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No. 4—1665 yOCUMHNTB ROOM WOR K S THE PROGRAM *** —Works Ai 18 1938 Progress Administration— For Release to Newspapers, Sunday, April 10, 1938. WPA Reports Findings Lahor changes Changes displacement, changes and often permanent effects of Industrial on and in the Unemployment. type unemployment for older workers, in industrial of labor needed are techniques, although the these later be followed by increased production and employment, to a summary of the Works findings to date immediate changes according by the National Research Project of Progress Administration, Administrator Harry L. Hopkins announced today. Technological changes during largely of a labor-saving rather Corrington Gill, Assistant raitting the report tivity without are the to WPA Mr. Hopkins. necessity plant expansion character, for purchasing large responsibilities power and to provide out in trans- Continued increases in produc- large outlays for capital equipment foreseen by Mr. Gill for the immediate future. assume decade have been Administrator, pointed outlays increase substantially, to than the last he to for finds, meet Until "government the need for must capital continue expanding the necessary expansion of in- vestment." Mr. Gill's statement follows: 2 - "I of am transmitting herewith National Research Project our 4--1665 - on a changes in industrial ticularly throw in recent light most time The years. the technological changes have, and placement is Thus, run a involve and employment. of in the of These, the of any the In the past, by increased problem of labor dis- immediate and the in the The long- immediate effects type of labor needed, in turn, present a problem of unemployment relief. production have hs.s risen to served primarily This process has involved in one been followed techniques. obsolescence. capital goods to workers face. now unemployment. run, Nevertheless, changes technological changes facilities. yet completed, is only course, long labor, displacement "Whenever the consumption goods. the of the volume in industrial changes destitution and we not fell "oelow 8 millions at never distinction must be made between the occupational tion of though studies, ever-present shortrun consequence of industrial change. an effects of study the influence of to employment and unemployment, par- Technology, period. many influences which affect production date expansion of industrial activity during 1933- the unemployment estimates during effort an on to Progress AcLminis- The Works problems of unemployment which on "Respite 37, techniques findings Reemployment Opportunities and Recent Changes in Industrial Techniques. tration initiated this project in of summary and has new to and higher levels, expand productive heavy.demand for the produc- provided increased employment capital goods industries and increasing During periods technological changes of introduced curtailed are and income demand for production, however, directed toward economies in 3 - the utilization of labor and 4--1665 - not are accompanied by plant expansion. relatively small demand for employ- involve Such technological changes nent in the production of capital goods. studies of the National Research "The have been completed, technology last 8 the of a 10 years to fleeted in the the in than on to operate to in industries failed to immediate sion of dustries in During more. technological changes This is types of changes and transportation, reduce re- on communication, the productivity, increase in most findings industries during increases the recent in produc- peak of production obtain the full benefits of the have been adopted during the last few productivity without the necessity for capital equipment consideration of are therefore as a is thus of whole were sources foreshadowed for slower rate than before. for The of demand for thereby of employment special interest. The growing during the decade but available evidence large-scale employment prospective and capital facilities, capital goods, sion, rapid. technology which for or the future. "A of more Continued increases large outlays recent Even at even years. decades With rising production, tivity became in on they as covering changes in plant-expansion character. productivity continued improvements two far so Notwithstanding the fact that with curtailed many factors most information has been emphasis mining, manufacturing, decline after 1929. 1937, of mass Project's findings production. production show that the rather labor-saving and power a productivity during the last and productivity present Project, indicates that their in the expan- production capital goods inof post-war expan- growth major mineral industries no was at a longer require development work, with the sole exception of - the petroleum industry in the mineral as for At the physical difficulties. whole did not a competing fuel with the post-war The as rapid expansion of production in rapidly than more 1929, have capital goods ing an of the industries. ever in before until the onset of of consumer aid in the for expenditures of auto, and airport highways and farm-to-market truck and bus transportation, construction has aided in the and hous- the of bottom contributed of the Moreover, in the development Since have ex- depression transportation the revival goods. a were employment capital goods production. construction to use demand for governmental heavily through capital for previous decade. communication, which depression, 1932-33, governmental outlays power the during Railroad and water received employment purchasing man per industries manufacturing as providing little since been construction have outlets for time, output expansion of capital facilities require Electric power production and telephone panding same much less industries continues to increase in spite of increas- natural and ing- 4—1665 - which produces than is required for coal. labor 4 employment and specially large road.s have stimulated the and the program of airway development of aviation. "Whatever may be the trends in production and employment at any time, the first effects of ment of workers, of particular labor in skills and. occupations, particular localities. demand for another even- type in different in techniques in the kind of labor changes unemployment relief different changes and of labor in the These often result though, eventually, somewhere occupations. There demand for in the there may be else. is displace- required, obsolescence drop a the are a need for increased The effect has been tendency toward a - 5 4—1665 - surplus of agricultural population.. a, relatively high "birth of ing productivity relatively stable rate in rural demand for Technological changes both the have skills must be learned. worker it Frequently before frequently is means influenced by chance of other hand from the These a the new industrial areas. to jobs the at .jobs lower are matter of months and provide for ca.n which meet such pressing new in the oc- sometimes a year the old.er For general business conditions. the worker In Until private needs as capital assume expanding purchasing form of direct period of displaced by technical changes being reemployed. the need for a investment. po ,T, er out- large and to This expansion of public capital expenditures low-cost housing, and the development capital facilities which tend to stimulate business enterprise, for instance, are take the cases technologically displaced workers is, the necessary expansion of investment of to meet of expense In many lays increase substantially, government must continue to responsibilities factors permanent unemployment. declining industrial activity, stands little migrate reemployment takes place. "The reabsorption of of course, the agricultural products. favored semiskilled Often it several years, on hand from one coupled with increas- and the unskilled workers. highly skilled cupational scale. and the on districts, agricultural labor, the tendency for workers to underlie or This arises airports, roads, streets, and sewage systems. faced with the existence of a large order to jobless. Moreover, maintain their private industry." it long number of unemployed .groups unemployed for long periods of time, for these As the government or must as we of care should afford them work experience in skills and to help them toward absorption by - The National Research with Irving Kaplan (A as 6 - Project 4—1665 is directed "by David. Weintrauh, Associate Director. copy of the Summary of Findings attached.) oOo to Date, March, 1938, is
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