9.70
7.20
6. 80
6. 05
6.00
8. 55
12.85
10.15
9. 55
10. 45
9.85
11.35
12.10
10.60
9. 55
10.28
9. 65
11.05
6.50
9.25
7.00
6.50
7.25
7.00
7. 67
6. 25
9. 25
6. 37
6.25
6. 25
6. 00
7.12
7.00
6.12
11.45
1938
1937
1936
1935
6.19
5.60
4. 42
3.80
5.54
6.87
6.84
5. 86
5.48
5. 45
5.87
5.56
5.13
5.31
5.96
6.37
5. 90
6. 42
6.32
6.04
6.44
6. 35
6. 90
6.28
6. 47
6. 59
6.08
6. 35
6. 35
6. 88
6. 92
6. 56
6. 56
5. 93
6.72
6. 43
5. 67
6.50
6. 33
7. 78
5. 72
6.01
6. 34
6.20
5.91
6.15
4.92
5.17
6.09
5. 99
5.12
4.96
4.85
5.43
5.15
4. 63
4. 95
5. 40
5. 72
5. 45
5.79
5.61
5.29
5.84
5.76
6.14
5.76
5.91
5.84
5. 45
5.78
5.78
6.11
6. 14
5.94
6.00
5. 37
6. 05
5.85
5.11
5.95
5. 77
6. 85
5. 06
5.25
5.75
5.67
5.40
5.78
4.44
4. 02
4.70
4. 56
4. 06
4.20
3.95
4. 42
4. 12
3. 62
3.92
4. 33
4. 57
4.34
4. 55
4.60
4.41
4. 63
4. 53
4. 81
4. 53
4.63
4.57
4.32
4. 53
4. 48
4.74
4.84
4. 77
4.83
4.16
4.84
4. 59
3.96
4. 63
4. 48
5.50
4.10
4. 52
4. 47
4. 46
4.10
4. 44
3.46
3.39
4.24
4.13
3.49
3. 42
3.40
3.84
3. 56
2.90
3. 33
3.72
3.94
3.75
3.97
4.00
3.78
4.02
3.88
4.16
3.83
3. 96
3. 89
3,74
3.83
3. 77
4.01
4. 03
4.03
4.26
3.58
4.16
3. 92
3. 31
4.02
3.83
4.95
3. 48
3. 56
3. 82
3.98
3.86
3.83
2.87
Females
Average________ ________________
3.42
3. 08
2.62
2.26
Ironers _________________________
D ressm akers______ _______________
Seamstresses
W aistcoat m akers _
Lace makers
Fm broid ere rs
M illiners _ _____________________
3. 36
3.40
3.30
3. 59
3. 55
3.42
3.31
3.10
3.09
2.97
3.24
3.09
3.04
3.05
2. 63
2.67
2.53
2.71
2.63
2.62
2.58
2.33
2.33
2.15
2.33
2. 27
2.19
2.20
1 Average exchange rate of franc in October 1935=6.59 cents; October 1936=4.67 cents; October 1937=3.35
cents; October 1938=2.67 cents.
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Federal Reserve Bank of St. Louis
714
Monthly Labor Review—October 1944
T a ble 3.—Hourly Wages in the Metal Industry, Paris Region, M ay 1938, by Occupation
H ourly
rate (in
francs J)
Occupation
B oilersm iths, formers, and sheet-iron
formers____________________________
Skilled tool w orkers—tracers, engravers,
millers, fitters______________________
A djusters__________________________
Ironsm iths, h a n d _____________________
M achine m anufacture—turners, millers,
rectifiers, borers, m ortisers, planers
W elders_____________________________
Sheet-iron m akers____________________
F itters^_________________________ ____
C lockm akers_________________________
M echanics—setters___________________
E lectricians__________________________
L ocksm iths__________________________
11.86
11.55
11.21
11.21
10.82
10.82
10.82
10. 56
10. 56
10. 56
10. 30
10.18
H ourly
rate (in
francs i)
Occupation
Plum bers_._ ________ .
C arp en ters..- _ _____ ____
Skilled m achine workers:
M ale__________ .
Fem ale__ ________
Boiler stokers-Skilled assemblers:
M ale- _____________
F e m a le ___ . . . . . .
W arehousem en____________
Laborers—heavy work
O rdinary laborers:
M ale.
F em ale... _____
9.91
9. 79
9. 53
8.15
9. 47
9.34
7.62
9. 21
8.38
7. 86
6.78
1 Average exchange ra te of franc in M ay 1938 = 2.81 cents.
The wages paid after February 1938 in different localities in the
Departments of Moselle and Meurthe-et-Moselle, in certain branches
of the iron and steel industry, are shown in table 4.
T a ble 4. —Daily Wages in the Iron and Steel Industry in the Departments of Moselle
and Meurthe-et-Moselle, February 1938
D aily wages (in francs *) in—
O ccupation
B last furnaces
Skilled workers:
F irst class__________
• Second class.
T h ird class_____________
Specialized workers:
F irst class______________
Second class____________
T h ird class_____________
Classified laborers________
O rdinary laborers_________
Steel mills
Rolling mills
62.15-74. 24
58. 70-62. 45
55.40-59. 62
59. 34-71.60
52.66-67. 20
50.00-60. 98
60.90-70. 25
59. 25-64. 56
56. 58-57. 58
51. 99-61.08
48. 53-57. 95
45.60-51.05
49.47-62.10
43. 60-49.00
52. 50-56.13
50. 40-53. 36
47.68-54.05
46.80-50. 80
37. 60-44.10
Ou. Zu oo, U
52. 98-54. 72
47.4550. 96
45.4557. 54
39. 51-42. 65
1 Average exchange ra te of franc in Feb ru ary 1938=3.28 cents.
Table 5 gives the average hourly wages in the textile industry in
the Lille and Lyon districts in May 1938. In general, overtime work
was not encouraged; in case of rush work, however, time and a"
quarter was paid in the silk mills in the Lyon district, while 10 percent
above the regular rate was paid for overtime in the velvet mills.
Family allowances in this district ranged from 50 francs per month
for one child to 320 francs for four children, and 150 francs for each
child above the fourth. In the silk and rayon industry a lower
allowance was paid if both husband and wife worked. The cost of
vacations with pay in the district was estimated at about 4 percent of
the annual pay roll.
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Federal Reserve Bank of St. Louis
Labor Conditions in France
715
T a b le 5. —Average Hourly Wages in the Textile Industry of Specified Districts in
France, 1938
LILLE D IST R IC T
Process, occupation, and sex
Average
hourly
rate,
M ay 1938
(in francs *)
Yarn prpparer, malp
G athprpr, malp
fTathp.rpr, apprp.ntipp malp
W arp asspmblprs, malp
Shearers, sharpeners, male _____
Reelers, male
_____- _________
Piokprs, fpmalp
Thread spinning
W inding:
Windp.rs, linpn, fpmalp
Asspmblprs, fpmalp
Olp.anp.rs pip.kp.rs fp.ma.lp
Tw isters: *
TTp.a.vy looms fpmalp
Light looms, fpmalp
Rpplprs, fpmalp
Bimdlprs, malp
Splicers, fe m a le .. _____ _
___
Finishers, m ale. ________ ______
Calenderers:
M ale________ _ __________
Ppm ala
Glazers:
Malp
Female _ ______________ .
Polishp.rs, fpmalp
Finishing:
W inders:
A utom atic m achines, female
Sem iautom atic m a c h i n e s ,
fpmalp
H an d looms, fem ale..
____
H and fpmalp
Spindle tenders, unpolished and
W inders, sewing thread, fem ale.._
3.91
3. 75
2.23
4. 25
3 97-5.15
4.41-7.00
6. 85
6.14
4.69
6.15
5.00
4. 65
2.15
4.13
5. 73
4.03
3.47
3. 53
3.64
3. 51
3. 66
3. 67
3. 38
4. 78
3.35
4. 49
4. 66
3. 58
3. 97
3. 72
4.09
3. 54
3.38
3.32
4.68
3.50
3.78
Cotton-spinning mills
Coarse yarn:
H a rd prs d offprs m a,lo
4. 51
Coarse yarn —Continued.
W inders, m ale_______ ____ ____
___ _____
C ard fixers, m a le .. . .
Scutchers, m a le .. ______ ___
G rinders, m ale_______________ . .
Packers, m a l e _____________ ____
G reasers. __ _ _ _____ _______
Oilers, m a l e . ___________ _ . .
Spinners, m ale. ______ . _____
Piecers, m ale____ _________
Carders, male
______ ____. .
Combers, fem ale.. _ ____ ______
Draw ers, female ___ ___________
Rovers, male
_____
____ _
Ring spinners, female___________
Ring tw isters, female.
Doublers, female. . ____________
Laborers, m a le ...
_____ ______
M edium and fine counts:
Spinners:
M ale__ ____________________
Beginners, m ale.
_________
Reelers:
Fem ale___ _ . . .
______
Beginners, female______ _ . . .
Carders, female__________ _____
Combers, female. . . . ______ _ .
D raw ers, fe m a le _________ . ___
Rovers, female
_ ______
R ing spinners, fem ale.. . ______
Doublers, female______ . _____
W inders, female__________
. ..
4. 56
4.31
5.02
5.16
4. 69
4. 71
4. 90
2 6 .08
2 2. 40-4.80
4.00
2 3. 58
3. 35
3.39
3.30
3. 47
3. 39
4.28
5. 64
1.71
2.62
1. 58
3.24
3.41
3. 30
3. 38
3. 44
3.35
3. 32
K nitting mills
W inders, runners-on (fine gauge),
female. ____
. . . . .
Runners-on (coarse gauge)#female.. . .
Linkers, female___ . . ______ . .
Sewing-machine operators, fem ale...
Runners-on, female------ ------------------Trim m ers, female _ _ _ _________ _
Runners-on of toes, fem ale. _______
Folders, fem ale..
.
...
Inspectors, female____________ . . . . .
Pairers, female. .
____
Operators, circular machines, fem ale_______ ._ . . . . . . .
___
R ib top runners-on, fem ale. . . --------Runners-on, male .
...
____
Footers, m a le _______________
____
U tility m e n _____ . _______
Laborers, m ale_____ . ___ _
Beginners:
Girls, 14 y e a r s . . . . ___ . . ----Boys, 14 years . . . . . .
1 Average exchange rate of franc in M ay 1938—2.81 cents.
2 Piece rate.
2 Increased 0.10 franc each quarter.
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Federal Reserve Bank of St. Louis
Average
hourly
rate,
M ay 1938
(in francs >)
Cotton-spinning mills—C ontinued.
Cotton and linen Weaving
W eaving:
W inders:
Linp.n, malp.
Hot ton malfi
Apprpn t.iop, m a,l o
W arpors, malp
W eavers:
O rdinary looms malp
M nltipip looms malp,
O ther workers:
Trim m prs malp
Sizpr, malp
Sizp.rs* assistant, malp
Process, occupation, and sex
4.34
4. 27
4. 27-4. 55
4.41
4. 55
4.41
4.13
3. 99
4.06
4.13
4. 34
4.13
4.45
6. 56
5. 57
4. 87
2 1.54
1. 68
3
716
T a ble 5.
Monthly Labor Review—October 1944
Average Hourly Images in the Textile Industry of Specified Districts in
France, 1938— Continued
LYON D IS T R IC T
Process, occupation, and
sex
(Average hourly rate,
A pril 1938 (in francs 4)
Silk and
rayon
Process, occupation, and
sex
3.70
3.70
4. 50
4.70
4.40
(')
Silk and
rayon
V elvet
Silk and rayon and velvet
W inders, fem ale.........
Reelers, female______
W arpers, fem ale.............
Weavers:
M ale________
F e m a le ...................
Loom fitters, male
Loom fitters’ apprentices,
m ale__________
4. 25-4.50
4. 25-4. 50
4.75-5.00
4.75-5.00
Average hourly rate,ri
April 1938 (in francs 4)
Velvet
Silk and rayon and velvet—
Continued
Finishers:
M ale_______________
F em ale_______ ____
Dvcrs, male
Printers, m ale__________
Laborers, weaving, m ale..
7.00
8.15
9.00
5.50
5. 50-6. 50
4.25-4. 75
8.15
4.00-5. 75
4 Average exchange rate of franc in A pril 1938=3.10 cents.
4 1,344.00 francs per m onth.
WAGES DURING THE WAR
In the spring of 1939 the workweek was lengthened and the
normal week fixed at 45 hours without any change in the weekly
wages formerly paid for 40 hours of effective work. The remunera
tion for supplementary hours above 45 per week was successively
reduced from 75 percent of the normal hourly rate to 66% percent
and to 60 percent; the proceeds of the reduction were paid into the
Treasury, to the account of the National Solidarity Fund for the
payment of allowances to the families of needy soldiers. Bonuses
and fees which were intended to compensate for extra hours were
also subject to the reduction. Personnel whose pay was independent
of the hours of work, as well as those paid by the month in production
services of industrial enterprises, were subject to a direct 40-percent
reduction on any increases, including bonuses and fees, granted after
September 1, 1939, because of longer hours worked in the establish
ment. Similar deductions from overtime pay were also put into
effect for workers in mines and quarries.
WAGES AFTER THE ARMISTICE WITH GERMANY
Shortly after the armistice, which would normally have brought
the suppression of the regulation of wages provided for during hos
tilities, the State on the contrary assumed total control of the move
ment of wages. Owing to the great increase in living costs, supple
mentary wages were provided by a decree of May 1941 for workers
in industrial and commercial enterprises, the liberal professions, civil
servants, etc., whose salaries or wages did not exceed the limit for
inclusion in the social-insurance system. The allowances were
made retroactive to June 1 , 1941, and were based on the wages in
effect in September 1939, or readjusted thereafter. They ranged from
50 centimes to 1.15 francs per hour and were reduced by one-half for
workers under 17 years of age and by one-quarter for those under 20.
The maximum permissible increase for young workers was 20 percent.
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Federal Reserve Bank of St. Louis
Labor Conditions in France
717
FACTORS AFFECTING WAGES
The actual value of pre-war French wages to the worker was in
creased by the existence of family allowances, by the granting of
paid vacations, and by a system of social insurance.
Family allowances.—Under a law passed in 1932 family allowances
were paid to heads of families for each dependent child under 14, and
in some cases for children up to 16 years of age. The minimum pay
ments fixed by decree varied widely in different parts of France, the
highest rates being paid in Paris. The payments increased in size with
the number of dependent children. The purpose of the law was to
stimulate the birth rate. The system started in industry and com
merce and was extended to many classes of agricultural workers. The
funds from which allowances were paid were contributed entirely by
employers, except in the case of certain agricultural workers. Con
tributions varied according to industry and locality but in general were
estimated at about 2 to 5 percent of pay roll. In 1939, several decrees
extended and improved the family-allowance system, especially for
agricultural wage earners, small farmers, and rural artisans. These
schemes were absorbed and unified by a decree of July 1939 establish
ing a family code which provided for family allowances for the heads of
families throughout the country not only in the wage-earning and sal
aried groups but also for employers and independent workers. Funds
necessary for the application of the code were raised by taxation. The
French Labor Charter, put into effect by the Vichy Government in
October 1941, provided for a minimum basic wage to be fixed by the
Government by region, Department, or locality; to the wages thus
established, supplements were added for family charges. In Septem
ber 1942, famity allowances were extended to widows with family
responsibilities, who were not wage earners.
Vacations with pay .—Annual paid vacations were granted to all
employees in industry, commerce, the liberal professions, domestic
service, and agriculture, by legislation of June 1936. The minimum
vacation was 15 days, including 12 working days, for employees with
12 months’ continuous service, and 1 week for at least 6 months'
service. The right to a vacation with pay, or to compensation if the
vacation was cancelled, was continued for the year 1941 by the Vichy
Government by a law passed in May 1941.
Social-insurance benefits.—Compulsory insurance, covering sickness,
maternity, invalidity, old-age, and death, and providing benefits for
dependent children of insured persons in the event of disability or
death, was provided by a law passed in 1930. Two systems were
established—one covering industrial and commercial workers and
domestic servants, and the other agricultural workers. There was no
compulsory unemployment-insurance system. The general socialinsurance system was maintained by the Vichy Government, and the
liability to insurance was extended by raising and in some cases abolish
ing the wage limit.
REGULATION OF WAGES
Minimum wages for home work were*first regulated in the clothing
industry, under a law passed in 1915 which originally covered female
workers and was extended to include males by an amendment of 1928.
During the 1930’s various measures were taken to make the law more
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Federal Reserve Bank of St. Louis
718
Monthly Labor Review—October 1944
effective. Minimum rates of home workers were again dealt with by
legislation in August 1941, covering all home industries, which pro
vided that all home workers, male and female, should receive not less
than the minimum rates of pay fixed by the prefects. The prefects were
bound to consult with the Departmental wage committees which under
the 1915 law had previously established rates. The law empowered the
Secretary of State for Labor to fix home-work rates different from those
specified by the prefect, and no appeal was permissible in such cases.
The law also defined the rights of home workers with regard to family
allowances (already granted under special legislation) and holidays
with pay.
The law on collective agreements and that on conciliation and arbi
tration, enacted in 1936 by the Popular Front Government, were de
signed to extend wage standardization in industry and commerce.
Both had for their purpose the fixing of minimum-wage rates (and other
conditions of employment). If rates could not be agreed upon volun
tarily, they were to be imposed by conciliation and arbitration. The
terms of a collective agreement made by a single branch of industry
might be made a common rule by Ministerial order and thus attain
very general application. A new arbitration law enacted in- March
1938 provided that minimum-wage rates fixed by collective bargaining
or arbitration must be varied, at stated intervals, with changes in the
cost of living.
Criteria for determining rates of pay were established by the Labor
Charter of October 1941, which provided that members of an occupa
tion were to be remunerated according to their place of employment,
occupational qualifications, and the special conditions under which
they worked. All workers were to receive a living wage, and geographic location, family responsibility, and skill of the worker were
to be taken into account in fixing pay. The minimum living wage
was to be fixed for each region, Department, or locality in accordance
with the recommendation of a superior wage committee.
With the consent of the occupation authorities, a new system of
minimum-wage determination was introduced in June 1943. The
system was first applied in the metal industry and it was provided
that it should be extended to other industries by special orders.
Places of work were divided into six zones according to population of
tlie locality and to the living conditions of the workers,’ the workers
were divided into classes, ranging from laborers to highly skilled
workers. A minimum hourly wage and a maximum average hourly
wage were fixed within each zone and for each class of activity. The
cost of the wage increases was to be borne by the employers, and
could not be passed along in increased prices. The minimum hourly
rates for the various classes of activity for male workers 20 years of
age or over ranged from 6 to 10 francs according to the zone concerned
and the maximum average hourly rates from 6.90 to 20.10 francs,
h omen’s rates were fixed at 80 percent of the corresponding rates for
men.
Hours of Labor
In June 1936, when the Popular Front laws were passed, the 40-hour
week was established for all industry and commerce, educational and
welfare organizations, etc. The law provided that the method of ap
plication by profession or industry for the total of a territory or for a
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Federal Reserve Bank of St. Louis
Labor Conditions in France
719
region would be determined by the council of ministers, after consulta
tion with the competent section or sections of the National Economic
Council. In establishing the hours for a particular industry, the
employer and worker organizations concerned had to be consulted.
Most of the decrees permitted a choice of the 5-day week, the 5)£-day
week, or the 6-day week of 6 hours and 40 minutes a day. In general,
if such a choice was allowed, it was provided that hours which had
been fixed by collective agreement must be followed.
By the middle of 1937, the law was in practically universal effect,
although a gradual transition to the new hours was necessary in some
industries and in some cases it was necessary to allow a week longer
than 40 hours. In the iron and steel industry, for example, which
had been operating in general on a 56-hour week, a gradual reduction
to a 4-shift system with a 42-hour week was allowed. Longer hours
were authorized in industries in which the work was of an intermittent
character, such as service industries, food stores, hotels, and restau
rants. In underground mines, the time underground for each worker
was not to exceed 38 hours and 40 minutes a week.
In order to meet the needs for increased production, particularly in
works carried on for the national defense and safety, supplementary
hours up to 100 per year were authorized in August 1938; and in
November the workweek was extended from 5 to 6 days and necessary
overtime over the basic 40 hours was authorized up to a week of 50
hours. As war approached, a law enacted in April 1939, while retain
ing the principle of the 40-liour week, fixed the normal week at 45
hours with no increase in pay for the forty-first to the forty-fifth hours.
In establishments working directly or indirectly for the national de
fense, the Minister of Labor was authorized to increase hours above
60 when necessary.
, Wartime hours.—A decree issued September 1, 1939, at the outbreak
of the war, provided for a 60-hour week in industrial, commercial, and
cooperative establishments of every kind, with a general maximum
workday of 11 hours which could be extended to 12 hours to make up
for collective interruptions of work. A 56-hour week, averaged over
a period of 12 weeks without special authorization, was fixed for con
tinuous operations and if the work was for national defense or for a
public service it could be extended to 72 hours a week, if authorized
by the labor inspector. The maximum hours of women and young
persons were in general fixed at 10 per day and 60 per week.
Normal hours of work were extended to 43 hours and 30 minutes
for underground work in coal mines, with no change in wages for the
additional hours, and maximum hours were fixed at 52 hours and 30
minutes a week, or 8 hours and 45 minutes a day.
Hours after the German occupation.—After the armistice, hours were
much reduced, owing to the widespread unemployment. An act of
August 1940 provided that as a temporary measure for spreading
available employment among the largest possible number of workers,
the prefect might issue an order fixing hours of work, for a particular
occupation, class of work, region, or undertaking or group of under
takings at a lower level than that laid down by the general regulations.
The amount of overtime, which thereafter was to be paid for at normal
hourly rates, was uniformly fixed at 75 hours a year. In March 1941,
this act was amended to provide that orders might be issued increasing
610054— 44—
4
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Federal Reserve Bank of St. Louis
720
Monthly Labor Review—October 1944
the maximum weekly hours from 40 to 48 or such other hours as might
be considered equivalent by reason of the nature of the work.
Overtime pay for work in excess of 48 hours was fixed at 10 percent
over the normal wage. In the mining industries the weekly hours for
underground workers were fixed by decree of July 1941 at 46 hours
and 30 minutes, and for surface work at 48 hours. In mineral mines
supplementary hours might be authorized by the chief mining engineer
up to a maximum of 60 hours per week and 10 hours per day.
Labor and Employers’ Organizations
Freedom of association, although recognized by ancient French law,
was, except for short intervals, denied to French workmen up to the
year 1860, when it began to be tolerated. A slow growth in work
men’s societies occurred until 1884, when a law was passed according
freedom of association to both employers and workers; these rights
were not fully granted, however, until 1901. Organization had always
been more complete among employers than workers, although after
the outbreak of World War I membership in the principal employees’
federation, the Confédération Générale du Travail, increased rapidly.
The aims of the C. G. T., as expressed in its constitution, were to unite
the workers in defense of their moral, material, economic, and pro
fessional interests. In 1920, the Federations of Civil Servants, in
cluding three separate groups, affiliated with the C. G. T. Four
organizations of agricultural workers with somewhat similar aims were
united in the National Federation of Agricultural Laborers. There
were several smaller national trade-union groups.
An extremist group in the C. G. T., which favored affiliation with
the Third International (Moscow), broke away in 1921 and formed
the C. G. T. Unitaire. The two organizations were reunited in 1936.
Unification greatly strengthened the workers’ bargaining position and
with the election of the Socialist Premier, Léon Blum, the way was
paved for the enactment of the social laws which so profoundly
changed the working conditions of French labor.
In the so-called “Matignon” agreements leading to the adoption
of the new laws, the C. G. T. was named the bargaining agent for
labor, and the Confédération Générale du Patronat Français, for the
employer groups. French labor supported the Government in the
modification of the social laws to meet the need for increased pro
duction; and in October 1939, after war was declared, a comprehensive
agreement fostered by the Government was reached between em
ployers and workers to develop “the spirit of cooperation and trust
* * * between theJMinistry of^Munitions, employers, supervisory
staff, and workers.”
Membership in the C. G. T. increased from about a million at the
beginning of 1936 to nearly 5 million at the first of January 1937 but
had dropped to 3% million on January 1, 1939. A year later the
membership was only about 800,000. The members of the three other
most important federations totaled about 660,000 at that time, of
whom about 488,000 were in the Christian trade-unions.
The principal employer organizations were the Confédération Gén
érale du Patronat Français, the Comité des Forges, and the Comité
Central des Houillères de France.
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Labor Conditions in France
721
In November 1940, the centra] employers’ and workers’ organiza
tions were dissolved by the Vichy Government, although the decree
concerning the C. G. T. applied only to its executive and administra
tive committees and not to the national federations and departmental
or local unions affiliated to the Confederation. According to the
Minister and Secretary of State for Industrial Production and Labor,
this action was taken because the political activities of these organ
izations exceeded tlicir economic activities. The federation of public
employees’ unions, affiliated to the C. G. T., was dissolved in October
1940 and new regulations were issued defining and limiting the right
of association of these employees.
The French Labor Charter, made effective by decree of October 4,
1941, provided for the organization of workers and employers in
professional syndicates, by localities. Within these syndicates
separate groups were to be formed for employers and for different
categories of workers. Membership was compulsory. Insofar as
French workers were able to express their opinion on the new organ
ization, they manifested their unalterable opposition to the social
and economic policy of the Vichy Government. The free trade-union
movement, moreover, survived underground and continued the
struggle against the dictatorship of Vichy and Berlin. The C. G. T.
and the General Confederation of Christian Workers are represented
in the National Council of French Resistance and the Consultative
Assembly which was established in Algiers and was removed to Paris
in the latter part of August 1944, after the city was liberated. General
de Gaulle had promised the restoration of trade-union liberties and
activities, and the C. G. T. met openly in Paris on August 30 for the
first time since the dissolution of the trade-unions.
Industrial Relations
COLLECTIVE AGREEMENTS
Regulation of industrial relations by collective agreements made
slower progress in France than in many other countries, although
a basic law authorizing agreements between representatives of em
ployers and employees was enacted in 1919. Written agreements
were required, and became effective only after being filed in a public
office. There was no specified time limit for agreements but the
general maximum term was 5 years. Legally, agreements might
contain provisions by which any disputes arising under the agreement
could be referred to arbitration. In 1933 only 7.5 percent of the
wage earners in industry and commerce were covered by agreements.
Most agreements were local, covering at most one town or even
one establishment; few agreements, except those for printing trades
and bakeries, covered all conditions of employment. Normally,
some particular aspect of employment relations (usually wages) was
the subject of agreement. Hours of labor were second in importance.
The characteristic French form of collective agreement was the official
regulation of woridng conditions based on agreement between the
parties. Such regulations played an important part in the French
labor law, and in June 1934 a total of 283 public administrative
regulations covering 4,800,000 wage earners had been issued dealing
with the 8-hour day or exceptions from it. Prefectoral orders relating
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Monthly Labor Review—October 1944
to the application of the act requiring a weekly rest period did not
have such wide scope. Between 1929 and 1932, however, 387 prefectoral orders were issued, 17 of which were later revoked.
The legislation on collective agreements was amended by the
Popular Front law of June 24, 1936, which provided that on the
demand of an employers’ or workers’ organization the Minister of
Labor was required to appoint a joint committee for the purpose
of concluding a collective agreement in the branch of industry or
commerce concerned, for either a specified district or an entire territory.
If the joint committee could not reach an agreement upon one or more
of the provisions to be included in the agreement, it was the duty
of the Minister of Labor to intervene on the request of either party,
to assist in securing agreement. The Minister could act only after
obtaining the advice of the interested professional section or sections
of the National Economic Council.
An agreement reached by the joint committee had to specify
whether or not it was concluded for a fixed period and had to contain
provisions concerning (1) trade-union freedom and freedom of opinion
of the workers; (2) the appointment, in establishments employing
more than 10 persons, of delegates elected by the employees to
represent them in claims relative to the application of rates of wages,
the labor code, and other laws and regulations concerning workers’
protection, safety, and sanitation (these delegates could demand the
assistance of a representative of their trade-union); (3) minimum
wages by class and by district; (4) notice of dismissal; (5) the organ
ization of apprenticeship; (6) the procedure to be followed in enforce
ment; and (7) the procedure by which the agreement might be
amended or changed. The collective agreements could not contain
provisions conflicting with the laws and regulations in force but could
provide more favorable conditions.
Agreements thus concluded could be made compulsory by a decree
issued by the Minister of Labor for all employers and employees in the
district, in the industries to which they applied, for the period of the
agreements. Before a decree was issued the Minister was required
to publish a notice in the Journal Officiel, requesting the filing of com
ments or objections within a period of not less than 15 days. The
decree ceased to be effective when the contracting parties agreed to
terminate, revise, or modify it. Also, the Minister of Labor could
rescind the decree, after securing the advice of the interested parties
and the National Economic Council, when it appeared that the agree
ment was not in accord with the economic situation of the industry in
the district concerned.
Following enactment of the 1936 law the Minister of Labor made
very large use of the powers conferred on him and the number of
collective contracts increased rapidly. Between June 1936 and De
ember 15, 1938, 5,159 agreements had been concluded.
INDUSTRIAL DISPUTES
Up to 1936 the most serious disputes in France were a 1920 railwaymen’s strike involving demands for nationalization of industry,
a 1929 “folded arms” strike by postal employees in Paris, and a series
of Communist-inspired strikes in 1930 against wage deductions to
help finance the social insurance law that had just been passed.
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Federal Reserve Bank of St. Louis
Labor Conditions in France
723
In May 1936 a revolutionary strike movement broke out. The
trouble started with three strikes in small aviation plants but spread
to the Paris metallurgical industry, including many automobile
plants. Finally, most of the other industries in the Paris district were
involved, with the exception of the essential city services. Prac
tically the same situation existed in the most important textile center—Lille. There was a general strike among the miners in the North and
many other Provincial centers were affected. In almost all instances
the strikes were “stay-in” or “sit-down” strikes, as the workers ap
peared to regard these as more effective than picketing and as a means
of preventing lockouts. However, labor was not successful in pre
venting lockouts in a number of localities. Léon Blum took office
as Premier on June 4 and promised to defend the workers’ interests
but stated that “the law must be obeyed.” The Popular Front laws
were enacted shortly thereafter and peaceful relations were again
restored.
The suppression or regulation of trade-unions after the fall of France
in 1940 had the effect of removing the strike weapon as a means of
redressing grievances. In November 1941, the German military
commander in occupied France issued an order providing that any
person who stopped work without a lawful termination of the employ
ment contract, who dismissed workers or incited them to stop work,
or who disturbed industrial peace in any way, would be liable to
severe penalties, even death in serious cases.
C O N C IL IA T IO N A N D A R B IT R A T IO N
According to the March 1919 law on collective agreements, a
contract between employers and employees could provide for the
settlement of differences arising under the agreement by conciliation
and, in default of an agreement, by arbitration. Following the
widespread sit-down strikes in the early part of 1936, the French
Government made its first serious attempt to prevent strikes by pro
viding that disputes must be settled by peaceful means. A law of
December 1936 provided that disputes must be submitted to concilia
tion before resorting to strike or lockout, and if recourse to concilia
tion would mean undue delay cases could be submitted at once to
arbitration. Arbitrators were required to make their decisions
without delay, and their findings were binding and without appeal.
Measures to speed up the arbitration machinery were adopted in 1937,
and in March 1938 the scope of the original law was broadened and
procedure governing disputes arising under collective agreements
was established.
Each collective agreement had to provide for a joint conciliation
commission to deal with disputes which had not been settled by the
parties within the period fixed by the agreement. The agreement
had to provide for the designation of an arbitrator and alternates to
act in conflicts which had not been settled by the commission. One of
the main aims of the 1936 law was to consolidate the gains in wages
which the workers had obtained through the 1936 strikes. To this
end, the 1938 law provided that the conciliation and arbitration
machinery should be used in case of a considerable variation in the cost
of living. Wage revision could be demanded if the cost-of-living
index varied at least 5 percent from that on the nearest date on which
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Federal Reserve Bank of St. Louis
Monthly Labor Review—October 1944
724
wages had been fixed by the agreement. Both wages and family
allowances were to be adjusted to the cost of living in such cases,
unless the employers could prove that the adjustment was incompatible
with the economic conditions of the activity in the area covered by the
agreement, in which case the arbitrators would fix the wages. Wage
revisions could be made only at 6-month intervals, unless the index
advanced 10 percent. The woikers thus gained, in exchange for
compulsory arbitration, a sliding scale of wages guaranteeing in large
measure stability of purchasing powev
A High Court of Arbitration was created by the March 1938 law
which had jurisdiction on a par with the Supreme Court and the High
Court of Appeals. This court, made up of high Government officials,
was a court of appeals. It judged awards and principles but did not
take the place of an arbiter to settle disputes.
The conciliation and arbitration system was suspended when war
was declared, and a new system of labor relations was introduced in
November 1939 by which the Minister of Labor, in consultation with
technical committees appointed in each Department, was given power
to modify the te*rns of agreements in accordance with production
requirements, or in the absence of collective agreements, to fix the
conditions of employment for a given occupation or district.
After the armistice, the Government established a new organization
modeled on totalitarian lines by which special organization com
mittees were created in each branch of industrial or commercial
activity. These committees, under the Minister of State for Pro
duction, controlled raw materials and the programs of production and
manufacture and could requisition materials, products, labor, and
enterprises, thus apparently putting an end to the provisions govern
ing conciliation and arbitration.
Social Insurance
SICKNESS, MATERNITY, INVALIDITY, OLD AGE, AND DEATH
Compulsory insurance covering sickness, maternity, invalidity, old
age, and death, and providing for benefits for dependent children of
insured persons in the event of disability or death was provided by a
law passed in 1930. Two systems were established by the law—one
covering industrial and commercial workers and domestic servants,
and the other, agricultural workers. Unemployment insurance was
not included in the system, but persons who were compulsorily insured
and became involuntarily unemployed were exempted from payment of
the social-insurance contribution for a specified period. In addition to
the general systems, special systems were maintained for miners, sea
men, railwaymen, civil servants, and public utility employees and
workers. In three instances the special systems provided only old-age,
invalidity, and death benefits.
Industrial and commercial workers:—The wage classes on which
contributions and benefits were based in the original law were abolished
in 1935. The wage limit for inclusion in the system, which was fixed at
25,000 francs a year in the original law, was raised to 30,000 francs in
1938. In January 1942 the Vichy Government abolished the wage
limit for manual workers and others paid on an hourly, daily, weekly,
or piece-rate basis or by the job; workers paid on a monthly or fort
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Federal Reserve Bank of St. Louis
Labor Conditions in France
725
nightly basis or on a commission or turnover basis were made liable for
insurance if their annual pay or earnings, excluding family allowances,
did not exceed 42,000 francs a year. Domestic servants and persons
intermittently employed continued to be covered by the provisions of
the 1935 decree, as amended.
Under the earlier system the payment of sickness benefits depended
either on a qualifying period or on the payment of a minimum number
of contributions. The 1942 amendments provided that insured persons
and their families were entitled to benefit if thè insured person had
been in insured employment or registered with an employment office
during the 3 months preceding the claim for benefit. Cash benefits
under the present system are payable from the fourth day after the
beginning of sickness or accident, for a period not to exceed 6 months.
Services of a general practitioner and specialist treatment are pro
vided from the beginning of illness, dental services are furnished, and
hospital or sanatorium care may be provided but with reduced cash
benefits. The patient has free choice of a doctor.
Maternity benefits, including a cash benefit and the payment of the
cost of medical and pharmaceutical care and necessary institutional
care, are payable if the applicant can show membership in the system
for more than 10 months preceding the confinement and if the proper
notice was sent to the fund at least 3 months before the expected date
of confinement. A nursing bonus or milk allowance is also paid.
Invalidity pensions are payable, under the law of August 1942,
at the end of the sixth month covered by sickness insurance or in case
of injury if the working capacity is reduced by at least two-thirds. A
supplementary benefit is payable for each child under 16 years of age.
Old-age pensions are payable at the age of 60 years without any
qualifying period. In case of the death of an insured person a lump
sum is paid to the surviving dependents, and the widows of insured
persons with at least three children under the age of 14 years are
entitled to an orphan’s pension for each child after the second. The
payment of these benefits—formerly dependent upon 1 year’s mem
bership and the payment of not less than 60 francs in the four quarters
immediately preceding death—now depends only upon the insured
person’s having been in paid employment or registered with an em
ployment office during the 3 months preceding the death or the sick
ness or accidenti causing death.
Contributions amounting to 8 percent of insured wages, calculated
on actual earnings, are payable in equal parts by insured persons and
their employers. The State pays a fixed annual subsidy.
Agricultural workers.—The compulsory insurance system covers
workers in agriculture and forestry, whose occupations are governed
by the Industrial Accidents Act, persons employed by rural craftsmen
who do not employ more than two persons, persons employed by con
tractors for threshing and other work, and those employed by
agricultural trade-unions and other agricultural organizations.
Members of the farmer’s family are included.
Under the original law various mutual benefit societies and insur
ance funds covered the different risks; national reinsurance funds
reinsured the risks of sickness and maternity, participated in the
medical programs, provided medical treatment for invalids, and paid
invalidity pensions for the first 5 years of invalidity. General finan
cial operations were covered by the General Guaranty Fund. The
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Monthly Labor Review—October 1944
reinsurance funds, except those of an occupational character, were
abolished in 1941 and the various funds affiliated to or reinsured in
the Central Agricultural Mutual Insurance Fund; the activities of
branches of pension funds were transferred to the Central Agricultural
Pensions Fund. The insurance is financed by equal contributions
by employers and insured persons and a State subsidy.
Under the former system, benefits in case of sickness and maternity
were not uniform as they were fixed by the rules of the mutual benefit
societies or the section of the departmental fund to which the workers
were affiliated. In order to qualify for sickness benefit an insured
person must have paid 5 monthly contributions during the two
calendar quarters immediately preceding the sickness or accident or
10 monthly contributions in the preceding four calendar quarters.
Qualification for maternity benefit depends upon a contribution by
the insured woman or her husband equal to the aggregate amount of
9 monthly contributions in the four calendar quarters preceding the
quarter in which the confinement takes place.
Old-age pensions are payable at the age of 60 years. Under the
act passed in March 1941, persons who were 50 years of age on that
date were entitled to pensions on reaching the age of 60 if certain
qualifying conditions as to contributions were met (the minimum
payment was 600 francs a year). For persons under 50 years of age
and those already pensioned, the provisions are the same as those for
industry and commerce. Survivors’ benefits, payable in a lump
sum, are equal to 10 times the amount credited to the individual
account of the insured person during the last four quarters.
U N E M P L O Y M E N T R E L I E F A N D C O M P E N S A T IO N
Aid to unemployed persons in France takes two forms—unemploy
ment assistance and a system of voluntary insurance subsidized by
the State. A decree of May 1939 consolidated and amended the
laws relating to unemployment, and numerous decrees have been
issued since that time for the purpose of correcting anomalies and
reforming the systems to meet the abnormal conditions brought
about by the war and the armistice. The relief and insurance systems
broke down after the fall of France and emergency measures had to be
taken for the relief of the unemployed who at that time numbered
over a million. A new unemployment-relief system was established
by an act of October 1940, which also reorganized the public
employment services.
Unemployment allowances were paid to unemployed workers and
their families who could prove that they had been engaged in a trade
or occupation and had resided in the commune for specified periods,
if they had been registered with the public employment offices and
had been unable to find work.
The voluntary unemployment-benefit funds maintained by tradeunions, mutual-aid associations, and similar organizations provided
benefits for insured members after 2 months’ membership in the
fund. The other conditions governing the payment and duration
of benefits varied in the different funds, and the amount of contribu
tion varied from fund to fund. In general, the State subsidy could
not exceed one-third of the benefits paid.
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Federal Reserve Bank of St. Louis
Labor Conditions in France
727
Cooperative Movement
The consumers’ cooperative movement and the workers’ productive
associations began about the middle of the nineteenth century and
were already well established in France before the first World War;
cooperation among the farmers began only in the early years of the
twentieth century.
During the period of the first World War the Government made
considerable use of the network of consumers’ cooperatives for pur
poses of distributing supplies to the people, and the cooperatives of all
kinds played a substantial part in the reconstruction of devastated
areas.
A policy of amalgamation of small associations within one or more
departments began shortly after the first World War. The so-called
regional development associations thus formed played an increasingly
large part in the consumers’ cooperative movement, their business
rising from 35 percent of the combined sales of all the associations
affiliated to the National Federation in 1920 to 67 percent in 1938.
Consumers’ cooperatives affiliated to the National Federation of
Cooperatives in 1938 numbered 1,176, with a membership of 1,165,000
and a total volume of business amounting to 2,500,000,000 francs.
During the years 1935-38 -the consumers’ cooperative movement
gradually attained recognition in the system of planned economy that
was slowly being put into force in France. Beginning in 1939, the
cooperatives began to suffer increasingly from the wartime economic
regulations and difficulty of obtaining supplies because of the scarcity
of certain essential commodities. Nevertheless the movement was
holding its own and even increasing its productive output.
Most of the regional cooperatives were in the northern section of
France. Considerable damage to buildings was sustained in the
bombardment that accompanied the invasion of France in June 1940.
A policy of “regroupment, unification, and purification of the coopera
tive movement” was immediately started by the Germans. The
National Federation and the Cooperative Wholesale Society were
merged into one organization and all associations in a single town or
city were required to consolidate. In unoccupied France cooperatives,
like other organizations, were subjected to the measures inaugurated
by the Vichy Government with a view to reorganizing French economic
li|e along corporative lines, but the associations were allowed to con
tinue in operation.
Apparently, after the initial period of destruction, the Germans
also found the continued existence of the cooperatives advisable.
Thus, in June 1943 the associations not only were still in operation but
took part in a cooperative congress which brought together delegates
from all parts of France except Alsace-Lorraine.
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Federal Reserve Bank of St. Louis
r
Employment and Labor Conditions
State D istrib u tio n of E m ploym ent in Federal Agencies,
Ju n e 1 9 4 4 1
Summary
FIVE States—New York, California, Pennsylvania, Texas, and
Illinois—had a third of the 2,918,000 Federal employees in continental
United States in June 1944. New York and California, with 297,000
and 289,000, each had more Federal workers than the Washington
(D. C.) metropolitan area (270,000). In fact, 10 of every 11 employees
were outside Washington.
In the Washington area, 1 of every 2 Federal employees was in a war
agency, as compared with 3 of every 4 in the 48 States. War agencies
accounted for 9 of every 10 employees in Rhode Island, South Carolina,
Virginia, Florida, and Utah., and 8 of every 10 in 10 other States
(Alabama, California, Georgia, Louisiana, Maine, Massachusetts,
Oklahoma, Pennsylvania, Texas, and Washington). Many of the em
ployees in war agencies were working on the construction and repair of
ships, or on the manufacture of guns, ammunition, and other matériel
of war, or were in Army and Navy training camps and schools. Also,
some were engaged in activities of emergency war agencies, such as
the Office of Censorship, War Shipping Administration, Office of Price
Administration, Selective Service System, etc.
Employment was widely distributed among the States for every
large agency except the Navy Department, for which concentrations
were greatest in the coastal States, especially in those having navy
construction and repair yards. Concentrations of employees in cer
tain States for other agencies resulted from the location of a district
or regional office there. This was true especially of New York, Illinois,
Pennsylvania, California, and Texas.
Scope and Method of Study
This article was prepared jointly by the Civil Service Commission
and the Bureau of Labor Statistics on the basis of reports submitted
to the Commission by all agencies of the Federal Government. The
reports were as of June 30, 1944, for the Navy Department and as of
March 31, 1944, for all other agencies. Data for all agencies except
the Navy Department were then adjusted to their respective levels
as of June 30, 1944.
The present study covers all types of employees of the Federal
Government who were in work status and were stationed within the
i
Prepared by John W . M itchell, U . S. Civil Service Commission, and F . Lucile C hristm an, Division of
C onstruction and P ublic E m ploym ent of th e B ureau of L abor Statistics.
728
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Federal Reserve Bank of St. Louis
Employment and Labor Conditions
729
continental limits of the United States (exclusive of Alaska and Panama
Canal Zone). Full- and part-time, regular, temporary, and inter
mittent employees, force-account construction workers,2 and trainees
were included. Those working without compensation or at $1 a
month or year, and those stationed outside the continental limits of
the United States, were excluded.
The 7,100 employees, shown under “undistributed/’ could not be
allocated to any State because of being in travel status at the time of the
survey and not being assigned to a particular station (tables 2 and 3).
Employment is here shown, by State, only for the relatively large
Federal agencies. Tables showing data by State for the other agencies
will be furnished upon request.
Relative Size of Federal Agencies
Of the 2,918,000 Federal employees in continental United States in
June 1944, 72 percent were in war agencies (table 1). The War
Department alone had 42 percent of the total and the Navy Depart
ment 23 percent. Other war agencies, which had 7 percent of the
total, included the emergency war agencies, such as the War Manpower
Commission, Office of Censorship, Office of Price Administration,
and the Selective Service System, to mention some of the larger
ones, in addition to the three peacetime agencies—Maritime Commis
sion, National Advisory Committee for Aeronautics, and The Panama
Canal—-now having only war functions.
The rest of the agencies, which had 28 percent of the employment,
were by no means all engaged in normal peacetime pursuits. The
Post Office Department, with 352,000 of the 814,000 employees in
this group in June 1944, handled a volume of mail unprecedented
before the war. Many of the Treasury Department’s 93,000 employ
ees were engaged in activities connected with financing the war, while
the 50,000 employees of the Veterans Administration were engaged
in the financial remuneration, medical care, and hospitalization of
men and women who have served in this or in previous wTars. Also,
the National Housing Agency is charged with the responsibility of
providing houses for war workers, and the Reconstruction Finance
Corporation with the provision of financial means for constructing
war production facilities. Other agencies share in the prosecution of
the war to a greater or less extent and have added new war units or
have modified the type of service rendered as a result of the war.
Only 7 percent of the employees of war agencies who were stationed
within continental United States were in the Washington metropolitan
area, a,s contrasted with 16 percent for other agencies. Of the war
agencies the War and Navy Departments, War Manpower Commis
sion, War Shipping Administration, Office of Censorship, Office of
Price Administration, Selective Service System, and the National
Advisory Committee for Aeronautics, because of the nature of their
activities, had only a small proportion of their employees in Wash
ington. The opposite was true for the Office of Civilian Defense, the
Office of Scientific Research and Development, War Production
Board, Office of Strategic Services, and Petroleum Administration for
2
Force-account workers are those who are hired directly b y the G overnm ent to work on a particular con
struction project and whose em ploym ent will be term inated at the completion of the project. Federal agen
cies which em ploy large num bers of this type of worker are the W ar and Interior D epartm ents and the
Tennessee Valley A uthority.
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Mon thly Labor Review—October 1944
War. Although the figures in table 1 indicate that a high proportion of
employees of the Coordinator of Inter-American Affairs, Foreign Eco
nomic Administration, and The Panama Canal, as well as of the State
Department, were in Washington, this is only because the large
numbers of employees of these agencies stationed outside continental
United States 3 were not included.
Of the other agencies, the Employees’ Compensation Commission,
Railroad Retirement Board, Securities and Exchange Commission, and
Tennessee Valley Authority had their headquarters offices outside
Washington. The functions of the Treasury, Justice, Post Office,
Agriculture, and Interior Departments, National Housing Agency, and
Veterans Administration demand a wide geographic distribution of
staff.
T a b le 1.—Employment in Executive Branch of U. S. Government Inside and Outside
Washington (D. C.) Metropolitan Area, by Agency, June 30, 1944 1
N um ber of employees
Agency
Total
W ashing
ton m et
ropolitan
area 2
Other
areas
Agency
total as
percent of
total for
all agen
cies
Em ploy
ees out
side
W ashing
ton m et
ropolitan
area as
percent of
total
All agencies____________ ________________________ 2,918, 287
270,019 2,648, 268
100.0
90.7
W ar agencies____________________________ ________ 2,103,800
W ar D ep artm en t____________________ ________ 1, 240,933
672,169
N av y D e p artm e n t__________________ _____ ___
190, 698
O ther w ar agencies___________________________
208
T h e Pan am a C an al______________________
10,574
M aritim e Comm ission____________________
N ational A dvisory C om m ittee for Aero
6,068
n au tics________________________________
Office for Em ergency M anagem ent:
890
Alien P roperty C ustodian_____________
3, 840
Central A dm inistrative Services_______
1,015
C oordinator of Inter-A m erican Affairs. __
116
F air E m ploym ent Practice C o m m ittee..
3,885
Foreign Economic A dm inistration-------3,478
N ational W ar L abor B oard____________
157
Office of C ivilian Defense______________
4,783
Office of Defense T ran sp o rtatio n............. .
9
Office of Economic Stabilization_______
Office of Scientific Research and D evel
858
opm ent ____________________________
4,185
Office of W ar Inform ation____ ____ ____
45
Office of W ar M obilization____________
1,602
Smaller W ar P lan ts C orporation_______
26,169
W ar M anpow er Comm ission__________
15,412
W ar Production B oard________________
11,911
W ar Shipping A dm inistration_________
85
C om m ittee for Congested Production Areas.
10, 561
Office of C ensorship______________________
59,155
Office of Price A dm inistration_____________
1,972
Office of Strategic Services________________
1, 254
Petroleum A dm inistration for W a r________
22,435
Selective Service System __________________
31
W ar Refugee B o ard _________.,____________
139, 978 1,963,822
54,288 1,186,645
51,450
620, 719
34,240
156,458
161
47
7,121
3,453
72.1
42.5
23.1
6.5
(3)
.4
93.3
95.6
92.3
82.0
22.6
67.3
.2
98.0
All other agencies____ _____ _____ ______ __________
Executive office of the President:
W hite House Office.._________ ___________
B ureau of the B u d g et____ ______ _____ ____
Liaison Office for Personnel M anagem ent—
Executive mansion and grounds___________
S ta te ________ _____ _________________________
T reasu ry ______________________ _____________
Ju stice________________________ ______ _______
Post Office__________________________________
Interior___ ______ _______ ____________________
120
5,948
376
1,520
825
54
3,624
623
105
699
9
514
2, 320
190
62
261
2, 855
52
4,084
651
991
45
363
1,425
9, 658
1,290
32
655
4,284
1,799
831
618
29
207
3,194
1,239
24, 744
5, 754
10, 621
53
9, 906
54,871
173
423
21,817
2
814,487
130,041
684,446
50
544
3
87
3, 574
93, 312
28,776
351,642
39,100
50
526
3
87
3,214
23,800
8,218
8,321
4,831
(3)
(3)
(3)
(3)
.2
57.8
60.4
18.7
53.4
6.7
82.1
33.1
85.4
.1
24.1
76.3
.1
.1
.1
(3)
18
360
69, 512
20,558
343,321
34,269
(3)
(3)
.1
.9
.5
.4
.4
2.0
.1
.1
.8
(3)
77.3
94.6
37.3
89.2
62.4
93.8
92.8
8.8
33.7
97.2
6.5
27.9
84.0
(3)
(3)
(3)
(3)
(3)
.1
3.2
1.0
12.1
1.4
3.3
10.1
74.5
71.4
97.6
87.6
See fo o tn o te s a t e n d o f ta b le .
3
In this study The Panam a Canal Zone was considered outside the continental lim its of the U nited States.
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Federal Reserve Bank of St. Louis
Employment and Labor Conditions
731
T a b le 1 — Employment in Executive Branch of U. S. Government Inside and Outside
Washington (D. C.) Metropolitan Area, by Agency, June 30, 1944 1— Continued
N u m b er of employees
Agency
Total
All otherfagencies—C ontinued.
A griculture______ __________________________ _
Commerce..____ ____________________________
L abo r______________________________________
Am erican B attle M onum ents Commission_____
A m erican Commission for Protection of M onu
m ents in E urope___________ ____ __________
Board of Governors, Federal Reserve System __
Board of Investigation and Research—T rans
portatio n_______________________ _____ _____
Civil Service Commission_____ _____________ "
Em ployees’ C om pensation Commission.............
E xport Im p o rt B a n k _________ _____ ______ _
Federal Com m unications Commission_________
Federal D eposit Insurance Corporation________
Federal Pow er Commission____ _____ _________
Federal Security Agency____________ _________
Federal T rade Commission____ ______________
Federal W orks A gency_______________________
General Accounting Office____________________
G overnm ent Printing Office_____ ____________
Interstate Commerce Commission.................... .....
N ational A rchives__________________ _______ __
N ational C apital Housing A u th o rity __________
N ational C apital P a rk and Planning Commis
sion_______________________________________
N ational H ousing Agency____________________
N ational L abor Relations B oard._____________
N ational M ediation B oard____ ________
P anam a R ailroad C om pany__________________
Petroleum Reserves C orporation______________
R ailroad R etirem ent B oard___________________
R econstruction Finance C orporation__________
Securities and Exchange Commission__________
Sm ithsonian In stitu tio n ______________________
Tariff Commission___________________________
Tax C ourt of the U nited States_______________
Tennessee Valley A u th o rity _____. . . . . _________
Veterans A dm inistration_____________________
W ash in g
ton m et
ropolitan
area
76,167
28,685
6,035
1
10,195
10,103
1,974
1
3
455
3
435
19
6,887
471
56
1,524
1,720
667
30,054
446
19,868
11,962
7,086
2,120
349
243
19
3,325
32
56
900
246
484
6,887
390
14, 363
7, 538
7,031
1,424
340
243
4
18,264
697
87
59
11
1,775
7,898
1,151
776
303
122
21,025
50,409
4
3,260
297
24
11
21
3, 791
9
768
293
122
9
6,393
Other
areas
Agency
total as
percent of
total for
all agen
cies
65,972
18, 582
4,061
2.6
1.0
.2
E m ploy
ees out
side
W ashing
ton m et
ropolitan
area as
percent of
total
86.6
64.8
67.3
(3)
(3)
(3)
20
3,562
439
624
1,474
183
23,167
56
5,505
4,424
55
696
9
15,004
400
63
59
(3)
(3)
(3)
(3)
(3)
4.4
.2
51.7
93.2
.1
.1
40.9
85.7
27.4
77.1
1.0
.7
.4
.2
.1
(3)
(3)
(3)
.6
(3)
(3)
(3)
.1
.3
.1
(3)
(3)
2.6
82.2
57.4
72.4
98.8
52.0
99.2
1.0
3.3
( 3)
21,016
44,016
.8
32.8
100.0
( 3)
1,754
4,107
1,142
8
10
12.6
27.7
37.0
.7
1.7
99.9
87.3
1 D ata exclude employees outside continental lim its of the U nited States and those on basis of $1 per
m °ntR j e a r or w ithout compensation. See M onthly Report of Em ploym ent, Civil Service Commission
2 T he W ashington m etropolitan area includes certain adjacent sections in M aryland and Virginia, as
designated b y the B ureau of the Census.
3 Less th a n a te n th of 1 percent.
State Distribution of War and Other Agencies
New York and California each had nearly 300,000 Federal em
ployees in June 1944—more than the National Capital. These two
States, together with Pennsylvania, Texas, and Illinois, accounted for a
third of all Federal workers. In addition, Massachusetts, Virginia,
and Ohio had over 100,000 Federal employees each.
War agencies had one of every twm Federal employees in the Wash
ington (D. C.) metropolitan area and 3 of every 4 in the 48 States.
These heavier concentrations are explained by the fact that in every
State with 100,000 or more Federal employees (except New York and
Illinois), war agencies accounted for a higher proportion of the total
employment than the average for the 48 States as a whole. New York
City and Chicago contain the headquarters or large branch offices of
many peacetime agencies and this served to reduce the proportion of
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Federal Reserve Bank of St. Louis
Monthly Labor Review—October 1944
732
war-agency employees to 3 of every 5 in Illinois and to just under 3 of
every 4 in New York.
T a ble 2.—Estimated Employment in Executive Branch of U. S. Government, by
War and Other Agencies and by States June 30, 1944 1
N u m b er of employees
State
Total
W ar agen
cies 2
All other
agencies
S tate
total as
percent
of all
areas
W ar agen
cies as
percent
of State
total
All areas--------------- --------- --------- 3 2,918, 289
270,019
W ashington m etropolitan area 4—
2, 648, 270
O ther areas____________________ ____
s 2,103,798
139, 978
1,963,820
3 814,491
130,041
684, 450
100.0
9.3
90.7
72.1
51.8
74.2
A labam a______________________________
A rizona_______ ______________ ________
A rkansas___________________ ______ -C alifornia______________________________
Colorado_______ _____________________
C onnecticut_________________________ -D e la w a re ________ _____ - --------------- -F lo r id a _________________________ ______
57, 710
18, 670
27, 430
289,060
26. 980
12. 530
2, 920
73, 470
43,930
11,690
19. 640
246, 270
17, 570
6, 230
1,900
64,190
13,780
6,980
7,790
42, 790
9,410
6, 300
1,020
9,280
2.0
.6
.9
9.9
.9
.4
.1
2.5
76.1
62.6
71.6
85.2
65.1
49.7
65.1
87.4
Georgia__________________ ___________
Id a h o _________________________________
Illinois________________________________
In d ia n a ______ ______________ ______
Io w a _______ _
------ --------- ---------K a n s a s .........._ .................. . - _______ -K e n tu c k y ..
_
________ ___________
L ouisiana______________________________
70,710
9,780
128, 550
37. 630
17, 490
34, 290
29, 840
41, 590
55, 760
5,910
75, mo
24, 730
6, 720
24, 280
16. 150
31,510
14,950
3,870
53, 450
12,900
10, 770
10.010
13, 690
10,080
2.4
.3
4.4
1.3
.6
1.1
1.0
1.4
78.9
60.4
58.4
65.7
38.4
70.8
54.1
75.8
M a in e 5_______ ._ . ______
. . . ---M ary lan d ____________ ________________
M assachusetts_________________________
M ichigan_____________________ _______
M innesota_____________________________
M ississippi_________ ______
___ ___
M issouri____________________. . . _______
M o n tan a__________ ____ _ ___________
29.740
53, 560
114, 170
53, 290
18, 820
26.660
50, 730
8, 320
25,050
39, 220
93. 730
34. 200
4.710
19, 550
29,110
3,030
4, 690
14, 340
20, 440
19,090
14, 110
7, 110
21, 620
5,290
1.0
1.8
3.9
1.8
.7
.9
1.7
.3
84.2
73.2
82.1
64.2
25.0
73.3
57.4
36.5
N ebraska________________ ____ _________
N e v ad a _________ _____________________
New H am pshire 5. . ______- . .
_______
New Jersey______ _____ ____ ___________
N ew Mexico___________________________
N ew Y o rk________ _____ ____ __________
N orth C arolina_____ ___________________
N o rth D akota_________________________
27, 650
6,050
3, 960
83, 240
15, 840
297, 420
45, 440
5,050
20,020
3. 740
1,860
69,810
10,230
211,880
28, 780
600
7, 630
2,310
2,100
13, 430
5,610
85, 540
16, 660
4,450
1.0
.2
.1
2.9
.6
10.2
1.6
.2
O hio__________________________________
O klahom a_____________ _____ ____ ______
Oregon________________________________
P enn sy lv an ia____ _____________________
R hode Island___ . . . _________________
South C arolina______ ________________
South D ak o ta__________________________
Tennessee_____________________________
111, 620
44, 850
18, 730
196,910
25, 540
51,180
10, 240
41,190
83.410
34,810
10, n o
158,050
23, 280
45, 120
5,130
21, 250
28, 210
10,040
8, 620
38,860
2. 260
6.060
5,110
19, 940
3.8
1.5
.6
6.7
.9
1.8
.4
1.4
74.7
77.6
54.0
80.3
91.2
88.2
50. 1
51.6
T exas_____ _______ ___________________
U ta h ______ ____ ______________________
V erm o n t__________________________ ____
V irginia_______________________________
W ashington________ _________________
Wrest V irginia__________________________
W isconsin_______ . _____ ____________
W yom ing______________________________
144,910
35, 740
2, 800
109,170
93, 230
9,960
21, 280
5,200
115,280
31,060
460
95,180
78, 060
3, 490
8. 250
2,270
29,630
4, 680
2, 340
13,990
15,170
6, 470
13,030
2,930
5.0
1.2
.1
3.8
3.2
.3
.7
.2
79.6
86.9
16.3
87.2
83.7
35.0
38.8
43.7
U ndistrib u ted *____ ____________________
7,130
1,510
5,620
.3
21.2
•
72.4
61.8
47.0
83.9
64.6
71.2
63.3
12.0
1 D ata exclude employees outside continental lim its of th e U nited States and those on basis of $1 per
m onth or year or w ithout compensation.
’
2 Includes M aritim e Commission, N ational A dvisory C om m ittee for A eronautics, T h e P anam a Canal,
and th e emergency w ar agencies.
2 D ata for individual States were rounded to the nearest 10, and therefore the totals for all areas do not
agree exactly w ith those shown in table 1.
4
T h e W ashington m etropolitan area includes certain adjacent sections in M aryland and Virginia as des
ignated by the B ureau of the Census.
1 Portsm outh (N. H .) n av y yard included w ith S tate of M aine because its physical location, w ith the
exception of headquarters office, is in th a t State.
• Covers employees in travel statu s and not assigned to any p articular station.
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Federal Reserve Bank of St. Louis
Employment and Labor Conditions
733
Rhode Island ranked highest in the proportion of employees in war
establishments but was followed closely by South Carolina, Virginia,
Florida, Utah, and California, all of which had 9 of every 10 employees
in war establishments. South Carolina, Virginia, and California have
large navy yards; Rhode Island and Florida have naval torpedo sta
tions, operating bases, and air stations; and Utah has a large Army air
depot.
Only 10 States had less than 50 percent of their Federal employment
in war agencies. In Vermont and North Dakota, only 16 and 12 per
cent, respectively, of Federal employees were in war establishments.
STATE DISTRIBUTION OF SELECTED AGENCIES
Of the 48 States, New York ranked highest in the Post Office,
Treasury, and Justice Departments, War Manpower Commission,
Office of Price Administration, National Housing Agency, and Vet
erans Administration, as well as in a number of the smaller agencies.
Although California led in only four of the agencies shown in table 3,
these included the War and Navy Departments, as well as the Agricul
ture and Commerce Departments, and brought the California total
of 289,000 within 8,000 of the New York total. Arizona, Pennsylvania,
and Maryland ranked first, among the agencies shown in table 3, in
the Interior Department, Selective Service System, and Federal
Security Agency, respectively.
Of the agencies shown in table 3, the Navy Department showed the
greatest tendency toward concentration of employees in certain of the
States. California, with over 100,000 Navy employees, not only had
a navy yard, but also is the nearest to the area of the largest naval
operations and for this reason had many supply depots. Also, because
of its climate and its harbor facilities, it had many air stations and
training schools.
All the other agencies shown, except the Veterans Administration,
had some employees in every State, with concentrations in the States
where branch offices were located. For example, the concentration
of employees of the Treasury Department in the State of Illinois
reflected the large staff of the Division of Savings Bonds and that in
New York the location of a number of Treasury offices there—customs
office, assay office, secret service, narcotic control, and others. Like
wise, the concentration of Justice Department employees in California,
New York, Pennsylvania, and Texas was the result of the location
there of immigration and naturalization offices, penal institutions, and
district offices of United States attorneys and marshals. Larger than
the number of Justice employees in any single State was the group
which was not distributed by State, which consisted mainly of em
ployees of the Federal Bureau of Investigation.
The nature of the activities of the Interior and Agriculture Depart
ments was such that the State distributions were markedly different
from those in the rest of the agencies. The Office of Indian Affairs
was largely responsible for the high proportion of Interior employees in
Arizona, Montana, New Mexico, Oklahoma, and South Dakota, and
the Bureau of Reclamation for the high proportion in California,
Colorado, Nevada, and Washington, while the Bonneville Power
Administration had most of the Interior employees in Oregon. Experi
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Federal Reserve Bank of St. Louis
734
Monthly Labor Review—October 1944
mental metallurgical work directed from the regional office of the
Bureau of Mines in Salt Lake City made Utah an important State for
the Interior Department. Although the Agriculture Department had
some employees in every State, there were higher numbers in States
where agriculture is a prominent industry. California and Wisconsin
had a number of employees in the Forest Service, including some on
emergency rubber projects, while the Office of Distribution in the War
Food Administration carried on extensive activities in New York and
Illinois. In addition, ther State distribution was influenced by the
location of the headquarters of certain of the Bureaus in the States,
such as that of the Farm Credit Administration and of the Rural Elec
trification Administration in Missouri and that of the Farm Security
Administration in Ohio.
The 5,300 employees of the Federal Security Agency in the State of
Maryland were, for the most part, working in the Bureau of Old-Age
and Survivors Insurance of the Social Security Board in Baltimore.
Agencies not shown separately in table 3 had slightly over 100,000
employees, or 6 percent of the total. The 21,000 in New York were
mainly in the Office of War Information, War Shipping Administra
tion, Office of Censorship, Labor Department, and Reconstruction
Finance Corporation. Most of the employees in this group in
Tennessee, North Carolina, Kentucky, and Alabama were in the
Tennessee Valley Authority; those in Pennsylvania were mainly in
the Securities and Exchange Commission, Maritime Commission,
Labor Department, National War Labor Board, and Reconstruction
Finance Corporation. In Illinois the headquarters office of the Rail
road Retirement Board accounted for 1,100 of the 6,400 employees
not shown by agency in table 3, and in Ohio, the National Advisory
Committee for Aeronautics accounted for 2,200 of the 4,800 employees
in this group.
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Federal Reserve Bank of St. Louis
735
Employment and Labor Conditions
T a b le 3. —Estimated Employment in Selected Agencies of the Federal Government
by State, June 30, 19441
State
W ar
All a re a s2___________________ 1, 240,938
W ashington m etropolitan
a re a 3__________________
54,288
O ther areas______________ 1,186,650
N avy
Post
Office
672,170
351,641
93,310
28, 778
39,101
76,165
51,450
620, 720
8, 321
343, 320
23,800
69, 510
8, 218
20, 560
4,831
34, 270
10,195
65; 970
200
50
440
240
250
3,820
1,020
760
100
810
120
210
60
1,270
180
230
10
360
180
3,860
460
2, 750
1,820
20
10
230
1,870
480
1,620
5, 030
160
70
1,020
Treas
ury
Justice
Interior
Agri
culture
A labam a____________________
A rizona._______ ____________
A rkansas_______________ ____
California.............................. ........
Colorado____________________
C onnecticut_________________
D elaw are................................. .
Florida............. ............... ..............
41, 510
10, 930
18, 250
123, 920
15, 720
1,770
1, 430
33, 700
106,900
100
2,010
150
26,460
4, 760
1,120
3, 950
19, 690
3,420
4,400
720
4, 480
G eorgia_______ ______________
Id a h o .......................... ....................
Illin o is..____________________
In d ia n a _____________________
Iow a_________ ____ __________
K ansas__________ ___________
K entucky___________________
Louisiana___________________
50, 940
2,940
59, 860
14, 280
4, 330
22, 360
14,050
22,420
1,400
2,390
7,330
7, 760
450
350
170
5,820
6,130
1,440
27,480
8, 580
7, 220
5,810
6, 690
3, 910
1,050
150
11,670
930
750
530
1,050
1,040
510
50
430
240
50
330
170
210
200
820
870
170
40
370
220
100
2, 550
' 940
3, 200
1, 280
L 510
L390
1,290
1,870
M a i n e . .. _______ ___________
M ary lan d _______ ____ _______
M assachusetts_________ ____ _
M ichigan____________________
M innesota___________________
M ississippi________ __________
M issouri____________________
M o n tan a ____________________
2,660
24, 220
40, 900
26, 950
1,960
17,920
24, 770
2,410
i 21, 370
12, 740
47, 250
2, 420
360
10
910
2,810
4,550
13,100
12,160
8,240
3, 510
12, 320
1, 900
450
1,600
2,480
1,990
1,170
240
1, 620
260
160
130
480
570
250
60
330
150
70
100
170
130
760
260
690
1, 210
270
570
540
990
1,790
1,480
3; 060
1,080
N ebraska___________________
N e v ad a _____________________
N ew H am pshire____ _________
N ew Jersey__________________
N ew M exico_________________
N ew Y o rk ___________________
N o rth C arolina______________
N o rth D a k o ta _______________
12,870
1,580
1, 200
58,500
9, 680
98,750
19,420
70
5, 900
1,930
« 80
7,810
4, 260
440
1,520
8, 960
1,310
47, 870
5,960
2,350
460
60
160
1,720
130
14,070
680
220
50
20
10
310
180
2,550
90
170
200
1,380
50
50
2,030
300
260
580
1,700
200
170
550
980
2,370
L 690
760
O hio________________________ _
O klahom a..................................... .
Oregon______________________
P ennsylvan ia________________
R hode Isla n d ________________
South Carolina____ _____ ____
South D a k o ta ________________
Tennessee___________________
69,070
25,170
7,310
73, 490
1,670
15, 680
4, 490
18, 270
5,020
7,870
920
75,210
20, 600
28,140
17, 700
4,890
3, 230
22, 710
1, 580
2,920
2, 300
5,910
2,800
440
520
6, 000
290
260
150
550
540
290
80
1,920
50
50
20
80
180
2,040
1,590
890
10
90
1,300
290
1,690
1,410
1,820
1, 760
80
1,340
870
1,290
Texas_______________
U ta h .................................... .........'
V erm o n t........................ ................
V irginia_____________________
W ashington______________. . . .
W est V irginia________________
W isconsin ..._________________
W yom ing...................... ................
97, 950
25,070
20
21,710
33,880
2,080
5,070
1,940
9,800
5,240
13,120
1,520
1,410
7,160
4, 920
4, 390
7, 550
950
2,560
230
230
790
1, 330
420
910
100
1,550
40
190
220
610
210
70
10
720
1,340
10
330
3, 380
170
290
830
4,840
780
220
1,150
1,440
620
2,190
390
U ndistribu ted 6________ _____
1, 510
4,690
450
See footnotes at end of table.
61 0 0 5 4- 44-
-5
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Federal Reserve Bank of St. Louis
87, 280
6,980
(8)
910
68,010
41, 370
130
920
(6)
peoo
(s)
Monthly Labor Review—October 1944
736
T a ble 3. —Estimated Employment in Selected Agencies of the Federul Government,
by State, June 30, 19441— Continued
Com
merce
State
W ar
M an
power
Com
mission
Selective
Service
System
Office of
Price
A dm in
istration
Federal
Security
Agency
N ational V eterans
Housing A dm in
Agency istration
All a re a s 2.. ------- ------ ------W ashington m etropolitan
area.3
O ther areas. ------------------
28, 683
10,103
26,165
1,425
22,438
618
59,154
4, 284
30,057
6, 887
18, 260
3,260
50,413
6, 393
18, 580
24,740
21,820
54, 870
23,170
15, 000
44,020
A labam a------------------------------A rizona.
------------------------A rkansas-----------------------------C alifornia.. . . . ------- -----Colorado----------------- -------- -C onnecticut-------- -----------Delaw are
_________ -- -- F lorid a---------------------------------
350
190
240
1,890
230
60
60
600
440
140
270
2,200
280
410
50
390
450
90
330
1,410
170
240
40
370
960
290
690
3,810
820
920
170
870
320
50
220
1, 250
150
100
20
640
80
90
80
1,800
50
200
10
260
1, 240
610
780
2,930
470
300
G eorgia------------------------ ------ Id a h o ----------------------------------Illin o is.. ---------------------------In d ia n a -------------------- -----------Iow a. . . ---------------------------K ansas--------------------------------K en tu ck y ------------------ ---------L o u isia n a ..---------------------------
940
150
770
250
200
260
140
440
490
100
1,370
690
380
250
360
310
480
120
1,180
450
350
310
430
390
1,570
300
3,110
1,280
1,050
900
1,000
980
770
30
1,120
170
40
60
650
1,530
580
40
850
240
40
330
60
70
910
210
2,920
860
800
870
660
480
M aine -------------------------------M ary lan d ----------------------------M assach u setts.. . . . . . --------M ichigan--------- ------ -- -- M innesota------------------- ----M ississippi------------------- -------M isso u ri.. . ------- ------ -- -M o n tan a------------------------------
90
310
210
240
190
260
880
290
170
460
950
1,120
590
260
740
90
140
280
670
890
370
410
500
120
490
690
2, 520
2,060
1,080
720
1,390
340
100
5,340
680
440
150
240
660
120
150
500
290
1,020
50
190
250
10
540
830
1,440
790
1,000
720
810
180
N eb rask a-----------------------------N ev ad a. . . ---------------- -- --N ew H am pshire-------------------N ew Jersey -------------------------N ew Mexico ----------- ---------N ew Y o rk ----------------- ------N orth Carolina
. ---- ----N o rth D a k o ta ------------- . . . .
180
100
40
60
260
1, 350
270
130
240
60
110
870
80
2,340
450
70
250
40
80
710
110
2, 230
500
110
650
110
330
1,460
310
4, 450
1,180
300
30
20
20
120
170
2, 430
420
20
310
10
40
240
30
1,940
110
(5)
240
50
70
630
430
8,040
950
180
O h io .. __________________ -O klahom a. _______ ______
O regon... . . . . -------------- -P en n sy lv an ia-----------------------R hode Isla n d ________________
South C arolina..
... .. ...
South D ak o ta------- ---------------Tennessee___________________
450
240
290
520
40
260
100
300
1,560
330
320
1,880
220
260
100
430
1,050
370
190
2,250
100
290
160
410
3,160
900
670
3,140
490
660
320
1,020
550
130
100
640
30
490
10
260
1,030
90
130
450
20
30
20
240
2, 060
340
540
1, 540
90
460
310
1,290
Texas____________ _________
U ta h _____________ _______
V erm ont------ ------------ -- -----Virginia. _ ____________
W ashington____ _ . . . -----W est V irg in ia ------ ---------------W isconsin . . . ______ . .
W yom ing________ ________
1,770
180
50
1,310
1,020
140
140
140
1,010
180
60
460
540
210
390
60
1,060
110
60
520
270
290
410
60
3,090
360
270
1,040
990
680
1,100
180
1,160
20
10
530
480
110
90
10
910
220
30
770
810
60
220
50
1, 550
160
150
1,140
610
280
1,420
430
U n d is trib u te d 0 _____
(5)
_____
710
470
1 D ata exclude employees outside continental lim its of the U nited States, and those on basis of $1 per
m on th or year or w ith o u t compensation.
2 D a ta for individual States were rounded to th e nearest 10, and therefore the totals for all areas will not
agree exactly w ith those shown in table 1.
2 T he W ashington m etropolitan area includes certain adjacent sections in M aryland and Virginia, as
designated b y the B ureau of the Census.
4 P ortsm outh (N . H .) nav y yard included w ith State of M aine because its physical location, w ith excep
tion of headquarters office, is in th a t State.
s Few er th a n 5 employees.
6 Covers employees in travel statu s and no t assigned to any p articular station.
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Federal Reserve Bank of St. Louis
Employment and Labor Conditions
737
Effects of Long W orking H ours: Sum m ary of 12
P lan t Surveys1
STUDIES by the Bureau of Labor Statistics of the effects of long
working hours in 6 additional plants corroborate and shed further light
on the tentative conclusions drawn from the first 6 plant surveys.2 It
appears that hours worked beyond 40 or 48 per week result in addi
tional output, but at the price of continuous decreases in efficiency
and marked increases in absenteeism as hours rise. A point is finally
reached at which the longer work schedule is no more productive, and
actually may be less productive, than a shorter work schedule. With
few exceptions, the longer working time in the plants studied resulted
m a general slowing down, not only during the added hours but
throughout the entire workweek.
Another point illustrated by the survey of the additional plants is
that the 7-day week, as a steady program, is uneconomic and may
actually result in less production than the 6-day week.
Among the 12 metalworking plants studied, the operations varied
from foundry and forge-shop work to bench operations which required
the processing of metal parts weighing as little as one ounce. There
was no intention to study metalworking operations exclusively; it
simply happened that long working hours were found most frequently
in these industries. The material worked, however—whether metal,
or wood, or leather, or paper, or any other substance—is of no great
significance. Given the same types of exertion requirements, control
over speed, and wage incentives, the work performance under the
same hours schedules will probably follow much the same patterns.
Hours in Relation to Output
The surveys make clear that there is no such thing as an “optimum
hour schedule” for all of industry. What appears to be a satisfactory
schedule of hours for a plant with light machining operations may be
economically wasteful in a foundry. Further, there is a marked
difference in the performance of men working under wage incentives
and those working at straight hourly rates without any kind of wage
incentive, kluch depends on the type of work and the requirements
it exacts from workers, the degree to which workers can control the
speed of operations, and the incentives which motivate them—whether
in the volume of pay, participation in the war effort, labor relations,
or working conditions generally.
The available evidence indicates that, on the whole, the 5-day week
and 8-hour day are more efficient than a work" schedule ¿with longer
hours. That does not mean, how ever, that longer,hours are not
productive. There is little sacrifice of efficiency,|for][instance, if a
sixth day of 8 hours or less is^added.
The sharper break comes when daily hours are raised from 8 to 9l/2 or
10 or 11, provided the workers operate under an incentive-wage system.
The primary effect of this lengthening of daily hours for workers on
the day shift, when the 5-day week is maintained, is to wipe out the
1 Prepared in the B ureau’s In d u strial H azards Division, by M ax D . Kossoris.
2 See M o n th ly Labor Review for June 1944 (p. 1131).
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Federal Reserve Bank of St. Louis
738
Monthly Labor Review—October 1944
midweek spurt. The analysis of daily production patterns in several
plants under a 40- or 48-hour schedule shows a building up of hourly
efficiencies toward a peak on the third and fourth days of the week,
with a slight drop thereafter. When daily hours were lengthened to
9% or more, however, this peak disappeared. The production curve
for the successive days of the week flattened out, and any one day was
about as good as any other day. When a sixth day was added, the
line of production remained flat, but dropped to a lower level. The
data indicate clearly that workers adjust themselves to longer hours
by slowing down, not because they want to, but because they have to.
For workers on the second or night shift, the pattern is somewhat
different. Their daily efficiency performance under the 8-hour day
and 5-day week looks much like that of the day shift on the
10-hour day. There is practically no midweek spurt, and production
tends to flatten into a fairly level line. The reason for this appears
to be that these workers are somewhat tired when they come to work,
having been up for some hours and probably at work around home.
In any case, they are not so refreshed when they come on the job as
the men on the day shift who have their leisure hours after, not before,
the day’s work. When a sixth day is added to stretch the week to
58 or 60 hours, the result is likely to be a steady decline in the efficiency
level, day after day, with the peak points on Monday or Tuesday, at
the very beginning of the week.
These “fatigue patterns” furnish a reasonably accurate basis for
anticipating, for incentive-wage workers, the result of (a) changing
daily hours from 8 to 10, or from a 40-hour week to one of 50 hours,
and (b) from this level to a still higher one, by adding a sixth workday.
The first decrease in efficiency may amount to about 5 percent, and
the second from 7 to 10 percent if hours do not exceed 58 or 60, but
may be as high as 20 percent when hours reach 66.
For men on straight day-work rates, the lengthening or shortening
of hours seems of considerably less significance. This was observed
. in two foundries. In one, daily scheduled hours remained at 10,
but the sixth day was dropped. In the other, daily hours during a
6-day week were raised from 8 to 9%. In each plant the hourly
efficiency level remained essentially unchanged under the different
levels of hours. Apparently the pace at the shorter hours was not so
fast that the addition of extra hours caused a slowing down; nor did
the shortening of hours bring about any quickening of the work tempo.
In plants in which work was light or very light, the general tendency
for workers under incentive systems, and with weekly hours ranging
between 55 and 58, was to produce about a 2-hour volume of pro
duction for every 3 hours added above 48 per week (i. e., 6 days at 8
hours each). When work was heavy, as in foundries, the ratio was
more nearly 1 hour’s additional output for every additional 2 hours
worked. One reason for this was the greater need for rest pauses.
The studies included two plants in which shorter hours were
found to result in a volume of output as great as or greater than was
the case under longer hours. In a forge shop, where the work was
both hot and heavy, a 52-hour week was found to be as productive as
a 58-hour week. In a shell plant, in which morale was excellent and
the work medium heavy, the lengthening of daily hours from 8 to
10 for the day shift and 11 for the night shift, and of weekly hours
from 40 to 60 and 66, had such unsatisfactory results that the plant
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Federal Reserve Bank of St. Louis
Employment and Labor Conditions
739
eventually changed to a 48-hour week. The average increase in
output under the longer schedule was only about 7 percent above that
for the 40-hour week—-a result which could have been achieved
easily by increasing weekly hours from 40 to 43 or 44. The additional
20 hours were sheer waste of time.
The experience of one plant which had operated extensively on
Sundays under a 7-day weekly schedule demonstrated the undesira
bility of continued Sunday work. While remaining on the 8-hour
day, this plant worked a 7-day week for over a year. It then dropped
out every third Sunday, later every other Sunday, and finally every
Sunday. The analysis of this plant’s performance shows that effi
ciency was lowest during the 7-day week, and highest during the 6-day
week when no Sundays were worked at all, and that efficiency mounted
as additional Sundays were dropped. The data indicate that effi
ciency was about 36 percent better and total output about 13 percent
greater during the shortest work schedule. In terms of this perform
ance, the 7-day week amounted to 8 days’ pay for 5 days’ output.
The 30 identical operators traced throughout the entire period in
volved in these changing schedules actually produced one more day’s
output during the straight 6-day week than they formerly produced
during the 7-day week.
Hours and Absenteeism
The relationship between longer hours and absenteeism was found
to be the same in nearly every instance: As hours increased—whether
daily or weekly—absenteeism increased. In most cases the reason
could not be determined from plant records. Some of the data
suggest a higher incidence of illness. In some instances it was quite
clear that workers wanted or required more time for leisure or to attend
to personal matters. It is also likely tjiat the strain of longer hours
and the fact that the weekly pay envelope was higher than it had
been for years combined to induce workers to pay more attention to
their health and well-being. The fact that workers were limited in
the items their money could buy was also cited by some plant exec
utives as a reason why men took more time out, or why they absented
themselves for reasons which they would not have heeded under
shorter work schedules and with smaller earnings.
As a rule, absenteeism was higher for the night shift than for the day
shift under the longer work schedules. This was particularly true of
women, whose absenteeism rates generally exceeded those of men.
Hours, Accidents, and Efficiency
In the absence of effective safety programs, work injuries tended to
occur relatively more frequently under longer hours. In one plant
they occurred only one-third as frequently when the daily hours were
reduced from 10 to 8. Where plants had good, active accidentprevention programs, the lengthening of hours did not bring about a
disproportionate increase in work injuries.
Women were found to be more efficient than men at light, repetitive
and rhythmic operations requiring nimble fingers and little physical
exertion. On the other hand, men were superior on machines which
required close adjustments or which were complicated.
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Federal Reserve Bank of St. Louis
740
Monthly Labor Review—October 1944
The merit of an incentive-wage system as a spur toward greater
production was well observed in a foundry. It was found that the
change from day-work to piece-work rates resulted in slight increases
in output even when hours remained at 10 per day and 58 per week.
The result was dramatic when the introduction of the incentive
coincided with a reduction in weekly workdays from 6 to 5, even
though the 10-hour day was maintained. Output during the shorter
workweek was 13 percent greater than it formerly had been under the
6-day week. In terms of the production level which had prevailed
during the longer workweek, the men—at piece rates—produced as
much in 5 days as they formerly had in 7 days without a wage incentive.
E m ploym ent Changes in M assachusetts in R elation to
th e Post-W ar Situation
B y V ern a R . F in e , Statistician, Massachusetts Committee on Post-War Readjustment
THE central problem in post-war planning is people. If it is essen
tial for the Nation’s survival in war that people be found for all wartime
jobs, it is equally essential for the Nation’s recovery and security in
peacetime that jobs be found for all the people who want to work—
for every home-coming soldier and sailor, for every demobilized war
worker, and all others who will desire employment.
Mobilization is largely a synthetic process, in which individuals
from all walks of life are joined in mass activities. Demobilization,
on the other hand, is a kind of dispersion. Fighting men return
from a common profession to multitudinous activities of peaceful
civilian life. Soldiers, sailors, and airmen once more become farmers,
factory workers, store clerks, mechanics, lawyers, singers, actors,
businessmen, teachers, students, etc. War workers also must return
to peacetime jobs. The machinist working for a large corporation
returns to the small machine shop in his home town; the lawyer work
ing in a shipyard returns to the practice of his profession; the warworker housewife builds her home anew.
All of this is proving to be a gradual, frequently piecemeal, process
involving in the State of Massachusetts alone over a half million indi
vidual shifts. In this great dispersal the importance of each indi
vidual job cannot be overestimated. No company is too small to be
of use, since every job furthers the process of demobilization and con
tributes to the goal of full employment which, in Massachusetts, will
involve 1}{ million jobs.
An indication of how gradual this process is may be seen in the
fact that the Nation is already confronted with the task of finding
jobs for discharged war veterans and of re-assigning workers discharged
from plants which either have scaled down operations or have actually
shut down, although in many areas there is a labor shortage. As of
December 1943, of the 430,000 Massachusetts citizens who entered
the armed forces, already over 60,000 have been returned to civilian
life. Before final victory, there will certainly be an increase in the
number of discharged veterans; and, with major cut-backs and can
cellations, the ranks of discharged war workers will be considerably
swelled. In this sense the term “post-war readjustment” is inac
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Federal Reserve Bank of St. Louis
Employment and Labor Conditions
741
curate; the Massachusetts Committee on Post-War Readjustment
prefers to use the term "war adjustment now/’ always bearing in
mind, of course, the paramount demands of the war itself.
The Committee has been studying the employment changes in
Massachusetts industries that have taken place, in order to obtain
some idea of those that will take place. The statistics given in this
article are based upon data supplied by the Massachusetts Division
of Employment Security. These data are concerned only with per
sons covered by the Massachusetts Unemployment Compensation
Act. It must be borne in mind that shifts by the people not covered
by the act (including employees of nonprofit institutions, Federal,
State, and local employees, domestic workers and self-employed
persons) into the group covered by the act cannot be ascertained.
Changes in Employment Situation in Massachusetts
The material gathered on employment in the major industries in
Massachusetts falls into two distinct periods; (1) The defense (or
pre-Pearl Harbor) period, from the beginning of the war in Europe
to the time when the United States entered the war; and (2) the war
period, from December 1941 to December 1943 (the most recent date
for which relatively complete data are available).
Defense period (,September 1939-December 1941).—The pre-war
period brought increased industrial activity to Massachusetts. The
war in Europe and the defense program at home created a period of
prosperity long before the United States entered the fight. In fact,
the largest expansion of employment in the State took place in the
year 1940; the greatest increase in manufacturing employment also
occurred before the attack on Pearl Harbor, in 1941.
As the accompanying tabulation indicates, the major industries all
employed more people in December 1941 than in September 1939.
Increase in
employment, Sept.
1939-Dec. 194 I
All nonm anufacturing________ 90, 000
Nonelectrical m achinery______ 36, 000
Electrical machinery_________ 33 , 000
Textile-mill products_________ 32, 000
T r a n s p o r t a t i o n equipm ent
(except autom obiles)_______ 19,000
Iron and steel________________ 13, 000
L eather---------------------------------- 5 ,000
Increase in
employment, Sept.
1939-Dec. I 94 I
Ordnance-----------------------------Nonferrous m etals____________
Chemicals__________
Apparel 1-----------------------------R ubber--------------------------------F u rn itu re___________________
Food 1----------------------------------
5 , 000
4 , 000
4 , 000
4 , 000
3 , 000
3 , 000
2, 000
1 Because of m arked seasonality, the change in em ploym ent from December 1939 to December 1941 was
used.
It is important to note here that not only did employment in
manufacturing industries expand before the war, but employment in
nonmanufacturing, especially wholesale and retail trade, expanded
even more. The pre-war expansion cannot be explained merely as
shifts from nonessential to essential work. No doubt such shifts
did occur; a great many people entered the working force first through
nonmanufacturing, nonessential, channels and then shifted to war
work. The general expansion indicated by the data available was
partly the result of the increase in the number of working people
covered by the social security statistics as their employers entered
the group of covered establishments and partly, of course, the result
of an actual enlargement of the working force.
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Federal Reserve Bank of St. Louis
742
Monthly Labor Review—October 1944
War period {December 1941-December 1943).—Although in the pre
war period there was a general expansion in all the major industries,
the war period has seen a decline in half of these industries. The 14
industries can be divided into two groups—those industries employ
ing more people, and those employing fewer, in December 1943 than
at the time of the attack on Pearl Harbor. As indicated below, of
the 14 major industries that expanded in employment before Pearl
Harbor, the half that continued to expand were those more directly
connected with the war effort. Their expansion totaled 141,000.
The other half, whether or not they expanded within the war period,
by December 1943 were employing 108,000 fewer workers than in
the same month of 1941.
Estimated change in
employment, Dec.
1941-Dec. 194S
T ransportation
equipment
(except autom obiles)_____
Electrical m achinery_______
R ubber___________________
Nonelectrical machinery____
O rdnance__________________
Iron and steel_____________
Nonferrous m etals_________
+ 54, 000
+ 47, 000
+ 1 1 ,0 0 0
+ 1 0 ,0 0 0
+ 9, 000
+ 7, 000
+ 3, 000
Estimated change in
employment, Dec.
1941-Dec. 1943
All nonm anufacturing*_____
Textile-mill products_______
L eather___________________
Food_____________________
F u rn itu re_________________
A pparel____________________
Chemicals_________________
—56,000
—31, 000
—12,000
—4, 000
—3, 000
—2,000
0)
1 Decrease of less th an 500.
Entire period (September 1939-December 1943).—If the whole 52month period beginning in September 1939 is studied, it is seen that
some industries in Massachusetts employed more workers in Decem
ber 1943 than in September 1939, some employed fewer workers, and
in some the level of employment was about the same in both months.
Change in
employment,
Sept. 1939Dec. 1943
Group I:
Group II:
Electrical m achinery___ + 8 0 ,0 0 0
L eather_______________
T ra n s p o r ta tio n e q u ip
A pparel_______________
m ent (except auto
Food_________________
mobiles)____________ + 7 2 ,0 0 0
Group
III:
Nonelectrical m achinery. + 4 6 ,0 0 0
All nonm anufacturing__ + 34, 000
Textile-mill products___
Iron and steel_________ + 20, 000
F urn itu re_____________
R ubber_______________ + 14, 000
Ordnance_____________ + 14, 000
Nonferrous m etals_____
+ 7 , 000
Chemicals_____________ + 3 , 000
Change in
employment,
Sept. 1939—
Dec. 1943
—7, 000
—5, 000
- 5 , 000
+ 1 , 000
(')
Decrease of less th a n 500.
Of the 14 major industries, 10 had net increases in employment over
September 1939 totaling 291,000. Some of these, as has been shown,
had already started to decline. Although the nonmanufacturingindustries group had the largest pre-war employment expansion and
the greatest wartime decline when compared with the major manu
facturing industries, at the end of 1943 nonmanufacturing was still
in the group that has had an over-all expansion since September 1939,
and was still above its pre-defense level.
The decrease since the attack on Pearl Harbor in employment in
the textile, leather, food, furniture, and apparel industries, when
totaled, appears large (over 50,000), but during the whole 4%-year
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Federal Reserve Bank of St. Louis
743
Employment and Labor Conditions
period the net change in employment in these five major industries
amounted to a drop of only 16,000. In the pre-Pearl Harbor period,
employment in all these major industries increased by 253,000,
whereas in the war period the net increase was only 33,000.
As already shown, by the end of 1943 employment in seven of the
major industries had reached a definite peak and a downward trend
had set in. In the nonelectrical machinery industry, also, a decline
started in 1942, although for the period as a whole there was a net
increase. The accompanying tabulation shows the year and volume
of peak employment in seven of the industries, and the estimated drop
in employment from the peak to December 1943. Since the peak
employment dates fall within the major periods used, these total
declines do not correspond with those shown previously.
Year
Food
- -. . .
Nonm anufacturing __ _ . -Textile-mill products -----.„
—
L eather__ __
...
A pparel. _____
F urn itu re.
_ _
_ — ...
Nonelectrical m achinery___
1940
1941
1941
1941
1941
1941
1942
Peak em
ployment
Estimated
decrease
from peak
to Dec. 1943
44, 000
584, 000
161, 000
81, 000
57, 000
18, 000
95, 000
9, 000
67, 000
34, 000
17, 000
10 , 000
3, 000
14, 000
Additional data indicate that employment in the ordnance, iron and
steel, and nonferrous-metals industries leveled off in 1943, while
employment in chemicals and transportation equipment showed signs
of a turning point toward the end of 1943. Employment in electrical
machinery and rubber was still increasing, although at a slower rate.
It should be recognized that declines in employment are not as yet
chiefly the result of dismissals, but represent mostly the voluntary
quits of workers who are shifting to more essential jobs, quits of mili
tary selectees or enlistees, and (more recently) quits of women leaving
the labor market entirely. The major effects of cut-backs of war con
tracts had not been felt in Massachusetts industries by December 1943.
Importance of Timing in Employment Changes
The important point is the element of timing of the changes in
employment. The major industries have been affected differently by
pre-war and war conditions, depending on their importance to military
demands; each industry, too, will be affected differently by post-war
conditions. The adjustment period is not a definite one affecting all
industries simultaneously, nor is it a period that is still in the future,
to arrive only when fighting ceases. The adjustment period is here
now; its effects on industry will continue, irregularly spaced, into the
post-war period. However, since all but two of the major industries
have already made downward adjustments, the full impact of reduc
tion is being spread out.
As just shown, the labor force of six of Massachusetts’ major indus
tries had reached a peak even before the United States was actually
in the war, and by 1943 had decreased by 140,000. The net increase
of these six industries in the pre-Pearl Harbor period (136,000), how
ever, was considerably less than the net increase of the remaining
eight industries for the entire period, September 1939-December
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Federal Reserve Bank of St. Louis
744
Monthly Labor Review—October 1944
1943 ¿(256,000). These remaining industries, therefore, present a
greater total readjustment problem still to be faced. When severe cut
backs do come, war-stimulated demand will not be present to absorb
the workers released, as has been the situation in the past. Neverthe
less, vigorous independent action now, coupled with the advantages
of piecemeal adjustment, will go along way toward dealing successfully
with the post-war situation.
Importance of Large Massachusetts Establishments
The over-all picture is, of course, the one of greatest general interest
and it is of utmost importance to have the whole situation in mind, but
the Massachusetts Committee on Post-War Readjustment has found
it equally important to “bite off” a little bit of the problem at a time.
This was done by study and analysis of the pre-war and wartime
employment in the largest private manufacturing 1 and government2
establishments in Massachusetts employing civilians. The largest
establishments were defined arbitrarily as those that at some time
during the period September 1939-December 1943, employed over
1,000 people. The importance of the 166 establishments which fall in
this group is shown in the accompanying chart, which compares the
total numerical change in employment by industry groups from Sep
tember 1939 to December 1943 with the change, during the same pe
riod, in the employment in the large establishments in these industries.
Employment in all the establishments that manufacture electrical
machinery increased about 80,000, of which the few large establish
ments accounted for almost 70,000, or over 85 percent. Similarly,
the expansion in the employment of the transportation-equipment
industry was over 70,000, while the corresponding expansion in the
large establishments was over 65,000, or over 90 percent of the total.
The large establishments that manufacture nonelectrical machinery
increased their employment almost 20,000, and the total employment
expansion for the entire industry was over 45,000; here the large estab
lishments accounted for only 40 percent of the total increase. When
comparing the employment changes in all the iron and steel manufac
turing establishments with the large establishments falling in this
group, it is evident that the total increase was about 20,000, while the
large establishments in this industry accounted for an increase of
15,000, or nearly 80 percent of the total. From the point of view of
employment expansion since September 1939, the large establishments
have played the most important role.
The chart also shows the expansion in the civilian employment in the
largest Federal establishments in Massachusetts, and shows how im
portant the Government’s position is as an employer in the State. Of
the 166 establishments that at some time employed over 1,000 persons,
only about 65 expanded their employment by more than 1,000
workers since September 1939. The importance of the post-war plans
of these 166 employing units is shown in the fact that, though they
constitute less than 0.3 of 1 percent of all the establishments in Massa
chusetts, they employ almost one-third of all the workers in the State.
1 Covered b y th e social security system.
2 N o t covered b y th e social security system.
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Federal Reserve Bank of St. Louis
CHANGES IN EMPLOYMENTS UNDER UNEMPLOYMENT COMPENSATION
MAJOR MANUFACTURING INDUSTRIES COMPARED WITH 166 LARGE ESTABLISHMENTS
IN M ASSAC H U SET TS, SEPTEM BER 1939 TO DECEMBER
-10
r
E L E C T R IC A L MACHINERY
T RAN SPO RTATIO N
0
10
1943
THOUSANDS OF WORKERS
20______ 30
40 ______ 50
60
70
80
9<
U —
—
—
^^^^^gglgggggggl^^^^jgglgg^ggg^^
EQUIPMENT
Employment and Labor Conditions
N O N ELECT RIC AL MACHINERY
IRON AND ST E E L
RU BBER
ORDNANCE
^77Z\
NONFERROUS
C H E M IC A L S
f
T E X T IL E S
CHANGES IN:
MAJOR INDUSTRIES
FURN IT U RE
LARGE ESTABLISHMENTS
FOOD
AP PA R EL
UZZ2.
LEATH ER
V77ZV/.
C IVILIAN ,FED ERAL GOVERNMENT
(NONCOVERED)
_J
-10
90
Cn
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Federal Reserve Bank of St. Louis
A
746
Monthly Labor Review—October 1944
Feeding of W ar W orkers on the J o b 1
ABOUT 5,000,000 workers in approximately half of the manufacturing
plants in the United States engaged in war work can now obtain
midshift meals on the job, according to a recent survey by the War
Food Administration covering 2,056 plants.
According to this information, 81 percent of the workers employed
in the manufacture of war supplies were in plants having some type of
food-service facilities. That there is need for further expansion, the
WFA states, is shown by the fact that actually only 39 percent of the
workers in the plants are obtaining midshift meals. The most exten
sive development in industrial feeding is shown in the large plants.
The survey shows that 91 percent of the plants having more than 2,500
workers, and 80 percent of the plants employing from 1,000 to 2,499
workers, have some type of in-plant feeding facilities. Of the small
companies, however, only 28 percent have food services. ■
Large plants also formed the largest proportion of the companies
planning new installations and expansions. Of the enterprises employ
ing more than 2,500 workers, 41 percent reported that they are plan
ning new installations, the majority of which would include cafeterias,
the most permanent type of in-plant food service. Other kinds of
facilities include lunch counters, lunch stands, and stationary or mobile
canteens. The type of food service varies according to size of plant
(measured by employment). Among companies with 2,500 or more
employees, which provide feeding facilities, 4 of every 5 have cafeterias,
as compared with only 1 of every 5 plants employing fewer than
2,500 workers.
In addition to the survey of the 2,056 manufacturing plants,
the War Food Administration received returns from large plants in
shipbuilding, aircraft, and other essential war industries. Although
91 percent of the large shipyards have some type of food service,
only 35 percent of their workers are being served midshift meals!
In the aircraft industry, 97 percent of the large plants have facilities
and 68 percent of the workers are being served.
The WFA points out that less than half of the existing facilities
are adequate. This conclusion is based upon field reports and the
survey results, which show that only 44 percent of the plants with
food facilities are serving 60 percent or more of their workers.
wwm
O ccupational D istribution of P opulation of
El Salvador, 1941
INFORMATION obtained from the Department of Labor of El
Salvador indicates that in 1941, out of a population of about 1%
million, approximately 1,000,000 were classed as “working popu
lation.” Of the remaining number, 615,000 were listed as children
of 12 and under, and 135,000 as “ unemployables.”
1 U . S. D ep artm en t of A griculture, Press release U SD A 2809-44, Ju ly 28, 1944.
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Federal Reserve Bank of St. Louis
747
Employment and Labor Conditions
T o ta l_________________
Num ber in
19il
Percent
of
total1
__________________ * 1, 750, 000
100. 0
615,
135,
1, 000,
355,
350,
Children (12 and under).
U nemploy able____ _____
Working population-----Domestic w orkers. _
Laborers, ru ra l------Laborers, u rb an , -uA rtisans________
Farm ers__________
Tradesm en________
Employees------------Professional persons
000
000
000
000
000
1 1 2 ,0 0 0
80, 000
65, 000
15, 000
15, 000
8 , 000
35.0
7.7
57.3
20.2
20.0
6 .4
4.7
3.7
.9
.9
.5
1 Percentages given in original source.
2 A ctual population was 1,732,384.
A more detailed analysis, by occupational group, is given in the
accompanying table.
Distribution of the Working Population of EQ Salvador, 1941, by Occupational Group
Occupational group
N um ber
503,000
T otal workers.
A gricultural----------------------------- -------- - i 415,000
Coffee production:
P erm an en t p lan tatio n em ploy
80,000
ees_________________________
235.000
Seasonal cofEee pickers------------Basic food workers (corn, beans,
200.000
rice)----- ----------------------------------30.000
C otton workers___________________
12, 000
Sugar workers-----------------------------10, 000
Stock-raising and dairy workers-----2,000
Balsam of P eru w orkers----------------80.000
M iscellaneous and m igratory labor. _
2 80,000
A rtisans_____________________________
15.000
W eavers (loom operators, h a n d )----9.000
Shoemakers______________________
20.000
H a t m akers (or palm braid workers) _
Clay products workers (pottery,
10,000
toys, e tc .)........... ..............................
4.000
B asket weavers________ ________
O ccupational group
Artisans—C ontinued.
W oodworkers, carpenters, bricklay
ers_________________ .__________
M echanics, electricians, e tc -----------Fisherm en_______________________
M iners, quarriers-------------------------Professional p e rs o n s ....--------------------- A rtists (musicians, painters, etc.) —
A rm y officers------------------------------Law yers_____________ ___________
D octors_________________ ________
N urses, midwives (350)-----------------Teachers (private schools only) — ..
Pharm acists_____________________
Clergymen. _ .____________________
Engineers and architects---------------D en tists-------------------------------------Scientists------------------------------------Others, miscellaneous-------------------
N um ber
14,000
2, 000
6,000
2,000
3 8,000
3, 500
380
385
320
600
1,835
207
200
85
85
15
400
1 N ot including seasonal workers.
2 R ounded figure; item s add to 82,000.
s R ounded figure; item s add to 8,012.
E m ploym ent in H aiti, 1943
IN A population of approximately 3,000,000 in 1943, the Republic of
Haiti, according to reliable authorities, had not more than 185,000
who derived their livelihood from wage or salary payments. Among
that number, about 82,000 were agricultural laborers, and some
75,000 were domestic servants. Of the more than 80,000 in agricul
ture, 56,800 were employed in the Haitian-American Agricultural
Development Program, better known as SHADA from the initials of
its French name (Société Haitiano-Américaine de Développement
Agricole). This large SHADA employment was of a temporary na
ture, resulting from an intensive Cryptostegia-rubber development
program, which necessitated hiring thousands of laborers to clear fields
and plant them with the rubber-producing vine. Aside from agricul
tural workers and domestic servants, shop employees constituted the
next largest number of workers (12,000).
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Federal Reserve Bank of St. Louis
748
Monthly Labor Review—October 1944
Employment in 1943, by principal types, was estimated as follows:
Number of
workers
All types of em ploym ent____
Number of
workers
182, 240 Railroads___________________
Vegetable-oil factory________
Agricultural development pro
Airways____________________
gram (SHAD A)___________ 56,800 Oil companies_______________
Sisal industries______________
6, 700 Public utilities______________
5,600 Ice p la n t___________________
Sugar industries______________
Banana in d u stry ______________
2,700 Banks (not including Banque
All other day laborers_______
11,’ 700
N ationale de la Republique
Domestic servants__________
75, 000
d ’H aiti)_____________________
Shop employees_____________ Ì2, 000 Other com panies____________
1,
G overnm ent__________________
9 ,400
360
160
150
150
100
70
30
220
Distribution of persons employed at a salary or wage, by income
groups, brings out the fact that 154,506 or 85 percent of the total
employed in 1943 had an annual cash income below $100. The
second largest group, 17,162, received more than $100, but less than
$200 per year. Persons in these two income categories were the un
skilled laborers agricultural manual laborers, yard and minor house
servants, nurses, houseboys, laundresses, and cooks. Also included
were certain Government employees, such as janitors, street sweepers,
together with shop employees who were errand boys and janitors.
Persons earning $200 or more per annum were classed as semi
skilled or skilled workers. They consisted of the many Government
clerks, members of the Garde d’Haiti, accountants, typists, shop em
ployees, etc. The approximately 1,000 persons who earned more
than $1,000 in annual salary included only the most highly trained and
proficient Haitians and most of the foreigners residing in Haiti who
were employed locally. Nearly 650 of this highest-paid group were
high Government officials.
The distribution of employees by size of income was as follows:
Annual cash salary or wage:
Below $100_____
$101-$200______
$ 201 - $
1,000 _____________
$1,001 and over_______
T o tal__________
N um ber
154, 506
17, 162
9, 510
1, 062
182, 240
. The relatively small employment of labor should not be taken as an
indication of unemployment or of an oversupply of labor. According
to reliable sources of information, the peasants who form the largest
section of the population have little or no interest in employment for
wages. The fact that they own their land makes their economic condition better than that of wage earners in some comparable areas
where employment is greater and wages far higher.
The paid-labor force was undoubtedly larger in 1943 than at any
time in the history of Haiti. Total employment was said to be at least
45 percent greater than during the pre-war period. The agricultural
labor force was greater by about 300 percent, and reached 400 percent
during the periods of peak SHADA operations. Employment of other
types increased also, though to a considerably smaller degree. Earn
ing rose somewhat as a result of increased economic activity stimu
lated by the war, but lagged considerably behind living costs.
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Federal Reserve Bank of St. Louis
Wartime Policies
E m ploym ent Ceilings and M anpower P riorities
THE continuing threat of a shortage in the production of certain
vital war materials caused the Director of War Mobilization, on Au
gust 4, 1944, to issue a directive to provide adequate manpower for
essential war production.1 In line with that directive, the War Man
power Commission moved to implement item 1 of that order, which
deals with the establishment of comprehensive employment-ceiling
programs and with the better utilization of the existing labor force.
To effect these objectives, the Commission issued to the regional di
rectors instructions 2 which are covered in the following paragraphs.
Employment-Ceiling Program
All regional manpower directors were instructed, on August 7, in
the matter of putting into effect the employment-ceiling program.
Such a ceiling is defined as “the maximum number of employees or
specified types of employees which an establishment may have in its
employ during a specified period.” The objective of the program is
to provide a means of allocating the available labor supply to those
employers, engaged in essential war production, most urgently in need
of workers. According to the instructions of the WMC, this is to
be accomplished by—
(а) Establishing the minimum number of workers required to meet an estab
lishm ent’s approved production schedule;
(б) Establishing the minimum number of workers needed in th e area ,to carry
on essential war production and essential civilian services;
(c) Limiting or reducing the number of workers employed in less-essential
production and services where such workers are needed for more-essential pro
duction and services.
In establishing employment ceilings, the following principles are
to be followed :
The establishment of ceilings in firms engaged in urgent production
must not interfere with validated employment demands, but at the
same time they must be sufficiently realistic to provide for the most
effective possible utilization of manpower, and they therefore should
be established on a plant-by-plant basis. Establishment of ceilings for
these establishments should not be permitted to delay the setting of
ceilings for all other employers in the area. Ceilings must be estab
lished in such manner as to place urgent, essential, and locally needed
activities in an advantageous position, with respect to a limited
labor supply.
1 See M o n th ly Labor Keview, A ugust 1944 (p. 303) and Septem ber 1944 (p. 515).
2 W ar M anpow er Commission. Field Instruction No. 505, P a rt 1, A ugust 7,1944.
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Federal Reserve Bank of St. Louis
749
750
Monthly Labor Review—October 1944
The War Manpower Commission states that emphasis should be
placed upon establishing ceilings which will focus the attention of
employers on the need for increased utilization of their current labor
force and emphasize the need for dealing with the in-plant factors
relating to such matters as turnover, absenteeism, and use of women
workers.
Release of Workers
In areas where critically short and urgently needed production is
behind schedule, the Area Manpower Director is to inaugurate the
program covering required release of workers. This may be applied
to a wide or to a restricted range of activities, depending upon man
power needs. However, it is to be applied only to male workers,
or to male workers of designated age range who meet certain occupa
tional requirements; if the latter, it need not necessarily result in a
change in the ceiling for affected establishments.
The following policies are to be effected in programs requiring the
release of workers:
x. The program for required release of workers shall be applied only to male
workers.
2. Workers made available under this program m ust be referred only to estab
lishments engaged in production included on the Production Urgency List
established by the Production Executive Com mittee of the War Production
Board, or on local orders which have been assigned the top category of priority
by the Area Manpower Director.
3. No employer shall release a worker on grounds th a t his em ployment ceiling
so requires, until after the em ployment office has advised the employer th a t the
worker shall be released. The em ployment office shall so advise the emplover
only after—
(а) The worker has been interviewed by the public em ployment office and a
determ ination has been made th a t suitable work is available to th a t worker and
th a t the worker does not have good cause for refusing such work, and
(б) An employer to which the worker has been referred by the USES has
agreed to hire the worker; or
(c) The worker has been afforded a reasonable opportunity for an interview.
4. Workers qualified for referral who refuse suitable em ployment w ithout good
cause shall be term inated from present employment. Such refusal shall not
jeopardize their eligibility for subsequent referral in accordance w ith the priority
referral program. Workers who fail to report for interview after reasonable
opportunity shall also be term inated.
5. Workers made available under this program may be hired only upon referral
by the U. S. Employm ent Service. No arrangem ents shall be made to perm it the
referral of such workers by other authorized referral channels.
Staffing of Special "Must” Plants
Decent changes and developments in the combat areas have
emphasized the importance of “must” production programs as
opposed to the large list of essential activities. This will require
redirection of emphasis and efforts in the general manpower program.3
WMC instructions to the regional directors stated that it will be
necessary for recruiting, placement, and priority mechanisms to be
geared primarily to staff these special “must” plants regardless of
the immediate effect on other activities within the area. The “must”
enterprises are thus designated, by the Production Executive Commit
tee of the War Production Board, because they are producing items
3 W ar M anpow er Commission. Field Instructions Nos. 514, A ugust 14, 1944, and 514 (Revised), August
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Federal Reserve Bank of St. Louis
Wartime Policies
751
which are of prime importance to the war effort and of which there is a
national supply shortage. The area director is to determine whether
the plant is actually behind schedule because of manpower shortage,
and, if so, the reason for the lag and the types and number of workers
required to overcome the lag.
The WMC is attempting in two ways to remedy the manpower
shortage in the “must” plants. Regional directors have been in
formed that an exhaustive effort should be made to staff such plants
within the locality, and at the same time, every possible action to
ward that end should be taken gt the area level. The second means
of remedying this manpower shortage consists of encouraging the
more effective use of the existing labor force.4 WMC representatives
in the field are to concentrate on making appraisals of the use of labor
in the plants of employers whose only solution of pressing labor
problems appears to be in the interregional recruitment of workers.
Furthermore, all initial ceilings and priorities will be subject to
review, and “manpower priorities committees will require evaluation
reports periodically as to progress made in a plant in the improvement
of manpower use in cases where conditions were previously reported as
unsatisfactory.”
Appeals Procedure 5
To prevent any delay in the procurement of necessary manpower
for urgent war production, the War Manpower Commission out
lined the procedure to be followed by WMC field personnel in han
dling appeals from employment-ceiling and manpower-priority de
terminations under the intensified program for critical war plants.
Under this procedure an employer has the right to appeal any em
ployment-ceiling or manpower-priority determination of the WMC
area director, in accordance with established WMC regulations.
Such determinations, however, will remain in effect until a final
decision is made on the appeal. Cases of extreme urgency may be
brought to the Chairman of the Commission for a final ruling at any
stage in the appeals process. WMC appeals boards have jurisdiction
over such questions as labor utilization and supply, but not those
relating to the relative urgency of a plant’s product, service, or pro
duction schedules.
The instructions to the regional manpower directors included in
formation regarding appeals covering the release of workers from lessessential activities. Under an employment-ceiling program involving
the release of workers, such release may occur only after the worker
has without good cause failed to appear at a U. S. Employment
Service office for an interview, or after such an interview has been
held and the USES has determined that (1) suitable work in an
activity urgently needed for the prosecution of the war is available
for the worker, and (2) the latter does not have good cause for re
fusing to accept such employment. If the worker files a bona fide
appeal, th e’employer’s obligation to%release him for employment
ceiling reasons will be suspended until a final decision is handed down.
4
W ar M anpow er Commission. Press release PM-4657, A ugust 23, 1944.
s Idem , Field Instruction No. 505, P a rt IV , A ugust 16,1944; Press release P. M.-4656, A ugust 23, 1944.
61 0054— 44-
-6
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Federal Reserve Bank of St. Louis
752
Monthly Labor Review—October 1944
If an employer appeals from an employment-ceiling determination
that involves the release of employees, the action may be suspended
until a final decision is rendered, if reasonable doubt exists as to
whether (1) the employer is covered by that part of the program in
volving the release of workers, and (2) the employer or employee is
engaged in an activity that has been designated to release workers.
Measures for C ontrol of T extile In d u stry in Brazil
A RECENT Brazilian decree law1 mobilizes the textile industry to
help meet the needs of inhabitants of liberated areas and of the
Brazilian and United Nations armed forces. In furpishing textiles
for the United Nations Relief and Rehabilitation Administration,
Brazil is called upon to produce 90,000,000 square yards of cotton
textiles. This amount requires an increase of approximately 25
percent of present production. In normal times Brazil would have
three means of enlarging output—by expansion of equipment, in
crease of working hours, or stabilization of the labor market. At
present, as expansion of equipment is almost impossible, the working
hours have been lengthened and textile-mill employees generally
have been frozen to their jobs.
Under the Industrial Mobilization Law of July 13, all establish
ments producing natural or artificial yarns, weaving and finishing
textiles, or producing knotted goods, are considered as being of
national interest. Consequently, they are placed on the same footing
as establishments of military interest, and as such are mobilized in
accordance with the terms of the present law. The following regu
lations apply to establishments in the textile field covered above,
with the exception of those which, on advice from the Executive
Textile Commission, are exempted by the Minister of Labor, Industry
and Commerce.
Labor contracts.—No worker in the establishments covered may
change his vocation without prior authorization from the Ministry
of Labor, Industry and Commerce or a properly delegated official.
At the same time, no employer in any economic field may hire such a
worker without presentation of the above authorization; and in the
field covered by this law, no employer may engage a worker who does
not have a release certificate issued by his former employer. The
Textile Executive Commission may transfer employees locally from
one establishment to another, in which case employees retain their
seniority rights and economic status. Textile workers drafted for
the armed forces are to be deferred, unless the employer can dispense
with their services.
Hours and working conditions.—With prior authorization from the
Minister of Labor, Industry and Commerce, normal working hours
may be 10 per day, the last 2 hours being paid for at a rate of at least
20 percent above.the normal rate. To aid the production of textiles,
females and all workers over 16 years of age are permitted to perform
night work. Upon proper authorization, the right to vacations
(with pay) may be replaced by an indemnity amounting to twice the
1No. 6688 of Ju ly 13, 1944.
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Federal Reserve Bank of St. Louis
Wartime Policies
753
respective pay rate; however, this right to substitute an indemnity
for a vacation does not apply to workers under 18 years of age or to
employees who for reasons of health apply for holidays.
Textile Executive Commission (C. E. T.).—The Textile Executive
Commission, in the Ministry of Labor, Industry and Commerce, has
authority and responsibility for directing the industry, increasing
production, fixing quotas, and administering the law. The Com
mission is to be composed of eight representatives of the industry
chosen from the management of the mills, five members representing
governmental ministries and agencies, and a president designated
by the President of Brazil.
Penalties.—All groups in the textile industry are required to obey
the regulations of the Commission. Refusal by a worker to accept
his transfer is tantamount to abandonment of employment, while
absenteeism on the part of the employee without just cause entails
forfeiture of overtime pay for the week in which he was absent.
Furthermore, absenteeism fcr 8 consecutive days, without just cause,
is to be considered equivalent to abandonment of work. Violations
of the job freeze by employers are subject to fines up to 5,000 cruzeiros
and establishments that refuse to comply with the regulations and
directives of the Commission may be placed by presidential decree
under a regime of governmental intervention.
Method of obtaining release from textile industry.2—Since the law
mobilizing the textile industry has been in effect, the Minister of
Labor issued instructions for handling workers who wish release from
employment in the tcxtile industry orjrom^vspecific enterprise in that
industry. The instructions authorize the National Bureau of Labor
in the Federal District, the State Bureau of Labor in Sâo Paulo,
and the National Labor Delegates in the remaining States to process
the requests for release presented by the workers. Before release is
granted, a worker must present a written certificate from his current
employer and the request must be referred to the employer’s syndi
cate. If the employer’s syndicate objects to the release, its reasons
for objection must be stated in writing. Failure by the syndicate
to respond to the application for release is to be regarded as approv
ing the release.
R eport from U nited States Em bassy, Rio de Janeiro, Brazil, A ugust 23,1944 (No 751)i
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Federal Reserve Bank of St. Louis
Post-War Reconstruction
Post-W ar P lanning in A u stra lia 1
THE Australian Government is committed to a policy of international
cooperation to raise living standards after the war, and the Ministry
of Post-War Reconstruction, created late in 1942, having carried on
exploratory work on post-war planning, has announced a compre
hensive reconstruction program, including plans for the immediate
post-war period and for the long-term. Progress made in Australian
post-war plans and the powers and relationships of the different
specially created and previously existing administrative agencies
dealing with post-war problems are here described.
Scope of Planning
International aspects.—International collaboration has been stressed
in Australia’s post-war plans, the Prime Minister having pledged the
Government to cooperate with other countries to increase living stand
ards, and to maintain a high level of employment as a necessary
foundation for the revival of international trade. The Prime Minister
supports the principles laid down in the Atlantic Charter, and the
reconstruction program announced by the Minister of Post-War
Reconstruction embraces its aims.
National planning .—A comprehensive reconstruction program was
announced by the Minister of Post-War Reconstruction in 1943. It
was concerned not only with the transition from a war to a peace
economy but, equally, with long-term planning for improved social
security and the advancement of living standards. At that time the
object was stated to be the framing of a policy, adoption of a plan for
carrying it out, and seeing that the machinery was ready when needed.
Maintenance of a high level of employment was assumed to be im
perative for any Government in power immediately after the war and
later. Although the Government must plan for an adequate supply
of jobs, it is the opinion of the Minister of Post-War Reconstruction
(as reported in May 1944) that there may be more jobs than people
to fill them after the war ends. Between 1940 and 1950, the estimated
population increase will be 10 percent. From 7 to 8 percent more
people will be seeking work. Therefore, there will be proportionately
more people for those at work to clothe, feed, and house. The esti
mated working population for 1950 is 3,100,000 persons.
1 D ata are from A ustralian News and Inform ation B ureau (New Y ork), Australia, Ju ly 1944, and A ustralia
Looks to th e F u tu re [1944 ?]; M anpow er Review (Australia, D irector General of M anpow er, Sydney),
February 1944; A ustralian W orker (Sydney), M ay 31, June 14, and June 21, 1944; Furnishing
W orker (Sydney), M ay 6,1944; E m ployers’ Review (Em ployers’ Federation of New South Wales, Sydney),
M arch 31, 1944; R ound Table (London), June 1943; Agenda (Oxford, England) A ugust 1943; International
Labor Review (M ontreal), M arch and N ovem ber 1943 and January, A pril-M ay, June, and Ju ly 1944;
Political H andbook of the W orld (Council on Foreign Relations, Inc., New Y ork), 1944; N ew Zealand
Standard (W ellington), F ebruary 3, 1944; Foreign Agriculture (U. S. D epartm ent of Agriculture), August
1944; and daily press.
754
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Federal Reserve Bank of St. Louis
Post-War Reconstruction
755
Detailed statements by the Minister of Post-War Reconstruction
stressed the point that in the change-over from war to peace there
would be the same pressure on the country’s resources, ingenuity, and
manpower as in wartime, and the same urgency to make the best use
of them. The Government will be required to determine the most
critical needs and fix production schedules, giving priority to a set of
products differing widely from those of wartime. Dependence should
not be placed on the interplay of supply and demand. He added that
critical demands should be assessed immediately and a nation-wide
plan made to use national resources and manpower to meet them.
The need for 250,000 dwellings was cited as one post-war priority.
In supplying them, the Minister stated, both the Government and
private industry must participate.
Regarding controls over prices of raw materials and commodities
and over salaries and wages, the Minister expressed the opinion that
some, but by no means all, would have to be retained after the war.
Governments should do away with any deliberate restrictions on
output that limit national wealth and employment. Post-war Aus
tralia should not tolerate monopolistic or other restrictions upon
output imposed for private advantage or from sheer misunderstanding
of what is involved in an economy of abundance. National productive
capacity should be built up by public investment in hydro-electric,
forestry, soil- and water-conservation, and transport-development
projects.
Self-sufficiency, he said, was not his aim. On the contrary, he main
tained that general acceptance by all nations of domestic policies of
full employment is the indispensable basis of a fruitful and lasting
peace.
Full employment and social security are interdependent. Under
the best conditions a need will exist for some social-secunty services.
Adequate provisions for aid will sustain purchasing power and help
to maintain full employment; in turn, full employment will keep socialsecurity costs at a minimum, especially for unemployment benefits.
The Minister stated that the principle of comprehensive social security
was accepted in Australia, and all that was needed was to fill in the
existing gaps in the system. The Government was convinced, he
stated, that the pregram should be extended as soon as the legislation
could be prepared and the necessary administrative manpower
became available. Financing social security from general revenue,
he added, has the advantage of distributing the burden according to
the ability to pay. He cautioned against overstating the importance
of social-security services, however, declaring that they are at best
palliatives for the world’s economic problems.
In the House of Representatives, the Minister for War Organization
of Industry advocated five fundamental principles for the post-war
period: Proper use of the nation’s productive resources; production
to meet fundamental needs of all ; employment for all who are able and
willing to work; equality of educational and occupational opportunity;
and progressive reduction of inequality of income, of leisure, and of
working conditions. He announced that as conditions improved,
almost all wartime restrictive regulations would be removed and
would be replaced by regulations to encourage expanded production
of goods and services.
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Federal Reserve Bank of St. Louis
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Monthly Labor Review—October 1944
The Government’s decentralization-of-industrv policy is intended
to carry ovei into peacetime. The Acting Minister for Supply
announced that by the end of January 1944, 50 country clothing
factories -would be in operation. Thousands of rural women employed
in these plants otherwise would have remained idle or would have
had to work in overpopulated cities.
Governmental Administrative Machinery for Planning
Reconstruction.—As originally established in 1941, the Department
of Labor and National Service included a section which dealt with
reconstruction as one phase of a wide range of problems. Owing to
the importance of post-war plans and the volume of the Department’s
other duties, the Ministry of Post-War Reconstruction wras established
in December 1942, and took over the reconstruction section from the
Department of Labor. The Federal Treasurer was appointed Min
ister of Post-War Reconstruction, and the former Director of Ration
ing became Director General of Reconstruction. The Ministry is to
work through and with other departments of the Federal, State, and
local governments, and its broad functions are those of planning and
coordination of the Government’s activities.
Covering the immediate post-war period, the Ministry is to plan for
the reestablishment of members of the armed forces in civil life2; the
transfer of war industries and personnel to peacetime activities; dis
posal of war plants and problems arising out of termination of con
tracts; and, on the international side, post-war relief. For long-term
reconstruction, the Ministry’s responsibility consists of working out
the policy and plans for maintenance and expansion of employment
and national income and prevention of unemployment; development
and conservation of resources; prevention of want, and the raising
of living standards; and international negotiation for social and eco
nomic reconstruction and advancement.
In carrying out its work the Ministry makes use of commissions
especially appointed to study and report on specific subjects. They
are not intended to become permanent bodies, but during their tenure
are an integral part of the Ministry of Post-War Reconstruction.
Examples are the commissions on rural reconstruction, housing, public
works, and secondary industries. Fields of operation of the first
three are those implied by their names; the last-mentioned investigates
possible uses of war plants in peacetime. The decision to appoint
the Secondary Industries Planning Commission was made in October
1943. Its main function is to review and iuvestigate wartime indus
trial development, with special reference to Government factories, to
define a policy of industrial development for the country, and to plan
and recommend to the Government measures to carry out the policy.
At a conference of Premiers of the States, held in July 1943, it was
decided to establish a National Works Council to coordinate post-war
public works. Membership of the Council consists of representatives
of all seven State governments, with the Prime Minister of the Com
monwealth as chairman.
Social services.—A newly established Department of Social Serv
ices, in coopeiation with the Treasury, deals with the remedial side of
prevention of want, that is, in administering the various forms of
social insurance arid protection.
* A separate'discussion'of'dem obilization'plans for'veterans is"given on“p. 759 of this issue.
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Post-War Reconstruction
757
Concrete Post-War Plans
Of the post-war plans other than those for demobilized service
men, the greatest progress at the time of the referendum in August
1944 (when the voters failed to grant specific controls to the Govern
ment for 5 years after the war) had been made with regard to hous
ing, disposal of war plants, and rural reconstruction.
Housing.-—'The first interim report of the Commonwealth Housing
Commission was presented in October 1943. Immediate and long
term housing programs were recommended to overcome the acute
shortage (estimated at 300,000 units by 1945).
Support of the principle of public financial assistance was given by
the Cabinet, and in December the immediate post-war housing pro
gram to build 50,000 homes in the first post-war year was approved.
Of this total, 30,000 would be Government-sponsored dwellings for
low-income families, and 20,000 would be built by public and private
agencies with Federal aid where needed. The Prime Minister stated
that the program would be reviewed annually, in the light of available
material and labor, until the shortage had been overcome. Estab
lishment of an experimental building station was approved by the
Cabinet.
In May 1944, it was announced that Federal and State authorities
had agreed to a post-war housing plan and that it would be submitted
to the next conference of Premiers. The conference at which the plan
was agreed upon was convened by the Ministry of Post-War Recon
struction. Officials of the Treasury and of the Department of Labor
and National Service, and representatives of the State governments,
were present. Under the proposals, the Commonwealth Government
would borrow money for housing in the normal manner—that is,
through the Loan Council—and the funds would be earmarked for
the different States in accordance with needs. Each State would act
for the Commonwealth within its own boundaries, granting financial
assistance to allow persons of low income to attain a reasonable
standard of shelter.
On rental housing, subsidies would take the form of payments to
State housing authorities to enable them to allow rent rebates to
eligible persons, in an amount equal to the difference between the
economic rent for a dwelling and the agreed proportion of the family
income (not solely that of the main breadwinner) to be devoted *to
rent. Family income, for the purposes of the plan, consists of the
husband’s entire income, plus two-thirds of that of the wife, plus
one-third of that of each child (to a maximum of 30s. a week from the
income of each child). A child’s income of less than 10s. weekly
would be excluded.
A purchaser of a Government-built dwelling would be required to
make a down payment of not less than 5 percent of the cost of both
house and land. The sales tax (£60 to £100, depending upon type
of house) would be waived in buying a Government dwelling, and
rates of interest would be low. The Commonwealth Government
offered to pay three-fifths of any financial losses incurred on Govern
ment-sponsored housing schemes, the States to bear the remainder.
Allocation of dwellings would be based on need, and it was suggested
that priorities be granted to remove people from condemned houses
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Federal Reserve Bank of St. Louis
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Monthly Labor Review—October 1944
and overcrowded areas, and to enable them to live nearer their places
of employment.
Other plans for public works, including housing, are being prepared
by the National Works Council on direction from the Loan Council.
To maintain employment an expenditure up to £200,000,000, during
the 2 years following the war, is expected.
Use of war plants.—Official opinion has been expressed in Australia
that war plants should not be sacrificed. A question of how best to
use these national assets is involved. No fixed Government policy
has been established for disposing of them. Some plants, it was
stated, can be added to the productive enterprises of which they are
a part in wartime, and provision has been made for doing so on a
valuation basis. Others might be of use in works operated by the
State, such as railway workshops.
The first of a series of advisory panels established for the purpose of
assisting the Secondary Industries Planning Commission was created
for textiles. The panel makes recommendations to the Commission,
and thence to the Director General of Post-War Reconstruction,
regarding the future of the textile industries.
Rural reconstruction.—In January 1944, the Rural Reconstruction
Commission submitted its first report to the Minister of Post-War
Reconstruction. The most important of the domestic measures re
commended are the devaluation of the Australian pound in terms of
British currency; a moratorium preventing foreclosure for debt; com
pulsory reduction of wage and interest rates; assistance to producers
through the extension of “home consumption price” schemes; and
inauguration of a comprehensive plan for debt adjustment. Regard
ing international collaboration, the Commission stated that expansion
of Australian farming depends upon acceptance of the spirit of the
Atlantic Charter and the terms of the resolutions adopted at the Hot
Springs Conference.
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Federal Reserve Bank of St. Louis
Discharged Soldiers
W age-A djustm ent R ulings R elating to V eterans
RETURNING servicemen may be reinstated at a rate above the
minimum of a rate range without being counted as new employees,
within the hiring restrictions of General Order No. 31 of the National
War Labor Board.1 This ruling was made recently by the Board’s
legal division.
General Order No. 31, as amended June 27, 1944, states that within
a given year an employer may hire, “at rates in excess of the minimum
of the properly established rate range for that job classification,” not to
exceed 25 percent of all the employees hired for any job classification.
Regarding servicemen, however, the Board’s associate general counsel
stated that the returning veteran may be reinstated at a rate above
minimum in conformity with the Selective Service Law, without such
reinstatement being counted as the hiring of a new employee.
An earlier interpretation of the Board had laid down additional rules
relating to wage adjustments.2 Under these rules, which pertain to
employees in the armed services and those who are returned to their
former employer, the employer is permitted to pay the returned em
ployee “the presently established rate for his former position, reflecting
all increases granted during his absence to which he would have been
entitled had he been continuously employed, without Board approval.
If he is placed in a higher-rated job, he may be paid the established rate
for that job applicable to an employee of his skill and ability, and re
flecting any increase due to seniority.” Thus, under these rules, an
employee who has returned from military service is permitted to ad
vance “in a length-of-service schedule as though there has been no
break in his employment.” In other words, employees who have
entered the military service are treated as on leave of absence, and not
as having terminated their employment.
w w
P rotection of Veterans in A ustralia 3
AUSTRALIA is utilizing its experience in discharging servicemen while
the war is still in progress to develop techniques that will be required
to deal with demobilization on a larger scale after hostilities end. The
1 N ational W ar Labor Board, General Order No. 31, am ended June 27,1944; telegram from associate gen
eral counsel, N W L B , to the secretary of th e Commerce and In d u stry Association of N ew Y ork, A ugust 14,
1944.
2 N ational W ar Labor Board, Interpretation, April 27, 1944.
3 D a ta are from Australia, Statu to ry Rule, 1943, No. 233; M anpow er Review (Australia, Director-General
of M anpow er), February 1944; A ustralian Worker, June 14, 1944; Em ployers’ Review (Em ployers’ Federa
tio n of N ew South Wales, Sydney), February 29, 1944; Planning (London), April 14, 1944; International
L abor Office, Legislative Series, 1939-Australia 3, 1941-A ustralia 2, and 1942-Australia 2; and International
L abor Review (M ontreal), Ju ly and A ugust 1943, and February, A p ril-M ay, July, and Septem ber 1944.
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Federal Reserve Bank of St. Louis
759
760
Monthly Labor Review—October 1944
measures for veterans’ protection that are already in effect or have
reached the stage of advanced planning include provision for reinstatement in pre-service employment and revival of apprenticeship rights,*
training in all its aspects; an effective employment service; a vocation. al-guidance service to assess aptitudes and" permit scientific selection
for training courses and occupations; demobilization furloughs to
facilitate readjustments and reentry into civil life; payment of “suste
nance pending physical and mental recovery and the finding of em
ployment, advances for purchase'of trade tools and of businesses;
preference in public appointments; and modification of conditions
governing entry into certain occupations or industries.
Administrative Machinery
General planning of all measures required to deal with the reestablishmentof ex-service personnel in civil life is centered in the Ministry
oi Post-War Reconstruction. At the operating level, broad responsibility has been divided among several specialized Government agen
cies created before and during the present war. In cases in which
their fields of activity are related, these administrative bodies are also
represented on three intei departmental committees that have been
established to inquire into special problems of demobilization, reestab
lishment and reemployment, and training. The committees are
responsible to the Ministry of Post-War Reconstruction.
Operating agencies. In brief, the Repatriation Commission (which
has acquired much specialized experience since its establishment
under the Australian Soldiers Repatriation Act of 1920) is responsible
for determining pensions earned, their payment, medical and psy
chiatric treatment, provision of artificial aids, sustenance payments
during treatment and pending placement, advances for business, pro
vision of tools of trade, advancement and education of soldiers’ childien, and many other functions covered by the Repatriation Act.
Authority to place labor is vested in the Manpower Directorate.
Although the jurisdiction of the Directorate depends on the defense
power contained in the Australian Constitution, and therefore is of
limited duration, an official publication states that this agency is likely
to develop into an employment service after the war. A separate
section of the Directorate, to deal with discharged servicemen’s re
establishment in civil employment, was already in operation early in
194i\ t • 6 Industrial Training Division of the Department of Labor
£iiid -[National Service lias acquired considerable experience in training
large numbers of civilian and service personnel in technical occupa
tions and will be the controlling authority for vocational and indus
trial training. The Universities Commission is empowered, under
its charter, to control university and professional training and to
administer a system of subsidies payable to students selected to
pioceed to university and other approved courses. In addition all
three services—Army, Air Force, and Navy—have rehabilitation
sections.
Planning agencies.——The planning bodies to which reference is made
are the Demobilization, Reestablishment and Reemployment, and
Reconstruction Training Committees. Responsibility for integrating
technical service plans for demobilization with plans for reemploy
ment and reconstruction is vested jn the Demobilization Committee.
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Federal Reserve Bank of St. Louis
Discharged Soldiers
761
The Reestablishment and Reemployment Committee prepares plans
and machinery for the reemployment and placement of members of
the armed forces and civilian war workers. The Reconstruction
Training Committee advises on preliminary professional and voca
tional training to be given by the three services before cessation of
hostilities, prepares plans for training that the services can carry out
under its guidance after hostilities cease (taking into account re
quirements of economic reconstruction plans) and advises on post
discharge training, as part of the general training program for the
reconstruction period.
Vocational Guidance in Services
Men receive vocational guidance for their post-war careers'while
they are still in the armed forces. Vocational-guidance officers
attached to the psychological staffs of the services have been assigned
to give expert advice to servicemen in selecting courses of study.
Particular stress is placed on guidance of young men in air crews who
were recruited directly from school for the RA AI. A choice of cor
respondence courses is offered and, where practicable, men are en
couraged to attend technical or other vocational institutes. _ Directed
reading and discussion groups are fostered. Every effort is made to
fit the plans to the needs of the men. Vocational-guidance officers
also aid men in the service who, for psychiatric reasons, are considered
unfit for normal duties, by bridging the gap between the psychia
trists and all the other persons concerned.
Preference in Demobilization
The War Cabinet announced in June 1944 that the main factor
determining order of discharge for servicemen is to be length of serv
ice, but age and marital status are to be taken into account. Some
exceptions from the priority system are to be made for key persons
who are urgently needed to start peacetime industrial operations.
In the interest of the men and the nation, demobilization is to be as
rapid as possible.
A id at Discharge Centers
Methods of demobilization have been so planned as to involve only
an enlargement of the existing staff and facilities connected with
discharge centers when the large-scale post-war discharge of service
men takes place. Each branch of the armed services has its own dis
charge centers, the majority of which are in State capitals. It is
questionable, however, whether all discharge centers will be utilized.
At the centers, the men being demobilized are required to prepare or
complete their basic records, and they apply for and receive civilian
identification and ration books. In filling in the necessary forms,
they are assisted by members of the rehabilitation unit maintained
at the center. Assistance is given by a rehabilitation officer and also
by a trained employment officer. When final action respecting future
employment cannot be taken at the discharge center, the ex-sei viceman
is invited to go to his nearest central rehabilitation section or national
service office.
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Federal Reserve Bank of St. Louis
762
Monthly Labor Review—October 1944
Rights oj Veterans Returning to Civil Life
On return to civil life, discharged veterans are entitled to aid in
obtaining employment, various cash and other benefits, preference
m certain employments, reinstatement in pre-service employment
and training.
Aid in obtaining employment and financial assistance.—As amended
and issued in revised form on September 16, 1943 (Statutory Rules
No. 233), the Australian Soldiers’ Repatriation Regulations provide
that any member of the armed forces, who has been discharged from
active duty (or, if he was not employed on active service, suffered
material prejudice in consequence of war service) and has a satisfac
tory record, may apply to the Deputy Commissioner of Repatriation
m his State within 12 months of his discharge for assistance in obtain
ing employment and for sustenance while waiting for employment.
The Deputy Commissioner may assist the veteran in finding work and
may grant him financial assistance for not to exceed 3 months. No
payment may be granted to an ex-serviceman who has failed to accept
suitable work or who lias had employment for an aggregate of 6 months
following discharge. If the veteran obtains casual or intermittent
employment, the allowance is reduced by the amount earned, and,
if he obtains regular employment, the allowance ceases.
The Deputy Commissioner is also empowered, in his discretion, to
pay the ex-serviceman’s fare to the place of employment if he is sent
to a job by the Repatriation Department or obtains it through his
own efforts.
The Repatriation Regulations also provide that, where necessary,
a Deputy Commissioner may grant gifts of household furniture; tools
of trade, plant and equipment, professional instruments or other
articles of personal equipment, exclusive of clothing in any form *and
loans.
’
Employment preference to veterans— The Australian Soldiers’ Repa
triation Act was amended on April 1, 1943, to grant preference in
public employment and on public contracts to returned members of
the armed forces who have served overseas in prescribed combat
areas, provided they are capable of doing the work. Each public
contract must include a clause binding the contractor to grant such
preference, subject to a £50 fine for each act of noncompliance. After
the last war, preference to returned soldiers was granted under provisions of the Commonwealth Public Service Act. When it was
decided to take such action again, the Labor Government expressed
opposition to making the provision under the Repatriation Act,
stating that it should bo approached more generally. However, the
clause was inserted in the Repatriation Act by an amendment moved
by the opposition. The interstate executive of the Australasian
Council of Trade-Unions has taken the position that preference in
employment to returned servicemen is not m the best interest of the
country and should be abandoned, and that the efforts of the nation
should be concentrated on making opportunity for employment for
all citizens in the post-war period. The Council’s resolution opposing
militaiy preference is representative of opinion of trade-unionists
throughout Australia.
Reinstatement in employment—The National Security (Reinstate
ment m Civil Employment) Regulations (Statutory Rules, 1939), as
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Federal Reserve Bank of St. Louis
Discharged Soldiers
763
amended, provide that any person may apply for reinstatement in
employment after completion of a period of war service or within 14
days before his completion of such service. The employer shall,
immediately after the receipt of the application or the completion
of the war service, reinstate the worker in his employment in an oc
cupation and under conditions not less favorable to him than those
which would have been applicable to him had he remained in the em
ployment of that employer (including any increase of remuneration to
which he would have become entitled had he remained in such employ
ment). The employer is relieved from the obligation of reemploying
the veteran if the latter has failed to apply for reinstatement within
1 month after the termination of his military service; if he has failed
to present himself for reinstatement, without reasonable excuse, at
the time and place specified by the employer; if it was not reasonably
practicable to reinstate the employee; or if the offer has been made to
reinstate the employee in the most favorable position and under the
most favorable terms possible. Employment of a reinstated employee
may not be terminated without cause. For contravention of any
provision of the regulations, a fine may be imposed by court order.
The fine is payable to the employee.
Contracts of apprentices are also subject to adjustment, the
Minister of Labor being permitted to relieve the parties of their
obligations under an apprenticeship contract or to extend the contract
for a period not exceeding the period of war service.
Training scheme.—Pending the establishment of a comprehensive
plan, training for demobilized persons was provided through the
Repatriation Commission. During the training period the Repatria
tion Commission was empowered to pay sustenance allowances that,
in its opinion, were reasonable. For veterans who were apprentices
or trainees when inducted into the service, assistance might be given
in the form of a wage supplement sufficient to insure an income (wages
and supplement, exclusive of pension) equivalent either to the wage
the person would have been receiving, had his training or apprentice
ship not been interrupted, or the minimum wage for the industry or
trade, whichever is the less.
Later, a permanent scheme worked out by the Reconstruction
Training Committee was adopted, which came into operation on a
limited scale in February and March 1944. By June, it was stated
that over 350 ex-service men and women had been accepted for trade
and professional training to be given under the Commonwealth re
construction training scheme. Full- and part-time courses are
furnished and allowances are provided for during training.
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Federal Reserve Bank of St. Louis
Productivity o f Labor and Industry
P ro d u ctio n in Federal P rison Industries in 1 9 4 3 1
THE 1943 production of industries in Federal prisons was more than
400 percent above peacetime levels. Sales in the fiscal year ending
June 30, 1943, totaled $18,789,181, as compared with $7,062,015 in
1941, and $4,777,691 in 1939. The production increase took place
m spite of a 50-percent decline, since the war began, in the number of
available prisoners who could be assigned to industry. Value of goods
produced per employed inmate rose from $1,462 in 1939 to $5,300 in
1943. One shop showed mi minii£il soles volue of output per worker
of $20,131 during the latter year. The report under review states
that such production per worker has never been equaled in any
prison industry anywhere and compares favorably with the per-capita
output of free workers.”
Ninety-eight percent of all production in the Federal prison indus
tries was devoted to war needs in 1943. Novel forms of the prisons’
war production were three 65-foot wooden boats for the Army canvas
water tanks used by the Marines in the South Pacific and elsewhere
and bomb fins for the Air Force. The stripping, sizing, and salvage
of copper cable and the weaving of cargo-loading nets are typical ex
amples of some of the hand-labor tasks performed by Federal prisoners
The prisoners also salvaged and repaired floats used by the Navy
Department to buoy submarine nets. To meet special war needs
for increased production of war goods in the institutions and for in
dustrial skills of all kinds in outside industry, the vocational-training
program m all institutions was expanded and intensified; new vocational classes were organized and classes already in operation were
altered. Of course, many commodities usually included in prison
production in peacetime, such as matresses, brushes, shoes and
chairs, continued to be made.
Besides their industrial production, 20 institutions operated farms
raising vegetables, field crops, and hogs.- Eleven farms had dairy
units, 14 raised beef cattle, and several maintained poultry projects,
ih e agricultural production also increased during the vear 1943 the
total value amounting to $776,495.
Wages paid to over 3,500 prisoners amounted to $783,433 in 1943
and averaged $221 per inmate. Approximately $600,000 of this total
was sent to dependents or was retained for the prisoners pending their
release.
&
In addition to the wages, $2,700 was paid as accident compensation
to inmates injured during employment. Such funds are paid monthly
to prisoners deprived of regular institutional wages by injuries and
risr a s? 1 9 4 4 . fr° m
FederaI
764
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Federal Reserve Bank of St. Louis
Pri£° nS’ 1943 ( E 1 R e n o > 0 k l a -). U . S . D e p a r t m e n t o f J u stic e , B u rea u o f
Productivity of Labor and Industry
765
to such men after release, in order to help them reestablish themselves
in the community. The accident rate in Federal prisons has not
risen with increased production. In fact, although the number of
lost-time injuries in 1943 remained almost the same as in 1942, the
severity of such injuries declined 50 percent.
*#***#**
H ours of W ork and P roductivity in B ritish W ar
Factories
FROM a study of output in selected war factories where hours of
labor had been reduced, the Industrial Health Research Board of the
British Medical Research Council1 concluded that there was reason
to believe that the effects of shorter hours were favorable, although
other factors obscured the results. For workers in three groups the
operations of which were fairly free of disturbing influences, increases
in hourly output ranged from 3.3 to 6.3 percent after hours were re
duced. In spite of interfering factors, the hourly output increased
in 15 of 21 groups of employees whose hours were studied. The
average rise was 4.1 percent, but in some groups the increases ranged
as high as 11 to 21 percent. Small but progressive improvements in
the methods or conditions of work were mainly responsible, but in
some factory groups fairly large-scale reorganization contributed. It
was concluded that technical improvements and reorganization are
most likely to lead to an increasingly high and steady level of efficiency.
Where operation was on a 2-shift basis, hourly output was practically
the same on day and night work. Although differences were not
large on the 3-shift system, output was likely to be highest on the
afternoon shift and lowest in the morning.
Variability in the records covering output was the most striking
feature disclosed in the investigation. Causes of the fluctuations
were chiefly changes in the type or design of product, mechanical
difficulties and machine break-downs, differences in the quantity and
quality of material used, progressive improvements in methods or
conditions of work, changes in the type and lay-out of machines, and
personal factors such as dissatisfaction with the method or rate of
payment and occasional friction between the management and the
workers.
The Industrial Health Research Board prefaced its report by the
following statement:
I t has been firmly established that, except as a tem porary emergency measure
working hours in manual operations involving a fair am ount of physical eflort
should not exceed 60—65 per week for men and 55y60 per week for women, if
longer periods of work are demanded, efficiency will in tim e fall._ *
Many
people, however, hold the view th a t if maximum efficiency is to be achieved,
working hours should be cut down below these limits.
Coverage of Inquiry
Late in 1942, when weekly working hours were reduced in a number
of factories engaged in war production, it was believed that the change
might have a measurable effect on output. The extent of the reduci A S tu d y of Variations in O u tp u t, by S. W y att (M edical Research Council, Industrial H ealth Research
Board, Em ergency R eport No. 5, London, 1944).
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Monthly Labor Review—October 1944
tion varied in different plants and was very small in some cases.
However, the investigation which is summarized here was under
taken for the primary purpose of ascertaining the effects, if any of
shorter hours.
’
Plans were made on the assumption that it would be possible to
hncl a representative group of about 200 fully experienced workers in
different parts of each factory, whose output could be studied for a
4- to 6-week period prior to the decrease in hours, and for 12 weeks
thereafter. In four factories, individual weekly output was studied,
but m three other factories changes in the type of work necessitated
the use of group piece-work earnings to measure output. It was felt
that _use of group piece-work earnings was a permissible procedure
provided the changes in the type of work were small and the piece
work rates were adjusted correctly.
Investigation of output on different shifts, where more than one
shift was worked, could be made only in the groups where workers
wei e paid individual piece rates. It was not possible to secure records
of daily and hourly output.
In general, very few processes were suitable for measurement, and
most of those selected were affected by other factors besides hours of
work. The results obtained “should be regarded as samples of out
put curves over a period of several weeks, during which time the change
m hours was only one, and often not the most important, factor.”
Changes in Hours and Output
The average number of hours worked per week in each factory
before and after hours of work were reduced, is shown in table 1 by
SuX °f1Yorker- , Net working hours are given, excluding periods
allowed for meals and rest. Reductions ranged from 0.7 percent for
females in factory C to 11.5 percent for males in factory A.
T ^ b l e 1.— Average Number of Hours Worked per Week in Selected British Factories,
Before and After Reduction
W eekly hours of
work
Factory
Sex of
w orkers
Factory A .. Male_._ .
Fem ale__
Factory B__ M ale____
Fem ale___
F acto ry C__ M ale___
Fem ale__
F acto ry D__ M ale . . .
Fem ale___
Shift
sys
tem
2
3
2
2
2
3
2
2
Be
Per
fore After
re cent of
re
duc
de
duc tion
crease
tion
65.4
45.0
58.6
57.3
63.3
46.0
56.7
54.9
57.9
43.5
53.9
52.7
60.2
45.7
55.0
53.2
11.5
• 3.3
8.0
8.0
4.9
.7
3.0
3.1
W eekly hours of
work
F actory
Sex of
workers
F actory E__ M ale
Fem ale___
F actory F__ M a le ... . .
Fem ale___
Factory G_. M ale . . .
Fem ale__
Shift
sys
tem
2
2
2
2
2
2
Be
Per
fore After
re cent
re
duc
of
de
duc tion
crease
tion
56.2
56.2
63.2
59.1
56.7
56.7
54.3
54.3
60. 2
54.6
52.3
52.3
3.4
3.4
4.7
7.6
7.8
7.8
■
o^°r a/ ew groups in factory B, all the output results shown
m table 2 are for female employees. The relative hourly output by
factory, group of workers, and sex is shown for periods before hours
were reduced and afterward. Close inquiry in each department
snowed that the changes in output were affected by factors other than
shorter hours. In only 3—A4, E l, and F l—of the 21 groups was it
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Federal Reserve Bank of St. Louis
767
Productivity of Labor and Industry
possible to infer with some degree of certainty that the increase in
hourly output resulted from reduced working time. The increase in
output in group A4 was attributed mainly to shorter hours, as there
were no interfering factors. In groups E l and Fl, the period after the
reduction in hours was broken by the annual vacation, and it was
presumed that output might have been increased to obtain a little
extra money for vacation purposes, and also because of a rise in the
tempo of work following the vacation. Hence, the report under
review states, higher output in these two groups may not have been
the result of a shortened workweek solely. In the remaining 18
groups, factors other than working time were of such overwhelming
influence as to obscure the effects of shorter hours.
T able
2 —Hourly Output of Labor in Selected British Factories, Before and After
Reduction in Hours of Work
H ourly o utput
Sex of workers
Factory and group
N um
ber of
work
ers
Average__________________
F actory A:
G roup 1
_
G roup 2 _ _ __________
G roup 3
___________
Group 4
Group 5_________ _____
Factory B :
G roup 1
G roup 2 _
G roup 3
G roup 4 .
G roup 5
G roup 6 - -G roup 7 _ -___
G roup 8 _
____
F actory C:
G roup 1
. . . ______
G roup 2 _____ _______
G roup 3 _
G roup 4
. _______
Factory D , G roup 1_____
Factory E , G roup 1
____
Factory F , G roup 1 . ____
F actory G, G roup 1. ___ _
After reduction in hours
Percent
Before
of
reduc
tion in F irst 4 Second T hird 4 Average change
12
12
hours weeks 4 weeks weeks
weeks weeks
100.0
103.9
102.9
105. 7
104.1
+4.1
Fem ale__ . . .
F em ale. ___
Fem ale. . ..
Female. . ..
Fem ale__ ..
98
95
400
1,100
1,050
100.0
100.0
100.0
100.0
100.0
94.5
110.0
101.4
102.6
106.8
93.1
114.6
102.6
104.4
112.7
98.4
117.3
110.1
102.9
113.9
95.3
114.0
104.7
103.3
111.1
- 4 .7
+14.0
+ 4 .7
+ 3 .3
+11.1
M ale___ . . .
M ale . . __
M ale .
M ale . .
M ale
. __
Fem ale__ ___
Female ______
Fem ale.. . ..
47
12
50
10
20
63
42
30
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
101.6
101.3
101.6
107.9
111.1
102.0
101.4
96.1
104.7
101.6
102.6
114.1
114.8
106.7
89.9
98.0
107.5
96.5
105.1
116.9
109.3
94.4
96.2
96.5
104.6
99.8
103.1
113.0
111.7
101.0
95.8
96.9
+ 4 .6
-.2
+ 3.1
+13.0
+11.7
+ 1 .0
-4 .2
- 3 .1
Fem ale _____
Fem ale. . ..
Female ______
F e m a le ____
Female
Fem ale_____
Fem ale. .. .
Fem ale______
120
128
29
35
125
115
170
200
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
124.8
107.4
104.2
87.5
98.0
106.0
99.8
115.0
90.6
100.4
101.5
88.7
91.3
106.6
105.1
117.5
93.9
110.8
110.5
95.5
96.2
106.4
109.9
130.9
103.1
106.2
105.4
90.6
95.2
106.3
104.8
121.1
+ 3.1
+ 6 .2
+ 5 .4
- 9 .4
-4 .8
+ 6.3
+ 4.9
+21.1
WWW
Productivity in th e B ritish Coal-M ining Industry
A STATISTICAL digest issued by the British Ministry of Fuel and
Power shows a decline in productivity of coal-mine labor during war
time, accompanied by a decrease in employment and production and
a rise in idleness owing to disputes and avoidable absences. Informa
tion on productivity and related subjects is given in the following
table for 1938, 1942, and 1943, and the first quarter of 1944.1
1 D a t a are from M in is tr y of L a b o r G a z e tte (L o n d o n ), J u ly 1944.
6 1 0 0 5 4 -4 4 -
-7
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768
Monthly Labor Review—October 1944
Productivity in the British Coal-Mining Industry, in Selected Periods
1944 (first
qu arter)1
Item
1938
1942
1943
Salable coal p ro d u c e d ______ . . .
tons
Wage earners ------- . . .
average num ber
Average o u tp u t per wage earner:
P e r y ear--------------------------------------- to n s..
Per man-shift:
A t coal face . . . . . . _____
do
All wage earners.. . ________
do
Idleness owing to disputes________ m an-days
Avoidable idleness 2________ percent of shifts
Average w eekly cash earnings . .
226,993, 200
781, 700
203,633, 400
709, 300
194,493,000
707,800
47, 581, 300
703,600
290.4
287.1
274.8
67.6
2.95
1.12
664, 600
6.4
£ 2 15s 9d.
2.87
1.03
2.75
1.03
692,600
12.4
£5 0s. 0d.
2.72
1.02
1, 564,100
12.4
£ 5 2s. 5d.
10.4
£ 4 13s. 2d.
1 Prelim inary returns.
2 Excludes shifts lost through work not being available, and because of recognized holidays, disputes,
accidents, tran sp o rt difficulties, etc.
Average output per wage earner per year dropped from 290.4 tons
in 1938 to 274.8 tons in 1943. If the rate of productivity attained
Ln the first quarter of 1944 should be continued throughout the year,
the average annual output would be reduced sorntwhat further to an
estimated 270.4 tons. The decline per man-shift, for men employed
at the coal face only, was from 2.95 tons in 1938 to 2.72 tons in the
first quarter of 1944. The average for all wage earners, including
underground and surface labor, was 1.12 tons of coal per man-shift
in 1938 and 1.02 tons in the first quarter of 1944. Tonnage of salable
coal produced was 14.3 percent lower in 1943 than in 1938. In this
same period the average number of wage earners employed dropped
9.5 percent, from a total of 781,700 to 707,800. Idleness caused by
disputes was not substantially higher in 1943 than in 1938, but in
the first quarter of 1944 was more than double that for the whole
year of 1938 (1,564,100 man-days, as compared with 664,600).
Avoidable idleness, including voluntary and involuntary absenteeism,
nearly doubled in the same period, increasing from 6.4 percent to
12.4 percent. Rises in weekly earnings have been steady, the average
of £5 2s. 5d for the first quarter of 1944 exceeding the £2 15s. 9d.
weekly earnings received in 1938 by 83.7 percent.
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Social Security
R ecent D evelopm ents in Company Pension Plans
VARIOUS changes have occurred in company pension plans since the
adoption and revision of the Social Security Act. The National
Industrial Conference Board has made a series of surveys of these
plans and has traced trends and developments in the movement since
1935. The most recent study 1 covers the experience through 2 years
of war and shows the effect of present economic conditions and of the
Social Security Act and the tax laws on these plans.
The most important factor in changes which have occurred in the
pension plans of private companies was the enactment and revision
of the Social Security Act. It was at first believed that the old-age
benefits under the act would relieve employers of the necessity of
granting supplemental benefits, but the maximum of only $85 under
the Federal system is not sufficient for persons accustomed to even a
moderately high standard of living. The report points out that
opportunities for such employees to provide a supplemental allowance
for their old age are now much diminished as the resul t of high faxes
and lowered returns on securities and investments. For the lowerincome groups savings are even more difficult, since for the first time
they are required to pay high income taxes at a period when living
costs are rising. With the Government pension as a base, however,
the cost to the employer of providing supplemental benefits is much
less than if he bore the entire burden of providing an adequate pension.
The liberal tax deductions allowed under the Internal Revenue
Code for employer contributions to pension and profit-sharing trusts
are of great importance to employers in the creation and operation of
pension plans for their employees. The Revenue Act of 1942 (section
162) and regulations issued in July 1943, strictly prescribe the con
ditions under which employer contributions may be deducted from
taxable income. Under the wage and salary stabilization controls,
pension plans which qualify under the Internal Revenue Code (section
165 (a)) are not considered as wage or salary increases, and an em
ployee is not required, therefore, to pay taxes on the employer’s con
tribution until it is made available to him. This makes the pension
plan desirable from the higher-income employee’s standpoint.
The war has thus had the effect of promoting the adoption of pen
sion plans, since employers with large wartime profits can deduct their
contributions from taxable income. Conditions arising from the war,
such as high taxes, the rising cost of living, and the pressure on
employees to invest 10 percent of their incomes in war bonds, may
also affect the structure of the pension plans, since these conditions
i Trends in C om pany Pension P lan (N ational Industrial Conference Board, Studies in Personnel
Policy, N o. 61, New Y ork, 1944).
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Monthly Labor Review—October 1944
raise the question as to whether the employees can afford to share in
the cost of a plan or whether the employers should bear the entire
cost, at least during the war, when many establishments are earning
large profits.
Number and Types of Pension Plans
There are three main types of funded plans: (1) Group annuity
plans, underwritten and administered by insurance companies, are
in the form of a master contract between the employer and the in
surance company. Contributions under the plan are in the form of
premiums. (2) _Individual-policy plans, also underwritten by in
surance companies, provide retirement annuities such as any individual
may purchase. Such plans are administered under a pension-trust
agreement with a trustee, usually a bank or trust company, to hold
and administer the policies. (3) Trust-fund plans are usually ad
ministered by a bank or trust company and are entirely separated
from corporation control and assets. The contributions are deposited
in an irrevocable trust under a trust agreement.
The study is based upon information from 339 companies with
formal pension plans, employing more than 2.3 million persons. A
considerable number of the companies in the war industries did not
give statistics on employment, as this information was considered in
the nature of a military secret, but in these cases the latest available
figures on <mployment were used. The number of employees par
ticipating in the plans, however, was considerably smaller because of
the influx of new workers who had not yet met the eligibility require
ments or who were excluded by restrictive conditions of the plans.
Of the 339 plans, 256 were insured plans, and of these 223 were group
annuity and 33 were individual annuity plans. Sixty-seven were
noninsured plans, with 45 trust-fund, 16 pay-as-you-go, and 6 balancesheet reserve plans. Sixteen plans were a combination of types.
Altogether, 185 plans were in manufacturing industries and 154 were
in nonmanufacturing enterprises.
. An analysis was made of 200 plans which had been adopted or re
vised during the first 2 years of war, in order to discover prevailing
practices and, by comparison with previous investigations, to trace
significant changes in these programs. In addition, information was
obtained about plans which had been in existence for 2 or more years,
in order to determine the changes in provisions necessitated by war
time conditions.
Principal Provisions of Plans
Eligibility requirements may be based on length of service, age,
compensation, or class of employee. An increasing use of two or
more of these factors to limit participation has been made in plans
recently adopted; however, for the trust to qualify under section
165(a) of the Internal Revenue Code a basic requirement is that it
must not discriminate in coverage. In general, the law requires that
the plan must apply to 70 percent of all employees, or to 80 percent
°r
el.igible employees if 70 percent.or more of all employees are
eligible, in computing the number of eligible employees the emplover
may exclude those having less than 5 years’ service, or those working
less than 20 hours a week or 5 months a year. One-fifth of the 200
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Federal Reserve Bank of St. Louis
Social Security
771
plans cover permanent or regular employees, but required service
periods in the other plans range from 3 months to 20 years. One
year’s service is the most frequent requirement.
One hundred twenty-seven of the 200 companies do not impose an
age restriction, but 16 restrict participation to employees 25 years of
age and over, while 31 fix the entrance age at 30 years, and 15 at 35
years. In the remaining plans, 8 fix the entrance age at either 18 or
21 years and one sets it at 40 years, while 2 have different entrance
ages for men and women. In adopting a new retirement-benefit
program, most companies exclude long-service employees, whose in
clusion would impose too heavy a financial burden on the system. As
a consequence the majority of pension plans, especially those under
written by insurance companies, provide for pensions for these older
persons outside of the regular plans.
A trend in recent years has been toward plans restricted to em
ployees earning over $3,000 a year. This has been the result of the
Federal wage and salary stabilization regulations which have made it
difficult to increase the compensation of higher-paid employees, and the
fact that Federal social security benefits are not paid on any amount of
income in excess of $3,000. The inadequacy of the social security
benefit for these higher-paid employees and the difficulty they meet
under present conditions in providing for their old age out of their
own savings have been largely responsible for the adoption of plans
having this restriction. The Internal Revenue Code specifies that a
classification shall not be considered discriminatory merely because
it excludes employees earning $3,000 or less, or because contributions
or benefits on compensation over $3,000 differ from those on com
pensation under $3,000, or because contributions or benefits differ on
account of Federal or State requirements, if the total benefits establish
an integrated and correlated retirement system. Treasury formulas
have been issued which establish bases on which such plans may be
integrated with the social security benefits without being considered
discriminatory.
In general, the plans do not provide for compulsory membership
even though such a provision would have the advantage of keeping
participation at a satisfactory level, since any unnecessary element of
compulsion is resented by employees in spite of the fact that the plan
is for their exclusive benefit. Less than a tenth of the plans require
employees to participate, although once an employee has elected to
join the plan he is usually required to retain his membership during
employment unless the employer consents to his withdrawal.
The normal retirement age in 124 of the 200 plans is 65 years, and
in 6 it is 60 years. In 35 cases it differs according to the age of en
trance. The other plans fix the retirement age at either 65 or 60
years for males, with the retirement age for females 5 years earlier
except in 2 cases, where there is 10 years’ difference, the retirement age
being 65 for males and 55 for females. Only one company fixes the
retirement age for males as high as 70 years. The recent tendency is
to set the retirement age at 65 for all employees, regardless of sex,
since, if women retire at an earlier age than men they receive a rela
tively smaller pension as they have had a shorter time to build up an
annuity. All the insured plans permit retirement at an earlier age
(but with a reduced annuity) if the employer consents, and they also
permit the employer, with the consent of the employee, to request
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Federal Reserve Bank of St. Louis
772
Monthly Labor Review— October 1944
earlier retirement. Under normal conditions, employment beyond the
age for regular retirement is generally discouraged, although many
plans provide that in exceptional cases an employee may work after
that time on a year-to-year basis.
Company Pension and Social Security Benefits
In determining the method of computing the employee’s pension
under a private plan, two factors have to be taken into account:
The relation of the company’s plan to the social security benefit, and
the regulations of the Internal Revenue Code. Under the social
security system for a worker without dependents, earning between
$100 and $150 a month, the final benefit would represent from 29.0
to 36 2 percent of his average earnings, but the percentage decreases
sharply as income increases, and for the person earning $3,000 it
would equal only 23.2 percent of annual salary. It is said to be
generally recognized that the pension should represent approximately
half of average pay, and on this basis the Government benefits are
inadequate, especially for the higher-paid employee.
There are various methods of correlating the company plan with
the social security benefits. One is to provide the desired pension
under the company plan and deduct all or part of the Government
benefit. This is the method commonly used in the trust-fund and
discretionary plans. In insured plans close correlation is more dif
ficult, and they provide for a separate scale of benefits which are
correlated to a certain extent with the Government benefits. A
third method coming into use is to ignore the social security benefits
entirely and fix the pension at a uniform percentage of income for all
compensation groups. In preparing plans for employees earning over
$3,000, employers are required to follow one of two formulas fixed by
the Bureau of Internal Revenue, which give percentages of annual
compensation above $3,000, based on length of service.
Under early discretionary plans, employees were not required to
contribute, but as these plans ran into financial difficulties the prac
tice of requiring contributions became more prevalent. During the
depression of the 1930’s nearly all the plans adopted were on a jointcontributory basis, but the war has brought another change in atti
tude toward employee contributions. The installation of noncontrib
utory plans was encouraged by section 165 of the Internal Revenue
Code because it permitted employers to deduct their contributions
from taxable income, but it is pointed out in the report:
While some employers may be induced to adopt a noncontributory pension
plan because of the imm ediate tax benefits th a t may be possible, such a m otiva
tion may work to their serious disadvantage a t a later date. When the war is
over and profits are reduced, or the plant is operating a t a loss, can the employer
continue to finance the nonccntributory plan? If it becomes necessarv to dis
continue it, can he convince the Bureau of Internal Revenue th a t the plan was
of a perm anent character, which is one of the requisites of a qualified trust. If
he cannot, he will be liable for taxes on all contributions made in p ast years.
Wartime Experience
As a part of the study, employers who had pension plans in opera
tion through the war period were fasked what problems they had
encountered as a result of abnormal conditions and what benefits
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Federal Reserve Bank of St. Louis
Social Security
773
they had derived from their pension plans. There were 199 of these
companies, employing more than a million and a half persons.
The effect of withholding taxes, rising living costs, and deductions
for war bonds was not found to have affected adversely employee
participation in contributory plans, as less than 3 percent of the
companies reported that the percentage of employees dropping out
of the plan was high enough to cause serious concern. In two cases
the plan had been changed from a contributory to a noncontributory
one, in one instance because the company feared that many employees
could not afford to continue their contributions; in the other case all
employees earning less than $3,000 a year were put on a noncontrib
utory basis. In general, reporting companies were well satisfied with
the way in which employee participation had been maintained, and
some companies stated that employees were so convinced of the value
of the plan that they were willing to make sacrifices to continue in it.
In other cases employees’ earnings had been increased by overtime so
that they could easily afford to pay the relatively small contributions
required for pensions.
A bout a third of the companies w ith contributory plans reported some difficulty
in enrolling new employees. These new workers looked upon themselves as
tem porary employees and wished to postpone entrance into the plan until their
jobs promised to be of a more perm anent nature. Women, especially, considered
work as tem porary and were reluctant to become participants. A nother excuse
given for not joining under a contributory plan was the num ber of pay-roll deduc
tions already required. Rising living costs and the possibility of inflation also
prevented some employees from signing up. A few concerns stated th a t they had
made no concentrated effort to persuade new employees to join during the war
period.
In contrast, approxim ately half of the companies w ith contributory plans
reported th a t they had experienced no difficulty in persuading employees to join
and contribute under the pension plan when they became eligible. A num ber of
these concerns stressed the pension plan as an excellent medium for savings and
sold the idea of participation on this basis.
W W W
O peration of Canadian U nem ploym ent Insurance
F und, 1 9 4 2 -4 3
THE first full year of operation of the Canadian unemployment
insurance system was completed on March 31, 1943, the law having
become effective for the payment of contributions July 1, 1941. The
unemployment insurance law authorized an Unemployment Insurance
Commission to create and administer a coordinated program of unem
ployment insurance and emplovment service. Since the spring of
1942, when National Selective Service was introduced in Canada, one
of the main functions of the Commission has been the administration
of the National Selective Civil Service Regulations, which has called
for the opening of a number of additional offices and an increase in
the staff.
The second annual report1 of the Canadian Unemployment Insur
ance Commission shows that there were 3,067,169 registered insured
persons on March 31, 1943, and the number of legisterecl employers
was 168,337. However, since many persons who were registered as
insured between July 1,* 1941, and March 31, 1943, may have left
1 Second report of th e (C anadian) U nem ploym ent Insurance Commission for the fiscal year ending
M arch 31, 1943 (O ttaw a, 1944)1
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Monthly Labor Review—October 1944
insurable employment, the number given is in excess of the number
of insured workers at any given date. ,
The only important changes in coverage during the year related to
life insurance agents and workers in mines and in shipbuilding. In
the case of life insurance agents, some had been considered to be
employed under a contract of service and were therefore insurable,
while in other cases the employer-employee relationship did not exist.
To remove this anomaly all life insurance agents were excepted from
the provisions of the law, as of November 21, 1942. It had been found
extremely difficult to estimate annual earnings of miners, owing to
different methods of payment, with the result that some miners had
been ruled insurable and others not. A regulation effective in Feb
ruary 1943 provided, therefore, for the inclusion within the insurable
classes of all peisons employed in a mine unless they are employed on
a fixed-salary basis exceeding $2,000 a year. An order in council of
January 7, 1942, had provided that contributions were to be required
for employees whose remuneration exceeded $2,000 a year if the
Commission considered it to be above that amount as a result of the
existing state of war. This order was applied to all employees in the
shipbuilding industry whose wartime earnings exceeded $2,000 a year
(whereas prior to the war they were $2,000 or less), by ruling of the
Commission, effective April 1, 1943.
For the year ending March 31, 1943, contributions to the Unem
ployment Insurance Fund by employers and employees amounted to
$57,435,305. The contributions are made according to a graded
scale, but for the country as a whole, employers and employees con
tribute approximately equal amounts. There were 26,713 claims for
benefit that were allowed during the yeay for which the total amount
of benefit paid was $716,058. The total assets of the fund as of March
31, 1943, amounted to $114,011,083.
########
B ritish U nem ploym ent Insurance F u n d in 1943
RECEIPTS of £79,391,172 were reported by the British Unemploy
ment Insurance Statutory Committee for 1943,1 as against expendi
tures of only £5,5/5,530. Of this latter amount £2,795,000 was
expended for unemployment benefits—more than a million pounds
less than in 1942. Although there can be no doubt as to the full
mobilization of the nation’s energies for war in 1943, the report
stated, the fact that more than 2% million pounds were spent in
unemployment benefits shows that, even in a community working
at full capacity as the British community worked during the year,
there are intervals of idleness resulting from changes of program and
method and other inevitable causes.
Under the Unemployment Insurance (Emergency Powers) (Amend
ment) Regulations, 1943, no changes in the contributions and benefits
of the Unemployment Insurance Scheme may be made except by
legislation. The powers given to the Committee and the Minister
of Labor and National Service, subject to consultation with the
Treasury and the approval of Parliament, to bring about changes in
U pP d on th e Financial C ondition of the U nem ploym ent F u n d (General A ccount), and
L ig h th R eport of the Financial Condition of the U nem ploym ent F u n d (Agricultural A ccount), as of
.December 31, 1943. London, U nem ploym ent Insurance Statu to ry Com m ittee, 1944.
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Federal Reserve Bank of St. Louis
775
Social Security
the contributions and benefits by a special procedure not involving
legislation, were suspended for the war period by the 1943 regulations
cited above. As a consequence no recommendations were made by
the Committee, and the report was confined to the financial condition
of the Fund.
The accompanying table shows the approximate receipts and pay
ments of the general and agricultural accounts for the years 1942
and 1943. The statement includes figures taken from accounting
and other records which had not yet been subjected to examination
and audit.
Receipts and Expenditures of British Unemployment Insurance Fund, Years Ending
December 31, 1942 and 1943
General account
Agricultural account
Item
1942
1943
1942
£77, 782, 284 £1, 597,654
1943
T otal receipts__________________________________
C ontributions from—
Em ployers and w orkers. ________________
E xchequer_____________________________
Interest on investm ents_____________________
M iscellaneous sources. ____________ ____ ____
£79,027,670
51, 298,675
25, 648, 702
2,077,429
2,864
49, 023, 428
24, 510,952
i 4, 246,073
1,831
987,101
493, 534
116,942
77
960, 249
480,113
i 168,460
66
T otal expenditures_____________________________
U nem ploym ent benefit_____________________
R efunds on contributions for noninsurable
em ploym ent_____________________________
G rants tow ard authorized courses of instruction.
G rants tow ard traveling expensesl of insured
persons seeking em ploym ent___
. . . . . ..
A dm inistrative expenses___________________
Excess of receipts over p aym ents________________
Balance on D ecember 31___ ____________________
6,567, 876
3, 708,000
5,306,435
2, 709, 000
354,138
166,000
269,095
86,000
1,271
267,000
1,524
241, 000
33
3,000
23
3,000
14, 970
2, 576, 635
72, 459, 794
152, 265, 545
14, 970
2, 339, 941
72,475, 849
224, 741,394
30
185, 075
1, 243, 516
6,137, 968
30
180, 042
1, 339, 793
7,477,761
£1,608, 888
i No allowance has been m ade for interest accrued b u t not received on D ecember 31,1943.
General account.—The amount paid in to the general account
during 1943 amounted to £77,782,284, of which all but £4,247,904
represented contributions by employers, employed persons, and the
State. There was a total expenditure of £5,306,435, of which £2,709,000 was expended for unemployment benefit and £2,597,435 for ad
ministration and other expenses. The excess of income over expendi
ture, therefore, was £72,475,849. The balance on December 31,
1942, was £152,265,545, so that the net balance at the end of 1943
was £224,741,394. As compared with 1942, contributions by em
ployers and employed persons showed a decrease of £2,275,247.
This figure was affected by the withdrawal of men and women into
the armed forces and the substitution of uninsured part-time workers
for insured full-time workers (which tended to decrease) and the
decline of unemployment and the influx of new insured entrants into
industry (which tended to show an increase). No contributions were
received from the Defense Departments as payments for men dis
charged from the armed forces have been suspended since the out
break of war, until an assessment can be made. A decrease amount
ing to £1,137,750, occurred in the Exchequer contribution, which was
proportionate to the net contributions from other sources.
Expenditure for unemployment benefit in 1943 was £999,000 less
than in 1942, and there was a decrease of £236,694 in the cost of
administration, resulting largely from the reduction in unemploy
ment.
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Federal Reserve Bank of St. Louis
776
Monthly Labor Review—October 1944
Agricultural account.—The agricultural account receipts in 1943
amounted to £1,608,888, of which all but £168,526 represented insur
ance contributions by employers, employed persons, and the State.
The expenditure of £269,095 included £86,000 for unemployment
benefit and £183,095 for administrative and minor items.
Contributions from employers and workers showed a decrease of
£26,852. The reason for this decrease, it is believed, may have been
the relative increase in voluntary workers and similar uninsurable
classes. The expenditure on benefits fell by £80,000, largely as a
result of the lower rate of unemployment in 1943. The charge for
administration, which is fixed at one-eighth of the net income from
contributions, automatically decreased by about £5,000 as a result
of the lower income from contributions.
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Federal Reserve Bank of St. Louis
Cooperation
O perations of C onsum ers’ Cooperatives in 1943 1
A GENERAL advance in both membership and volume of business
by cooperative associations providing consumer goods and services
was noted in 1943. In that year retail distributive business done by
these associations reached an estimated total of 468 million dollars,
and service business (meals, housing, medical care, burial, etc.)
accounted for about 12% million dollars—altogether over 480 million
dollars. The wholesale associations supplying these local organiza
tions had a combined wholesale distributive business of over 148%
million dollars, in addition to a service business exceeding 3% million
dollars. Net savings on the wholesales’ operations for the year
exceeded 8% million dollars, of which over 6 million was returned to
member associations in patronage refunds. Service federations had
a combined business of nearly 2 million dollars.
The central business federations manufactured goods valued at
over 31 million dollars, all but 5 million of which was produced by
the wholesales.
Increased production and acquisition of productive plant by the
federations and diversification of activities by the local associations
may be said to have been the outstanding developments in the con
sumers’ cooperative movement in the United States in 1943.
Nearly all types of associations showed an increase in number as
well as business progress in 1943 compared with 1942. Exceptions
were housing associations, which are practically at a standstill because
of wartime restrictions, associations providing rooms and meals,
which have declined somewhat because of the closing of many rooming
and eating clubs of male students at universities, and credit unions,
whose membership and business have fallen off as a result of a com
bination of wartime factors.
Table 1 summarizes the status of local associations and federations
as of the end of 1943.
1 D etailed statistics on the activities of consumers’ cooperatives will appear in B ulletin No. 796.
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Federal Reserve Bank of St. Louis
777
778
Monthly Labor Review—October 1944
T able 1.—Membership and Business of Local Cooperatives and Central Federations
in 1943
LOCAL ASSOCIATIONS
T ype of association
R etail d istrib u tiv e associations____ ____ ________________
Stores and buying c lu b s ,_____ _____________________
Petroleum associations_________ _____________ ______
O ther d istrib u tiv e_____________________ ___________
D istrib u tiv e dep artm en ts of farm ers’ m arketing associa
tions 1___________________________ __________________
Service associations_______________ ____ _______ _____ ___
Rooms and/or m eals_______________________________
H ousing___________________ ____ __________________
M edical and/or hospital care:
On contract...
Own facilities.
Burial: 3
Own facilities_____
Caskets o n ly ...____
Cold storage___________
W a te r________________
P rin tin g and publishing.
R ecreation____________
M iscellaneous_______ _
E lectricity associations 4___
Telephone associations 8___
C redit unions_____________
Insurance associations______
T otal num
ber of asso
ciations
(estimated)
N um ber of
members
(estimated)
A m ount of
business
(estimated)
4,2252,700
1,475
50
1, 355,000
600,0C0
735, 000
20,000
8, 000,000
550
594
200,000
200
59
20,000
2,100
180,000,000
12, 270,000
2, 775,000
2 1, 575,000
75
18
200, 000
25, 000
4,000,000
1, 750,000
40
3
80
33
16
25
45
850
5.000
10,460
30.000
1,300
26.000
300.000
5,000
950.000
2,000
200.000
2.000
386, 300
75,000
3, 500
1,400
1, 210,000
' 330,000
3, 041,000
10, 000,000
$468,000,000
235.000.
000
225.000.
000
475.000
65, 000
175.000
35,000,000
2 5, 485, 000
211, 492,000
185,000,000
DISTRIBUTIVE, SERVICE, AND PRODUCTIVE FEDERATIONS «
V
T ype of federation
W holesales:
Interregional_____
Regional............ .
D istric t_________
Service fe d e ra tio n s___
Productive federations.
A m ount of business
N um - Member of ber
fed er associ Wholesale
ations ations
R etail
distrib u tiv e Service
P a tro n
N et earnage
Valueofown ingsfrom refunds
production all depart from all
m ents
dep art
m ents
2
11
24 7$5, 182,943
7$2,149, 002 7$131,750 7$114, 826
23 3,377 140, 293, 798 $3,191, 796 $16,610, 613 23, 395,842 8,317,010 6,044, 657
165
2,808, 696
105.888
555, 283
112, 229
89, 769
14 1, 114
1, 865, 376
54, 954
8, 911
9
8 15
5, 004,128
166,115
114, 437
1 Figures no t estim ates b u t actual aggregates for the 550 associations for w hich d ata were available.
2 Gross income.
3 Local associations only; burial organizations composed of local associations, are included under “ serv
ice federations.”
4 D ata are for 1942; no data on which to base later estim ate.
1 D a ta are for 1936; no d ata on which to base later estim ate.
6 D ata relate to reporting associations only.
7 One organization only.
8 F iv e federations only.
A ctivities of C redit U nions in 1943 1
THE 9,000 active credit unions in the United States made more than
iy2million loans to their 3 million members in 1943, amounting to con
siderably over 211 million dollars. On this business, earnings were
made exceeding 6 % million dollars, from which dividends on share
capital amounted to $5,337,845. Total assets of these cooperative
credit associations amounted to nearly 362 million dollars.
i A more detailed report will appear io Bulletin No. 797.
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Federal Reserve Bank of St. Louis
Cooperation
779
As a result of a combination of wartime factors (increased earnings
of workers, lessened need for credit, control of installment buying,
dearth of certain high-cost consumer goods, etc.) this branch of the
cooperative movement has been showing a downward trend since 1941,
after a hitherto unbroken rise.
As compared with 1942, all of the above totals except assets showed
a decrease. The membership fell 3.3 percent, business (loans granted)
16.2 percent, and earnings 37.6 percent. On the other hand, share
capital increased 6.6 percent and total assets 6.3 percent.
Considering credit unions of all types combined, at the end of 1943
6 States (Illinois, Massachusetts, New York, Ohio, Pennsylvania, and
Wisconsin) had over 500 active associations each; in only Illinois,
however, did the credit-union membership exceed 300,000. Illinois
and New York were the leading States as regards loans made during
the year.
Contrary to the general trend, substantial increases in membership
were shown in nine States (Alabama, Georgia, Hawaii, Indiana,
Kansas, Massachusetts, Michigan, North Dakota, Rhode Island, and
South Carolina), and in loans made in 6 States (Alabama, Hawaii,
Kansas, North Dakota, Rhode Island, and Vermont).
The data on which the above findings are based were furnished to the
Bureau of Labor Statistics for the State-chartered associations in most
cases by the State officials—usually the Superintendent of B a n k scharged with the supervision of these associations. For Alabama
and South Carolina the data were supplied by the State Credit Union
League. No report was received for Mississippi; for this State esti
mates were made, based upon the trend in other States and in this
State in previous years. The same was done also for certain items
concerning which some States do not require reports. All of the data
for the Federal associations were furnished by the Credit Union Divi
sion of the Federal Deposit Insurance Corporation.
The data shown for individual States include both the Federal and
State credit unions, except in Delaware, Hawaii, Nevada, New
Mexico, South Dakota, and Wyoming, which have no State credit
union act. In Connecticut where credit union legislation was passed
in 1939, no associations had been chartered by the State at the end of
1943. For all of these States the figures therefore cover Federal credit
unions only.
Operations in 1942 and 1943
The membership and business operations of credit unions are shown,
by States, for 1942 and 1943, in the accompanying table. Data are
for the calendar year in all States except for the State-chartered asso
ciations in Arizona, Kentucky, New Hampshire, and Vermont where
they are for years ending June 30, and Georgia where they are for the
years ending November 30.
In Nebraska, only part of the “ cooperative credit associations”
formed under the 1929 law were operating in well-defined groups of
persons having a common bond of interest (the usual requirement for
issuance of a credit union charter). The others were rural organiza
tions, each operating throughout an entire community—usually one
which was without banking facilities—and had become in actuality
commercial banks. A credit union law became effective August 29,
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Federal Reserve Bank of St. Louis
780
Monthly Labor Review—October 1944
1943. By the end of the year, 32 of the former cooperative credit
associations of the credit-union type had applied for and been granted
charters under the new law. The data shown in the table, however,
cover both types of credit associations.
Operations of Credit Unions in 1942 and 1943, by States
State and type of
charter
N um ber of
associations 1
Y ear
All S tates______ . . . ___
1943
2 1942
1943
2 1942
1943
Federal associations. _
1942
State associations___
A lab am a.. ___________
A rizona.
...
.
_
A rkansas_________
California_____
Colorado______ .
Connecticut 4_ .
D elaware 4 .
D istrict of Columbia __
Florida_______
Georgia______
H a w a ii4_______ _
Id a h o _______
Illin o is...
In d ia n a _______
Iow a. ______
K ansas ___
....
K entucky
...
Louisiana____. . .
M ain e______ .
M ary lan d _______
M assachusetts
M ichigan___
M innesota________
M ississippi5________
M issouri __ ..........
M on tan a___ _
___ . .
N e b ra s k a ..________
N evada 4_________ . _
N ew H am p sh ire.........
1943
1942
1943
1942
1943
1942
1943
1942
1943
1942
1943
3 1942
1943
3 1942
1943
1942
1943
1942
1943
1942
1943
1942
1943
3 1942
1943
1942
1943
1942
1943
1942
1943
1942
1943
1942
1943
1942
1943
1942
1943
1942
1943
1942
1943
1942
1943
1942
3 1943
2 1942
1943
1942
3 1943
1942
1943
1942
1943
1942
1943
1942
See footnotes at end of table.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
N um ber of
N um ber of loans m ade
during
members
year
C h ar
tered
R e
porting
10,460
10, 602
5, 372
5, 622
5,088
4,980
9,084
9,470
5,225
5,400
3,859
4,070
3,041,136
3,144,603
1, 738, 773
1,797,084
1, 302, 363
1, 347, 519
83
95
26
25
35
37
523
508
119
118
215
214
13
13
130
129
192
204
155
146
102
100
44
46
811
849
343
337
240
243
133
145
117
125
175
166
54
54
75
76
563
568
278
282
381
394
30
28
391
395
45
45
206
212
6
6
16
17
77
87
24
22
28
29
453
457
102
109
170
179
10
11
104
109
163
171
140
112
94
93
34
34
782
836
302
299
212
214
121
133
112
115
134
138
39
44
67
68
532
544
243
249
343
362
26
24
381
382
37
39
192
208
4
5
15
17
25,967
23,658
3 3, 504
3 3,802
3,282
3,682
191, 773
199,172
23,852
24,879
92, 775
96, 931
2,291
2,811
67,148
70,803
34, 431
36,066
34,164
30,939
38, 291
37, 499
4,199
4,324
334, 346
349,936
3 107, 736
3101,673
41,690
44,037
38,162
28,889
3 27,498
3 27,461
3 31, 603
3 32,922
9, 726
9,817
27,984
29,353
256,302
255,836
106,136
101,136
68,487
73,092
11,450
11,021
96,623
98,343
5,868
5,862
34,122
35,803
635
675
5,948
5,923
A m ount of loans—
M ade d u r
ing year
O utstanding,
end of year
1, 658,432
1, 945, 413
970, 290
1,129, 902
688,142
815,511
$211,491, 670
250, 000,284
134,226,288
158,463, 317
77,265, 382
91,536,967
$123, 507,413
148,771, 572
88,279,260
105,884,822
35,228,153
42,886, 750
3 20, 425
21,864
3 1,454
3 2, 608
2,034
3,869
3 97, 665
3 130, 237
3 13,385
3 17, 056
47,812
46, 729
1,252
1,889
3 36, 200
3 43, 507
23, 687
25,875
3 25,108
25,102
14,393
13,670
1,655
2,103
3 223,257
3 231, 730
3 63, 814
3 64,453
22,112
3 25,465
3 21,665
3 18,003
3 16, 524
3 18,455
3 18, 220
3 30, 381
4,061
5, 267
3 15,924
3 18, 758
3120,978
3 158,057
49,636
3 59,415
3 41,535
46,308
5,700
5,402
3 50, 342
3 64,492
2,176
3 2, 581
19, 234
26, 296
137
185
3 3,135
3 3,470
2,681,446
2, 575,065
3 200, 728
3 348,878
197,956
254,407
3 13,044,088
3 18,037, 253
3 1,939,659
3 2, 571,389
5, 760,962
5,884,490
143,923
176, 638
3,861, 540
4, 740, 720
2,960, 969
3,012,198
3 2,620, 957
2, 779,071
2,419,304
2, 359,964
210,154
259,110
24,978, 297
27,765, 716
3 6, 111, 586
3 8, 531,891
2,626, 549
3,173,641
2,291,252
2,134, 745
3 2, 247,978
3 3, 379, 342
s 1,936,933
3 3, 130, 165
434, 584
558,045
3 1,343,063
3 1, 894, 590
22,168,017
24, 629,075
7,722, 250
3 10, 564,345
3 3,625,376
4, 876,474
651,057
719,131
3 5, 740,274
3 6,686, 808
277, 280
3 269, 673
3,871,903
3,885,935
17, 644
21, 687
3 656,434
3 908,052
1, 251, 656
1,272,249
112,421
180,107
103, 315
132,043
7,818, 505
10, 233,838
933,037
1,120,222
2,198, 752
2,472, 209
62, 775
89, 739
2,166,807
2,880, 680
1, 559, 768
1,732,640
1,800, 283
1, 622, 294
1, 295,258
1, 513, 557
98,672
133,085
13,209, 074
17,038,979
3, 234,452
3,423, 880
2,005, 400
2,498, 219
1,092, 536
1, 319,197
1,405,106
2,201,233
952,416
1,196, 904
261,046
356, 755
804,408
945,858
15, 211,316
16,132,974
5,497,141
6,155,480
5,420,834
6, 273, 488
404,542
263,064
3,520,332
3 4,810, 631
142,740
155,209
1, 560,038
1,834,326
7,242
12,299
606,649
662,337
781
Cooperation
Operations of Credit Unions in 1942 and 1943, by States— Continued
N u m b er of
associations 1
S tate and ty p e of
charter
Year
N ew Jersey____________
N ew Mexico 4___ _____ _
N ew Y o rk_____________
N orth C arolina- ______
N o rth D akota s___ _____
Ohio____________ _____
O klahoma
___________
O regon......................... ___
Pennsylvania. ______
.
R hode Is la n d __________
South C arolina______ __
South D akota 4_________
Tennessee______________
Texas_______ _________
U ta h __________________
V erm ont.......................... .
Virginia___________ ____
W ashington_____
_ ...
W est Virginia__________
W isconsin______________
W yoming 4......................
1943
1942
1943
1942
1943
1942
1943
1942
1943
1942
1943
1942
1943
1942
1943
1942
1943
1942
1943
1942
1943
1942
1943
1942
1943
1942
1943
1942
1943
1942
1943
1942
1943
1942
1943
1942
1943
1942
1943
1942
1943
1942
C har
tered
R e
porting
282
280
19
19
933
928
188
187
105
114
680
718
89
87
92
92
702
694
40
40
62
61
37
37
165
160
447
456
73
72
11
10
126
127
229
248
82
75
572
597
25
22
232
245
15
14
737
799
154
173
92
65
597
642
75
77
77
81
573
598
33
34
32
36
32
32
126
132
352
391
67
66
9
8
86
97
200
220
64
56
571
596
19
18
N u m b er of
N um ber of loans made
during
members
year
104,500
113,361
1,476
1,485
286,851
300,050
28, 581
32,232
10,331
8,602
216,627
224, 545
318,873
19,447
14,025
16,382
219,647
241,814
24, 553
23,814
8,168
7,825
5,165
5,191
35, 216
39,065
80, 773
89,496
11,327
12,007
1,390
1,108
26,243
28,854
39, 852
44, 614
16,269
17,151
162,615
168,614
2,661
2,601
62,353
79,370
542
798
3 153, 746
3 193,080
19,950
3 27,763
5,643
3 5,178
103,264
114,374
3 8, 764
11,720
5,850
9,210
113,012
134,965
7,232
7,980
3 5, 547
3 9,624
3,050
3,655
3 30,037
3 31, 778
3 50,934
3 64, 545
3 5, 566
3 6,862
3 1,117
3 1,059
17,201
19,241
17, 276
22, 585
3 8,639
11,808
3 74,023
3 75,034
1,166
1,557
A m ount of loans—
M ade d u r
ing year
O utstanding,
end of year
$6,417,190
6,905,554
54,043
88,636
3 25, 246,435
3 31, 538,905
2, 231,635
3 2,695,972
580, 284
3 458, 744
13,258,049
13,902,793
3 1,174, 373
1,397,850
879,082
1,096,449
13,120,655
15,435,936
1, 574, 520
1,486,372
3 448,872
3 623,099
296,487
378,327
3 3, 579,940
3 4,135,787
3 5, 805,904
3 7, 282, 265
3 763,993
3 906,272
3 75,456
3 60,483
1, 862,480
2,061,500
2,328,995
2, 765, 767
3 806,435
1,060,274
8,081, 679
9,428,179
162,000
162,622
$2,666, 516
3,267, 671
28, 538
45, 751
14,056,090
17,196,206
1,215,305
1, 556,658
363,609
239,481
6,665, 583
7,850, 789
677,717
744,911
569,731
772, 255
6,667,170
8,164,499
3,331,938
3,343,196
3 199,940
3 293,487
126,812
176, 704
1,413,518
1, 680,836
3, 314,809
4,307,161
515, 792
593,058
24,971
22,180
1,020,981
1,081,232
1,298,075
1,870,228
3 485,553
605,213
4,050,187
6,221, 555
78,057
75,005
'M ost of th e difference betw een th e to tal num ber of associations and the num ber reporting is accounted
for by associations chartered b u t not in operation by the end of the year and associations in liquidation
which had not relinquished th eir charters.
2 Revised.
2 P a rtly estim ated.
4 Federal associations only; no State-chartered associations in this State.
* Prelim inary; subject to revision.
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Federal Reserve Bank of St. Louis
Labor Organizations
In tern atio n al Typographical U nion C onvention, 1944 1
THE decisive expression of the will of the rank and file in three
referendums held in the spring of 1944 and the measures approved by
the delegates giving the executive council emergency powers to cope
with any situation that may arise in the post-war period marked the
eighty-seventh convention of the International Typographical Union,
held in Grand Rapids, Mich., August 19-25, as one of its most sig
nificant annual meetings. In the first referendum vote, the member
ship of the I. T. U. authorized the executive council to call a convention
in 1944, thus reversing a previous decision not to hold conventions
while the war emergency lasted. The second referendum approved
the reaffiliation of the I. T. U. with the American Federation of Labor,
reversing several previous decisions to remain independent. The
terms of reaffiliation had been agreed upon between the executive
council of the A. F. of L. and the officers of the I. T. U. in 1940, and
were approved by the 1943 convention of the A. F. of L. The official
reaffiliation took place in August 1944, when the International Typo
graphical Union resumed per capita tax payments to the A. F. of L.,
making it possible for delegates from the Typographical Union to
attend the convention of the A. F. of L. in November 1944.
The third referendum vote elected all the major officers of the
I. T. U. from a single slate presented by the “progressive party” of
the union. This action broke an executive council deadlock that has
existed since 1938 because the principal officers belonged to different
“political parties” and could not work harmoniously together.2
This year all the officers were elected from the progressive slate.
Woodruff Randolph, former secretary-treasurer of the I. T. U. was
elected president; Jack Gill, of Cleveland, secretary-treasurer; Larry
Taylor, of Dallas, Tex., first vice president; and Elmer Brown, of
New York, as second vice president. As in previous years, the third
vice president, Thomas J. Martin, was elected by the mailers exclu
sively. The majority of the delegates to the convention were also
members of the progressive party of the I. T. U.
1 Prepared in th e B u reau ’s L abor Inform ation Service b y Boris Stern.
2 T h e I. T . U. is probably th e only labor organization which officially recognizes the existence of two
pmitical p arties” w ith in its fold as an effective m ethod for m aintaining democratic procedure w ithin the
union. T he tw o parties—th e progressives and the independents—have had about equal followings in the
m em bership of th e I. T . U. and have competed strongly in the biennial elections of the I. T . U. m ajor officers.
E ach p a rty has a national com m ittee w ith branches in m ost of the local unions and m ost of the chapels of
the I. T. U. Each p a rty generally prepares a complete slate of officers, and campaigns vigorously for their
election b y means of meetings, forums, caucuses, and th e distribution of appropriate literature and other
propaganda. T his arouses th e interest of th e m em bership in th e affairs of the union and accounts for the
large percentage of m em bers p articipating in th e elections. (F or more inform ation on the grow th and
developm ent of the two parties in th e I. T . U ., see article, Opposition to U nion Officers in Elections, by
Philip T aft, in Q uarterly Journal of Economics, F eb ru ary 1944, p. 246.)
782
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Federal Reserve Bank of St. Louis
Labor Organizations
783
Principal I. T. U. Problems
As the major political and controversial problems had been decided
by the membership prior to the convention, the delegates and the
executive council were free to devote their entire time and energy to
the regular business of the union—wages, hours, and working condi
tions, and preparations for emergencies that may arise when the coun
try is in the process of reconverting from war to peacetime economy.
The keynote to deliberations was set by the executive council in a
special report which highlighted the problems confronting the union:
We are approaching a period of readjustm ent and change which will call for our
utm ost effort and unity in the solution of the very difficult problems confronting
us. This convention has the opportunity of legislating for our post-war period
* * *. Some legislation presented before this convention is revolutionary in
character and is frankly so described in order th a t there may be no m istake as
to the purpose behind it. I t is desired th a t such legislation be subm itted to
referendum vote of the membership of the I. T. U., even though the legislation
m ight be adopted by the convention w ithout th a t procedure. I t is df sired th a t
th e members be fully aware of the purposes of the legislation so th a t if it is adopted
its enforcement will be the will of the membership.
Practically all the recommendations in line with the program of
action outlined by the council were adopted, though in some cases not
without extensive .deliberation. Some had to be decided by a division
vote requested by the opposition.
By far the most significant action was the adoption of what the
executive council referred to as the “revolutionary” plan to fortify
the I. T. U. against any drive to reduce wages and destroy working
conditions. This action took the form of a change in the union by
laws, giving the executive council emergency powers to call a strike and
to use all available funds if deemed necessary to maintain the integrity
of the union. The clause adopted reads as follows:
Recognizing the probable necessity of emergency action to protect the interests
of subordinate unions and the international union during th e war and post-war
periods of economic instability, the executive council of the I. T. U. is author
ized * * * to approve or order strikes or recognize lockouts if in its judgm ent
it deems it necessary.
In exercising the above power, the application of provisions of section 12,
article IX , of the constitution [which says: “ The executive council shall have the
power-and authority to transfer money of this union from one fund to another
whenever deemed necessary to m aintain the integrity of this organization] shall be
deemed proper for the purpose of paying strike benefits.
The above emergency powers shall stand repealed upon the declaration by the
executive council or a convention th a t they are no longer necessary.
Although the convention adopted this amendment by a vote of 144
to 88, it will not go into effect until after it has been voted upon by the
membership in a referendum on a date to be selected by the executive
council. It is characteristic of the democratic procedure of this organ
ization that the executive council and its supporters favoring the
change and the delegates who opposed it were in complete agreement
as to the desirability of submitting it for final decision by the
membership.
Effect of the War
To make it possible for the delegates to act intelligently on matters
of collective bargaining, wages, and working conditions in the printing
industry, the executive council prepared and the convention endorsed
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Federal Reserve Bank of St. Louis
Monthly Labor Review—October 1944
784
a detailed statement describing the conditions under which the mem
bers of the Typographical Union are employed now as a result of war
conditions, particularly emphasizing the injurious effects of the wage
stabilization program on the real income of the membership. Parts
of the statement follow:
The International Typographical Union has a membership of approximately
82,000, 10,000 of whom are in the armed forces, and 6,711 on the union’s old-age
pension roll as of July 20, 1944. I t has 848 subordinate unions in the United
States and Canada. The membership in these local organizations ranges from
8 members in small towns to more than 9,500 in larger cities. * * *
Members of the union, for the most part, have had to struggle along w ith the
proceeds of weekly pay checks derived from a minimum num ber of hours a t the
1941 straight-tim e hourly rate, plus meager increases perm itted by the War Labor
Board.
Additional earnings derived from overtime have been insignificant. This is due
to a num ber of factors peculiar to the printing industry.
First, there were a considerable num ber of unemployed craftsmen in the printing
trade during the years preceding the war. The records show th a t 13.74 percent of
the members were unemployed in 1941, 12.52 percent in 1942, and 11.03 percent
in 1943.
Second, the union exercises rigid control of overtime. Members who work in
excess of the minimum num ber of hours are required to give such excess tim e to
the first available unemployed member. Thus, so long as there are any number
of unemployed members the member who occasionally works overtime, because
of rush orders or tem porary shortage of help, lays off a num ber of hours equivalent
to the num ber of overtime hours worked, bringing his to tal earnings back near the
minimum weekly rate.
Third, the acute shortage of paper and other material, equipment, etc., has
greatly reduced the dem and for printers during the last 2 years. * * *
The p rinter’s economic position under the G overnm ent’s “hold-the-line” pro
gram is pictured in the following table:
Year
1939_____________________
1940_____________________
1941 (Jan. 1)_____________
1941 (full year)
1942_____________________
1943_____________________
1944 (June) .
1944_____________________
Average fu ll
time wage
rate
__$46.
__ 47.
. . 47.
_. 47.
__ 48.
. _ 49.
__ 51.
. . 51.
71
13
52
52
58
96
99
99
Indicated'actual
average earn
ings (includ
ing overtime,
if any)
$38. 59
39. 60
40.
42.
44.
51.
51.
99
50
95
13
13
Bureau of
Labor Statistics
cost-of-living
index
Peal wages
if working
fu ll time
99.
100.
100.
105.
116.
123.
125.
0)
$46. 99
47. 03
47. 14
45. 17
41. 69
40. 45
41. 45
C)
4
2
8
2
5
5
4
1 Based upon an index of 145.0 (arrived a t in labor’s so-called M eany-Thom as report), the'j¡“ real wages’
in 1944 am ounted to $35.85 per week. (Ed.)
In 1938-39-40, the average printer, provided he was the head of a household
w ith one or more dependents, paid no income tax. His 1941 income tax was
negligible. In 1943-44, his $35.85 real wage is further reduced by a withholding
tax of from $3 to $5 per week—after which he m ay go out and indulge in an orgy
of spending.
In conclusion,^ theX executive council’s statement requested (1)
that the WarJLabor BoardV‘revert to the principle it established
when it announced that a 15-percent increase in the cost of living
warranted a 15-percent increase in wages,” and (2) that it “recognize
as approved any wage scale up to the increase in the cost of living and
in cases of employers not directly charging wages against war mate
rials that increases negotiated up to 50 percent stand as approved.”
In response to the request of the executive council for action on a
program of collective bargaining to meet post-war contingencies, the
convention approved a series of amendments to the laws of the organi
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Federal Reserve Bank of St. Louis
Labor Organizations
785
zation, most of which dealt with recommendations to the locals and
chapels on what to incorporate into their future or revised agree
ments with employers. The most significant of these changes were
as follows:
1. Subordinate unions shall incorporate in proposed contracts a clause pro
viding for holidays w ith pay; annual vacations with pay; severance pay of not less
th an 2 weeks for all members affected by suspensions or mergers; and pay allow
ances for sickness.
2. Six m onths after the cessation of hostilities, no contracts shall be approved
for negotiation by the International which does not provide for a maximum
workweek of 5 days, the shifts of which shall not exceed 7]/%hours each; the I. T. U.
shall not approve for negotiation any contract th a t does not contain a provision
for a minimum vacation allowance of 2 weeks w ith pay.
3. At the conclusion or amelioration of governmental restrictions on wage
rates, all local unions are urged to seek to negotiate by supplem entary agree
ment, or otherwise, wage scales more representative of the higher cost of living
and progressive living standards. * * *
4. Subordinate unions shall provide in proposed contracts th a t night work
shall be paid for at not less than 10 percent over the day scale.
5. When any arbitration procedure to which a local union is com mitted reaches
a deadlock where further action cannot result in a conclusion w ithin a reasonable
time, the local union m ay request the executive council to release it from further
obligations under such arbitration procedure or agreement. The executive
council shall have authority to decide th a t issue and may so release a local union.
I. T. U. Difficulties with Mailers
The International Typographical Union, mother of all printing
trades unions, had at one time complete and sole jurisdiction over the
entire printing industry. Gradually, however, as the industry grew
and technological developments made it possible to draw a clear dis
tinction among the separate crafts in the industry, the I. T. U. re
linquished part of its jurisdiction to newly established international
unions covering the separate crafts concerned. In 1895 the printing
pressmen and the bookbinders were authorized to establish their own
international organizations, independent of the I. T. U. The Inter
national Stereotypers’ and Electrotypers’ Union was similarly estab
lished in 1901, and the International Plioto-Engravers’ Union in 1903.
For some time past, the I. T. U. has been in difficulties with another
craft within its organization, that of the mailers. The difficulty
dates back to 1926 when by a court injunction the representatives
of the mailers’ group compelled the I. T. U. to refrain from submitting
to a referendum vote a resolution intended to cancel the rights of the
mailers to participate in the general election of the officers of the I. T.
U., but to give them the right to select a president of their own who
would automatically also become a vice president of the International
Typographical Union. The same injunction made it mandatory
upon the I. T. U. to retain article X III of its constitution, which
refers to the formation of trade district unions by any craft within
the union and gives in detail the specific rights and prerogatives of
such district unions.
In 1937 the I. T. U. held a referendum vote on whether mailers
should be permitted to form an independent international union.
The majority of the membership voted against the proposal.
In 1943 delegates from a substantial number of mailers’ trade dis
trict unions met in Cincinnati and formed the International Mailers
Union. Such was the growth of this union that in a number of cities
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Federal Reserve Bank of St. Louis
786
Monthly Labor Review—October 1944
it became able to compete with the I. T. U. for|designation as col
lective-bargaining representative of the mailers. In some cases the
new union won the collective-bargaining right from the I. T. U.
In reporting to the convention on the problem of mailers, the
executive council emphasized that it regarded the new International
Mailers Union as a dual union, which is strictly forbidden by the
laws of the I. T. U. The president particularly objected to the claims
of the International Mailers Union that its members, while working
at the mailing trade as members of the new organization, should also
be allowed to continue as members of the I. T. U. for the purpose of
protecting their pension and mortuary rights in that union. The
executive council recommended to the convention the enactment of
legislation which would give the seceding mailer members an oppor
tunity to rejoin the I. T. U., without prejudice, prior to January 1,
1945, but at the same time also give the executive council the right
to expel without trial any members of the Typographical Union who
continued to belong to the International Mailers Union after the
deadline of January 1, 1945, and to dissolve or revoke the charter of
any subordinate I. T. U. body or take charge of its affairs when
necessary to protect the I. T. U. jurisdiction.
Two other amendments to the bylaws were adopted by the dele
gates intended to combat dual unionism in general and the recent
development among the mailers in particular. Regarding dual
unionism, the following was adopted:
Where two or more subordinate unions of the I. T. U. are represented in a local
Allied Printing Trades Council, either local m ay call upon the executive council
to decide questions of jurisdiction or international policy.
Where dual unionism is involved, the executive council may name the delegates
of the local union to the local Allied Printing Trades Council or the executive
council may bar delegates from a local union from participation in meetings and
decisions of such local councils.
On the question of traveling cards for the mailers, the amendment
reads:
Travel cards from the Mailers Trade D istrict Union may not be accepted by
th e I. T. U., mailer, or printer unions, w ithout consent of the executive council.
With the permanent injunction of the mailers still pending against
the Typographical Union, some of the delegates, including the third
vice president (who is elected by the mailers exclusively), questioned
whether the convention had the right to adopt such drastic steps
against the mailers and against the International Mailers Union. It
whs intimated, and indirectly also admitted by President Randolph,
that additional litigations before the courts will be necessary before
the case of mailer membership in the I. T. U. is finally settled.
General Resolutions
Most of the more than 170 propositions submitted to the delegates
dealt either with collective bargaining or with the problem of the
pension and mortuary funds. Among the exceptions was a resolu
tion calling for the peace committee of the A. F. of L. and the C. I. O.
to begin immediate conferences for the purpose of uniting the two
great labor organizations. Another resolution instructed the execu
tive council to explore the possibilities of creating a daily newspaper,
to be owned and operated exclusively by subscribing international
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Federal Reserve Bank of St. Louis
Labor Organizations
787
labor organizations. Two other resolutions instructed the officers
of the I. T. U. (1) to seek legislation to amend the Social Security
Act by extending the Federal old-age and survivors insurance bene
fits to employees of religious, educational, and charitable organiza
tions not now covered by the act, and (2) to amend the unemploymentinsurance laws in every State to include the employees of all such
institutions as are now exempt from the law.
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Federal Reserve Bank of St. Louis
BUY
UNITED
STATES
BONDS
AND
STAMPS
Industrial Relations
Seniority in the A kron R ubber In d u s try 1
Summary
THE war has both increased the demand for rubber products and de
creased the supply of crude rubber. It was expected early in the
war period that the conversion of rubber plants to the manufacture of
other products and the trend toward decentralization would lead to
the closing of the Akron rubber plants and to widespread unem
ployment. Actually, however, there was little conversion to non
rubber production, and the shift from the production of tires for
civilians to tires for the armed forces was quickly accomplished with
out any major adjustments in machines or methods. Instead of the
anticipated unemployment, Akron has become an area of extreme
labor shortage. Consequently, the United Rubber Workers of
America (C. I. O.) is not greatly concerned about the effect of de
centralization upon full employment in Akron and anticipates that a
post-war increase in the production of civilian rubber goods will
absorb all workers available in the Akron area.
Unlike industries which experienced wartime conversion, the Akron
rubber industry has undergone little change in plant organization,
and seniority rules evolved for peacetime operations have been con
tinued with slight modification. The adjustments made to meet
wartime demands were the introduction of synthetic rubber; the
change to the 48-hour week; the increased proportion of women and
the consequent adaptation of the machinery for their use; and the
increased proportion of Negroes and their gradual assimilation into
occupations and departments formerly reserved exclusively for white
workers.
General Seniority Practices and Their History
Before the rubber industry was organized by the United Rubber
Workers of America, lay-offs, hiring, and transfers were entirely at
the discretion of management which only occasionally gave major
consideration to length of service. Since the foreman’s judgment of
“merit” was usually decisive, there were continual complaints of un
fairness and discrimination, and even the charge that “lay-offs were
used as a form of intimidation; men were laid off to make an example
*
1
Prepared in the B ureau’s In d u strial Relations Division b y Philom ena M arquardt and Sophia F . M
Dowell. For a sim ilar stu d y on Seniority in th e A utomobile In d u stry , see M onthly L abor Review,
Septem ber 1944 (p. 463). In the present study, officials of th e A kron rubber companies and international and
local officers of the U nited R u b b er W orkers U nion (C. I. O.), as well as representatives of the W ar M anpow er
Commission and the U. S. E m ploym ent Service, were interviewed. All the plants of the following companies
situ ated in either A kron or B arberton, Ohio, were included in th e survey: Firestone Tire & R ubber Co.,
General Tire & R ubber Co., B. F . Goodrich Co., Goodyear Tire & R ubber Co., Seiberling R ubber Co.,
and Sun R ubber Co. All th e locals referred to are affiliates of th e U nited R ubber W orkers of A merica.
788
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Industrial Relations
789
of them if they protested against working conditions.” Accordingly,
the demand for seniority rules was one of the organizing issues of the
U.R.W.A., and with the signing of union agreements between 1937
and 1940, seniority became the governing factor in lay-offs, rehiring,
and transfers.
In general, management has conceded to labor the prerogative of
defining seniority, and management and labor representatives seem
to agree that under present conditions “seniority is a good thing.”
“If a man didn’t have anything on the job he could call his own, the
labor turnover would be too great,” one management representative
observed. “The theory of seniority is not 100 percent perfect,” one
international union representative admitted, “ but it is better than any
other theory that has been advanced. Someone’s judgment as to
merit is certainly not as fair.” However, both management and
labor state that seniority rules may be responsible for the accumula
tion of a lot of “dead timber.” Said one union representative, “Too
many times the worker gives more consideration to job security than
to opportunities that may arise for advancement.”
In general labor and management representatives are confident
that, as one expressed it, “we’ve got the seniority problem licked,”
but union agreements and their seniority clauses are so new that
there have been few opportunities to test their effectiveness during
large-scale lay-offs or even during the characteristic seasonal varia
tions in employment.
B a sis fo r determ ining sen io rity .—Before an employee acquires
seniority, he must serve a probation period, the length of which
varies from 60 days to a year.
The nature and organization of the skills in the rubber plants
broadly determine the seniority pattern. Although there are a small
number of highly skilled operations, the majority of the jobs require
a learning period of less than 3 weeks, and while seniority is qualified by
“ability to do the job” a trial or learning period is usually permitted.
If the senior worker does not have the education or physical strength
required to learn a particular job during the trial period, he is thereby
restricted in the exercise of his seniority.
There tends to be a general similarity of jobs on a departmental
basis, a less close similarity of jobs on a divisional basis, and a still less
close similarity on a plant basis. Consequently, the unit for seniority
determination, parallelling the organization of factory operations, is
basically departmental, although total length of company service is
also taken into consideration.
Under the modified department seniority system in the Akron
rubber industry, an employee’s right to a job depends initially on the
relative length of his company service as compared with that of other
employees in his department. This is in contrast with the stricter
department system in some other industries where it is the employee’s
length of department service that is compared with that of other
employees in his department. Moreover, although the primary
seniority unit in the rubber industry is the department, the senior
worker in the department frequently has the right to avoid lay-off
by moving to another department to fill a vacancy, or, if there is no
vacancy, to displace a worker with less company service.
While “job seniority” is specified in only one agreement, it is an
important issue among the rubber workers of several plants. The
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Federal Reserve Bank of St. Louis
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Monthly Labor Review—October 1944
term is used with various, even contradictory, meanings and applied
in several different ways. What constitutes the “job” may be
interpreted as a type of machine (or sometimes even the particular
machine), or the product to be made on the machine, or the type of
material handled.2 “Job seniority” may mean on the one hand that
whoever has been working longest on a given job has a right to that
particular job, regardless of his length of service wfth the company.
On the other hand, it may mean that the senior worker (i. e., the one
with the longest company service or, in some cases, the longest de
partment service) has a right of choice of job in his department. In
the latter case he would not only have first consideration in case of a
vacancy, but would be allowed to take over the job of a junior worker
in that department, whenever he chose.
Union officials complain that this arrangement encourages great
intra-departmental mobility, inefficiency, and many disputes between
union members. Job seniority is urged mainly by those workers who
stand to gain personally from the particular arrangements they de
mand. In plants where job seniority is not provided in the agree
ment, the extent to which it is practiced reflects the pressure which
particular groups of workers are able to exert.
Work Sharing
Most rubber plants provide for the reduction of the workweek
before lay-offs are made. If further lay-offs become necessary, em
ployees are removed from the department on the basis of seniority,
until the workweek is increased to a more nearly normal level.
Agreement provisions regarding work sharing have all been super
seded for the duration by Executive Order No. 9301 which reads in
part as follows: “For the duration of the war, no plant, factory, or
other place of employment shall be termed to be makiug the most
effective utilization of its manpower if the minimum workweek therein
is less than 48 hours per week.”
The strict enforcement of the 48-hour week by the War Man
power director for the Akron area has occasioned some criticism by
both management and union. When temporary curtailment of
production is necessary, management may not wish to risk the per
manent loss of trained workers through lay-off and may try to retain
these workers by reducing the workweek. Several union officials
declared that the labor shortage is not so great as the requirement of
a 48-hour week would imply, and complained that morale was being
lowered by workers’ being sent home early owing to lack of work or
material.
There was a test case of the enforcement of the 48-hour week
regulation in March 1944 when the gas-mask department at the
Goodyear Tire & Rubber Co., employing about 1,500 workers, was
discontinued. The Goodyear agreement calls for curtailment of
hours for 8 weeks before any employee is taken off the pay roll. Both
the company and the union favored work sharing, but the WMC area
director maintained that the agreement had been superseded by
Executive Order No. 9301. After much discussion it was agreed
that for the duration there is to be no reduction of hours without
2
For example, th e w orker m ay prefer m aking a tire of a particular size on w hich his earnings are greatest’
or he m ay seek th e privilege of working only w ith n atu ral rubber, w hich is easier and cleaner to work w ith
th a n synthetic rubber.
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WMC permission, and such permission is to be granted only if the
company can reabsorb in a very short time the employees involved.
Lay-Off Procedure
Lay-offs in the Akron rubber industry are initially on a department
basis. After temporary employees have been removed, regular
employees in the department are laid off on the basis of company
serviced There are some variations, however, among the companies.
In all but two companies senior employees have the bumping privi
lege.
At the B. F. Goodrich Co. a 5-year man has divisional rather than
mere departmental seniority, and to avoid lay-off can displace (bump)
the employee in the same division who has the least company service,
providing the latter has less than 5 years’ company service.
A broader seniority unit is provided at the Goodyear Co., where
a qualified employee may displace another employee with less
seniority anywhere in the plant. The order of displacement in the
event of lay-off is stipulated as follows: (a) To identical operations,
or operations listed as like operations in other departments; (b) to
other operations in other departments for which the transferee’s
previous satisfactory experience, gained at any time while in the
employ of the company (except when temporary filling of job has been
caused by vacations or sickness), can qualify him; (c) to short learning period operations for which he can qualify. Thus, bumping
can occur practically anywhere except for jobs requiring long training
periods for which the senior employee has no prior qualifications.
However, union officials report difficulty in enforcing the transfer and
bumping provisions because “the company insists on job seniority.
It would ratherJay^ofTmen, than bring ,them into a new department
for training.”
At the birestone Co., in contrast, bumping is never permitted and
the senior employee has only the advantage that, “if * * * there
is a vacancy in some other department where all the employees have
been returned to work, this laid-off employee shall have first consideration, consistent with, his experience and qualifications to do
the^ work.” The local union president defends this arrangement,
saying, “Plant-wide seniority would be impractical. It upsets the
department all the time. * * * Besides our lay-offs are generally
company-wide. For instance, the big lay-off in the fall of 1937 and
spring of 1938 affected every department at the same time.”
Rehiring Procedure
In general, rehiring occurs in each department in reverse order to
lay-off. After department employees are called back and before
any new workers are hired, laid-off employees from elsewhere in the
plant are recalled to fill vacancies in that department. If new de3
Although the agreements commonly state th a t junior employees are “ laid off” w hen production is curn practice this m ay not result in autom atic loss of work. Instead the “ laid-off” worker is first
sent to the com pany’s em ploym ent or personnel office. There he is assigned to any vacancy elsewhere
m the p la n t for which he can qualify on the basis of his seniority along w ith his past experience Or ability
to learn the job. I t is only when such vacancies do no t exist th a t the employee is actuallyU aken off the
pay roll. 1 hus, the term “ transfer to avoid lay-off” can for all practical purposes be commonly substituted
for the term ‘lay-off.” T he only general restriction is th a t .transfers cannot .be m ad e betw een skilled
m aintenance work and production work.
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Federal Reserve Bank of St. Louis
792
Monthly Labor Review—October 1944
partments are established, an employee’s company seniority is com
pared with that of all those in the division and/or in the plant who
bid for the jobs available.
Rules for Transfers 4
Intercompany transfers.—Anticipating wartime conversion from
rubber products and seeking to encourage movement to essential
war work, the OPM made an agreement in December 1941 with
employer and employee representatives of the rubber industry,
providing that employees transferring from one company to another
be permitted to accumulate seniority with their original employer.
There were few such transfers, as the anticipated conversion never
took place. There was only the slight movement of experienced
rubber workers to supervisory positions in the newly constructed
airplane-wings plants of the Goodyear and Firestone companies and
a few intercompany transfers of workers who sought higher wages.
This movement from one essential job to another came under the
regulation of WMC whose most recently amended Employment
Stabilization plan for the Akron area (March 1944) permits only the
retention with the original employer of seniority already accumulated.
The divergence between the original OPM agreement and the
superseding WMC regulation has caused no trouble because there
have been so few transfers either under the OPM or WMC—not
over 400, according to the WMC director. All but a few transferees
have returned to their original plants, where local negotiations have
generally restored them to their former status with accumulated
seniority.
Intracompany transfers— Transfers are permitted when vacancies
occur in better-paid or otherwise more-desirable jobs, or when new
operations are established. Since there are no “lines of promotion”
based on skill or wage rates, the term “promotion” is not used by
company or union officials. However, advancement to higher-paid
jobs is generally based on length of company service along with mini
mum ability. Although senior employees are entitled to a trial
period in “advertised” or “posted” vacancies, those without the
physical or educational prerequisites usually refrain from bidding.
The transfer becomes official if, after a trial period, the employee
can “ efficiently handle the job to be filled.” Since an objective
measurement of efficiency in terms of the number of Bedeaux or
other units produced is possible, there are few disputes regarding
ability to do the job. Sometimes during the trial period the trans
ferred employee may be paid a hiring or learning rate; sometimes
minimum earnings are guaranteed during this period even if per
formance is not up to par.
Seniority rights vary with the circumstances of the transfer. Al
though employees who transfer at the company’s request generally
carry their seniority rights into the new department immediately,
those who transfer at their own request retain their seniority in the
original department for a specified period of time until permanent
status is established elsewhere.
4 O ther th a n transfers to avoid lay-off.
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Federal Reserve Bank of St. Louis
Industrial Relations
793
T ra n sfer to supervisory p o sitio n s .—In filling vacancies in the super
visory force, the companies are not required to give consideration to
seniority. Workers promoted to supervisory positions are no longer
in the bargaining unit and generally do not accumulate seniority.
Loss of Seniority
There is some variation among agreements, in the extent to which
seniority is retained during excused absences, such as sick leave, and
during lay-off. Frequently, the agreements stipulate a 2-year period
of lay-off without loss of seniority, although in a few instances workers
with longer service retain their standing for longer periods. Seniority
is lost when the employee is discharged for just cause, resigns, fails to
report when called after lay-off, or accepts permanent employment
elsewhere.
Exceptions to Seniority
D isabled e m p lo y ees— Exceptions to the general seniority rules are
generally made in the case of workers injured or disabled on the job.
The union favors such clauses, but the individual workers tend to
regard industrial accidents as the company’s responsibility and to
feel that they should not have to give up their own rights in favor of
those disabled on the job.
Occasionally there are grievances when union judgment concern
ing the extent of disability does not agree with that of the company
medical department. For example, while the latter may regard
overweight, the loss of a finger, or some such minor disability as
disqualifying the worker for particular types of work, the employee
involved may feel able to perform the job.
L n io n officers .—Union representatives and officers have certain
special seniority privileges. They are permitted to retain, and in
some cases accumulate, seniority during leaves of absence for union
business, and in one large company they have top seniority in the
unit for which they are elected.
Reemployment of Veterans
The provisions of the Selective Service Act are for the most part
incorporated in the rubber agreements. However, whereas the act
guarantees jobs only to those returning veterans who were permanent
employees, the agreements generally assure jobs to all former em
ployees, regardless of whether or not they served their probationary
period before entering the Army.
It is understood by union and management that the term ‘Tike
seniority” in the act means that seniority accrues during a worker’s
period of military service. Nevertheless, some company officials
maintain that the veteran has an absolute right to his former job,
and others feel that this matter will be determined in the future
through collective bargaining or by Selective Service interpretation.
From the outset the U. R. W. A. has insisted that workers entering
the armed forces should suffer no loss of seniority; at the same time
it maintains that there should be no discrimination against the workers
who remained on their jobs. Accordingly, it insists upon straight
seniority, with each employee having only those rights to which his
length of service (including service in the military forces) entitles him.
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Federal Reserve Bank of St. Louis
794
Monthly Labor Review—October 1944
The one aspect of the veteran reemployment problem about which
some unions express great concern is industry’s future attitude toward
physical and other handicaps of returning veterans. Since the com
pany medical department has the prerogative of deciding whether
a man is fit for a job he formerly performed, the company’s medical
policy will be a very important factor in determining how the jobrights provisions of the Selective Service Act are carried out.
Women Workers
With the increasing demand for labor in the Akron area, more and
more women have been recruited into the rubber industry. Now,
as before the war, the departments engaged in assembling, testing,
and curing of inflated rubber products employ chiefly women, but
the products formerly made by women have been almost entirely
eliminated and the fabrication of barrage balloons, rubber boats,
self-sealing fuel tanks, etc., has taken their place.
Frequently, mechanical adjustments are made in the machines so
they can be handled by women, and many of the heavier jobs formerly
done by men have been divided into lighter, relatively simple opera
tions. If it is impossible to simplify or dilute the job, one man is
assigned to do the heavy work, such as lifting materials or “ setting
up” the machine, for a group of women workers.
Where such adjustments are made, the basic rate for the job is
apportioned between the women and the men involved, in keeping
with the requirements of the revised job, and the women’s rate is
adjusted downward in accordance with the percentage of work taken
out of the job. As for the men who are replaced by women, it is
provided that on their new job they be guaranteed 100 percent, or
in some cases, 95 percent of their former average hourly earnings.
Union representatives frequently complain that slight changes in
operations are accompanied by a more-than-commensurate down
ward adjustment of the rate of pay. Some female employees claim
that they are often requested to perform men’s jobs for part of the
time, while their compensation continues for full time at the women’s
rate. In certain cases, however, women have been able to qualify,
without reservation or adjustment, for men’s jobs.
The union is afraid that the employment of women on hitherto male
jobs and the “diluting” of men’s jobs into those for women will result
in permanent lowering of wage rates and a curtailment of the number
of men’s jobs in the post-war period. Therefore, precaution is gen
erally taken to stipulate that the adjustments which have been made
are strictly an emergency measure. To control the number and
nature of men’s jobs taken over by women it is usually stipulated
that placing of a woman on a man’s job does not in any way change
the classification of the job, and that change of classification shall
not occur without negotiations.
Seniority status oj women.—When men and women work on dis
tinctly separate jobs, it makes no difference whether or not there are
separate seniority lists. If men and women are doing the same kind
of work, it is provided that women will be returned after the emer
gency to their regular pre-war operations in accordance with their
company seniority. Those with no pre-war women’s jobs on which
to apply their wartime seniority may be laid off. For the duration,
however, the seniority status of these women is the same as for men.
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Federal Reserve Bank of St. Louis
Industrial Relations
795
Reserved occupations fo r w o m e n — In an effort to make the most
economic use of available manpower in the rubber industry, the
WMC in the Akron area is currently seeking to introduce, through
voluntary union and management action, a program of “preferred
jobs for women.
Through the normal operation of seniority pro
visions in the rubber plants, many of the most desirable light jobs
which could be done by women are held by men with long service
records. Men will be urged to relinquish these operations volun
tarily and to accept the heavier, dirtier jobs that women cannot
handle; they will retain, however, the higher rate of pay of their
former positions.
While management does not object to the proposal in principle, it
anticipates complications in carrying it out as well as an unwillingness
of both male and female workers to submit to the restrictions involved.
A district C. I. O. official whom the Akron War Manpower director
called upon to organize this program charges that wherever tried it
has proved a failure, and that it is particularly unsuited to the rubber
industry. In general, lie fears that this plan, though scheduled to
last only for the duration, will set a precedent for lowering post-war
labor standards.
In some of the individual plants, voluntary arrangements already
prevail whereby men relinquish their jobs to women during the
emergency period, with safeguards against the lowering of post-war
standards, and with guaranties for the removal of women when the
labor shortage has been relieved in Akron. The international union
recognizes the post-war employment problem of women as a major
one—“as great a problem as the veterans.” However, one of its
officials declared: “if left alone the problem will resolve itself, on the
basis of seniority, better than if meddled with.”
Negro Workers
There has been a 15-percent rise in the general population in
Akron since 1940, but the Negro population lias increased over 500
percent.6 There has been a commensurate increase in Negro employ
ment in the rubber industry. Before the war, the few rubber plants
which hired_ Negroes (the Firestone Company was the only one which
hired them in any great numbers) employed them in unskilled menial
jobs, such as sweepers and elevator operators. Since the war Negroes
have been hired in production work, but more frequently they have
been given the heavy, less desirable jobs, such as mill-room work.
Although the colored workers are entitled to the privileges of
seniority and, like any white worker, can bid for vacancies, the actual
proportion of Negroes upgraded is very small. Several work stop
pages have occurred because white workers have objected to working
with them. White employees’ demands for segregation or for sepa
rate sanitary facilities have in no case been sanctioned by management
or union. The U. R. W. A. has consistently upheld the applica
tion of seniority without regard to race, color, or creed, and when
ever the transfer of a Negro into a hitherto white department is
contested by the white workers, the U. R. W. A. investigates and,
when necessary, disciplines the union members.
* Figures furnished by W ar M anpow er Commission for A kron area.
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Federal Reserve Bank of St. Louis
796
Monthly Labor Review—October 1944
Certain Negro leaders in Akron are asking that in the post-war
period Negroes be guaranteed a quota in the rubber industry. They
point out that if seniority is left to its normal operation, colored
workers will be largely excluded from post-war production and “will
not be permitted to play a part in building the peace.” This proposal
has not met with the approval of either company or union officials.
The latter see in it a source of great Negro-white conflict, and the
destruction of established seniority clauses.
C om pulsory A rb itratio n of L abor D isputes T em porarily
Decreed in C olom bia1
AN EXECUTIVE decree of July 28, 1944, provides for compulsory
arbitration of labor disputes in Colombia. The measure is to remain
in effect during the present emergency. Under its provisions, labor
disputes that have not been, or cannot be, settled by direct negotiation
or conciliation must be submitted to arbitration. In the latter event,
unless the parties to the dispute can agree upon a single arbitrator, the
tribunal is to consist of three members, one named by each of the
disputing groups and the third by the Minister of Labor, Hygiene, and
Social Welfare.
The names of these arbitrators are to be communicated to the
appropriate labor official within 12 hours after the signing of the
agreement for direct settlement or for conciliation. Within 8 days
after the installation of the arbitral body, the latter is required to
render its decision, and any extension of time can be granted only by
the Minister of Labor, Hygiene, and Social Welfare.
Until normal conditions are restored, employers in general are to
be restricted in their activities. Only previous authorization from the
proper labor official, or, on appeal, from the Minister of Labor, Hy
giene, and Social Welfare, exempts the employers from the regulatory
provisions. Under these restrictions, the employers are prohibited
from—
(1) Ceasing their activities or lessening them sufficiently to involve the dismissal
of 20 percent of their workers. If such actions, duly authorized, are taken, the
employees are to be paid any sums due them ; and when work is resumed, the dis
missed workers are to be reinstated if they appear w ithin 3 days after the an
nounced reopening.
(2) Discharging workers who belong to a union board of directors or who
have intervened as negotiators, spokesmen of their colleagues, or conciliators or
arbitrators in m atters connected w ith the same enterprise.
(3) Decreasing the am ount of salaries, wages, premiums, bonuses, or emolu
m ents w ith which they actually pay their workers; increasing the hours of work;
reducing in any way the loans they enjoy; and, in general, making working
conditions less favorable.
The duly authorized labor official must, if possible, obtain assistance
of one representative of the enterprise and one representative of
employees to decide the authorizations that should be sought in rela
tion to the dispute.
1 D a ta are from report b y W . E . D u n n , counselor for economic aflairs, U nited States Em bassy, Bogota,
Colombia, Ju ly 29,1944.
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Federal Reserve Bank of St. Louis
Industrial Disputes
Strikes in A ugust 1944
THERE were 485 strikes in August 1944, involving 190,000 workers
and 935,000 man-days of idleness, according to the Bureau’s pre
liminary estimates. ,
Strike activity in August was somewhat greater than in July.
Idleness in August was 0.12 percent of the available working time, as
compared with 0.09 percent in July and 0.05 percent in August a
year ago. It was proportionately less than in August during the
pre-war years of 1939, 1940, and 1941. Some of the larger strikes are
referred to below.
All figures in the following table exclude strikes lasting less than 1
day (or shift) and those involving fewer than 6 workers.
Strikes in August 1944, with Comparative Figures for Earlier Periods
•
Strikes beginning in
m onth
M an-days idle during
m onth (all strikes)
M onth
N um ber
W orkers
involved
N um ber
Percent of
a vailable,
working time
A ugust 1944 i___
Ju ly 19441___ _
485
470
190, 000
145, 000
935, 000
680,000
0.12
.09
A ugust
A ugust
A ugust
A ugust
A ugust
310
330
465
231
275
105, 601
92, 226
211, 515
61, 356
79,670
356, 510
448, 712
1,825, 488
706, 308
1,101, 419
.05
.07
.29
.13
.19
1943_______
1942 _____
1941______
1940 ____
1939________
1Preliminary estimates.
The midwestern truckers’ strike.—In February 1944, the National
War Labor Board issued an order directing a large number of trucking
companies in the midwestern area to increase hourly and mileage rates
for their over-the-road drivers, and outlining certain other terms and
conditions of employment that should become part of their contracts
with the union—the International Brotherhood of Teamsters, Chauf
feurs, Warehousemen, and Helpers of America (A. F. of L.). Over
a period of months the order was put into effect by most of the com
panies, but up to June approximately 100 companies, most of which
were members of the Midwest Operators Association, had failed to
pay the increases. They also had started temporary injunction pro
ceedings against, the National War Labor Board and the Director of
Economic Stabilization, claiming that payment was “economically
impossible,” and that the order had deprived them of their right to
bargain collectively with their employees.
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Federal Reserve Bank of St. Louis
797
798
Monthly Labor Review—October 1944
In June the drivers voted to strike under the War Labor Dis
putes Act, but a stoppage was averted when the NWLB scheduled
a hearing for the companies to show cause why the increases had
not been paid. Subsequent to the hearing, attempts were made by
many companies to work out plans for paying the increases, but
these were unsuccessful. On August 5 the men struck, gradually
tying up a large part of the over-the-road operations in several Mid
western States. On August 12 the Office of Defense Transportation
took over most of the companies, and 2 days later the men went back
to work. Under this arrangement, the wage increases directed by the
War Labor Board were paid, the temporary injunction having been
denied by a Federal district court. A few of the companies worked
out their own plans for payment and were returned- to private opera
tion. The others continued to operate under ODT direction.
Philadelphia Transportation Co. strike.— A' strike in protest against
upgrading of colored workers to operating positions halted Philadelphia
bus and streetcar transportation for about a week beginning August 1.
The National War Labor Board assumed jurisdiction, and recom
mended Government seizure of the properties in order to restore op
eration. Under Presidential order the United States Army took over
the lines on the third day of the strike.
The Transport Workers Union of America (C. I. O.), which had won
an election as the bargaining agency for the workers, was in process
of negotiating a new contract with the company, including a provision
for nondiscrimination. This was to supplant an expired contract
with the Philadelphia Rapid Transit Employees Union, which had
been defeated in the election—the old contract contained clauses dis
criminatory against Negroes. The Transport Workers Union
disclaimed all responsibility for the strike and charged that leaders
of the Philadelphia Rapid Transit group were among those active in
fomenting the dispute.
Immediately after Army seizure, the Department of Justice began
investigations to determine any liability under the War Labor Disputes
Act. The strike continued, however, through the sixth day. On
order of the Army, the majority of workers returned to work on
August 7, and a number of alleged strike leaders were discharged.
Army supervision of the system continued to August 18. Later an
agreement was reached on the proposed new contract. A Federal
grand jury was convened to investigate the underlying cause of the
strike. Its report, submitted early in October, indicated 30 employees
on charges of violating the War Labor Disputes Act. However, the
report also expressed the conviction that “the great majority of the
employees were not interested to strike on this basis” (that is, in
protest against upgrading of Negro workers).
Strike of coal-mine foremen.— A series of strikes in the Pennsyl
vania bituminous-coal mines began in August. The primary purpose
of these strikes was to obtain recognition for foremen and supervisors,
members of the United Clerical, Technical and Supervisory Employees
Union of the Mining Industry (a division of District 50 of U. M.
W. A.), but issues of wages, overtime, seniority, etc. were also involved.
Almost without exception, the strikes were preceded by votes of
foremen and supervisors, under the War Labor Disputes Act.
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Federal Reserve Bank of St. Louis
Industrial Disputes
799
Following the precedent set in the Detroit foremen’s case,1 the
National War Labor Board accepted jurisdiction over the dispute
with respect to all issues except recognition and discriminatory
discharges, and called union officers to a hearing in 'Washington to
show cause why the men did not go back to work.
In late August, officials of the U. M. W. A. appealed to the men to
return; but few responded and, with approximately 8,000 men idle,
the situation was so serious that the Secretary of the Interior was
directed by Presidential order to take over the mines then on strike.
Strike votes at additional mines continued throughout the month,
and in September the movement spread to West Virginia. The
NWLB appointed a panel to conduct hearings and inquiries on all
issues over which it had assumed jurisdiction.
A number of mines reopened on September 4, and others later;
but additional mines were closed after strike votes were conducted
by the National Labor Relations Board. At the end of September,
most of the mines involved were continuing under Government
operation, with the major issue-—union recognition—still unresolved.
’See M o n th ly L abor Review, Ju ly 1944 (p. 117).
6 1 0 0 5 4 — 4 4 -------- 9
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Federal Reserve Bank of St. Louis
Labor Laws and Decisions
R ecent Decisions of Interest to Labor 1
Labor Relations and Industrial Disputes
E F F E C T o f refusal o f u n io n to present grievance.-—T h e National
Labor Relations Board in a recent decision outlined the rights of
unions and individuals as to grievances, as follows: The representative
chosen by majority vote of an appropriate unit of employees has
exclusive bargaining power as to all employees respecting grievance
procedure, and is the exclusive representative of the individual em
ployee either in adjusting a grievance which involves interpretation
of the contract or in disposing of a complaint concerning a matter
not covered by the contract, because the latter amounts to bargain
ing about a condition of employment. No labor organization other
than that chosen by the majority has any right to act.
The individual employee with a grievance may appear on his own
behalf, but the employees’ exclusive representative is entitled to be
present and negotiate at each stage of the proceedings.
The existence of a collective-bargaining agreement prevents the
use by an individual employee or group of employees of any other
grievance procedure than that provided in the contract. Only when
the exclusive representative of the bargaining unit refuses to parti
cipate in the handling of a grievance may the employer meet an indi
vidual or group alone to deal with that grievance, and even in such
cases the procedure and adjustment must conform to the substance
of the union agreement.
The refusal of the employees’ exclusive representative chosen under
the National Labor Relations Act to present a grievance for an indi
vidual or group does not deprive the representative of its exclusive
right to conduct all bargaining for employees in the unit which it
represents. (I n re H ughes Tool Co., 57 N. L. R. B.—, Aug. 8, 1944.)
A p p ro p ria te bargaining u n it.— A s organization of life-insurance
agents has been developing on a State-wide basis, a unit restricted to
a metropolitan area was not considered appropriate by the National
Labor Relations Board (The N a tio n a l L ife cfc A ccid en t In su ra n ce Co.2
case). However, an election in one district office was directed in a
case in which the union (without fault on its part) had been deprived,
for nearly 1 years, of an opportunity to show its majority status in
the district (W estern & Southern L ife In s . Co., Case No. 225, 57
N.L. R. B .— Aug. 21, 1944).
1 Prepared in th e Office of the Solicitor, D ep artm en t of Labor. T he cases covered in this article represent
a selection of the significant decisions believed to be of special interest. No atte m p t has been m ade to reflect
all .recent judicial and adm inistrative developm ents in the field of labor law nor to indicate the effect of
particu lar decisions in jurisdictions in which contrary results m ay be reached, based upon local statu to ry
provisions, th e existence of local precedents, or a different approach b y the courts to the issue presented.
2- ~ N . L. R. B .
(Aug. —, 1944). Cf. John Hancock M u tu a l Life Ins. Co., 57 N . L. R. B. 115 (July 27,
800
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Federal Reserve Bank of St. Louis
Labor f,aws and Decisions
801
Representation decisions under contracts with automatic renewal
clauses.—The National Labor Relations Board held that an automatic
renewal clause in a contract would not bar representation proceedings
if the petitioning union gave notice of its claim of representation
prior to the automatic renewal notice date {In re Michigan Bumper
Corporation*). The same would hold true if no notice to terminate
was given, provided the petitioning union acted within a reasonable
time before the effective automatic renewal date {Columbus & South
ern Ohio Electric Co., 57 N. L. R. B. No. 1, Aug.—1944).
In a case in which a department covered by the contract was dis
continued in order to enlarge another department, and the contracting
union had not met with the employer for more than a year and evi
denced no interest in the employees, the Board decided that the mere
existence of a contract did not prevent it from determining represen
tation. {The Jaeger Machinery Co., 57 N. L. R. B. 113, July 26, 1944.)
In the Aluminum Co. of America case,4 although certification was not
followed by a contract, since it was not shown that the certified union
was inactive during the year, the Board refused to entertain a petition
for a new certification.
Eguivalents of intention with regard to unfair labor practices —
A decision of the National Labor Relations Board was approved by a
Federal appellate court on the theory that the effect of an employer’s
action as an unfair labor practice, rather than itsjpurpose, is decisive.
A brewery with a closed-shop agreement with its drivers had con
tracted for its hauling with an independent hauler who had a closedshop contract with a rival union. Since this forced the brewer’s
drivers, who found employment with the haulers, into the rival union,
the Board directed both the brewer and the hauler to take steps to
undo the results of this violation of the act. The hauler was held
involved because of his knowledge of the effect of his arrangement
with the brewer on the employees and on interestate commerce.
It made no difference that he was technically not an employer of the
brewer’s drivers. {National Labor Relations Board v. Glueck Brewing
Co., C. C. A. 8, Aug. 7, 1944.)
Reinstatement not ordered after discriminatort/1 discharge.—In view of
the present situation in war industry, an employer was not ordered
by the National Labor Relations Board to reinstate a union member
who had been discharged because of the employer’s antiunion preju
dice, as the employee had secured a better-paid position with a war
plant which had a closed-shop agreement with the union in which he
held membership. {Ihompson Products, Inc., 57 N. L. R. B. 151,
Aug. 4, 1944.)
Jurisdiction over intracity bus company.—In the case of Charleston
Transit Co.5 it was found that the busses of the company were used by
about a sixth of the workers going to and from plants in and around
the city and that the products of those plants moved in interstate
commerce. The bus company was therefore held to be covered by
the National Labor Relations Act.
Elections. —In Indiana Bridge Co., Inc.6 the National Labor Rela
tions Board held that as an election did not result in choice of a
¡¡57 N . L. R . B. 135 (Aug. 2, 1944).
4 57 N . L. R . B. 148 (Aug. 4, 1944).
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Federal Reserve Bank of St. Louis
5 57 N . L. R. B. —— (Aug. —, 1944).
6 57 N . L. R. B . ----- (July —, 1944).
802
Monthly Labor Review—Qctober 1944
majority representative, the Board’s policy of not directing another
election within a year was not applicable. In another case the Board
(.H arrison Steel C astings Co.7) set aside an election which was preceded
by hints from an important customer of the employer and the em
ploying company itself that the customer would withdraw its patron
age if the union won the election. This would have caused a reduc
tion in employment in a community where the company was the
principal source of employment. An election was also set aside
in a case in which the employer threatened before the election to
move the plant to another location, if the union won (Electric U tilities
Co., 57 N. L. K. B. 75).
High-school boys working during the summer were excluded from
voting in a representation election, in the absence of evidence show
ing that any of them planned to work beyond the school vacation
(U . S . Gyjpsum C o}).
In the case, I n re M a jo r A irc ra ft F o u n d ry ,9 the
Board ruled that a
decision as to representation should be made in spite of the employer’s
contention that contract cancelations and cut-backs made it un
certain whether he would remain in business.
Veterans'1Benefits
R eem ploym ent rights lost by contract: —A reserve officer had an em
ployment agreement terminable by either party on 6 months’ notice.
After the effective date of the Army Service Law of 1940, when called
to the service, he renewed this agreement “in all respects,” except
for certain irrelevant pay provisions. Later, while the officer was in
the service, the employer gave the 6 months’ notice. In declaring
the rights of the parties, in W right v. W eaver B ros., I n c .,10 the Mary
land District Court rejected the argument that the provisions of the
Army Service Law had the effect of cancelling out the termination
clause from the original agreement, and that therefore it was no part
of the renewal agreement. The court held that the officer was free
to and did renew his agreement in respect to the termination clause,
substituting his contractual for his statutory rights, and that, therefore,
the employer had lawfully terminated not only the employment but
the reemployment rights by giving 6 months’ notice under the renewal
agreement.
Civil Rights
Under the New York Civil Bights Law, the Kailway Mail Associa
tion, which has as one of its objects the promotion of the welfare of
railway postal clerks by improving their working conditions, but
operates chiefly as a beneficial association, is a “labor organization”
which may not deny any person membership by reason of race, color,
or creed (R a ilw a y M a il A ssociation v. Corsi11).
In the absence of a State statute regulating the subject, the Supreme
Court of California refused to compel a shipbuilder with a closed-shop
agreement to hire Negro members of a union auxiliary on an equal
basis with white union members, as the union bylaws placed Negroes
in an auxiliary and the employer was hiring under referral procedure
7 57 N . L. R . B. N o. 92.
8 57 N . L. R. B . -------(Aug. —, 1944).
» 57 N . L. R . B. — (July —, 1944).
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Federal Reserve Bank of St. Louis
>°----- "Atl. (2 d )----- (TTSDC. Ind.) (Aug. 15, 1944).
» — N . E . (2d) — (July 19, 1944).
I
Labor Laws and Decisions
by the union contract.
—
W J.1 W
803
The employer, though operating
u v u
J
VV 0 /i3
± ± C U JL
not to be engaging in the prohibited, discriminatory practices. The
court held that the absence of a State law left the union free to pre
scribe its own membership rules, and noted that the equal-protection
clause of the fourteenth amendment controls the action of State
governments and not of private persons and organizations (B lakeney
v. C alifornia S h ip b u ild in g C orporation 12).
Decisions Under State Labor Laws
Collective bargaining fo r m u n ic ip a l em ployees. —In N u tte r
of S a n ta M o n ic a 13 the California Superior Court, Los Angeles
v. C ity
County,
decided that under the California labor code requiring collective
bargaining the city was required, like any private individual, to
bargain with its bus-driver employees. This decision was based upon
the fact that (1) the operation of a bus system by a city is not a politi
cal and governmental activity dealing with a municipal affair but is a
proprietary and private activity, and (2) under the law of California
the organization of public employees is not unlawful.
M aintenance-of-m em bership clause upheld. —The Alabama Brad
ford Act provides that every person shall be free to join or refrain
from joining any labor organization. Reversing a previous opinion,
the Attorney General of Alabama held that the act was not in conflict
with a maintenance-of-membership clause, if the clause is limited in
its application to those who are members of a union when a contract
with the employer is executed and to those who are employed later
but become parties to the agreement through voluntary notice to
the employer that they accept its terms.14
U nions o f supervisory em ployees. —The policy of the National
Labor Relations Board not to recognize foremen’s unions (.M a ryla n d
D rydock, Case 49 N. L. R. B. 733) does not prevent the New York
State Labor Relations Board from determining the bargaining repre
sentative for supervisors, as a unit, in a plant engaged in interstate
commerce (A llegheny L u d lu m Steel Corporation v. K elley, — N. E.
(2d)----- , July 27, 1944).
The National Labor Relations Board had certified a representative
for rank-and-file workers but had not been asked by any foremen’s
union to designate a bargaining agent and had never acted in any way
in regard to this supervisory group. The State court to which the
case was taken thought that Congress had not intended to cover the
whole field of employment in these plants and, therefore, did not intend
to supersede or suspend the power of the States; hence the failure of
N. L. R. B. to exercise the full potential of regulation did not operate
to exclude the State from acting.
On the other hand, a court of Allegheny County (Pa.) upheld the
order of the Pennsylvania Labor Relations Board that a group of
supervisory employees, including instructors, district route foremen,
dispatchers and traffic dispatchers, is not an appropriate collective
bargaining unit. The court found the Board’s decision neither
12 — Pac. (2 d )----- (Aug. 7, 1944).
13 — Pac. (2 d )----- (Aug. 9, 1944).
14 A labam a D ep artm en t of Labor, A dm inistrative b ulletin No. 10, Ju ly 24, 1944.
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Federal Reserve Bank of St. Louis
804
Monthly Labor Review— October 1944
unreasonable nor arbitrary. (.Amalgamated Association <r
trie Railway, etc., Employees v. Pennsylvania Labor Relap
- *. ,
Discharge under dosed-shop contract.—Under a closed-shop con
tract, a worker who returned to work before the end of an illegal
strike was threatened with cancellation of union membership and
discharged. The court granted him an injunction against such
action, notwithstanding that he failed to appeal his case within the
union. The court’s decision was based upon the fact that the union
constitution provided no definite method of appeal and did not compel
union consideration of an appeal. In the course of its opinion the
court seemed to regard the employee’s union membership as a property
right, as under a closed-shop contract his membership affected his
right to hold-his job. (Loney v. Wilson Storage & Transfer CoA).
Liability of union to union member— A. union local secured discharge
of certain members under a union contract by representing that they
were not in good standing, but failed to proceed on charges against
them in accordance with union bylaws and thereby made unavail
able the procedure for appeals within the union. The court held that
the discharged employees might secure a court order compelling the
union to treat them as in continuous good standing and an order
directing the employer to rehire them. It ruled, however, that a
claim for damages against the union, based on knowledge and inac
tion by the general membership, could not be upheld if the claimants
did not in good faith try to obtain other employment. {O'Brien v.
Papas, 49 N. Y. Supp. (2d) 521.)
Travel time under State hours law.—That the Colorado statute, which
prohibits more than 8 hours’ work in 24 for miners underground, does
not conflict with a proposed agreement, providing for a 9-hour day
including 45 minutes’ compensated travel time and 15 minutes’ unpaid
lunch time, was the conclusion of a Federal court in instructing a
trustee to adopt the agreement of the Secretary of the Interior with
the United Mine Workers. The court noted that the Colorado statute
has always been interpreted as allowing 8 hours’ work on the face,
with‘out regard to other time spent underground, in travel, etc., and
without regard to the payment or nonpayment for such other time
{In re Rocky Mountain Fuel Co.17).
Employer not party to representation case.—Under the Rhode Island
Labor Relations Act, an employer is not a party to a representation
case, and in a later proceeding for refusal to bargain with the certified
union may urge that the Board made an error of law in its decision.
In McGee v. Local 682A the Rhode Island Supreme Court found that
an error existed by reason of the Board’s failure to decide that a union
which has an automatically renewable agreement loses the benefit of
the renewal clause by demanding a wage increase before the expiration
date and calling a strike to enforce its demand. In such a case the
employer may bargain with a rival union, without being guilty of an
unfair labor practice.
Back wages after discriminatory discharge.—The New York Labor
Relations Board in its annual report for 1943 indicates a change in
policy as to back pay in cases of discriminatory discharge. Formerly
it ordered payment of back wages from the date of discharge to the
15 — A tl. (2 d )---.
is —— N . W . (2 d )----- (C ircuit C t. S. D ak.) (June 29, 1944).
it ----- Fed. Supp. (2 d )------ (U. S. D. C „ ColcO (Aug. 5, 1944).
is 38 A tl. (2d) 303 (Sup. C t. R. I.).
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Federal Reserve Bank of St. Louis
Labor Laws and Decisions
805
establi'1 :\00^ reinstatement, minus any wages earned during the
.w . v.'V'im61*
new P°licy the Board will order payment of a
suhi equal what the employee would have earned between the date
of discharge and either the date of offer of reinstatement or the date
when equivalent employment was obtained, whichever occurred first,
minus any amount earned during the period so established. The
change will stop the practice of postponing the offer of reinstate
ment to an employee who holds a higher-paid position in order to
expand the credit for actual wages earned against the sum due.
Arbitration
In a case in which arbitrators acting under the Railway Labor Act
were unable, within the time stipulated, to agree on an award, and the
parties had not consented to an extension of time therefor, the belated
award was set aside by the court (Brotherhood o j B a ilw a y and S tea m
ship Clerks v. N o rfo lk Southern B y . Co A ).
War Labor Board Decisions
E lim in a tio n o f substandards o f living. —Regional War Labor Board
IX ordered a reduction of the workweek for food-store clerks and meat
cutters from 55 to 48 hours, not only because of intraplant inequalities
(under State law women received overtime for work beyond 48 hours,
but the men did not) but because the N. W. L. B. has construed the
President’s reference to substandards of living as covering not only
small earnings but also long hours. The Board further noted that
hours in excess of 48, even in wartime—and particularly where uncom
pensated by premium pay—are not approved by the Government or
industry g e n e r a l l y . {Denver, Colo. M a rkets and Food Stores, Case No.
111-5572-D, Regional Board IX, July 18, 1944.)
Reversing a regional board, the National War Labor Board decided
that the establishment of a guaranteed minimum of 50 cents per hour
to wipe out substandard earnings does not require an employee to be
paid 50 cents for each hour worked; the requirement is met if the
weekly wage represents at least 50 cents multiplied by the number of
hours worked. {P hilip Carey M a n u fa ctu rin g Co., Case No. 1113951-D.)
U n io n responsibility .— A. regional War Labor Board had refused to
grant a local union a maintenance-of-membership clause and check-off
provision because of a wildcat strike. The union claimed, however,
that it had ended the unauthorized stoppage promptly. This cir
cumstance and the fact that 10 months had passed, during which
the union had demonstrated its responsibility, led the National Board
to instruct that the regional order be reconsidered {A rm our F ertilizer
W orks, Case No. 111-3520-D, July 13, 1944). In granting a standard
maintenance-of-membership and check-off clause in the first contract
of a union which had struck a year earlier against an order allowing
similar privileges to a rival union, the Regional War Labor Board
took into account changes in union leadership, the union’s performance
during the probationary period, and the advantages of union security
in stabilizing relations in a situation in which four changes of union
allegiance had taken place in 6 years {Celanese Corporation o f A m erica,
Case No. 111-7403-D, July 22, 1944).
Fed. (2 d )----- (C. C. A. 4).
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Federal Reserve Bank of St. Louis
806
Monthly Labor Review—October 1944
Because a union struck in violation of its pledge, Regional War
Labor Board II withdrew the benefit of an agreement setting a
retroactive date for overtime pay. Overtime was approved only
from the date on which the strike ended (N ew Jersey Brewers A sso
ciation, Case No. 111-8744-D, Aug. 17, 1944).
In a decision affecting the C ram p S h ip b u ild in g Co.,20under a contract
for joint union-employer fixing of rates for an incentive plan, the
Shipbuilding Commission found that the union’s persistent refusal to
agree to lower rates had led to wage payments of a character markedly
inconsistent with the stabilization program and to excessive unit labor
costs. The Commission gave the company the sole right of final deter
mination of such special piece rates, reserving to the union the right
of discussion under short-cut grievance procedure, but not the right to
arbitrate or join in fixing the rates.
E nforcem ent o f W ar Labor B oard directives against a u n io n . —Strikes
of machinists in certain West Coast plants led to the seizure of the
plants by the Government. In connection therewith, the National
War Labor Board, subject to the requirements of the National Labor
Relations Act, cancelled the union’s contract clause compelling
preferential hiring of union members, placed the scheduling of vaca
tions in the hands of the Navy, and wiped out the provisions of the
agreement involving consent of the union local or its participation in
industrial relations under the contract (C alifornia M eta l Trades
A ssociation, Case No. 111-7566-D, Aug. 19, 1944).
In the case of a union which refused to obey an order of the National
War Labor Board, all the supplemental gasoline rations of its members
for travel to and from work were called in and cancelled by the
Office of Economic Stabilization (Directive, Aug. 15, 1944, as amended
Aug. 18, 1944).
A rb itra tio n and grievance procedures. —After the National War
Labor Board had directed arbitration of grievances and appointed an
arbitrator, the employer refused to obey the directive or to arbitrate.
The Board then defined certain types of grievances which might be
reported to it as disputes under the War Labor Disputes Act, and
directed the arbitrator to hold public hearings under that act as
agent of the Board, to settle these “ disputes” (M ontgom ery W ard &
Co., Case No. 11-5353-D, Aug. 21, 1944).
A collective agreement named the War Labor Board as final agent
to settle disputes on intraplant inequities. These grievances were
referred by the Board to a group of technical experts, and the action
was challenged because of a clause in the union contract, excluding
arbitration of such disputes. The Board decided that in executing
powers granted by the contract it acts in a process of “ compulsory
adjudication” and may select any method it chooses (Carnegie Illin o is
Steel Co., Case No. 111-5929-D, Regional Board III, July 25, 1944).
In the case of a union contract providing only for voluntary arbi
tration, the National War Labor Board reversed a directive changing
the contract to one for compulsory arbitration of grievances. How
ever, it reiterated its policy of settling referred disputes based on
minor grievances by assigning them to an outside arbitrator for
binding arbitration (A lu m in u m Co. o f A m erica, Case No. 111-2531-D,
July 5, 1944).
20 Decision of Shipbuilding Commission, Ju ly 21, 1944, published A ugust 4,1944.
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Federal Reserve Bank of St. Louis
Labor Laws and Decisions
807
C ontinuance o f contract p en d in g N . L . R . B . action. —The National
War Labor Board, to settle a dispute, directed that terms and con
ditions of an old agreement should continue in effect until further
notice (to be given after N. L. R. B. action) in a case in which the
refusal of the employer to negotiate a new contract involved the need
of N. L. R. B. action to decide on the proper bargaining agency (Fred
A . S n o w Co., Case No. 111-5597-D, June 29, 1944 21).
M iscellaneous. —A union contract which was self-renewing except
on notice (which had not been given) was held by a Regional War
Labor Board to be in effect, although no union members were em
ployed at the renewal date. The company had thereafter reemployed
two union workers {Sam uel B in g h a m ’s S o n M a n u fa ctu rin g Co., Case
No. 111-7692-HO, Regional Board III, Aug. 5, 1944).
Although allowing leeway for a union and employer to agree on
waiver of part of retroactive pay which the National War Labor
Board had approved, the Board refused to order such waiver on the
ground of an employer’s financial difficulties {Acm e Rubber M a n u
fa ctu rin g Co., Case No. 4149-CSD, May 27, 1944).
In spite of pending court action by ousted officials of a local to
enjoin new officers from acting (no injunction being asked against
the employer), the National War Labor Board ordered the employer
to turn over check-off funds to the new officers, accredited by the
international union, and to deal with them on grievances {W ilson &
Co., Case No. 111-9800-D, Aug. 24, 1944).
Social Security Laws
Exemption from the coverage of social-security legislation on the
ground that the taxpayer was an organization operated exclusively
for charitable, scientific, or educational purposes was denied in the
following cases for the reasons indicated:
A club incorporated to promote fellowship among those interested
in literature, science, and art was covered because it made available
living quarters and meals for its members {R ound Table Club v.
F o n te n o t 22) ; and a cemetery corporation, because it was not a public
charity {Lexington Cemetery Co. v. K e n tu c k y U. C.23). The American
Medical Association was refused exemption because, in opposing
group health service and in publishing advice to physicians relative
to compliance with social-security and income-tax laws in its Journal,
it demonstrated activity in the economic interest of its membership
which was not within its described scientific and educational purposes
{A m erican M edical A s s n . v. M u r p h y 24).
A va ila b ility fo r suitable w ork. —The Supreme Court of Minnesota
decided that, under the unemployment-compensation law of that
State, which denies benefits to those not available for suitable work,
refusal to accept a truck driver’s job did not deprive a boilermaker’s
helper of his right to compensation, since he had reason to believe he
would shortly obtain local work at his own customary trade. {Berthia u m e v. C hristgau, 15 N. W. (2d) 115.)
In tra -u n io n controversy not a labor dispute. —Under a Florida statute
excluding from unemployment compensation those out of work as
21 Cf Fuld and Hatch K niting Co., Case No 111-10070 D (Regional Board I I —Aug. 11,1944).
22 _ Fed. (2 d )----- (CCA 5).
23 — S. W . (2 d )----- (K y. Suprem e C t.).
24 — N . E . (2d) — (C ircuit C t., Cook Co., 111.).
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Federal Reserve Bank of St. Louis
808
Monthly Labor Review—October 1944
the result of a labor dispute, it was held that a discharge required
under a union agreement on notification by the union that a member
is not in good standing, did not bar payment of the compensation,
because a controversy between a union member and the president of
an international union is not a labor dispute under the act (H uerta v.
Regensberg cfc S o n s.25).
Tips as wages.— Tips received by waiters from customers under
the Wisconsin unemployment-compensation law constitute “wages”
upon which contributions must be paid, because the statute expressly
includes tips as wages. The statute is not unconstitutional and
cannot be taken to mean tips received from the employer only. (E rn st
v. In d u stria l C om m , o f W isco n sin .26)
Miscellaneous
F a ir Labor S tandards A c t. —The circuit court of appeals in Borella
v. B orden Co 27 decided that the Fair Labor Standards Act applied to
service and maintenance workers in a building which housed the
executive and administrative staff of a company producing milk
products for interstate commerce at other locations only.
L a w s licensing labor organizers. —An application for preliminary
injunction against enforcement of a city ordinance requiring labor
organizers to obtain a license was refused by the Federal district
court; an appeal from a criminal case involving the same organizer,
the same ordinance, and the same constitutional question was pending
in the State courts. (Starnes v. C ity o f M illed geville, — Fed. (2d)
----- (Dist. Ct., Georgia, July 31, 1944.) In the criminal case, the
city ordinance was later held unconstitutional.
D ecisio n s of B razilian Labor Court, 1 9 4 3 8
THE National Labor Council of Brazil, the highest labor court in
the country, considered 348 cases in 1943. Sixty percent of these
were rejected, and of the remaining 40 percent in which decisions
were rendered, 47 percent favored employees and 53 percent favored
employers. This labor court is composed of a commissioned president
and 18 members, 4 representing employers, 4 representing employees,
4 representing clerks of the Ministry of Labor, Industry, and Com
merce and subordinate social-security institutes, together with 6
persons of learning, all appointed by the President. The Council’s
juridical powers cover appeals on decisions of the Chamber of Labor
Justice and jurisdictional disputes between the Chambers of Labor
Justice and Social Security.
In addition to its work in full council, the National Labor Council
may function (with 9 members in each case) as a Chamber of Labor
Justice and a Chamber of Social Security. The Chamber of Labor
Justice received 528 cases in 1943. Of these, 11 percent were rejected
or subjected to further investigation, 50 percent were decided in favor
of employees, and 39 percent in favor of employers.
25— So. (2d) — - (C ircuit C t., Hillsboro Co., Fla.).
26 — N . W. (2 d )----- .
2? — Fed (2 d )----- (C C A 2) (July 28, 1944).
28 D ata are from report of Reginald S. Kazanjian, second secretary, U nited States Em bassy, Rio de
Janeiro, Ju ly 6, 1944 (No. 585); and Consolidation of Brazilian Labor Laws (Rio de Janeiro) 1944.
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Federal Reserve Bank of St. Louis
809
Labor Laws and Decisions
Brazilian labor law provides also for regional labor councils and
local boards of conciliation and judgment. Membership of a board
of conciliation and judgment consists of a president and two members,
one representing employers and one employees. Its duties include
the conciliation and judgment of disputes regarding employees’
permanency, remuneration, holidays, individual labor contracts,
and certain indemnities. In 1943 the 36 Brazilian boards of con
ciliation and judgment heard 24,302 cases. Of these, 11,650 (involv
ing about 11,000,000 cruzeiros29 were conciliated, 6,533 (involving
about 12,000,000 cruzeiros) were judged, and some 6,000 (involving
5,000,000 cruzeiros) were rejected.
Labor Inspection and L abor Court Decisions in
Chile, 1 9 4 3 30
THE General Labor Office of the Ministry of Labor of Chile carried
out 59,133 inspection visits during 1943. According to a press release
of the inspection division of the General Labor Office, these visits
were made to industrial, commercial, and mercantile establishments,
which employed 214,217 persons. In 1943, the inspection division
had some 280 inspectors assigned to various regions of the country;
their duties included investigation to check compliance with Chilean
law relating to possession of health certificates, and regulations on
hours of work, salaries, day of rest per week, and other conditions.
The data below indicate that in the 4-year period between 1940 and
1943, the inspection coverage was greatest in 1941.
Num ber of—
Inspections
Workers
1943
1942
1941
1940
__________________________
________________________
____________________
______ ___________________
59, 133
80, 453
91,116
85, 103
214, 217
259, 103
286,801
258, 413
The labor inspectors may make recommendations but have no
authority to take legal action. When complaints are filed, the prac
tice is to invite the employer to attend an informal hearing in the
inspector’s office. In 1943 such complaints numbered 29,451, and
14,710 of these were amicably settled. Of the remainder, 7,395 were
submitted to labor courts and 7,346 were withdrawn or dismissed.
Through the intervention of the labor inspectors, 6,432,098 pesos 31
owed to wage earners were collected and paid. Other activities of
the inspection division in 1943 included the distribution of 123,620,000
pesos in profit-sharing bonuses to 37,360 white-collar employees and
16,000,000 pesos to labor unions, as their share of profits under the
labor law.
In addition to handling the cases recommended to them by the
labor inspectors, the labor courts of Chile hear cases brought by indi
vidual wage earners regarding failure to pay dismissal allowances and
other benefits guaranteed by law. A solicitor attached to the in
spection division of the General Labor Office represents the division
29 Average exchange rate of cruzeiro in 1943—6 cents (official) or 5 cents (free).
29 D a ta are from report of D aniel L. Horowitz, senior economic analyst, U nited States E m bassy, Santiago,
Ju ly 25, 1944 (No. 366); and In d u strial Safety Survey (International L abor Office), O ctober-D ecem ber
1943.
Average exchange rate of peso in 1943=3.09 cents.
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Federal Reserve Bank of St. Louis
810
Monthly Labor Review—October 1944
in defense of its recommended complaints. The Government pro
vides no representation in cases otherwise brought, but a bar associa
tion, the College of Attorneys, gives some legal assistance to needy
workers. The labor courts received 35,339 cases in 1943. Some
8,600 decisions were rendered, and more than 23,000 cases were dis
posed of without the necessity of decision. Altogether the sum of
12,509,607 pesos was paid to wage earners as a result of court action.
W
W
W
Egyptian Law on Labor C ontracts 1
LABOR contracts between employers and individual workers in
Egypt are regulated by a law passed May 10, 1944, effective August
15, 1944. The law covers workers and employees of both sexes, but
its provisions do not apply to agricultural workers, casual workers,
dependent members of the family of the employer, persons working
in establishments not equipped with machinery and employing fewer
than five persons, officers and men of the merchant marine, per
manent State employees, or domestic servants.
The law provides that the labor contract may be verbal if wages
amount to less than 10 Egyptian pounds a month, but must be written
in. other cases. Labor contracts concluded between employers and
labor-recruiting officers must in every case be written, and the contract
must stipulate the kind of work, the wage rate, the approximate
duration of work, and the guaranties covering payment of wages at
the place of work. Wages of workers fixed by contract and wages
really paid may not difier by more than 10 percent. The cost of
transport of the workers from their Provinces to their place of work
must be paid by the employer. Persons engaged in labor recruiting
must have an authorization from the Department of Labor before
they can engage in this work, and the law provides safeguards for the
payment of wages and fixes the time limits within which workers
paid by the day and those paid for longer periods of time must be
paid.
Employers and recruiting agents may not require any worker to
purchase articles or merchandise produced or bought by them or to
purchase such articles in specified stores. Deductions from a worker’s
pay for breakage of tools or equipment may not exceed their actual
replacement cost, and not more than 5 days’ wages may be retained
for this purpose in any one month. An employer may not require a
worker to do any work other than that for which he was engaged,
except to prevent or repair the results of an accident, or in cases of
force majeure. Contracts for indefinite periods of work may be
terminated by either party if due notice is given. Penalties are fixed
for both workers and employers for breaking the contract without
giving proper notice, and penalties for various infractions of rules are
specified or limited.
Employers are required to provide medical services for their employ
ees. If more than 100 workers are employed, a doctor must be
engaged to visit them, and medicines must be provided free. Employ
ers are also required to pay half of the wages of a worker who is sick
■,n.PataJalefrom,report by K- L- Rankin, commercial attaché, American Legation a t Cairo, dated M ay 29,
1944, and Journal du Commerce et de la Marine (Cairo), May 20, 1944.
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Federal Reserve Bank of St. Louis
Labor Laws and Decisions
811
for a maximum of 30 days a year. Workers employed by the day
are entitled to 7 days’ vacation with pay a year, or to 10 days’ vaca
tion if employed on unhealthful or dangerous work; workers and
employees paid by the month are entitled to 15 days’ vacation a year.
Labor matters in Egypt are under the jurisdiction of the Labor
Department. This Department was started as a labor office in 1930
in the Ministry of the Interior, but was raised to the status of a
Department in 1935, and in 1939 was placed under the jurisdiction
of the Ministry of Social Affairs.
FCmyiCTORY
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Federal Reserve Bank of St. Louis
BUY
UNITED
STATES
WAR
BONDS
AND
STAMPS
Housing Conditions
New Dwelling U nits in N onfarm Areas, F irst 6 M onths
of 1 9 4 4 1
Summary
FEWER than 100,000 new nonfarm family dwelling units were put
under construction during the first half of 1944, as compared with
200,000 during the first half of 1943 and 368,000 during the first half
of the best year, 1941. Although residential construction is now at
the lowest level since 1934, some further decline may be expected.
Of the 97,100 dwelling units started during the first half of 1944,
over four-fifths (79,900) were privately financed, as compared with
about two-fifths (85,800) of the 200,200 dwellings started during the
same months in 1943. Publicly financed housing projects for which
construction contracts were awarded during the first half of 1944
provided new accommodations for 17,200 families, chiefly in tempo
rary-type structures; this was only one-seventh as many as were
put under contract housing projects during the first half of 1943, when
the Federal war housing program was at its peak. In addition to
this new construction, Federal contracts were awarded during the
first half of 1944 for projects to contain 300 converted family dwelling
units, 3,300 dormitory units, and 13,200 trailers.
Of the 79,900 private family dwelling units upon which work was
started during the first half of 1944, 61,100 were started under the
private war housing program of the National Housing Agency. This
brought the number of units begun since 1941 under this program to
467,200, of which 398,900 units had been completed and 68,300 units
were under construction, at the end of June 1944. At that time
Federal war housing projects available for occupancy or under con
struction contained 504,300 family dwelling units, 152,000 dormitory
units, and 41,500 trailers.
The valuation of the 97,100 new nonfarm family dwelling units
begun during the first half of 1944 is estimated at $273,400,000; the
corresponding figure for the first half of 1943 was $489,100,000. Since
permit valuations of privately financed units commoidy understate
actual building costs, it is estimated that construction of the new
units in 1944 will involve expenditures of approximately $309,000,000.
Scope of Report
The above estimates cover the construction of all new family
dwelling units in the nonfarm area of the United States. The "nonfarm area” of the United States consists of all urban and rural non1 Prepared in the B ureau’s Division of C onstruction and Pubiic E m ploym ent by George Schumm.
812
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Federal Reserve Bank of St. Louis
Housing Conditions
813
farm places. The urban designation is applied to all incorporated
places with a population of 2,500 or more in 1940, and, by special
rule, to a small number of unincorporated civil divisions. Kural
nonfarm construction includes all construction for nonagricultural
use in unincorporated areas and incorporated places of less than 2,500
population. - Hence, urban construction is classified by location,
whereas rural nonfarm construction is classified according to the
intended use of individual buildings.
Building-permit reports collected by the Bureau of Labor Statistics
have provided the basic information for current estimates of residen
tial construction. The Bureau began the regular collection of these
data in 1920, at first including only the larger cities. Since that time
coverage has been steadily expanded until it now includes more than
2,400 cities and 1,000 rural incorporated places. In addition, since
1939, a small number of counties have reported building permits
issued for their unincorporated areas. Valuable supplementary data,
particularly with respect to rural construction, were made available
for the period January 1940 through August 1942 by the Defense
Housing Survey, a joint enterprise of the Bureau of Labor Statistics,
the National Housing Agency, and the Work Projects Administration.
Since building permits are issued when construction work is about
to start, estimates derived from permits represent the future dwellingunit capacity of buildings upon which construction was started in the
period specified. No attempt is made here to estimate the number
of family accommodations gained by alterations and conversions or
those lost by demolitions.
Volume of Residential Construction
With both the privately and publicly financed war housing pro
grams nearing completion, the volume of new nonfarm family dwell
ing units started during the first half of 1944 was the lowest since
1934. Fewer than 100,000 new units were started, as compared to
200,000 during the first half of 1943 and 368,000 during the first half
of the peak year 1941.
The volume of new privately financed units has remained almost
stationary for over 2 years except for seasonal fluctuations. Only 7
percent fewer units were started during the first half of 1944 than
during the same months of the previous year. Since April 1942,
when the War Production Board issued conservation order L-41
halting all nonessential construction, the major part of the new
private units have been started under the private war housing program
of the National Housing Agency. During the first half of 1944,
61,100 units, or 76 percent of all new private units, were started
under this program. The remainder consist, for the most part, of
rudimentary dwelling units costing only a few hundred dollars apiece 2
and of units built to replace those destroyed by fire, flood, or other
catastrophe wdiere nonreplacement would constitute a hardship.
At the end of June, there had been started since 1941, under the
private war housing program, 467,200 new family dwelling units, of
which 398,900 had been completed and 68,300 were under construc
tion. Some 55,700 additional units were scheduled under this program
2 See Construction of $500 H ouses in 1943, in M onthly L abor Review, December 1943 (p. 1058).
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814
Monthly Labor Review—October 1944
but were not yet started. It should be pointed out that these data are
based on builders’ reports of construction progress and consequently
are not strictly comparable with estimates based on building permits
issued.
In contrast to the even level of private residential activity, the
17,200 publicly financed dwelling units placed under construction
contract during the first half of 1944 were only about one-seventh of
the total for the same months of last year. The 1944 total is the
smallest number of publicly financed units put under contract during
any similar period since 1938. The volume of public housing may be
expected to decline even more this year. At the end of June, only
9,500 family dwelling units assigned for construction were not under
contract.
In addition to the new family dwelling units, Federal construction
contracts were awarded in 1944 for projects to contain 300 converted
family-dwelling units, 3,300 dormitory units, and 13,200 trailers. By
the end of June, Federal war housing projects available for occupancy
or under construction contained 504,300 family dwelling units, 152,000
dormitory units, and 41,500 trailers.
Comparison by Population Groups
Not only was the volume of new units in the first half of 1944 much
below that of the first half of 1943, but the locations and sizes of porjects were materially different. During the first half of 1943, 16
Federal projects of 1,000 or more units each, providing in aggregate
almost a fourth of the public total for the period, were placed under
contract. In the first half of 1944, only one Federal project as large as
1,000 units was placed under contract. For these larger proj ects it was
often not feasible to utilize sites within urban areas. Also, by 1944,
most of the housing had been provided for those isolated war-activity
centers where construction of virtually entire communities had been
necessary. Consequently, rural nonfarm units, which in 1943 con
stituted over two-fifths of the total, in 1944 accounted for less than a
third of the new units.
The shift to urban locations was most noticeable in the case of
public units. During the first half of 1943, about half of the public
units were in rural nonfarm areas, as compared to about a third in 1944.
The number of privately financed units in rural nonfarm areas also
decreased relatively more than did the number located in urban areas,
14 percent as compared to 3 percent.
The number of new units in all city-size groups fell off sharply dur
ing the first half of 1944 as compared with 1943. Declines between
the two periods varied from 26 percent for cities with 2,500 to 5,000
population to 67 percent for cities in the 50,000 to 100,000 population
class. Over half of both the new private and new public units were
located in cities of over 100,000 population in 1944 as compared to
less than half in 1943.
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Federal Reserve Bank of St. Louis
815
Housing Conditions
T able 1.— New Dwelling Units in Nonfarm Areas, First 6 Months of 1943 and 1944,
by Population Group, Source of Funds, and Type of Structure
New dwelling units financed b y —
T otal new dwelling
units
Public funds 1
P rivate funds: All
types
Area and population group (1940 census)
F irst 6 m onths of —
1944
1943
1944
1943
1944
1943
All nonfarm areas___________
Percent of change, 1943 to 1944
97,100
-5 1 .5
200, 200
17, 200
-8 5 .0
114, 400
79,900
- 6 .9
85, 800
U rban (cities)______________
500,000 and over................
100.000- 500,000________
50.000- 100,000________
25.000- 50,000__________
10.000- 25,000__________
5.000- 10,000__________
2,500-5,000______________
R ural nonfarm areas-------------
64, 500
14, 600
19,100
4, 400
5,100
10,400
6,000
4,900
32, 600
113, 200
20,800
26,300
13, 500
11,000
22,900
12,100
6,600
87,000
11,100
2,200
3, 500
600
600
2,400
1,100
700
6,100
58,300
10,000
11, 700
8,000
6,000
14, 300
5,800
2, 500
56,100
53.400
12.400
15, 600
3,800
4, 500
8,000
4, 900
4,200
26, 500
54, 900
10, 800
14, 700
5,500
4,900
8,600
6, 300
4,100
30, 900
New dwelling un its financed by private funds, by type of
structure
1-family
2-family 2
M ultifam ily 3
All nonfarm areas___________
Percent of change, 1943 to 1944
65, 300
-0 .6
65, 700
6,300
-1 8 .1
7,700
8, 300
-3 3 .1
12,400
U rban (cities)______________
500,000 and over_________
100.000- 500,000________
50.000- 100,000.......... .......
25.000- 50,000__________
10.000- 25,000__________
5.00010,000__________
2,500-5,000______________
R ural nonfarm areas-------------
40, 300
8, 900
11, 300
2,700
3,100
6,200
4,200
3,900
25,000
37,100
5,900
9,500
3,300
3,200
6.700
4.700
3,800
28, 600
5,900
1,700
1,500
700
300
1,100
400
200
400
7,300
2,000
2,200
600
800
800
800
100
400
7,200
1,800
2,800
400
1,100
700
300
100
1,100
10, 500
2.900
3,000
1,600
900
1,100
800
200
1.900
1 C ontract values.
2 Includes 1- and 2-family dwellings w ith stores.
1 Includes m ultifam ily dwellings w ith stores.
Comparison by Geographic Divisions
The increasing concentration of new family dwelling units in cer
tain geographic areas became even more pronounced during the first
half of 1944. Over three-tenths of the new units during this period
were in the Pacific States, while three other regions (the East North
Central, South Atlantic, and W est South Central) each accounted for
at least a sixth of the total. The remaining five regions had 17 per
cent of the new units. In the first half of 1943 there were only two
regions—the Pacific and the South Atlantic—with as many as onesixth of the new dwelling units each, while in 1944 there were four
such areas. The five regions accounting for 17 percent of the new
units during the first 6 months of 1944 contained well over a fourth of
the new units during the same period in 1943.
The number of publicly financed units declined sharply in all re
gions from the first half of 1943 to the same period of 1944. In both
periods, about half of the public units were the South Atlantic and
Pacific States. Shifts in geographic locations of new private units
610054— 44—
10
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Federal Reserve Bank of St. Louis
816
Monthly Lahor Review— October 1944
were more marked than in the case of public war housing; decreases
of as much as two thirds in the New England and Middle Atlantic
States were almost offset by an increase of over a third in the West
South Central States and one of nearly 100 percent in the Pacific
States.
Over 20,000, or almost a third of the private 1-family units put
under construction during the first half of 1944, were in the Pacific
States. This was almost double the number of such units started
during the same months of 1943 in these States. The number of
both 2-family and multifamily units started by private builders in
this area also increased, the former from 1,000 to 2,100 units and the
latter from 2,000 to 3,300 units. The decline in the number of
multifamily units in the South Atlantic States—4,100 units—between
the first half of 1943 and of 1944 was equal to the decline for the
whole country.
T a b l e 2. —New Duelling Units in Nonfarm Areas, First 6 Months of 1 9 4 3 and 1 9 4 4 ,
by Geographic Division, Source of Funds, and Type of Structure
N ew dwelling units financed by—
T otal new dwelling
un its
Public funds 1
Geographic division
P rivate funds; all
types
F irst 6 m onths of—
1944
1943
1944
1943
1944
1943
All divisions. ______________________ .
97,100
200, 200
17, 200
114, 400
79,900
85, 800
N ew E ngland____ _ _ _ _ _ _ _
M iddle A tla n tic .. ______ _______ .
E ast N o rth C entral _ . . . . . . .
W est N o rth C entral. _______ . . . . . .
South A tlantic . . ________ _ .
E ast South C entral ._ ______ _____
W est South C en tral________ ______ . . .
M o u n tain _________ _______
Pacific_______ _________ . .
1,100
3,900
17, 900
2,500
10, 200
5,300
16, 100
3, 600
30, 400
6,700
19, 700
32.100
6,600
40.100
7, 000
22, 700
13, 400
51, 900
(3)
700
3,000
400
4,100
1, 400
2, 300
1, 000
4, 300
3,400
9,800
15, 000
3, 500
18,900
3,200
12, 700
10, 600
37, 300
1,100
3,200
14,900
2,100
12. 100
3, 900
13,800
2, 600
26,100
3, 300
9, 900
17, 100
3,100
21, 200
3, 800
10, 000
2,800
14, 600
N ew dwelling un its financed b y private funds, b y type of
structure
1-family
2-family i
All divisions_______________ _________
65, 300
65, 700
N ew E ngland. _. . __________
M iddle A tla n tic .. ...... .......... . . .
E ast N o rth C en tral______ _______ ___
W est N o rth C entral ________ ____
South A t l a n t i c .. . _______________
E ast South C entral . . . . ____
W est South C e n tra l._. ___________ .
M ountain .
_________ _ .
Pacific____ ___________ _____ _ .
1, 000
2, 300
11, 700
1, 600
10, 200
3, 800
11, 700
2,200
20, 700
2, 500
7,400
13, 500
1, 800
14, 200
3, 400
9, 000
2, 300
11, 600
M ultifam ily 2
6, 300
7,700
8, 300
12,400
(3)
100
1, 600
1, 800
700
1, 600
200
500
200
1,000
100
300
1,100
500
1,300
700
900
1, 800
600
5, 400
200
500
300
2,000
600
2,100
(3)
600
100
700
100
2,100
(3)
1,400
300
3, 300
1 I n c lu d e s 1- a n d 2 -fa m ily d w e llin g s w it h sto res.
2 I n c lu d e s m u ltifa m ily d w e llin g s w it h sto res.
3 L e s s th a n 50 u n it s .
Estimated Permit Valuations
The estimated valuation of the 97,100 new nonfarm family dwelling
units started during the first half of 1944 aggregated $273,000,000,
or over half of the $489,000,000 estimated for the 200,000 units begun
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Federal Reserve Bank of St. Louis
817
Housing Conditions
during the same months in 1943 (table 3). Of the 1944 total, the
79,900 privately financed units were valued at $231,000,000, account
ing for 85 percent of the total. In 1943, the value of the 85,800 units
started by private builders aggregated $250,000,000 and accounted
for only slightly over half of the total. The average valuation of the
new private units was about the same in both 1943 and 1944. The
average value of the public units, however, was almost a fifth higher
than in 1943, as a result of the larger proportion of permanent rather
than temporary-type dwellings.
When comparing the private and public valuations shown in table
3, allowance must be made for the general understatement of con
struction costs by private builders when applying for building per
mits. After allowing 15.5 percent for this understatement, it is
estimated that construction of the 97,100 units started thus far in
1944 will cost approximately $309,000,000.
T a b le 3 —Estimated Valuation of New Duelling Units in Nonfarm Areas, First 6
Months of 1943 and 1944, by Geographic Division, Source of Funds, and Type
[I n m illio n s o f d ollars]
Valuation, new dwelling units financed
by—
T o tal valuation,
all new dwelling
u n its
Geographic division
P ublic funds
(contract am ount)
P rivate funds:
All types (perm it
valuations)
F irst 6 m onths of—
1944
All divisions
___ _______
________
New England
__ _________________
1VTid die A tlantic
_ _ _________________
E ast N orth C entral _ _
_____
W est N o rth C entral _ ________________
South A tlantic
_____________
E a st South C entral _______ ___________
W est South C entral
_____
_____
M ountain
__________ ____ ____ ____
Pacific
_________________ __________
1943
1944
1943
1944
1943
273.4
489.1
42.7
239.5
230.7
249.6
4.1
13.0
70.7
0.8
38.7
10.7
30.5
9.5
89.4
20.0
57.1
103.6
14.6
95.4
11.9
39.4
30.9
116.2
.2
2.3
8.4
.9
10.7
4.0
5.4
2.3
8.5
7.3
25.0
35.8
6.9
41.2
5.3
20.6
23.7
73.7
3.9
10.7
62.3
5.9
28.0
6.7
25.2
7.2
80.8
12.7
32.1
67.8
7.7
54.2
6.6
18.8
6.1
42.5
P erm it valuations, new dwelling units financed b y private
funds, b y ty p e of structure
All divisions-------------- ------ ------------------N ew E ngland
_____ ___ _______ -M iddle A tlantic _______ _____ _____ _
E a st N o rth C e n t r a l._________
_ __
W est N orth Central ___ _ __ __ ___
South A tlan tic. _ _ ______ ______
E ast South C entral
________________
W est South C entral
_____________ ___
M ountain _ __ _ _________ _____ ____
Pacific
_______________ _________ --
185.7
3.7
8.2
48.4
4.2
22.5
6.4
20.7
6.1
65.5
1 I n c lu d e s 1- a n d 2 -fa m ily d w e llin g s w it h sto res.
2 I n c lu d e s m u ltifa m ily d w e llin g s w it h sto res.
3 L e s s th a n $50,000.
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Federal Reserve Bank of St. Louis
M ultifam ily 2
2-family i
1-family
197.7
10.3
25.2
56.1
4.9
37.0
5.8
17.2
6.0
35.2
21.1
20.5
23.9
31.4
(s)
1.9
9.5
.1
1.6
.2
1.6
.2
6.0
.4
4.8
5.9
1.5
3.8
.4
.8
.5
2.4
.2
.6
4.4
1.6
3.9
.1
2.9
.9
9.3
2.0
2. 1
5.8
1.3
13.4
.4
.8
.7
4.9
Education and Training
V ocational T raining, 1 9 4 0 - 4 4
Training Courses to Relieve Shortages in War Industries 1
SINCE December 1940, 1,249,973 persons have taken 33,770 courses
approved by the Engineering, Science, and Management War Training
program (ESMWT) of the U. S. Office of Education. These courses
have been given by 224 colleges and universities in conjunction with
at least 15,000 different industrial establishments to relieve specific
shortages in war industries and the armed forces.
There are two types of courses, the full-time and the part-time,
with the latter constituting the great majority. In the 1944 program,
the part-time courses average 72 contact-hours in length (i. e., hours
in which the teacher meets the students in class and laboratory,
but not including study periods). Some full-time courses, however,
meet for as many as 800 or 900 contact-hours.
Before any course is approved by the ESMWT, a careful study is
made of the area in which those completing the study would be
employed. Industry needs in that region are surveyed, and, through
conferences between responsible school officials and representatives of
the industry concerned, the necessary training is determined. To
be approved by the ESMWT, the institutional representative—usually
a dean or a financia! officer of the school—has to certify that the
need for the subject is great, and that employment possibilities are
excellent.
In addition to establishing a need for the training, the institution
must see that the course is at the college level. This requires that
enrollees must have had a high-school education or its equivalent
and that the instruction be comparable with that usually offered to
regular college students. Quite naturally there is a wide variation
among the types of students in the several classes. Although some
courses are taken by individuals who barely satisfy the educational
requirements, other courses enroll some persons whose educational and
professional attainments are far above the average. For example, in
the course on statistical methods applied to quality control, many
industrial executives are enrolled.
At first the training was conducted largely on the campus of the
college or university that was offering the course. However, with
the growth of the program, and with wider acceptance and apprecia
tion of the training by representatives of industry, the schools have
found it advisable to organize courses very near, or actually in, the
war plants from which their enrollments were drawn. Thus, Purdue
i Data are from the Engineering, Science, and Management War Training program of the U. S. Office of
Ikaucation.
818
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Federal Reserve Bank of St. Louis
Education and Training
819
University at Lafayette, Ind., has organized “off-campus” courses
to meet war training needs at South Bend, Indianapolis, and dozens
of other Indiana cities and towns. Similarly, other institutions,
including Alabama Polytechnic Institute, the University of California,
the Georgia School of Technology, the University of Kansas, Ohio
State University, and many others, have operated widespread offcampus training centers, situated wherever they could best serve
war training needs. The Pennsylvania State College, for instance,
has conducted training almost simultaneously in more than 150
Pennsylvania towns.
F rom such arrangem ents has grown the system now predom inantly
followed, in which the em ployers of th e trainees provide space for
classes, su b stan tial quantities of th e necessary instructional equip
m ent, overtim e p ay for th e trainees, and, often, qualified engineers
or technical m en who m eet requirem ents and are em ployed as p a rttim e in structors. T h e design and supervision of th e courses, under
such circum stances, rem ain, of course, w ith th e sponsoring college
or university.
Increasingly, em ployers are sending groups of new employees to
college u n d er E S M W T before assigning them to production duties.
Illu stra tiv e of this tren d are th e program s of the G rum m an A ircraft
M an u factu rin g Co. and the W right A eronautical C orporation th a t
send sizable groups of employees to full-tim e training courses at
colleges aw ay from the plant, w ith full p ay and no o th er duties.
ENROLLMENTS, BY COURSES
From December 1940, when the first program was started, to July
1944, new enrollments and re-enrollments totaled 1,558,123, and were
found in 18 types of courses. The greatest number of students
(302,697) were in production supervision, while the fewest (184) were
enrolled in ceramic engineering, a subject that was given only the first
year. The following tabulation indicates the number of students in
each type of course approved by the ESMWT and its predecessors,
during the period, 1940-44.
Enrollment
All courses-------------------------------------------------------------- l, 558 , 123
Aeronautical engineering_________________________
Architectural engineering_________________________
Basic science for engineers________________________
Ceramic engineering1_____ _______________________
Chemical engineering_________________ ___________
Civil engineering_________________________________
Electrical engineering____________________________
General engineering______________________________
Industrial engineering2___________________________
Marine-engine and naval architecture______________
Mechanical engineering___________________________
M etallurgical engineering_________________________
Mining engineering___________ __________________
Other engineering________________________________
Courses for instructors___________________________
Chem istry_______________________________________
Physics_________________________________________
Production supervision3__________________________
1 G iv e n in 1940-41 o n ly .
* R e la t e d to p r o d u c tio n s u p e r v is io n b u t g iv e n m a in ly in e n g in e e r in g sc h o o ls .
3 G iv e n la r g e ly in n o n e n g in e e r in g s c h o o ls.
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Federal Reserve Bank of St. Louis
134, 587
8, 237
79, 106
184
42, 624
61, 925
209, 252
187, 965
155, 353
34, 9o7
156, 177
57, 188
1, 581
4, 985
8, 621
31, 507
25, 764
302, 697
Monthly Labor Review—October 1944
820
Production supervision has shown the greatest increase. Courses
in this subject have expanded in number from 1,072 in 1941-42 to
2,903 for the year ending July 1, 1944. This increase is due to the
growing realization, upon the part of industry, of the need for and
possibility of having supervisory training in the plants. _
In the last 2 years, there has been a marked change in the type of
background from which the trainees have come. When the program
was started in 1940, the majority of the enrollees were unemployed
and were preparing themselves for defense work and, later, for war
work. More recently, most of the students have been what may be
called “in-service” trainees; they were already employed in industry,
and were taking training while on the job. At present, approximately
and were taking training while on the job. At present, 90 percent
of those enrolled are taking courses designed to prepare them for a
different type of work or for upgrading in their present occupation.
Although there are no up-to-date statistics regarding the number of
students who finished their courses, a study of 2 years ago indicated
that between 60 and 70 percent of the enrollees completed the pre
scribed work. This compares favorably with the proportion of suc
cessful completions in high school and college, and considerably ex
ceeds the proportion of correspondence-school students who complete
their courses. This favorable comparison is partly explained by the
fact that the goals, both financial and occupational, are more imme
diate and tangible for those enrolled under the ESMWT program
than is usual with high-school, college, or correspondence-course
students. At the same time the very immediacy of those goals or
the lure of other and more lucrative employment'has, no doubt,
caused many of the training enrollees to discontinue their courses
before they have been completed.
v eter a n s’ enrollm ents
With the continuation of the war, another group of students has
been and will become of increasing significance, namely the discharged
veterans. The first ESMWT statistics on veterans, for July 1943,
showed 31 enrolled, or 0.39 percent of all trainees. In June 1944,
veterans enrolled numbered 1,001 or 3.44 percent of all trainees.
The 10 courses with the highest enrollment of veterans are shown
below.
E n r o llv
m en t
M athem atics (basic sciences for engineers)----------------------------- 367
Industrial organization and m anagem ent------------------------------ 357
Personnel adm inistration and labor_________________________ 319
Com m unications___________________________________________ 310
Engineering drawing and descriptive geom etry---------------------- 304
Accounting________________________________________________ 253
Production engineering_____________________________________ 238
Structures (aeronautical engineering)------ ------------------------------ 230
Electronics_______________________________________________ 182
Safety___________________________________________________ 133
TRAINING OF WOMEN 2
Over 2 million women, of various ages, have been trained under
public vocational and college war-training programs carried on in the
2 D a t a are from W a r M a n p o w e r C o m m is sio n , P r e s sr e le a s e (W a s h in g to n ), M a y , 12,1944.
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Federal Reserve Bank of St. Louis
Education and Training
821
48 States, in Hawaii, and in Puerto Rico. Their enrollments from
July 1, 1940, to March 31, 1944, were distributed as follows:
Enroll
ment
T otal women receiving training__________________________________
2, 461, 943
In public vocational schools under program of vocational training
for w ar production workers_____________________________________ 1, 136, 576
In food war production training courses___________________________
678, 379
In engineering, science, and m anagem ent war training courses in
colleges----------------------------------------------------------------------------------230, 411
In training-w ithin-industry courses_______________________________
160, 000
In the N ational Y outh Adm inistration courses (NYA discontinued in
1943)------------------------------------------------------------------ ------------------256,577
Of the total enrollments of women in vocational courses, the largest single
number, 484,254, was in programs providing training in occupations required in
the production of aircraft. Enrollments of women in machine-shop occupations
totaled 198,871, and in shipbuilding occupations the enrollments am ounted to
115,054.
Of the 230,411 enrollments of women in college-level courses under the engineer
ing, science and m anagem ent war training program, 19 percent were in engineer
ing drawing and similar subjects applicable to m any types of war production
jobs. The rem ainder of the enrollments in college courses were in such subjects
as personnel and labor relations, inspection and testing, communications, engi
neering fundam entals, and industrial organization and management.
Women who have been trained under training programs financed
by the Federal Government are now doing nearly every type of war
work. Many women who became trainees shortly after training pro
grams were inaugurated are now veteran employees and, in many
cases, have important supervisory jobs.
All Types of Vocational Training, 1933-43 3
For the year ended June 30, 1943, a decline of 329,326 was reported
as compared to the preceding year, in total enrollments in all types of
vocational-education schools and classes conducted under Federal
grants. This decline is explained by war conditions and the necessary
adjustments of both adults and children to changes resulting from
these conditions.
For 1943 the expenditures of Federal, State, and local money for
vocational education—salaries of teachers, teacher trainers, super
visors, and directors of vocational education—totaled $63,502,396 of
which $20,305,381 was Federal money and $43,197,015 was State and
local money.
The accompanying table gives the enrollments in vocational
schools and classes from 1933 to 1943 inclusive, the peak enrollment
for the years listed being 2,629,737 in 1942.
3
D a t a are from U . S. O ffice of E d u c a tio n , D ig e s t of A n n u a l R e p o r ts o f S ta te B o a r d s for V o c a tio n a l E d u c a ,
tio u to th e U . S. O ffice of E d u c a tio n , V o c a tio n a l D iv is io n , for th e fisca l y e a r e n d e d J u n e 30,1943 (W a s h in g to n )
1944.
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Federal Reserve Bank of St. Louis
Monthly Labor Review—October 1944
822
Enrollment in Vocational Schools or Classes, by Years, 1933-43 1
T o ta l
A g r ic u l
tu re
Y ear
N um ber
T rad e and
in d u str ia l
H om e
e c o n o m ic s
In c rea se
1943 2__________________________
1942____________________________
1941____________________________
1940____________________________
1939____________________________
1938____________________________
2, 300, 411
2, 629, 737
2, 429,054
2, 290, 741
2,083, 757
1,81 0 ,0 8 2
3 329, 326
200, 683
38, 313
206,984
273, 675
313, 245
492, 932
610, 050
596, 033
584,133
538, 586
460, 876
618, 471
850, 597
804, 515
758, 409
715, 239
685,804
874,342
954, 041
871, 891
818, 766
741, 503
627, 394
1Q37
1936
1Q3fi
1934
1933
1,496, 837
1,381, 701
1, 247, 523
1 ,119,140
1,1 5 2 ,0 3 4
115,136
134,178
128, 383
32, 894
3 24,128
394,400
347, 728
329, 367
289, 361
265, 004
606, 212
579,971
536,932
486, 058
537, 512
496, 225
454,002
381, 224
343, 721
348, 518
D is t r ib
u tiv e
e d u c a tio n
314, 666
215, 049
156,615
129,433
88, 429
36, 008
1 F o r th e y ea r s 1933 to 1937, in c lu s iv e , th e e n r o llm e n t s h o w n in th is ta b le in c lu d e s e n r o llm e n t in F e d e r a lly
a id e d an d n o n -F e d e r a lly a id e d v o c a tio n a l sch o o ls o p era ted u n d e r S ta te p la n s . A fte r 1937 a n d p rio r to 1943,
n o n -F e d e r a lly a id e d sc h o o ls w ere n o t r e p o r te d se p a r a te ly b y th e S ta te s .
2 P r o v is io n a l figu res, su b je c t to fin a l a u d it of S ta te repo rts.
2 D e c r e a se . T h e d ecr ea se s for 1933 a n d 1934 s h o u ld b e c o n sid e r e d in c o n n e c tio n w it h th e d ecrea ses in
F e d e r a l fu n d s a v a ila b le in th e s e y ea r s. A r e d u c tio n in 1933 of 8 p e r c e n t in th e s e fu n d s , a n d a fu rth er re d u c
tio n in 1934 o f 10 p e r c e n t, as co m p a red w it h th e p r e v io u s y e a r s, la r g e ly a c c o u n t for th e d ecrease in e n r o llm e n ts
o f le ss t h a n 3 p e r c e n t for ea c h of th e s e y ea r s.
F ello w sh ip s for C itizens from O ther A m erican
C ountries
QUALIFIED applicants from other American countries are to be
awarded fellowships in the U. S. Department of Commerce, according
to a recent announcement.1 These fellowships are to be of the interne
training type and may include instruction and practical training in_a
variety of branches or courses. At present, fellowships are offered in
geodetic surveying, map and chart production, hydrographic survey
ing, vital statistics, and foreign trade statistics. Awards are to be
made by the respective directors of the agencies concerned (the Coast
and Geodetic Survey, the Bureau of the Census, and the Bureau of
Foreign and Domestic Commerce), with the approval of the Secretary
of Commerce and the Secretary of State or the duly authorized repre
sentative of the Secretary of State.
Holders of these awards are entitled to monthly allowances for
quarters and subsistence during the entire period spent in the United
States, or its possessions, in pursuance of a fellowship. The allowance
rates are not to exceed $180 per month while under assignment in a
city of more than 100,000 population, nor $150 per month while in a
city of less than 100,000. While under assignment to receive training
as a member of a field party or at an educational institution, the month
ly allowance is to be $120 or $135, respectively.
The fellowships may be awarded for periods varying in accoidance
with the field of studies in which the application for a fellowship is
made. These periods range from 3 to 12 months, and may be extended
for equal periods of time.
i F e d e ra l R e g is te r (W a s h in g to n ), J u n e 24, 1944 (p . 6984).
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Federal Reserve Bank of St. Louis
Wage and Hour Statistics
E arnings in C otton-G oods M anufacture D u rin g th e
War Y e a r s1
Summary
THE cotton-textile worker is still among the lower-paid American
factory workers, in spite of substantial wage increases in cotton mills
since the outbreak of the war. Hourly earnings, which averaged
38.4 cents in April 1939, rose to 62.3'cents in April 1944, an increase of
62.2 percent. Straight-time average hourly earnings, that is, earn
ings after eliminating extra pay for overtime worked, increased from
38.4 cents to 59.9 cents during the same period, or by 56.0 percent.
Average hourly earnings in northern mills exceeded those in south
ern mills by 21 percent in April 1939, and 20 percent in April 1944.
Since March 1944, a slight narrowing of this difference has occurred,
caused in part by wage orders permitting wage increases in the South.
The extent of the recent wage changes has varied from area to area
within regions, as well as between the North and South, because of
varying hours of work, products manufactured, bidding for workers
by other industries, and other economic pressures. Increases in aver
age hourly earnings in 18 wage areas in the North ranged from 0.6
cents to 7.1 cents; in 48 southern wage areas the changes ranged from
a decrease of 0.5 cents per hour to an increase of 7.9 cents per hour.
Of 20 key occupational groups studied by the Bureau of Labor
Statistics in certain selected areas in the North and South, in the
spring and summer of 1943, class-A maintenance electricians, the
highest-paid group, averaged 99 cents per hour in the North and 79
cents in the South. Janitors and janitresses each averaged 52 cents
per hour in the North and 44 and 43 cents respectively in the South.
Among jobs that are particularly representative of the industry, the
respective northern and southern averages were as follows: Loom
fixers, other than Jacquard, 98 and 75 cents; male weavers, other than
Jacquard, 80 and 64 cents; female weavers, other than Jacquard,
75 and 62 cents; female spinners, 63 and 52 cents; and female yarn
winders, 63 and 52 cents.
Scope of the Industry
The cotton-goods industry*s composed of establishments primarily
engaged in manufacturing cotton yarn and thread, and woven goods
over 12 inches in width. Cotton woven goods include a variety of
fabrics such as duck, sheeting, print cloth, colored cotton goods, toweli
P rep ared b y C lara F . S c h lo ss an d T o iv o P . K a n n in e n of th e B u r e a u ’s D iv is io n s of E m p lo y m e n t S ta tis
tic s a n d W age A n a ly s is , r e sp e c tiv e ly .
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Federal Reserve Bank of St. Louis
824
Monthly Labor Review—October 1944
ing, upholstered and drapery materials, and pile fabrics. Establish
ments primarily engaged in dyeing or finishing cotton yarn or fabrics,
or in manufacturing cotton woven goods 12 inches or less in width,
are considered to be in separate industries.
Broad woven goods are produced in integrated spinning and weav
ing mills which carry on all the operations necessary to transform
ginned cotton into cotton fabric, and in independent weaving mills
which are generally engaged in producing specialty fabrics; the latter
account for only a minor part of cotton-goods production. Cotton
thread and yarn are produced for sale as such in independent spinning
mills, in thread-finishing mills, in yarn-winding and yarn-twisting
mills which prepare specialty yarns from purchased yarns, and to a
minor extent as a part of the operations of integrated spinning and
weaving mills.
Employment in the Industry
Establishments engaged in the manufacture of cotton textiles
(except cotton small wares) employed about 450,000 wage earners in
the early months of 1944, or approximately 3% percent of all manu
facturing wage earners in the United States. Only the major metal
working industries, such as the airframe, shipbuilding, automobile,
machinery, and electrical-equipment manufacturing industries, em
ployed a larger number of workers. The cotton-textile industry
employs at least a seventh of the manufacturing wage earners in the
South Atlantic and South Central. States.
In response to expanded consumer demand and the need of the
armed forces for cotton fabrics, the number of wage earners in the
cotton-goods industry rose during the early years of the war to a level
in excess of previous peak employment. The increase between June
1939 and December 1942, the lowest and highest months in recent
years, amounted to 36.6 percent, or from 373,400 to 510,300 employees.
In 1943, however, the number of wage earners in the industry began
to decline, as a result of losses to the armed forces and to other indus
tries. By April 1944, despite continuing urgent need for textiles,
employment was only 445, 300, or 65,000 below the earlier peak level. 2
The proportion of women working in the industry increased from 38
per 100 in October 1939 to 47 per 100 in April 1944, largely as a
result of this increased demand and the loss of male employees.
Shift Operation and Incentive Pay
Two- and three-shift operation is now common in the cotton-textile
industry. Over three-quarters of the mills surveyed by the Bureau in
the spring and summer of 1943 were operating more than one shift;
about three-fifths were working three shifts. Only about one-fifth of
the mills operating more than one shift reported premium rates of
pay for work on the late shifts.
\ Incentive pay, which is prevalent in the manufacture of cotton
goods, is found somewhat more commonly in the North than in the
South. Incentive workers constitute over three-quarters of the
weavers, yarn winders, spinners, and doffers in the North, and about
two-thirds of all workers in these occupations in the South.
A fu r th e r d ecr ea se of 9,500 e m p lo y e e s o ccurred b e tw e e n A p r il a n d J u n e 1944.
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Federal Reserve Bank of St. Louis
Wage and Hour Statistics
825
Wartime Wage Trends
Average hourly earnings of workers in the cotton-goods industry
amounted to 62.3 cents in April 1944—an increase of 62.2 percent
over April 1939, when wages averaged 38.4 cents per hour. Eliminat
ing from these averages the extra pay received for overtime worked,
the increase was 56.0 percent, or from 38.4 cents per hour in April
1939 to 59.9 cents in April 1944. This latter increase may be con
trasted with an estimated increase of 38.6 percent for all manufactur
ing industries in straight-time hourly earnings, from 62.2 cents in
April 1939 to 86.2 cents in April 1944, after correction for overtime
pay and interindustry shifts of employment.
Among th e m anufacturing industries for which the B ureau of L abor
S tatistics regularly collects wage d ata, only a few, such as the worksh irt and handkerchief industries, re p o rt lower average hourly earnings
th a n are found in the m anufacture of cotton textiles. T he relatively
low level of wages in cotton mills is accentuated som ew hat b y the
location of a large p a rt of the in d u stry in lower-wage sections of the
country, by the relatively low proportion of skilled w orkers em ployed,
and by th e large proportion of wom en workers in the industry.
Because of the competitive nature of the cotton-textile industry
and the importance of wage differences in explaining the industry’s
southward trend, the relative level of wages in northern and southern
mills is a matter of. particular interest. Wage rates in the North have
consistently exceeded southern rates, although the amount of difference
has varied.
B etw een A pril 1939 and April 1944 average hourly earnings, includ
ing prem ium p ay for overtim e and work on extra shifts, increased
from 44.4 cents to 72.0 cents in the N o rth and from 36.7 cents to 60.1
cents in the S outh (table 1). This increase am ounted to 62.2 percent
in th e N o rth and 63.8 percent in the South. A t the sam e tim e, the
pay m argin betw een the two regions increased from 7.7 to 11.9 cents
per ho u r.3
T he difference in average hourly earnings as betw een the N o rth and
S outh is influenced not only by differences in wage rates b u t also by
differences in the type of products m anufactured. P ro d u ct differences
influence the proportion of workers em ployed a t the various levels of
skill. Hence, it is probable th a t the absolute am ount of the regional
difference in wages, in the case of a given ty p e of goods, m ight v ary
considerably from the gross difference th a t has been indicated.
In each of the two broad regions the increase in earnings reflects,
among other things, the competition with the war industries for work
ers, and the various rulings or wage orders issued by Governmental
agencies. An example of this latter type of increase was the estab
lishment of the 32%-cent minimum under the Fair Labor Standards
Act; this action was followed by increases of 2.5 cents per hour in
the North and 2.6 cents per hour in the South, between October and
December 1939. Subsequent orders were issued under the FailLabor Standards Act, and by the National Defense Mediation Board.
By the end of 1941, average hourly earnings had increased to 57.9
cents in the North and 48.3 cents in the South.
3 A v e r a g e h o u r ly ea r n in g s for c o tto n -te x tile m a n u fa c tu r in g are c a lc u la te d for b o th th e N o r t h a n d th e
S o u t h e a c h m o n th b y th e D iv is io n of E m p lo y m e n t S ta tis tic s , a n d are a v a ila b le u p o n r e q u e s t.
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Federal Reserve Bank of St. Louis
826
Monthly Labor Review—October 1944
T a ble ].—Average Hourly Earnings 1 in the Cotton-Goods Industry, 1939-44
A v e r a g e h o u r ly ea r n in g s (in ce n ts)
M o n th
January
___
F e b r u a r y ____
M a r c h ____ _
A p r iL
_____
M ay__ _____
J u n e _______ _
J u l y __________
A u g u s t__ S e p te m b e r ___
O c to b e r --- ___
N o v e m b e r ___
D e c e m b e r ____
1939
1940
1941
1942
1943
1944
N o r th S o u th
N o r th S o u th
N o r th S o u th
N o r th ' S o u th
1
N o r th S o u th
N o r th S o u th
44.4
44.4
44.6
4 4 .4
4 4 .8
4 4 .7
44. 6
4 4 .7
4 4 .6
4 4 .7
4 6 .8
4 7 .2
3 6 .6
3 6 .6
3 6 .7
3 6 .7
3 6 .8
3 6 .4
3 6 .2
3 6 .2
36.3
36.3
3 8 .9
3 8 .9
47.1
47.1
47.1
4 7 .3
47 .3
4 7 .6
4 7 .6
4 7 .7
4 7 .5
4 7 .6
4 7 .3
4 7 .4
3 9 .2
3 9 .2
3 9 .2
3 9 .2
3 9 .4
3 9 .3
3 9 .4
3 9 .6
4 0 .0
3 9 .6
39 .6
39 .9
4 7 .5
4 7 .6
48.1
5 1 .8
5 2 .3
5 2 .6
5 3 .2
53 .0
57.1
58 .0
58.1
5 7 .9
40 .3
4 0 .2
4 0 .6
4 2 .6
43.1
43.1
4 5 .4
4 5 .6
4 5 .8
4 8 .2
48 .1
4 8 .3
58 .4
58 .8
5 9 .0
59.1
5 9 .9
60.1
60.1
60. 7
6 7 .3
6 7 .7
6 7 .8
6 7 .9
4 8 .4
4 8 .7
4 8 .9
4 9 .2
50 .9
50 .9
5 0 .8
5 3 .4
55.1
55.1
5 5 .2
5 5 .4
6 8 .4
6 8 .6
6 8 .8
6 9 .4
6 9 .7
7 0 .3
70.1
7 0 .3
71.1
70 .8
71.1
71 .0
5 5 .9
5 5 .8
5 6 .0
5 6 .2
5 6 .6
56 .2
5 6 .4
56. 0
57 .3
56 .6
56 .7
57.1
7 1 .2
71 .8
7 1 .9
7 2 .0
2 7 2 .5
57.3
5 7 .2
57 .8
60.1
2 61 .4
1 I n c lu d in g p r e m iu m p a y for o v e r tim e a n d w o r k o n la te s h ifts.
2 P r e lim in a r y .
The next major increase, amounting to 7.6 cents per hour in the
North and 4.3 cents per hour in the South, occurred between July
and September of 1942, following a National War Labor Board order
for a 7K-cent increase in hourly wage rates for certain specific mills.
In March 1944 the Atlanta Regional War Labor Board gave
southern mills permission to make application for a 50-cent minimum
wage, with additional adjustments permitted in wage rates above the
minimum level. Although the effect of this latter increase is prob
ably not fully reflected by the most recently collected wage-rate data,
preliminary figures for May 1944 indicate that average hourly
earnings in the Southern States amounted to 61.4 cents, an increase
of 3.6 cents over the average for March 1944.
In June 1944, bracket rates for key textile occupations were estab
lished for New England by the Boston Regional War Labor Board.
The stabilized rate for common labor was determined to be 52 cents
per hour. Mills paying less than the stabilized rates may, upon proper
application, receive permission to increase their wage rates to the
permitted levels. Wage data are not yet available, to measure the
effect of this order.
T a ble 2. —Average Weekly Hours in the Cotton-Goods Industry, 1939-44
1939
1940
1941
1942
M o n th
J a n u a r y ______
F e b r u a r y __
M a r c h __
A p r il_________
M a y __________
J u n e . - __
J u l y __________
A u g u s t _____ S e p te m b e r ___
O c to b e r ______
N o v e m b e r ___
D e c e m b e r ____
1943
1944
N o r th
S o u th
N o r th
S o u th
N o r th
S o u th
N o r th
S o u th
N o r th
S o u th
N o r th
37.8
38.0
3 7 .7
37.0
35.9
3 6 .6
3 7 .6
3 7 .3
3 8 .5
3 7 .8
3 8 .3
3 8 .5
36.1
3 6 .0
36.1
3 5 .2
35 .6
3 5 .5
3 5 .7
3 6 .4
3 7 .5
38.1
37. 1
3 7 .4
3 7 .6
3 6 .4
36.1
3 5 .3
3 4 .9
3 3 .7
3 6 .4
3 6 .6
37 .3
38.1
36 .3
39 .0
36 .5
3 6 .2
35 .4
35 .0
34 .4
34 .0
3 4 .6
3 5 .2
3 6 .2
36 .9
37.1
37 .8
3 8 .2
3 9 .0
3 9 .6
3 9 .3
40.1
4 0 .0
3 9 .6
4 0 .0
3 9 .9
3 9 .0
37 .8
4 0 .4
3 7 .0
3 8 .2
3 8 .6
3 9 .3
3 9 .4
3 9 .5
3 8 .5
3 9 .2
3 9 .6
3 9 .5
3 9 .5
4 0 .2
4 1 .3
4 1 .6
4 1 .9
4 1 .6
42 .1
4 1 .6
4 1 .9
4 2 .0
4 0 .6
4 2 .0
41. 6
4 2 .5
40.1
4 0 .7
4 0 .8
4 0 .9
4 0 .8
4 0 .8
40 .1
4 0 .5
4 0 .2
4 0 .3
4 0 .8
41. 1
4 2 .7
42. 7
4 2 .9
4 3 .2
4 3 .2
4 3 .4
42. 8
43 .4
43.1
43 .4
43.1
4 2 .6
4 1 .0
4 1 .2
4 1 .3
4 1 .5
4 1 .7
4 0 .9
40. 5
4 0 .5
4 0 .6
41.1
4 1 .5
41. 5
4 3 .2
4 3 .4
4 3 .6
43.1
i 4 3 .3
P r e lim in a r y .
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Federal Reserve Bank of St. Louis
S o u th
4 1 .0
41 .4
41 .4
40 .9
i 4 1 .2
Wage and Hour Statistics
827
The average hourly earnings shown in table 1 are gross averages—
that is, they include earnings from overtime pay. These comparisons
have a tendency to exaggerate the difference in the average between
the regions, since mills in the North averaged somewhat longer hours
than mills in the South. In April 1944, northern mills averaged 2.2
hours more work per employee per week than southern mills (table 2).
A refinement of the measure of regional differences can be obtained
by eliminating premium payments for overtime work. The results
of this elimination are shown in table 3, which gives the actual dif
ference (in cents) in average hourly earnings between the North and
South. The greatest differences between the gross and the straighttime averages will be found in the more recent months, after the
amount of overtime worked had increased. Before 1942, the amount
of extra pay resulting from overtime work was negligible.
T a ble 3.— Straight-Time Average Hourly Earnings1 in the Cotton-Goods Industry,
1 9 3 9 -4 4
M o n th
1939:
J a n u a r y ____
F e b r u a r y _________
M a r c h ____
_ .
A p r il_____________
M a y ______________
June__ ________ .
J u l y ______________
A u g u s t ___________
S e p te m b e r ___ . . .
O c to b e r _____ _ _
N o v e m b e r ________
D e c e m b e r _______
1940:
J a n u a r y ______ . . .
F e b r u a r y ________
M arch .
A p r il______
___
M a y ___________
June . _
...
J u l y . . . __________
A u g u s t ___________
S e p te m b e r _____
O c to b e r ______ . .
N o v e m b e r ________
D e c e m b e r ___ _ _
1941:
J a n u a r y ______
F e b r u a r y _________
M a r c h ____________
A p r il_____________
M a y _____________
J u n e ____ . . . . .
J u l y _______ _____ _
A u g u s t ___________
S e p te m b e r ________
N o r th
m in u s
S o u th
N o r th
S o u th
C en ts
43. 7
4 3 .7
4 3 .9
4 3 .8
4 4 .8
4 4 .2
4 3 .9
44.1
43.8
4 4 .0
4 6 .0
4 6 .4
C en ts
3 6 .2
3 6 .2
3 6 .3
3 6 .7
36 .8
36 .4
3 6 .2
35 .8
35.8
35 .7
38 .4
3 8 .4
C en ts
7 .5
7 .5
7 .6
7.1
8 .0
7 .8
7 .7
8. 3
8 .0
8 .3
7 .6
8 .0
46.4
4 6 .5
4 6 .6
4 7 .3
4 7 .3
4 7 .6
4 7 .0
47.1
4 6 .8
4 6 .8
4 6 .8
4 6 .5
38. 7
3 8 .8
3 9 .2
3 9 .2
39 .4
39 .3
3 9 .4
3 9 .6
3 9 .6
39.1
39.1
3 9 .3
7. 7
7 .7
7 .4
8 .1
7 .9
8. 3
7 .6
7 .5
7 .2
7. 7
7. 7
7 .2
4 6 .7
4 6 .5
4 6 .9
50.6
50.8
51.1
51.8
51.5
55.6
39 .8
3 9 .5
3 9 .8
4 1 .6
4 2 .0
4 2 .0
4 4 .5
4 4 .5
4 4 .6
6 .9
7 .0
7 .1
9 .0
8 .8
9 .1
7 .3
7 .0
11.0
M o n th
1941— C o n tin u e d .
O ctober
N ovem ber
D ecem b er
1942:
January
February
M a r ch
A p r il
M ay
June
J u ly .
A ugu st
S e p te m b e r ________
O ctober
N ovem b er
D ecem b er
1943:
January
February
M a r ch
A p r il
M a y ___
June
J u ly ..
A u g u s t __
S e p te m b e r .. . '. .
O cto ber
N ovem ber
D ecem ber
1944:
January
February
M a r c h .. _ ________
A p r il_____________
M a y ______________
N o r th
S o u th
N o r th
m in u s
S o u th
C en ts
56. 7
57. 2
56. 2
C en ts
4 7 .0
46. 9
4 6 .9
C e n ts
9 7
10 3
9 .3
56 3
56. 4
56. 5
56. 7
57. 3
57. 7
57. 5
58.1
65.1
64. 8
65.1
64 .6
47 0
47 .1
47. 3
4 7 .5
49. 2
49. 2
4 9 .4
5 1 .7
5 3 .5
53 4
53.4
53.4
9 2
9 3
9 2
9. 2
8 .1
8. 5
8 .1
6. 4
* 1 1 .6
11. 4
11 7
11 2
6 5 .0
65. 2
65. 3
65. 7
65. 9
6 6 .4
6 6 .6
6 6 .4
6 7 .3
66. 9
67. 3
67. 6
53 .9
53. 7
53. 9
5 4 .0
5 4 .3
5 4 .3
5 4 .7
5 4 .3
55 .5
54 .6
54. 5
54. 9
11.1
11. 5
11. 4
11. 7
11. 6
12.1
11. 9
12.1
11.8
12.3
12. 8
12. 7
6 7 .4
6 7 .9
6 7 .9
6 8 .2
2 68. 5
55. 3
55. 0
5 5 .5
5 8 .1
2 5 9 .1
12.1
12. 9
1 2 .4
10.1
2 9 .4
1 E x c lu d in g p r e m iu m p a y for o v e r tim e .
2 P r e lim in a r y .
Straight-time average hourly earnings increased from 43.8 cents
to 68.2 cents, or 55.7 percent, in the North, and from 36.7 cents to
58.1 cents, or 58.3 percent, in the South, between April 1939 and
the same month of 1944. Nearly half (48.6 percent) of the increase
in the North, and 45.8 percent of the increase in the South, occurred
prior to October 1942 when the National War Labor Board was given
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Federal Reserve Bank of St. Louis
82B
Monthly Labor Review—October 1944
legal responsibility for wage stabilization. Since the summer of
1943, the time of the Bureau’s study of occupational wage rates which
is discussed later in this article, straight-time hourly earnings have
risen 5 percent. Most of this increase occurred in the South during
the early months of 1944, following the previously mentioned decision
of the War Labor Board.
Weekly earnings in the cotton-goods industry averaged $26.34 in
May 1944. This is considerably below the all-manufacturing average
of $46.13 and below the $37.04 average for the nondurable-goods
group of industries. In spite of the relatively low level of earnings
in the cotton-goods industry in 1944, the May figure represents a
doubling of the prevailing earnings in 1939.
The average weekly earnings in the cotton-goods industry as a
whole tend to conceal the wide difference in earnings between the
North and South. For example, in May 1944 the earnings in the
Northern States averaged $31.39, and in the Southern States, $25.30
(table 4). As has been indicated, in each of these regions the weekly
earnings reflect the increased hourly earnings necessitated by com
petition with the war industries in order to attract or retain labor.
T a ble 4 . —Average Weekly Earnings 1 in the Cotton-Goods Industry, 1939-44
1939
1940
1941
1942
1943
1944
N o r t h S o u th
1
N o r th S o u th
N o r th S o u th
N o r th S o u th
N o r th S o u th
N o r th S o u th
M o n th
J a n u a r y ______ $16. 78 $13. 21 $17. 71 $14. 31 $18.15 $14. 91 $24.12 $19.41 $29. 21 $22.92 $30. 76
F e b r u a r y _____ 16.87
13.18
17.14
14.19
22. 99
18. 56
15. 36 24.46
19.82
29.2 9
31.16
M a r c h . _____
16.81
13. 25
17.00
19.05
13.88
15. 67
24. 72
19. 95 29. 52 23.13
31.35
A p r il________
16. 43
12. 92
16.70
13. 72
20.36
16.74
24. 59 20.12
29.98
23. 32 31.03
M a y _____ __
13.10
16.51
16.08
13. 55 20.97
16. 98
25. 22 20. 77 30.11
23.60 2 31.39
12. 92
16.04
21.04
17.02
J u n e . _______ 16. 36
13.36
25.00
20. 77 30. 51
22.99
J u l y __________ 16. 77
12. 92
17. 33
13.63
21.07
17.48
25.18
20. 37
30.00
22. 84
A u g u st.
16. 67
13.18
17. 46
13. 94
21.20
17.88
25. 49 21.6 3
30.51
22.68
S e p te m b e r ___ 17.17
13. 61
14.48
22.15
17. 72
22.78
18.14
27.32
30.64
23. 26
O c to b e r ______ 16. 90
13.83
14. 61
22.6 2
18.14
19. 04
28. 43
22. 21 30.73
23.26
N o v e m b e r ..
17. 92
14.43
17.17
14. 69 21.96
19. 00
22. 52 30.64
28.20
23. 53
D e c e m b e r ____ 18.17
14.55
15.08
22. 77 30.25
18.49
23. 39
19. 42
28.86
23.70
$23. 49
23.68
23. 93
24.58
2 25. 30
1 I n c lu d in g p r e m iu m p a y for o v e r tim e a n d w o r k o n la te sh ifts.
2P r e lim in a r y .
Variation in Average Hourly Earnings Within Regions
The general averages of hourly earnings for the North and South,
just cited, fail to reveal the wide variations in the averages for the
several areas included in each region. A special study of 12 Southern
States shows that Mississippi had the lowest average hourly earnings,
49.4 cents, in May 1944, while South Carolina, Kentucky, and Ten
nessee headed the list with 64.5 cents, 62.5 cents, and 61.6 cents,
respectively. These State averages do not necessarily indicate com
parable differences in wages paid for specific occupations. For
example the presence of a large proportion of yarn mills within a
given area may reduce the average of hourly earnings solely because
of differences in the composition of the labor force.
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Federal Reserve Bank of St. Louis
Wage and Hour Statistics
829
The Bureau has just completed an analysis of 66 separate areas
important in the cotton-textile manufacturing industry. Eighteen
of these areas are in the North and 48 in the South. The results of a
part of this analysis are shown in tables 5 and 6. In order to de
termine the extent of recent wage increases, a comparison of average
hourly earnings for identical establishments has been made for the
months of April 1943 and April 1944.
T a ble 5.—Average Hourly Earnings and Employment in 18 Northern Areas of the
Cotton-Textile Industry, in Identical M ills, A pril 1943 and A pril 1944 1
A v e r a g e h o u r ly
ea r n in g s 2
In c rea se
in
E m p lo y m e n t (in
th o u s a n d s)
A rea
A p r il
1943
P e n n s y lv a n ia (e x c e p t P h ila d e lp h ia ) _______ _________
N e w Je r se y , S t a t e . . _____________ _____ ___________
B a ltim o r e , M d ______________________________ _ .
I llin o is , S t a t e .. ____________________________ . . . . . . .
M a s s a c h u s e t t s 3. . . __________ .
______ __________ _
L o w e ll-L a w r e n c e , M a s s .-M a n c h e s te r N . H __________
W o rc este r, M a s s ___ ______________ . ________________
B o s to n -S a le m -N e w to n , M a s s ___________
_ ________
M a in e , S ta te 4_____________ . . . . . . . ______________ _.
N e w Y o r k 4_ ________ ___________________________ .
N e w B ed fo rd , M a s s .4. . .
_____ ______ __________
H o ly o k e , M a s s . _ . ____ _________
. _____________
F a ll K iv e r -T a u n to n , M a s s .4. . .
. _
F itc h b u r g -W in c h e n d o n S p r in g s, M a s s . . . . . . _______
N o r w ic h -G r o s v e n o r D a le , C o n n .4__ _________________
B h o d e Isla n d 4_ ________ . . . _ _ _________________
N e w Y ork , N . Y . .
_
. . . . .
P h ila d e lp h ia , P a . . ____
______________
___ . . . _
58 .5
61 .5
62 .4
63.1
65 .8
66 .4
6 6 .7
68 .0
6 8 .3
6 8 .8
7 0 .0
7 0 .4
7 0 .7
7 0 .7
72. 2
72.7
74 .5
77 .5
A p r il
1944
6 2 .8
6 7 .2
64 .9
70 .9
6 7 .6
68 .7
73.7
69 .8
71 .0
70 .4
72 .2
7 2 .9
7 2 .4
7 2 .2
7 3 .0
77.1
77 .5
82 .3
hourlyea r n in g s
C en ts
4 .3
5 .7
2 .5
7 .8
1 .8
2 .3
7 .0
1 .8
2 .7
1 .6
2 .2
2 .5
1 .7
1 .5
.8
4 .4
3 .0
4 .8
A p r il
1943
0 .9
.8
2 .9
.2
2 .5
7 .6
1 .0
4 .9
9 .5
2 .2
13.5
1 .5
11.0
1 .2
5 .8
9 .3
3 .8
1 .2
A p r il
1944
0 .7
.6
2 .4
.2
2 .3
6 .5
.9
3 .9
8 .1
1 .9
1 1 .4
1 .3
9 .5
1.1
5.1
7 .6
3 .0
1.1
1 D a t a are from th e B u r e a u ’s r e p o r t, E m p lo y m e n t , H o u r s , a n d E a r n in g s, a n d T u r n o v e r B a t e s in C o tto n
G ood s, b y A reas, J a n u a r y 1942 -A pril 1944.
2 I n c lu d in g o v e r tim e p a y a t p r e m iu m ra te s a n d s h ift d iffer en tia ls.
3 C o v ers areas n o t else w h e r e liste d .
4 Denotes an area covered in the study based upon occupational wage rates, to be found in the following
pages.
Increases in average hourly earnings ranged from 0.8 cents to 7.8
cents per hour in the northern areas represented, the smallest increase
occurring in Connecticut, and the greatest in the case of a limited
number of workers in Illinois.
The areas in the South showed increases in average hourly earnings
ranging from 0.1 cents to 8.5 cents. As is the case in the broader
areas previously discussed, the difference between areas is caused by
variation in the number of hours worked, the type of product manu
factured, and local competition for labor by other industries.
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Federal Reserve Bank of St. Louis
Monthly Labor Review— October 1944
830
T
able
Average Hourly Earnings and Employment in 48 Southern Areas of the
Cotton-Textile Industry, in Identical M ills, A pril 1943 and A pril 19441
6 .—
A v e r a g e h o u r ly earn
I n c rea se
in g s (in c e n t s ) a
in
E m p lo y m e n t (in
th o u s a n d s)
A rea
A p r il
1943
N e w n a n , G a _ ____________ ___
- ------------------------M is s is s ip p i, S ta te
_ — ------- ------------ --------------- A r k a n sa s, S ta te __________ - _ _ _ --------------- -D a lla s , T e x _ _ _ ------- _ . . . ---------_ _ _ --------A lb e m a r le -T r o y , N . C ______ _______ . - ------- - - - G r a n ite F a lls -L e n o ir , N . C .3__
V ir g in ia 4___ __ . _____________________________________
____
- - ---------------------- ------G e o r g ia 4________
L a u r in b u r g , N . C .- D i llo n , S. C
___________________
------------------- --------------F a y e t te v ille , N . C ------------L a n e tt, A la .-L a G r a n g e , G a _________ _ _ _ _ _ _ __ ___
B o c k in g h a m , N . C ____
_
_ ---------- _.___ -------___ _ _ _ ------------- ------M a c o n -F o r s y th , G a .3______
A th e n s -G a in e s v ille , Ga_ . . . _____ __ _ ------------ ___
T e x a s 4. __
_ ------- _ ___ __ ___ __ -------------------M o n r o e , G a ----- -------- ----------------- ------- ---------- _ -G a ffn e y , S. C .-S h e lb y , N . C __________________________
W in s to n -S a le m -L e x in g to n , N . C .3__ __
_ _ _ _ _
N o r th C a r o lin a 4 ___ __ ___
_
__ -------------------C o lu m b u s , G a -------------------------------- ------------------------ - A la b a m a 4. - _
_ __ _ _ _
_
----------------- L in c o ln to n -N e w to n N . C . 3_ ---------- ___ -------------- __
. . . __ G a s to n ia , N . C .3_ _ -------------- ---------S y la c a u g a -T a lla d e g a , Ala___ _ ----------------------------------S ta te s v ille -S a lis b u r y , N . C .3__ ------------ . _ _ _ ------B o m e -C a r te r sv ille -C e d a r to w n , Ga__ __ -------------- ___
B o a n o k e B a p id s -W a r r e n to n , N . C .3__________________
A tla n ta , G a .3 ___ ----------------------------- _ -----------B o c k H ill-C h e s te r , S. C__ _ ------------------------------ -------T e n n e s se e 4____________________________________________
L a n c a ste r , S. C .-M o n r o e , N . C _______________________
-------------------------------- _
H u n t s v ille , A la .3--------- --A n d e r so n , S. C_ ___ --------- ----------------- -------------------W a lh a lla -P ic k e n s , S. C_ ------------------------------ _ _ _ __
A n n is to n -G a d s d e n , A la ------------------ ___ _
G r iffin -T h o m a sto n , Ga_
...
G r e e n w o o d -N e w b e r r y , S. C__ -------------------- -----------S o u th C a ro lin a 4 _ ____ _ ---------- - ---------- --------C h a tta n o o g a , T e n n ----- -------------------- --- ------C h a r lo tte , N . C .3
______________
B u r lin g to n -H ills b o r o -D u r h a m , N . C
A u g u s ta , G a .-G r a n ite v ille , S. C_ -----------------------------B e id s v ille , N . C .-D a n v ille , V a .4_____________________
C o lu m b ia , S. C
----- --G r e e n v ille , S. C .3----- -------------------------- ___
-----------S p a r ta n b u r g , S. C .3 _____________ _ _ ___ ------- _
G r een sb or o, N . C .3 _ _ ___ ___ --------------------------- -C o n c o rd , N . C .3_ _ _ ___ _ __ _ ----- _ __ ___
4 8 .9
4 9 .8
49 .8
51 .0
51 .6
51 .7
51 .9
52 .5
5 2 .5
5 2 .6
5 2 .8
5 2 .9
5 3 .0
5 3 .0
5 3 .2
5 3 .7
54 .2
54 .4
54 .4
54 .7
55.1
55.1
5 5 .2
55.3
5 5 .4
55 .5
55.6
5 6 .2
5 6 .4
5 6 .5
56.6
57.1
57 .4
5 7 .5
57.6
57.6
5 7 .8
7 7 .9
5 8 .0
58 .3
5 8 .4
5 8 .8
5 9 .6
5 9 .9
60.1
6 0 .2
6 1 .4
6 1 .7
A p r il
1944
4 9 .6
5 0 .4
5 0 .9
5 6 .9
5 9 .4
5 4 .6
5 7 .0
5 3 .0
53.1
5 2 .8
58.1
56.3
53 .6
56 .5
55 .4
5 5 .2
55.1
59.3
56 .4
55 .9
5 6 .2
5 8 .6
6 1 .7
5 5 .5
62 .1
6 2 .5
5 8 .7
6 2 .9
5 9 .7
60 .4
6 1 .0
5 7 .2
6 2 .4
60 .6
58 .3
64 .3
6 2 .5
58 .3
60 .8
63 .6
6 0 .7
6 0 .7
6 3 .9
6 4 .5
6 4 .7
6 2 .3
6 9 .3
70 .2
h o u r ly
ea r n in g s
C en ts
0 .7
.6
1.1
5 .9
7 .8
2 .9
5.1
.5
.6
.2
5 .3
3 .4
.6
3 .5
2 .2
1 .5
.9
4 .9
2 .0
1 .2
1.1
3 .5
6 .5
.2
6 .7
7 .0
3 .1
6 .7
3 .3
3 .9
4 .4
.1
5 .0
3 .1
.7
6 .7
4 .7
.4
2 .8
5. 3
2 .3
1 .9
4 .3
4 .6
4 .6 ’
2 .1
7 .9
8:5*
A p r il
1943
3 .2
2 .0
.9
2 .0
4 .8
3 .6
2. 1
4. 6
4 .1
1.1
19. 2
3 .6
3. 5
4 .8
3 .0
3 .4
8 .5
2 .6
8 .6
12.6
18.9
2 .6
18.3
7 .8
4. 8
14.9
4 .6
7 .2
5 .6
6 .8
11.0
3 .0
9 .7
4 .3
5 .8
10.0
10.5
1 .6
5 .3
4 .4
9 .4
6 .7
17.7
7 .5
8 .0
15.0
7 .1
22 .1
A p r il
1944
2 .9
1 .9
.7
1.3
4. 6
3. 5
2 .2
4 .0
3 .8
1 .0
17.7
3. 2
3 .2
4 .9
2 .7
3 .3
8 .5
2 .2
8 .1
10.3
17.8
2 .5
16.8
6 .8
4. 5
13.9
4 .1
5. 8
5 .2
5 .4
10.1
2 .6
9 .4
4 .3
5. 4
9 .0
10.0
1 .6
4 .9
3 .9
8 .0
5. 8
14.3
6 .8
7 .5
13.8
6. 4
19.0
1 D a t a are from th e B u r e a u ’s r e p o r t, E m p lo y m e n t , H o u r s a n d E a r n in g s , a n d T u r n o v e r B a t e s in C o tto n
G o o d s, b y A reas, J a n u a r y 1 9 4 2 -A p ril 1944.
a I n c lu d in g o v e r tim e p a y a t p u n it iv e ra tes, a n d s h ift d iffer en tia ls.
2 D e n o te s an area co v e r e d in th e s t u d y b a se d u p o n o c c u p a tio n a l w a g e ra tes, t o b e fo u n d in t h e fo llo w in g
p a g e s.
4 C o v e r s areas n o t e lse w h e r e lis te d .
Occupational Wage Rates
Method of study .—In the summer of 1943, as part of the
Bureau’s nation-wide study of occupational wage rates, hourly rates
and straight-time hourly earnings in the cotton-goods industry
were obtained for 6 northern and 10 southern areas. The study
covered the various types of mills engaged in the manufacture of
cotton broad woven goods 4 and cotton yarn. Thread mills, situated
principally in the northern States, were excluded..
The wage data were compiled from pay rolls of 233 mills by field
representatives of the Bureau of Labor Statistics, who visited the
individual establishments and classified the workers in accordance
with the Bureau’s standard job descriptions.
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Federal Reserve Bank of St. Louis
Wage and Hour Statistics
831
The occupational data relate to a July 1943 pay-roll period in the
case of two northern areas (Maine, and Utica-Gloversville, N. Y.)
and all of the southern areas except Atlanta, Ga. The latter city and
the remainder of the northern areas were surveyed in April 1943.
T h e inform ation obtained consisted of average hourly earnings
including incentive paym ents b u t excluding prem ium paym ents for
overtim e or late-shift work. A verage hourly earnings were obtained
for 20 selected key occupational classifications, including half of the
wrage earners in the mills. Because of the g reater concentration
of w orkers in relatively few occupations in y arn mills, the proportion
of w orkers covered in such establishm ents was som ew hat greater
th a n in broad-goods mills.
Representativeness of areas studied.—The information on occupa
tional wage rates presented at this time is limited primarily to cities
of 25,000 or more and to their immediately surrounding communities.
Since this particular field study was intended mainly to provide in
formation on a wage-area (community) basis, it is emphasized that
tire data do not represent those segments of the industry that are
in relatively isolated, small communities. The survey provides a
somewhat poorer representation of southern than of northern textile
mills. Thus, in Alabama, Georgia, and South Carolina, where much
of the industry is scattered in communities of less than 25,000, the
coverage of the study is less adequate than that obtained in North
Carolina or Virginia.
Comparison of the average hourly earnings of wage earners in the
areas surveyed with the level of earnings for wage earners in the
entire industry reveals that wage levels hr the communities studied
were somewhat higher than in the industry as a whole (tables 5 and 6).
Since the overstatement of wage levels was slightly greater in the
South than in the North, the data also understate slightly the differ
ences in wage levels between northern and southern communities.
Within each region the variations in wage levels were also less pro
nounced among the a~eas surveyed than those which would be found
in a survey covering all wage areas in the industry.
In July 1943, the straight-time earnings of the workers in the six
selected northern areas averaged 67.7 cents, or 1.1 cents more than
the average wage for all northern cotton-textile wage earners as a
group. The cotton-textile workers in the selected southern areas
averaged 56.9 cents, or 2.2 cents above the corresponding figure for
all wage earners in the cotton-textile industry in the South. Recent
wage increases which have taken place would tend to make the occu
pational averages more representative of the entire South, although
somewhat below those now found in the specific areas covered.
Unionization in plants studied.—One-fourth of the mills included in
the Bureau’s study of wage rates were operating under the terms of
union agreements. Unionization was much more extensive in the
North than in the South; 43 of the 58 mills surveyed in the New
England-New York State region had entered into agreements with
unions, whereas only 17 of the 175 southern mills had done so.
U nionization in the S outh h ad m ade greater progress am ong the
in teg rated mills th a n am ong the independent w eaving and independent
y a rn mills. Since the form er are typically larger, the proportion of
4 E x c e p t in o n e n o r th e r n a n d tw o so u th e r n areas th e s u r v e y e x c lu d e d e s ta b lis h m e n ts p r im a r ily en g a g ed
in th e m a n u fa c tu r e o f p ile fab rics. W a g es in m ills m a n u fa c tu r in g th is p r o d u c t in th e s e areas d id n o t d iffer
a p p r e c ia b ly from th o se in o th er m ills in th e s a m e area.
610054— 44----- 11
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Federal Reserve Bank of St. Louis
832
Monthly Labor Review—October 1944
wage earners covered by union agreements, 1 out of 5, was considerably
greater than would be indicated by the number of mills with such
contracts. Although one or more unionized mills were found in 6
of the 10 southern wage areas studied, the workers covered by agree
ments in the mills studied in that region were largely concentrated in
three areas: Danville, Va.; Greenville and Spartanburg, S. C.; and
the Tennessee Valley area of northern Alabama. Of 118 mills studied
in North Carolina, only 4 had union contracts. All of the 15 mills
surveyed in the 3 Georgia areas were nonunion.
OCCUPATIONAL VARIATIONS
A summary of the occupational wage-rate study is presented in
table 7. These data, as has been mentioned, represent wage levels
during the spring and summer of 1943, and do not reflect subsequent
upward adjustments which have been of importance primarily in
the South. The figures presented for the northern and southern
regions represent weighted averages of the data for only the individual
areas studied.
T a b le 7.—Average Hourly Earnings 1 in Selected Occupations in Cotton-Goods Manu
facture in Northern and Southern Wage Areas, Spring and Summer, 1943
6 n o r th e r n areas
10 so u th e r n areas
N u m b er A verage
of
h o u r ly
w o r k e r s 2 ea r n in g s
N u m b er A verage
h o u r ly
of
w o r k e r s 2 ea r n in g s
E x c e ss of N o r th
o v e r S o u th
S ex a n d o c c u p a tio n o f w o rk er
M a le w ork ers:
C ard g r in d e r s__________________________
C ard te n d e r s a n d str ip p e r s
_ . ____
C a rp en ters, c la ss A . . . .
C a rp en ters, c la ss B _________
___ ._
D o ife r s , s p in n in g fr a m e .
. . . __ . .
E le c tr ic ia n s , c la s s A _ .
...
E le c tr ic ia n s , Class B
_____________
I n s p e c to r s, c lo th , h a n d
I n s p e c to r s , c lo th , m a c h in e . __ . . . _
J a n it o r s 4. . . . . .
_
.
....
L o o m fixers, o th e r t h a n J a c q u a r d _____
M a c h in is ts , c la s s A ________ . .
M a c h in is ts , c la ss B . . .
S e c o n d h a n d s . _______________________
S p in n e r s, r in g fram e ______
S to c k cle r k s
. . _______ __
T r u c k e r s, h a n d . . . _______
W a tc h m e n __ _
__ ______
W e a v e r s, o th e r th a n J a c q u a r d ________
W in d e r s , y a r n . . ___
...
. . . . .
F e m a le w ork ers:
D o ffe r s, s p in n in g fr a m e .
. . . ._
I n s p e c to r s, c lo th , h a n d
______ ____
I n s p e c to r s, c lo th , m a c h in e _____
. _
J a n it r e s s e s 4- . . _______ _________________
S p in n e r s, r in g f r a m e .
_ _ _
S to c k cle r k s
______ _ _______ . . . .
T r u c k e r s, h a n d ______ _ . .
W e a v e r s, o th e r t h a n J a c q u a r d . . .
W in d e r s , y a r n ________ . _ ___________
A m ount
P ercent
263
775
49
110
805
48
39
(3)
(3)
358
1,694
104
98
590
413
130
624
229
2,6 4 8
107
$0. 75
.6 3
.9 3
.8 2
.7 4
.9 9
.8 8
(3)
(3)
. 52
.9 8
.9 5
.8 1
.9 7
.6 7
.5 9
.5 5
.5 8
.8 0
.66
1,119
3, 717
109
350
6 ,8 6 8
79
142
246
205
2,241
3, 796
239
348
3.0 0 0
187
569
2,1 3 3
981
4 ,2 9 2
207
$0. 65
.51
.7 0
.6 0
.5 7
.7 9
.6 7
.5 2
.5 0
.4 4
.7 5
.7 9
.6 5
.7 3
.5 3
.5 2
.4 5
.4 7
.6 4
. 51
$0.1 0
. 12
.2 3
.2 2
. 17
.2 0
.2 1
15
24
33
37
30
25
31
.0 8
.2 3
.1 6
.1 6
.2 4
.1 4
.0 7
.1 0
. 11
. 16
. 15
18
31
20
25
33
26
13
22
23
25
29
525
992
577
76
3,2 9 4
21
48
2,790
3 ,0 0 6
.6 4
.5 3
.5 2
.5 2
.6 3
.5 4
.5 4
.7 5
.6 3
431
1, 347
1, 650
423
16, 886
77
(3)
6, 372
10, 435
.4 9
.4 9
.5 6
.4 3
.5 2
.4 9
(3)
.6 2
.5 2
. 15
.0 4
.0 4
.0 9
.1 1
.0 5
31
8
7
21
21
10
. 13
.1 1
21
21
1 E x c lu d in g p r e m iu m p a y m e n t s for o v e r tim e a n d for w o r k o n se c o n d or th ir d sh ifts.
2 R e p r e s e n ts e s t im a t e d to ta l e m p lo y m e n t in a ll m ills in a reas c o v e r e d h y s u r v e y .
3 N u m b e r o f e s t a b lis h m e n t s a n d /o r w o r k e r s to o s m a ll t o j u s t if y p r e s e n ta tio n o f d a ta .
4 I n c lu d in g c le a n e r s a n d sw e e p e r s.
It is of interest that none of the key occupations covered in this
survey paid an average wage as high as $1 per hour. The highest
wages were paid to maintenance workers. Class A maintenance
electricians averaged 99 cents in the North and 79 cents in the South.
Class A maintenance machinists in the South also averaged 79 cents.
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Federal Reserve Bank of St. Louis
Wage and Hour Statistics
833
The lowest-paid workers were janitors and janitresses, each of whom
earned 52 cents in the North and 44 and 43 cents, respectively, in
the South. Loom fixers and second hands were the highest-paid
workers whose jobs are characteristic of the industry. Watchmen
and hand truckers received a few cents more on the average than did
janitors. Among the numerically most important occupational
classifications, male weavers showed earnings of 80 cents in the
North and 64 cents in the South, female weavers averaged 75 cents
in the North and 62 cents in the South, and female spinners earned
63 cents in the North and 52 cents in the South. All occupations
in the North and all male occupational categories in the South,
except janitors, watchmen, and hand truckers, averaged more than
50 cents an hour.
Although wages in the North were higher than those in the South
in every category, the difference varied by occupation. The smallest
differences were found in the occupations of female cloth inspectors
and stock clerks, while the largest were found among carpenters,
second hands, Class B electricians, loom fixers, and doffers. The
differential was, in general, larger among the skilled jobs than among
the unskilled. The median difference (unweighted) was about 23.5
percent.5
T a ble 8. —Indexes of Hourly Earnings 1 in Selected Occupations in Cotton-Goods M anu
facture in Northern and Southern Wage Areas, Spring and Summer of 1 9 4 3
R e la tiv e ea r n
in g s (m a le h a n d
tru ck ers=100)
S ex a n d o c c u p a tio n of w ork er
M a le s:
L oom
fixers, o th e r
th a n
J a c q u a r d ____ _
__
S e c o n d h a n d s ____ . .
W e a v e r s, o th e r t h a n Ja cq u ar d _ _ _ _ _
_ _ _______
C ard g r i n d e r s ___
D o ffe r s, s p in n in g fr a m e ___
» C ard te n d e r s a n d s tr ip p e r s ___
S to c k c le r k s __ __ ___________
W a t c h m e n _____ __ _
R e la tiv e e a r n
in g s (m a le h a n d
tru ck ers=100)
S ex a n d o c c u p a tio n o f w o rk er
Six
n o r th
ern
areas
T en
s o u th
ern
areas
178
176
167
162
145
136
135
115
107
105
142
144
127
113
116
104
S ix
n o r th
ern
areas
M a le s — C o n tin u e d .
J a n ito r s __________ ___________
T r u c k e r s, h a n d
F e m a le s :
W e a v e r s, o th e r t h a n J acquard _ _
S p in n e r s , rin g fram e
W in d e r s , y a r n _
I n s p e c to r s, c lo th , h a n d . __ ___
I n s p e c to r s, c lo th , m a c h in e ___
T en
so u th
ern
areas
95
100
98
100
136
115
115
96
95
138
116
116
109
124
1 E a r n in g s e x c lu d e p r e m iu m p a y m e n t s for o v e r tim e or for w o rk o n seco n d or th ir d s h ifts .
T h e v ariatio n in earnings am ong the num erically m ost im p o rtan t
occupations is shown in relative form in table 8, w hich expresses th e
average wage ra te for each job in term s of th e earnings for m ale h an d
truckers. T his occupation was selected as the base because of its
wage stab ility and because it is one of th e low er-paid occupations in
th e in d u stry , w hich em ploys relatively large num bers of w orkers.
A nalysis of tab le 8 indicates th a t th e v ariatio n in earnings am ong
these im p o rtan t occupational classifications was relatively consistent
5
P a r t o f th e v a r ia tio n in h o u r ly e a r n in g s b e tw e e n th e N o r th a n d S o u th m a y b e a ttr ib u te d to t h e c o n c e n
tr a tio n o f c o tto n -y a r n m ills in s o u th e r n te x tile area s. W a g e m a te r ia ls c o lle c te d in t h is a n d p r e v io u s s t u d ie s
o f t h e w a g e s tr u c tu r e of t h e c o tto n -g o o d s in d u s tr y in d ic a te t h a t w a g e ra te s for a g iv e n o c c u p a tio n are g e n
e r a lly lo w e r in in d e p e n d e n t y a r n m ills th a n in in te g r a te d m ills . I n th e B u r e a u ’s m im e o g r a p h e d r e lea se
e n t it le d “ C o tto n B r o a d W o v e n G o o d s a n d Y a r n M ills : F i v e S o u th e a ste r n S ta te s , S tr a ig h t-T im e A v e r a g e
H o u r ly E a r n in g s , S e le c te d O c c u p a tio n s, J u ly 1943,” o c c u p a tio n a l ea r n in g s a re p r e se n te d s e p a r a te ly for
in te g r a te d a n d for y a r n m ills . T h e s e d iffer en ces are a lso d is c u ss e d in th e ea rlier re p o r t o n th e in d u s tr y ,
W a g e s in C o tto n -G o o d s M a n u fa c tu r in g ( B u lle t in 663), a n d in H o u r s a n d E a r n in g s in M a n u fa c tu r e o f Cot
to n G o o d s, S e p te m b e r 1940 a n d A p r il 1941 (S eria l N o . R . 1414).
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Federal Reserve Bank of St. Louis
/
834
Monthly Labor Review—October 1944
in the North and South among most of the lower-paid job categories,
female cloth inspectors being a notable exception to this statement.
There was somewhat less consistency in the case of the higher-paid
occupations. The relative earnings of the two highest-paid major
jobs—those of loom fixers and second hands—were distinctly higher
in the North than in the South, the relatives being 178 and 176,
respectively, in the North, as compared with 167 and 162 in the
South. Doffers also had somewhat higher relative earnings in the
North, resulting in part from the greater importance of incentive pay
for this occupation in the North. The rates paid to card grinders in
the North appear to have been relatively low.
OCCUPATIONAL RATES, BY WAGE AREA
Occupational averages for the individual wage areas are presented
in table 9. It is apparent from this table that the variations among
the individual areas surveved within the same region are in general
less pronounced than the North-South wage differences noted above.
Somewhat greater differences between the wage levels within each of
the two major regions might have been shown if the survevhad included
cotton mills located in relatively isolated small communities.
T a ble 9.-—Average Hourly Earnings 1 in Selected Occupations in Cotton-Goods Manu
facture in 16 Wage Areas, Spring and Summer of 1943
N o r th e r n areas
S ex a n d o c c u p a tio n o f w ork er
N orw ic h M a in e
D a n ielarea
son
(C o n n .)
area
S o u th e r n a re a s
N ew
ITticaF a ll
B ed
G lo v R iv e r
ford
e r sv ille
(M a ss.)
(M a s s .) ( N . Y.)
area
area
area2
P r o v i
d en ce
(R . I.)
area
T en
n essee
V a lle y
area of* A tla n ta
(G a .)
n o r th
area
ern
A la
bam a
Males
C ard g r in d e r s ,
______________ ______
C ard te n d e r s an d s tr ip p e r s __________
C a r p e n te r s, m a in te n a n c e , cla ss A _
C a r p e n te r s, m a in te n a n c e , cla ss B ___
D o ffe r s, s p in n in g fr a m e __________ ___
E le c tr ic ia n s , m a in te n a n c e , cla ss A , - E le c tr ic ia n s , m a in t e n a n c e , cla ss B__.
I n s p e c to r s, c lo th , h a n d _ _ .
. .
I n s p e c to r s, c lo th , m a c h in e ___________
J a n it o r s 4___________ ________________
L o o m fixers, o th e r th a n J a c q u a r d ___
M a c h in is ts , m a in te n a n c e , cla ss A___
M a c h in is ts , m a in te n a n c e , cla ss B ___
S ec o n d h a n d s ________________________
S p in n e r s , rin g fr a m e ___________ ___
S to c k c le r k s __________________________
T r u c k e r s, h a n d
_ _
W a t c h m e n . _ _ _ ___________ __ _
W e a v e r s, o th e r t h a n J a c q u a r d . . ___
W in d e r s , y a r n . ________ . . .
$0. 72
.6 2
.8 5
.81
.6 1
1 .0 4
.86
.6 3
.5 2
.9 2
.91
.77
.98
.62
.60
. 55
.57
.81
. 61
$0.77
.5 9
.9 8
.8 7
.6 5
1.01
.88
$0.7 9
.6 5
1.01
.7 8
.7 6
1.1 2
.92
(3)
.6 9
.96
. 99
.88
1. 02
. 72
.63
.52
.62
.78
.5 0
.98
.78
.92
. 61
.56
.51
.54
.79
. 65
$0.7 3
.6 3
.9 4
.9 0
.7 6
. 97
$0.7 0
.5 9
(a)
.8 8
.7 8
1. 03
(31
.5 4
.5 3
$0. 74
.6 7
.9 4
.7 7
.7 4
.9 4
.84
$0.63
.5 6
$0. 62
.4 8
.5 8
.5 7
.6 4
(3)
(3)
. 64
.5 1
.5 6
.4 6
.98
.95
.88
1. 00
76
.58
.54
.60
.79
. 68
1.05
1.08
.86
(3)
1. CO
.93
.79
.94
.69
.58
.55
.56
.81
.62
.59
.59
.83
(3)
.67
.54
. 52
.53
.66
. 55
.54
.76
.67
.60
. 52
.66
. 68
. 51
. 52
. 52
.67
.77
.62
. 53
.75
.68
.84
. 49
.49
.48
.48
.60
. 54
48
. 47
.4 3
.67
. 89
.64
.74
( i)
.45
.45
.45
.53
.58
Females
D o ffe r s , s p in n in g fr a m e ____ . . . . .
I n s p e c to r s, c lo th , h a n d . _ ____ .
In s p e c to r s, c lo th , m a c h in e .. .
. .
J a n itr e sse s 4.
__ __
S p in n e r s , r in g fr a m e_________________
S to c k c l e r k s .. _______ _ _ _. .
T r u c k e r s, h a n d ________ _________ ._
W e a v e r s, o th er th a n J a c q u a r d ... . . .
W in d e r s , y a r n __________ . . .
_______
See footnotes at end of table.
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Federal Reserve Bank of St. Louis
.60
.51
.52
. 65
.53
. 52
.52
.52
(3)
.61
.52
.60
.76
.60
.64
.73
.59
.58
.72
.56
(3)
. 48
.53
. 47
.55
.55
( 3)
.50
( 3)
.50
.49
Wage and Hour Statistics
835
T a b le 9.—Average Hourly Earnings 1 in Selected Occupations in Cotton-Goods Manu
facture in 16 Wage Areas, Spring and Summer of 1943— Continued
Southern areas—C ontinued
Sex and occupation of worker
BurGreenC har Rocky States villeAugus Macon lingtonW inta
lotte M ount ville
Spar(Ga.)
ton(Ga.)
Salem (N. C.) (N . C.) (N. C.) tanburg
area
area
(S. C.)
a re a 2 area
(N . O.) area
a re a 2
area
D an
ville
(Va.)
area
Males
C ard grinders- __________________
Card tenders and strippers_ . -----Carpenters, maintenance, class A
Carpenters^ m aintenance, class B __
Doffers, spinning fram e________
Electricians, m aintenance, class A _
Electricians, m aintenance, class B___
Inspectors, cloth, hand - , .......... Inspectors, cloth, m achine____ ____
Janitors 4 ’ ___’_________________
Loom fixers, other th an Jac q u a rd __
M achinists, m aintenance, class A
M achinists, m aintenance, class B __
Second h an d s___
_ _ ________
Spinners, ring frame _ _ .
Stock clerks
____
Truckers, h a n d ___________________
W atchm en _____________________ _
W eavers, other th a n Jacquard
W inders, yarn__
$0.67
.51
$0.58
.49
.70
.59
.48
.80
(3)
.41
.75
.75
.86
.40
.63
1. 25
.65
.65
$0.66
.53
.67
.57
.62
. 73
.59
.59
.50
.47
.77
.76
.58
.78
.59
.42
.51
.62
.46
.44
.42
.53
.47
.49
.65
. 48
.50
.48
.47
.56
.48
.49
.53
.52
.54
.61
.49
.61
.53
.62
.54
$0.64
.49
.66
.54
.54
.80
.62
.52
.65
.42
. 79
. 77
.62
.66
. 50
.58
.43
.43
. 68
$0.66
.47
(3)
.64
. 57
(3)
.68
(3)
.43
.71
. 76
.63
.70
.55
.42
.46
.61
. 52
$0. 59
.49
.85
.55
.55
.63
.47
.51
.45
. 77
.86
.61
.66
. 57
.49
.45
.44
.66
. 50
$0. 69
.50
70
.60
.59
. 82
.65
. 51
.50
.45
.74
.76
.68
.83
$0.65
.54
. 75
.70
.57
.94
.72
. 59
.48
.45
.77
.83
.76
.78
.53
.46
.49
.66
.52
.46
.49
.60
.49
. 51
.45
.52
.52
.42
.52
.53
.42
.54
.50
.63
.51
.58
.55
Females
Doffers. spinning frame- _
Inspectors, cloth, hand
_ . __ _
Inspectors, cloth, machine
Janitresses 4_ _
............. ..
Spinners, ring fram e______________
Stock clerks
_____ . .
_
Truckers, hand
W eavers, other than Jacq u ard _____
W inders, y a rn ____________________
.52
.47
. 66
.43
.51
.50
(3)
. 46
.40
.49
.54
.67
.52
.58
.47
.51
.45
.52
.43
.49
.44
.42
.64
.48
1 Excluding prem ium paym ents for overtime and for work on second or third shifts.
2 Includes establishm ents prim arily engaged in m anufacturing pile fabrics. D a ta for other areas do not
cover such establishm ents.
3 N um ber of establishm ents and/or workers too small to ju stify the com putation of an average.
4 Including cleaners and sweepers.
No one area either in the North or in the South consistently paid
the lowest or highest rates in its region. In general, however, wage
rates in the North appear to have been highest in the Providence area
and lowest in the Norwich-Danielson and Fall River areas. In the
South the highest general levels prevailed in the Burlington-WinstonSalem area and the lowest in the Atlanta and Rocky Mount Areas.
Weighted averages based on 11 occupational categories common to all
areas are presented below:
Average i
Average >
South— Continued.
N orth:
Augusta, G a______________$0.
Norwich-Danielson, Conn__ $0. 65
Macon, G a_______________
M aine___________________
. 66
B urlington-W inston-Salem,
Fall River, M ass__________
. 65
N. C___________________
New Bedford, M ass_______
.7 0
Charlotte, N. C ___________
Utica-Gloversville, N. Y __
. 69
Rocky M ount, N. C ______
Providence, R. I __________
.71
Statesville, N. C __________
South:
Greenville - Spartanburg,
Tennessee Valley of Ala
S. C ___________________
bam a__________________
. 55
Danville, V a______________
A tlanta, G a______________
.5 2
55
. 53
. 57
.55
. 52
.5 3
. 55
.5 6
1 W eighted averages, based on rates in th e following occupational categories: C ard grinders, male; card
tenders and strippers, male; doffers, spinning frame, male; janitors, male; loom fixers, other than Jacquard,
male; stock clerks, male; truckers, hand, male; w atchm en; spinners, ring frame, female; weavers, other than
Jacquard, female; and w inders, yarn, female. Uniform occupational weights were used in all areas.
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Federal Reserve Bank of St. Louis
836
Monthly Labor' Review—October 1944
Wages in the C onnecticut Valley Brass Industry,
A pril 1 9 4 3 1
Summary
A STUDY of wages in 18 brass plants in the Connecticut Valleyin April 1943 reveals wide variations in straight-time earnings among
occupations, the range being from 73 cents an hour for watchmen to
$1.48 for casters. Seventy percent of the workers were in occupations
averaging between 90 cents and $1.10 an h<?ur. The prevalence
of incentive-wage payment exercises a considerable influence on the
level of wages in this industry and explains, in part at least, the rather
wide interplant variations in average hourly earnings.
Between August 1941 and April 1943, there was a median increase
in occupational earnings of 11.8 percent. Eighteen of the 27 occu
pations on which the comparison is based showed increases of 5 to 15
percent.
Characteristics of the Industry
Copper was among the earliest metals used by man and, although
not consumed on the same scale as steel, it is one of the most important
of all metals used in the manufacture of both peace- and war-time
products. Certain physical characteristics of copper contribute to
its importance: it is noncorrosive, has a low melting point, is easily
worked hot or cold, and can be combined with many other metals to
form various alloys. Its superior electrical conductivity makes it
indispensable to the electrical and communication industries.
Copper and copper-base products are now almost exclusively
reserved for military use. Countless implements of war are made in
whole or in part of copper and copper alloys. The largest single
wartime use of copper is in brass cartridge cases. Because the Nation’s
supply of copper has been insufficient to meet both civilian and
essential military needs, copper and copper-base alloys have been
under priority control by the Government since 1941.
The first plants manufacturing copper-finished products in the
United States were situated in New England. The Connecticut
Valley has retained its advantage of an early start and is today the
center of the industry. This study is concerned with but one portion
of that industry—the rolling and drawing of copper and copper
alloys.
Copper comes from the refining furnaces in the form of ingots or
slabs. In the plants manufacturing copper alloys, the copper is
combined with other metals to form the desired alloy before any
further processing is done. For example, zinc and lead are combined
with copper to produce a variety of brasses, while different types of
bronzes result from combinations of copper with tin, lead, zinc, and
aluminum. After alloying, the metal is recast into convenient
form—ingots, slabs, billets, or bars. In rolling mills, the copper is
heated and passed through a series of rolls which reduce its thickness
and increase its length until a sheet of the desired size is obtained.
In wire mills, the heated bars are first reduced on a rolling mill. The
resulting rod is then drawn through a series of successively smaller
Prepared in the B u reau ’s Division of Wage A nalysis b y E d ith M . Olsen and M ary Elizabeth Brown.
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Federal Reserve Bank of St. Louis
Wage and Hour Statistics
837
dies (wire-drawing machines) until wire of the desired tolerance is
obtained. Billets are made into tubes and pipes on either a seamlesstube mill or an extrusion press.
Scope and Method of Survey
The information presented in this report was collected as part of
the Bureau’s occupational wage-rate survey, which covered charac
teristic industries in cities of 25,000 or more. Eighteen plants in
Connecticut came within the scope of the survey and all of these
were covered. Fourteen of these plants were engaged primarily in
the rolling and drawing of copper and copper alloys. The other four
plants were divisions of integrated plants whose major products fell
into other industry groups.
Wage data were obtained for selected key occupations which are
believed to be representative of the skill and earnings levels of the
industry. Each of these occupations was found in almost all of the
plants; the covered occupations include nearly 8,000 workers, or
approximately half of all workers employed in the rolling and drawing
of copper and copper alloys in these plants. The wage data relate to a
representative pay-roll period in April 1943.
Visits to the individual plants were made by experienced field
representatives of the Bureau, who transcribed the wage data from
pay-roll and other plant records. In classifying the workers by oc
cupation, standard job descriptions were used in order to assure
maximum comparability of occupational duties from plant to plant.
The Labor Force
The number of employees in the 18 plants studied ranged from 65
to about 3,000. Two-thirds of these plants had more than 251
workers. With the exception of the office personnel, male workers
constituted the greater part of the labor force of the industry in
Connecticut. Although a few women were found in processing oc
cupations in 6 of the 18 plants, separate wage data for women workers
can be shown for only three occupations. Operators of various
specialized machines constitute a large proportion of the labor force in
these plants. The operations involved in rolling are the most skilled
and require considerable experience and training. Important though
less-skilled occupations are those of crane operators and truckers,
since at all stages of the processing materials must be handled and
transported from operation to operation.
Eleven of the 18 plants were operating under collective-bargaining
agreements with the International Union of Mine, Mill and Smelter
Workers, a C. I. O. affiliate. These 11 plants accounted for 90 percent
of the workers for whom detailed occupational information is shown.
Wage-Payment Practices
“ Take-home” earnings of workers in the rolling and drawing of
copper and copper alloys are influenced appreciably by the number of
hours worked, premium payments for overtime and late-shift work,
and the prevalence of incentive-wage systems. These factors varied
considerably among the plants studied.
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Federal Reserve Bank of St. Louis
838
Monthly Labor Review—October 1944
The length oi the normal workweek was 48 hours in 10 of the 18
plants, and in the other 8 ranged from 46.2 to 70 a week. All plants
paid time and a half for hours worked in excess of 8 a day or 40 a week,
and double time for the seventh consecutive day of work. Work on
the six national holidays was paid for at the rate of time and a half
by 17 plants, and at straight time by the other.
All plants operated more than one shift; 14 were on a three-shift
and 4 on a two-shift basis. First- or day-shift workers, however,
comprised about 60 percent of the total working force in these plants,
while the second and third shifts accounted for about 25 and 15 per
cent, respectively. In eight plants, the hourly rate for late-shift
workers exceeded those of the day shift by 5 percent, and in eight
other plants by 5 cents. One plant paid no shift differential, while in
the remaining plant, the differential was 5 and 10 percent, respectively,
for the second and third shifts. A third of the plants reported
periodic rotation of shifts by the workers.
Incentive methods of wage payment were found in 16 of the plants
studied and affected the earnings of slightly more than half of the
workers for whom occupational wage data are shown in this report.
These incentive workers were either paid on a piece-work basis
or received bonus payments for production in excess of standard
performance.
Nonproduction bonuses, usually in the form of Christmas bonuses,
were reported for all plants; in four plants, however, these bonuses
applied to office and supervisory workers only. These annual non
production bonuses have not been taken into consideration in com
puting the straight-time average hourly earnings presented in the
study.
Minimum entrance rates for inexperienced male workers ranged
from 65 to 81 cents an hour; two-thirds of the plants had minimum
entrance rates ranging from 70 to 75 cents an hour. Rates for in
experienced women workers in the plants reporting this information
ranged from 55 to 76 cents an hour. With the exception of two
plants, where the rates for both sexes were identical, established
entrance rates for women were lower than for men by 10 to 14.2 cents
an hour. Wage increases above the entrance rate were determined on
the basis of individual merit in 11 plants. In six of the seven other
plants, the rate was increased by 2 to 6 cents an hour after 1 to 3
months, and in the remaining plant, the job rate for each occupation
was reached after 1 month.
All of the 18 plants reported established entrance rates for male
common labor. Entrance rates for these workers ranged from 55 to
81 cents an hour, with 11 plants paying between 70 and 75 cents an
hour.
Average Hourly Earnings
Straight-time average hourly earnings are shown in table 1 for
7,390 workers, classified into 50 selected occupational groups. Aver
ages for male workers ranged from 73 cents an hour for watchmen to
$1.48 for casters. Hourly earnings for the three occupations yielding
separate averages for women (plate, sheet, and strip inspectors, tube
inspectors and electric-bridge crane operators) averaged 75, 91, and
98 cents, respectively, for the women workers. The average hourly
earnings for male workers in the same three occupations amounted to
96, 98, and 99_cents, respectively.
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Federal Reserve Bank of St. Louis
Wage and Hour Statistics
830
T a b le 1.— Straight-Time Average Hourly Earnings of Workers in Selected Occupations,
in Rolling and Drawing of Copper and Copper Alloys, Connecticut, A pril 1943
Average hourly earnings
Occupation
M aintenance:
C arpenters, class A _______________ .
__ __
C arpenters, class B _____________________ _
Electricians, class A ___ _____________________ __
Electricians, class B _________________________ _
M achinists, class A
.
__________ ___
M achinists, class B ____ ______ _____________
M illw rights, class A ____ ___________ _____ _
M illw rights, class B ____________________________
Oilers_________________________________________
Supervision: W orking foremen, processing departm ents.
Processing:
Annealers .
_
____________ _
____ _
_
Annealers’ helpers___________________ _________
Blockers________ ____________________________
C asters___ _______ __________________________
C asters’ h e l p e r s . ________ _
____ _____ _
Catchers, cold-roll____ . . . . . . . . . _______ ____ _
Die makers, class A . . . ____ __ _ ____ ____ _ _
Die makers, class B ____________________________
Extrusion-press operators _______________ ___
Furnace operators, p reh eatin g ............____________
P ick lers... . . . ________________________ ______
Rod draw ers.
. _ . . . . . ____ . ______ ._
Rod-pointing operators____ ____ _____ _______
Rod rollers, break-down and interm ediate .............
Rod rollers, finishing___________________________
Rollers, cold-roll, break-down and run-dow n_____
Rollers, cold-roll, finishing. ____________________
Rollers, hot-roll, break-down and run-down. _ _ .
Rollers, hot-roll, fin ish in g ... ___________________
Saw operators, pow er_________________________
Shearmen, power ______
_ __ _ . . .
Slitter operators______________ _______________
Stickers, hot-roll and cold-roll________
Straighteners, m achine____ ____ ________________
T ube drawers (draw-bench operators)____________
Tube-pointing operators___________ . . .
Inspection and testing:
Inspectors, plate, sheet, and strip _______________
Inspectors, plate, sheet, and strip, fe m a le .............
Inspectors, r o d ... _______ ____ _____________ .
Inspectors, tu b e .. _ . . ____________ __ _______
Inspectors, tube, fem ale.. . ____. . . . _ ________
M aterial m ovem ent:
Crane operators, electric bridge....... ............ ...............
C rane operators, electric bridge, female_____ _____
T ruck drivers__________________________________
Truckers, h a n d . ______________________________
Truckers, power ______ . ________________ __ __
Custodial:
G uards_____ _ ___________ __________________
Janito rs____ . . . . . . ____________________ _____
W atch m en .. _ . . . _________
___ _____ .
Recording and control : Stock clerks___________ . . . . .
N um ber of
workers
General
average
Lowest
H ighest
p lant aver plant aver
age
age
41
27
54
49
168
143
51
25
47
157
$1. 05
.96
1.12
.95
1.12
.94
1.03
.91
.89
1.09
$1.00
.81
.95
.78
1.05
.80
.88
.78
.85
.89
$1. 20
1.06
• 1.29
1.01
1. 22
1.03
1. 30
.94
.92
1.61
331
442
278
520
430
63
38
17
30
31
214
26
37
8
7
72
150
25
38
272
107
151
274
185
740
201
1.01
.92
.92
1.48
1.33
1.16
1.19
1.03
1.20
1.15
.94
1.02
.98
.95
• .93
1.21
1. 25
1. 28
1.32
.99
1.08
.96
1.02
1.01
1.06
.90
.85
.70
.72
.90
.80
.78
.82
.92
1.09
.85
.80
.88
.83
.84
.84
.86
.87
1.04
1.24
1.11
1.14
2. 27
2.00
1.55
1.27
1.06
1.25
1.37
1.09
1.05
1.20
1.27
1.21
1. 75
1. 50
1.51
112
35
41
217
45
.96
.75
.87
.98
.91
607
34
69
106
242
.99
.98
1.00
.99
1.01
.79
.90
.75
.83
.82
1.32
1.02
1.11
1.11
1.24
304
101
8
23
.88
.86
.73
.86
.75
.73
.47
.75
.98
.95
.87
.88
(0
.80
.88
.71
.78
.70
.84
.83
(>)
.75
(0
.80
.84
0)
1.24
1.50
1.10
1.65
1.25
1.30
1.26
1.22
(')
1.10
1.29
0)
1 Average om itted to avoid disclosure of d ata for individual establishm ents.
Approximately four-tenths of the workers were found in occupations
averaging between 90 cents and $1.00 an hour, and three-tenths were
in occupations which averaged between $1.00 and $1.10. Occupa
tional averages for only one-twelfth of the workers were less than 90
cents an hour, and somewhat more than two-tenths were employed
in the 12 occupations for which average earnings exceeded $1.10 an
hour.
Among the workers engaged in processing occupations, about threetenths were classified in the occupations with averages amounting to
more than $1.10 an hour. Average hourly earnings for tube drawers
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Federal Reserve Bank of St. Louis
840
Monthly Labor Review—October 1944
and electric-bridge crane operators, numerically the most important
occupations, were $1.06 and 99 cents, respectively. Casters, who
were paid the highest average hourly rate, formed the third largest
group of workers and accounted for 11 percent of the processing
workers studied.
Wide interplant variations in average hourly earnings were found
for most occupations. Casters, for example, showed a range of
$1.37 from the lowest to the highest plant average. Such ranges re
flect, in part, differences in method of wage payment, since incentivepaid workers generally averaged more than workers paid by the hour.
An examination of earnings data for the 26 occupations found in at
least two union and two nonunion plants, showed the averages for
the union plants to be higher for 17 occupations, by amounts ranging
from 1 to 19 cents an hour. Average hourly earnings in the non
union plants were higher in nine occupations, by 2 to 33 cents. A
clear-cut comparison of rates in union and nonunion plants, however,
is made difficult by other factors. Generally speaking, the non
union plants, which included but 10 percent of the workers in this
study, were small. Four of the seven nonunion plants had fewer
than 250 workers, while 9 of the 11 union plants had more than 250
workers. Nonunion plants also differed from the union plants with
respect to method of wage payment. Two nonunion plants paid all
their workers on a time basis, while the majority of the workers in
three other plants were paid on time rates.
For the purpose of showing a comparison between the earnings of
workers paid on time and incentive rates, separate wage data are
presented in table 2 for 21 occupations in which both methods of
wage payment were found. In order to eliminate the influence of
unionization, only the 11 union plants have been included in this
comparison.
T a ble 2. — Straight-Time Earnings of Incentive and Time Workers in 11 Union Plants
Rolling and Drawing Copper and Copper Alloys, Connecticut, A pril 1943
Tim e paym ent
Occupation
Processing:
Annealers____
_ _
_
A nnealers’ h e lp e rs ___
_ _ __ _ _ ____ _
B lockers-.- ____ _____________________________
C asters ______________________________ ________
C asters’ h elpers.- _ .__ ___ _ _ _________ ______
Picklers_________ __ _________________________
R od draw ers_____ _ _ _ _ _________ ______
Rod-pointing operators_______________ _____ _ __
Rollers, cold-roll, break-down and run-dow n______
Rollers, finishing, cold-roll ____________ ______
Saw operators, pow er__ ____________ ____ _____
Shearmen, pow er_______________________________
Slitter operators____ _ _____ ______________ ____
Stickers, hot and cold-roll _ _____________________
Straighteners, m a c h in e ____ ______
T u b e drawers (draw-bench operators) _ _ _
___
Tube-pointing operators________ _
__ _ _ _ _
Inspection a n d testing:
Inspectors, plate, sheet and s trip ___________ _ ___
Inspectors, tube- _____
__ __ _ ____
M aterial m ovem ent:
Crane operators, electric bridge _ ____________ __
Truckers, pow er___________ ______ ___________
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Federal Reserve Bank of St. Louis
N um ber
of
workers
Incentive paym ent
Average
hourly
earnings
N um ber
of
workers
Average
hourly
earnings
153
206
164
30
27
49
4
9
9
22
149
43
45
78
71
183
148
$1.00
.87
.83
.97
.96
.89
.89
.93
.92
1.04
.92
1.01
.85
.95
.97
.95
.85
118
186
100
440
277
141
22
28
42
89
122
41
75
137
104
557
53
$1.06
.99
1.05
1.49
1.29
.98
1.04
.99
1.31
1.35
1.08
1.16
1.03
1.07
1.04
1.10
1.04
32
110
.91
.92
69
107
.99
1.05
340
170
.95
.98
264
62
1.04
1.12
Wage and Hour Statistics
841
For each of these 21 occupations, incentive-paid workers averaged
more than time workers by amounts ranging from 6 to 52 cents an
hour. The median difference was 14 cents an hour. It is interesting
to note in this connection that time rates in the union plants were
higher than those for all plants in 7 of the 10 occupations found in at
least two union and nonunion plants. For incentive workers, how
ever, rates in union plants were higher in only 2 of the 11 occupations
found in both union and nonunion plants.
Wage Changes, August 1941 to April 1943
In order to measure wage changes occurring between 1941 and
1943, straight-time average hourly earnings are shown in table 3 for
27 identical occupations found in 10 plants covered both by the
present survey and by an earlier survey made by the Bureau in
August 1941.2 The number of comparable occupations has been
restricted by difference in the methods of the two surveys. In the
1941 study, almost all occupations in the industry were covered,
while the later study was concerned only with selected key occupa
tions. Furthermore, the classification of labor grades within an
occupation was not made in the earlier study and, therefore, the 1943
earnings data for certain occupational groups have been combined
for comparison with the 1941 study.
All groups of workers for whom comparable information is avail
able received an increase in wages between August 1941 and April
1943. Average wages increased from 2 percent for millwrights (an
occupation employing relatively few workers) to 30.3 percent for
hand truckers. In general, however, the percent of change shown
was fairly uniform from occupation to occupation. Eighteen of the
27 occupations showed increases of 5 to 15 percent, while the median
occupational increase was 11.8 percent. Janitors, the lowest-paid
occupation in 1941, showed an increase of 14.7 percent.
T a ble 3. — Straight-Time Earnings in Selected Occupations in 10 Connecticut Plants,
Rolling and Drawing Copper and Copper Alloys, August 1941 and A pril 1943
Average hourly
earnings
Occupation
M aintenance:
C arpenters_________________
Electricians. .
____
M achinists ____ .
M illw rights
Oilers
Supervision: W orking foremen,
processing departm ents
Processing:
A nnealers_____ _____________
A nnealers’ helpers. ________
Die m akers___ ______ _____
Extrusion-press operators____
Furnace operators, preheating.
Picklers
B od and tube draw -bench operators____ . .
. . . _
B od and tube-pointing oper_____
ators_____ ______
1941
1943
$0.95
1.00
1.00
.98
.86
$1.02
1.04
1.06
1.00
.88
1.06
1.10
.94
.86
.98
.96
1.05
.89
1.04
.97
1.16
1.19
1.18
.96
.93
1.04
.89
1.00
Average hourly
earnings
Occupation
Processing—C ontinued.
Boilers, break-down and rundow n____ _
_ .
____
Boilers, finishing
Saw operators
_______
Shearmen
. . . ______
Slitter operators_____________
Stickers _ - - .... ... ..............
Straighteners.- ___ ________ Inspection: Inspectors___________
M aterial movement:
Crane o p e r a t o r s , e l e c t r i c
brid g e____________________
Truckers, h an d.
_ _
Truckers, pow er. _____ . . .
Custodial:
Jan ito rs____
___________
W atchm en and guards___ _ .
1941
1943
$1.17
1.21
.90
.91
.96
.91
.93
.87
$1.23
1.27
1.04
1.09
1.03
1.00
1.05
.99
.90
.76
.90
1.02
.99
1.02
.75
.83
.86
.88
2 An earlier stu d y of th e wage structure of the nonferrous-metals in d u stry was conducted by the Bureau
in the fall of 1941. T h a t study, which included th e m ining, milling, smelting, refining, and prim ary fabri
cation of nonferrous m etajs was published as U. S. B ureau of Labor Statistics B ulletin No. 729.
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Federal Reserve Bank of St. Louis
842
Monthly Labor Review—October 1944
T rend of Factory E arnings, 1939 to July 1944
THE published average earnings of factory workers are summarized
in the accompanying table for selected months from January 1939 to
July 1944.1 The earnings shown in this table are on a gross basis
(i. e., before deductions for social security, income and victory taxes,
bond purchases, etc.).
Weekly earnings in all manufacturing averaged $45.52 in July
1944—96.3 percent above the average in January 1939, 70.9 percent
above January 1941, and 17.0 percent above October 1942. Such
factors as longer hours of work, merit increases for individual workers,
premium pay for overtime worked, changing composition of the labor
force within plants, shifts in the distribution of workers among plants
and among industries, as well as wage-rate increases, account for the
rise in earnings.
Gross hourly earnings in all manufacturing averaged 101.9 cents in
July 1944—61.2 percent above the average in January 1939, 49.2
percent above January 1941, and 14.1 percent above October 1942.
Straight-time average hourly earnings, as shown in columns 7 to 9,
are estimated to exclude premium pay at time and a half for work in
excess of 40 hours. The effect of extra pay for work on supplementary
shifts and on holidays is included. For all manufacturing, the straighttime average in July 1944 was 95.1 cents per hour; this was 52.6
percent higher than in January 1939, 43.2 percent above January 1941,
and 13.3 percent above October 1942.
Earnings of Factory Workers in Selected Months, 1939 to July 1944
Average weekly
earnings
M onth and
year
1939:
1940:
1941:
1942:
J a n ____
J a n ____
J a n ____
J a n ____
J u ly ___
O ct____
1943: J a n ____
A p r____
J u ly ___
O ct____
D ec____
1944: J a n ____
A p r____
M a y ___
June 3
Ju ly 3__.
Average hourly
earnings
Estim ated straighttim e average hour
ly earnings 1
Estim ated straighttim e average hour
ly earnings weight
ed b y January 1939
em p lo y m en t2
N on
N on
N on
All
All
N on
All
All
u ra du ra m anu D u ra d u ra m anu D ura dura m anu D ura dura
m anu Dble
ble
ble'
ble
ble
ble factur goods
ble
factur goods
factur goods
ble
factur goods
goods
goods
ing
goods
ing
goods
ing
ing
(12)
(10)
(3)
(8)
(9)
(ID
(5)
(6)
(7)
(2)
(4)
(1)
$23.19 $25. 33 $21. 57 $0. 632 $0. 696 $0. 583 $0,623 $0.688 $0. 574 $0. 623 $0,688
. 635
.697
. 589
.644
.703
.717
.598
.655
24. 56 27. 39 22.01
.711
.722
.601
.648
.664
.610
.683
. 749
26. 64 30.48 22. 75
.729
.810
.670
.801
.688
.762
.835
.890
33. 40 38. 98 26. 97
.846
.759
.885
.701
.725
.809
.949
.856
36.43 42. 51 28. 94
.782
.869
.919
.723
.839
.751
.990
.893
38.89 45. 31 30. 66
.733
.794
.886
.941
.859
.768
.919 1.017
40. 62 46.68 32. 10
.808
.897
.957
.751
.790
.878
.944 1.040
42.48 48. 67 33.58
.919
.823
.981
.766
.899
.806
.963 1.060
42. 76 48. 76 34.01
.929
.836
.997
.781
.824
.916
.988 1.086
44.86 51. 26 35.18
.942
.846
.788
.832
.927 1.011
.995 1. 093
44.58 50. 50 35. 61
.793
.850
.945
.931 1.013
.838
45. 29 51. 21 36. 03 1.002 1.099
.862
.955
.942 1.023
.806
.850
45. 55 51.67 36.16 1.013 1. 110
.958
.810
.866
. 944 1.025
.858
46. 02 51.89 37. 03 1.017 1.112
.959
.867
.944 1.024
.813
.862
46. 27 52. 17 37. 35 1.018 1.113
.874
.973
.815
.951 1.037
.862
45. 52 51.20 37.07 1. 019 1.118
$0. 574
.589
.600
.667
.694
.716
.724
.741
.750
.765
.773
.778
.792
.796
.798
.799
1 Average hourly earnings, excluding the effect of prem ium pay for overtim e.
2 Average hourly earnings, excluding prem ium p ay for overtime, w eighted b y man-hours of em ploym ent
in the major divisions of the m anufacturing in d u stry for Jan u ary 1939.
3 Prelim inary.
i
Com pare T ren d s in F acto ry W ages, 1939-43, M onthly L abor Review , N ovem ber 1943 (pp. 869-884),
especially table 4 (p. 879). For detailed d a ta regarding weekly earnings, see D etailed R eports for Industrial
and Business E m ploym ent, Ju ly 1944, table 6 (p. 889, of this issue).
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Wage and Hour Statistics
843
The shift of workers from relatively low-wage to relatively highwage industries since 1939 would have raised the average earnings of
factory workers, even if no other influences had been present. The
effects of such interindustry shifts have been eliminated from the
averages shown in columns 10 to 12 of the table. If employment had
been distributed between industries as it was in January 1939, the
straight-time hourly earnings of factory workers would have averaged
87.4 cents in July 1944, or 40.3 percent above the corresponding
average in January 1939, 34.9 percent above January 1941, and 11.8
percent above October 1942. Between June 1944 and July 1944 the
rise in straight-time hourly earnings, after eliminating the influence
of shifting employment, amounted to eight-tenths of 1 percent. Even
this latter series of averages exaggerates the rise in wage rates, because
it includes the influence of interplant shifts of employment, merit
increases for individual workers, and premium rates for work on extra
shifts and on holidays.
Farm Incom e and Wages, by Region and Size of
E nterprise, 1939
FARM incomes and wages in 1939 showed an extremely wide range.
About 58,000 farms with value of product of $10,000 or more afforded
average net returns of $8,690 per farm, or $9,611 per “man-equiva
lent’’ family worker. The average wage per man-year of hired labor
on these farms was $595. Actual net returns were substantially
larger when such items as Government payments and rental value
of farm dwellings are included. The large group of 871,000 farms
with value of product of $400-$599 afforded net returns of only $239
per farm, or $240 per “man-equivalent” family worker, and only $166
in wages per man-year of hired labor. More than 7 out of 8 farms
were in value-of-product groups with net returns averaging $880 and
progressively smaller amounts. These and related facts, given in
the report of a study by the U. S. Bureau of Agricultural Economics,1
have a significant bearing on the extent of opportunities that may be
expected after the war in small-scale farming by displaced industrial
war workers and returning soldiers.
There were 6,096,799 farms in the United States in 1939, according
to the Bureau of the Census, and of these, 5,968,755 were classified by
value of product (including value of goods sold, traded, or used by
farm households). The average value of product of the classified
farms was $1,309. There were about 332,000 farms with a value of
product below $100, but many of these did not require full-time work
by the operators, and the value of product was affected in some
instances by crop failures or other temporary circumstances, or by
the classification as farms of certain suburban properties used prima
rily for residential purposes.2 At the other extreme, there were about
58,000 farms with a value of product of $10,000 or more. There
were 4,600,000 farms, or 77 percent of the total, with value of product
of less than $1,500. The extreme differences in the net returns per
“man-equivalent” family worker and in wages per man-year of hired
farm labor are shown in table 1.
1 Differentials in P ro d u ctiv ity and in F arm Incom e of A gricultural W orkers, by Size of Enterprise and
b y Regions, by Louis J. Ducoff and M argaret Jarm an Hagood. W ashington, TJ. S. D epartm ent of Agri
culture, B ureau of A gricultural Economics, 1944. (Mimeographed.)
2 For the definition of a farm for Census purposes, see table 2, footnote 1.
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Federal Reserve Bank of St. Louis
844
Monthly Labor Review—October 1944
T a b l e 1.—N et Farm Income per Family Worker and Wage Income per Hired Farm
Worker, by Size of Enterprise in Terms of Value of Product, 1939 1
Value of product
per farm
N et returns to fam ily labor, capital and
m anagem ent per m an-equivalent
family w orker 2
U nited
States
N o rth N orth
east C entrai South
Wage income per m an-year of hired
labor 3
W est
U nited
States
N o rth N orth
east C entral South
W est
All farm s________
Classified farm s___
$517
528
$710
726
$572
584
$410
417
$795
828
$349
349
$418
418
$431
432
$223
223
$562
563
$l-$99____________.
$100-$249________
$250-$399_________
$400-$599_________
$600-$749_________
$750-$999_________
$1,000-$1,499______
$1,500-$1,999______
$2,000-$2.499______
$2,500-$3,999______
$4,000-$5,999______
$6,000-$9,999______
$10,000 and over___
-1 2 9
29
150
240
321
388
491
640
791
1,082
1, 523
2, 477
9,611
-202
-3 6
90
163
327
384
520
694
886
1,141
1,620
2, 162
9, 586
-224
-8 1
13
101
197
282
424
597
739
1,059
1,583
2, 508
7,821
-3 7
91
202
306
393
476
590
752
937
1,228
1,536
2,741
11, 600
-284
-204
-4 5
-2 5
71
189
319
481
660
925
1,201
2, 432
10,496
176
153
152
166
164
185
240
292
325
367
424
478
595
259
267
289
388
237
203
301
278
320
319
413
511
697
272
217
257
276
261
247
314
353
392
456
495
607
744
121
102
105
115
115
148
175
228
240
260
296
310
392
196
282
272
242
322
292
362
392
428
477
578
660
743
1 For source, see footnote 1 (p. 843). T he averages given in the table are based upon B ureau of the Census
d ata of value of products. T he estim ates do no t include G overnm ent paym ents and for various other rea
sons are m aterially lower th a n the estim ates b y the B ureau of A gricultural Economics. The net income
per m an-equivalent farm family worker for the U nited States as a whole, on the basis of B ureau of Agri
cultural Economics estim ates, was $714 instead of $517. T he lower figures were used because the basic clas
sification of farms which it was necessary to use is in term s of the total value of product as reported by the
B ureau of the Census, and the only feasible procedure was an adjustm ent of the Bureau of Agricultural
Economics d ata to correspond w ith Census figures of value of production. T he prim ary significance of the
estim ates is their showing of com parative net returns b y size of enterprise and by region.
2 Farm operators who were 65 years of age or over or who worked off farms 100 days or more and unpaid
fam ily w orkers were regarded as doing only one-half as m uch farm work as was done b y regular farm -workers.
T he estim ated num ber of fam ily workers averaged 7,836,000, and the adjusted estim ate of “m an-equivalent”
fam ily workers was 5,851,000.
s T he annual wage income per worker, assuming 12 m onths of em ploynent a t the average am ount of
work per week during the 12 reporting weeks.
The net returns to family workers do not include Government
payments, or the rental value of farm dwellings, and for these and other
reasons the estimated aggregate net returns are materially lower than
those regularly made by the Bureau of Agricultural Economics of the
Department of Agriculture.3
The net returns per “man-equivalent” family worker (see table 1,
note 2), including returns on investment, ranged from an average loss of
$129 for farms with value of product of less than $100 to an average
net income of $9,611 for farms with value of product of $10,000 and
over. There were 709,000 farms in the $1,000 to $1,499 group and
the net returns per “man-equivalent” family worker in this group
averaged $491. The averages of the groups totaling 3,891,000 farms
with a value of product below $1,000 were progressively smaller than
$491. In all farm groups with value of product below $2,500 (more
than 7 out of 8 of all farms), the highest net returns per “man-equiv
alent” family worker averaged only $791.
The wage income per man-year of hired farm labor ranged from
$562 in the "West to $223 in the South, the general average being
$349. The highest average wages are, uniformly, on farms with the
largest value of product, but the estimates throw no light on the com3
T he stu d y here summ arized explains in detail the reasons for using the lower estim ate for 1939 as the
only feasible one for a detailed analysis on the basis of farms classified by value of product and by region.
I t is pointed out th a t for comparisons of n et returns b y size of farm and by region, the use of the lower esti
m ate is valid for showing the relationships as distinguished from the absolute levels. The difference is
indicated broadly by the estim ate for the U nited States of net income per farm of $502 on the basis actually
used m the comparisons, and of $693 on the basis of the regular B ureau of A gricultural Economics estim ates.
1 he estim ated average wage on the first basis is $349, and on the second basis, $413.
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Federal Reserve Bank of St. Louis
Wage and Hour Statistics
845
parative status of workers on large and small farms with regard to
such supplementary factors as regularity of employment and value
or perquisites or noncash wages. The Bureau of the Census clas
sifies as farms a considerable number of establishments that are oper
ated primarily not for farming but for residential purposes. This
fact accounts for some of the net losses incurred on farms in the
smaller value-of-product groups. It probably also explains the fact
that the average wage on farms in the smallest value-of-product groups
was somewhat larger than the averages on farms with slightly higher
value of product.
Farm-family workers are members of the families of farm opera
tors, and net returns to these workers therefore include not only com
pensation for their labor, but also returns on their investments,
whether as owners or as tenants. In 1939, the group of farms with
value of product ranging from $2,000 to $2,499 had an average net
return per farm of $880, but there were 5,016,000 farms, or 84 percent
of the total, in groups with smaller value of product and with smaller
average net returns. Thus, in the large group of 871,000 farms with
value of product ranging from $400 to $599, the average net return
was only $239. (See table 2.) A similar situation existed in each of
the nine geographic divisions. The highest average net return for
the $2,000 to $2,499 value-of-product group was $991 in the Middle
Atlantic States, and the lowest was $577 in the Pacific States. The
net returns per farm of farms in the $2,000 to $2,499 value-of-product
group in the East South Central States averaged $899, but the pro
portion of farms in these States in groups with value of product of
$2,500 or more was only 2 percent.
Production on farms with small value of product was predominantly
for home consumption and not for markets. Farm produce consumed
on the farm was valued at approximately the prices farmers received
for such produce when marketed, and the value thus assigned was
much smaller than farmers would have had to pay at retail for similar
items. The retail prices that farmers pay for farm produce are fre
quently much lower than the prices of similar items in urban markets,
where industrial workers must buy similar goods. Another considera
tion bearing on the extremely low estimates of net returns is the fact
that in the study here summarized it was necessary, as already stated,
to use estimates that exclude such items as Government payments
and the rental value of farm dwellings. It should also be noted that
there are certain intangible factors affecting the comparative economic
status of farmers and of industrial workers, notably the security of
tenure and the assurance of at least a subsistence from farming, as
compared with the insecurity of job tenure and uncertainty of wages
of industrial workers.
The study here summarized is limited to the Census year 1939. It
is known that farm income greatly increased during the war. War
time conditions, however, are presumably abnormal, and when light
is sought on post-war farming opportunities for displaced industrial
war workers and returning soldiers, the conditions prevailing in 1939
may have more significance than those accompanying abnormal
wartime demands for farm products.
The extremely small net returns from farming for the vast majority
of farmers in 1939 indicate that additional opportunities in agriculture
for displaced industrial war workers and returning members of the
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Federal Reserve Bank of St. Louis
846
Monthly Labor Review—October 1944
armed forces will be severely limited after the war. This conclusion
is supported by the fact that farm mechanization, improved farming
methods, and advances in the processing and marketing of farm goods
may be expected to conserve labor and progressively increase the aver
age output of farm workers.
T a ble 2. —Number of Farms and Net Returns per Farm, by Geographic Division and
Size of Enterprise in Terms of Value of Product, 19391
Value of product per
farm
N um
ber of
farms
N et
re
tu rn s
per
farm
U nited States
$l-$99________________
$100-$249_________
$250-$399_____________
$400-$599_____________
$600-$749____________
$750-$999_____________
$1,000-$1,499__________
$1,500-$1,999_________
$2,000-$2,499_______
$2,500-$3,999__________
$4,000-$5,999__________
$6,000-$9,999__________
$10,000 and over.. . . ___
332,195
812,810
821, 616
870, 629
479,481
574,094
708,917
416, 081
264,020
375,973
165,679
88, 947
58,313
—$82
22
135
239
' 341
414
537
706
880
1,208
1,679
2, 602
8, 690
South
A tlantic
$l-$99________________
$100-$249_____________
$250-$399_______ ___
$400-$599_____________
$600-$749_____________
$750-$999_____________
$1,000-$1,499__________
$1,500-$1,999__________
$2,000-$2,499__________
$2,500-$3,999__________
$4,000~$5,999__________
$6,000-$9,999__________
$10,000 and o v e r... __
51,944
147,518
166,439
183,829
98,648
110, 773
114,329
50,262
26, 299
29,058
11,176
6,382
4, 769
—$34
65
186
315
439
547
729
890
1,128
1,350
1, 584
1,832
5,858
N um
ber of
farms
N ot
re
tu rn s
per
farm
N ew England
12,083
19, 696
15, 758
13, 460
6,970
8,866
13, 032
9,310
7, 006
11,972
6,842
4,141
2,624
-$101
-1 3
84
89
224
299
491
722
765
1,069
1,669
2,929
8,597
N um
ber of
farms
N et
re
turns
per
farm
M iddle
A tlantic
N um
ber of
farms
N et
re
turns
per
farm
E ast N orth
Central
22, 502 -$112
40,820
-2 8
33,141
60
33,170
149
19, 989
336
27, 737
377
43,859
514
31,730
749
22, 458
991
34,964 1,325
16, 405 1,764
8, 558 2,129
4,668 8, 267
58,009
101,909
83, 976
95, 664
63, 667
94, 760
153,073
106,612
68,971
94, 916
37,460
16, 425
7,033
E ast South
C entral
W est South
C entral
iviouniam
62,979
218,150
222,481
207, 353
93,290
84,093
64, 299
22, 778
10,720
12, 701
5,175
2, 963
1,795
45,811 —$43
52
138, 388
165,862
180
182,038
313
94, 619
433
99, 953
498
96, 237
589
42,833
750
22,974
950
29,357 1,068
13,452 1,450
8,512 2,563
7,055 10, 458
16,578
27,019
21,862
21,726
13, 345
18,301
26,967
18,535
12,987
21,135
11,342
7, 741
7,036
—$7
98
210
334
456
568
692
861
899
1,290
1,307
1,979
4,015
-$122
-3 9
54
151
248
348
537
758
912
1,292
1,838
3,037
8,646
-$148
-131
-2 8
-6 7
-1 5
134
314
559
758
1,096
1,504
2,948
9, 714
N um
ber of
farms
N et
re
turns
per
farm
W est N orth
C entral
42,714
86,861
84,519
106, 897
74,053
109,974
168, 630
114,446
78,346
116,971
49,101
22, 704
11,500
-$143
-7 7
-3 3
41
150
244
403
.603
801
1,203
1,872
2,869
7,736
macine
19, 575 -$193
32,449 -145
27, 578 -3 7
26,492
18
14,900
136
19,637
203
28,491
304
19, 575
354
14, 259
577
24,899
861
14, 726 1,091
11,521 2.071
11,833 10,016
1 For source, see footnote 1 (p. 843).
T he n u m b er of farms th a t were classified b y value of product was 5,968,755. T he total num ber of farms
was 6,096,799. According to the Census of 1940, covering the year 1939, a farm was “ all the land on which
some agricultural operations are performed by one person, either by his own labor alone, or w ith the assist
ance of members of his household, or hired employees. T he land operated b y a partnership is likewise
considered a farm .” A ny tract of land of less th an 3 acres was not reported as a farm unless its agricul
tu ra l products were valued a t $250 or more.
N et retu rn s per farm include retu rn s for family labor, managem ent, and capital. N et returns are com
puted by deducting production costs, including wages paid to hired farm workers. The estimates of net
returns used in this table are lower th a n the regular estim ates made b y the B ureau of A gricultural Economics
for reasons stated above (table 1, note 1), b u t a comparison of net returns b y region and b y size of enterprise
is valid w hether th e larger or the smaller estim ate of aggregate net returns is used.
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Federal Reserve Bank of St. Louis
Wage and Hour Regulation
C ertain Absences Excusable in Com puting Prem ium Pay
CERTAIN types of absences from work are deemed excusable in
computing premium pay for the sixth and seventh days of work,
the National War Labor Board stated on September 8, 1944.1 The
list includes absences on certain designated holidays or for State
guard service, sickness, accident, or major transportation disruption.
The Board also held that union representatives who are absent
from the job while investigating and adjusting grievances are to be
given credit for time worked. They are to be credited with time
worked in computing premium pay for the sixth consecutive workday
if they were absent for all or part of a day, but in computing premium
pay for the seventh consecutive day they are to be credited for time
worked only if they were absent part of a day.
Wage Increase for Canadian R ailroad W o rk e rs2
A GENERAL increase of 6 cents per hour, .plus a 9-cent cost-ofliving bonus, was authorized on July 34, 1944, by the Canadian
National War Labor Board, for practically all categories of railway
workers. The award was retroactive to September 15, 1943, for
the 16 standard railway brotherhoods; to March 3, 1943, for the
Brotherhood of Maintenance of Way Workers; and to May 25, 1943,
for the Brotherhood of Railway Employees. The retroactive wages
will amount to substantial additional lump-sum payments for the
workers. In requesting wage increases, the unions claimed that
their rates of pay should equal the much higher rates in the United
States, and that railway pay rates had been stabilized during a period
when rates in other Canadian industries had increased. The Board
refused to accept the thesis that Canadian wage rates should be
equal to those in the United States, but admitted that railwaymen’s
rates had not risen over recent years to an extent comparable to rises
in other industries. The order gave most railway workers increases
amounting to nearly 50 percent of their demands. Up to mid-August
no increases had been made under the awara, pending decision by the
War Labor Board as to whether cost-of-living bonuses were to be
considered as included in “ basic wage rates.” Increases were not
authorized in cases in which the basic wage rates had been increased
since August 1939. Early board action was expected.
1 Press release, B-1738.
2 D ata are from reports by John W . T uthill, vice consul, and H . M . B ankhead, commercial attache,
U n ited States E m bassy, O ttaw a, A ugust 2 and 8,1944 (Nos. 234 and 242): and Labor (W ashington, D . C.).
A ugust 19, 1944.
’
847
610054— 44------ 12
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Federal Reserve Bank of St. Louis
848
Monthly Labor Review—October 1944
M inim um Wages for C onstruction W orkers in C u b a 1
MINIMUM wages for the three principal classifications of construc
tion-industry laborers in Cuba were set August 11, 1944, by the Na
tional Minimum Wage Commission, at figures ranging from 4 pesos 2
per 8-hour day for masons in Habana, tt> 2 pesos for helpers in other
cities and in nonurban localities. The new regulation (agreement
No. 62) supersedes a presidential decree of 1941 and the Minimum
Wage Commission’s order of July 6, 1944, which increased wages
established by the same Commission on June 21, 1937.
The regulation of August 11, 1944, states that because of the high
cost of living the laborers had urged wage increases and that the em
ployers were disposed to grant them. The vTage schedules set for the
8-hour day in different population areas were as follows:
Habana
(in pesos)
M asons_____(___________________
C arpenters______________________
H elpers_________________________
Provincial
capitals and
cities above
25,000
(in pesos)
4. 00
4. 00
2. 50
Towns of
25,000 or less
and nonurban
(in pesos)
3. 30
3. 30
2. 00
3. 20
3. 20
2. 00
Wage Rates and H ours U nder B ritish Trade-Board
System
GENERAL minimum hourly time rates of pay have been established
in a number of industries in Great Britain under the Trade Boards
Acts, and the Ministry of Labor and National Service recently issued
the following table 3 showing the authorized minimum rates of pay
by sex, the ages at wbich workers are entitled to receive such payments,
and the normal weekly hours of work during which the rates are pay
able. Trade boards were established to protect workers in the lessorganized trades against employment at unduly low wages.
Hourly Time Rates of P ay and Normal Weekly Hours, by Trade and Sex, under Trade
Boards, 1944
M inim um hourly tim e rates of p a y 1
Trade
A erated waters (E ngland and W ales)___________
A erated w aters (Scotland):
O rkney and Shetland Islands________ _
O ther p arts __ __ . . _____________ . .
Baking:
England and W ales__________ ____ ___
Scotland 6_______ .•________________
Boot and floor polish____________ _
Boot and shoe repairing________________________
B rush and broom 6. . . . ___ __ .
B u tto n m anufacturing. _ ______________
C hain 9_________________ _
Coffin furniture and cerem ent m aking:
Coffin fu rn itu re 6 .
C erem ent m aking . . .
...
N ormal
weekly
hours
Males
Females
Pence 2
18 H
Pence 2
3 11%
48
4 8%
4 9%
48
48
15
16
1644-18%
5 15)4-16%
18%
19%
13%
17%
17%
io 151447
3 11%-12%
10%-11%
7 12
8 14%
8 8%
10%
72%o
8 10% 7
n 10%
48
48
48
48
48
48
47
47
See footnotes at end of table.
1 D ata are from report of Charles H . D ucoté, commercial attaché, H abana, A ugust 19, 1944 (No. 7710)
enclosing copy of agreem ent No. 62 from G aceta Oficial, A ugust 16, 1944 (No. 451).
2 Average exchange rate of C uban peso= $l in U nited States currency.
3 M in is t r y of L a b o r G a z e tte (L o n d o n ), J u ly 1944.
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Federal Reserve Bank of St. Louis
849
Wage and Hour Statistics
Hourly I ime Rates of P ay and Normal Weekly Hours, by Trade and Sex, under Trade
Boards, 1944— Continued
M inim um hourly tim e rates of p a y 1
Trade
C o r s e t_________________________ _____ ____ ___________________
C o tto n -w a s te r e c la m a tio n :
E n g la n d a n d W a le s _______________________________
S c o tla n d ________________________________
C u t le r y _________________________________________
D r e s s m a k in g a n d w o m e n ’s lig h t c lo th in g (E n g la n d a n d
W a le s):
R e t a il c u s to m d r e s s m a k in g ______ ___________ _______ _
O th e r b r a n c h e s _____________________________________
D r e s s m a k in g an d w o m e n ’s lig h t c lo th in g "(Scotland) :’
R e t a il b r a n c h __________________ _______________________
O th e r b r a n c h e s _________________________________ I .........
D r ift-n e t m e n d in g __________________________________
F la x a n d h e m p ____________________________
F u r ____________________________________________
F u r n itu r e m a k in g «______________________ I ________ ’
F u s t ia n m a k in g ____________________________________
G e n e ra l w a s te -m a te r ia ls r e c la m a tio n _________ ____________
H a ir , b a ss , a n d fib er
_______________________________
H a t , ca p , a n d m illin e r y (E n g la n d a n d W a le s ) ______
H a t , ca p , a n d m illin e r y (S c o tla n d ):
W h o le s a le c lo th h a t a n d c a p ___________________________
O th e r b r a n c h e s ___________________________________
H o llo w w a r e ____________________________________________
J u t e ____________________________________________ "
K e g a n d d r u m ____________________________________ ~
L a c e fin is h in g W . __________________________________I I I I I I I I
L aundry:
C o r n w a ll a n d N o r t h o f S c o t la n d _____________________ .
O th e r p a r ts o f G r eat B r it a in ___________________________
L in e n a n d c o tto n h a n d k e r c h ie fs a n d h o u s e h o ld g o o d s
a n d lin e n p ie c e g o o d s _________________________________
M a d e -u p te x tile s 6____________________________________ ~
M ilk d is tr ib u tio n :
E n g la n d a n d W a le s _____________________________________
S c o tla n d ____________________________________________
O strich a n d fa n c y fe a th e r a n d a r tific ia l flo w e r ____
P a p e r b a g _______ __________________________________
P a p e r b o x ________________________________________ I I I - I I I I I I
P e r a m b u la to r a n d w h e e l c h a ir _____________________________
P i n , h o o k a n d e y e , a n d sn a p fa s te n e r ______________________
R e a d y -m a d e a n d w h o le s a le c u s to m ta ilo r in g ______________
R e t a il c u s to m ta ilo rin g :
E n g la n d a n d W a le s _________________ ___________________
S c o tla n d ________________________ __________ _____ ________
R o p e , t w in e , a n d n e t:
N e t s e c t io n ______________________________________________
O th e r s e c t io n s ______________________ _______
R u b b e r m a n u fa c tu r in g _____________________________________
R u b b e r r e c la m a tio n _________________________________________
S a c k a n d b a g ________________________________________________
S h ir tm a k in g ______________________ __________________________
S ta m p e d or p r e sse d m e ta l w a r e s ___________________________
S u g a r c o n fe c tio n e r y a n d fo o d p r e s e r v in g ___________________
T i n b o x _______________ ________ ______________________________
T o b a c c o 5_____________ ________ ____________________
T o y m a n u fa c tu r in g _______________________________________
W h o le s a le m a n t le a n d c o s t u m e _______________________ _____
M ales
Females
Pence 2
1218
Pence 2
10)4
17
17
19
10
9%
«12%
N orm al
weekly
hours
48
48
48
48
12 17
12 17
5 9)4,10,10%
10%
48
48
12 17
12 17
5 9%, 10)4
10
13 7
10%
3 10
3 11
7%
9%
8)4
10%
48
48
44
48
48
47
48
48
48
48
10%
5 9%, 10
11)4
102%s
»13%
7%o
46
46
47
48
47
17)4,
17)4
18
4412)4
15 %
13%
12 17
12 17%
12 17%
18)4
162%4s
18%
18)4
18)4
17%
144%o
5 16,18, 18%
1(5%6
4213
19)45
18)4 s
818
19
42 16%
48 14)4-20)4
46 122%o-15%
16%
17
17)4
17)4
17)4
4218%
17
17%
19%
1 9 4» % 9 2
17%
4216%
4 10%
4 11)4
10%
83%o
48
48
48
48
7 10%, 11%, 12%
8 10%
8
11
11
5 12
8 11%
10%
48
48
48
45
45
48
47
48
18 9%-12)4
46 8% 0-9
48
48
11%
11%
8 11%
8 11)4
102%o
10%
11)4
810%
12%
122%4
5 11%
10%
48
48
48
48
48
48
47
48
48
48
48
48
1 R ates cover males at th e age of 21 years and females at th e age of 18 years, unless otherwise specified.
2 Official exchange rate of penny in 1944=1.68 cents.
3 Payable at 19 years of age.
4 P ayable at 20 years of age.
5 R ate varies w ith area.
* In this trade, rates vary in accordance w ith changes in official cost-of-living index.
7 Payable a t 21 years of age; ra te varies w ith area.
8 P ayable at 21 years of age.
9 R ates vary in accordance w ith changes in official cost-of-living index. M inim um rates are n o t fixed by
sex; rates shown are for work norm ally performed b y m en and women, respectively.
10 P ayable after specified period in trade.
11 P ayable at 24 years of age, after specified period in trade.
12 P ayable a t 22 years of age.
13 P ayable after specified period in trade.
14 Payable at 18 years of age.
15 M inim um rates are no t fixed b y sex; rates shown are for work norm ally performed.
16 R ate varies w ith area; payable after specified period in trade.
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Federal Reserve Bank of St. Louis
850
Monthly Labor Review—October 1944
Most trade boards have also fixed, for various classes of qualified
workers, higher minimum time rates than are shown in the table.
Similarly, they have established lower time rates for juvenile workers,
based on age, or experience, or a combination of both. In some
cases, boards have made the payment of learners and apprentices at a
scale below the general minimum contingent on observance by em
ployers of conditions considered necessary for securing effective in
struction. Approximately a fourth of the boards have established
minimum piece-work rates of pay. However, the majority of the
boards have fixed piece-work-basis time rates, that is, rates that take
the place of the general minimum time rate as the basic rate for piece
workers who are not subject to a general minimum piece-rate schedule.
Lacking such a schedule, piece workers must be paid at a piece rate
sufficient to yield an ordinary worker as much pay as would be re
ceived if he were covered by a piece-work-basis time rate. The piece
work-basis time rates are slightly above the general minimum time
rates. Certain boards have adopted a guaranteed time rate for
piece workers that is sufficient to insure them a minimum amount
for the time employed, in case their piece-work earnings fall below the
guaranteed minimum. Other boards specify that an ordinary piece
worker shall receive at least the general minimum time rate if no
minimum piece rates or piece-work-basis time rates have been
established.
With the exception of the two industries appearing in the table for
which no scheduled weekly hours are shown, the trade boards fixed the
workweek. For hours beyond the weekly limits listed in the table,
extra wages were paid. Nearly all boards also specified daily hours,
including the hours on Saturday or any other short day of work,
beyond which overtime rates were prescribed. The prevailing over
time rate of pay is time and a quarter for the first 2 hours and time
and a half for subsequent hours worked. With few exceptions,
double time is payable for work on Sundays and public holidays.
Under the terms of the Holidays with Pay Act of 1938, trade boards
are empowered to direct that a vacation with pay, not to exceed 1
working week per year, shall be granted to any worker for whom a
minimum rate of wages has been fixed. Accordingly, with few ex
ceptions, the industries covered by the trade-boards legislation are
subject to orders requiring that a paid vacation of 6 consecutive days
shall be granted to workers annually. In the milk-distributive trade
the vacation period is 7 days. The trades for which no directions
governing paid vacations have been issued are jute, flax and hemp,
lace finishing, and mending of drift nets. Jute and flax and hemp
workers receive paid vacations under the terms of collective agree
ments. Workers engaged in lace finishing and drift-net finishing are
female homeworkers chiefly, who do not work on the employers’
premises.
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Federal Reserve Bank of St. Louis
Cost o f Living and Retail Prices
Cost of Living in Large Cities, A ugust 1944
HIGHER prices for clothing and seasonally higher prices for eggs
were chiefly responsible for the 0.2-percent increase in average retail
prices of living essentials between mid-July and mid-August.
During the 5 years of the war in Europe, prices of goods important
in the purchases of moderate-income families have increased 28 per
cent, contrasted with the 73-percent rise in the corresponding period in
1914-19. About a tenth of the advance during the present war
occurred in the year ending August 15, 1944.
During the month ending in mid-August, average prices of all
major groups of foods except eggs either decreased or remained
unchanged, but the 7-percent seasonal advance in egg prices more
than offset these other declines in the cost of foods. Fresh fruits and
vegetables showed the greatest decrease during the month. Seasonal
price declines of 19 percent for apples, approximately 10 percent for
onions, and 9 percent for sweetpotatoes were greater than the increases
that took place in the prices of green beans, cabbage, spinach, carrots,
lettuce, and white potatoes. Other food groups showed only minor
changes. Declines in beef and pork prices, unusual at this time of
year, together with a 1-percent decrease in prices of roasting chickens,
resulted in a slight drop for meats and fish as a group.
Higher prices for women’s winter cloth coats were chiefly account
able for the 0.7-percent rise in clothing costs between mid-July and
mid-August. The increase in the Federal excise tax on furs, which
became effective during the spring, contributed to the advance for
fur-trimmed coats; and disappearance of lower-priced lines, especially
of untrimmed sport coats, was also a factor. Retailers generally
reported that the quality of woolen fabrics in this year’s coats is
better than in those of last year. Small increases for some other
clothing resulted primarily from unavailability of the lower-priced
lines.
The cigarette shortage was reflected in price advances in several
cities, as more retailers limited sales to one pack to a customer, thus
removing the saving resulting from purchases of two packs at a time.
Newspaper prices rose in New York City. Scattered increases in
housefurnishings brought average costs up 0.1 percent above the level
of July 15. Fuel, electricity, and ice charges on the average remained
unchanged. Rents are surveyed only during the quarterly months
of March, June, September, and December, and are not available for
August.
In connection with the figures herein given, it should be borne in
mind that the Bureau of Labor Statistics index indicates average
changes in retail prices of selected goods, rents, and services bought by
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Federal Reserve Bank of St. Louis
851
Monthly Labor Review—October 1944
852
families of wage earners and lower-salaried workers in large cities.
The items covered represent 70 percent of the expenditures of families
who had incomes ranging from $1,250 to $2,000 in 1934-36.
The index does not show the full wartime effect on the cost of living
of such factors as lowered quality, disappearance of low-priced goods,
and forced changes in housing and eating away from home.
It does not measure changes in total “living costs” —that is, in the
total amount families spend for living. Income taxes and bond sub
scriptions are not included.
T a ble 1.— Cost oj Living in Large Cities, August 15, 1944, and Previous Dates
Indexes > (1935-1939=100.0) of—
D ate
All items
1939: A ugust 15---------------1941: Jan u ary 15_________
1942: M ay 15_ ______ ____
September 15_____ __
1943: A ugust 15____ _____
1944: Ju ly 15-------------------A ugust 15________ _
Clothing
Food
93.5
97.8
121.6
126.6
137.2
137.4
137.7
98.6
100.8
116.0
117.8
123.4
126. 1
126.3
100.3
100. 7
126.2
125.8
129.6
138.2
139.1
R ent
104.3
105. 0
109.9
108.0
108.0
0)
(2)
Fuel,
Houseelectricity, furnishings
and ice
97.5
100.8
104.9
106.2
107.6
109.8
109.8
100.6
100.1
122.2
123.6
125.9
138. 5
138.7
M iscel
laneous
100.4
101.9
110.9
111.4
116.5
121.8
122.0
1 Based on changes in cost of goods purchased b y wage earners and lower-salaried workers.
2 R ents surveyed a t quarterly dates: M ar. 15, Ju n e 15, Sept. 15, and Dec. 15.
T a ble 2. —Percent of Change1 in Cost oj Living in Large Cities in Specified Periods, by
Groups of Items
Period
All
items
Ju ly 15, 1944, to Aug. 15, 1944_____ + 0 .2
Aug. 15, 1943, to Aug. 15, 1944_____ + 2 .4
Sept. 15,1942, to Aug. 15, 1944 ____
+ 7 .2
M ay 15,1942, to Aug. 15, 1944_____ + 8 .9
Jan. 15, 1941, to Aug. 15, 1944 _____ +25.3
Aug. 15,1939, to Aug. 15, i m _____ +28.1
Food
C loth
ing
+ 0 .2
+• 4
+ 8 .8
+13.2
+40.8
+47.3
+ 0 .7
+ 7 .3
+10.6
+10.2
+38.1
+38.7
Fuel,
R e n t2 electricity,
and ice
Housefurnishings
0
+ 2.0
+ 3.4
+ 4.7
+ 8.9
+12.6
+0.1
+10.2
+12.2
+13. 5
+38.6
+37.9
(3)
+0.1
+ .1
- 1 .6
+ 3 .0
+ 3 .6
1 Based on changes in cost of goods purchased by wage earners and lower-salaried workers.
2 Changes through June 15,1944.
3 R en ts surveyed at q uarterly dates: M ar. 15, June 15, Sept. 15, and Dec. 15.
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Federal Reserve Bank of St. Louis
M iscel
laneous
+ 0 .2
+ 4 .7
+9. 5
+10.0
+19.7
+21.5
853
Cost of Living and Retail Prices
T a b le 3. —Percent of Change 1 in Cost oj Living July 15, 1944-Aug. 15, 1944 by Cities
C ity
Average: Large cities_________________
N ew England: B oston___
M iddle A tlantic:
B uffalo-- _____ ________ _____ -New Y ork-- „
_
Philadelphia.Pittsb u rg h - _____ _________ __ E ast N o rth Central:
Chicago_________________________ _C incinnati_______________________
C leveland______ __________
D e tro it___________________________ _
W est N orth Central:
Kansas C ity ________________
M inneapolis_____ ________________ _
St. Louis____ ______ ___________ ___
South A tlantic:
B altim ore __________________ -_
Savannah,. ____________________
W ashington, D . C ________
E ast South C entral: B irm ingham ________
W est South Central: H ou sto n _________
M ountain: D enver . .
Pacific:
Los Angeles___________ _ ______ _ _
- _
____
San F ran c isco ____ . .
Seattle.-- ______ . . . . . . _________ __
Fuel, elec HousefurC loth tricity,
and
ing
nishings
ice
All
items
Food
20+ . 2
3 + 0 .2
4 + 0 .7
30
4 +0.1
4 + 0 .2
+ .3
+• 2
+ 1 .0
0
+ .6
+ .4
-.2
+ .6
+ .5
+ .8
- .7
+ .6
+ 1 .0
+ 1 .5
+ .4
+ .8
+ 1 .2
0
+ .1
0
0
0
+ .1
+ .2
+ .4
0
+ .6
0
0
-.4
-.5
0
-.4
- 1 .1
-1 . 7
-.2
- 1 .5
+ .5
+ .7
+.G
+1.1
0
+ .1
+ .3
0
+• 1
+ .7
+ .1
-.1
0
+ .4
0
0
-.2
- .2
-.5
- 1 .0
-.6
- 1 .3
+ 1.0
+ .1
+ .4
0
0
0
+ .2
0
-. 1
0
+ .2
0
+ .2
+ .6
+ .5
+ 1.2
+ .2
-1 .0
+ .3
+ 1.2
+1.3
+ 2 .8
+ .6
- 2 .5
+ 1.0
+ .6
+ .1
+ -8
+ .4
+ .5
+ .1
+ .2
+ .1
+ .2
0
0
+ .1
0
0
+ 1.0
0
+ .1
0
0
+. 1
0
+.1
0
+ -9
+ .1
+ .1
+ 1 .9
0
_ #2
+ .4
+ -6
+ .8
0
0
+ 1.1
0
+ .3
+ .1
M iscella
neous
,
0
0
0
1 Based on indexes of cost of goods purchased b y wage earners and lower-salaried workers.
2 Rents surveyed at quarterly dates: M ar. 15, June 15, Sept. 15, and Dec. 15.
3 Based on prices for 56 cities collected on T uesday nearest the 15th of the m onth.
4 Based on d ata for 21 cities.
5 Based on d ata for 34 cities.
Ta
b l e
4.—Percent of Change 1 in Cost of Living in Specified Periods, by Cities
C ity
Aug. 15,
1943, to
Aug. 15,
1944
Aug. 15,
1939, to
Aug. 15,
1944
Jan. 1,
1941, to
Aug. 15,
1944
M ay 15,
1942, to
Aug. 15,
1944
Sept. 15,
1942, to
Aug. 15,
1944
Average: Large cities-
+ 2 .4
+28.1
+25.3
+ 8 .9
+ 7 .2
N ew England: Boston
_
_ _ _
M iddle A tlantic:
Buffalo____
____________________
N ew Y ork_____
___ ___
Philadelphia_____ _____ _ _ ______
P ittsb u rg h --. _ ___________________
E ast N o rth C entral:
Chicago____ - _ _
Cincinnati- . .
_
Cleveland........ ...
.......................D etro it____________________________
W est N o rth C entral:
K ansas C ity_______________________
M inneapolis___________________ ____
St. L o u i s . ........ ............ .........
South A tlantic:
B altim ore______ ________ _____ -.------------- Savannah.
W ashington, D . C _____ . ______ E ast South C entral: B irm ingham . ______
W est South C entral: H ouston, . . . _____
M ountain: D enver.
________ _______
Pacific:
Los A ngeles.. _____ _________ ______
San F ra n c is c o ______ ______________
Seattle ___________________________
+ 2 .3
+26.5
+23.9
+ 8.3
+ 5 .7
+ .6
+ 3 .5
+ .5
+ 3 .2
+28.1
+28.4
+28.3
+29.9
+23.8
+25.8
+26.5
+26.3
+ 4.7
+12.2
+ 9 .4
+10.4
+ 4.7
+ 9.3
+ 7.4
+ 8.8
+ 2 .2
+ 1 .9
+ 1 .8
+ 2 .2
+27.3
+29.9
+30.3
+29.2
+24.1
+26.9
+27.7
+26.0
+ 7 .8
+9.1
+ 9.7
+ 7 .2
+7.1
+ 7.1
+ 8 .9
+ 7 .5
+ 2 .6
+ 1 .7
+ 1 .8
+25.7
+23.2
+27.3
+25.9
+20.6
+23.7
+ 8 .6
+ 6 .0
+ 8 .0
+ 8 .0
+ 4.1
+ 7.1
+ 2 .4
+ 2 .6
+ 1 .5
+ 4.1
+ 2 .2
+ 3 .0
+30.3
+36.5
+26.7
+33.8
+23.8
+26.5
+27.7
+33.6
+25.0
+29.7
+22.3
+24.7
+ 8.8
+12.1
+ 8 .9
+11.0
+ 7 .3
+ 7 .9
+ 7.3
+11.0
+ 6.7
+10.9
+ 5 .7
+ 6 .4
+ 2 .3
+4.1
+ 3 .0
+27.0
+30.3
+29.2
+24.5
+27.1
+26.9
+ 8 .0
+10.0
+ 6 .9
+ 4 .8
+ 7 .0
+ 5 .6
1 Based on indexes of cost of goods purchased by wage earners and lower-salaried workers.
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Federal Reserve Bank of St. Louis
854
Monthly Labor Review—October 1944
T a ble 5.— Indexes of Cost of Living in Large Cities, 1935 to August 1944
Indexes 1 (1935-39=100) of cost of—
Y ear and m onth
All items
1935_____________________
1936_____________________
1937_____________________
1938_____________________
1939_____________________
1940_____________________
1941_____________________
1942_____________________
1943_____________________
1944:
J a n . 15_______________
Feb. 15______________
M ar. 15______________
A pr. 15_____ _______
M ay 15__ ___________
Ju n e 15________ ____
Ju ly 15______________
Aug. 15_____________
Food
Clothing
Fuel, elec
HouseR e n t2 tricity, and furnishings
ice
M iscel
laneous
98.1
99.1
102.7
100.8
99.4
100.2
105.2
116.5
123.6
100.4
101.3
105.3
97.8
95.2
96.6
105. 5
123. 9
138.0
96.8
97.6
102.8
102. 2
100.5
101.7
106.3
124.2
129. 7
94.2
96.4
100.9
104.1
104.3
104.6
106.2
108. 5
108.0
100.7
100.2
100.2
99.9
99.0
99.7
102.2
105.4
107.7
94.8
96.3
104.3
103.3
101.3
100.5
107.3
122.2
125.6
98.1
98.7
101.0
101.5
100.7
101.1
104.0
110. 9
115.8
124.2
123.8
123.8
124.6
125.1
125.4
126.1
126.3
136.1
134.5
134.1
134.6
135.5
135.7
137.4
137.7
134.7
135.2
136.7
137.1
137.4
138.0
138.2
139.1
108.1
108.1
108.1
108.1
108.1
108.1
(2)
(2)
109.5
110.3
109.9
109.9
109.8
109.6
109.8
109.8
128.3
128.7
129.0
132.9
135.0
138.4
138.5
138.7
118.4
118.7
119. 1
120.9
121.3
121. 7
121.8
122.0
1 Based on changes in cost of goods purchased b y wage earners and lower-salaried workers.
2 R ents surveyed at quarterly dates: M ar. 15, June 15, Sept. 15, and Dec. 15.
R eta il P rices o f F ood in A ugu st 1 9 4 4
PERCENTAGE changes in retail food costs on August 15, 1944, as
compared with costs in the previous month and in August 1943, are
shown in table 1.
T able 1.—Percent of Change in Retail Costs of Food in 56 Large Cities Combined,1
by Commodity Gioups, in Specified Periods
Sept. 15,
1942, to
Aug. 15,
1944
Jan. 14,
1941, to
Aug. 15,
1944
+ 0.4
+ 8.8
+40.8
+47.3
+ .4
-.5
-.6
- 2 .0
-.2
+ 1.8
-2 . 1
+• 1
- 4 .8
+ 3.4
+ 4.1
-.7
+ 3.2
- .8
- 3 .0
-.1
+ 2.9
- 1 .2
- 5 .9
- 9 .7
+• 7
+12.0
+17.7
+ 4.6
+ 2.7
+35. 4
+43.2
+ 4.4
+15.1
+ .4
+1-7
- .4
+14.3
+27.6
+ 8.4
+30. 1
+36.5
+54.1
+66.8
+27.1
+63.7
+88.2
+99.8
+41.5
+65.7
+36.7
+52.8
+32.7
+16.2
+34.8
+19.1
+27.3
+36.3
+58. 4
+98.8
+43.5
+75.7
+90.0
+101.1
+41.2
+82.7
+31.0
+45.2
+32.3
Ju ly 18,
1944, to
Aug. 15,
1944
Aug. 17,
1943, to
Aug. 15,
1944
All foods______________________ ______ __________
+ 0 .2
Cereals and bakery products_____________________
M eats____________ ____________________________
Beef and v eaL ._____ _________ _____________
P o rk ____ _____ _
. . . _ .................
.
L a m b ______________________________________
C hickens____________ _____ _______________
Fish, fresh and canned____________ __________
D airy products______ __________________________
Eggs__----- --------------------------------------------------------F ru its and v eg etab les________________ ____
_
Fresh_______________________________________
C anned_____________________________________
D ried______ __________ _____________________
Beverages________
_______________ _ ---------- -F ats and oils____________________________________
Sugar and sw eets___________________________ ____
-. 1
-.2
-. 1
-. 1
-.2
-1 . 1
+ .3
0
+ 7.1
-.7
- 1 .0
+ .2
+ .2
0
-.2
-.1
C om m odity group
Aug. 15,
1939, to
Aug. 15,
1944
i
T he num ber of cities included in th e index was changed from 51 to 56 in M arch 1943, w ith the necessary
adjustm ents for m aintaining com parability. A t the same tim e the num ber of foods in the index was
increased from 54 to 61.
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Cost oj Living and Retail Prices
855
T a ble 2.— Indexes of Retail Costs of Food in 56 1 Large Cities Combined,2 by Commodity
Groups, on Specified Dates
[1935-39 = 100]
1944
1943
1942
1941
1939
Aug. 17
Sept. 15
Jan. 14
Aug. 15
C om m odity group
Aug. 15 3
All foods.
_
_
Ju ly 18
_____
137.7
137.4
137.2
126.6
97.8
93.5
Cereals and bakery p ro d u c ts ___ ___
M eats. .
___________ ________
Beef and veal__
P o rk ___ ____ . . . . . . .
Lamb__ . . . . . .
C hickens. . .
..
...
Fish, fresh and canned..
_______
D airy p ro d u c ts ...
Eggs--------------------------------------------------F ruits and vegetables. _
. . .
..
F r e s h . . ___
. .....
C anned__ .
D rie d ...
_ _
...
^
_ _
......
B everages. ___
F ats and oils__ ________ ._
. . .
Sugar and sw eets___
_ _ _ _______
108.5
129.0
118.6
112.0
134.7
149.8
198.0
133.6
159.4
175.6
186.6
129.3
165.0
124.3
122.7
126.5
108.6
129.3
118.7
112.1
135.0
151.4
197.5
133.6
148. 9
176.9
4 188. 4
129.0
164.6
124.3
122.9
126.6
108.1
129.7
119.3
114.3
135.0
147.2
202.2
133.4
167.4
169.8
179.3
130. 2
159.9
125.3
126.5
126.6
105.4
130.6
126.0
124. 0
133.7
133.7
168.2
127.7
155. 2
129.7
130. 3
123.8
143.4
123.8
120.7
127.0
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
93.4
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
1 Indexes based on 51 cities combined prior to M arch 1943.
2 Aggregate costs of 61 foods (54 foods prior to M arch 1943) in each city, weighted to represent total p u r
chases of families of wage earners and lower-salaried workers, have been combined w ith the use of population
w eights.
3 Prelim inary.
4 Revised.
T a b le 3. — Indexes of Average Retail Costs of A ll Foods, by Cities,1 on Specified Dates
[1935-39 = 100]
1944
1943
1941
1939
Aug. 17
J a n . 14
Aug. 15
C ity and regional area
Aug. 15 2
U nited S tates_____ ______ _ ___________
N ew England:
B oston____________________________
B ridgeport__________ _____________
F all R iv er___ _ ______ _ __________
M a n c h e s te r ,__
__
_ __
N ew H av en ,
_ _ _ _ ,, _
Portland, M ain e___
Providence,, ,
___ _ _
M iddle A tlantic:
Buffalo____
____________________
N ew ark__
N ew Y ork,
____
P hiladelphia_______________________
P ittsb u rg h __ ____ ________________
R ochester__
,
_ _
S cranton___
_
_ ___
E ast N o rth C entral:
Chicago________ ______ . . . _ . . . . .
C incinnati_________________________
C leveland____________________ . . . .
C olum bus, O h io ___________________
D etro it. ___________ _________ _ _
Indian ap o lis...
M ilw au k ee.. ________ . . . ............... .
Peoria_____________________________
Springfield, 111_____________________
W est N o rth C entral:
Cedar R apids 3. .
K ansas C ity _____________ ___ _ __
M inneapolis_____________ ____ _ _.
O m aha_______ ______ ______ _ __
St. L o u is ...
.
. . . . ___
St. P a u l... ________________________
W ic h ita 3_____________ . . . .
. .
See footnotes at end of table.
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Ju ly 18
137.7
137.4
137.2
97.8
132.2
135.1
132.3
135.0
136.0
136.5
136.8
131.9
135.5
132.9
135.3
135.3
135.1
135.5
131. 1
135. 2
134.0
133.7
136.7
133.6
135.0
95.2
96.5
97.5
96.6
95.7
95.3
96.3
93.5
93.2
95.4
94.9
93.7
95.9
93.7
134.0
138. 4
138.9
136.1
138.7
133.0
138.8
135.0
139.2
138.1
134.8
136.7
133.8
138.6
137.9
139.0
137.2
135.3
137.8
133.1
137.5
100.2
98.8
99.5
95.0
98.0
99.9
97.5
94.5
95.6
95.8
93.0
92.5
92.3
92.1
137.1
136.8
144.3
130.2
134.4
134.4
136.4
141.1
142.5
138.6
139.2
144.6
129.2
136.5
134.6
137.4
140.4
144.2
136.4
137.6
145.2
131.6
134.8
135.1
134.4
141.2
142.1
98.2
96.5
99.2
93.4
97.0
98.2
95.9
99.0
96.2
92.3
90.4
93.6
88.1
90.6
90.7
91.1
93.4
94.1
139.1
131.2
130.5
129.7
140.1
128.5
147.8
140. 5
132.5
131.3
130.4
141.9
129.6
148.4
138. 0
131.7
130.4
130.8
140.2
• 128.9
146.2
95.9
92.4
99.0
97.9
99.2
98.6
97.2
91.5
95.0
92.3
93.8
94.3
93.5
856
Monthly Labor Review—October 1944
T a ble 3. — Indexes of Average Retail Costs of A ll Foods, by Cities, on Specified Dates—
Continued
[1935-39=100]
1944
1943
1944
..¡39
Aug. 17
J a n . 14
Aug. 15
C ity a n d regional area
Aug. 15 2
South A tlantic:
A tla n ta ________________________ _ B altim ore_____ _ ________________
C harleston, S. C ____________________
Jacksonville___________________ ____
Norfolk *___________________________
R ichm ond____ _ _________________
S av an n ah__________________________
W ashington, D . C._
___
W inston-Salem 3 .
E a st South C entral:
B irm ingham _____
- - - - - ___ _ _
Jackson 3 Knoxville 3 Louisville __ _
- - _ M em phis____ _________________ __
M o b ile -.. .
______ _
....
W est South C entral:
Dallas
_ _ _ _ _
H ouston____ _____________________
L ittle Rock
_
_ _
- --N ew Orleans ______ _
M ou n tain :
B u tte ___ _
. __________ . . .
D enver.
... . . . . . . . . . . . .
Salt Lake C ity _____________________
Pacific:
Los Angeles_______ _______ . . . _ .
Portland, Oreg__________________ . . .
San Francisco_______ ____ - . _ . . .
Seattle______________________ ______
Ju ly 18
139.2
143.5
135.4
148.9
144. 8
136.5
154.7
136.7
138.8
138.1
143.1
133.0
144.8
143.2
134.4
152. 9
134.9
136.0
139.2
145.2
136.5
150.9
151.1
137.0
152.4
138.5
138.3
94.3
97.9
95.9
98.8
95.8
93-, 7
100.5
97.7
93.7
92.5
94.7
95.1
95.8
93.6
92.2
96.7
94. 1
145.4
142.9
158.6
133.4
148.3
147.1
141.4
138. 5
157.3
133.4 »
146.1
144.4
141.3
151.5
156.2
134.7
148.0
149.7
96.0
105.3
97.1
95.5
94.2
97.9
90.7
92.1
89.7
95.5
133.5
137.8
137.7
152.7
132.3
137.0
135.8
149.6
135.4
136.2
137.6
153.3
92.6
102.6
95.6
101.9
91.7
97.8
94.0
97.6
133.7
137.1
139.9
134.8
140.6
141.1
137.2
134. 5
139.5
98.7
94.8
97.5
94.1
92.7
94.6
141.1
145.3
142.4
141.6
138.5
146.2
142.4
141.9
141.1
144.7
137.3
139.8
101.8
101.7
99.6
101.0
94.6
96.1
93.8
94.5
1 Aggregate costs of 61 foods in each city (54 foods prior to M arch 1943)7 w eighted to represent total p u r
chases of wage earners and lower-salaried workers, have been combined for the U nited States w ith the use
of population weights. Prim ary use is for time-to-time comparisons rather th a n place-to-place com parisons.
2 Prelim inary.
3 June 1940=100.
4 Includes Portsm outh and N ew port News.
T a b le 4. —Indexes of Retail Food Costs in 56 Large Cities Combined, 11913—August 1944
[1935-39=100]
Y ear
1913________
1914________
1915________
1916________
1917________
1918________
1919________
1920 _______
1921________
1922________
1923________
1924________
1925________
1926 ______
All-foods
index
79.9
81.8
80.9
90.8
116.9
134.4
149.8
168.8
128.3
119.9
124.0
122.8
132.9
137.4
Year
1927________
1928________
1929________
1930 _______
1931
_
1932________
1933________
1934________
1935. .
1936.
1937 _
1938
1939
1940________
All-foods
index
132.3
130.8
132.5
126.0
103.9
86.5
84.1
93.7
100.4
101.3
105. 3
97.8
95.2
96.6
Year and
m o n th
1941 _
1942. ______
1943________
1943
J a n u a ry __ _
F eb ru ary ___
M a r c h ____
A p ril______
M a y ______
J u n e . . _____
J u ly _______
A ugust . . .
S ep tem b er...
1Indexes based on 51 cities combined prior to M arch 1943.
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All-foods
index
105.5
123.9
138.0
133.0
133.6
137.4
140.6
143.0
141.9
139.0
137.2
137.4
Y ear and
m onth
1943—Con.
October____
N ovem ber...
D e ce m b e r...
1944
Jan u a ry __ _
F ebruary. ..
M arch..
A pril. _ ._
M ay ___ . .
Ju n e .. . .
Ju ly _______
A ugust_____
All-foods
index
138. 2
137.3
137.1
136.1
134. 5
134.1
134. 6
—135. 5
135.7
137. 4
137.7
Cost of Living and Retail Prices
857
C onsum p tion E xp en d itu res, 1 9 2 9 - 4 3
GUMPTION expenditures in 1943 totaled $97,750,000,000 (pre.uimA ; s&imate) as compared with an annual average of $63,481,000,000 during the years from 1929 to 1941. The amount in 1929
was $78,425,700,000. There was a decline to a low point of $46,552,400,000 in 1933, and a peacetime rise to $66,466,100,000 in 1939.
These estimates are part of an extensive revision of consumption
expenditures made by the Bureau of Foreign and Domestic Com
merce of the Department of Commerce as one phase of the work of
that agency’s National Income Unit.1
The Department of Commerce points out that these revised figures
differ significantly from the consumer-expenditures figures shown in
its estimates of national product and published also as a monthly
series. It is stated, however, that the revisions are to be incorporated
in the national-product data and that work is in progress on the prep
aration of quarterly series that will tie in with the present annual
totals.2
The estimates of consumption expenditures include figures for
commodities and services separately, and indicate significant varia
tions in the percentage distribution of expenditures for the two types
of consumption. The variations, however, are limited substantially
to abnormal periods such as the depression of the early thirties and
the period of the present war. Services formed 38.6 percent of the
total in 1929 and 37.1 percent in 1939. The proportion rose sharply
during the depression, to 42.2 percent in 1933, but fell during the
war to 32.4 percent (in 1943). The proportions of expenditures for
services and commodities are, of course, affected by price changes.
In general, it may be said that the prices of services did not fall so
much as did the prices of commodities during the depression and that
the prices of services have not risen so much during the war as have
the prices of commodities. Services include rents, and the propor
tions are affected during the war by the relatively rigorous control of
rents.
Estimates of consumption expenditures by major types of products
were also made, as shown in tables 1 and 2. During the years 1929
to 1941 the average proportion of expenditures for food (including
alcoholic beverages) and tobacco was 30.2 percent of the total.3
Expenditures for the other major types of products ranged down
ward from 14.5 percent for household operation to 0.9 percent for
private education and research and also for foreign travel and remit
tances (table 1). The effects of wartime prices and conditions are
reflected in an increase in the proportion of expenditures for food and
tobacco to 37.4 percent in 1943 and a reduction in that year to 0.2
percent for foreign travel and remittances.
1 Survey of C urrent Business (W ashington), Ju n e 1944 (pp. 6-13): C onsum ption Expenditures, 1929-43,
b y W illiam H . Shaw. R eprints of this article are available from the D epartm ent of Commerce.
2 T he concepts and definitions used and the nature of the revisions are described in detail in the article
here reviewed.
3 T he percentages apply to all consumers, not only to wage earners and lower-salaried workers, and differ
therefore from the percentages in the B ureau of Labor Statistics cost-of-living studies.
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Federal Reserve Bank of St. Louis
858
Monthly Lahor Review—October 1944
T a ble 1.—Percentage Distribution of Consumption Expenditures, by Type of Product,
Average 1929-41, 1942, 1943 1
Percentage distribution 2
T ype of product
Average,
1929-41
1943 3
1942
All pro d u cts___________________
Com m odities_______________
Services___________________
100.0
61.8
38.2
100.0
66.3
33.7
100.0
67.6
32.4
Food and tobacco______________
Clothing, accessories, and jewelry.
Personal care__________________
H ousing_____ _________________
H ousehold operation___________
M edical care and death expenses.
Personal business______________
T ran sp o rtatio n________________
R ecreation____________________
P rivate education and research.
Religious and welfare a ctiv itie s...
Foreign travel and rem ittan ces...
30.2
12.8
1.5
14. 1
14.5
4.9
4.0
9.6
5.2
.9
1.6
.9
35.5
14.1
1.7
11.4
15.0
5.0
3.2
6.3
5.2
.9
1.4
.2
37.4
15.1
1.8
10.6
13.6
4.8
3.0
5.8
5.1
.9
1.5
.2
1 D ata are from table 1 of the source given in footnote 1, p. 857. For commodities and services th a t are
used both by business and by consumers, only th a t portion of the expenditures allocated to consumers is
included.
2 D etails do not necessarily add to total, because of rounding of figures.
2 Prelim inary.
Expenditures in dollars, as distinguished from percentages, by
major types of product, are shown in table 2 for the years 1929, 1933,
and 1937 to 1943. The extreme declines in expenditures in 1933 and
the variations in extent of declines were in part caused by reductions
in prices. The rise in expenditures between 1939 and 1943 and the
variations in the extent of the increases were caused largely by price
changes and by wartime conditions affecting the relative availability
of different types of goods and services.
T a ble 2. — Consumption Expenditures, by Type of Product, in Specified Years, 1929 to
1943 1
Value of consum ption expenditures (in millions)2
T ype of product
1929
1933
1937
1938
1939
1940
1941
1942
1943 2
All p ro d u cts______ - _____________ $78, 426 $46, 552 $66, 219 $63, 303 $66, 466 $70,806 $80,606 $88, 681 $97, 750
C om m odities______ - - --- . . . 48,132 26, 891 42,183 39, 388 41, 775 44, 931 52, 822 58, 753 66, 050
Services_________ _________ ~ 30, 294 19, 661 24,036 23,915 24, 691 25,875 27,784 29,928 31, 700
Food and tobacco ----- ------C lothing, accessories, and jew elry --.
Personal care. ------ . . - - - ------H ousing______ ... ___ _
_ --Household operation
_ ------------M edical care and death expenses---Personal business________ ____ T ran sp o rtatio n -----------------------------R ecreation.. . _____ ___ . . . . .
P rivate education and research __ .
Religious and welfare activities___ _
Foreign travel and rem ittances_____
21, 723 13,277 21, 420 20,110 20,607 21, 876 25, 296 31, 459 36, 600
11,138 5, 637 7, 879 7, 835 8, 311 8,801 10, 341 12,547 14,800
994 1,107 1,274 1,529 1,800
705
949
1,112
967
11, 273 7,732 8,280 8, 628 8, 833 9,136 9,664 10,127 10,400
11, 064 6,698 9,655 9, 028 9,794 10,690 12, 319 13, 294 13, 300
3, 559 2, 382 3,162 3,150 3, 325 3,522 3, 939 4,407 4,700
3, 413 2,029 2, 677 2, 544 2, 593 2, 742 2, 953 2,877 2,950
8, 032 4,058 6,687 5,772 6, 523 7,207 8, 482 5, 576 5, 700
4, 275 2, 253 3,396 3,229 3,434 3, 736 4,264 4,640 5,000
850
644
703
801
474
652
592
614
626
912
938 1, 040 1,094 1,233 1,500
1,190
867
890
190
150
488
306
532
277
440
613
995
1 D ata are from tables 1 and 2 of the source given in footnote 1, p. 857. For commodities and services th a t
are used both b y business and consumers, only th a t portion of the expenditures allocated to consumers is
included.
2 D etails do not necessarily add to totals because of rounding of figures.
3 Prelim inary.
The variations in the proportions of expenditures for the major
types of product may be illustrated by the expenditures for food and
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Federal Reserve Bank of St. Louis
Cost of Living and Retail Prices
859
•tobacco and for housing. The proportion of expenditures for food
and tobacco rose from an average of 30.2 percent in the years from
1929 to 1941 to 37.4 percent in 1943. On the other hand, the pro
portion of expenditures for housing fell from an average of 14.1
percent in the years from 1929 to 1941 to 10.6 percent in 1943. The
contrast was caused largely by the relatively small increase in rental
charges as compared with changes in food prices since 1933.
More significant than the variations in the percentages of expendi
tures for the main types of product are the variations for separate
items of expenditures not included in the accompanying tables but
given in the article here summarized. An extreme example is the
amount of expenditures for new cars. The amount for this item fell
from $2,527,000,000 in 1941 to $143,300,000 in 1942. The amounts
were highly variable before the war, ranging in the period between
1929 and 1941 from $2,562,900,000 in 1929 to $612,100,000 in 1932.
Expenditures for new cars thus illustrate the types of expenditures
that exhibit a high degree of variability. The comparatively stable
types of expenditures may be illustrated by expenditures for elec
tricity used in household operation. The amount for this item in
1929 was $615,500,000, and this was the smallest amount in any
year from 1929 to 1942, the latter being the peak year, with expendi
tures of $1,016,100,000.4
The series of expenditures for consumption are of considerable
significance as a development and expansion of the national-income
studies. The detailed items of expenditures for commodities and
services given in the source but not here reproduced are particularly
valuable for a number of purposes. Price adjustments for limited
types of expenditures can be made more satisfactorily than can price
adjustments for the aggregate or for the major groups. The varia
tions in expenditures for particular types of consumption reflect
shifts in demand, in the use of income, and in living standards, and
throw light on various problems such as shifts in employment oppor
tunities and in the investment of capital.
Cost of L ivin g at a Su b sisten ce L evel
A VALUABLE contribution to the knowledge of present-day living
costs of families at minimum subsistence levels has been made by the
Textile Workers Union of America in its report, Substandard Condi
tions of Living, a Study of the Cost of the Emergency Sustenance
Budget in Five Textile Manufacturing Communities in JanuaryFebruary 1944.5 The study was designed to measure the cost of a
clearly defined minimum list of goods and services required to main
tain a family of four (husband with moderately active work, wife, a
boy aged 13, and a girl aged 8) at a subsistence level of living. Since
this is the first repricing of the “emergency” budget developed and
priced by the Works Progress Administration in 1935,6 it provides
* T h e article here review ed does n o t give itemized expenditures for 1943 except for the major types of
products.
5 Published b y the Textile W oytbrs U nion of America, C. I. O., New Y ork, 1944. T he communities
studied were N ew Bedford, M ass.; Lew iston-A uburn, M aine.; W est W arwick, R . I.; H igh Point, N . C.;
and H enderson, N . C.
6 W PA Research M onograph X II: In tercity Differences in Costs of Living in M arch 1935, 59 cities, by
M argaret L. Stecker (W ashington) 1937; also Research B ulletin No. 21: Q uantity Budgets of Goods and
Services Necessary for a Basic M aintenance Standard of Living and for Operation U nder Em ergency
Conditions.
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Federal Reserve Bank of St. Louis
860
Monthly Labor Review—October 1944
valuable data on prices of the lowest-quality merchandise. Articles
specified in this budget are generally of lower quality than those included
in the Bureau of Labor Statistics index of the cost of goods purchased
by wage earners and lower-salaried clerical workers. • The index
applies to families with incomes ranging from about $1,250 to about
$2,000 in 1934-36, whereas the average cost of the “emergency”
budget in 59 cities in March 1935 was $903.
The average cost of the commodities and services included m the
“emergency” budget was found to be $1,415.46 in the five textile
communities early in 1944. With the addition of required income and
social security taxes and an allowance of 10 percent of the total cost
for purchase of war bonds, the cost amounted to $1,621.41. Consid
ering the meager list of goods and services provided by the “emer
gency” budget, there can be no question that the latter figure repre
sents the very least that would be needed by a family of this type
residing in these communities in 1944. In fact, the real question is
whether the figure is not too low for acceptance as a minimum.
The minimum cost recommended in the T. W. U. A. report is
$1,752.18, which includes an allowance for waste resulting from lack
of knowledge about the most economical food purchases which must
be made to assure an adequate diet at this cost.7 The “food shopping
allowance” included here amounts to 17 percent of the total food cost.
Although an allowance for this factor can be justified, there is no way
of knowing how much money would be required to insure adequate
diets for textile workers’ families.
The T. W. U. A. total does not include certain factors which tend
to increase costs but which cannot be measured satisfactorily. No
adjustment was made in the number of clothing articles allowed in
the 1935 budget, even though quality deterioration has resulted in the
pricing of cheap and shoddy garments which could not be expected to
wear as long as the lowest-priced merchandise available before the
war. In addition, in spite of the fact that most of the textile workers
relied on installment buying for the purchase of clothing, furniture,
and household equipment and that credit prices exceeded cash prices
by 10 to 40 percent, only cash prices were used in computing the
budgetary costs, on the theory that if the textile workers’ families had
higher incomes they could pay cash prices.
The data collected in January and February are used by the
T. W. U. A. to compute a rough measure of the increase in the cost of
the budget between 1935 and 1944, which was estimated at 37.2 per
cent. No figures are available as to the cost of this budget in 1935
in the 5 communities surveyed. It was thus necessary to use 1935
data from nearby cities for comparison with the figures obtained in
the 1944 survey. There are no Bureau of Labor Statistics figures to
compare with these, as most of the lowest-quality goods priced for the
official index of the cost of goods purchased by wage earners and cleri
cal workers are of somewhat higher quality than those specified in
the “emergency” budget. The BLS price quotations do show, howi T h e food cost was determ ined b y pricing th e item s included in th e low-cost w artim e food diet, weighting
No 1 developed by th e B ureau of H u m an N u tritio n and H om e Economics, U. S. D epartm ent of Agricul
tu re M inor adjustm ents to conform w ith rationing requirem ents were furnished by the same Bureau. 1 he
B ureau states th a t this food budget provides acceptable m inim um standards of n u trition which should not
involve health risks if followed indefinitely. T h e report m ay overemphasize the m onotony of the diet pro
vided by an expenditure of $642 per year for a fam ily of four. T h e list of foods priced is more¡restricted than
foods purchased need be in actual practice. Substitutions could be m ade of other low-cost foods th a t are
equally nutritious, if th e housewife has th e interest and knowledge to do so.
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Federal Reserve Bank of St. Louis
Cost of Living and Retail Prices
861
ever, that changes in the lowest-quality goods priced for the index
have been greater than price changes in the medium-quality goods
which are also included in the index. Consequently, one would ex
pect to find that the increase in the cost of this budget since 1935
would be greater than that for a budget providing goods of better
quality which are customarily purchased by average families in the
wage-earner and clerical group.
dhe union received technical assistance in this study from the
Bureau of Labor Statistics on detailed specifications for the goods that
were priced and from the Bureau of Human Nutrition and Home Eco
nomics on the food budget. The union’s field workers were also trained
m techniques of selecting the samples of stores and of price collection
by members of the Bureau of Labor Statistics’ field staff.
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Federal Reserve Bank of St. Louis
Wholesale Prices
W holesale Prices in A ugust 1944
LED by substantial reductions in prices for a wide variety of agricul
tural products, including grains, cotton, and fresh fruits and vegeta
bles, the Bureau of Labor Statistics index of commodity prices in
primary markets 1 dropped 0.2 percent in August. The decline
brought the all-commodity index to the lowest level reached since
April, 103.9 percent of the 1926 average. Notwithstanding the
recent decline, commodity prices were 0.8 percent higher than in
August 1943. In the 5 years of war, prices for these commodities have
risen 38^ percent.
Average prices for farm products dropped 1.2 percent during the
month. Foods declined. 0.9 percent and hides and leather products,
0.2 percent. There were a few scattered price increases in industrial
commodity markets in August, largely because of OPA action in
granting higher ceiling prices for cotton textiles, lumber, and certain
fertilizer materials. Textile products advanced 0.4 percent and
metals and metal products, building materials, and housefurnishing
goods, 0.1 percent. The indexes for fuel and lighting materials,
chemicals and allied products, and miscellaneous commodities remained
unchanged at the July level. Slightly lower prices were reported for
gasoline at midcontinent refineries. Fractional increases occurred in
prices for fertilizer materials and mixed fertilizers, because of higher
ceilings for phosphate rock and the elimination of the usual seasonal
discounts.
The decline in prices for agricultural commodities largely accounted
for a decrease of 0.8 percent in the index for raw materials during the
month. Semimanufactured commodities, on the contrary, rose 0.2
percent, while quotations for finished products remained unchanged
from the July level.
Average prices for farm products at the primary market level
dropped 1.2 percent during August. Grain markets continued weak,
with favorable crops reported in most sections of the country.
Quotations for oats were more than 7 percent lower; barley, over 4
percent; and wheat, 2 percent. Rye advanced 1.4 percent, while
cotton declined 2 percent under heavy liquidation of stocks. Lower
prices were also reported for cows, sheep, eggs, live poultry at New
York, and for most fruits and vegetables. The livestock markets
averaged higher than for the preceding month. Light receipts of
hogs kept prices at ceiling levels, or nearly 5 percent higher than in
July. Prices of steers were 2.5 percent higher; lambs, 0.5 percent; and
i T h e B ureau of L abor Statistics wholesale price d a ta for th e m ost p a rt represent prices prevailing in
the “ first commercial transaction.” T hey are prices quoted in p rim ary m arkets, at principal distribution
points.
862
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Federal Reserve Bank of St. Louis
Wholesale Prices
863
live poultry at Chicago, 2.2 percent. Higher prices were also reported
for fresh milk, flaxseed, tobacco, dried beans, and sweetpotatoes.
A decline of 5.5 percent in prices for fruits and vegetables was
mainly responsible for a decrease of 0.9 percent in average prices of
foods in wholesale markets in August. Prices were lower for apples,
citrus fruits, onions, and potatoes in most markets except New York.
Oatmeal declined nearly 8 percent and egg prices fell about 3 percent.
The movement in prices of flour was mixed, with a slight upward
tendency. Fresh milk in the Chicago and New York markets was
somewhat higher than in July, and pork also advanced. The new
pack of canned fruits and vegetables came onto the markets at higher
prices than the ceilings which prevailed on last year’s pack. Further
declines were reported in prices for shearlings and goatskins. Prices
for shoes and other leather products remained steady.
The effect of the Stabilization Extension Act of 1944 was reflected
by an increase of nearly 2 percent in average prices for cotton textiles
with the result that the index for textile products as a group rose 0.4
percent.
Quotations for gasoline at midcontinent refineries were lowered
about 1 percent in August. Prices for anthracite, bituminous coal,
and coke were firm.
The increase of 0.1 percent in the metals and metal products group
resulted from an advance of 5.5 percent in quotations for mercury and
higher prices for alloy steel bars and for tractors.
Higher prices for certain types of spruce and western pine lumber,
for prepared roofing, and for turpentine brought the index for the
building materials group up 0.1 percent. Quotations were lower for
rosin and for common brick in a few areas.
More efficient production methods enabled manufacturers to reduce
prices on alcohol and formaldehyde in August. Prices for fertilizer
materials arid mixed fertilizers advanced when quotations on super
phosphate were increased and the seasonal discounts were dropped.
An increase of over 6 percent in prices for pillow cases and sheets,
under the Stabilization Extension Act to set parity controlled ceilings
for cloth, caused the index for housefurnishing goods to rise 0.1
percent.
A minor decline was reported in prices for soap powder.
Prices for most industrial commodities fluctuated within a very
narrow range during the 12-month period, except in a few instances.
Increased excise taxes on alcohol were largely responsible for an in
crease of over 33 percent in the index for drugs and pharmaceuticals.
Prices for anthracite, coke, and lumber rose more than 6 percent during
the year as a result of OPA action in granting higher ceilings. For
no other group of commodities did prices advance more than 5 percent
between August 1943 and August 1944. Price declines in industrial
commodity markets have been very limited in the past year. Sharp
reductions in quotations for shearlings caused the index for hides and
skins to drop nearly 9 percent. Minor reductions were made in
prices for certain chemicals and for heating equipment.
Agricultural commodity markets also moved within a comparatively
narrow range in the past year. Grains advanced nearly 5 percent and
dairy products,1.5 percent. Fruits and vegetables, on the contrary,
were 2.2 percent lower than in August of last year and livestock and
poultry prices declined 3.2 percent.
610054— 44------ 13
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Federal Reserve Bank of St. Louis
864
Monthly Labor Review—October 1944
T able 1.—Indexes of Wholesale Prices by Groups and Subgroups of Commodities,
August 1944, Compared with July 1944, August 1943, and August 1939
[1926 =100]
P e r
P er
P er
ugust cent
cent of A 1943
of August
1939 cent of
change
change
change
A ugust
1944
Ju ly
1944
All commodities............................................
103.9
104.1
- 0 .2
103.1
+ 0 .8
75.0
+ 38.5
Farm products...............................................
Grains................................................. .
Livestock and poultry....... ....................
Other farm products........ ............. ........
122.6
122.5
125.4
120.0
124.1
125.2
123.4
123.2
- 1 .2
- 2 .2
+ 1 .6
- 2 .6
123.5
116.8
129.5
120.8
-.7
+ 4 .9
-3 .2
-.7
61.0
51.5
66.0
60.1
+ 101.0
Foods.....______ ________________ ___
Dairy products. _____ _____ ____ ___
Cereal products_____ ____ ______ _
Fruits and vegetables.................. ...........
Meats........................... ....... ......... .........
Other foods.............................................
104. 8
110.5
94.3
122. 8
105. 9
94.1
105.8
110.3
94.3
129.9
105.9
94.7
- .9
+ .2
0
- 5 .5
0
- .6
105.8
108.9
93.8
125.6
106.0
98.0
-.9
+ 1.5
+ .5
- 2 .2
-. 1
-4 .0
67.2
67.9
71.9
58. 5
73.7
60.3
Hides and leather products.........................
Shoes_______ ______ __________ _
Hides and skins___________ ___ ___
Leather__ _______ _______________
Other leather products.___ _______ _
116.0
126.3
105. 7
101.3
115. 2
116.2
126.3
106.8
101.3
115.2
-.2
0
- 1 .0
0
0
117.8
126.4
116.0
101.3
115.2
- 1 .5
-.1
-8 .9
0
0
92.7
100.8
■ 77.2
84.0
97.1
Textile products......................... ....... ...........
Clothing.................................. ................
Cotton goods_______ ______ _______
Hosiery and underwear......... ....... .........
Rayon.....................................
Silk____________ ___ __________
Woolen and worsted goods_____ _____
Other textile products______ _______
98.4
107.0
115. 9
70.6
30.3
98.0
107.0
114.0
70.6
30.3
+ .4
0
+ 1 .7
0
0
97.4
107.0
112.7
70.5
30.3
+ 1 .0
0
+ 2 .8
+ .1
0
112.9
100. 5
112.9
100.5
0
0
112.5
98.7
+ .4
+ 1 .8
67.8
81.5
65.5
61.5
28.5
44.3
75.5
63.7
Fuel and lighting materials...... .....................
Anthracite.______ _______________
Bituminous coal_______ _____ _____
Coke..________ __________________
Electricity.___ ____ ______________
Gas_____________________________
Petroleum and products.... ..................
83.2
95.4
120.5
130.7
83.2
95.4
120.5
130.7
0
0
0
0
+ 2 .8
+ 6 .5
+ 3.4
+ 6 .8
63.9
78.9
64.0
-.2
80.9
89.6
116.5
122. 4
57.6
76.3
63.0
+ 1.4
72.6
72.1
96.0
104.2
75 8
86 7
51.7
Metals and metal products..........................
Agricultural implements___________ I.
Farm machinery...............................
Iron and steel____ ________________
Motor vehicles____________________
Nonferrous metals_________________
Plumbing and heating...................
103.8
97. 5
98.6
97.1
112.8
85.8
92.4
103.7
97.3
98.4
97.1
112.8
85.7
92.4
+ .2
+ .2
0
0
+ .1
0
103.7
96.9
98.0
97.1
112.8
86.0
90.4
+ .1
+ .6
+ .6
0
0
-.2
+ 2 .2
93.2
93.5
94.7
95.1
92.5
74.6
79.3
Building materials___ ________________
Brick and tile____ _____ ___________
Cement..............................
^
Lumber___________ _____ I.—IIIII—
Paint and paint materials___________I
Plumbing and heating............... .
Structural steel__________ ______
Other building materials................ IIIII
116.0
100.7
96.4
154.4
105. 5
92.4
107.3
103.2
115.9
100.7
96.4
154.2
105.5
92.4
107.3
103.1
112.2
99.0
93.6
145.0
102.8
90.4
107.3
101.4
+ 3.4
+ 1.7
+ 3.0
+ 6.5
+ 2.6
+ 2 .2
89.6
90.5
91.3
90.1
82.1
79.3
107.3
89.5
Chemicals and allied products______
Chemicals_____________________
Drugs and pharmaceuticals..IIIIIIIIIII'
Fertilizer materials_________________
Mixed fertilizers_______ _____ IIIIII
Oils and fats______ _________ IIIIIIII
105.3
96.2
220.1
81.2
86.6
102.0
105.3
96.2
220.1
81.1
86.3
102.0
100.2
96.5
165.2
80.1
86.1
102.0
+
Housefumishing goods.... ............ ...........
Furnishings..........................
Furniture.......................... IIIIIIIIIII!
Miscellaneous___ ___________
Automobile tires and tubes—IIIII
Cattle feed___ ________________
Paper and pulp........... ........II.III
Rubber, crude....................... I..Ill".......
Other miscellaneous__________ —IIIII'
104.4
107.4
101.4
104.3
107.2
101.4
+ .2
93.6
73.0
159.6
107.2
46.2
96.9
Raw materials......................... ................
Semimanufactured articles___
Manufactured products____________ IIIII!
All commodities other than farm products
All commodities other than farm products
and foods___
G roup and subgroup
1
D ata n o t yet available.
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Federal Reserve Bank of St. Louis
C1)
(>)
)
0
(>)
(i )
(i )
+ .1
0
0
+ .1
0
0
0
+ .1
0
0
0
+. 1
+ .3
0
0
+ 1.8
5 .1
- .3
+33.2
-J-1. 4
+ .6
0
74.2
83.8
77.1
65.5
73.1
40.6
0
102.6
107.1
98.1
+ 3 .4
93.6
73.0
159.6
107.2
46.2
96.9
0
0
0
0
0
0
92.6
73.0
155.7
104.3
46.2
96.3
+ 2 .5
+ 2 .8
0
+ .6
112.7
94.1
100.9
99.7
113.6
93.9
100.9
99.6
-.8
112.7
92.9
99.7
98.5
0
+ .2
0
+ .1
+ 1.3
+ 1 .2
+ 1 .2
66.5
74.5
79.1
77.9
98.6
98.5
+ .1
97.1
+
1 .5
80.1
+.
1
+ 1 .8
+
1.1
0
85.6
90.0
81.1
73.3
60.5
68.4
80.0
34.9
81.3
+ 137.9
+ 90.0
+ 99.7
+ 62.7
+ 31.2
+ 109.9
+ 43.7
+ 56.1
+ 25.1
+ 25.3
+ 36.9
+ 20.6
+ 18.6
+ 45.1
+ 31.3
+ 76.9
+ 14.8
+ 6.3
+ 49.5
+ 57.8
+ 14.6
+ 32.3
+ 25.5
+ 25.4
+ 23.6
+ 11.4
+4.3
+ 4.1
+ 2.1
+ 21.9
■+ 15. 0
+ 16. 5
+ 29.5
+ 11.3
+ 5.6
+ 71.4
+ 28.5
+ 16.5
0
+ 15.3
+ 41.9
+ 14.8
+ 185. 5
+ 24.0
+ 18.5
+ 151. 2
+ 22.0
+ 19.3
+ 25.0
+ 27.7
+ 20.7
+ 133.3
+ 34.0
+ 32.4
+ 19.2
+ 69.5
+ 26.3
+ 27.6
+ 28.0
J + 23.1
Wholesale Prices
865
Broad price increases took place in most commodity markets during
the 5-year period of hostilities. Among the outstanding price in
creases are the following: Over 185 percent for drugs and pharmaceu
ticals, 151 percent for industrial fats and oils, about 138 percent for
grains, 133 percent for cattle feed, and nearly 110 percent for fruits
and vegetables. Increases of more than 90 percent were recorded
in prices for livestock and poultry, more than 70 percent for cotton
goods and lumber, and more than 50 percent for dairy products, over 30
percent for cereal products, meats, hides and skins, woolen and worsted
goods, anthracite, paper and pulp, and crude rubber, and from
approximately 15 to about 25 percent for shoes, leather, hoisery and
underwear, coal, coke, petroleum products, nonferrous metals, plumb
ing and heating fixtures, paint and paint materials, chemicals, fertilizer
materials, mixed fertilizers, housefurnishings, furniture, and auto
mobile tires and tubes.
Percentage comparisons of the August 1944 level of wholesale prices
with July 1944 and August 1943 and August 1939 with corresponding
index numbers are given in table 1.
Index Numbers by Commodity Groups, 1926 to August 1944
Index numbers of wholesale prices by commodity groups for
selected years from 1926 to 1943, and by months from August 1943 to
August i944, are shown in table 2.
T a ble 2. —Index Numbers of Wholesale Prices by Groups of Commodities
[1926=100]
Y ear and m onth
Hides
Fuel M et
C hem
Tex
and
and
als
B uild icals HouseMisFarm
furleath
tile
light
and
and
ing
celprod Foods
er
prod
ing
m etal m ate allied nish- laneucts
prod ucts m ate prod rials prod ing
ous
ucts
rials
ucts
ucts goods
All
com
m odi
ties
1926________________
1929________________
1932________________
1933________________
1936________________
1937________________
100.0
104.9
48.2
51.4
80.9
86.4
100.0
99.9
61.0
60.5
82.1
85.5
1C0.0
109.1
72.9
80.9
95.4
104.6
100.0
90.4
54.9
64.8
71.5
76.3
100.0
83.0
70.3
66.3
76.2
77.6
100.0
100.5
80.2
79.8
87.0
95.7
100.0
95.4
71.4
77.0
86.7
95.2
100.0
94.0
73.9
72.1
78.7
82.6
100.0
94.3
75.1
75.8
81.7
89.7
100.0
82.6
64.4
62.5
70.5
77.8
100.0
95.3
64.8
65.9
80.8
86.3
1938________________
1939________________
1940________________
1941________________
1942________________
1943________________
68.5
65.3
67.7
82.4
105.9
122.6
73.6
70.4
71.3
82.7
99.6
106.6
92.8
95.6
100.8
108.3
117.7
117.5
66.7
69.7
73.8
84.8
96.9
97.4
76.5
73.1
71. 7
76.2
78.5
80.8
95.7
94.4
95.8
99.4
103. 8
103.8
90.3
77.0
90.5 b- 76.0
94.8
77.0
103.2
84.6
110.2
97.1
111.4 100.3
86.8
86.3
88.5
94.3
102.4
102.7
73.3
74.8
77.3
82.0
89.7
92.2
78. 6
77.1
78.6
87.3
98.8
103.1
19i3
A ugust_____________
Septem ber__
--.
O ctober_________ __
N ovem ber- - - - - - - D ecem ber__________
123. 5
123.1
122.2
121.4
121.8
105.8
105.0
105.1
105.8
105.6
117.8
117.8
117.8
116.5
117.0
97.4
97.5
97.6
97.7
97.7
80.9
81.0
81.0
81.2
82.1
103. 7
103.7
103.7
103.8
103.8
112.2
112.5
112.7
113.1
113.4
100.2
100.3
100. 4
100.3
100.4
102. 6
102.6
102.6
102.8
102.8
92.6
93.0
93.1
93. 2
93.3
103.1
103.1
103.0
102.9
103.2
1944
Ja n u a ry ____________
F ebruary-------- M arch ___
______
A pril ________ _ M a y _____ __________
Ju n o _____
- -- ---J u ly ________________
A u g u st_____________
121.8
122.5
123.6
123. 2
122.9
125.0
124.1
122.6
104.9
104.5
104.6
104.9
105.0
106.5
105.8
104.8
117.2
116.9
116.9
116.9
117.0
116.4
116. 2
116.0
97.7
97.7
97.8
97.8
97.8
97.8
98.0
98.4
82.3
83.1
83.0
83.0
83.2
83.3
83.2
83.2
103.7
103.7
103.7
103.7
103. 7
103.7
103.7
103.8
113.5
113.6
114.2
115. 2
115.7
115.9
115.9
116.0
100.4
100.4
100.4
105.4
105.4
105.2
105. 3
105.3
104. 5
104.2
104. 3
104.3
104.3
104.3
104.3
104.4
93.2
93.4
93.5
93.5
93.5
93.5
93.6
93.6
103.3
103.6
103.8
103.9
104.0
104.3
104. 1
103.9
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
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Federal Reserve Bank of St. Louis
Monthly Labor Review—October 1944
866
other than farm products, and comodities 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 8 and 9 of Wholesale Prices, July to
December and Year 1942 (Bulletin No. 736).
T a ble 3. —Index Numbers of Wholesale Prices by Special Groups of Commodities
[1926=100]
A ll
com
m o d i
tie s
o th er
th a n
fa rm
p ro d
u c ts
an d
foods
Y ear and
m o n th
Y ea r and
m o n th
R aw
m a te
rials
S em im anufactu r e d
a r ti
cles
M an
u fa c
tu red
p ro d
u c ts
A ll
com
m o d i
tie s
o th er
th a n
farm
prod
u c ts
1926_________
1929_________
1932_________
1933_________
1936_________
1937_________
100.0
9 7 .5
55.1
56.5
79.9
8 4 .8
100.0
9 3 .9
59 .3
65 .4
7 5 .9
85 .3
100.0
9 4 .5
70.3
7 0 .5
8 2 .0
8 7 .2
100.0
9 3 .3
6 8 .3
6 9 .0
8 0 .7
8 6 .2
100.0
9 1 .6
7 0 .2
7 1 .2
7 9 .6
8 5 .3
1938_________
1 9 3 9 ..
____
1 9 4 0 .. _____
1941_________
1942_________
1943_________
7 2 .0
7 0 .2
71.9
8 3 .5
100.6
112.1
7 5 .4
7 7 .0
79.1
8 6 .9
9 2 .6
9 2 .9
8 2 .2
8 0 .4
8 1 .6
8 9 .1
9 8 .6
100.1
8 0 .6
7 9 .5
8 0 .8
8 8 .3
9 7 .0
9 8 .7
8 1 .7
81 .3
8 3 .0
8 9 .0
9 5 .5
9 6 .9
A ll
A ll
com
co m m o d i
tie s
m o d i
tie s
o th er
th a n
o th er
th a n
farm
p ro d
farm
u c ts
p ro d
and
u c ts
foods
R aw
m a te
ria ls
S em im anufactu red
a rti
cles
M an
u fa c
tu red
p rod
u c ts
1943
A u g u s t ______
S e p t e m b e r ,.
O cto ber ___
N o v e m b e r ,.D e c e m b e r .- -
112.7
112.4
111.9
111.3
112.1
9 2 .9
9 2 .9
9 2 .9
9 2 .9
93 .1
9 9 .7
9 9 .9
100.0
100.2
100.2
9 8 .5
9 8 .6
9 8 .7
9 8 .8
9 9 .0
97.1
9 7 .2
97 .3
9 7 .4
9 7 .6
19U
J a n u a r y ____
F e b r u a r y ___
M a r c h . ___
A p r il._
M a y ___ __
June.
J u ly _________
A u g u s t ____
112.2
112.8
113.4
113.2
113.0
114.2
113.6
112.7
9 3 .2
9 3 .4
9 3 .7
9 3 .6
9 3 .7
9 3 .8
9 3 .9
94.1
100.2
100.4
100.5
100.8
100.9
100.9
100.9
100.9
9 9 .1
99 .3
99 .3
9 9 .6
9 9 .7
9 9 .6
9 9 .6
9 9 .7
9 7 .8
9 8 .0
98.1
9 8 .4
9 8 .5
9 8 .5
9 8 .5
9 8 .6
Weekly Fluctuations
Weekly changes in wholesale prices by groups of commodities during
July and August 1944 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 a ble 4.— Weekly Index Numbers of Wholesale Prices by Commodity Groups, July and
August 1944
[1926=100]
C o m m o d ity g ro u p
A ug.
26
A ug.
19
A ug.
12
A ug.
5
J u ly
29
J u ly
22
A ll c o m m o d itie s _______________________
103.5
103.6
104.0
103.6
103.9
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 ts . _________
T e x tile p r o d u c ts _______________________
F u e l a n d lig h tin g m a te r ia ls ___________
121.8
104.0
116.6
97 .6
8 3 .7
122.3
104.5
116.4
9 7 .5
8 3 .8
124.8
106.1
116.8
97 .5
8 3 .8
122.5
104.6
116.8
9 7 .5
8 3 .8
124.1
105.3
116.8
97 .4
8 3 .9
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 an d a llie d p r o d u c t s ___ . . .
H o u s e fu r n is h in g good s . .
___________
M is c e lla n e o u s _____________ _____ ____ __
103.8
116.0
105.3
106.0
93 .3
103.8
116.0
105.3
106.0
9 3 .3
103.8
116.0
105.2
106.0
9 3 .3
103.8
116.0
105.2
106.0
9 3 .3
R a w m a te r ia ls _____________ __________
S e m im a n u fa c tu r e d a r tic le s ____________
M a n u fa c tu r e d p r o d u c t s .. ___________
A ll c o m m o d itie s o th e r t h a n fa rm p rod u c t s _____________ _________ ______
A ll c o m m o d itie s o th e r th a n farm p rod u c ts a n d fo o d s _________________ _____ _
112.5
9 3 .9
101.0
112.8
114.3
9 3 .8
93 .8
101.1 . 101.1
112.9
9 3 .8
101.0
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Federal Reserve Bank of St. Louis
J u ly
15
J u ly
8
J u ly
1
103.9
103.9
103.9
104.1
124.1
106.0
116.8
9 7 .4
8 3 .9
124.2
105.6
116.8
9 7 .3
8 3 .8
124.1
106.0
116.8
97.3
8 3 .8
125.5
106.7
116.8
9 7 .3
8 3 .8
103.8
115.9
105.2
106.0
9 3 .3
103.8
115.9
105.2
106.0
93 .3
103.8
115.8
105.2
106.0
9 3 .3
103.8
115.8
105.4
106.0
9 3 .3
103.8
115.9
105.3
106.0
9 3 .3
113.8
9 3 .8
101.1
113.8
9 3 .8
101.1
113.9
9 3 .7
101.0
113.8
93 .7
101.1
114.6
93 .7
101.1
9 9 .5
99 .5
9 9 .5
9 9 .5
99 .5
9 9 .5
99 .5
99 .5
99 .5
9 8 .7
9 8 .7
9 8 .7
9 8 .7
9 8 .7
9 8 .7
9 8 .6
98 .7
98 .7
Labor Turnover
L abor T urnover in M anufacturing, M ining, and P ublic
U tilities, July 1944
FOR every 1,000 workers on factory pay rolls in July, 65 either
changed jobs or left manufacturing work. The rate of accessions was
62 per 1,000, considerably below the June rate of 76, but approximately
on a level with May.
For every 1,000 manufacturing employees, 49 quit their jobs, 7
were discharged, 5 were laid off, and 4 left to enter the armed services.
The military separation rate was the lowest since the war began.
In all major manufacturing groups, the rate of hiring for July was
below that of June. In each case, the hiring rate in June was the
highest for the year, reflecting the influx of teachers and students
into the labor market.
T a b le 1.— Monthly Labor-Turnover Rates (Per 100 Employees) in Manufacturing
Industries 1
Class of turnover
and year
Total separation:
1944____________
1943____________
1939____________
Quit:
1944____________
1943____________
1939____________
Discharge:
1944____________
1943____________
1939____________
Lay-off: 3
1944 ____________
1943____________
1939____________
M ilitarv:
1944____________
1943____________
Miscellaneous: 1
1944____________
1943____________
Accession:
1944_____________
1943____________
1939_____________
Jan.
Feb. M ar. Apr.
M ay June
6.69
7.11
3.19
6 52
7.04
2.61
7.33
7.69
3.18
6.78
7.54
3. 46
7.08
6.57
3. 48
4.60
4. 45
.85
4. 56
4.65
.64
5.00
5. 36
.82
4.90
5. 41
.76
5.27
4.81
.68
.69
.52
. 10
.64
.50
. 10
.65
.57
. 13
.59
.53
.10
.63
.55
.13
.68
.61
.12
.79
.74
2.24
.76
.54
1.87
.87
.52
2. 23
.58
.64
2.60
.50
.45
2.67
.53
1.26
.49
1. 23
.73
1.12
.64
.87
.08
.14
.07
.12
.08
.12
6.47
8.28
4.09
5.46
7.87
3.06
5.76
8.32
3.34
Ju ly
Aug. Sept.
Oct. Nov. Dec.
7.12 26.48
7.07 7. 56
3. 31 3. 36
8.18
3.01
8.16
2. 79
7.02
2.91
6.37
2.95
6. 55
3. 46
5.43 24.93
5. 20 5.61
.73
.70
6. 30
.82
6.29
1. 07
5.19
.93
4. 46
.83
4.38
.69
2 .66
.68
.12
.67
.14
.62
.14
.64
.17
.63
. 15
.60
. 12
.50
.50
2.46
2 .49
.50
2.54
.46
2.05
.53
1.58
.51
1.81
.69
1.97
.99
2.65
.60
.69
.44
.69
2 .33
.69
.67
.64
.61
.52
.50
.07
.09
.08
.07
.07
.07
2 .07
.08
.08
.08
.07
.07
.08
5.53
7.43
2. 93
6. 39
7.18
3. 29
7.60 26. 22
8.40 7.83
3.92 4.16
7. 62
5.06
7.73
6.17
7.17
5.89
’
6.62
4.10
5.19
2.84
1 M onth-to-m onth em ploym ent changes as indicated b y labor-turnover rates are not precisely com parable
to those shown b y the B ureau’s em ploym ent and pay-roll reports, as the former are based on d ata for the
entire m onth while the latter refer, for the most p art, to a 1-week period ending nearest the middle of the
m onth. In addition, labor-turnover d ata, beginning in Jan u ary 1943, refer to all employees, whereas the
em ploym ent and pay-roll reports relate only to wage earners. The labor-turnover sample is not so extensive
as th a t of the em ploym ent and pay-roll survey—proportionately fewer small plants are included; printing
and publishing, and certain seasonal industries, such as canning and preserving, are not covered
2 D ata are prelim inary.
3 Including tem porary, indeterm inate, and perm anent lay-offs.
< D ata for 1939 included w ith quits.
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Federal Reserve Bank of St. Louis
867
Monthly Labor Review—October 1944
868
Total separation rates declined in all major groups except nonferrous metals and apparel. Each of these groups showed a marked
increase in lay-off rates. The nonferrous-metals group reported the
highest lay-off rate, 11 per 1,000, reflecting further cut-backs in the
aluminum industry. In the apparel group, the increase in the lay-off
rate was of a seasonal nature.
Not a single major manufacturing group reported an increase in the
quit rate. The decline in the quit rates may be attributed in part
to the priority referral program which became effective on July 1.
The separation rate for metal mining was 64 per 1,000 employees
in July, as compared with 75 per 1,000 employees in June. In con
trast to this trend, which is similar to that in manufacturing, the
separation rates in anthracite and bituminous-coal mining increased
over the month. The separation rates in both of the coal mining
industries were, nevertheless, considerably below the level of rates
in the manufacturing industries.
T a ble 2.—Monthly Labor Turnover Rates (Per 100 Employees) in Selected Groups an '
Industries, 1 Ju ly 1944
T otal
separation
D isch arg e
Q uit
M ilitary
T otal
and m is
cellaneous accession
Lay-off
Ju ly June
19442 1944
M anufacturing
6.8
O rdnance.- . ____
. . . ----------G uns, howitzers, m ortars, and
related e q u ip m e n t3___________ 5.3
A m m unition, except small-arms 3_. 7.9
T anks 3
_
0
Sighting and fire-control equipmp/nt 3
_ ___
3.1
Iron and steel and th eir p ro d u cts-----B last furnaces, steel works, and
rolling m ills__________________
G ray-iron castings------------- 1-----M alleable-iron castings
Steel castings__________________
Oast-iron pipe and fittings. . . ..
T in cans and other tin w a re .. . . .
W ire p ro d u cts__________________
C utlery and edge tools------ -----Tools (except edge tools, machine
tools, files, and saw s). . . . .
H ardw are. ________________ . . .
Plum bers’ supplies . . . ____
Stoves, oil burners, a n d heating
equipm ent . . .
----------------Steam and hot-w ater heating apparatus and steam fittin g s. __ _
Stam ped and enam eled w are and
galvanizing___________________
Fabricated structural-m etal produ cts_____________ _______ . . .
Bolts, n u ts, washers, and riv e ts .._
Forgings, iron an d steel. . . .
Firearm s (60 caliber and under) 3_
Electrical m achinery___ . . ------- .
Electrical equipm ent for industrial u s e .. .
---------------Radios, radio equipm ent, and
p h o n o g ra p h s ..____
. . ...
C om m unication equipm ent, except radios---- ------------------------
See fo o tn o tes a t end of table.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
4.9
7.2
55*
rf*c.
In d u stry
5.0
June Ju ly June Ju ly June Ju ly June July June
1944 19442 1944 19442 1944 19442 1944 19442 1944
5.0
0.9
0.9
5.5
8.4
7.3
3.8
6.0
0)
3.8
6.3
3.8
.7
1.0
0
.7
1.0
.9
3.8
1.8
2.5
.4
.4
5.3
3.4 3.6
6.9 9.0
5.0 6.7
6.5 7.0
5.5 5.9
10.8 13.9
2.8 3.4
5.9
0)
5.2
3.8
4.7
6.0
4.8
6.9
7.6
(4)
3.5
3.9
2.7 2.8
5.5 6.9
4.2 5.7
5.2 5.6
4.1 4.5
8.6 11.2
2.1 2.3
4.7
0)
0.5
.4
.5
0
.5
0.8
0.4
.5
.6
2.2
.4
.4
0
0. 5
9.4
7.7
.5
. 5 ____ ____
.4
—
.3
.4
.6
.5
—
.5
.5
.5
.4
.4
.2
.8
.4
.7
.3
1.5
.3
(4)
.2
1.1
.4
.6
.4
1.8
.3
.9
.1
.2
.0
.1
.2
.1
.1
0
.1
.4
.0
.2
.3
.4
.3
.1
.4
.4
-, 4
.5
.9
.6
.3
0
5.8
.7
.2
.4
.6
.3
.5
.2
.2
.2
.2
.4
.2
.3
.2
.4
.3
.5
.7
.5
1.9
.5
.6
7.3 12.2
.7
0
4.8
.5 3.6 4.3
.6 7.7 8.7
.6 5.3 6.3
.6 6.7 6.7
.7 6.6 6.3
.5 14.3 20.3
.5 4.4 4.0
.2 0
7.9
5.1
4.3
4.7
6.8
5.0
6.8
4.0
3.2
3.7
4.9
3.6
5.5
9.2
5.7
5.8
.9
.9
6.6
«
3.9
0
.4
7.1
8.0
5.7
5.8
.6
.7
.3
.9
.5
.6
8.9 10.0
9.8
5.0
4.4
10.9
9.6
6. C
4.9
8.2
5.6
3.8
3.4
3.6
6.4
4.2
3.8
3.5
1.7
.7
.3
.8
1.7
.8
.4
1.5
2.0
.1
.3
5.7
.8
.6
.1
2.6
.5
.4
.4
.8
.7
.4
.6
.6
7.7
4.8
3.2
.6
.2
.3
.4
.4
.4
5.1
5.5
3.9
4.2
.6
1.6
0
0
4.2
9.6
6.1
4.4
—
—
5.0
6.5
4.1
4.1
3.1
3.1
.4
.5
.2
.1
.4
3.8
4.7
6.4
6.8
5.1
5.2
.8
.7
.2
.5
.3
.4
6.5
8.6
4.1
4.7
3.1
3.5
.4
.4
.2
.3
.4
.5
4.3
5.9
Labor Turnover
T a b l e 2 .—
869
Monthly Labor Turnover Rates ( Per 100 Employees) in Selected Groups and
Industries, 1 July 1944— C o n tin u e d
Total
separation
Quit
D ischarge
Lay-off
In d u stry
M ilitary
T otal
and m is
cellaneous accession
Ju ly June Ju ly June Ju lv June Ju ly June Ju ly June Jul> June
19442 1944 19442 1944 19442 1944 1944 1944 1944 1944 1944 1944
^
k
M anufacturing— C ontinued
M achinery, except electrical . . .
Engines and turbines a____
A gricultural m achinery and tracto rs______________ ____ ___
M achine tools____________
M achine-tool accessories. _
M etalw orking m achinery and
equipm ent, not elsewhere classified______ ______ _____
Textile m achinery_______
General industrial m achinery,
except pum ps____________
Pum ps and pum ping e q u ip m e n t..
T ransportation equipm ent, except
automobiles______________
A ircraft___________________
A ircraft p a rts ___ _
Shipbuilding and repairs_____
f
,
k
^
’
1
r
!
1
4.6
4. f
5.2
5.5
3.3
2.9
3.7
3.6
0.6
.7
0.6
.8
0.3
.8
0.3
.4
0.4
.5
0. 6
.7
4.2
5 6
5.3
3.3
4.3
6.8
3.9
5.2
4.2
2.2
2.6
5.2
2.6
3.1
.5
.5
.7
.6
.5
.8
.2
.2
.6
.4
.2
.6
.4
.4
.4
.6
.6
7
6.
2.8
3 5
7 1
3. 9
4 9
3.6 • 4.3
3.5
(4)
2.5
(4)
2.9
2.5
.5
(4)
.6
.2
.1
(4)
.i
.4
.5
(4)
. 7 3.4
.4 (4)
4. 7
5. 3
5.0
4.1
5.3
5.9
3. 7
3.1
4.0
4.3
.6
.5
.6
.7
.3
.1
.2
.3
.4
.4
.5
.6
4.2
4.6
5. 7
5.8
7.5 8.3
6.4 7.9
5.5 5.6
9.4 10.5
5.0
4.7
3.7
6.0
5.5
5.3
3.8
6.7
1.3
.6
.8
2.0
1.3
.6
.9
2.1
.6
.4
.7
.8
.8
1.1
.4
.9
.6
.7
.3
.6
.7
.9
.5
.8
6.1
5. 2
4.9
7.3
6.8
5. 7
5. 6
8.5
Autom obiles______
5.3 5.7
M otor vehicles, bodies, and
trailers_________
4.9 5.4
M otor-vehicle p arts and accessories 5.5 6.0
N onferrous m etals and th e ir products. 7.4 7.4
P rim ary smelting and refining.
except alum inum and magnesium ____
4.3 4.8
A lum inum and m agnesium smelting and refining______________ 12.2 13.6
Kollin g and draw ing of copper and
copper alloys________ . . ...
4.5 4.4
A lum inum and magnesium produ cts________________
8.9 7.8
Lighting eq u ip m en t____
6.4 6.2
N onferrous m etal foundries, except alum inum and magnesium __________________ ______ 6.0 7.4
Lum ber and tim b er basic p roducts___
Sawmills_______
Planing and plywood m ills______
8.4
8.2
7.2
9.7
9.1
9.0
F u rn itu re and finished lu m b er products__ . .
F u rn itu re, including m attresses
and bedsprings_______________
8.6 10.2
7.4
8.9
.6
.7
.3
.2
.3
.4
8. 8 11.9
8.9 10.2
7.8
8.9
.5
.7
.3
.2
.3
.4
8.6 11.9
Stone, clay, and glass products______
Glass and glass products______
C em ent__________
Brick, tile, and te rra co tta______
P o ttery and related pro d u cts____
5.2
5.1
3.4
6.2
6.5
5.9
6.1
3.4
7.7
6.9
4.1
3.6
2.9
5.2
5.9
4.6
4.1
2.7
6.6
6.2
.4
.5
.1
.4
.2
.4
.5
.1
.4
.3
.3
.5
.1
.2
.1
.5
1.0
.3
.2
.1
.4
.5
.3
.4
.3
.4
.5
.3
.5
.3
5.3
5.8
5.1
6.0
6.4
6.8
6.8
5.9
7.7
9.4
Textile-mill pro d u cts________ .
C otton__ ____ ______
Silk and rayon goods__
Woolen and w orsted, except dyeing and fin ish in g _______
Hosiery, full-fashioned__________
Hosiery, seamless...............
K n itted underw ear. _____ .
D yeing and finishing textiles, ineluding woolen and w orsted___
6.3
6.9
6.2
6.7
7.6
7.4
5.3
5.9
5.2
5.7
6.5
6.1
.4
.5
.5
.4
.4
.6
.3
.2
.2
.3
.3
.3
.3
.3
.3
.3
.4
.4
5.9
6. 9
6.3
6.9
7.6
7.8
4.0
4.5
6.2
7.6
3.7
5.9
6.9
5. 5
3.3
4.0
5.7
6.4
3.0
5.3
6.3
4.8
.2
.2
.3
.3
.2
.2
.3
.3
.2
.2
.1
.8
.3
.2
.1
.2
.3
.1
.1
.1
.2
.2
.2
.2
3.1
4.9
5.6
5.0
3.9
5.7
8. 2
6. 6
4.2
5.3
3.0
3.9
.6
.6
.3
.3
.3
.5
3.6
5.2
A pparel and other finished textile
products____________ _________
M en ’s and boys’ suits, coats, and
overcoats____________________
M en ’s and boys’ furnishings, work
clothing, and allied garm ents__
S ee fo o tn o te s a t e n d
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Federal Reserve Bank of St. Louis
of ta b le .
3.6
4.0
.7
.7
.6
.5
.4
.5
5.8
6 5
3.0
4.0
5.1
3.5
4.4
5.3
.5
.8
.7
.6
.8
.7
1.1
.3
1.1
1.0
.2
.8
.3
.4
.5
.3
.6
.6
5.5
6. 0
6.0
6. 7
6. 3
6. 9
.5
3. 4
4 5
1.0 13.3
9. 8
3.2
3.9
.4
.3
.2
.1
.5
9.2
9.0
.7
.7
1. 5
2.9
.8
3.6
3.3
.3
.3
.1
.3
' .5
.5
4.4
3. 5
5.4
5.1
5.5
4.8
.9
.7
.8
.6
2.0
.4
.7
.3
.6
.2
.8
.5
5.0
7.5
6.9
9.3
4.7
5.8
.7
.7
.2
.5
.4
.4
5.8
8.1
7.0
6.9
5.6
7.9
7.6
7.0
.4
.3
.6
.5
.4
.8
.5
.5
.5
.6
.3
.7
.5
.5
.5
.7
.8
.5
9.3 10.3
9.6 9.8
6.7 9.7
6.5
6.4
5.6
5.8
.2
.2
.6
.3
.1
.1
5.7
7.2
4.4
4.3
4.0
4.0
.1
.1
.2
.1
.1
.1
4.1
4.7
6.5
6.5
6.01
6.0
.3
.3
.1
.1
.1
.1
5.6
7.8
870
Monthly Labor Review—October 1944
T a b le 2. —Monthly Labor Turnover Rates (Per 100 Employees) in Selected Groups and
Industries, 1 July 1944— Continued
T otal
separation
D isch arge
Quit'
M ilitary
Total
and m is
cellaneous accession
Lay-off
In d u stry
Ju ly •Tune Ju ly June Tuly lune Ju ly June Ju ly June Ju ly June
19442 1944 19442 1944 19442 1944 19442 1944 19142 1944 19442 1944
Manufacturing—C ontinued
6.5
4.4
6.9
4.9
3.7
5.2
5.5
3.6
5.9
0.3
.4
.2
0.4
.3
.4
0.3
.2
.3
0.2
.2
.2
0.3
.3
.3
Food and kindred p ro d u c ts ------------- 10.0 11.2
M eat p roducts---- -------------------- 9.5 11.2
Grain-mill products------------------- 11.6 11.0
8.5
7.9
9.2
9.7
9.5
9.5
.6
.7
1.2
.6
.7
.6
.5
.4
.6
.4
.4
.2
.4
.5
.6
Leather and leather p ro d u cts-----------L eather_________________ _____
Boots and shoes---- ------ -------------
5.8
4.6
6.0
7.2
5. 5
7. 5
5.8
4. 9
5. 9
0.4
.3
.4
.5 10.2 14.0
. 6 9. 5 13. 8
.7 14.1 13.8
Tobacco m anufactures...... ......................
7.9
8.6
7.3
7.4
.3
.4
.2
.7
.1
.1
7.6
P aper and allied p roducts---------------P ap er and p u lp ________________
P ap er boxes_______________ ____
6.6
5.6
8.6
7.4
6.7
8.9
5.3
4.4
7.3
6.3
5.6
7.8
.5
.4
.7
.4
.3
.5
.3
.3
.2
.2
.2
.1
.5
.5
.4
.5
.6
.5
7.0 9.1
6. 4 8. 4
8. 8 11. 2
Chemicals and allied pro d u cts---------Paints, varnishes, and colors------R ayon and allied products---------In d u strial chemicals, except explosives______________ _________
5.3
4.5
4.0
6.1
5.4
4.6
3.6
3.5
3.2
3.9
4.4
3.6
.6
.6
.3
.5
.6
.3
.7
.1
.2
1.2
.1
.2
.4
.3
.3
.5
.3
.5
5.5
5.0
5. 0
4.8 5.1
5. 0 4.3
7.4 10.1
3.2
3. 7
4.2
3.8
2.9
4.3
.6
.8
.7
.6
.5
.6
.5
,i
2.2
.1
.2
4.7
.5
.4
.3
.6
.7
.5
Products of petroleum and c o a l _____
Petroleum re fin in g ..........................
2.8
2.7
3.6
3.5
2.1
2.1
2.7
2.6
.2
.2
.3
.3
.2
.1
.2
.2
.3
.3
.4
.4
3.6
3. ö
4.0
3.9
R ubber p roducts___________________
R ubber tires and inner tu b e s____
R u b b er footwear and related
products---------- --------------------M iscellaneous rubber Industries...
6.1
5.6
6.7 5.1
6. C 4.7
5.6
4.8
.5
.5
.4
.4
.1
.1
.3
.3
.4
.3
.4
.5
6.4
5. 8
7.5
6.8
6.8
6.7
8.0
7.5
6.0
5.5
7.2
6.3
.2
.6
.4
.5
.3
.2
0
.3
.3
.4
.4
.4
6.0
7.1
9.0
8. 0
M iscellaneous industries.........................
4.1
4.7
2.9
3.5
.4
.5
.4
.2
.4
.5
4.6
5.0
6.4
3.1
8.8
7. C
7.5
3.9
9.2
8.7
4.6 5.5
2. S 2.6
6.1 6.9
5. C 7.0
.4
.2
.4
.3
.4
.2
.4
.5
.4
.1
.5
.9
.5
.2
.3
.2
1.0
.8
1.5
.8
1. 1
.9
1.6
1.0
3.9
2.0
4.6
4. 6
4. 5
2. 7
5. 3
5. 6
Small-arms am m unition 2-----------
9.1
6.5
7.0
6. 5
6.1
4. 5
—
—
Nonmanufacturing
M etal m ining__________ __________
Iron-ore_________ ____ __________
Copper-ore_____________________
Lead- and zinc-ore______________
M etal m ining, n o t elsewhere classified, including alum inum -ore..
8.6 10.9
6.4
7.2
1.0
1.0
.3
1.9
.9
.8
6. 5
5. 3
Coal m ining:
A n th ra c ite __________ _______ _
B itum inous____________________
2.C
4.0
1.7
3.6
1.6
3.5
1.1
3.0
0
.2
0
.2
.2
0
.1
.1
.2
.3
.2
.3
1. 5
3.3
1. 8
3.1
Public utilities:
T elephone__________ __________
Telegraph................ ...........................
3.5
3.6
3.7
4.0
3.0
3.2
3.3
3.5
.2
.2
.1
.1
.1
.1
.1
.2
.2
.1
.2
.2
4.0
4.5
4. 9
4. 4
• Since Jan u ary 1943 m anufacturing firms reporting labor turnover have been assigned in d u stry codes
on the basis of cu rren t products. M ost plants in th e em ploym ent and pay-rolls sample, comprising those
which were in operation in 1939, are still classified according to their m ajor a ctivity a t th a t time, regardless
of any subsequent change in major product.
2 D ata are prelim inary.
2 Publication of accession rates is restricted in these specific war industries.
* D a ta no t available.
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Federal Reserve Bank of St. Louis
871
Labor Turnover
T a b le 3.— Monthly Labor Turnover Rates (Per 100 Employees) 1for Men and Women
in Selected Industries Engaged in War Production, July 1944 2
Total
separation
T otal
accession
Q uit
In d u stry
M en
Women
M en
Women
M en
Women
All m a n u fa c tu rin g _________________ __ ___ . . . ___
5.6
8.2
3.9
6.8
5.2
8.1
O rdnance—................... . . .
_ __ .
G uns, howitzers, m ortars, and related equipm ent.
A m m unition, except small-arms________________
T a n k s ,. . ___ . . .
. . . . . ________________
Sighting an d fire-control e q u ip m e n t.. . . . . . .
5.5
4.6
6.5
(3)
2.1
8.7
7.2
9.5
0
5.3
3.7
3.0
4.4
0
1.1
7.1.
5.7
7.9
10.8
7.1
12.5
0
3.3
5.8
4.3
7.0
0
1.5
Iron and steel and th eir p ro d u cts. _______________ B last furnaces, steel works, and rolling m ills .. . .
Gray-iron c astin g s.. . _________________________
M alleable-iron castings ____ _________ . . . _____
Steel castings____ _____ _
_____ _______
Cast-iron pipe and fittin g s.. _________________
Firearm s (60 caliber and u n d er)_____ ____ . . . _
4.5
3.2
6.5
4.6
6.4
5.4
9.1
8.7
6.7
8.9
7.7
7.9
5.0
15.8
3.1
2.4
5.1
3.7
5.1
4.1
2.9
6.3
6.0
6.3
7.5
6.1
4.9
5.3
4.2
3.2
7.3
5.0
6.6
6.4
3.5
9.0
7.4
11.5
7.5
7.8
9.0
9.0
Electrical m achinery . . ...... ... ............ .............................
Electrical equipm ent for industrial use____ _____
Radios, radio equipm ent, and phonographs.. ___
C om m unication equipm ent, except radios . . . . .
3.8
3.0
4.8
3.0
6.5
5.9
7.6
5.0
2.5
1.9
3.1
1.6
5.5
4.8
6.6
4.4
3.5
2.5
4.8
3.1
6.4
5.4
7.9
5.3
M achinery, except electrical_______. . . ______ . . .
Engines and tu rb in es________ . . . ____________
M achine tools____________________ ___________
M achine-tool accessories__ ______ . ________
M etalw orking m achinery and equipm ent, no t
elsewhere classified___ ______________________
General industrial m achinery, except pum ps _ . _
P um ps and pum ping equ ip m en t________ ______ _
4.0
4.4
2.6
3.9
6.7
6.7
5.9
5.6
2.7
2.4
1.8
2.2
5.3
4.5
4.6
4.1
3.6
3.7
2.2
3.0
6.3
5.6
5.9
5. 1
3.2
4.3
3.3
5.7
7.2
7.0
2.1
2.9
2.3
4.6
6.0
6.1
2.8
3.6
3.5
6.6
6.1
9.2
T ransportation equipm ent, except autom obiles______
_ . _ __________ . . . _____
A ircraft_____ _
Aircraft p a rts _________________________________
Shipbuilding an d rep air__ __
. . . . . . . . _____
7.0
5.5
4.3
9.0
8.9
7.8
8.2
11.8
4.4
3.5
2.8
5.6
6.8
6.5
5.8
8.4
5.3
4. 1
'3.5
6.6
8.3
7.0
8.0
11.3
N onferrous m etals and th eir p ro d u c ts ______________
P rim ary smelting and refining, except alum inum
and m agnesium _____________________________
A lum inum and magnesium sm elting and refining.
Rolling and draw ing of copper and copper alloys..
A lum inum and magnesium p ro d u c ts .. .
_
N onferrous-metal foundries, except alum inum
a n d m agnesium .................. ............ . _____ _____
7.0
9.1
4.8
6.4
5.5
7.6
4.2
12.7
3.8
7.9
6.8
8.5
6.6
12.8
3.1
9.6
2.8
4.9
5.2
6.3
5.9
7.3
3.1
13.8
3.2
4.6
7.9
8.7
8.2
6.8
5.5
6.7
4.2
5.9
5.2
7.1
Chemicals an d allied p roducts_____________________
Indu strial chemicals, except explosives............... .
Explosives___________________________________
Small-arms am m unition_______________________
4.5
4.3
4.4
6.4
7.0
6.9
6.4
8.7
2.8
2.8
3.2
3.2
5.2
4.8
4.8
5.5
4.3
4.0
5.3
5.2
8.1
6.5
13.3
9.3
0
3.9
1 These figures are presented to show com parative turnover rates and should not be used to estim ate
em ploym ent.
2 D a ta are prelim inary.
3 D ata no t available.
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Federal Reserve Bank of St. Louis
Building Operations
B u ild in g C onstruction in U rban A reas, A u gu st 1 9 4 4
BUILDING construction started in urban areas of the United States
during August was valued at 85 million dollars, 6 percent less than
the July total. Federal contract awards declined one-fifth in value to
the lowest level since the beginning of the war construction program,
while non-Federal construction volume remained virtually the same
as in July. The value of additions, alterations, and repairs declined
10 percent and that of new residential and new nonresidential con
struction, 6 and 3 percent, respectively.
Chiefly because of a 44-percent decrease in the volume of Federal
construction contracts awarded, there was a 9-percent drop in the
value of all urban building construction started this August as com
pared with August of last year. Permit valuations for non-Federal
construction were only 8 percent lower than last August.
Both Federal and non-Federal new residential building were sub
stantially lower this August than in August 1943. On the other
hand, in the case of new nonresidential building, the non-Federal was
more than twice last year’s August total, while the Federal was a
third less, resulting in a 10-percent increase in the total.
T able
1.—Summary of Building Constiuction in A ll Urban Areas, August 1944
N um ber of buildings
Class of construction
P ercent of
change from—
Percent of
change from—
Ju ly
1944
July
1944
A ugust
1943
A ugust
1944
All building co n stru ctio n ,.
V aluation
A ugust
1944 (in
thousands)
A ugust
1943
_ __ __
55, 719
-1 2 .1
-1 2 .7
$84, 969
- 6 .1
-1 9 .2
N ew residential
______
________ _______
N ew n onresidential..
____ __________
A dditions, alterations, and repairs__________
6,996
6,162
42, 561
-1 2 .0
-2 9 .5
-8 .8
-4 7 .9
-1 9 .3
-.4
26, 725
31, 606
26,638
- 6 .0
- 2 .6
-1 0 .2
-4 9 . 2
+10.6
+ 11.3
T h e n u m b er of new dwelling units in u rb an areas for which build
ing p erm its were issued or F ederal contracts aw arded during A ugust,
and th eir v aluation, are presented in table 2.
872
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Federal Reserve Bank of St. Louis
Building Operations
873
T a ble 2.— Number and Valuation of New Dwelling Units in A ll Urban Areas, by Source
of Funds and Type of Dwelling, August 1944
N u m b er of dwelling units
Percent of
change from—
Source of funds and type of dw elling
August
1944
Ju ly
1944
A ugust
1943
V aluation
Percent of
change from—
August
1944
(in thou
sand)
Ju ly
1944
August
1943
All dwellings _______
8, 236
- 5 .6
-5 3 .5
$26,426
- 5 .1
-4 9 .5
P riv ately financed- 1fam ily____
2fam ily i ___
M ultifam ily 2__
F ederally fin a n c e d ___
7,271
5,441
658
1,172
965
-4 . 9
-1 6 .8
+67.9
+63.5
-1 0 .1
-4 4 .4
-2 5 .0
-6 6 .0
-7 0 .0
-7 9 .1
22,849
17,069
2, 427
3, 353
3,577
- 3 .5
-1 5 .4
+78.1
+56.0
-1 3 .9
-4 6 .6
-3 0 .0
-5 9 .5
-7 3 .0
-6 2 .3
1 Includes 1- and 2-family dwelling w ith stores.
2 Includes m ultifam ily dwellings w ith stores.
Comparison of First 8 Months of 1943 and 1944
I ermit valuation and contract values for all building construction
as reported in the first 8 months of 1944 are compared with similar
data for 1943 in table 3.
T a ble 3.
Valuation of Building Construction in A ll Urban Areas, by Class of
Construction, First 8 Months of 1943 and 1944
Valuation (in thousands of dollars)
T otal construction
Class of construction
First 8 m onths of—
Federal
First 8 m onths of—
P er
cent of
change
1944
1943
P er
cent of
change
1944
1943
All construction
745, 253
857, 485
-1 3 .1
224, 414
426, 240
-4 7 .4
N ew residential-. _
N ew nonresidential.
A dditions, alterations, and repairs
254, 484
290, 482
200, 287
398,182
315,137
144,166
-3 6 .1
- 7 .8
+38.9
38,014
178, 316
8,084
153, 018
261,127
12, 095
-7 5 .2
-3 1 .7
-3 3 .2
T a ble 4. —Number and Valuation of New Dwelling Units in A ll Urban Areas, by
Source of Funds and Type of Dwelling, First 8 Months of 1943 and 1944
*
N um ber of dwelling un its
Source of funds and type of dwelling
F irst 8 m onths of—
1944
1943
Percentof
change
V aluation (in thousands of
dollars)
First 8 m onths of—
1944
1943
P er
cent
of
change
All dwellings - ___________
82,094
145, 901
-4 3 .7
251, 598
387,030
-3 5 .0
P rivately financed_____________
1fam ily_ .
2fam ily i _
M ultifam ily 2_
F ederal_______ ______ _
68, 265
52, 212
6, 953
9,100
13,829
79,094
51, 900
10, 595
16, 599
66,807
-1 3 .7
+ .6
-3 4 .4
-4 5 .2
-7 9 .3
215,141
164,604
23,971
26, 566
36,457
244, 514
169, 919
29, 365
45, 230
142, 516
-1 2 .0
- 3 .1
-1 9 .4
-4 1 .3
-174.4
1 Includes 1- and 2-family dwellings w ith stores.
2 Includes m ultifam ily dwellings w ith stores.
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Federal Reserve Bank of St. Louis
874
Monthly Labor Review—October 1944
Construction from Public Funds, August 1944
The value of contracts awarded and force-account work started
during July and August 1944 and August 1943 on all construction
projects and shipbuilding financed wholly or partially from Federal
funds and reported to the Bureau of Labor Statistics is shown in
table 5. This table includes construction both inside and outside the
corporate limits of cities in urban areas of the United States.
T a ble 5. — Value of Contracts Awarded and Force-Account Work Started On Construction
Projects Financed From Federal Funds, August 1944
Value of contracts aw arded and force account
work started (in thousands)
Source of Federal Funds
A ugust 1944 1
Ju ly 1944 2
A ugust 1943 2
___ ______ ______ ____ ___
$306, 722
$179, 555
$227,589
W ar public w o rk s . .
_____ _
. __
______
Regular Federal appropriations
__ .
Federal Public Housing A u th o rity ___ _- _ ____ ____
5, 671
296,852
4, 249
7,026
167,948
4, 581
4,031
204,493
19,065
All Federal funds__
.
1 Prelim inary; subject to revision.
2 Revised.
Coverage and Method
Figures on building construction in this report cover the entire urban
area of the United States which by Census definition includes all incor
porated places with a 1940 population of 2, 500 or more, and by special
rule, a small number of unincorporated civil divisions. Valuation
figures, the basis for statements concerning volume, are derived from
the estimates of construction costs made by prospective private builders
when applying for permits to build, and the value of contracts awarded
bj7- Federal and State governments. No land costs are included.
Unless otherwise indicated, only building construction within the
corporate limits of cities in urban areas is included in the tabulations.
Reports of building permits which were received in August 1944 for
the cities containing between 80 and 85 percent of the urban popula
tion of the country provide the basis for estimating the total number
of buildings and dwelling units and the valuation of private urban
building construction. Similar data for Federally financed urban
building construction are compiled directly from notifications of
construction contracts awarded, as furnished by Federal agencies.
T h e co n tracts aw arded for F ederally financed building construction
in 'u rb a n areas were valued a t $17,901,000 in A ugust 1944, $22,655,000
in Ju ly 1944, and $31,942,000 in A ugust 1943.
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Federal Reserve Bank of St. Louis
Trend o f Employment, Earnings, and Hours
Sum m ary of R eports fo r A u gu st 1 9 4 4
THE total number of employees in nonagricultural establishments
was 38,771,000 in August, 47,000 more than in July but a million less
than in August 1943. The gain during the month reflects a seasonal
expansion of the manufacturing component and the addition of
36.000 workers to Federal, State, and local governments.
Industrial and Business Employment
Wage-earner employment in all manufacturing industries increased
70.000 in August, in spite of a decrease of 19,000 in the durable-goods
group of manufacturing industries. The decline in this group of indus
tries primarily reflects further cut-backs in the aircraft and shipbuild
ing industries, aggregating 34,000 for the transportation-equipment
group as a whole. To a limited extent this was offset by an increase
of 10,000 in the automobile industry and by gains of less magnitude
in the iron and steel and lumber groups. The gain in the automobile
industry resulted from increased production of automobile replacement
parts. The rise in iron and steel employment was localized in the bag
and shell loading industry, while the increased employment in lumber
was seasonal.
The gain of 89,000 wage earners in the nondurable-goods group was
due primarily to the seasonal expansion of the food group and, to a
lesser degree, of the apparel group. The canning industry was wholly
responsible for the 75,000 wage earners added to the food group. The
peach and apricot crops, the largest on record, necessitated the hiring
of many part-time workers by the canning industry.
The expansion in the production of smokeless powder is reflected in
the addition of 4,000 employees to the chemicals group. The increase
over the month in this group is the first increase since October 1943.
Anthracite mines employed 64,400 wage earners, slightly less than
in July but more than 4,000 less than in June, an indication of the
strikes that started in July and continued into August. Similarly the
decline of 5,000 miners in bituminous-coal mining between June and
August reflects, primarily, scattered strikes in that industry.
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875
876
T able
Monthly Labor Review-—October 1944
1.—Estimated Number of Wage Earners and Indexes of Wage-Earner Employment
in Manufacturing Industries, by Major Industry Group 1
Estim ated num ber of wage earners Wage-earner in
(in thousands)
dexes (1939=100)
In d u stry group
Ju ly
1944
June
1944
Aug.
1943
__________
_____
All m anufacturing___
D urable goods______ ___ _______ ___________
N ondurable goods_____________________ _______
13,001
7,715
5,286
12, 931
7, 734
5,197
12,985
7,819
5,166
13,990
8, 321
5,669
158.7
213.7
115.4
157.8
214.2
113.4
Iro n and steel a n d th eir p roducts__________ _______
E lectrical m achinery ___ ______—__________________
M achinery, except electrical
_ .
____
__ _ _
T ran sp o rtatio n equipm ent, except automobiles- A utom obiles________ _________ _______ _ _____
N onferrous m etals and their products____ - _ _
L um ber and tim ber basic p roducts_____ ___________
F u rn itu re and finished lum ber products- - _ ______
Stone, clay, an d glass p ro d u c ts _________ _ _ _____
1,663
719
1,154
1,998
691
380
438
341
331
1,657
720
1,161
2,032
681
379
431
340
333
1,660
729
1,177
2,079
689
385
427
339
334
1,718
717
1,251
2,304
714
415
482
362
358
167.7
277.4
218.4
1258. 6
171.7
165.6
104.3
104.1
112.7
167.1
277.8
219.8
1280.2
169.4
165.2
102.4
103.5
113.4
Textile-m ill products and other fiber m anufactures___
A pparel and other finished textile p roducts__________
L eather and leather products- _ _________ ___ _ __
Food- ____________________
_________ ______
Tobacco m anufactures-. ____________ _ _ ____ _
P aper and allied p roducts________ _ ______. . .
Prin tin g , publishing, and allied in d u strie s-..
_ __ .
Chem icals and allied products. ________ _________
Products of petroleum and coal.
_
................
R u b b er p ro d u c ts _____________ ______________ ____
M iscellaneous industries__ _ _ _ . __. __
1,083
762
307
1,127
83
303
332
588
135
191
375
1,089
747
307
1,052
83
303
333
584
134
190
375
1,105
773
308
975
84
303
331
585
132
191
379
1,204
834
325
1,097
88
315
337
741
127
194
407
94.7
96.5
88.5
131.8
88.'5
114.1
101.1
204.0
127.6
157.8
153.2
95.2
94.6
88.5
123.1
88.6
111 3
101.6
202.7
126.7
157.4
153.5
<iS
All 2;.
1944 2
Ju ly
1944
1 T h e estim ates and indexes presented in th is table have been adjusted to final data for 1941 and
prelim inary d ata for th e second q u arter of 1942 made available b y the B ureau of E m ploym ent Security of
the Federal Security Agency.
2 Prelim inary.
Public Employment
T o ta l em ploym ent of th e N av y D e p a rtm e n t declined in A ugust
N a v y em ploym ent in
contin en tal U n ited States, however, continued upw ard, w ith an in
crease of 5,000. E m ploym ent in th e W ar D ep artm en t, after reces
sions in fall and spring and increases in w inter and sum m er m onths,
showed a n e t decrease of 58,000 in A ugust 1944 over A ugust 1943.
Increases w hich occurred in agencies o th er th a n th e w ar agencies
were m ainly in the P o st Office D e p artm en t (9,000) and in the A gricul
tu re and In terio r D e p artm en ts and V eterans A dm inistration (1,000
each). T he inland W aterw ays C orporation, previously rep o rted as a
G overnm ent corporation, was included w ith d a ta for th e Com m erce
D e p a rtm e n t for th e first tim e in A ugust 1944, and accounted for th e
entire increase of 2,000 in Com m erce D e p a rtm e n t em ploym ent.
T he to ta l of 3,326,000 em ployees in the entire F ederal executive
service in A ugust 1944 was 20,000 higher th a n th e to ta l in July, and
40,000 higher th a n th a t of a y ear ago. F rom Ju ly to A ugust 1944,
w ar agencies gained 5,000 ,and o th er agencies 14,000.
1944, for th e first tim e since A pril 1938.
Employment on shipbuilding and repair projects financed by the
Federal Government totaled 1,530,000 in August 1944. Of the decline
of 32,000 dining the month 2,000 took place in navy yards and 30,000
in private shipyards.
Although the Pacific region showed the greatest numerical decrease
(8,000), greater relative decreases occurred in all the other regions.
However, the Pacific region showed the greatest relative decline over
the year—13 percent.
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Trend oj Employment, Earnings, and Hours
877
Employment on Federally financed construction projects showed
little net change over the month. The construction of nonresidential
buildings, streets and highways, water and sewer systems, and mis
cellaneous projects showed slight increases, which, however, were
more than offset by small decreases on other projects. The net decline
on all projects was 700 during the month and 315,000 during the year.
Completions of war-production facilities during August 1944 were
responsible for a decline.of 5,000 persons on projects financed from
RFC funds.
Seasonally greater activity on the construction and maintenance of
State roads financed from State or local funds caused increases of
2,000 and 3,000, respectively, on the two types of projects, during
August.
T a b le 2. —Employment and P ay Rolls in Regular Federal Services, August 1944
[Subject to revision]
E m ploym ent
P ay rolls
Service
August
1944
Ju ly
1944
A ugust
1943
A ugust
1944
Ju ly 1944
A ugust
1943
Executive 1_________________________ 3, 325,848 3,306,261 3, 285,466 $712, 592,000 $708, 630, 000 $704,618, 000
W ar agencies 2_ ________________ 2, 482, 261 2,476,944 2, 468, 842 543, 959,000 542,800, 000 541, 166,000
C ontinental U nited S tates____ 2,112,426 2,103,800 2,161, 506
0
0
0
Outside continental U nited
States 4___________ _______
369,835 373,144 307,336
0
0
0
O ther agencies
\
______ 843, 587 829, 317 816,624 168,633, 000 165, 830,000 163,452,00
C ontinental U nited States____ 828, 723 814,428 800, 558
0
0
0
O utside continental U nited
States 4___________________
14,864
16, 066
14,889
0
0
0
Judicial___________________ _______
Legislative_________________________
2,655
6, 212
2,663
6, 258
2,651
6,091
784, 351
1,528, 319
786, 714
1, 508,434
767,776
1, 510, 725
1 Includes employees in U nited States nav y yards and on force-account construction who are also included
under construction projects. P ay rolls for Ju ly and A ugust 1944 are estim ated.
2 Covers W ar and N avy D epartm ents, M aritim e Commission, N ational A dvisory C om m ittee for Aero
nautics, T he P anam a Canal, Office for Emergency M anagem ent, Office of Censorship, Office of Price
A dm inistration, Office of Strategic Services, Selective Service System, Petroleum A dm inistration for
W ar, W ar Refugee Board, and Com m ittee for Congested Production Areas.
3 Break-down not available.
4 Includes Alaska and the P anam a Canal Zone.
Data for the legislative and judicial services are reported to the
Bureau of Labor Statistics and data for the executive service are
reported through the Civil Service Commission. For most agencies
the Bureau of Labor Statistics receives monthly reports on employ
ment and pay rolls for the various construction and shipbuilding and
repair projects, financed wholly or partially from Federal funds,
directly from the shipyards and construction contractors. For proj
ects of the War Department and Federal Public Housing Authority,
however, reports are received through the headquarters of the respec
tive agencies, and for State road projects, they are received through the
Public Roads Administration.
A summary of employment and pay-roll data is shown in table 2 for
the regular Federal services. Table 3 shows data for construction and
total shipbuilding and repair projects financed wholly or partially
from Federal funds, and for State road projects financed wholly from
State or local funds, while table 4 shows data for shipbuilding and
repair projects by region. It should be noted that data for employees
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Federal Reserve Bank of St. Louis
Monthly Labor Review—October 1944
878
located outside continental United States are included in the figures
for the regular Federal services but are excluded from those for con
struction and shipbuilding and repair projects. Federal workers who
receive either $1 a year or month or no compensation whatever for their
services are excluded.
T a ble 3.—Employment and P ay Rolls on Federally Financed Construction and Ship
building and Repair Projects 1 and on Locally Financed State Roads, August 1944
[In thousands]
P a y rolls
E m ploym ent
Program and ty p e of project
August
19442
August
1943
Ju ly
1944
A ugust
1943
A ugust
19442
July
1944
1, 561. 2
326.2
1, 235. 0
1, 714.9
333.0
1, 381.9
426,185
89,019
337,166
435,040
89, 632
345,417
460,824
88, 291
372,533
184.7
19.9
409.7
71.8
34,829
3,170
35,110
3,364
91, 721
11,825
23.6
78.3
.3
14.5
20.3
17.0
5.1
5.7
36.6
76.2
227.9
.7
21.3
29.6
35.2
8.5
27.5
156.1
4, 708
14, 690
78
3,041
3,854
3,102
1,063
1,123
7,073
5,108
14, 496
67
3,172
3,961
3,020
809
1,113
8,164
15,634
41,664
114
4,169
5, 387
6,247
1,833
4,848
36,102
19.1
98.2
28.9
98.1
(6)
(6)
(«)
(6)
Federal
Shipbuilding and rep air----- -- ------------------------ 1, 529. 5
324.0
U nited States n av y yards 3----------------------P riv ate shipyards___________________ ____ 1, 205. 5
C onstruction:
184.0
Financed from Federal appropriations 45—
18.8
A irports------ --------- ------ -- ----------- Buildings—
21.8
R esidential------------------ -----79.3
N onresidential___ _ ___ - -----.4
E le c trific atio n ..„ ---------------------- ._
13.9
R eclam ation_____________________ . .
19.8
R iver, harbor, and flood control. ----------17.5
Streets and h ig h w a y s... ------------------------6.7
W ater and sewer system s------------------------5.8
M iscellaneous____ . . . ---------- ------ . .
31.7
Financed from R . F. C. fu n d s-----------------State «
N ew road construction... ________ _________
R oad m aintenance_______ ___________ ____ _
21.0
101.2
(6)
(6)
i D a ta are for continental U nited States exclusive of Alaska and the Panam a Canal Zone. E m ploy
m ent d ata represent the weekly average; pay-roll d ata for construction projects are for the calendar m onth;
pay-roll d ata for shipbuilding and repair are for th e fiscal m onth.
- x le iiiiJ iiia iy .
3 Includes all navy yards constructing or repairing ships, including the C urtis B ay (M d.) Coast G uard
yard.
4 Includes the following force-account employees hired directly b y the Federal G overnm ent: August
1943, 47,631; Ju ly 1944, 39,272; A ugust 1944, 38,369. These employees are also included under the Federal
executive service; all other workers were em ployed by contractors or subcontractors.
5 D ata for A ugust 1944 partially estim ated.
6 D ata not available.
T a b l e 4. — Total Employment in United States Navy Yards and Pi irate Shipyards,
by Shipbuilding Region, August 1944
E m ploym ent (in thousands)
Shipbuilding region
August
1944 i
All regions.
U nited States n av y yards 2_______ . . . . _____
P riv ate sh ip y ard s____________ ______________
N orth A tlantic .
South A tlantic.
Gulf_________
Pacific
.
. . . . . . . . . . . .
G reat L ak es.. _____ . . . ............... ...
In la n d __________ _________________
_ . ...
___________
Ju ly
1944
August
1943
Percent of change
Ju ly to
A ugust
1944
August
1943 to
August
1944
1, 529. 5
324.0
1, 205. 5
1. 561. 2
326.2
1, 235.0
1, 714. 9
333.0
1, 381.9
- 2 .0
-.7
- 2 .4
-1 0 .8
- 2 .7
-1 2 .8
552. 5
135.0
207.7
513.2
58.9
62.2
562.5
137.4
213.4
521.0
63.5
63.4
630.0
153.1
231.3
587.8
66.1
46.6
- 1 .8
- 1 .7
- 2 .7
- 1 .5
- 7 .2
- 1 .9
-1 2 .3
-1 1 .8
-1 0 .2
-1 2 .7
-1 0 .9
+33.5
1 Prelim inary.
2 Includes all nav y yards constructing or repairing ships, including the C urtis B ay (M d.) Coast G uard
yard.
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Federal Reserve Bank of St. Louis
Trend of Employment, Earnings, and Hours
879
D etailed R eports for In d u strial and B u sin ess E m p loy
m ent, July 1 9 4 4
Estimates of Nonagricultural Employment
E S T IM A T E S of em ploym ent in nonagricultural establishm ents are
show n in tab le 1. T he estim ates are based on reports of em ployers
to th e B ureau of L abor S tatistics, on unem ploym ent-com pensation
d a ta m ade available by th e B ureau of E m ploym ent S ecurity of the
F ed eral S ecurity Agency, and on inform ation supplied by other
G o vernm ent agencies, such as th e In te rs ta te Com m erce Commission,
C ivil Service Commission, B ureau of th e Census, and the B ureau of
Old-Age and Survivors Insurance. T he estim ates include all wage
an d salaried w orkers in nonagricultural establishm ents b u t exclude
m ilitary personnel, proprietors, self-employed persons, and dom estic
servants.
E stim a te s of em ployees in nonagricultural establishm ents, by
S tates, are published each m o n th in a detailed re p o rt on em ploym ent
and p ay rolls.
T able 1.—Estimated Number of Employees in Nonagricultural Establishments, by
Industry Division
E stim ated num ber of employees
(in thousands)
In d u stry division
July
1944
June
1944
M ay
1944
T o tal estim ated e m p lo y m e n t1_____________________________
38,724
38, 824
38, 672
39, 921
M anufacturing— _____: _______________________ _____ _. __
M ining___ _ _ _ . . .
__ ___ ___
C ontract construction and Federal force-account c o n stru ctio n ..
T ransportation and public u tilities______________________
T rad e_____ ___ . . ______ _______ _________ .
____ . . .
Finance, service, and miscellaneous_____ . . ._
Federal, S tate, and local governm ent, excluding Federal forceaccount c o n s tr u c tio n ..___________ _______ . . . __________
16,042
833
685
3,808
6, 945
4, 581
16, 093
844
691
3, 803
6,977
4, 520
16,122
839
686
3, 768
6,962
4, 363
17, 059
888
1,222
3,689
6,920
4, 230
5,830
5,896
5,932
5,913
July
1943
1Estimates include all full- and part-time wage and salary workers in nonagricultural establishments who
are employed during the pay period ending nearest the 15th of the month. Proprietors, self-employed
persons, domestic servants, and personnel of the armed forces are excluded.
Industrial and Business Employment
Monthly reports on employment and pay rolls are available for 154
manufacturing industries and for 26 nonmanufacturing industries,
including water transportation and class I steam railroads. The
reports for the first two of these groups—manufacturing and non
manufacturing—are based on sample surveys by the Bureau of Labor
Statistics. The figures on water transportation are based on esti
mates prepared by the Maritime Commission, and those on class I
steam railroads are compiled by the Interstate Commerce Commission.
T he em ploym ent, p ay roll, hours, and earnings figures for m an u
facturing, m ining, laundries, and cleaning and dyeing, cover wage
earners only; b u t the figures for public utilities, brokerage, insurance,
an d hotels relate to all em ployees except corporation officers an d execu
tives, while for trad e th ey relate to all employees except corporation
610054— 44-----14
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Federal Reserve Bank of St. Louis
880
Monthly Labor Review—October 1944
officers, executives, and other employees whose duties are mainly
supervisory. For crude-petroleum production they cover wage earn
ers and clerical field force. The coverage of the reporting samples for
the various nonmanufacturing industries ranges from about 25 percent
for wholesale and retail trade, cleaning and dying, and insurance, to
about 80 percent for public utilities and 90 percent for mining.
The general manufacturing indexes are computed from reports sup
plied by representative establishments in the 154 manufacturing in
dustries surveyed. These reports cover more than 65 percent of the
total wage earners in all manufacturing industries of the country and
about 80 percent of the wage earners in the 154 industries covered.
Data for both manufacturing and nonmanufacturing industries are
based on reports of the number of employees and the amount of pay
rolls for the pay period ending nearest the 15th of the month.
IN D E X E S O F E M P L O Y M E N T A N D P A Y R O L L S
Employment and pay-roll indexes, for both manufacturing and
nonmanufacturing industries, for May, June, and July 1944, and for
July 1943, are presented in tables 3 and 5.
The figures relating to all manufacturing industries combined, to
the durable- and nondurable-goods divisions, and to the major in
dustry groups, have been adjusted to conform to levels indicated by
final data for 1941 and preliminary data for the second quarter of 1942
released by the Bureau of Employment Security of the Federal Secur
ity Agency. The Bureau of Employment Security data referred to are
(a) employment totals reported by employers under State unemploy
ment-compensation programs, and (b) estimates of the number of
employees not reported under the programs of some of these States,
which do not cover small establishments. The latter estimates were
obtained from tabulations prepared by the Bureau of Old-Age and
Survivors Insurance, which obtains reports from all employers, regard
less of size of establishment.
Not all industries in each major industry group are represented in
the tables, since minor industries are not canvassed by the Bureau,
and others cannot be shown because of their close relationship to the
war program. Furthermore, no attempt has been made to allocate
among the separate industries the adjustments to unemploymentcompensation data. Hence, the estimates for individual industries
within a group do not in general add to the total for that group.
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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
V
I
»
v
EMPLOYMENT AND PAY ROLLS
ALL MANUFACTURING INDUSTRIES
1 9 3 9 = IOO
IN D E X
450
?3
a,
300
I
3£
3
3
ero.
33
a-
=
5
3
50
3
WAGE EARNERS AND WAGE EARNER PAY ROLL
00
CO
882
Monthly Labor Review—October 1944
T a ble 2. —Estimated Number of Wage Earners in Manufacturing Industries
E stim ated num ber of wage earners
(in thousands)
In d u stry 2
All m anufacturing----- ------------------------ ->------------------------D urable goods-------------------------------- ---------------------------N ondurable goods................................................ - ------ ------------
Ju ly
1944
Ju n e
1944
M ay
1944
12,931
7,734
5,197
12, 985
7,819
5,166
13, 020
7,879
5,141
July
1943
13,911
8, 296
5,615
Durable goods
Iron and steel and their products---------------------------------------- B last furnaces, steel works, and rolling mills-------------------G ray-iron and semisteel castings--------- --------------------M alleable-iron castings-------------------------------------------------Steel castings---------------- ------ ----------------------- ---------- ----Cast-iron pipe and fittings--------------------------------------------T in cans and other tin w are..- ----------------------------- W ire draw n from purchased rods-----------------------------------W irew ork_______________________ ____ ______________ --C utlery and edge tools-------------------------------------------------Tools (except edge tools, machine tools, files, and saws)___
H ard w are______________________________ --------- -----------Plum bers’ supplies------------------------------------------------------Stoves, oil burners, and heating equipm ent, not elsewhere
classified------- ----------------------------------------------------------Steam and hot-w ater heating apparatus and steam fittings-.
Stam ped and enam eled ware and galvanizing-----------------Fabricated stru ctu ral and ornam ental m etalw ork-------------M etal doors, sash, frames, molding, and trim ____________
Bolts, n u ts, washers, and riv e ts ,. ..........
- - -Forgings, iron and steel----- ----------- --------------W rought pipe, welded and heavy riv eted ________________
Screw-machine products and wood screws-------------------- ..
Steel barrels, kegs, and d ru m s----------------------------------------
1,657
481.0
72.6
24.3
73.5
15.5
41.2
32.8
35.2
22.8
27.1
45.8
22.7
1,660
481.8
73.1
24.6
74.6
15.3
39.8
33.4
35.0
23.0
27.7
45.6
22.9
1,656
481.5
73.4
24.6
75.6
15.1
37.5
33.5
34.6
22.9
27.8
45.8
23.0
1, 715
517.7
80.9
26.2
84.1
15.6
35.2
35.7
32.8
21.4
27.6
45.7
23.2
63.5
55.6
89.0
75.3
13.2
26.3
35.0
26.2
44.8
6.9
63.0
56.3
88.8
76.2
13.1
26.6
36.5
26.4
45.9
6.5
61.7
56.7
88.5
76.2
13.2
27.0
37.4
26.2
46.4
6.7
54.8
59.2
91.2
69.7
13.2
29.2
40.1
26.8
49.9
8.6
Electrical m achinery---------------------------------------------------------Electrical equ ip m en t----------------------------------------------------Radios and phonographs 3--------------------------------------------Com m unication e q u ip m e n t3-.
— --------------——
720
449.8
126.3
112.1
729
456.0
128.6
112.5
731
455.1
128.9
115.0
714
463.6
115.7
111.0
M achinery, except electrical-------. ...
----- - - M achinery an d machine-shop products___________ _____
T ractors--------------------- ---------------- ---------------------------A gricultural m achinery, excluding tracto rs---------------------M achine tools___ .
-------------- ------ ---------- ..
Machine-tool accessories. -------------------------------------------Textile m a c h in e ry --------- -------- ------------------------------------P um ps and pum ping equipm ent---------------------- ------------T ypew riters____________________________ _____________
Cash registers, adding and calculating m achines__________
W ashing machines, wringers, and driers, dom estic________
Sewing machines, domestic and in d u s tria l___ . . .
Refrigerators and refrigeration eq u ip m en t----------------- . . .
1,161
462.2
60.0
45.4
77.0
67.8
26.8
79.0
11.3
32.2
13.6
9.3
52.2
1,177
468.0
60.0
45.9
78.5
68.7
27.2
80.9
11.1
33.4
13.7
9.3
52.9
1,178
469.6
59.7
45.3
79.1
69.5
27.6
80.5
11.2
33.1
13.5
9.3
52.5
1,251
494.5
52.3
38.7
110.5
88.3
28.4
76.6
11.9
34.9
14.1
10.7
54.5
T ransportation equipm ent, except autom obiles.............. ..............
Locomotives-------------------------------------- - ............... .............
Cars, electric- and steam-railroad . . . ---- . . . ------ -Motorcycles, bicycles, and p a rts________________________
2,032
35.6
58.2
9.4
2,079
36.1
58.3
9.5
2,137
36.4
58.5
9.3
2,306
33.8
62.0
9.8
Automobiles---------- ------ ----- ----------------------------------------------
681
689
696
694
Nonferrous m etals and their p roducts------------------ ---------------Sm elting and refining, prim ary, of nonferrous m etals--------Alloying and rolling and draw ing of nonferrous metals except alum inum ______________________________ -_ -----Clocks and w atches. _ _ ----------------- --------- -------------Jewelry (precious metals) and jewelers’ findings------------- _
Silverware and plated w are__________
- - -- ------Lighting e q u ip m e n t... ----------------- -----. . . . --- . _ .
A lum inum m anufactures-------- ----------- ------ ------------- - - Sheet-metal work, not elsewhere classified--------------------- _
379
48.3
385
49.1
388
51.0
414
58.2
67.9
25.6
13.7
10.6
26.5
72.7
32.3
70.3
25.4
14.1
10.5
26.2
74.6
32.4
71.5
24.8
14.2
10.4
25.3
76.1
31.7
74.6
24.8
15.8
11.8
24.4
78.8
30.3
Lum ber and tim ber basic p ro d u cts..- . . . . . ...................... . .
Sawmills and logging cam ps_____________ _____________
Planing and plywood m ills-------- ---------- ------ -------------
431
237.5
71.3
427
235.4
71.0
425
232.5
72.2
484
264.5
82.7
See fo o tn o te s a t e n d o f ta b le .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Trend of Employment, Earnings, and Hours
T
able
2 .— E s ti m a t e d N u m b e r
of
W age
E arners
in
>r
883
M a n u f a c t u r i n g I n d u s t r i e s 1— C o n
E stim ated num ber of wage earners
(in thousands)
In d u stry 1
Ju ly
1944
June
1944
M ay
1944
July
1943
Durable goods— C ontinued
>
V
F u rn itu re and finished lum ber products------------------------------M attresses and bedsprings...........................................................
F u rn itu re ---------------- ---------------------- --------------------------W ooden boxes, other th an cigar------- --------------------------C askets and other m orticians’ goods------------------------------W ood preserving------- ----- ------ -------------------------------------W ood, tu rn ed and shaped-------- -------------------------------------
340
16.9
156.5
28.2
12.5
10.2
22.0
339
16.6
157.7
28.2
12.7
10.0
21.1
336
16.4
155.9
28.2
12.4
9.8
21. 2
360
18.3
168.6
29.4
11.8
10. 6
22. 7
Stone, clav, and glass products-------------------------------------------Glass and glassware____________________________________
Glass products m ade from purchased glass----------------------C e m e n t . . . ______- ---------------------------------------------------B rick, tile, and terra co tta--------------------------------------------P o ttery and related p ro d u cts— ---------- -------------------------G ypsum ______________________________________________
W allboard, plaster (except gypsum ), and mineral wool-----Lim e________ _______________________________________
M arble, granite, slate, and other products-----------------------A brasives------------------------------------------------------------------Asbestos products............- .............. - ................ ............................
333
91.3
10.3
17.4
42.8
41.4
4.1
334
92.7
10.3
17.1
42.7
41.6
4.1
332
91.6
10.4
17.0
42.3
41.2
4. 2
358
88.4
11. 4
24.1
51.1
42.2
9 .7
8 .2
13.1
21.3
2 0 .6
9 .4
8 .2
12.7
21.7
2 0 .5
9 .2
8 .4
12.4
21 .5
20 .8
4. 6
11.0
9. 5
12 .6
24. 5
22. 3
Textile-m ill products and other fiber m anufactures----------------C otton rhanufactures, except smallwares------------------------C otton sm allw ares__________ ______ _______ __________
Silk and rayon goods----------------------------------------------------Woolen and w orsted manufactures, except dyeing and finishing.
_ __________ _____
H osiery___________________ ____ ____ ______ ___________
K n itte d cloth_________________________________________
K nitted outerw ear and k n itte d gloves---------- ----------------K nitted underw ear----- - ------- -------- -----------------------------Dyeing and finishing textiles, including woolen and worstedC arpets and rugs, wool-------------------------------------------------H ats, fur-felt.. ---------------------- ----------- -------------------.Tute goods, except felts_________________________________
Cordage and tw ine------------------------------------ --------- ---------
1,089
434. 2
13.1
8 8 .5
1,105
435.8
13.4
8 9 .5
1, 111
437.9
13.5
8 9 .6
1,219
484. 2
16.6
95 .0
145.9
104.1
10.4
28 .8
3 5 .2
60.1
19.9
9 .2
3 .2
15.3
151.3
106.2
10.6
29.6
36.1
6 0 .8
20.3
9 .4
3 .3
15.4
‘ 152.1
106.5
10.8
30 .0
36.1
62.4
20.3
9. 5
3 .3
15.7
164.8
15.6
11.7
3 2 .9
41.7
66. 8
22. 4
9. 8
3 .1 7
17. 2
A pparel and other finished textile products------------ ------------M en ’s clothing, no t elsewhere classified--------------------------Shirts, collars, and nightw ear------------------------ -------------U nderw ear and neckwear, m en’s_____________ - - - --------W ork sh irts-------------- ---------------------------------------- -----W om en’s clothing, no t elsewhere classified----------------Corsets and allied garm ents__________________________ M illinery_____________________________________________
H andkerchiefs____________ _ -------------------- ---------------C urtains, draperies, and bedspreads----------------------- -------Tlousefurnishings, other th a n curtains, etc----------------------Textile bags------------------ ------ ---------------------------------------
747
207.7
5 3 .2
11.9
15.1
205.0
14.4
17.4
2 .9
13. 1
10.4
773
213.2
53.7
12 .2
15.3
216.6
1 5 .2
16.9
3 .0
13.3
10.2
769
212.7
5 3 .4
12.4
15.4
213.4
15.3
18.6
3 .0
13.0
9 .6
833
227.7
59.3
13.1
18.3
229.2
16.0
18.4
3 .7
16.6
14 .2
14.0
14.3
14. 5
14. 4
Leather and leather products------- --------------------------------------L eath er------------------- ------ ------ ------------------------------------Boot and shoe cut stock and findings---------------------------- Boots and shoes----------------------------------------------------------L eather gloves and m itten s-------------------------- -------------T runks and suitcases----------------------------------------------------
307
40.0
16.2
174.0
12.7
12.3
308
40.3
16.3
174.9
12.8
11.8
307
40.4
16.2
173.8
12.9
11.6
330
45.1
17.1
184.2
14.4
13.6
F o o d ____________________________________________________
Slaughtering and m eat packing.----- ---------------- ------------B u tte r---------------- ----------- --------------------------------------Condensed and evaporated m ilk ---------- ------------------------Ice cream ------------ ---------- ---------- --------- ------ ----------------F lo u r-------------------- --------- -------------------------------------------Feeds, prepared------------ --------------------------- -----------------Cereal preparations------ ----------------------------------------------B aking_____ ______ - .................. — ................ ............... ............
Sugar refining, cane— ............. - ---------- --------------------------Sugar, beet----------------------------------------- -----------------------Confectionery______________________________________ --
1,052
158.7
25.1
15.8
18.0
29.0
19.9
975
157.7
25.2
16.1
17.5
28.0
19.8
944
154.6
23.8
14.8
15.6
27.6
19.8
1,019
161. 2
23.9
14.6
17.9
28.2
9 .4
258.4
15.1
4 .0
5 4 .2
32.3
53.3
177.9
9 .3
257.4
14.6
4 .2
56.4
3 0 .6
5 0 .8
110.5
9 .3
253.9
14.5
4 .4
5 6 .6
2 7 .9
50.1
9 9 .9
Nondurable goods
V~
r
►
C anning and preserving.................................................................
See fo o tn o te s a t e n d o f ta b le .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
21.7
10.0
253.0
14.9
5 .0
51.7
3 0 .2
48 .4
161.8
884
Monthly Labor Review—October 1944
T a ble 2. —Estimated Number of Wage Earners in Manufacturing Industries ‘— Con.
E stim ated num ber of wage earners
(in thousands)
In d u stry 2
In ly
1944
June
1944
M ay
1944
July
1943
Nondurable goods—C ontinued
Tobacco m anufactures______ _____ _______ _____
C igarettes_________ _______ _______________
Cigars_____________________________
Tobacco (chewing and smoking) and s n u ff.. .
83
35.0
34.7
7.8
84
34.3
36.2
7.7
82
33.3
36.2
7.7
89
33.2
41.8
8.1
P aper and allied p roducts_____________________
P ap er and p u lp ___________________________
P ap er goods, o th er________________________
Envelopes________________________________
P aper bags________________________________
P ap er boxes_________________ _____________
303
146.2
45.9
9.5
13.3
79.3
303
146.0
46.1
9.6
13.2
79.0
303
144.9
46.8
9.7
13.5
79.2
316
149.9
47.8
10.4
12.3
84.8
P rinting, publishing, and allied industries_______
N ewspapers and periodicals________________
Printing, book and jo b _____________________
Lithographing____________________________
B ookbinding______________________________
333
109.7
134.6
25.1
28.2
331
110.4
131.6
25.0
28.2
329
110.0
130.9
24.6
28.3
339
112.0
134. 7
25.8
30.2
Chemicals and allied products__________________
Paints, varnishes, and colors_______________
D rugs, medicines, and insecticides__________
Perfum es and cosmetics 4___________________
Soap_________________________ ____________
R ayon and allied pro d u cts_________________
Chemicals, not elsewhere classified___ _______
Compressed and liquefied gases_____________
Cottonseed oil_______________ _____________
Fertilizers________________________________’
584
30.0
50.0
11.9
13.5
52.7
118.9
6.1
11.4
18.6
585
29.9
50.6
11.5
13.5
52.3
119. 5
6.2
11.8
19.5
593
29.9
51.0
11.8
13.5
51.7
120.0
6.1
13.4
22.6
745
30.0
46.6
11.9
12.8
52.6
117.0
6.4
12.0
17.9
Products of petroleum and coal_________________
Petroleum refining____________ ____________
Coke and b y p ro d u cts______________________
Paving m aterials__________________________
Roofing m aterials__________________________
134
90.5
23.4
1.7
9.7
132
88.7
23.0
1.7
9.6
130
87.4
22.9
1.5
9.6
126 ’
82.0
24.6
1.6
9.7
R ubb er products______________________________
R ubber tires and inner tu b es_______________
R u b b er boots and shoes____________________
R u b b er goods, other______________________ I
190
89.6
19.6
71.9
191
89.2
20.0
72.3
193
90.1
20.7
72.9
192
87.5
22.1
73.1
M iscellaneous industries_______________________
Photographic ap p aratu s____________________
Pianos, organs, and p a rts___________________
Games, toys, and dolls_____________________
B u tto n s___________________________________
Fire extinguishers__________________________
375
29.6
6.1
16.4
9.1
5.6
379
29.2
6.8
15.9
9.5
5.8
380
29.2
7.9
15.4
9.7
6.1
407
30.6
10.3
15.9
10.8
7.7
Estim ates for the major in d u stry groups have been adjusted to final d ata for 1941 and prelim inary data
for the second q u arter of 1942 made available b y the B ureau of E m ploym ent Security of the Federal Security
Agency. Estim ates for individual industries have been adjusted to levels indicated by the 1939 Census of
M anufactures, b u t not to Federal Security Agency data. For this reason, together w ith the fact th a t this
B ureau has not prepared estim ates for certain industries, and does not publish wage earners in restricted
w ar industries, th e sum of the individual industry estimates will not agree w ith totals shown for the m ajor
in dustry groups.
J
2 U npublished inform ation concerning the following w ar industries m ay be obtained b y authorized U. S.
G overnm ent agencies upon request: A ircraft engines; aircraft and parts, excluding aircraft engines; am
m unition, small-arms; engines and turbines; explosives and safety fuses; firearms; fireworks; instrum ents
(professional and scientific) and fire-control equipm ent; optical instrum ents and ophthalm ic goods: and
shipbuilding and boatbuilding.
&
3 Comparable d ata for earlier m onths available upon request.
4 Revisions have been made as follows in th e d ata for earlier m onths:
Perfumes and cosmetics.—Jan u ary 1943 through A pril 1944 wage earners to 10.3,10.8,11 4, 11 5 11 4 11 5
11.9, 11.5,11.2, 11.6, 12.2, 12.2, 11.7, 11.9, 11.6, and 11.5.
’ ' ’
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Trend of Employment, Earnings, and Hours
885
T a b l e 3 .— In d e x e s o f W a g e -E a rn e r E m p lo y m e n t a n d o f W a g e - E a r n e r P a y R o ll in
M a n u f a c tu r in g I n d u s t r i e s 1
[1939 average=100]
Wage-earner em ploym ent
i-
Ju ly June M ay
1944 1944 1944
>
W age-earner pay roll
In d u stry 2
All m anufacturing__________________ ___________
D urable goods______________ _________
N ondurable goods_______________________ _ _
July
1943
July
1944
June M ay
1944 1944
July
1943
157.8 158.5 158.9 169.8 310.2 318.2 317.6 315. 6
214.2 216.5 218.2 229.7 427.2 442.8 444.1 439. 7
113.4 112.8 112.2 122.6 195.8 196.3 193.8 194.2
Durable goods
f
•
v
r'
Iron and steel and their p roducts_____ _
B last furnaces, steel "works, and rolling m ills ___
Gray-iron and semisteel castings_____ .
M alleable-iron castin g s.-. __________ .
Steel castings___________ ___________ _______
Cast-iron pipe and f i t tin g s .- .___. .
T in cans and other tin w are____________
W ire draw n from purchased rods____
W ire w o rk ... . . . . . . _____
C utlery and edge tools. _________
Tools (except edge tools, m achine tools, files, and
saw s)__________________________
H ardw are_________
____
Plum b ers’ supplies_____________ ____
Stoves, oil burners, and heating equipm ent, not
elsewhere classified___ ___________
Steam and hot-w ater heating apparatus and
steam fittings_________________________
Stam ped and enam eled ware and galvanizing
F abricated structural and ornam ental metalw ork___________________ . .
M etal doors, sash, frames, molding, and trim
Bolts, n u ts, washers, and riv ets__
Forgings, iron and steel_____________
W rought pipe, welded and heavy riveted .
Screw-machine products and wood screws . . .
Steel barrels, kegs, and d ru m s_________________
212.1
171.0
183.9
227.7
313.3
264. 6
112.8
214.4
169.0
186.1
237. 5
314.9
271. 2
.106. 3
214.4
170.1
188. 5
243.0
313.3
274.0
110.1
196.2
170.8
204.2
261.1
320. 4
294.9
142.4
415.5
315.4
339.2
434.2
600.6
502.9
212.7
420.7
313.3
367.4
466.0
614.7
529.8
209.5
435.2
317.9
369.0
473.3
605.6
528.3
216.0
356. 4
299. 7
359. 4
456. 3
592. 0
541.5
249. 1
Electrical m achinery_________ _________
Electrical e q u ip m en t_________________ .
Radios and phonographs 3________ . . .
C om m unication equipm ent 3. _ . ______ _ .
277.8
248.8
290.3
349.1
281.4
252.3
295.4
350.2
282.1
251.8
296.2
358.0
275.5
256.5
265.8
345.5
494. 2
450. 6
541.8
557.2
507.5
464.6
559.6
559.2
501. 0
456.4
551.5
562.7
462. 8
437.9
463.1
503. 0
M achinery, except electrical_________ .
M achinery and m achine-shop p roducts____
T ra c to rs... _________________ .
A gricultural m achinery, excluding tra c to rs .. . _
M achine tools_____ _____ . .
M achine-tool accessories_______ ____ .
Textile m achinery . . . . . .
P um ps and pum ping eq u ip m en t_____
T ypew riters_____________________ . .
Cash registers, adding and calculating machines
W ashing machines, wringers, and driers, dom estic____________________ . . . .
Sewing m achines, domestic and industrial.
Refrigerators and refrigeration eq u ip m en t.
219.8
228.4
191.7
163.2
210.2
269.5
122.3
326.0
69.4
163. 6
222.8
231.3
191.9
165.2
214.4
273.0
124.1
333.8
68.7
169.5
223.0
232.1
191.0
162.7
216.0
276.4
125.8
332.2
69.0
167.9
236.8
244.4
167.1
139.1
301.8
350.8
129.6
316.0
73.4
177.4
403.5
408.6
293.4
335.0
370.6
457.9
225.7
676.1
140.2
315.2
422.3
429.1
304.0
335.6
383.8
474.6
230.2
711.7
141.0
334.3
417.1
426.1
298.0
332.6
381.3
470.9
227.3
698.7
140.2
329.7
420.1
425.5
254.0
255. 7
491.2
557.3
223. 2
629. 9
142. 8
337.8
167.1
123.8
124.2
134.8
244. A
93.6
129.7
149.5
116. C
148.0
167.0
124.0
125.7
136.5
251.4
91.2
118.2
152.3
113.8
148.3
172.9
133. 3
138.5
145.0
279.5
94.4
110.7
162.6
108.1
139.1
306.2
224.9
243.6
273.5
434.4
177.0
210.2
239.2
233.2
304.2
311.0
224.5
248.9
280.5
452.5
175.3
206.6
250.8
227.7
310.8
308.6
221.1
250.4
276.0
461.4
176.0
195.5
252.7
225.0
308.5
299. 6
223.7
246. 2
257. 2
478.2
161.8
172. 6
247.6
203. 0
271.1
177.2 180.7 181.7 180.1 327.8 338.9 339.3 319. 3
128.4 128.1 128.4 128.1 257. 6 263.3 260.4 241. 5
92.3 92.9 93.5 94.1 164.2 170.6 168.6 159.4
137. 7 136.6 133.8 118. 8 252. 0 258. 8 252. 5 198 4
183.3 185.8 187. 2 195.3 330.9 346.1 353.7 360. 9
160.2 159.9 159.3 164.2 319.8 322.7 313.0 297.0
181.9 184.0 180.6 188.4 325.4 329.9 322.0 298.9
119.0 119.0 119.1 136.7 243.2 259.8 258.5 2S3. 7
148.5 150.5 149.5 154.9 248.8 269.7 258.6 260.2
T ransportatio n equipm ent, except autom obiles_____ 1280. 2
Locom otives__ __ . . . . .
550.7
Cars, electric and steam railro ad . . . . . .
237.4
M otorcycles, bicycles, and p a rts __________
134.5
►
167.4
124.0
125.2
136. 6
248.0
92.4
125.3
151.9
115.3
149.5
1309. 6 1346.2
558.6 562.7
237.6 238.4
136.0 133.2
1452.6
523.0
252.8
140.1
2612.4
1183.3
473.9
249.4
2691.0
1265.9
480.3
249.7
2775.1 2790.6
1272. 9 1091.3
483.0 460.1
245.3 237.6
A utom obiles_____________________ . . .
169.4 171.2 173.1 172.6 290.3 319.0 318.1 314.3
Nonferrous m etals and th eir p ro d u cts...........
.
Sm elting and refining, p rim ary , of nonferrous
m etals . . .............. .
Alloying and rolling and draw ing of nonferrous
m etals except alum inum .. ____ _ .
Clocks and watches . . .
. . . . . .
Jew elry (precious m etals) and jew elers’ findings..
Silverware and p lated w are________________ .
Lighting eq u ip m en t________ ________________
A lum inum m anufactures_______________ . . .
Sheet-m etal work, not elsewhere classified____
165.2 168.1 169.1 180.6 304.7 315.9 314.8 321.1
See fo o tn o te s a t e n d o f ta b le .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
174.7 177.5 184.6 210.6 324.8 334.2 342.1 372.6
174.8
126.1
94.9
87.3
129.4
308.9
172.1
181.1
125.1
97.4
86.9
127.9
316.7
172.6
184.2
122.4
98.3
86.0
123.4
323.2
169.2
192.0
122.3
109.2
97.1
119.1
334.6
161.8
318.9
257.0
149.4
157.4
218.9
550.5
322.5
340.3
260.9
160.0
159.0
231.3
566.5
319.6
339.9
253.2
160.6
155.8
222.4
570.1
314.3
351.7
226. 2
151.2
164.8
202.5
583.6
267.3
886
Monthly Labor Review—October 1944
T a ble 3. — Indexes of Wage-Earner Employment and of Wage-Earner P ay Roll in
Manufacturing Industries— Continued
W age-earner em ploym ent
W age-earner pay roll
In d u stry 2
Ju ly June M ay
1944 1944 1944
July
1943
July
1944
June M ay
1944 1944
July
1943
Durable goods—C ontinued
L um ber and tim ber basic p roducts.
Sawmills and logging c a m p s ___
Planing and plywood m ills.. . . .
...
.
102.4 101.6 101.2 115.1 185.1 193.5 186.9 193.3
82.5 81.7 80.7 91.8 151.5 159.3 152.1 156.2
98.2 97.7 99.4 113.8 165.5 170.1 169.9 179.3
F u rn itu re and finished lum ber products. .
M attresses and bedsprings___ ____ ______
F u rn itu re ___ _ ______ __
W ooden boxes, other th a n cigar__
Caskets and other m orticians’ goods___________
W ood preserving____ _ _______________
W ood, tu rn ed and shaped___________________
103.5 103.4 102.5 109.8
91.9 90.7 89.7 99.9
98.3 99.0 97.9 105.9
111.2 111.2 111.4 116.1
100.8 102.4 99.9 94.6
90.3 89.0 87.3 94.7
100.0 95.8 96.4 103.0
183.8
155.0
173.9
214.4
163.6
194.7
176.0
187. 5
156. 5
177.9
220.4
173. 7
191.7
172.8
184.4
154.6
175.7
214.8
168.8
178.5
171.6
178.6
155. 5
171.8
199.1
148.3
173.0
165.6
Stone, clay, and glass p ro d u cts________________ . .
Glass and glassware. __________________ ____
Glass products made from purchased glass_____
C em ent. _. . . .
Brick, tile, and terra cotta. __________________
P o ttery and related p ro d u cts_________________
G ypsum ________
W allboard, plaster (except gypsum ), and mineral
wool____________ ________ . . . _ __
L im e__________
M arble, granite, slate, and other products______
A brasives___ _ _________ . . . . . . .
Asbestos p ro d u cts___________________________
113.4
130.7
103.4
73.2
75.5
125.0
82.7
122.1
126.6
114.0
101.3
90.0
127.6
94.2
184.1
197.1
165.5
112.8
121.5
187.0
140.9
189.8
209.7
168.1
110.6
122.8
196.3
145.4
187.7
208.4
170.1
108.7
118.9
192.5
144.9
184.4
181.9
165.0
144.9
134. 5
179.3
160.9
119.1 116.1 113.0 136.0
86.4 86.2 88.4 100.3
70.7 68.7 67.2 68.1
275.3 280.5 278.3 . 316.2
129.4 129.3 131.0 140.2
217.6
167.3
105.8
452.6
253.2
211.5
170.4
104.5
459.3
257.1
195.5
174.2
101.5
468.2
255.8
199.7
173.2
91.1
481.3
253.7
Textile-mill products and other fiber m anufactures. 95.2 96.6 97.2 106.5 168.5 172.5 171.2
C otton m anufactures, except smallw ares____
109.6 110.0 110.6 122.3 206.6 204.7 202.4
C otton sm allw ares___
. . . . ________ .
98.1 100.3 101.1 124.5 174.7 180.7 180.2
Silk and rayon goods _ ______ . . . . _
73.9 74.7 74.8 79.3 130.7 135.8 136.1
W oolen and worsted m anufactures, except dye
ing and finishing_______________________
97.8 101.4 102.0 110.5 184.3 194.8 192.9
H osiery____ _____
65.5 66.8 67.0 72.7 101.5 105.7 105. 5
K n itted cloth______ . . . ____ . . _
95.2 97.0 99.2 107.1 160. 9 165.6 168.5
K n itte d outerw ear and k n itted gloves________
102.4 105.2 106. 8 116.9 181.4 189.1 188.7
K n itted underw ear________ ________ .
91.4 93.7 93.6 108.2 159.4 168.9 167.4
D yeing and finishing textiles, including woolen
and w orsted_____ ________ _
89.9 90.9 93.3 99.8 147.0 150.7 152. 2
C arpets and rugs, wool_____. _ __ _______
77.9 79.3 79.2 87.4 132.1 135. 5 132.3
H ats, fur-felt_________________
_ ___________ 63.4 64.7 65.3 67.6 109.3 120.7 120.5
Ju te goods, except felts______ . . . . ______ _
89.3 92.3 92.1 103.7 167.7 177.5 173.9
Cordage and tw in e_______ _ _____________
126.1 127.0 130.1 141.9 231.2 232.6 236.8
173.0
207.0
206.8
130.8
152.6
139.2
111.8
185.4
233.6
A pparel and other finished textile p ro d u c ts.._
94.6 97.9 97.4 105.6 156.6
M en ’s clothing, no t elsewhere classified . . . . . . 95.0 97.5 97.3 104.1 154. 3
Shirts, collars, and n ightw ear______ _. .
75.5 76.3 75.8 84.2 133.5
U nderw ear and neckw ear, m en’s ____ __________ 73.7 75.7 76.9 81.0 142.3
W ork s h i r t s . __ . . _.
112.1 113.9 114.4 136.4 183.2
W om en’s clothing, n o t elsewhere classified___
75.5 79.7 78.6 84.4 125. 6
Corsets and allied garm ents___________
76.5 80.9 81.6 85.0 126.4
M illin e ry ...
...
71.6 69.7 76.6 75.7 103.2
H andkerchiefs___ _______ ______ _____ ._
59.7 61.8 62.2 76.5 103.9
C urtains, draperies, and b e d s p r e a d s ..___ ___ 77.2 78.7 76.6 98.3 147.4
H ousefum ishings, other th a n curtains, e tc ... .
98.3 96.1 90.7 133.2 178.3
Textile bags___________________________
116.7 119.3 121.2 119.8 190.1
166.2
166.2
134.5
148.4
204.4
134.8
141.0
90.7
109.6
157.0
174.9
192.1
163.0
166.4
134.4
149.3
206.8
128.1
139.6
101.9
114.8
144.4
159.0
192.9
155.8
151.3
131.0
136. 0
216.8
125.3
130. 3
98.3
123.0
150.5
225.3
179.0
L eather and leather pro d u cts_______ ._ . . . . . .
88.5 88.8 88.4 95.0
L e a th e r.. _________________
__
84.6 85.3 85.5 95.5
Boot and shoe cu t stock and findings__________
85.7 86.4 86.0 90.8
Boots and sh o es.. _________ _
. ________ _ 79.8 80.2 79.7 84.5
Leather gloves and m itten s. _ ________ ______ 127.0 128.6 129.4 144. 5
T ru n k s and suitcases____ _. _. ________ ____ 147.1 141.6 139.8 163.6
155.9
148.2
144.3
142.8
215.2
232.4
153.5
140. 8
142.3
139.8
218.8
233.2
145.9
141.7
132.5
131.4
222.0
238.3
113.7
132.8
103.2
71.7
75.2
125.5
82.9
112.9
131.2
103.7
71.2
74.5
124. 6
85.6
Nondurable goods
See footnotes at end of table.
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Federal Reserve Bank of St. Louis
153.1
146.5
139.7
139.8
215.9
234.5
198.2
102.2
164.4
188.7
173.6
Trend of Employment, Earnings, and Hours
T a b l e 3 .—
887
Indexes of Wage-Earner Employment and of Wage-Earner P ay Roll in
Manufacturing Industries— C o n t i n u e d
>
W age-earner em ploym ent
In d u s try 2
Ju ly June M ay
1944 1944 1944
Wage-earner pay roll
July
1943
July June M ay
1944 1944 1944
119.3
133.7
133.2
150.1
113.8
113.9
140.7
133. 5
109.7
105. 5
48.0
103.9
142.2
134. 2
120.3
196.5
219.6
216.2
271.0
163.5
195.3
224.3
214.8
168.0
167.9
55.7
178.2
212.2
225.5
243.6
July
1943
Nondurable goods—Continued
«T
185.6
217.5
216.8
280.1
153.6
187.5
221.0
219.4
166.8
166.3
62.7
185.8
192.8
210.0
156.7
179.9
216.9
201.9
245.9
137.3
179.3
221.2
216. 5
163.8
163.7
60. 5
183.3
168.9
201.9
143.2
175.9
203.9
186.9
231.8
151. 6
170. 3
218.3
224. 0
153. 4
157. 5
67.8
149.1
178.4
189.9
200. 7
Tobacco m anufactures— - - - --------------------- 88.6 89.5 88.3 95.1 157.1 157.5
C ig a r e tte s .____ .
----------------------------------- 127.7 Î25. 2 121.4 121.2 196.9 189.2
Cigars____ _-.
--------- -------------------- 68.2 71.2 71.1 82.2 132.3 141.0
Tobacco (chewing and smoking) and snuff----- - 84.6 83.8 84.5 87.8 132.7 124.6
152.9
182.0
137.9
122.0
153. 5
182. 3
137. 7
126.9
187.0
180.5
194.1
171.0
200.0
178.7
184.7
177.2
194.6
169.1
198. 5
177.2
176.3
168.8
180. 6
167. 2
175. 3
174. 2
F o o d .- - ____—
- — --------------Slaughtering and m eat packing------- .*.------------B u tte r------------- ------------- ------- -- ------------Condensed and evaporated m ilk --------------- -----Ice cream ----- -------- -----------------------------F lour_______________________________________
Feeds, prep ared _________ _____
_________
Cereal p reparations---------------------------------------B a k in g -.. - ------- -- ---------------------------------Sugar refining, cane ________ -- - - --------- Sugar, b e e t - ------ -------- -- -------------------C onfectionery..- ------- -------------------------------Beverages, nonalcoholic ------ ------ ----------------M alt liquors----- --------- ----------------------------C anning and preserving---------------------------------
P aper and allied products_______________________
Paper and p u lp __________ ______ __________
P aper goods, other................................ - ----------Envelopes „ . --------- --------------------------------Paper bags--------- ----------------------------- ------P aper boxes __________________ ________ --»
y
123.1
131.7
140.0
162.7
114.4
116.9
129.5
125.8
112.0
107.0
38.7
108.9
151.8
147.8
132.3
114.3
106.4
122.0
109.6
120.0
114.6
114.1
130.9
140.6
165.6
111.4
113.0
128.4
125.0
111.6
103.3
40.1
113.5
143.7
140.8
82.2
114.2
106.2
122.5
110.6
118.9
114.2
110.5
128.3
132.7
152. 2
99.6
111.5
128.5
124.8
110.1
102.7
42.1
113.7
131.2
138.9
74.3
114.2
105.4
124.3
111.3
122.1
114. 5
118.9
109.1
127.1
119.9
1 11. 3
122.7
185.3
179.1
194.1
167.2
193.9
175.8
Printing, publishing, and allied industries------ . . 101.6 100.8 100.3 103.4 138.0 137.4 135.0 127.0
N ew spapers and periodicals------------- -------------92.5 93.1 92.7 94.4 117.1 117.1 116.1 112.4
Printin g , book and jo b . — ------ ------ - ------- 106.5 104.1 103.6 106.6 151.8 149.3 144. 8 132. 7
96.5 96.1 94.5 99.2 132.4 137.3 132.9 122. 4
L ithographing---------------------------------------------B ookbinding__________ ______ ______ _________ 109.2 109.6 109.8 117.2 178.7 178.4 180.9 175. 5
Chem icals and allied products---------- -- ------ ---------P aints, varnishes, and colors------------- ---------- -Drugs, medicines, and insecticides------- -----------Perfum es and cosmetics 4 ---------- ----------- —
Soap______________________ ____ _____ ______
R avon and allied products------- --------------------Chem icals, no t elsewhere classified------------------Compressed and liquefied g a se s ---------- ---------Cottonseed oil_______________ ________ _____
Fertilizers ___________________ _____________
202.7
106.8
182.4
115.1
99.5
109.2
170.9
154. C
74.8
99.1
202.9
106.4
184.6
111. 1
99.2
108.3
171.8
157. 6
77.9
103.7
205. 6
106.3
186.1
113. 5
99.4
107.1
172.5
154. 5
88.3
120.4
258.6
106.8
170.1
114.8
94.3
108.9
168.2
161.7
78.7
95.3
358.5
167.1
263.4
160.9
162.9
174.0
299.8
270.4
145.6
224.7
358.4
169.1
266.7
156.0
168.3
174.1
298.7
275.8
148.8
227.7
360.2
167. 2
270.7
158.8
163.6
173.5
296. 5
271.4
170.3
266.8
435.7
157. 5
231.6
147.8
139.1
168.6
277.0
270.1
133.0
188.9
P roducts of petroleum and coal_____
___________
Petroleum r e fin in g _____ _____
- ------Coke and b yproducts--------------- . . ----------- . .
Paving m aterials---------------------------- ------------Roofing m aterials_________ _ ______
_____
126.7
124.3
107.8
70. C
120.6
124.4
121.8
106.1
68.5
118.7
122.8
120.0
105.6
63.6
119.5
119.1
112.6
113.3
66.0
120.5
223.0
215.6
191.7
132.4
218.6
215.7
207.5
187.5
130.1
216.4
212.6
205.2
183.0
120.4
212.2
190.3
179. 9
175.4
101.3
202.2
R u b b er p ro d u c ts.— - - . ----------------------------------R ubb er tires and inner tu b e s--------------------------R ubb er boots and shoes-------------- -- ----------R ubb er goods, other------------------------- ------ - -
157.4
165.6
132.1
138.9
157.8
164.8
134.6
139.8
159.7
166.5
139.8
140.8
158.9
161. 7
149.3
141.3
277.2
280.9
237.0
245.2
279.0
278.5
245.9
251.2
280.8
283.0
248.6
248.3
256.1
253. 3
246. 5
228. i
M iscellaneous in d u s tr ie s ________________________ 153. 5 154.8
Photographic ap p aratu s---------- ----------------------- 171.7 168.8
Pianos, organs, and p a rts-------------------------------- 79.6 89.1
88. ( 85.1
Games, toys, and dolls----------------------------------B u tto n s___ ____________ ___________
_____ 83. ; 87. (
Fire extinguishers-------------------------------- --------- 561.3 580.3
155.1
169.3
103.6
82.6
88.8
616.2
166.4
177.3
135.0
85.1
98. £
777.1
288.9
271.9
143.8
169.8
158.0
1126. 2
297.3
273.0
170.9
167.2
170.3
1167.0
295.8 291.4
273.5 264.4
196.8 257. 2
159. 5 132. 5
174.3 169.1
1292. 9 1425.0
i Indexes for the major in d u stry groups have been adjusted to final d ata for 1941 and prelim inary data
for the second Quarter of 1942 m ade available by the B ureau of E m ploym ent Security of the I ederai Security
Agency. Indexes for individual industries have been adjusted todevels indicated by the 1939 Census oi
M anufactures, b u t not to Federal Security Agency data.
2 U npublished information concerning the following w ar industries m ay be obtained by authorized u . b.
G overnm ent agencies upon request. Aircraft engines; aircraft and parts, excluding aircraft engines, amm unition, small-arms; engines and turbines; explosives and safety fuses; firearms; fireworks; instrum ents
(professional and scientific) and fire-control equipm ent; optical instrum ents and ophthalm ic goods; a nd
shipbuilding and boatbuilding.
2 Comparable indexes for earlier m onths available upon request.
4 Revisions have been m ade as follows in the indexes published for earlier m onths
Perfumes and cosmetics—Jan u ary 1943 through April 1944, em ploym ent indexes to 98.9,103.9,110.0, i l l . 3,
110.2, 110.8, 114.8, 111.2, 107.8, 111.6, 117.8, 118.1 112.6, 114.7,112.2, and 111.4; pay-roll indexes to mu.»,
134.0, 141.3, 146.0, 146.6, 148.8, 147.8, 148.4, 150.6, 154.7 164.7, 158.6, 150.3, 150.5, 156.9, and 157.8.
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Federal Reserve Bank of St. Louis
888
Monthly Labor Review—October 1944
T a ble 4. —Estimated Number of Wage Earners in Selected Nonmanufacturing Industries
E stim ated num ber of wage earners (in thousands)
In d u stry
Ju ly 1944
June 1944
64.5
351
77.3
27.4
25.2
15.5
5.7
3.5
203
230
352
253
82.6
1, 443
357
80.3
28.1
26.7
16.1
5.7
3.7
203
231
353
254
85.7
1,447
Coal mining:
A n th racite_____ _____
B itu m in o u s_____
M etal m in in g____________
Iro n ____________
Copper
_____
Lead and zinc..
____
Gold and silver . . _ . . .
M iscellaneous.. _____
Electric light and power L
Street railw ays and busses 1 .
H otels (year-round) 4 .
Pow er laundries. ___
Cleaning and dyeing______
Class I steam ra ilro ad s2
1 D ata include salaried personnel.
2 Source: In te rsta te Commerce Commission.
4
a b l e
5.
M ay 1944
July 1943
68.5
356
82.6
16.8
5.8
3.8
202
231
352
249
84.2
1,425
71 4
95 4
,33.8
18.3
« 7
211
228
268
1,391
D a ta include salaried personnel.
Indexes of Employment and P ay Rolls in Selected Nonmanufacturing
Industries
[1939 average =100]
E m ploym ent indexes
Pay-roll indexes
In d u stry
Coal mining:
Anthractite_______________
Bituminous_______________
Metal mining_________________
Iron_____________________
Copper___________________
Lead and zinc______ _______
Gold and silver_____________
Miscellaneous_________ !____
Quarrying and nonmetallic mining.
Crude-petroleum production 1____
Public utilities:
Telephone and telegraph_____
Electric light and power______
Street railways and busses____
Wholesale trade________________
Retail trade__ _____ __________
Food2__________________
General merchandise '3________
Apparel3__________________
Furniture and housefurnishings.
Automotive________________
Lumber and building materials..
Hotels (year-round)4____________
Power laundries________________
Cleaning and dyeing......... ............ .
Class I steam railroads 5__________
Water transportation 7___________
Ju ly
1944
June
1944
M ay
1944
July
1943
Ju ly
1944
June
1944
M ay
1944
Ju ly
1943
77.9
94.8
87.6
136. 2
105. 6
99.8
23.0
88.3
86.4
84.1
83.0
96.2
91.1
139.4
112.1
103.7
23.1
93.9
85.8
83.6
82.7
96.0
93.6
142.4
115.1
108.4
23.6
95.7
84.5
82.5
86.2
102.2
108.1
167.2
125.6
117.7
27.2
169.8
98.8
82.3
130.6
195.5
135.1
211.9
168.4
177.0
28.2
144.7
100.7
136.5
151.8
219.0
145.7
226.2
183.1
191.5
30.7
159.3
162.2
131.1
155.8
215.5
148.5
229.4
187.7
196.5
30.4
158.6
157.4
127.9
133.1
190.0
164.3
261.7
202.3
197.4
33.0
262.2
168.9
120.3
(2)
83. 2
118.8
95.1
95. 5
106.4
104.5
101.8
63.4
66.6
92.1
109.1
112.1
122.3
146.0
249.1
(2)
83.1
119.1
95.0
96.7
106.7
107.7
108.8
63.6
66.0
91.1
109.4
112.4
126.9
146.5
238.9
(2)
82.8
119.1
94.4
96.9
107.3
108.5
110.4
63.2
64.8
90.2
109.0
110.1
124.8
144.2
233.5
(2)
86.3
117.7
96.0
96.6
105. 4
108.6
99.4
66.7
63.6
92.9
107.6
118.7
125. 2
140.8
152.5
(2)
114.6
170.7
135.9
128.3
142.4
136.7
139.4
88.4
97.5
131. 8
156.9
165.1
187.3
(6)
585.6
(2)
114.8
170.8
135.4
127.3
139.2
136.4
145.8
88.4
96.7
127.6
157.2
163.6
195.7
(6)
571.7
(2)
112.9
168. 5
133.4
124.2
135. 2
132.4
144.5
86.3
94.4
127.9
155.3
161.3
194.2
(6)
552.6
(2)
110.5
156.1
127.1
119.9
134.1
130.7
122.8
85.8
84.8
123.2
139.5
152.4
170.6
(8)
345. g
1 Does n o t include well drilling or rig building.
2 D a ta are no t available because of th e merger of W estern U nion and P ostal Telegranh
3 Revisions have been m ade as follows in indexes previously published:
Retail trade: Food group.—-April pay-roll index to 134.4; General merchandise group.—M arch pay-roll
index to 131.2; A pparel group.—M arch em ploym ent index to 106.7, pay-roll index to 137 0 April
em ploym ent index to 111.4, pay-roll index to 144.8.
4 Cash paym ents only; additional value of board, room, and tips not included.
6 Source: In te rsta te Commerce Commission.
8 N o t available. .
7 Based on estim ates prepared by th e U . S. M aritim e Commission covering em ploym ent on steam and
m otor m erchant vessels of 1,000 gross tons or over in deep-sea trade only.
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Federal Reserve Bank of St. Louis
889
Trend of Employment, Earnings, and Hours
A V ERA G E EA R N IN G S AND HOURS
Average weekly earnings and hours and average hourly earnings for
May, June, and July 1944, where available, are given in table 6
for both manufacturing and nonmanufacturing industries. The
average weekly earnings for individual industries are computed by
dividing the weekly pay rolls in the reporting establishments by the
total number of full- and part-time employees reported. As not all
reporting establishments supply information on man-hours, the
average hours worked per week and average hourly earnings shown
in that table are necessarily based on data furnished by a slightly
smaller number of reporting firms. Because of variation in the size
and composition of the reporting sample, the average hours per
week, average hourly earnings, and average weekly earnings shown
may not be strictly comparable from month to month. The sample,
however, is believed to be sufficiently adequate in virtually all in
stances to indicate the general movement of earnings and hours over
the period shown. The average weekly hours and hourly earnings
for the manufacturing groups are weighted arithmetic means of the
averages for the individual industries, estimated employment being
used as weights for weekly hours and estimated aggregate hours
as weights for hourly earnings. The average weekly earnings for
these groups are computed by multiplying the average weekly hours
by the corresponding average hourly earnings.
T a b l e 6.- —Hours
and Earnings in Manufacturing and Nonmanufacturing Industries
M AN U FACTURIN G
Average weekly
e arn in g s1
Average weekly
hours 1
Average hourly
earnings i
In d u stry
Ju ly
1944
June M ay
1944 1944
All m anufacturing_________________________ $45. 52 $46.27 $46.02
D urable goods----------------- -------------------- 51. 20 52.17 51.89
37.07 37.35 37.03
N ondurable goods. ----------------------------
Ju ly June M ay
1944 1944 1944
44.7
45.8
43.0
45.5
46.9
43.4
Ju ly
1944
June M ay
1944 1944
Cents Cents Cents
45.3 101.9 101. 8 101.7
46.6 111.8 111.3 111.2
43.2 86.2 86.2 85.8
Durable goods
Iron a n d steel and their p roducts----------------B last furnaces, steel works, a n d rolling
m ills----------------- ----------------------------G ray-iron and semisteel castings------------M alleable-iron castings ------------------ -Steel castings---------- ----------------------------Oast-iron pipe a nd fittings______________
T in cans and other tin w are_____________
W ire w ork_________________ __________
C utlery and edge tools_________________
Tools (except edge tools, m achine tools,
files, an d saw s)--------- -------------------H ardw are------- ------- --------------------------Plu m b ers’ supplies ____________ ____
Stoves, oil burners, a n d heating eq u ip
m ent, no t elsewhere classified_________
Steam an d hot-w ater heating apparatus
and steam fittings______ _____ _____
Stam ped and enam eled w are and gal
vanizing-------------- ---------------------------Fabricated stru ctu ral an d ornam ental
m etalw ork_________ _______ _________
M etal doors, sash, frames, molding, and
trim _______________________ ___ _____
Bolts, n u ts, w ashers, a n d riv ets_________
Forgings, iron a n d steel_____________
Screw-machine products a n d wood screws.
Steel barrels, kegs, and d ru m s---------------Firearm s............. ...............................................
See fo o tn o tes a t end of table.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
50.01 50. 68 50.41
46.0
46.9
46.8 108.8 108. 2 107.7
54.58
50. 77
50.44
49. 54
40.07
38.16
50. 72
43.59
53. 43
51.54
50.24
51.17
40.87
38.99
49.83
44.06
45.9
47.4
48.1
44.1
45.8
43.7
48.1
46.2
46.4
48.0
48.6
45.6
46.5
44.5
47.6
46.3
46.1
48.0
48.0
46.2
46.9
44.4
47.5
46.6
44.83 45.51 45.23
44.64 45.63 44.93
46. 59 47.75 46. 95
46.6
46.5
45.4
47.0
47.5
45.9
47.1 96.3 96.9 96.2
47.3 95.9 96.0 94.9
45.8 102.1 104.0 102.5
45. 71 47.26 47.08
45.8
47.1
46.9
46. 44 48. 00 48.73
45.7
47.5
48.2 101.6 101.0 101.1
46.43 46.96 45.82
44.9
46.1
45.5 103.0 101. 9 100.8
54. 98 55.05 56. 95
48.6
48.6
49.9 112.6 112.6 113.5
49.86
46. 55
56.79
49.01
41.30
59.00
47.3
44.4
46.2
47.6
42.6
45.6
47.5
48.3
47.6
48.8
43.6
47.7
47.7
48.1
47.5
48.5
43.6
47.7
54.32
51.37
51.39
50. 89
40.19
38.88
49.65
43.99
50.10
49.85
58.64
50.23
42.85
60.80
50.53
49.42
58.20
49.61
42.63
59.87
118.9
107.1
104.9
112.4
87.4
87.3
105.5
94.3
117.0
107.0
105.3
111.7
86.3
87.4
104.5
95.0
116.0
107.5
104.7
110.6
87.1
87.8
104.9
94.5
99.8 100.4 100.4
105.6
104.9
123.5
102.9
96.5
129.4
105. 9
103. 2
123.3
102. 9
98.2
127. 5
106.0
102.7
122.7
102.4
97.8
125.6
890
T
a b l e
Monthly Labor Review—October 1944
6.
Hours and Earnings in Manufacturing and Nonmanufacturing Industries—
Continued
MANUFACTURING— Continued
Average weekly
earnings 1
Average weekly
hours 1
Average hourly
earnings 1
In d u stry
Ju ly
1944
June M ay
1944 1944
Ju ly
1944
June M ay
1944 1944
Ju ly
1944
June M ay
1944 1944
Durable poods—Continued
Electrical m achinery______________________ $47. 25 $47. 99 $47. 28
Electrical e q u ip m en t________________ __ 49. 77 50.72 49. 97
R adios and phonographs_______________ 40.80 41.23 40. 75
C om m unication eq u ip m en t______ ______ 44.91 44.92 44.21
45.8
46.0
45.3
45.1
46.7
47.2
45.7
45.4
Cents
46.3 103.3 102.8 102.1
46.8 108.1 107.4 106.8
45.7 89.8 90.2 89. 2
45.0 98.5 98.0 97.3
M achinery, except electrical. . . ________ _
M achinery and m achine-shop p ro d u cts__
Engines and tu rb in es___________________
T racto rs___________________
A gricultural m achinery, excluding tracto rs________ ____ _____ ____ __________
M achine tools. __________________ . . .
M achine-tool accessories . _ ____ ._ .
Textile m achinery___________ ____
T ypew riters___ _________________
Cash registers, adding and calculating
m achines__________ . . . ____
W ashing m achines, wringers, and driers,
dom estic____________ . . . ___
Sewing m achines, domestic and industrial.
Refrigerators and refrigeration equipm ent.
T ransportation equipm ent, except automobiles-----------------------------------------------Locomotives______________________
Cars, electric- and steam -railroad. _____
A ircraft and parts, excluding aircraft
engines________________________ _
A ircraft engines._____________
Shipbuilding and boatbuilding__________
M otorcycles, bicycles, and p arts_________
Autom obiles__________ _
. . .
53.39
51.95
58.84
51.65
55.10
53.81
61.60
53.47
54.37
53.18
60.48
52.67
47.5
46.9
47.3
46.0
49.1
48.7
49.8
47.4
48.7
48.4
49.8
46.7
54.16
56.80
58.48
48.10
48. 64
53.61
57. 77
59.68
48.33
49.38
54.00
57.08
58.59
47.08
48.87
47.6
50.2
49.3
48.6
49.5
48.0
51.0
50.2
49.3
49.8
48.2 113. 111.6 112.1
50.8 113.1 113.1 112.2
49.6 118.9 119.0 118. 2
48.6 99.0 98.1 97.0
49.3 98.3 99.1 99.1
58.34 59. 71 59.45
49.1
49.6
49.5 119.7 121.3 121.0
47*53 47.55 47.28
55.26 59.09 58. 59
47. 56 50.89 49.10
45.4
50.4
44.4
45.8
52.7
47.4
45.0 104.6 103.3 102.9
52.8 110.7 112.8 111.7
45.9 107.1 107.3 106.9
59.30 59.68 59.87
61.05 64.29 64.18
52.63 53.27 53.40
46.8
45.7
45.3
47.3
49.1
46.6
47.4 126.7 126.2 126.4
49.0 133.7 131.0 131.0
46.4 116.2 114.3 115.0
54.48
59. 21
62.90
51.30
47.1
44.9
47.3
47.8
47.1
46.7
47.5
47.6
46.8
46.1
48.1
47.9
54. 59
61.27
62. 84
50.83
54.10
59.73
64.02
50.93
112.3
110.7
124.9
112.4
112.2
110.4
124.4
112.9
111.6
109.9
122.1
112.7
115.7
131.8 131.1 129.6
133.0 132. 2 133.2
107.4 106.7 106.3
57.02 58.39 57.68
44.2
45.9
45.5 129.0 127.3 126.6
48.65 49.37 48.83
45.9
47.1
46.6 105.9 104.9 104.7
49.22 50.05 49.27
45.8
46.9
46.4 107.4 106.8 106.1
52. 62 54.15 53.03
42.91 43.71 43.38
47.0
46.2
48.4
46.7
47.6 111.4 111.8 111.3
46.7 93.0 93.7 93.0
40.97
47.55
44.23
48.92
42. 52
47.63
47.35
48.73
43.3
47.0
43.1
46.0
44.9
47.3
46.0
46.5
44.7 93.2 93.5 93. 5
46.9 101.1 101.6 101.7
45.8 102.7 103.0 103. 5
46.1 106.7 106.2 105.7
L um ber a n d tim ber basic p ro d u cts. ______
Sawmills and logging c am p s.. _________
Planing and ply wood m ills_____________
33.73 35. 56 34. 54
32.74 34. 72 33.59
37.09 38.36 37.56
42.3
41.5
45.2
44.5
43.9
46.7
43.3
42.7
45.4
79.7
78.9
82.0
79.9
79.2
82.2
79.8
78.8
82.8
F u rn itu re and finished lum ber products
F u rn itu re ____________
Caskets and other m orticians’ goods
W ood preserving. _ . . . . .
35. 65
36.02
37.78
34.46
36. 36
36.60
39.26
34.46
36.04
36. 72
39.01
32. 71
43.7
43.4
43.8
44.3
44.7
44.4
45.6
44.8
44.4
44.3
45.5
43.5
81.7
83.9
86.2
77.9
81.4
83.4
86.4
76.8
81.2
83.4
85.7
75.2
Stone, clay, and glass products . . . .
Glass and glassware. . . .
Glass products m ade from purchased glass.
C em en t_______ ____
Brick, tile, and terra cotta _
P o ttery and related products______
G y p su m .. _____ . . . . .
L im e__________ .
M arble, granite, slate, and other products..
A brasives______ _ . . . _
Asbestos products______ . . . ___
38.14
37.66
33.48
41.28
33.06
34.58
44.13
38.02
39.21
46. 26
46.851
39. 21
39.42
34.09
41.34
33. 54
36.13
45.44
38.83
39.88
46.08
47. 761
38.98
39. 60
34.34
40.98
32.83
35.82
43.84
38. 75
40.47
47. 33
46.92 i
42.4
39.7
43.1
44.2
41.8
39.4
48.3
48.7
44.2
46.8
48.21
43.9
42.2
43.7
44.8
42.8
41.9
48.8
49.9
44.4
46.5
48. 7|
43.7
42.3
44.2
44.7
41.6
41.5
48.3
49.7
44.7
47.6
48.0
89.9
94.9
77.8
93.3
78.8
88.7
91.4
78.4
89.6
98.9
97.3
89.4
93.7
78.0
92.3
78.2
87.5
93.2
78.2
90.0
99.2
98.0
89.3
93.7
77.6
91.6
78.1
86.8
90.8
78.0
90.5
99.4
97.7
Nonferrous m etals and th eir products_______
Smelting and refining, prim ary, of nonferrous m etals_________ . . .
Alloying and rolling and draw ing of
nonferrous m etals, except alu m in u m ___
Clocks and w atches____ _____ _
Jew elry (precious m etals) and jewelers’
. findings______________________
Silverware an d plated w are_____ ________
Lighting eq u ip m en t____________
A lum inum m a n u fa c tu re s........................... .
See fo o tn o te s a t e n d o f ta b le .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
42.76
48.03
47.37
49.28
891
Trend of Employment, Earnings, and Hours
T a b l e 6 . —Hours
and Earnings in Manufacturing and Nonmanufacturing Industries—
Continued
MANUFACTURING— Continued
Average weekly
earnings 1
Average weekly
hours 1
Average hourly
earnings i
In d u stry
Ju ly Ju n e M ay
1944 1944 1944
Ju ly June M ay Ju ly
1944 1944 1944 1944
June M ay
1944 1944
Nondurable goods
Textile-mill products and other fiber m anufactures___________ _______ ________ . .
C otton m anufactures, except sm allw ares..
C otton smallwares_____________________
Silk and rayon goods- _________________
Woolen and w orsted manufactures, except
dyeing and finishing_________________
H osiery___
. . _________ ____ ____ _
K nitted cloth_________________________
K nitted outerw ear and k n itte d gloves___
K nitted underw ear__________________ _
D yeing and finishing textiles, including
woolen and w orsted--------------------------C arpets and rugs, wool__ ____________
H ats, fur-felt------- --------------------- ------Jute goods, except felts______ _ _______
Cordage and tw in e__________ - ______
Cents Cents Cents
71.0 71.2 71.0
63.9 63.7 63.4
77.0 77.3 76.5
69.3 69.1 69.7
$29.63
27.10
33.18
28. 32
$29.87
26. 76
33. 79
29.09
$29.51
26.33
33.40
29.13
41.7
42.4
43.3
40.8
42.0
42.0
43.8
42.1
41.6
41.6
43.7
41.8
35. 35
28.29
31.60
29. 55
25. 68
36.04
28.84
32.01
30.01
26.62
35. 50
28.80
31.82
29. 54
26. 37
42.1
37.4
43.6
40.1
40.0
42.7
38.4
43.9
40.5
40.7
42.2
38.4
43.4
39.9
40.4
33.86
39.13
39.98
33.44
32. 57
34.33
39.44
43. 33
34.26
32. 58
33.85
38. 52
42.70
33.65
32. 36
44.4
43.4
38.9
44.6
45. 3
45.0
43.6
41.7
44.9
45. 2
44.7 76.1 76.2 75.6
42.9 90.4 90.8 90.1
41.5 103.2 104.7 103. 5
44.5 75.0 76.3 75.6
44. 9 71. 7 72. 0 71 9
Apparel and other finished textile products - -.
M en ’s clothing, no t elsewhere classified-.Shirts, collars, and nightw ear___________
U nderw ear and neckwear, m en’s________
W ork shirts
__
. . . _ _______
W om en’s clothing, not elsewhere classified.
Corsets and allied garm ents______ ____
M illinery--------------------------------- ---------H andkerchiefs______ _____________ . . .
C urtains, draperies, and bedspreads . . _
Housefum ishings, other th a n curtains, etc.
Textile bags ___ _ _________________
29. 27
30. 65
24. 42
25. 98
18.01
35.31
28.80
35.10
22. 75
25.64
31. 80
28. 29
29.95
32.16
24.35
26. 37
19.78
35.88
30.43
31.66
23.18
26. 78
31.82
27.91
29. 45
32.28
24.42
26.14
19.93
34. 39
29. 84
32. 37
24. 05
25. 32
30.62
27.71
37.3
38.0
37.3
36.7
32.8
36.1
39.8
32.4
36.6
37.5
41.5
42.0
38.2
39.1
37.5
37.7
36.6
37.0
41.8
29.1
37.6
38.8
42.0
41.3
38.1
39.3
37.5
37.5
37.2
36.6
41.3
30.7
38.6
38.4
41.3
41.2
78.5
80.9
65.0
70.9
53.4
95.9
72.6
89.8
62.2
68.3
76.6
67.8
78.4
82.0
64.9
70.0
52.8
94.5
73.0
89.1
61.7
68.3
75.9
67.8
77.2
81.7
65.1
69.7
52.7
91.8
72.4
88.4
62.4
65.1
74.3
67.5
L eather and leather p roducts______________
L eather---------------- ------------------------ .
Boot and shoe cut stock and findings____
Boots and shoes. - .
-------------------Leather gloves and m itten s_____________
T ru n k s and suitcases__________________
32.90
43. 09
32. 98
31. 12
29. 56
33.45
33. 39
43.15
33.82
31.43
28.94
34.45
33.02
42.63
33.46
30. 95
29. 36
34. 85
41.1
45. 6
42.2
40.2
37.6
41.6
41.7
45.8
43.1
40.8
37.9
42.0
41.3
45.4
43.3
40.3
38.2
42.5
80.0
94.6
79.0
76.4
79.6
79.4
80.2
94.2
79.5
76.7
77.5
81.1
80.0
94.1
78.4
76.6
77.3
81.1
F ood----------- -----------------------------------------Slaughtering and m eat packing_________
B u tte r
___
__ .
. _ ______
Condensed and evaporated m ilk. . . . __
Ice cream _____________________________
F lo u r_________ ______________________
Cereal p rep aratio n s.___________________
Baking------------- --------- --------------------Sugar refining, cane-----------------------------Sugar, b e e t. --------------------------------------Confectionery . . ____ _______ ______
Beverages, nonalcoholic. ______________
M alt liquors__________________________
Canning and preserving ______________
38. 50
45.87
34.18
38.06
39. 27
41.97
44.05
38. 42
37. 55
36.05
30. 08
37.13
53.96
29. 76
39.08
45.73
34.14
38. 68
37.84
41.69
44.78
38. 21
38. 53
39.07
30.16
35. 62
52.83
30.84
39.08
46.41
33.69
36. 94
37. 75
40.48
44.25
38.06
38.18
35.93
29. 70
34.17
51. 26
31.27
45.6
49.9
47.7
50.7
47.9
49.8
46.7
45.8
43.7
35.8
41.6
46.2
47.3
40.3
45.9
49.6
47.9
51.8
46.3
49.6
47.1
45.5
45.0
40.5
41.9
44.7
47.6
40.4
45.8 84.4 85.2 85.4
49.9 92.1 92.4 93.4
47.4 70.8 70.0 70.0
50.3 75.1 74.6 73.4
45.6 79.1 78.1 79.1
48.8 84.6 84.1 83.0
46.5 94.3 95.2 95.2
45.5 83.9 84.1 83.9
45.3 86.0 85.6 84.3
37.6 100.6 96.4 95.6
41.6 72.5 72.1 71.5
43.4 80.7 80.0 78.7
46.6 114.2 111.3 110.7
40.8 74.3 77.0 77.7
Tobacco m anufactures. ___________________
C igarettes------------ ----------------------------Cigars. _____________________ . ------Tobacco (chewing and smoking) and snuff.
30.04
32.84
27. 67
27. 71
29.82
32.19
28. 26
26.22
29. 34
31.97
27.68
25.48
42.4
43.2
41.9
41.0
42.3
42.4
42.6
39.8
42.0
42.3
42.3
39.0
70.9
76.0
66.2
67.6
70.6
75.9
66.6
65.8
69.8
75.5
65.5
65.3
Paper and allied products------------ ------ -------P ap er and pulp
.
. . . _. . . . .
Knvelopes. ________________ _________
Paper bags____________________________
Paper boxes..................... .
38. 72
42.47
36. 66
32.87
33. 76
39.24
42.86
37.20
34.23
34.72
38.77
42. 49
36. 54
33.09
34. 25
45.7
47.8
44.9
43.0
42.9
46.4
48.4
45.7
44.3
43.8
46.0
48.3
45.1
43.7
43.4
84.8
88.7
81.7
75.4
79.3
84.6
88.4
81.4
76.1
79.4
84.2
87.9
81.0
76.0
79.1
Printing, publishing, and allied industries___
Newspapers and periodicals____________
Printing, book and job_________________
L ith o g rap h in g ..
. _ ____ __________
44.18
48.63
42.92
44. 76
44. 37
48.45
43.17
46. 61
43.84
48.29
42.09
45.84
41.2
38.3
42.6
44.2
41.2
38.3
42.6
45.0
40.9 107.4 107.7 107.2
38.1 125.3 124.8 124.8
42.1 99.9 100.3 99.4
44.4 101.4 103.6 103.2
See footnotes at end of table.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
84.0
75.8
72.4
73.1
63.6
84.5
75.2
72.7
73.5
64.6
84.2
75.2
72.5
73.4
64.5
Monthly Labor Review—October 1944
892
T a b l e 6 . —Hours
and Earnings in Manufacturing and Nonmanufacturing Industries—
Continued
MANUFACTURING— Continued
Average weekly
earnings 1
Average weekly
hours 1
Average hourly
earnings 1
In d u s try
Ju ly June M ay
1944 1944 1944
July
1944
June M ay
1944 1944
July
1944
June M ay
1944 1944
Nondurable goods—C ontinued
Chemicals and allied p ro d u cts______________
Paints, varnishes, and colors____________
D rugs, medicines, and insecticides_______
Soap__________ ___ _______ _
. . . ___
R ayon and allied products______________
Chemicals, not elsewhere classified______
Explosives and safety fuses_________ .
A m m unition, sm all-arm s_______________
Cottonseed oil______ _______ . .
F e rtiliz e rs ___________________________
$44. 37 $44. 27 $43. 91
45. 66 46. 57 45. 96
34. 43 34.44 34. 76
46. 65 48.33 46.90
38. 78 39.12 39.45
52.75 52.28 51.42
48.13 47. 72 47.66
45. 55 45. 64 44. 98
26.47 25.97 26. 29
32.11 30.49 30. 33
45.8
47.2
42.6
47.6
43.0
46.8
46.7
46.8
48.3
45.7
46.0
47.9
42.8
48.6
43.2
47.0
46.7
46.7
48.2
44.7
Cents Cents Cents
46.0 96.9 96.2 95.4
47.8 96.8 97.0 96.4
43.3 81.2 80.8 80.7
47.5 97.9 99.5 98.
43.4 90.2 90.5 90. S
46.7 111.6 110.5 110.1
46.8 103.0 102.1 101.8
46.3 97.3 97.8 97.
49.9 54.8 53.8 52. 6
45.5 70.2 68.2 66.7
Products of petroleum and coal_____________
Petroleum refining. __ . ___________ ____
Coke and b y p ro d u cts__________________
Roofing m aterials______ . . . . ________
56.09
59.08
48. 66
46. 65
55. 26
57. 98
48.37
47.00
55.14
58. 27
47. 58
45.74
46.8
46.9
45.9
48.9
46.8
46.6
46.5
49.6
47.0 119.7 118.1 117.4
47.0 126.3 124.8 124.2
46.2 106.2 103.8 102.8
48.9 95.3 94.8 93.5
R ubb er p r o d u c ts ________ _____ ___________
R u b b er tires and inner tu b e s________ _
R u b b er boots and s h o e s _______
R u b b er goods, o th er__________________
49.12
57.01
40.40
41.48
49. 30
56. 78
41.11
42. 21
48.98
57.11
40.02
41.24
44.9
45.5
44.4
44.4
45.2
45.3
44.6
45.2
45.1 109.3 109.1 108.7
45.5 125.6 125.4 125.7
44.1 91.0 92.2 90.7
44.8 93.5 93.6 92.4
M iscellaneous in d u s tr ie s ..___ _ _______
In stru m e n ts (professional and scientific)
and fire-control eq u ip m en t. _______
Photographic ap p aratu s_____________ . . .
Pianos, organs, and p a rts _______________
43. 23 44.18 43.88
45.2
46.1
46.1
55.61 56.22 55.41
47. 21 48.31 48.18
44.16 46.49 46.07
49.8
44.7
44.3
50.6
45.4
45.7
50.4 112.1 111.3 110.2
45.8 105.6 106.6 105.3
46.0 99.6 102.2 100. 5
35.8
39.5
42.9
46.3
44.8
40.9
44.1
44.6
47.7
45.6
41.9
44.0
44.4
47.4
45.5
0
42.6
50.7
42.8
43.2
42.4
40.2
38.6
44.1
46.5
44.9
44.8
44.1
44.4
0
0
40.6
0
43.8
50.9
43.0
42.3
41.2
38.7
38.2
44.2
46.8
44.4
44. 6
43.6
44. 3
(5)
(5)
40.2
(2)
0
0
0
43.4 112.6 110.4 110.3
50.6 93.5 93.5 92.8
42.8 98.9 98.6 97.9
41.3 70.6 70.1 69.7
39.8 71.2 71.2 70.8
37.4 60.4 60.2 59.5
37.4 81.0 79.9 79.9
44.2 87.4 86.7 85.3
46.3 90.8 90.2 90.6
44.5 90.1 89.2 89.2
44.5 50.2 50.2 49.8
43.9 62.1 61.7 62.0
44.7 72.2 72.4 72.5
(5)
0
(*)
0
(0
(5)
0
0
40.4 130.2 130.0 131.0
95.6
95.9
95.2
NONMANUFACTURING
Coal m ining:
A n th ra c ite ____________ .
$43. 22 $47. 10 $48. 54
B itum inous_____ _____________________ 47.31 52. 27 51. 66
M etal m ining________ _ _______
43. 44 45. 12 44. 72
Q uarrying and nonm etallic m ining______
40.33 40. 85 40. 20
C rude-petroleum p ro d u ctio n .________ . . .
54.85 52. 99 52.14
Public utilities:
Telephone and telegraph_____
0
0
Electric light and pow er__ ____
48.12 48. 42 47. 77
Street railw ays and busses _____
48.12 48. 19 47. 46
W holesale tra d e ... . . . ______
42. 36 42. 40 42.00
R etail trad e . . . . _ ________
27.83 27. 06 26.29
F ood______________________
32.15 31. 55 30. 25
General m erchandise________
23.09 22. 23 21.42
A p p a re l3_________ _________
28. 77 28. 15 27. 79
F u rn itu re and housefurnishings 3_. _.
37.93 38. 11 37. 55
A utom otive____ _____
41.73 41. 57 41.32
L um ber and building m aterials_________ 37. 55 36. 78 37. 23
Hotels (year-round) 4_____
22. 64 22. 62 22. 46
Pow er laundries__________
27.19 26. 84 27. 26
Cleaning and dyeing ___ ________
31.08 31. 37 3TT65
Brokerage_______________
55. 89 53. 48 52. 21
Insurance
_________
45. 01 44. 56 45.04
P riv ate building construction................
52.81 52. 21 52. 95
0
Cents
119.4
120.1
101.1
87.1
120.2
Cents
114.4
118. 5
100.9
85.7
113.8
Cents
115.9
117.5
100.5
84.9
113.1
1 These figures are based on reports from cooperating establishm ents covering both full- and part-tim e
employees who w orked during any p a rt of one p ay period ending nearest the 15th of the m onth. As not all
reporting firms furnished m an-hour d ata, average hours and average hourly earnings for individual in
dustries are based on a smaller sample th a n are weekly earnings. D ata for the current and im m ediately
preceding m onths are subject to revision.
2 D a ta are n o t available because of th e merger of W estern U nion and Postal Telegraph.
3 Revisions have been m ade as follows in d ata published for earlier m onths:
Retail trade: Apparel group.—M arch average weekly earnings to $27.36; Furniture group.—A pril average
weekly hours to 44.2, average hourly earnings to 84.5 cents.
4 Cash paym ents only; additional value of board, room, and tips, no t included.
8 N ot available.
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Federal Reserve Bank of St. Louis
Trend of Employment, Earnings, and Hours
893
Civilian Labor Force, A ugust 1944
A SEASONAL decline of 990,000 from the July peak reduced the
civilian labor force to a total of 54,010,000 in August 1944, according
to the Bureau of the Census sample Monthly Keport on the Labor
Force. Employment fell by 830,000, as a decline of 1,100,000 in agri
culture was partially offset by an increase of 270,000 in nonagricultural
industries. Unemployment dropped by 160,000 to a level of 840,000.
The reduction in farm employment between July and August was
equally divided between men and women workers. The entire in
crease in nonagricultural employment during the month interval,
however, was accounted for by men. This was the first such JulyAugust increase since 1941 and it may be attributed in large measure
to the fact that the rate of induction into the armed forces in the
summer of 1944 was considerably below that of the two preceding
summers. Employment of women and girls in nonagricultural indus
tries remained at approximately the all-time high of more than
16,400,000, reached in July.
Total employment of women in August 1944—18,030,000—was
560,000 below the seasonal peak of July 1944, but 100,000 above the
August 1943 level. In nonagricultural industries J the number of
women employed was approximately 600,000 above, but the number
of women in farm work was 500,000 below, the level of August 1943.
Civilian Labor Force in the United States, Classified by Employment Status and by Sex,
July and August 1940—4 4 1
[Source: V . S. D epartm ent of Commerce, B ureau of the Census]
E stim ated num ber (in thousands) of persons 14 years of age and o v e r2
Item
1944
1943
August Ju ly
1942
1941
August Ju ly August Ju ly
1940
August Ju ly
August July
otal civilian labor force____ 54,010 55,000 55,440 56,040 56, 340 56, 770 56, 500 56, 550 56, 050
U n e m p lo y m e n t3_______
840
1,070 1,290 1, 950 2,430 4, 950 5, 240 7,980
E m ploy m en t. ... _____ 53,170 54,000 54, 370 54, 750 54, 390 54, 340 51, 550 51, 310 48,070
N onagricultural.- . . . 44,600 44, 330 44, 730 45, 050 44, 690 44,340 42,140 41, 380 38,070
A gricultural________
8,570 9,670 9,640 9, 700 9,700
9,410 9, 930
1,000
10,000
10,000
56,420
8,410
48, 010
37, 350
10,660
Males
ivilian labor force______ . 35, 570 35,890 36, 990 37, 380 40, 790 41,220 42, 020 42,150 42, 300 42,570
430
480
U n em p lo y m en t3_____ _
550
710 1,280 1,510 3.410 3, 580 5, 530 5,890
E m ploy m en t. ...........
35,140 35,410 36, 440 36, 670 39, 510 39, 710 38,610 38, 570 36, 770 36, 680
N onagricultural_____ 28,170 27, 890 28,890 29, 050 31,470 31,510 30, 560 30,100 27,850 27, 270
A gricultural________
, 970 7, 520 7, 550 7,620 8,040
8,050
, 470 8,920 9,410
6
8,200
8
Females
ivilian labor force................ . 18,440 19,110 18,450 18, 660 15, 550 15, 550 14, 480 14, 400 13, 750 13, 850
U n em p lo y m en t3___ . . .
410
520
520
580
670
920 1, 540 1,660 2, 450 2, 520
E m p lo y m en t___ _ .
18,030 18, 590 17,930 18,080 14,880 14, 630 12, 940 12, 740 11, 300 11, 330
N onagricultural____ 16,430 16,440 15,840 16,000 13, 220 12, 830 11, 580
, 280
, 220
, 080
A gricultural________
, 600 2,150 2,090 2,080 1,660 1,800 1, 360 1, 460 1.080 1,250
1
1 Estim ates for period prior to N ovem ber 1943 revised April 24, 1944,
All d ata exclude persons in institutions.
3 Includes persons on public emergency projects prior to Ju ly 1943,
3
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Federal Reserve Bank of St. Louis
11
10
10
Recent Publications o f Labor Interest
O ctober 1944
Child Labor and Child Welfare
Boys in men’s shoes: A world of working children. By H arry E. Burroughs. New
York, M acmillan Co., 1944. 370 pp., illus. $3.50.
The author is the founder and president of the Burroughs Newsboys Foundadation of Boston, which was established for the benefit of these young street
traders. He describes the work of the Foundation and relates various stories of
boys who were given opportunities through this organization.
Employment of children in New York State. Albany, New York State D epart
m ent of Labor, Division of Women in Industry and Minimum Wage, 1944.
10 p p .; mimeographed.
Our concern— every child: State and community planning for wartime and post-war
security of children. By Emma O. Lundberg. W ashington 25, U. S. D epart
m ent of Labor, Children’s Bureau, 1944. 84 pp. (Bureau publication No.
303.) 15 cents, Superintendent of Documents, W ashington 25.
Summary of Federal and State child-labor laws and regulations affecting employment
in transportation and associated industries. Prepared by Division of T rans
port Personnel, U. S. Office of Defense Transportation, and Children’s
Bureau, U. S. D epartm ent of Labor. W ashington 25, June 1944. 41 pp.;
mimeographed. Free.
Consumer Problems
Consumer credit charges after the war. By William T rufant Foster. Jaffray,
N. IL, Poliak Foundation for Economic Research, 1944. 22 pp. (Poliak
pam phlet No. 46; reprinted from Journal of Business of the University of
Chicago, January 1944, p art 1.) 10 cents.
Discusses the credit situation from the point of view of the small borrower,
and the ways in which unscrupulous lenders confuse the borrower and increase
actual rates of interest. Banks are urged to adopt the simple interest method.
Consumer problems in wartime. Edited by K enneth Dameron. New York,
McGraw-Hill Book Co., Inc., 1944. 672 pp., charts, illus. $3.75.
A collection of articles on four main subjects: The consumer faces the war;
The consumer and the m arketing system; The consumer and his Government;
Consumer skills and their application to specific goods. The last-named includes
articles on the outlook from the consumer’s standpoint as regards specific groups
of commodities (home furnishings, textiles and clothing, footwear, etc.).
Consumer training. By Edw ard William Heil. New York, Macmillan Co.,
1943. 584 pp., illus. $2.72.
Grade labeling. (In Contemporary America, Vol. 5, No. 1, American Association
of University Women, Washington 6, November 1943; 19 pp., bibliography.
25 cents.)
Gives the legislative history of grade labeling, tells why such labeling is of
advantage to the consumer, names the groups opposing and favoring it, and offers
suggestions for furthering the movement for its use. The study notes th a t
consumers’ cooperatives have pioneered in the introduction of labeling of foods.
E ditor ’s N ote .— Correspondence regarding the publications to which reference is made in this list should
be addressed to th e respective publishing agencies m entioned. W here data, on prices were readily available,
they have been shown w ith th e title entries.
894
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Federal Reserve Bank of St. Louis
Recent Publications of Labor Interest
895
Cost of Living and Prices
Restricted quantity and cost budget for maintenance of families or children (current
needs only). Wartime budget for a single working woman. Wartime budgets
for three income levels—family of an executive; fam ily of a white-collar worker;
fam ily of a wage earner. Wartime food for four income levels. Berkeley,
Calif., U niversity of California, Heller Committee for Research in Social
Economics, 1944. 4 reports, 58, 17, 113, and 45 pp., respectively; mimeo
graphed. Various prices, ranging frQm 20 to 85 cents.
The prices used in the budgets were those prevailing in San Francisco in M arch
1944.
What the [U. S. Bureau of Labor Statistics] cost-of-living index is. By Aryness
Joy Wickens. (In Journal of Business of the University of Chicago, Chicago
37, 111., July 1944, pp. 146-161; charts. $1.25.)
The cost-of-living index of the U. S. Bureau of Labor Statistics is described as a
good approxim ation of changes in the average prices for essentials of family
living—th a t is, average price changes for food, clothing, housefurnishings, rent,
and services. I t is a price barometer, not a measure of changes in the total am ount
of money spent for family living. The article describes the collection of the basic
d ata and the computing of the index, and also summarizes recent discussions of
the index.
Typical net monthly bills as of January 1, 1944, f or electric service to residential
consumers, cities of 2,500 population and more. Washington 25, Federal
Power Commission, 1944. 89 pp. 25 cents, Federal Power Commission,
W ashington 25.
Health and Industrial Hygiene
The aliphatic alcohols: their toxicity and potential dangers in relation to their chemical
constitution and their fate in metabolism. By W. F. von Oettingen. Washing
ton 25, Federal Security Agency, Public H ealth Service, 1943. 253 pp..
bibliography. (Public health bull. No. 281.) 35 cents, Superintendent of
Documents, Washington 25.
Health problems in the fur industry of New York. By H arry Heiman, M. D.
(In Industrial Bulletin, New York State D epartm ent of Labor, Albany,
June 1944, pp. 217-220; bibliography. Also reprinted.)
A medical study of 694 workers in the fur industry showed the principal hazards
were dermatosis from handling dyed furs; asthma, when certain dyes were used;
and affections of the nose and throat thought to be due to the presence of dust
in the environm ental air. However, there was no evidence th a t pulm onary
tuberculosis is more frequent among fur workers than in th e general population.
Nursing practices in industry. By Olive M. Whitlock, Victoria M. Trasko,
F. R uth Kahl. W ashington 25, Federal Security Agency, Public H ealth
Service, 1944. 70 pp., bibliography. (Public health bull. No. 283.) 5 cents,
Superintendent of Documents, W ashington 25.
Survey of industrial nursing practices in 924 establishments located in 36 States
and the D istrict of Columbia. The purpose of the survey was to obtain factual
inform ation on the activities of industrial nurses, to serve as a basis for deter
mining the range of nurses’ activities, for defining current problems in industrial
nursing, and for form ulating standards of good practice.
Summary report by the Department of Health for Scotland for the year ended June 80,
1944■ Edinburgh, 1944. 23 pp. (Cmd. 6545.) 4d. net.
The report shows th a t the general standard of national health is being m ain
tained in Scotland in spite of wartime conditions but th a t the increasing incidence
of tuberculosis and the relatively high rate of infant m ortality are cause for
concern. There are chapters on the work of the health services, housing, town
and country planning, the emergency hospital scheme, social services, and emer
gency welfare services.
Ventilation and heating, lighting and seeing. London, Medical Research Council,
Industrial H ealth Research Board, 1943. 20 pp., diagrams, illus. (Condi
tions for industrial health and efficiency, pam phlet No. 1.) 3d. net.
Discusses requirem ents of and arrangem ents for good ventilation, heating,
lighting, and seeing.
610054— 44------ 15
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Federal Reserve Bank of St. Louis
Monthly Labor Review—October 1944
896
Income
Agricultural income. Washington 6, Chamber of Commerce of the U nited States,
April 1944. 40 pp., charts.
I t is stated th a t the inclusion of part-tim e farmers and of some nonfarmers with
those engaged more extensively in farming results in a distorted picture of the
disparity between farm and nonfarm income. Farm population tends to in
crease during periods of depression, when many persons resort to subsistence
farming, and to decrease in prosperous periods. Farm prosperity is viewed as
depending vitally on high and dependable levels of nonagricultural employment
and consumer buying power.
Analyses of Minnesota incomes, 1988-89. By R. G. Blakey, William Weinfeld,
J. E. Dugan, and A. L. H art. Minneapolis, University of Minnesota Press,
1944. 367 pp., charts. (University of M innesota studies in economics and
business, No. 14.) $5.
Based on three m ajor sources: Income-tax data, unemployment-compensation
data, and inform ation collected by extensive field surveys. Individual and
family incomes, as related to occupation, are analyzed for 10 economic groups.
The wage-salary groups include clerical workers, laborers, operatives, craftsmen,
service workers, salaried professional workers, salaried business workers, farmers,
independent business groups, and independent professional groups. Factors
affecting income th a t are analyzed include age, sex, size of family, number of
earners per family, occupation or industry, length of employment, nativity, and
relief status. The basic m aterials were published by the M innesota Resources
Commission in a series of volumes entitled “ M innesota Incomes, 1938-39.”
Incomes in selected professions: Part 6, Comparison of incomes in nine independent
professions. By Edw ard F. Denison. (In Survey of C urrent Business,
U. S. D epartm ent of Commerce, Bureau of Foreign and Domestic Commerce,
W ashington 25, M ay 1944, pp. 15-19; charts. Also reprinted.)
The professions covered are certified public accountants, lawyers, physicians,
dentists, osteopathic physicians, chiropodists, chiropractors, nurses, and veteri
narians, engaged in independent practice, 1929-41.
The share of capital in national income— United States, United Kingdom, and
Germany. By Julius Wyler. (In Social Research, New York, November
1943, pp. 436-454. 75 cents.)
Includes a discussion of the share of labor as distinguished from capital and
entrepreneurial shares. Between 1929 and 1937 the percentage share of labor
increased in both the United States and the United Kingdom b ut declined in
Germany.
Industrial Accidents and Workmen’s Compensation
Discussion of industrial accidents and diseases. Washington 25, U. S. D epartm ent
of Labor, Division of Labor Standards, 1944. Various paging. (Bull. No.
68.) Limited free distribution.
Proceedings of convention of International Association of Industrial Accident
Boards and Commissions, H arrisburg, Pa., October 1943.
The safe installation and use of abrasive wheels. Montreal, International Labor
Office, 1944. 175 pp., illus. $1. D istributed in United States by Washington
branch of the I. L. O.
The ever-widening field for grinding processes in a great variety of industries
has made the subject of the dangers incidental to their use of increased importance.
The report covers the composition and m anufacture of abrasive wheels, accidents
and injuries caused by them, and safety precautions against accidents caused by
bursting of wheels or from other causes. There is a summ ary of the main pre
cautions recommended; and technical reports on the conditions of resistance of
abrasive wheels and the stresses in rotating disks are presented. The second p art
of the report contains the safety regulations in force in Germany, Great B ritain ,
and the United States.
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Federal Reserve Bank of St. Louis
Recent Publications of Labor Interest
897
Safety through management leadership. Washington 25, U. S. D epartm ent of
Labor, Division of Labor Standards, 1944. 19 pp. .(Special bull. No. 15.)
5 cents, Superintendent of Documents, W ashington 25.
The importance of management leadership in promoting safety in both large
and small plants is discussed, as well as effective organization of safety committees,
training, and supervision. Safety programs in three plants—large, medium, and
small—are described.
Safety shoes for women workers. Washington 25, U. S. D epartm ent of Labor,
Women’s Bureau, [1944], 3 pp. (Supplement to special bull. No. 3.)
5 cents, Superintendent of Documents, Washington 25.
Federal supremacy in five workmen’s compensation problems. By Samuel B.
Horovitz. (In Boston University Law Review, Boston, Mass., June 1944,
pp. 109-143. 70 cents.)
Examines five issues relating to workmen’s-compensation cases in which the
U nited States Government is the final arbiter, namely, constitutionality,
adm iralty, extraterritoriality, interstate commerce, and Federal territory.
Principal features of workmen’s compensation laws [in the United States], as of July
1944. W ashington 25, U. S. D epartm ent of Labor, Division of Labor Stand
ards, 1944. 21 pp. (Bull. No. 62, revised.) 10 cents, Superintendent of
Documents, W ashington 25.
Industrial Homework
Development and control of industrial homework. By R uth Crawford. Washing
ton 25, U. S. Bureau of Labor Statistics, 1944. 14 pp. (Serial No. R. 1659;
reprinted from M onthly Labor Review, June 1944.) Free.
Trabajo a domicilio—exposición y comentario a la ley No. 12713, [Argentina], By
Alejandro M. Unsain. Buenos Aires, “ Librería Jurídica,” 1942. 371 pp.
Study of the Argentina homework law of 1941, including its historical and
economic background and its relation to other labor laws. The texts of the
law and its regulations are reproduced.
Industrias caseiras em Portugal.. (In Comissariado do Desemprégo, Ministerio
das Obras Públicas e Comunicagoes, Lisbon, July-A ugust 1943, pp. 19-23.)
This article on industrial homework in Portugal enum erates various home
work industries and tells of their need of governmental regulation. The effects of
regulation are illustrated by an account of the embroidery industry in the M adeira
Islands.
Industry Reports
Cotton goods industry: Employment, hours, and earnings, and turnover rates, by
areas, January 1942-April 1944■ Washington 25, U. S. Bureau of Labor
Statistics, Employm ent and Occupational Outlook Branch, 1944. 83 pp.;
mimeographed. Free.
Employment, labor turnover, and absenteeism in private shipyards, 1943. Wash
ington 25, U. S. Bureau of Labor Statistics, 1944. 10 pp. (Serial No. R.
1655; reprinted from Monthly Labor Review, June 1944.) Free.
[Report of Pacific Coast Transit Fact Finding Committee. Washington 25, U. S.
Office of Defense Transportation, (1944?).] 159 pp.; processed.
The committee, which was appointed by the D irector of Economic Stabiliza
tion, compiled, with the aid of the Bureau of Labor Statistics, the Office of Defense
Transportation, and the War Manpower Commission, a large am ount of data
relating to wage rates and earnings, labor turnover, and other phases of West
Coast transit labor.
Report of the Commission of Inquiry on Conditions of Work of Potmen at the Alumi
num Co. of Canada, Ltd., Shawinigan Falls, Quebec. [Quebec, D epartm ent of
Labor?], 1944. 70 pp.; mimeographed.
A study of conditions of work, sickness, absenteeism, and related m atters.
The textile industries of China and Japan. By Fessenden S. Blanchard. New
York, Textile Research Institute, Inc., 1944. 71 pp. $1.
The report reviews briefly developments in the textile industries of China and
Japan since 1917, and economic conditions and problems in the two countries,
w ith a view to determining w hat the post-war opportunities for American invest
m ent will be.
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898
Monthly Labor Revieiv—October 1944
International Labor Organization
Constitutional development of the International Labor Office as affected by the recent
International Labor Conference. By Smith Simpson. (In American Political
Science Review, Menasha, Wis., August 1944, pp. 719-725. $1.)
The International Labor Organization. London, S. W. 1, Fabian Publications
Ltd., 1944. 24 pp. (Research series No. 82.) 6d.
D escriptive survey of the International Labor Organization, including brief
discussions of its future and of trade-union power and responsibility concerning it.
Results of International Labor Conference, April-M ay 1944- By C arter Goodrich
and John Gambs. Washington 25, U. S. Bureau of Labor Statistics, 1944.
12 pp. (Serial No. R. 1665; reprinted from M onthly Labor Review Julv
1944.) Free.
Labor and Social Legislation
Collection of unpaid wages. Washington 25, U. S. D epartm ent of Labor, Division
of Labor Standards, 1944. 13 pp. (Bull. No. 69; reprinted in p art from
M onthly Labor Review of U. S. Bureau of Labor Statistics, May 1944 pp
1015-1020.) 5 cents, Superintendent of Documents, Washington 25.
Equal pay for equal work for men and women. (In N ational Consumers League
Bulletin, Cleveland, Ohio, May 1944, pp. 2, 3.)
Brief résumé of the legislation concerning equal pay for equal work in 5 States
w ith special emphasis on the recent New York law. The W ar Labor Board’s pol
icies in connection w ith wage rates for men and women performing comparable
operations are also reviewed.
Legislación social: Codigo del trabajo, [Chile]. Bv Alberto Ruiz de Gamboa A. and
V î ni l '760SalaS' Santiago’ Editorial Nascimento, 1942. Vol. I, 1046 pp.;
Annotated, indexed edition of the Chilean Labor Code of 1931, including in
addition to the amended tex t of the code, regulatory and other related legislation
enacted through December 18, 1942, topically arranged; pertinent legal opinions
and court decisions; and other material.
Legislación dominicana de trabajo. By J. Bernaldo de Quirés. (In Trabajo
Ministerio del Trabajo, H abana, Cuba, April 1944, pp. 423-450.)
Summary of legislation of the Dominican Republic concerning labor arid social
welfare, with pertinent background m aterial and a brief account of the relations
of the Republic w ith the International Labor Organization.
Léon Blum before his judges at the Supreme Court of Riom, March 11 and 12 1942
London, S. W. 1, Labor P arty, 1944. 159 pp. Is.
Contains the defense of Léon Blum concerning the effect of the Popular F ront
laws, in particular the law on the 40-hour week, which his accusers had charged
were among the principal causes of the fall of France.
Labor Organizations and Their Activities
Directory of labor unions. Washington 25, U. S. Bureau of Labor Statistics,
July 1944. 22 pp.; processed. Free.
A list of national and international unions in the U nited States.
Labor unionism in agriculture. By S tuart M arshall Jamieson. [Berkeley, Calif.,
University of California, D epartm ent of Economics?], 1943. Various paging
bibliographies; processed.
Study of the development of labor unionism and unrest in American agriculture
on both a local and a Nation-wide scale, with a more detailed analysis of the evolu
tion of unionism in certain States and regions.
Union labor in California, 1948. San Francisco, D epartm ent of Industrial R ela
tions, Division of Labor Statistics and Law Enforcement, 1944 23 pp
charts.
. Contains data on union membership, women in unions, and sick-leave provisions
m union agreements.
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Federal Reserve Bank of St. Louis
Recent Publications of Labor Interest
899
Labor organizations in the Territory of Hawaii, [as of August 12, 1944]- Honolulu,
D epartm ent of Labor and Industrial Relations, Bureau of Research and
Statistics, 1944. 11 pp.; mimeographed.
Lists unions affiliated with American Federation of Labor and Congress of
Industrial Organizations, respectively, and independent organizations.
Union security in wartime. By Lester B. Orfield. (In University of Chicago Law
Review, Chicago 37, 111., June 1944, pp. 349-373. 75 cents.)
'
Covers, for the present war, the subjects which comprise “uniop security,"
namely, the closed shop, the union shop, preferential hiring, and maintenance of
membership.
Report of Educational Department, International Ladies’ Garment Workers’ Union,
June 1, 1942, to May 81, 1944. New York 19, 1944. 31 pp., illus.
D etailed facts and figures regarding the activities of one of the oldest programs
of union-controlled and union-supported workers’ education in this country.
Forty-seventh annual report of the Scottish Trades Union Congress, 1944, including
report of organization of women committee and report of youth advisory council.
Glasgow, C. 2, Scottish Trades Union Congress, 1944. 159 pp. Is. net.
Manpower
Demobilization of manpower, 1918-19. By Stella Stewart. W ashington 25, U. S.
Bureau of Labor Statistics, 1944. 68 pp., map. (Bull. No. 784.) 15 cents,
Superintendent of Documents, Washington 25.
Report on the Navy’s utilization of its civilian manpower. Prepared by office of
Assistant Secretary of the Navy. Washington 25, U. S. Government Printing
Office, 1944. 26 pp., charts. (Senate doc. No. 143, 78th Cong., 2d sess.)
Population
Estimates of future population of the United States, 1940-2000. By W arren S.
Thompson and P. K. Whelpton, of the Scripps Foundation for Research in
Population Problems. Washington 25, U. S. N ational Resources Planning
Board, 1943. 137 pp., charts. 35 cents, Superintendent of Documents,
W ashington 25.
Sixteenth census of the United States, 1940—Population: Estimates of labor force,
employment, and unemployment in the United States, 1940 and 1930. Washing
ton 25, U. S. D epartm ent of Commerce, Bureau of the Census, 1944. 18 pp.
15 cents, Superintendent of Documents, W ashington 25.
The concepts used in the collection of statistics on workers in 1940 differed in
m any respects from those of earlier censuses. In order to provide a basis for
historical comparisons, this report presents estimates of the labor force in 1930
and 1940 on a comparable basis, by age and sex
Sixteenth census of [the United States, 1940—Puerto Rico: Population bulletin No.
3, Occupations and other characteristics by age. W ashington 25, U. S. D epart
m ent of Commerce, Bureau of the Census, 1943. 106 pp. In English and
Spanish. 25 cents, Superintendent of Documents, W ashington 25.
The statistics cover m arital status, literacy, ability to speak English, employ
m ent status, etc., of the Puerto Rican population.
The myth of open spaces: Australian, British, and world trends of population and
migration. By W. D. Forsyth. Melbourne, Melbourne University Press;
London, Oxford U niversity Press; 1942. 226 pp., maps, charts. 17s. 6d.
($4.25, Stechert & Co., New York).
The future population of Europe and the Soviet Union—population projections,
1940-1970. By Frank W. Notestein and others, of th e Office of Population
Research, Princeton University. Geneva, League of Nations, 1944. 315 pp.,
bibliography, maps, charts. $3.50, Columbia U niversity Press, New York.
The committee appointed by the assembly of the League of N ations to prepare
a plan for this study approved the putting of emphasis on three m ajor groups of
problems: The problems of countries w ith rapidly increasing populations; those
of countries w ith tendencies tow ard diminishing populations; and those of counries w ith a small population as compared w ith productive areas or n atural re
sources. One of th e chapters deals w ith manpower and another is entitled “ The
burden of dependency: Y outh versus the aged."
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Federal Reserve Bank of St. Louis
900
Monthly Labor Review—October 1944
Abstract of tables giving the main statistics of the [population] census of the Indian
Empire of 1941, with a brief introductory note. London, His M ajesty's
Stationery Office, 1943. 16 pp. (Cmd. 6435.) 3d.
Post -War Reconstruction
Bibliography on post-war planning. New York, Time, Inc., Service on Post-W ar
Information, April 1944. 73 pp.
Post-war employment and the liquidation of war production-—a statement on national
policy. By the research committee of the Committee for Economic Develop
ment. New York 17 (285 Madison Avenue), Committee for Economic
Development, 1944. 22 pp.
Discussion of the problems of contract cancellation, disposal of surplus, and
disposition of war plant and equipment. The committee also makes recommen
dations.
The public reaction to the returned service man after World War I. By M ary Frost
Jessup. Washington 25, U. S. Bureau of Labor Statistics, Post-W ar Division
1944. 45 pp.; mimeographed. - (Historical study No. 73.) Free.
The veteran comes back. By Willard Waller. New York 16, D ry d e n Press
Inc., 1944. 316 pp. $2.75.
Considers the socio-psychological adjustm ents th a t occur in men, w ith particular reference to those in World War II, as they are changed from civilians into
soldiers and then back to civilians.
Bermuda after the war—problems and answers. Bermuda, Trade Development
Board, Economic Advisory Committee, 1943. 55 pp.
Contains suggestions for demobilization and post-w ar em ployment. P articu
lar attention is given to public works and housing.
The war and after: Plans, organization, and work of the Canadian Manufacturers’
Association in connection with the war and in preparation for conditions after
the war. Toronto 1, Ontario, Canadian M anufacturers’ Association, 1944.
48 pp.
The Britain I want. By Emanuel Shinwell. London, M acdonald & Co., Ltd.,
1943. 216 pp.
Discussion of the need for change in B ritain’s economy and wav of life, in the
post-war period. Suggestions made by the author include elimination of the
private-enterprise system in such fields as coal and transport.
First interim report of the Welsh Reconstruction Advisory Council. London, Office
of the M inister of Reconstruction, 1944. 132 pp. 2s. net.
In making its report the committee has directed attention to the special sig
nificance of post-w ar planning in Wales, where economic conditions were extremely
difficult between the two wars. Concrete recommendations are made for future
action.
Relief Measures and Statistics
Operations and employment of the Work Projects Administration. Washington 25.
IT. S. G overnment Printing Office, 1944. 20 pp. (House doc. No. 392, 78th
Cong., 2d sess.)
Report of operations under funds appropriated to the Work Projects Adminis
tration of the Federal Works Agency by the Emergency Relief A ppropriation
Acts, fiscal years 1942 and 1943.
The W PA and Federal relief policy. By Donald S. Howard. New York, Russell
Sage Foundation, 1943. 879 pp. $4.
This study of the various Federal policies followed during the period of the
Work Projects A dm inistration deals only w ith the continental United States. The
volume includes discussions of the problem of relief and the adequacy of general
relief programs and an exhaustive analysis of the WPA and its program.
Organization of American relief in Europe, 1918-19. By Suda Lorena Bane and
Ralph Haswell Lutz. Stanford University, Calif., Stanford University
Press, 1943. 745 pp., map. (Hoover library on war, revolution, and peace,
publication No. 20.) $6.
A collection of documents, chronologically arranged, telling the story of
American relief activities in Europe. Particular attention is paid to the organi
zation and adm inistration of this American relief.
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Federal Reserve Bank of St. Louis
Recent Publications of Labor Interest
901
Social Security
Assistance payments under the Social Security Act at the end of 1943. Washington
25, Federal Security Agency, Social Security Board, Bureau of Public Assist
ance, 1944. 15 pp.
Current and future problems of employee insurance. New York 18, American
M anagement Association, 1944. 44 pp., (Insurance series No. 59.)
Papers presented in a panel session of the Association, dealing w ith group
life insurance and pension plans; health, accident, and hospitalization insurance;
trust-fund plans; and questions relating to workmen’s compensation.
Social insurance benefits and contributions in relation to fam ily income, 1941■ By
Selma J. Mushkin and Leila N. Small. W ashington 25, U. S. Social Security
Board, Bureau of Research and Statistics, 1944. 19 pp., charts; processed.
(Bureau memorandum No. 59.)
The study was designed to provide quantitative inform ation which may be
useful in analyses of both the im pact on family groups a t different income levels
and the economic effects of the present social-insurance systems in the United
States.
Social security. By H arold Kellock. W ashington 5, Editorial Research Reports
(1013 T h irteen th Street NW .), 1944. 13 pp. (Yol. 1, 1944, No. 9.) $1.
Review of the development of social security in the U nited States, proposed
expansions of the social-security system, and effect of the war on the existing
systems.
Can we afford ‘Beveridge’? By H. W. Singer. London, S. W. 1, Fabian Publica
tions, Ltd., 1943. 23 pp. (Research series No. 72.) 6d.
The question of how much improvement can be afforded under the social services
in G reat Britain and a t w hat point the price of further improvement becomes ex
cessive is discussed in relation to the Beveridge plan. The to tal cost of the plan is
analyzed, the budgetary aspect of the problem is discussed, and there is an estim ate
of th e post-war national income.
Royal warrant concerning retired pay, pensions, and other grants for officers, soldiers,
and nurses disabled, and for the widows and children of officers and soldiers
deceased, in consequence of service during the Great War. London, M inistry of
Pensions, 1944. 8 pp. (Cmd. 6528.) 2d. net.
**
Wages and Hours of Labor
Salary and wage data, [by occupation], Michigan cities of more than 10,000 popula
tion, hours of work, overtime policies, and bonuses, 1943-44■ Ann Arbor,
Michigan M unicipal League, 1944. 17 pp.; mimeographed. (Inform ation
bull. No. 45.) $1.
Wages in iron mining, October 1943. Washington 25, U. S. Bureau of Labor
Statistics, 1944. 14 pp. (Bull. No. 787; reprinted from M onthly Labor
Review, June 1944.) 5 cents, Superintendent of Documents, W ashington 25.
Salary report of telephone and telegraph carriers and holding companies, 1942.
W ashington 25, Federal Communications Commission, 1944. 45 pp.;
mimeographed.
Gives, by company, the annual salaries in 1941 and 1942 of officers, directors,
and other persons, am ounting to $10,000 or more, and related information.
Problems of wage policy after the war. By Sumner H. Slichter. (In Proceedings
of Academy of Political Science, Vol. X X I, No. I, New York, May 1944,
pp. 64-88. Also reprinted.)
The author reviews changes during the war, such as the com parative increases
in wages by region, by industry, and by degree of skill. There is also a discussion
of possible need for wage controls after the war.
The national wage stabilization code and its practical application. W ashington
25, U. S. N ational W ar Labor Board, Division of Public Information, 1944.
7 p p .; processed.
The War Labor Board: A n experiment in wage stabilization. By Jane Cassels
Record. (In American Economic Review, W ashington 6, 722 Jackson
Place NW., March 1944, pp. 98-110. $1.25.)
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Federal Reserve Bank of St. Louis
902
Monthly Labor Review—October 1944
What your bank can do about wage and salary stabilization: Rules governing pay
increases which may be made with and without U. S. approval. New York 5,
New York State Bankers Association, 1944. 68 pp. $1.
Payment by results in British engineering. By W. McLaine. (In International
Labor Review, Montreal, June 1944, pp. 630-646. Reprints of article are
available from W ashington branch of I. L. O. a t 10 cents each.)
Women in Industry
Employing women in shipyards. By D orothy K. Newman. Washington 25,
U. S. D epartm ent of Labor, Women’s Bureau, 1944. x, 83 pp., bibliogra
phies, illus. (Bull. No. 192-6.) 20 cents, Superintendent of Documents,
W ashington 25.
Recruiting women workers. New York, M etropolitan Life Insurance Co., Policy
holders Service Bureau, [1944]. 44 pp., illus.
Wartime work for girls and women—selected references, June 19J+0 to July 1943.
Washington 25, Federal Security Agency, U. S. Office of Education, 1944.
66 pp. (Vocational division bull. No. 227; Occupational inform ation and
guidance series, No. 11.) 15 cents, Superintendent of Documents, Wash
ington 25.
British policies and methods in employing women in wartime. By Jan et M. Hooks.
Washington 25, U. S. D epartm ent of Labor, Women’s Bureau, 1944. 44 pp.,
map, charts. (Bull. No. 200.) 10 cents, Superintendent of Documents,
W ashington 25.
The industrial nurse and the woman worker. By Jennie Mohr. WaHiington 25,
U. S. D epartm ent of Labor, Women’s Bureau, 1944. 47 pp., bibliography.
(Special bull. No. 19.) 10 cents, Superintendent of Documents, Washington
25.
The bulletin describes conditions which women workers have to m eet under
war conditions and the way in which the plant nurse can assist in promoting
healthful working and living conditions. Specific subjects discussed are fatigue,
everyday good health habits, health and safety on the job, and taking p art in a
health and safety program in the plant.
Youth Problems
' -««►
.
Work leaders for groups of nonfarm youth employed in agriculture. Washington
25, U. S. D epartm ent of Labor, Children’s Bureau, 1944. 10 pp. (Bureau
publication No. 305.) 5 cents, Superintendent of Documents, W ashington 25.
Young workers and their education; Providing the right type of education and prob
lems of release from work. Report of conference held a t College of Technol
ogy, M anchester, April 15, 1943. London, British Association for Commer
cial and Industrial Education, [1943?]. 40 pp. Is.
Subjects discussed include day continuation schools as youth centers; change
over from voluntary to compulsory part-tim e education; and part-tim e education
schemes in operation in various industries.
The youth service after the war: A report of the Youth Advisory Council appointed
by the president of the Board of Education in 1942 to advise him on questions
relating to the Youth Service in England. London, Board of Education, 1943.
32 pp. 6d. net.
General Reports
Rendezvous with destiny. Addresses and opinions of Franklin Delano Roosevelt,
selected and arranged w ith factual and historical references and summaries
by J. B. S. H ardm an. New York 16, Dryden Press, 1944. 367 pp. $3.
Various economic and labor subjects are touched upon.
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Federal Reserve Bank of St. Louis
Recent Publications of Labor Interest
#
è
V
♦
903
Condiciones de vida de la familia obrera; La regulación colectiva del trabajo, [Pro
vincia de Buenos Aires, Argentina]. La Plata, D epartam ento del Trabajo
de la Provincia de Buenos Aires, 1943. 192 pp., charts.
P art 1 presents the results of investigations of family budgets together with
cost-of-living indexes for certain localities in the Province of Buenos Aires in
August 1938 and August 1942; p art 2 gives a summ ary of provincial legislation
on occupational associations and inform ation on labor agrreements through 1942.
Labor in wartime [in India]. By S. R. Bose. (In Indian Journal of Economics,
Allahabad, January 1944, pp. 179-191. Rs. 3-4.)
Jayan: Its resources and industries. By Clayton D. Carus and Charles L
McNichols. New York, H arper & Bros., 1944. 252 pp., bibliography,
maps, charts, illus. $3.50.
While the emphasis in this volume is industrial, the facts presented have
im portant implications from the labor viewpoint.
Industrial development of the Netherlands Indies. By Peter H. W. Sitsen. New
York, Institu te of Pacific Relations, [1944?]. 65 pp., charts. (Netherlands
and Netherlands Indies Council bull. No. 2.) 50 cents.
A general view of industry and industrial policy in the N etherlands Indies,
supported by statistics insofar as available.
Understanding New Zealand. By Frederick L. W. Wood. New York, CowardMcCann, Inc., 1944. 267 pp., illus. $3.50.
Overall picture of New Zealand from the early settlem ents to 1943. Chapters
are devoted to farming and industry and considerable attention is given to the
growth of the labor movement and the development of labor and social legislation.
Life and labor in Shanghai: A decade of labor and social administration in the
International Settlement. By Eleanor M. Hinder. New York, In stitu te of
Pacific Relations, International Secretariat, 1944. 143 pp. $1.50.
H istory of almost a decade of efforts by the Shanghai Municipal Council’s
Industrial and Social Division, headed by the author, to improve conditions of
em ployment and livelihood for the workers in the International Settlem ent of
Shanghai.
Soviet Russia: A selected list of recent references. Compiled by Helen F. Conover.
JST-rohington 25, U. S. Library of Congress, Division of'Bibliography, 1943.
) p p .; mimeographed. Limited free distribution.
The references are broadly classified by subjects, which include agriculture,
industries and labor, health and nutrition, and population.
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Federal Reserve Bank of St. Louis
U. S . G O V E R N M E N T P R IN T IN G O F F IC E : 1944
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Federal Reserve Bank of St. Louis
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