Re-employment

Manawatu Times, Volume 60, Issue 175, 27 July 1935, Page 5

Re-employment

A Problem Needing Careful Study

The foremost problem of the day is that of unemployment. It is not confined to New Zealand alone, but is world-wide in its scope. It is to be considered here, however, as a problem solely affecting our own Dominion.

With an election pending the subject will shortly become of prime political importance, it is therefore most desirable that this question of unemployment—or re-employment as it should rightly be called—should be reviewed, studied and dispassionately considered before the beat of party controversy confuses the issue.

We propose to publish a series of articles upon the problem of Re-employment. So long as people’s thoughts are allowed to dwell upon unemployment, just so long may their reactions be of a passive nature. Relief Jms been, and requires to be, a matter for the sympathetic consideration of all those blessed with employment as well as those occupying public positions. A state of depression has obtained for the past four or five years. . pining the past year a definite upturn has come in the tide of affairs and daily accelerating recovery is now being made.

The time has surely arrived when there should be active, not passive, thought upon this major problem. The term reemployment problem, is to-day a more accurate and altogether better one than that of unemployment problem. It tends to direct our thoughts upon the course that is now the proper one —how may wc provide useful employment for those out of work.

To promote and assist thought in this direction wc propose to make an extended survey of the fields of opportunity for re-employment. There arc three principle openings to be studied. These comprise primary industries, secondary industries and Public Works. Various sub problems will also be dealt with arising from the three major sections. The purely local aspect will be reviewed with particular attention to Public Works, both State and local body.

Wo have no magic solution to offer. Wc do, however, believe that an awakening of the public conscience and the concentration of attention on the possibilities of the situation should prove of value and wc trust that our efforts may make some modest contribution to the solution of this, the foremost problem of the day.

The Measure of the Problem March, 1033, -was the low point of the depression. The world total, of unemployment had then exceeded 30,000,000 persons. Two years later that gigantic total had receded to 20,000,000. Some 10,000,000 people found work in those two years. In this Dominion, the proportionate rate of re-employment has been approximately the same. At one time we had about 78,000 unemployed males registered. To-day we have about 52,000. So that about 26,000 persons, formerly unemployed, have been reabsorbed into industry.

So many have therefore been placed in employment. Is it not a reasonable conclusion that it will bo possible to find work for yet more? The recent minimum registration

totalled 44,000 men. That was in March last. Since then there has been a seasonal increase of approximately 3000. This seasonal increase is typical of all years, good or bad. In a number of occupations the wage rates are above the general average so as to provide employees with a balance to carry them through the slack period. Shearing rates arc an example of this, as arc the earnings of freezing workers. The 44,000 minimum registration maybe considered tho core of the re-employ-meat problem. Here, 100, an allowance must be made. About 14,000 of these men are not truly employable in the normal sense of the term owing to some physical or mental disability. They always have and always will constitute a more or less permanent problem. But it, is a problem rather of relief than of employment. The remaining 30,000 men arc those who now dei-aud our consideration. How can we place then in useful, normal employment? That is our national problem —the greatest problem of tho day.

The Fundamentals of Employment

An a modern State, the actual production. of goods occupies approximately onc-haif of the man-power. Twenty per cent, can produce the whole of the agricultural needs of the community. Another 30 per cent, produce the whole of the manufactures. The other half of a nation’s employment is occupied in servicing the primary and secondary workers. At first hearing this sounds a fantastic statement. Yet when we take into account all occupations, outside of farming and manufacture, we find that there is an enormous activityinvolved. Consider the circumstances in New Zealand. Major activities, apart from direct primary and secondary production, embrace the following leading items of the national econoniv:—

The Exchange Service: This comprises the distribution of goods through wholesaler and retailer —from producer or importer to the final consumer. There must also be included in this service alt commercial travellers, land and other agents and those, engaged in the business of finance and banking.

Transport: Here is another activity, vitally necessary and affording great scope for cmploy-mcut. Our railways alone employ 15,000 men. Add to this those employed in shipping, wharfage, lorry and bus services, motor-car servicing and we find that transport in all its varied forms comprises one of our leading “industries.” Power Production: This also may be classed as an “industry,” although since the introduction of hydro-elee-tricity it no longer affords the employment it formerly- gave. Even to-day, however, it still employs a considerable body of men. Included in this category- wc may put coal miners, gasworks employees, all those connected with electric power production and distribution, as well as engineering staffs. Construction (including sawmilling): Here is a further major activity. Empioywent in this .varies to extreme tie-

grccs. la depression periods it dwindles as do few other industries. There are a number of other widespread activities that employ a very large percentage of the population — those of the State and local authorities, which may be described as puWie services. In this group are the teaching profession, the members of other numerous Government services and those in local body services.

The aforementioned occupations are by no means a complete list of the national activities. They merely comprise the main ones and are set forth to prove the statement that direct production from farm and factory occupies only one-half of the nation’s manpower.

The foundation, however, of all the .listed activities rests upon the iirst half. That is, farm and factory production is the foundation of all other employment of a country. As the foundation industries wane or prosper, so in the long run are tho “service industries’’ affected.

Full Employment is Possible

Our analysis to this point has brought forth two basic points. One is that, for each man employed upon direct production, another man is provided with employment in the “service industries.”

The second conclusion is that the actual problem now is to provide normal employment for 30,000 men. Reasoning from these two basic facts just stated, we may justifiably conclude that onr first step must be to place one half of our men into production industries. The placing of that half, 15,000 men, into farm, factory- and development work, will provide employment lor the other half in the ‘‘service industries.” Therefore, by- finding one job, we actuallv create two.

Realisation of this principle is of the very greatest importance. For one thing, it; leads to clear thinking, and also it should .stimulate effort. The task of placing .15,000 men, we may then realise, is one within the scope of our capabilities, whereas the continuous contemplation of a 40,000 to 50,000 unemployment problem has produced a feeling akin to hopelessness —an apathetic acceptance of the problem as a permanent one. Like the poor, the unemployed will always bo with us! But when we realise that the problem consists of placing not more than 15,000 men in production, wc see that it is within bounds of our capabilities. Unlimited Employment The British Ministry of Labour advised, “that on dune 24 last, there were 10,301,000 insured persons employed in Britain.” This is the highest number ever recorded in Britain.

A great many people believe that a large proportion of tho world’s population will forever be unemployed, owing to the advances in methods of production and manufacture, because machinery- is displacing the worker. .Superficially this is so, but fundamentally it is a proven fallacy-. Despite all the machinery introduced during the past century there arc more people employed to-day- than ever before. There is truly- no limit to employment. New industries and occupations are ever coming into being to supply mankind’s insatiable wants.

The supreme requirement, wherouuder all may- be employed, is that there be a proper balance iu the national economy, that tho purchasing power of each section of the community be iu agreement with that of the others. The “right to work” is real iu a proper sense. It is “right” that everyone should have au opportunity to work, but as one person’s claim on his fellows it m subject to limitations. It cannot bo said that ho has a “right” to any particular kind of work, or work at any particular rate of pay, or at any particular place, for obviously it might not

be possible for every person io be supplied with work on his own terms, The

rights of an individual are limited by the equal rights of all other persons, and regard for the greatest welfare must be the guiding principle. The next article of this series will be entitled “Farming and Re-Employ* meat.”