UNEMPLOYMENT IN DOMINION

Southland Times, Issue 23335, 20 October 1937, Page 6

UNEMPLOYMENT IN DOMINION

Position In Other Years Compared EFFECT OF SEASONAL WORK MISINTERPRETATION OF FIGURES CLAIMED A claim that unemployment in New Zealand today is not as widespread or prevalent as had been imputed in some quarters is made by the Minister of I Labour (the Hon. H. T. Armstrong) in I a comprehensive survey of present unemployment returns. The Minister claimed that monthly statements of unemployment in the Dominion were being misinterpreted, and that the position today was little different from that disclosed as being normal by census returns in the years before the depression. “Statements appearing ' recently in newspapers and speeches made by Opposition members of Parliament on the extent of unemployment in New Zealand make it necessary for the publication of some further facts,” said Mx- Armstrong. “The monthly returns published by the Labour Depaitment from time to time are being misinterpreted in an attempt to prove: (1) That having regard to the improvement in the Dominion’s income, due to higher prices in our exportable products, the reduction in unemployment has not been as great as it should have been; (2) That by comparison with other countries the increase in employment has not been satisfactory; (3) That any substantial reduction should have made a reduction in unemployment tax possible. “It has also been suggested that as oui’ economic conditions are somewhat

on a pax- with those of 1929, unemployment should now have been removed completely, seeing that little or none existed before the slump period.” SEASONAL WORK “In the first place it is necessary to clear up a complete misunderstanding. It is inaccurate to say that in the precrisis 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 probably any other known country, at least within the British Empire. As a result, considerable unemployment of the normal short-dated character has been evident for very many years in the Dominion. “Before the unemployment legislation in 1930, undex- which provision for a more exact record of unemployment was made for the first time, 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-eaxmers in New Zealand on the night the census was taken. In 1916 the corresponding figure was 6000, and the reason fox’ this comparatively low figure was the exceptional conditions associated with the war. “In 1926, when there was a building boom, the year making a record for building expenditure in New Zealand, the census showed that there were 10,700 male wage-earners out of employment. Nevertheless, unemployment was not at that time considered a very serious factor in the country’s economy, but two years later, at the height of New Zealand’s prosperity, the problem had grown to such serious dimensions as to caxxse the then Government to appoint a committee of inquiry, the report of which resulted in the present unemployment legislation. “There was no census in 1931, when the depression had really begun. Had there been, it would have been more easily possible to demonstrate the improvement today as against the depression period. It is with the figures indicating normal unemployment that our existing unemployment statistics must be compared if a proper comparison showing improvement or otherwise is to be made. AVERAGE OF UNEMPLOYMENT “During the period covered by these census returns the average number of unemployed wage-earners in the country was 44 per cent. Today there are 460,000 males between the ages of 20 and 65 who are liable for payment of 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 be normally without work whethex- the unemployment legislation was on the Statute Book or not.

“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 hrs always been a number of men following this occupation. It can therefore be said that they are in normal employment. “The latest return, 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 occupations 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. SUPERANNUATION PLAN “Thousands in this latter category are not properly classified as unemployed, and if and when the national health and sunerannuation scheme is introduced would be provided for under that heading. In the 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. “If the number on the Employment Fund because they need assistance for reasons other than unemployment was deducted from the unemployment figures as might reasonably be done, it would be seen at once that very much greater inroads have been made on the unemployment problem than revealed by 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. “As the unemployment figures for last August were published and for,

“If the totals of these two columns are taken, the decrease is shown to be 866, but if the figures for those on full-time employment are ignored in 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 September figures. PHYSICALLY UNFIT “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 fox’ 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 these 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 men 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 ox- less continually unable to accept employment in either normal oxlight work. It is seen, therefore, 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 ox’ 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 whethex- I would allow the unemployment figures to exceed greatly what would be the figure if the real unemployment problem were actually measured. “I would mention, also, that the No. 5 scheme today has been completely transformed since this Government assumed office. It is intermittent employment, but only in that respect , is it the same scheme as that administered before the election. Under the scheme today the worker is employed at standard award rates for the time he works. The weekly amount that he may earn has been increased, and in a number of cases the local authorities employing the men are supplementing 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 No. 5 scheme workers today 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 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: September 28 Registered but not on relief 2,229 On sustenance, waiting placement 9.661 On scheme 5 relief 4,714 Total 16,604 On sustenance, totally unfit for employment for health or other reasons, but being afforded relief from the Employment Fund 8,499 “This total, which is a very detailed and absolutely correct statement of the employment position, demonstrates beyond question that unemployment today 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. REDUCTION OF TAXATION “It is necessary to reply to the general argument that if unemployment has been reduced in the degree indicated, unemployment taxation should be reduced, and it is only necessary to point out that the Employment Promotion Fund is now devoted to a greater extent than heretofore to reconstructive purposes as well as to the relief of unemployment. These purposes are well defined in section 35 of the Act, clauses of which read as follows: — (1) The development of primary and secondary industries in New Zealand,'" and the establishment of new industries, so that an increasing number of workers will be required for the efficient carrying-on of such industries. (2) The making of arrangements with employers or prospective employers for the employment of persons who are out of employment. “These two purposes conform with the recommendations of the special inquiry committee appointed in 1928, which carried out its investigations under the chairmanship of Sir William Hunt. They even call for expenditure in excess of the sum required for the provision of normal forms of relief. A typical instance of their administration is the assistance given to the flax industry. In this case the general principle which now animates the operation of the Act was expressed. The assistance given to the industry is enabling it to overcome immediate difficulties, and is calculated to produce permanent rehabilitation.”

September would be published, they were: August 28, Sept. 25, 1937. 1937. Registered but not eligible or not placed on relief 2,371 2,229 Receiving rationed relief work under No. 5 scheme 4,979 4,714 Received sustenance without work 19,973 18,110 Receiving full-time employment wholly or partly paid from the Employment Promotion Fund 9,993 11,397 Totals 37,316 36,450