UNEMPLOYMENT IN UNITED STATES

Press, Volume LXXXV, Issue 25734, 21 February 1949, Page 7

UNEMPLOYMENT IN UNITED STATES

3,000,000 Reported Out of Work STATISTICIAN NOT ALARMED (N.Z. Press Association—Copyright) (Rec. 11 p.m.) WASHINGTON, February 19. The present United States unemployment figure is estimated at 3,000,000 by Mr Ewan Clague, commissioner of the Bureau of Labour Statistics. This compares with a midJanuary total of 2,700,000. Initial claims for unemployment benefits by newly unemployed workers were on an average 368*000 a week during January, but eased to 334,454 during the week ended on February 12. Mr Clague said that the "more than seasonal” drop in employment did not mean that America was out of the full employment era. He said the figure of 2,000,000 unemployed was “as low as it could get” in America’s progressing economy, which was subject to sudden industrial changes, throwing people out of work. Not until unemployment reached a sustained total of 4,000,000 to 5,000.000 would there be an unemployment problem requiring action.

The employment drop in non-rural industries from December 15 to January 15 was 1,750,000. but Mr Clague said that this should be viewed in the light of three important facts: first, employment in December was the- highest for any December in history; second, the December-to-Janu-ary reduction was mainly-"seasonal; and third, the reduction was small and select, hitting mostly the manufacturing industries. Mr Clague attributed the manufacturing drop to overtaking war-time shortages. He said the exact size and significance of the employment drop could not be measured untij April. Meanwhile. Treasury Department economists interpret as a healthy sign increased sales of Government bonds, and fewer redemptions in 1948. This is also interpreted as showing that Americans are becoming more cautious in their spending habits, at least until the outcome of the present adjustment becomes clearer.