Re-employment

Manawatu Times, Volume 60, Issue 195, 20 August 1935, Page 8

Re-employment

Work Available

25,500 MEN REQUIRED No. 10. In the opening article of this series a measure of the re-employ-ment problem was taken; it had been ascertained that the Dominion’s minimum registration during the past year was 44,000 men, upon the Unemployment Board’s roll. -Of this number, somewhere aDOUt 14,000 are “unemployables.” The balance of 30,000 men constitute a supreme national problem. By some means, work must be found for trose men.

\ye set ourselves the task of thoroughly exploring the llelds of possi.blo employment. A fundamental principle followed was that employment is provided in about equal proportions by two classifications of industry, these being productive and service industries. Thus for every mail placed in production, a job would bo automatically made for another man, in the service industries IVo sought work for 30,000 men; could 15,000 bo placed in production, then the balance would ga.n employment in service industries. A search nas oeen made as to the possibilities of placing 15,000 men in productive worn. Opportunities Summarised. There are opportunities to-day in New Zealand for the employment of an additional 28,500 men in productive work. This figure is not given as a maximum; there is no such thing as a maximum of employment in any country at any time. The mutual interchange of goods and services is at all times of illimitable capacity. The estimate of 25,500 is made witn regard to the present condition of the Dominion as regards primary production upon the assumption that secondary industries will be fostered and in the expectation that only economically justifiable works would be undertaken. The total potential employment was found to lie chiefly m .the hands of private enterprise. State and local body works could absorb but 5500 men, or less than one-fifth of the total. The balance was found to lie about equally between primary and secondary industries, with capacities of 12,000 and 11,000 men respectively. Pull Employment Possible, Potential employment for 28,500 men has been found to exist in production. Could tho Dominion so employ but 15,000, the problem of re-employmeut would dc largely solved. It is within tho capacity of the State and local bodies to provido full and useful employment for 5500 men —not on works created for relief purposes, but upon useful and necessary works developments teat are economically profitable. Deducting these 5500 men from the figure of 15,000 leaves a balance or PSOO to be absorbed in farms and factories. It was found upon examination that the Dominion’s farms were undermanned to tho extent of 12,000 men. When it is realised that tnere arc fully 50,000 real farms m the country it is not dif ficult to visualise their engaging 12,000 men—that is only a quarter of a man per farm. Should but one farm in ten take an extra man, work would bo provided for 5000 men. Regarding secondary industries, it was found that a 20 per cent, increased production therefrom would mean employment for 5500 men; In addition to this some thousands of girls would gain employment. Our estimate was that secondary industries were capable of a 40 per cent, development, which would mean employment for 11,000 men.

Our Own District. The population of Falmerston Nortii and the surrounding countryside is approximately 70 ; U00. This is under ti per cent, of tno total New Zealand population. The extent of the re-eiu-ploymcnt problem may best be realised by adjusting it to the proportions of our own neighbourhood. For the Dominion to re-employ 15,000 men m production, this district would require to engage 700 only. Of this number 250 wotUd go to public wonts construction and some 450 would have to be placed on farms and in factories. ‘On a Dominion average the men to be employed by private enterprise would be equally divided between secondary and primary industries. Allowing for the particular conditions of our own area, the Dominion proportions would require to be amended. Our 700 men can probably be placed in these proportions: Public and local body works, 200; farming, 350; and factories, 150 men. There is our task! Should the people of this district accomplish that, and tho people in all other parts of the Dominion do likewise, the problem of unemployment would shrink to negligible proportions. Factors in Re-employment. In this series of articles we have sought to mcasine the size of the problem and to survey the opoprtunities for re-employment. From the commencement we disclaimed to have any magical solution of the problem. Our conclusions arrived at are in all cases based upon the assumption that the present economic system will continue in vogue, that no great legislative changes will be introduced, and that the existing price levels will remain practically unchanged. Any statements made have been made with total disregard to political questions of the day. Re-employment depends primarily upon tho initiative of the private citi zen, having regard to his economic situation. The policy of the State does however, affect the situation to a con siderable degree. At present State policy influences re-employment in five important ways. Theso are: Tho exchange rate, protective tariffs, rates of

taxation, Unemployment Board subsidies and interest rates. Tho first and the last two items exert a direct influence upon farm employment. All five directly affect tho expansion of secondary industries. The maintenance of tho exchange rate at its present level is of vital importance to tho very maintenance of employment as well as to an extension thereof. The continuance of tho present tariff policy, whereby secondary industries are given reasonable protection, is absolutely necessary both to tho maintenance and expansion of factory employment. Lowering of taxa tion is at all times desirable from the point of view of expanding employ ment. Tho State must of necessity levy a considerable tax upon tlio community to provido for tho public funds. An extensive lowering of tho total taxation levy appears improbable. Bates of taxation might bo lowered to some extent as prosperity is gained and turnover consequently increased. The greatest opportunity for a lightening of taxation lies in re-employment. A substantial- reduction of tho present special taxation of £4,500,000 per annum would, however, lmvo but little effect upou public expenditure as a whole. The unemployment taxation does not lessen tho public income; it merely re-distributes it. Certain taxes do, however, affect secondary industries and a conscious effort should bo made to levy taxation in such a manner that these aro fostered to the utmost degree. Tho Unemployment Board is prepared to subsidise new industrial vei> turcs. So long as the problem of unemployment continues this policy should bo held to. The State has followed a conscious policy to reduce interest ■ rates. The effects of such a policy aro not immediately felt, but their eventual effect is to stimulate employment. Lower interest rates are a powerful influence on the expansion of industrial and rural activities.

Conclusions. Responsibility for re-employment rests chiefly with investors, farmers, factory-owners and the State. Tho Unemployment Board cannot go ahead and erect and run factories or buy ami work farms. If it is desired to continue the present system of society in this country then those responsible for its management must deliberately set themselves to the task of re-employ-ment.* It is one within our means. To placo 15,000 men in productive work is not an impossible task for one and a-half million people. It can bo done and it must be done!

The State can do its part by tariff adjustments, by specially designed taxation, and by Unemployment Board subsidies to farmers and industrialists.

The public can also assist by showing Dominion manufacturers every preference possible when making purchases.

Tho investor lias power to assist the expansion of secondary industries by supplying capital for their development. Till now capital has been shy of industrial investment. As Dr. Marsden says, “We have lacked the industrial sense”

Farmers and factory-owners are the actual employers. Upon their financial ability and enterprise employment ulti matcly depends. Admittedly, their ability to offer employment is subject to factors largely beyond their control, but their destiny lies largely in their own hands, being dependent largely upon their initiative and capability.

Re-employment now depends to a considerable degree upon national morale. Hopelessness in outlook will get us nowhere. A firm belief that re-employment is possible will greatly assist the attainment of that desirable state where all who will may work.

N. 8.: This article concludes the series devoted to a study of the opportunities for national re-employment. From time to time special articles will bo published on particular phases of employment.