UNEMPLOYMENT

Manawatu Standard, Volume LVII, Issue 275, 20 October 1937, Page 16

UNEMPLOYMENT

AIINISTER’S ANALYSIS. REPLY TO CRITICISM. “Statements recently in newspapers and speeches made by Opposition members of Parliament on the extent of unemployment in New Zealand make it necessary for me to draw attention to some further facts in connection with the unemployment returns,” says the Minister of Labour, Hon. H. 'J\ Armstrong, in a statement issued by him. “The monthly returns published by the Labour Department from time to time are being misinterpreted in an attempt to prove: “First, that having regard to the improvement in the Dominion’s income, due to higher prices for our exportable products, the reduction in unemployment has not been as great as it should have been; “Secondly, that by comparison with other countries the increase in employment has not been satisfactory ; “Thirdly, that any substantial reduction should have made a reduction in unemployment tax possible. “It has also, been suggested that as our economic conditions are somewhat, on a par with those of 1929, unemployment should now have been removed completely, seeing that little or none existed before the slump period. “In the first place it is necessary to clear up the complete misunderstanding which is revealed in this last, assertion,” Mr Armstrong said. “It is quite inaccurate to say that in the pre-crisis years there was little or no unemployment in New Zealand. New Zealand economically involves a larger proportion of seasonal employment in contrast to steady full-time employment than is probably the case in any other known country, at least within the British Empire. As a result, considerable unemployment of the normal short-dated character lias been evident for very many years in the Dominion. AVHAT THE CENSUS SHOAVS. “Prior to the enactment of the unemployment legislation in 1930, under which provision for a more exact record of unemployment was made for the first time in this country, the only complete means by which the extent of unemployment could be revealed was in the census returns. The census figures show that in 1896 there were 15,000 unemployed wage-earners m New Zealand on the night the census was taken. In 1916, the corresponding figure was 6000, the reason this comparatively low figure being the exceptional conditions associated with the war. “In 1926, in which year there was a building boom, the census showed that there were 10,700 male wage-earners out of employment at the date of the census. Nevertheless, unemployment was not at that time considered a very serious factor in the country’s economy but two years later still, at the height of New Zealand’s prosperity, the problem had grown to such serious domensions as to cause the then Goveminent to appoint a oommitt'ee of inquiry, the report of which resulted in the present unemployment legislation. “There was no census in 1931, wdien the depression had really commenced. Had there been, it would have been more easily possible to demonstrate the improvement to-day as against the depression period. . “It is with the figures indicating norma-l unemployment that our existing unemployment statistics. must bo compared if a proper comparison showing improvement or otherwise is to be is stated here indicates that during the period covered by these census returns the average number of unemployed wage-earners in the country was 4} per cent. To-day there • are 460,000 males between the ages or M and 65 who are liable for payment ot the levy. At least 250.000 of these are wage-earners. It may be safely stated, then, that on the basis of 4} per cent, of always existent unemployment, at least 11*,000 under the existing economic system would he normally without work whether the unemployment legislation was on the Statute Book or not. INFLATIONARY FACTORS.

“Reverting to the published monthly return there are other factors tending to inflate the figures. The return covers not merely the unemployed, but includes, for instance, gold prospectors who are grub-staked out of the Employment Promotion Fund while working on their own claims. In this country there lias always been a number of men following this occupation. It can therefore be said that they are in normal employment. “The latest return, 6et out hereunder, taken as at September 25, includes 11,397 men working in full-time employment under award conditions, many of whom are completely unaware of their inclusion in returns of unemployment. The . return also includes old men over pension age who are unable to follow their usual occupation and are yet not qualified to receive the old-age pension. It includes also many others who Through physical or mental disabilities are unfit to take any normal employment. “Thousands in this latter category are not properly classified as unemployed, and if and when the National Health and Superannuation Scheme'is introduced, would be provided for under that heading. In tho absence., of this scheme, however, some provision had to be made for them, and this was provided last year by amending the unemployment legislation. “The amendment passed last session allows me to provide assistance in accordance with the other provisions in the Act to persons out of employment or otherwise in need of assistance. How

many there are on tli© Employment Fund because they need assistance tor reasons other than unemployment I will indio/ite later m this statement, and if their number were deducted from the unemployment figures, as might reasonably be done, it would be seem at once that very much greater inroads have l>een made on the unemployment problem than revealed bv the statistics as now published. “With this explanation I desire to set out the figures for August and September, indicating in greater detail how the figures are compiled. Aug. 28, Sept. 25, 1937. 1937. Registered but not eli--2,371 W Receiving rationed relief' -work under No. 5 Scheme 4,979 4,714 Receiving sustenance iniin without work 19,973 I°,l 0 Receiving full-timo employment wholly or partly paid from the Employment Promotion Fund 9,993 11,397 Totals 57,516 36,450 “If the totals of these two columns arc taken, the decrease-is shown to be 866, but if the figures for those on iulltime employment are ignored m each column and only those on sustenance or without regular full-time employment taken into account, the September figures show a reduction of 2270 between the period of the August and the Septtember figures. MEN ON SUSTENANCE. “Complaint is continually made about the number of men on sustenance, but it must be pointed out that a great majority* of those remaining on sustenance are more or less physically unfit for ordinary employment, and draw benefit from the fund only because in the absence of other adequate forms of relief I have exercised the extended powers alluded to above. How greatly the unemployment figures would be diminished if those men were excluded is shown by the following facts:— “The September sustenance total is 18,110, and this figure includes 2895 single men and 5604! married men who were quite unable at the date of the return to undertake any normal work; 181 single moil and 373 married men, according to the reports of our district officers, were only temporarily incapacitated through sickness, but 2714 single men and 5231 married men of the above totals are reported as being more or less continually unable to accept employment in either normal or light work. It is seen, therelore, that of the sustenance total of 18,110, some 8499 men were actually unemployable at the date of the return. “The law, as it stands, has given me power to exclude them from relief or to accept them as being in necessitous circumstances. What I have had to decide is whether I would exclude them even though they were caused distinct hardship or whether I would allow the unemployment figures greatly to exceed wliat would be the figure if the real unemployment problem were actually measured. SCHEME FIVE WORKERS. “Under this scheme to-day the worker is employed at standard award rates for the time he work's. The weekly amount that he may earn has been increased, and in a number of cases the local authorities employing the men are supplemening the wages over and above that allowed from the Employment Fund. It is disclosed from the centres that many of these men are earning from relief, plus supplementary wages paid by the employing authorities or from private employment, up to the basic wage. It must be remembered then that many of the scheme five workers to-day are in no worse position _ than casual workers in ordinary industry, where their wages are subject to deduction through wet weather and other causes. “Having thus explained the figures, I propose to set out the September return as it should appear in order that it may be really comparable with returns published in other countries. As at September 28. Registered but not on relief 2229 On sustenance waiting placement 9661 On scheme 5 relief ... 4714 Total 16,604 On, sustenance, totally unfit for employment for health or other reasons, but being afforded relief from the employment fund 8499 “The above total, which is a very detailed and absolutely correct statement of the unemployment position, demonstrates beyond question that unemployment to-day is not as widespread or prevalent as is being imputed, and is now, in fact, no little different in extent from what was disclosed as being normal by the census returns in the years mentioned.”