11.- 11a

Under Scheme 13 to-day, every endeavour is made to ensure that unemployed workers are placed in avenues of activity wherein private citizens, business enterprise, and regular departments of Government do not normally function. It appears that no better and no more generous policy can be followed although still be done m the direction of ascertaining the full scope of work available in this direction. Even on aby no means exhaustive examination, however, it appears that the number and variety of these socially useful employments are boundless. It has been learned in the older countries that, notwithstanding economic self-sufficiency unemployment can and does arise with unprecedented volume. The lesson to be learned from this' is that economic buoyancy is not necessarily the key to universal employment. If, therefore, we were to set out with the intention of becoming economically self-sufficient, we might achieve valuable national results without making the Dominion totally immune from unemployment. All this appears to direct attention to the necessity for more concentrated study and action in connection with the relationship of labour to industry and to ensure that every single factor constituting our industrial system is brought under review. Much as one might deplore the evils existing at the present time arising out of unemployment, it may be infinitely worse to embark upon a policy designed to provide relief which, taking a long-range view, may result m exceedingly far-reaching reactions to the detriment of the Dominion's economic life. STATE PLACEMENT SERVICE. Since its establishment a little over two years ago the State Placement Service has achieved a large measure of success m the performance of the functions for which it was designed—namely to man industry and commerce with the most suitable available labour and so reduce unemployment • to serve the best interests of both employer and employee, and to secure for the community the benefit of the special tiaming and qualifications possessed by any disengaged individual It should be remembered that at the time of the inauguration of the Service there was no pattern from which to work, and, accordingly, the evolution of this piece of departmental machinery has been largely a pioneering work The continued and enlarged patronage of employers indicates that the Service is filling a real need, while the increased number of enrolees who are not relief recipients demonstrates enhanced confidence, on their part, that the utilization of the Service affords the most likelv channel of approach to employers. Incidental to the function of locating and filling vacancies much welfare work has had to be undertaken, particularly in connection with the placement of disabled men and youths and with the industrial and social rehabilitation of those who, under the stress of protracted and enforced idleness, had descended in the scale of good citizenship and social responsibility. The fact that the State of Victoria, after an exhaustive study of the New Zealand system has instituted and intends to expand a Service which is almost identical in form and which is operating with marked success, is an indication that the methods evolved in this country will stand the test of application elsewhere. This fact also implies that the New Zealand methods are such as to ensure the greatest efficiency and, therefore, the greatest benefits to employers and workers alike Placement Results. It is desired to emphasize once again that the term " placements " indicates " positions filled " In some cases the one individual may have been engaged several times within the year Comparative results for 1936-37 and 1937-38 are :—

— 1 I I (N.B. Table excludes placements with Government Departments and local bodies, and Table X of the Appendix shows the distribution among provinces of positions filled durine the fourteen months, Ist April, 1937, to 31st May, 1938. Table Xa indicates the origin, according to provinces, of all enrolments during the same period. 6 The 1937-38 figures reveal placements averaging 3,700 per month, while those for 1936-S7 average only 2 689 per month This increase in the monthly average of positions filled has coincided with a general industrial and commercial expansion, receiving its initial stimulus in the previous year and manifesting itself m a progressive economic buoyancy after several years of depression The increase m placements has been related to the intensive programme of State housing which was launched m 1936 and has gathered momentum in the years 1937 and 1938. Economic recovery has resulted in an augmentation of the staffs of offices, workshops, warehouses, factories, &c„ and the demand made upon the Placement Service in 1937 was exceptionally heavy. With the advent, however of 1938 the ca for labour became more stabilized on account, principally, of the absorption into industry of the bulk of disengaged workers. The fact that placements averaged 3,700 per month for the fourteen months ended June of this year is a reflection of the high standing which the State Placement Service occupies with employers and workers alike.

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1937-38. 1936-37. Fourteen Twelve Total Months. Months. Permanent (over three months) .. .. .. \q \\2 14 qoq 09 jA n Temporary (over one week but less than three months) .. 9' 004 21' 842 Casual (up to one week) .. .. .. .. 2 o'849 29^793 51,799 32,276 84,075