OOOUM£^T° ROO* ?rn £0 \> ^ ^ FEDERAL WORKS AGENCY WORK PROJECTS ADMINISTRATION 1734 NEW YORK AVENUE. NW. A2402 WASHINGTON. D. C. HOWARD O HUNTER ACTING COMMISSIONER OF WORK PROJECTS April 14, 1941 MEMORANDUM TO: All State Work Projects Administrators SUBJECT: Attached Report "Employment Experience of Certified Workers Separated "from WPA Projects September and October 1940.11 Transmitted herewith is a report on "Employment Experi¬ ence of Certified Workers Separated from WPA Projects, September and October 1940." This report is based on a sample survey con¬ ducted by the Division of Research in December, in 32 counties chosen as representative both of counties having defense contracts and of counties without such contracts. Your cooperation in facil¬ itating the survey has been greatly appreciated. You will note that, on the basis of the survey, approx¬ imately 121,000 certified workers are estimated to have left WPA projects to take private jobs during September and October, and that for the calendar year 1940 at least 600,000 worhers left for jobs. These estimates include those reported each month a.s hav¬ ing left for private employment, and also a substantial propor¬ tion (38 percent) of those reported as leaving for a variety of unknown reasons, but who were found by interview to have left for jobs. It was found for the separations occurring in September and October that about 62 percent of all the voluntary separations were actually for private employment. An additional 7 percent of those who left voluntarily obtained jobs between the time that they were separated, and the date of interview in December. Of those who were discharged or laid off, it was found that 3b per¬ cent had obtained some employment in the intervening period, A large proportion of these jobs, however were temporary. O "■ Corrington Gill Assistant Commissioner A3402 April 14, 1941 Employment Experience of Certified Workers Separated from WPA Projects September and October 1940 Of the 195,000 workers who voluntarily left the WPA rolls in September and October 1940, approximately 121,000, or 62 percent left to take private jobs, according to a sample sur¬ vey conducted in December by the WPA Division of Research. On the basis of this survey, conducted in 32 sample counties, it is esti¬ mated that at least 600,000 project workers left Work Projects Administration to take jobs in private industry during the calendar year 1940. Employment in Defense and Non-defense Areas In counties where defense contracts had been awarded— mainly industrial areas—almost three-fifths of all separated work¬ ers had obtained some employment after separation, while in countj.es without defense contracts—mainly rural or non-industrial areas— slightly more than one-half had found jobs. That this difference in success in finding jobs is not more striking is attributable in large part to the fact that a much larger proportion of the jobs in non-defense areas were temporary, many of them in seasonal agricul¬ tural work. ' In non-defense counties nearly two-thirds of the workers who had found employment had lost their jobs by the time of interview, two to four months after separation. By contrast, in the more highly industrialized areas, represented among the survey counties by those with defense contracts, only about one-third of the workers who had found employment after separation were jobless when they were inter¬ viewed in December. A2402 - 2 - Even among the defense areas there were wide differences in terms of available employment. In New Haven, for example, 85 percent of all sep¬ arated workers had obtained some employment, while in St. Louis the procor- tion was only 25 percent. Generally speaking, the largest cities, with more diversified industry, showed less reemployment of WPA workers than did defense counties with a more concentrated type of activity. In New York City. 47 percent of the separated workers had found at least tempor¬ ary work at some time after separation, as had 39 percent of those in Cook County, Illinois-(Chicago), and Cuyahoga County, Ohio (Cleveland). In Wayne County, Michigan (Detroit), 57 percent had found jobs, and in the other smaller defense counties if the proportion who had found employ¬ ment was 62 percent. The survey shows that while WPA workers are being re-absorbed at a rate which is probably somewhat less than that for other unemployed workers who have more recently lost their private jobs, they are neverthe¬ less getting a substantial number of the jobs developing out of current defense activity. Not only did large numbers of former WPA workers find employment in industrial areas, but it appears that a considerable propor¬ tion of them found work in defense industries. Of the longest jobs held after separation by all separated workers who had found employment, one in three was in a defense industry. 2J In the defense areas almost half, and in the non-defense areas less than a quarter, of all longest jobs held by separated workers were in defense industries (Table l). 1J Refers to the group of 13 counties with defense contracts included in the sample, exclusive of the four largest metropolitan areas: New York, Chicago, Cleveland and Detroit. 2J Defense industries were defined as those receiving direct defense con¬ tracts by November 30, 1940, which amounted to $5,000,000 or more, or which totalled at least 10 percent of the 1939 product value of the industry. A2£02 — 3 - Wages earned by separated workers on their longest jobs aver¬ aged $21.45 per week in defense areas (which are mainly industrialized), compared to $12.66 per week in non-defense areas (which are principally rural or non-industrialized). Three-fourths of the separated workers with employment in the defense areas, but less than lalf of those in other areas, earned more per week while employed on their longest post- separation jobs than they had earned while they were on Work Projects Administration. Those vho earned less than their former WPA wages were in the main those who had left their project jobs for other reasons than to accept private employment (Table l). Many of the workers who had secured jobs at some time after separation were no longer employed when interviewed in December; some were completely unemployed, while others had returned to Work Projects Administration. Whereas 55 percent of the workers studied had been em¬ ployed at some time following their separation from Work Projects Admin¬ istration in September or October, only 29 percent were employed at time of interview in December. In counties with defense contracts, 41 percent pere employed, 29 percent completely unemployed and 30 percent reassigned to Work Projects Administration at the time of interview. In counties with no defense contracts, however, only 20 percent were employed, 32 percent were completely unemployed, and 48 percent had been reassigned to Work Projects Administration (Table l). By the end of 1940, industrial areas containing only 19 per¬ cent of all WPA employment had received 73 percent of all direct defense contracts. Coversely, more than a third of the population, as well as of WPA employment, was in counties which had received no direct defense A2402 - 4 - contracts. As a result, reemployment in certain depressed and non-indus¬ trial areas is practically non-existent, or at "best is lagging far behind reemployment in the counties of defense activity. Characteristics of Workers Who Found Jobs Of those employed on WPA projects, it was first of all the young, male worker who was most likely to find private employment. Men consti¬ tuted about 83 percent of the workers employed on Work Projects Adminis¬ tration at the end of October; but 96 percent of those separated to private employment were male workers. Similarly, the average (median) age of workers who left Work Projects Administration to take jobs was only 35 years, compared to an average age of 43 years for workers still employed on projects (Table 2). Moreover, the younger the workers, the greater their chances of leaving for jobs. Larger than average proportions of youth (those 18-24 years inclusive) and of workers between 25 and 34 years of age left to take jobs. On the other hand, relatively few of those 45 or more years of age left to secure private employment. These older workers had only about 40 percent as much chance of leaving Work Projects Administration for private employment as had workers under 45. There were also considerable differences between the occupations of workers on Work Projects Administration and those of workers separated to private employment. Persons who by usual occupation were skilled, semi¬ skilled or farm workers found employment most readily. Skilled workers (craftsmen, foremen and kindred workers), for example, constituted less than a fifth of all workers employed on Work Projects Administration at the end of October, 3/ but constituted almost a quarter of those separated workers who found jobs (Table 3). Semiskilled workers 3/ Data on characteristics of workers employed on WPA October 31, 1940, are based on a sample survey conducted in 50 representative counties in November. Workers reporting no usual occupation were excluded in making these comparisons* A2402 - 5 - (factory operatives and kindred workers) similarly, made up 26 percent of those employed on Work Projects Administration, hut 30 percent of those who had johs after separation. Farm laborers and foremen, who were only 5 percent of the WPA load, constituted 12 percent of those with jobs. Farmers and farm managers fared almost as well. Other classes of workers, including the large unskilled laboring group, were less successful (Table 3). This differential in the selection of WPA workers of various occupational groups for employment is a natural result of the concentra¬ tion of reemployment in certain industries. The large number of farm workers obtaining jobs is of course explained by the fact that the per¬ iod covered by the survey (September-December 1940) coincided with the harvest season in most agricultural areas. Many of these jobs were short-lived, and the workers subsequently returned to Work Projects Ad¬ ministration or were unemployed. The high proportion of skilled and semi¬ skilled workers finding jobs reflects in oart the demand for these types of workers in defense industries. Almost seven-tenths of all the longest jobs held by separated workers in the defense industries were skilled or semiskilled, compared to less than half of the longest jobs in all indus¬ tries (Table 3). However, a comparison of the occupational backgrounds of em¬ ployed workers with the occupations of the jobs obtained shows that only four-tenths of the longest jobs held by separated workers were in the same type of work as their usual occupations. Many of the skilled workers must have taken unskilled jobs. Workers who were skilled by usual occupation made up a fourth of those who found jobs; but only a sixth of all longest jobs held were actually in skilled work. Con¬ versely, although less than an eighth of those with employment had been unskilled laborers, more than a fifth of the longest jobs held fell in A2402 - 6 - this group. There appear also to have been, a fairly large number of farmers and farm managers who could find employment only as farm laborers after leaving Work Projects Administration. It is apparent that substantial numbers of workers were unable to obtain the kinds of jobs which they had held prior to working on Work Projects Administration (Table ? Finally, workers who had been unemployed for relatively short periods had an advantage in securing jobs. The average (median) period since the last full-time employment was 26 months for workers separated to private jobs, as compared with an average of 40 months for workers separated for other reasons during these months. 4/ Only a sixth of the workers who found jobs were recalled to work by former employers. Employment Status of Workers Separated to Private Jobs and for Other Reasons Separations to private employment constituted almost a third of all separations during the survey period (September and October, 1940). Most of the remainder left Work Projects Administration because of illness, layoff the regulation against more than 18 months of continuous WPA employment, or other reasons. By the time of interview, in December, a majority of all separated workers had found jobs in private industry at some time subsequent to their separation from Work Projects Administration, as mentioned above. But of workers leaving for reasons other than private employment, only about one in three obtained jobs of some sort after separation. 4/ Excluding those who had never had private or regular government jobs (10 percent of all separated workers). A2402 - 7 - Information on employment status at time of interview shows that many of the jobs held "by separated workers were only temporary, and that the jobs obtained by those who left for reasons other than private employment were of particularly short duration. When inter¬ viewed in December, siz-tenths of the workers originally separated to take jobs were employed in private industry, a fourth had been reas¬ signed to Work Projects Administration, and fifteen percent were com¬ pletely unemployed. Among the workers separated for reasons other than private employment, however, only 14 percent were privately employed, 47 percent were reassigned to WPA jobs, and 39 percent were completely unemployed. This finding confirms the results of earlier surveys which show that workers who leave Work Projects Administration or are laid off without immediate prospect of employment have great difficulty in securing permanent jobs even during a period when reemployment is pro¬ ceeding at a rapid pace. The selective nature of the employment available even in de¬ fense areas and the temporary nature of many of the jobs secured sug¬ gest that only a moderate reduction in the number of persons in need of WPA assistance is to be expected in the immediate future. The figures cited above, together with the fact that in December there wore estimated to bo nearly a million needy unemployed workers in this country for whom WPA jobs are not available, indicate that large-scale layoffs will re¬ sult in increasing the number of needy unemployed who are forced to turn to general relief or to attempt to get along without public assist¬ ance of any sort. A2402 - 8 - The survey involved interviews ivith nearly 10,000 separated workers in 32 counties, so selected as to he representative of differ¬ ent sections of the country, of communities of different sizes, and of areas markedly affected hy the defense program as well as of areas with little or no activity in defense industries. FEDERAL WORKS AC-ENCY WORK PROJECTS ADMINISTRATION Division of Research A2402 Table 1.—Employment Experience of Certified Workers Separated from WPA Projects in September and October 1940 1/ All areas Counties with de¬ fense con¬ tracts 2J Counties with no defense contracts 3/ Percent employed at some time during separation period 55 59 52 Workers who left for private employment 100 100 100 Workers who left for other reasons 31 27 34 Of those employed during: seoaration oeriod: 4/ Percent employed in defense industries 5/ 34 47 23 Average weekly wages $16.60 $21.45 $12. 66 Percent with higher weekly wages than those earned on WPA 6J 61 75 49 At time of interview (all sepa¬ rated workers): Percent employed 29 41 20 Percent reassigned to WPA 40 30 48 Percent completely unemployed 31 29 32 l] Based on interviews with 9,634 separated workers in 32 counties. 2/ Includes 17 counties with defense contracts awarded prior to October 1, 1940, selected so as to be representative of all such counties. 3/ Includes 15 counties with no defense contracts, selected so as to be representative of all such counties. 4/ Figures in this section of the table are based on longest job held during separation period. 5J Based on a classification of industries according to the importance of their defense contracts. Industries which had received direct defense contracts by November 30, 1940, which amounted to $5,000,000 or more, or 10 percent of their 1939 product value, were classed as defense industries. 6/ Weekly wages one dollar or more higher than the former WPA security wage, expressed in terms of an amount per week. A2402 Table 2.—Age Distribution of Workers on WPA and Separated Workers September and October 1S40 (Percent Distribution) (1) Age group (2) Workers on WPA projects Oct. 30, 1940 1/ (3) Workers separated to private employment Sept.-Oct., 1940 (4) Pa.tio of (3) to (2) Total 100.0 100.0 - 18-24 8.8 14.9 1.7 25-34 22.0 33.9 1.5 35-44 23.7 25.9 1.1 45-54 24.8 17.6 .7 55-64 17.9 6.9 .4 65 and over 2.8' .8 .3 Hedian age 43.1 35.5 l/ Based on a sample survey conducted in 50 counties in November 1940. A2402 Seattle 3.—Occupational Distribution of WPA Workers, Separated Workers, and Longest Jobs of Separated Workers (Percent Distribution) Usual occupational distri- Occupational distribu- but ion tion of longest jobs Occupational group Workers on WPA projects Separated work¬ ers who found held during separation period Oct.30,1940 l/jobs after sep¬ aration All jobs Defense indus¬ tries only Total with usual occupations 100.0 100.0 100.0 100.0 Professional and semipro- fessional workers 4.2 2.1 .9 .8 Farmers and farm managers 8.5 9.6 1.4 - Proprietors, managers & officials (except farm) 1.8 1.0 .8 .4 Clerical, sales & kindred workers 9.6 5.6 5.4 2.9 Craftsmen, foremen & kind- dred workers 19.5 24.8 17.0 33.5 Operatives & kindred workers 26.1 29.9 29.1 36.0 Domestic service workers 2.2 1.1 1.8 - Protective service workers . 6 .3 1.4 2.7 Other service workers 4.9 2.8 4.4 .9 Farm laborers & foremen 5.2 11.6 17.2 - Other laborers 17.4 11.2 20.6 22. 8 1J Based on a sample survey conducted in 50 counties in November 1940.