Ask the Scholar

Document scope · 1 page
doc
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory. For page-specific OCR and visual context, open one of the page chats.

Scholar Source Context

Document identity
localId
323154385
label
Labor 1989 [OA 8486] [1]
core
doc
dtoType
document
pageCount
1
Source metadata
Source extras
naId
323154385
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
341e3142a5606897
ocrText
Originally Processed With FOIA(s): FOIA Number: S S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Speechwriting, White House Office of Series: Speech File Backup Files Subseries: Alpha File, 1987-1991 OA/ID Number: 13844 Folder ID Number: 13844-012 Folder Title: Labor, 1989 [1] Stack: Row: Section: Shelf: Position: G 26 23 3 1 02. 08. 89 12:39PM *LABOR SECRETARY DOLE P10 SPECIAL DELIVERY [PRECEEDING 9 PAGES] ANN: CHRISTINA /// Research PROBLEMS? Mark Fage foture 523-8271 02. 08. 89 12:39PM *LABOR SECRETARY DOLE P01 Campbell Soup has an outstanding child care program, right across the street from corporate headquarters, that began in 1983 after two employees suggested the idea. It's open to all employees, and accepts children aged three months to kindergarten. Costs are evenly divided between employer and employee, and the parents satisfaction. who work for Campbell Soup have expressed a great deal of Programs like this reduce employee turnover and rates of absenteeism. They lift employee morale, and loyalty to a firm. And they make the recruitment of new personnel easier. And we're not just talking about women Earlier this month, Du Pont surveyed 4,000 of its people - and found that more than half of the men surveyed were using child care. Taking the broader view, these policies have real implications for the quality of talent available 60 businesses in this country --- and the quality of the goods and services they provide. both private enterprise, and public policy-makers, is education. But perhaps the most important and far-reaching challenge facing The second priority of the three I've outlined -- investing in our future. future workers -- will be absolutely critical in the near Simply put, we're going to have to close the skills gap, and get serious about public education - by making parents, schools, and business accountable. The fact is that the current pool of applicants for entry-level jobs lack the most basic skills -- and about it. all of us, including business, are going to have to do something This will require more than throwing more money at the school systems. Money alone won't do it. In the last couple of decades we've seen federal spending on public education increase by a percent. thousand percent --- and spending from all sources increase by 600 At the same time, we've watched the quality of public education slip. Everyone's got their favorite horror story. One of mine where the power went out. takes place in Washington, in a fast food restaurant downtown, with pictures of burgers, shakes, and fries for the cashiers to There were four young people at the registers --- those registers press. No skills required. Just some eye-hand coordination. And when the power failed in that business, so did the kids. Well, at the far end of the counter, an elderly lady pulled out a pad them. and a pencil -- and started adding up people's orders for 02. 08. 89 12:39PM *LABOR SECRETARY DOLE P O 2 High-tech -- minus low-tech -- equals no-tech. David Kearns of Xerox complains that American companies are "doing the school's product recall work for them. He, like many executives, resents that. Meanwhile, those who work in the nation's schools blame parents, churches, families, and community agencies, saying "we're doing work they ought to have done." There is an alternative. And that's for us to stop blaming the students -- stop blaming the schools -- stop blaming other institutions -- and start getting involved. 3-M Company in Minneapolis did. They started a program that brings women in technical occupations into the schools, to encourage girls to prepare for scientific and technical careers. The New Jersey Public Service Electric and Gas Company matches black high school students with successful black managers, who provide inspiration, career guidance, and advice. Maybe you've heard success stories like these --- maybe you've got a few of your own. But essentially, American business has a choice to make: train, or miss the train. Government can help, here. I believe that the Bush administration should and will push for more accountability from public schools; ensure that funds are spent wisely; work with governors on state curricula, student achievement, and teacher motivation and incentives; and devote funds to programs from Head Start, to magnet schools, to a college savings bond program. But beyond funding, beyond pedagogy, beyond content and back-to- basics curricula, we're talking about a fundamental cultural shift -- a change that we're all going to have to work to bring about -- re-asserting the value of learning in America. For this country's young people, this means constantly reminding them not simply to "stay in school,' but also letting them know why they should stay in school: that those who drop out commit economic suicide. You and I understand the connection between education, and success -- but young minds often don't, if the choice is between studying calculus, and selling crack. Former Labor Secretary James Mitchell once said, "We need young men and women who are zealous in maintaining a high ethical standard in their community, professional, business, labor, political, and civic organizations. "In short, he said, "We need men and women who are willing to accept a challenge -- who are willing to become engaged in the business of the community, the state, and the nation." 02. 08. 89 12:39PM *LABOR SECRETARY DOLE P03 colleges, your role in this kind of training is particularly important, if we want to remain competitive. I say "remain," because the news isn't all bad. Over the last SIX years we've made unprecedented social and economic progress in this country. We're in the sixth year of the longest peacetime economic expansion in U.S. history. Nearly 3 million people have risen above the poverty line. More people are working today than ever before. Real GNP is still rising -- up 22 percent over the past five years. And all of us have participated in, and benefitted from, this growth. More than 15 million new jobs have been created during the current expansion -- 94 percent of them full-time. Black employment has risen more than 25 percent since 1982; the number of black teenagers with jobs has increased over 50 percent. Hispanic employment is up by over a third The jobs created in the current expansion have, in fact, been anything but the "McJobs" you may have read about. Since 1982, the number of minimum wage jobs has declined by 23 percent, while those paying over $10 an hour have increased by 50 percent. We are making significant and measurable progress. But we have work to do. We are a nation known for good ideas, but we're still not working smart. The technology for the video cassette recorder, for instance, was developed here -- but the machines themselves are now manufactured abroad. The idea of quality circles in management first developed here -- but the Japanese were the first to apply quality circles to their daily operations. Robots, too, were first developed in this country, but then mass-produced abroad. This country will maintain neither its wages nor its wealth if we continue to act as a test-bed for the rest of the world. The competitiveness of our companies, and our national economy, demand that we translate good ideas into competitive products. Rates of exchange are no excuse. Not long ago there were complaints that the dollar was too strong. Now it's too weak. It's not enough to simply balance trade, or adjust currencies; to maintain our standard of living, trade must be balanced while supporting a high wage level at home -- and that will only happen if we develop a highly productive, highly-skilled workforce. Otherwise, as one economist recently put it, we might as well "let the price of the dollar adjust to the point where one dollar equals one yen, and sell the entire economics building at the University of Chicago, brick by brick, to the Japanese to use as a disco." Our products would be cheap at that point -- but so would our national income. There is another alternative, of course. And that is to develop a workforce of highly productive, creative, educated workers -- 02. 08. 89 12:39PM *LABOR SECRETARY DOLE P04 taking advantage of emerging technologies to produce a wide range off. of goods and services. That scenario is not necessarily that far Already, almost half of American workers have already experienced major technological changes in their jobs -- and are enthusiastic about those changes. More than half have told the Bureau of Labor Statistics that technology has increased their job independence, and three-fourths believe that technology has made their jobs more interesting. We in Washington are busy talking about homework regulation when we should be talking about people working at home by computer. I'm going to spend a few minutes sketching out what the immediate future holds for us, in terms of human capital. Then I'll talk about what we can do, together, to make the most effective use of this changing workforce. In the next ten years, the supply of labor will grow more slowly than at any time since World War II. The profile of the workforce will shift -- dramatically. The average worker will be older. Women will account for two- thirds of workforce growth in the next decade. Native, white males, if not exactly an endangered species, will no longer be typical workers. They'll comprise 15 percent of the new entrants to the labor force, compared to almost 50 percent today. New entrants will primarily be women, blacks, hispanics, and immigrants. Those are groups traditionally disadvantaged because of discrimination, lack of education, or language barriers. Our most pressing responsibility is to see that these people are prepared for the work that will be available to them. The jobs created in the near future will be more complex demanding better reading, writing, and reasoning skills. Our demographic destiny will lead to a severe shortage of qualified workers to fill the jobs being created by technology and in services -- unless we do a better job of developing the talent to fill those jobs. We are headed for a significant -- and expanding -- and expensive -- skills gap. This gap must be narrowed. If we move quickly, together, over the next ten years we will be able to offer a job to everyone who wants one. Precisely because these demographic changes are basic and enduring, what we do today will matter powerfully tomorrow. We must never be forced to import talent from overseas. We talk about minimum wage, when we should be talking about maximum bonuses. We talk about maximum hours, when we should be talking about minimum skills. We talk about import quotas, when we should be talking about quality exports. 02. 08. 89 12:39PM *LABOR SECRETARY DOLE P05 We cannot afford, given the challenges of the immediate future, not to make the most productive use of our talent. We cannot allow American workers to become an underdeveloped resource, if we hope to improve the quality of life here, and remain competitive abroad. What we need to build on is the quality of the American workforce by that I mean their self-esteem, their skills, their education, their adaptability. Only then can we assure the quality of American goods and services -- and a better standard of living for all Americans. By insisting that we need to improve the quality of American labor, I'm not blaming the workers. This challenge must be met by unions, school leadership, all levels of government, and by private enterprise. We need more intense and creative cooperation on quality in the workforce. And you are in an ideal position to catalyze it. Over half of the jobs created in the coming ten years will require education beyond high school. None of your schools will have to face declining enrollments, if you're willing to work out exactly what local business and industry need. It may sound strange for an educational institution, but you must, in fact, be market-driven. How? You can coordinate your curricula to respond to changing requirements on the part of employers -- being careful to balance immediate needs with more long-term, flexible skills. You can ensure that your schools provide practical, realistic career counseling. You can forge closer partnerships with local businesses, to better focus students on the world they're preparing to meet. You can create better links between your schools and communities through a liaison officer, who can provide local forecasting and planning of education needs, to match skills to demand. This month's Governing magazine has some hard numbers on what that kind of work does for local economic development. In 1987 the Illinois Community College Board spent $3.73 million of its own funds on specialized training for its 39 community college districts. This was supplemented by fees from businesses, JTPA money, and other state funds. The result was the creation or retention of nearly 22,000 jobs and assistance to more than 5,500 companies last year. The colleges also helped 3,200 firms prepare bids on government contracts, which eventually netted more than $66 million in contracts. Not bad for a $3 and 3/4 million investment. 02. 08. 89 12:39PM *LABOR SECRETARY DOLE P06 An opportunity, in fact, to attain what I consider the true meaning of "full employment": beyond a percentage of people at work, an assurance that people have work worth doing. Good pay isn't all there is to a good job, of course. And neither are good wages all there is to good pay. Our workers' prosperity today in fact, is unprecedented. Wages have been rising faster than inflation during this administration - but benefits have been rising even faster than that. Wages and salaries have grown about 36 percent. The value of benefits like medical insurance and pension payments, education, and time off, have risen 48 percent. Taken together, total compensation has Aisen about 40 percent -- about a third faster than inflation. So that's the road we ve travelled. And make no mistake about it -- Americans are better off today that they were eight years ago. I see no reason why -- with the right policies in place -- they can't become even metter off in the years ahead. We are standing at a very firm point in our economic evolution. I am optimistic about our future. But the road ahead -- the road to full employment in the truest sense - will be one of great challenges. Not just for the comfortable in America, but most especially for those who have not yet made it in our expanding economy. The road to full employment -- at a GNP growth rate of three percent a year -- with ever-greater levels of productivity and material well-being for our people -- is a worthy goal. So today I'm going to suggest three steps toward truly Full employment. In the first place, we need to get serious about public education. Imagine a company with nearly three million employees whose job is to produce human widgets. It processes over 45 million widgets a year. While it takes twelve years to produce the final product, 700,000 widgets drop off of the assembly line before they are done. Another 700,000 each year don't meet the customer specifications, and never make it into the market place. Imagine that over the years this company has produced increasingly rigid, hollow widgets -- when every market survey called for flexible widgets. Finally, imagine that this company's widgets ranked among the lowest on all international comparisons of durability, shelf-life, warranty and functional suitability. It does not take a Harvard MBA to figure out how long this company will stay in business. Unless, of course, the company is our school system. And the widgets are our 45 million elementary and secondary school students. And the investors and 02. 08. 89 12:39PM *LABOR SECRETARY DOLE P07 shareholders who pour $170 billion a year into this enterprise are the American taxpayers. Despite recent, hopeful trends that the skill level of workers is increasing, the cold hard truth is that our educational system is still sorely inadequate. If this doesn't change soon, the stockholders -- the American people -- may well have to liquidate the company and start over. But something can be done about it. New partnerships between business and schools and labor and schools are springing up all over the country. The Toledo School District, for example, in partnership with the American Federation of Teachers, has been up-grading the professionalism of teachers by requiring that teachers educate other teachers. Instructors have a controlling voice in establishing teaching standards and training and screening new applicants. And for the past several years, teachers in Seattle have had an active employee involvement program negotiated with the local National Education Association to provide innovative curricula and special teacher projects. No industry in this country is more dependent on a committed workforce for its success than education. A sustained and long- term commitment to a more cooperative and productive relationship between teachers, principals, local school boards -- together with local business - can enhance the quality of the American workforce, improve productivity, and contribute to keeping us on full course toward full employment. The second step toward full employment is for business to invest in the education, training, and retraining of its own people. The world isn't what it used to be. Free market ideas are taking hold around the world -- Europe, Africa, the Pacific Rim. even communist nations seem affected. China is in transition. Possibly even the Soviet Union. It wasn't long ago that Americans didn't need to worry about competition. But with the deregulation of our internal markets and the rise of foreign producers -- all that has changed. Just look around. The results are more goods and lower prices. We are also in the midst of technological revolution: the explosion of communication and information, of changes in materials and genetics and computers and artificial intelligence. We stand to benefit immeasurably from these advances in ways that make the industrial revolution pale by comparison. However, this is the age of portable technology and portable capital. Ideas and money can move around the world in minutes, if not seconds. No nation any longer has a monopoly on invention. So we must compete for that too. 02. 08. 89 12:39PM *LABOR SECRETARY DOLE P08 If we hope to compete along these broader dimensions, everyone holding a job in this country must be as well-prepared and as highly-skilled as possible. That means retraining -- on before. an order of magnitude and intensity that we've never known Continuing education and retraining opportunities must become a reality through a joint commitment between labor, management, educators, families, individuals, and public policy makers from all levels of government. The third step toward full employment is to develop more effective partnerships between managers and workers. The old antagonistic approach no longer works. We need new methods for a new age. For too long, the American workplace has been organized not around principles of teamwork, but hierarchy. We've seen reams of management books and articles in the last ten years. If they've taught us anything, it is that the best-run companies in America are those which involve their employees in every aspect of their business -- including strategic decisionmaking. The worst-run companies are those that treat parts. their employees like interchangeable -- or worse, expendable - Fortunately, a number of businesses on the cutting edge, including several of the large automobile manufacturers, are forging new kinds of partnerships with their employees. The enterprise is being viewed as a partnership between management and workers -- where each is a stakeholder and a trustee. And what we see -- and will see more of in the future -- are personnel systems which engender motivation and commitment -- by involving workers in management and rewarding them with innovative profit sharing arrangements. I have seen that future here in Michigan -- and it works. Giving employees a share in their business will guarantee that business will get a share of the world markets of tomorrow. The road ahead can bring us full employment. The increasingly tight labor market we're already feeling can be a source of unprecedented opportunity. The message of the 1990s is potentially the most positive this nation has ever known: - that everyone who wants a good job can and will be educated and prepared to have a good job; 02. 08. 89 12:39PM *LABOR SECRETARY DOLE PO9 - that workers can and must be continually re-trained as the demands of work change; and -- that managers and workers can and will build momentum through interests held in common, rather than through controversy. These three steps can take us a long way down the road to meaningful, full employment for all Americans. Two final thoughts: To anyone who suggests that America is somehow headed for decline, I have one answer: expansions and economic growth don't die of old age, but from bad policies. And to anyone who believes that our future is uncertain and intangible, I have one suggestion: look at the children who started first grade this month. They are our future. They will be the graduating class of the year 2000. If we do well by them, there is nothing they can't accomplish. Thank you. God Bless you. The high school graduating class of Hee year 2000 is already grade. Tell. me? ARE there hids hapway through the first need to /sod pooductor lors in being taught The shills they will the 21ST century? U.S. Department of Labor Bureau of Labor Statistics 441 G Street, N.W. DEPERTMENT Washington, D.C. 20212 CHITED STATES OF AMERICAN In accordance with your request, enclosed are tables presenting our latest comparative labor force statistics for the United States, Canada, Australia, Japan, and six European nations. Unless otherwise noted, the data are adjusted to U.S. concepts. The tables update and revise previously published data. Major revisions are included for Germany and the Netherlands. Data for Germany for 1987 onward reflect the incorporation of employment statistics based on their 1987 Population Census, which indicated the level of employment was about one million higher than previously estimated. The impact of this change was to lower the adjusted unemployment rate by 0.4 percentage point. When historical data benchmarked to the 1987 Population Census become available from the German Federal Statistical Office, the Bureau will revise its comparative measures for earlier years. Until that time, there will be a break in series at 1987 for Germany. For the Netherlands, the historical comparative labor force statistics have been revised back to 1973. The Dutch labor force survey was revamped in 1987. The new survey revealed a large increase in the number of persons employed, particularly those working less than 20 hours a week. These persons, many of whom are students and housewives, had not been enumerated in earlier surveys or quarterly statistics of employed persons. The new survey also reported a sharp increase in the unemployed looking for part-time work and fewer unemployed seeking full-time work. The Bureau has benchmarked the historical data to the new survey estimates of employment and unemployment. The impact of this revision was to raise employment by 10 percent and unemployment by 7 percent and to lower the adjusted unemployment rate by 0.2 percentage point for 1973 to 1985. Sincerely, Edwin R. Dear EDWIN R. DEAN Acting Associate Commissioner for Productivity and Technology Enclosure COMPARATIVE LABOR FORCE STATISTICS FOR TEN COUNTRIES, 1959-1988 Prepared by: U.S. Department of Labor Bureau of Labor Statistics October 1989 CONTENTS Page Contents 1 General Notes 2 Tables 1. Civilian Working Age Population, 1959-1988 3 2. Labor Force, Employment, and Unemployment, 1959-1988 4 3. Quarterly Unemployment Rates, Seasonally Adjusted, 1984-1989 16 4. Labor Force Participation Rates by Sex, 1960-1988 18 5. Employment-Population Ratios by Sex, 1959-1988 25 6. Civilian Employment by Economic Sector, 1960-1988 30 7. Percent Distribution of Civilian Employment by Economic Sector, 1960-1988 35 8. Civilian Unemployment Rates by Sex, 1960-1988 39 9. Civilian Unemployment Rates by Age, 1984-1988 41 10. BLS, OECD, and EUROSTAT Comparative Unemployment Rates, 1984-1988 42 1 GENERAL NOTES This document presents selected international labor force statistics for 10 countries -- the United States, Canada, Australia, Japan, and 6 European countries. Data for all 10 countries are shown on most tables. (Tables 3 and 9 exclude the Netherlands, and Table 10 relates to only 5 countries.) Unless otherwise noted, the data are adjusted to U.S. concepts. This compendium is updated twice each year, usually in May and September. BREAKS IN SERIES: There are breaks in the data series for Germany (1983, 1987), Italy (1986), the Netherlands (1983), and Sweden (1987). For both Germany and the Netherlands, the 1983 breaks reflect the replacement of labor force survey results tabulated by the na- tional statistical offices with those tabulated by the European Community Statistical Office, EUROSTAT. The Dutch figures for 1983 onward also reflect the replacement of man- year employment data with data from the Dutch Survey of Employed Persons. The impact of the changes was to lower the adjusted unemployment rate by 0.3 percentage point for Germany and about 2 percentage points for the Netherlands. The 1987 break for Germany reflects the incorporation of employment statistics based on their 1987 Population Census which in- dicated that the level of employment was about one million higher than previously estimat- ed. The impact of this change was to lower the adjusted unemployment rate by 0.4 percent- age point. When historical data benchmarked to the 1987 Census become available, BLS will revise its comparative measures for Germany. For Italy, the break in series reflects a change in the survey questionnaire resulting in a significant increase in the number of people reported as seeking work in the past 30 days. The impact was to increase the Ital- ian unemployment rates approximating U.S. concepts by 1.2 percentage points. Sweden introduced a new questionnaire. Questions regarding current availability were added and the period of active workseeking was reduced from 60 days to 4 weeks. These changes re- sulted in lowering Sweden's unemployment rate by 0.5 percentage point. For Australia, data have been revised to incorporate results from the 1986 Census of Population from 1984 onward. OTHER COMPARATIVE SERIES: Three organizations compile internationally "comparable" series of unemployment rates for groups of developed countries. The BLS series, shown in this supplement, provides unemployment rates adjusted to U.S. concepts, insofar as possible. The Paris-based Organization for Economic Cooperation and Development (OECD) publishes "Standardized Unemployment Rates" (SURS) for 15 member countries (see OECD, Quarterly Labor Force Statistics, Appendix Section). The SURS are adjusted to International Labour Office (ILO) concepts which are more general than U.S. concepts. The third organization, the Statistical Office of the European Communities (EUROSTAT), publishes comparable unemployment rates for European Community countries based on their own specific interpretation of ILO concepts. These concepts are close to U.S. concepts, but there are some differences. Table 10 compares the unemployment rates published by these three organizations. FOR FURTHER INFORMATION SEE: (1) Joyanna Moy, "An Analysis of Unemployment and Other Labor Market Indicators in 10 Countries," Monthly Labor Review, April 1988, pp. 39-50; and (2) Constance Sorrentino, "The Uses of the European Community Labor Force Surveys for International Unemployment Comparisons, paper prepared for the Statistical Office of the European Communities, October 1987. (Copies available from the Bureau of Labor Statistics upon request. Call 202-523-9301.) 2 Table 1. Civilian Working Age Population, 1959-1988 United Nether- United Year States Canada Australia Japan France Germany Italy lands Sweden Kingdom Civilian Working Age Population (1) (thousands) 1959 115,329 11,278 NA 64,030 30,982 43,103 36,754 NA 5,458 38,614 1960 117,245 11,494 NA 64,990 31,144 43,468 37,130 NA 5,514 38,952 1961 118,771 11,708 NA 65,820 31,467 43,647 37,358 NA 5,577 39,287 1962 120,153 11,940 NA 67,330 32,305 43,972 37,815 NA 5,643 39,804 1963 122,416 12,179 NA 69,170 33,196 44,232 38,083 NA 5,703 40,036 1964 124,485 12,453 7,668 71,000 33,707 44,525 38,515 NA 5,769 40,281 1965 126,513 12,755 7,830 72,650 34,261 44,909 38,724 NA 5,840 40,481 1966 128,058 13,083 8,023 74,090 34,615 45,174 39,276 NA 5,909 40,631 1967 129,874 13,444 8,208 75,340 34,947 45,111 39,456 NA 5,955 40,779 1968 132,028 13,805 8,403 76,550 35,372 45,163 39,833 NA 5,991 40,874 1969 134,335 14,162 8,612 77,580 35,753 45,570 39,781 NA 6,039 41,006 1970 137,085 14,528 8,819 78,610 36,166 46,094 40,279 NA 6,106 41,101 1971 140,216 14,872 9,036 79,560 36,598 46,687 40,385 NA 6,158 41,320 1972 144,126 15,186 9,238 80,470 36,987 47,100 40,780 NA 6,179 41,452 1973 147,096 15,526 9,425 82,150 37,366 47,594 41,186 9,750 6,199 40,799 1974 150,120 15,924 9,614 83,170 37,745 47,904 41,745 9,885 6,224 40,951 1975 153,153 16,323 9,763 84,190 38,079 48,018 42,131 9,803 6,257 41,119 1976 156,150 16,701 9,957 85,160 38,366 48,128 42,312 9,960 6,287 41,312 1977 159,033 17,051 10,136 86,070 38,743 48,418 42,529 10,103 6,321 41,557 1978 161,910 17,377 10,406 87,020 39,073 48,788 43,000 10,256 6,360 41,821 1979 164,863 17,702 10,575 88,000 39,431 49,255 43,436 10,415 6,396 42,115 1980 167,745 18,053 10,778 89,080 39,852 49,849 43,860 10,588 6,441 42,443 1981 170,130 18,368 10,994 89,930 40,181 50,344 44,184 10,744 6,479 42,733 1982 172,271 18,608 11,204 90,920 40,577 50,714 44,847 10,871 6,514 42,938 1983 174,215 18,805 11,401 92,080 40,882 50,928 45,457 10,996 6,553 43,191 1984 176,383 18,996 11,605 93,230 41,176 51,113 45,853 11,131 6,586 43,491 1985 178,206 19,190 11,852 94,410 41,501 51,262 46,174 11,271 6,606 43,735 1986 180,587 19,397 12,084 95,630 41,764 51,468 46,252 11,403 6,634 43,982 1987 182,753 19,642 12,315 96,960 42,159 51,598 46,327 11,531 6,661 44,200 1988 184,613 19,890 12,594 98,250 42,406 51,721 46,786 11,631 6,684 44,433 NA = Not available. (1) Data relate to the civilian noninstitutionalized working age population, except that the institution- alized working age population is included in Japan and Germany. Working age is defined as 16-year-olds and over in the United States, France, and Sweden; 15-year-olds and over in Australia, Canada, Germany, and Japan; and 14-year-olds and over in Italy. The lower age limit was raised from 15 to 16 in 1973 in the United Kingdom and from 14 to 15 in 1975 for the Netherlands. 3 Table 2. Labor Force, Employment, and Unemployment, 1959-1988 United Nether- United Year States Canada Australia Japan France Germany Italy lands Sweden Kingdom (1) Total Labor Force (thousands) Approximating U.S. concepts 1959 70,157 6,406 NA 43,530 19,510 26,080 21,450 NA (2)3,655 24,450 1960 71,489 6,581 NA 44,330 19,590 26,280 21,190 NA (2)3,715 24,650 1961 72,359 6,696 NA 44,820 19,590 26,500 21,230 NA 3,741 24,850 1962 72,675 6,796 NA 45,260 19,650 26,610 21,080 NA 3,764 25,160 1963 73,839 6,928 NA 45,640 19,870 26,710 20,640 NA 3,771 25,370 1964 75,109 7,113 4,611 46,260 20,100 26,730 20,630 NA 3,768 25,490 1965 76,401 7,319 4,745 47,000 20,240 26,830 20,290 NA 3,792 25,660 1966 77,892 7,599 4,930 48,080 20,450 26,770 20,010 NA 3,842 25,740 1967 79,565 7,853 5,099 49,040 20,660 26,220 20,190 NA 3,820 25,710 1968 80,990 8,051 5,221 49,920 20,770 26,170 20,210 NA 3,867 25,580 1969 82,972 8,291 5,368 50,380 21,050 26,440 20,050 NA 3,895 25,540 1970 84,889 8,487 5,562 50,970 21,380 26,740 20,100 NA 3,953 25,480 1971 86,355 8,727 5,707 51,350 21,570 26,920 20,080 NA 4,000 25,320 1972 88,847 8,981 5,833 51,550 21,720 26,870 19,840 NA 4,008 25,560 1973 91,203 9,358 5,974 52,820 22,000 27,050 19,980 5,310 4,012 25,800 1974 93,670 9,720 6,121 52,680 22,240 26,930 20,250 5,390 4,077 25,820 1975 95,453 10,054 6,238 52,770 22,340 26,650 20,430 5,430 4,161 26,070 1976 97,826 10,277 6,313 53,340 22,590 26,430 20,660 5,490 4,184 26,240 1977 100,665 10,574 6,428 54,060 22,900 26,400 20,910 5,570 4,204 26,380 1978 103,882 10,970 6,513 54,850 23,060 26,530 20,940 5,630 4,240 26,580 1979 106,559 11,305 6,589 55,450 23,240 26,780 21,240 5,740 4,300 26,660 1980 108,544 11,646 6,765 55,980 23,370 27,050 21,530 5,970 4,348 26,840 1981 110,315 11,973 6,882 56,560 23,530 27,180 21,700 6,190 4,364 26,920 1982 111,872 12,001 6,983 57,220 23,740 27,230 21,790 6,250 4,389 26,880P 1983 113,226 12,185 7,068 58,350 23,710 (3)27,190 21,940 (3)6,270 4,409 26,910P 1984 115,241 12,391 7,206 58,720 23,860 27,280 22,070 6,360 4,426 27,340P 1985 117,167 12,609 7,371 59,060 23,920 27,500 22,200 6,380 4,460 27,530P 1986 119,540 12,823 7,658 59,650 24,000 27,620 (3)22,710 6,470 4,484 27,700P 1987 121,602 13,090 7,828 60,290 24,090 (3)28,890P 22,760 6,590P (3)4,519 28,020P 1988 123,378 13,353 8,044 61,100 24,140 29,080P 23,100P 6,660P 4,565 28,270P Continued on the following page. 4 Table 2. Labor Force, Employment, and Unemployment, 1959-1988--Continued United Nether- United Year States Canada Australia Japan France Germany Italy lands Sweden Kingdom (4) (1) Civilian Labor Force (thousands) Approximating U.S. concepts 1959 68,369 6,286 NA 43,320 18,480 25,850 21,020 NA (2)3,609 23,880 1960 69,628 6,462 NA 44,120 18,520 25,990 20,820 NA (2)3,669 24,130 1961 70,459 6,575 NA 44,610 18,530 26,160 20,830 NA 3,695 24,380 1962 70,614 6,670 NA 45,040 18,720 26,210 20,680 NA 3,718 24,720 1963 71,833 6,805 NA 45,430 19,100 26,290 20,240 NA 3,725 24,940 1964 73,091 6,994 4,559 46,040 19,430 26,270 20,220 NA 3,720 25,070 1965 74,455 7,207 4,689 46,780 19,650 26,360 19,900 NA 3,744 25,240 1966 75,770 7,493 4,862 47,850 19,850 26,290 19,620 NA 3,795 25,320 1967 77,347 7,747 5,022 48,810 20,070 25,730 19,800 NA 3,773 25,290 1968 78,737 7,951 5,140 49,690 20,190 25,690 19,780 NA 3,822 25,180 1969 80,734 8,194 5,284 50,140 20,470 25,960 19,620 NA 3,851 25,160 1970 82,771 8,395 5,478 50,730 20,800 26,240 19,720 NA 3,909 25,110 1971 84,382 8,639 5,624 51,120 21,000 26,420 19,660 NA 3,955 24,950 1972 87,034 8,897 5,752 51,320 21,150 26,340 19,450 NA 3,963 25,190 1973 89,429 9,276 5,901 52,590 21,430 26,540 19,590 5,200 3,971 25,440 1974 91,949 9,639 6,053 52,440 21,660 26,400 19,900 5,280 4,036 25,470 1975 93,775 9,974 6,169 52,530 21,750 26,130 20,090 5,330 4,123 25,730 1976 96,158 10,203 6,244 53,100 22,000 25,900 20,290 5,390 4,148 25,900 1977 99,009 10,500 6,358 53,820 22,310 25,870 20,510 5,470 4,168 26,050 1978 102,251 10,895 6,443 54,610 22,460 26,000 20,570 5,530 4,203 26,260 1979 104,962 11,231 6,519 55,210 22,660 26,250 20,850 5,630 4,262 26,350 1980 106,940 11,573 6,693 55,740 22,800 26,520 21,120 5,860 4,312 26,520 1981 108,670 11,899 6,810 56,320 22,950 26,650 21,320 6,080 4,327 26,590 1982 110,204 11,926 6,910 56,980 23,160 26,700 21,410 6,140 4,350 26,720P 1983 111,550 12,109 6,997 58,110 23,140 (3)26,650 21,590 (3)6,170 4,369 26,750P 1984 113,544 12,316 7,135 58,480 23,300 26,760 21,670 6,260 4,385 27,170P 1985 115,461 12,532 7,300 58,820 23,360 26,970 21,800 6,280 4,418 27,370P 1986 117,834 12,746 7,588 59,410 23,440 27,090 (3)22,290 6,370 4,443 27,540P 1987 119,865 13,011 7,758 60,050 23,540 (3)28,360P 22,350 6,490P (3)4,480 27,860P 1988 121,669 13,275 7,974 60,860 23,580 28,550P 22,660P 6,560P 4,530 28,110P Continued on the following page. 5 Table 2. Labor Force, Employment, and Unemployment, 1959-1988--Continued United Nether- United Year States Canada Australia Japan France Germany Italy lands Sweden Kingdom (1) (4) (1) Labor Force (thousands) As published (5) 1959 70,157 6,242 NA 44,330 18,883 26,337 21,879 4,144 (2)3,603 23,745 1960 71,489 6,411 NA 45,110 18,887 26,518 21,545 4,192 (2)3,662 24,072 1961 72,359 6,521 NA 45,620 18,870 26,772 21,535 4,235 3,688 24,351 1962 72,675 6,615 NA 46,140 19,024 26,845 21,306 4,319 3,712 24,628 1963 73,839 6,748 NA 46,520 19,377 26,930 20,852 4,381 3,720 24,767 1964 75,109 6,933 4,559 47,100 19,664 26,922 20,870 4,467 3,718 24,953 1965 76,401 7,141 4,689 47,870 19,857 27,034 20,612 4,512 3,742 25,139 1966 77,892 7,493 4,862 48,910 20,014 26,962 20,367 4,555 3,792 25,237 1967 79,565 7,747 5,022 49,830 20,198 26,409 20,507 4,580 3,775 25,105 1968 80,990 7,951 5,140 50,610 20,286 26,291 20,555 4,620 3,822 25,022 1969 82,972 8,194 5,284 50,980 20,525 26,535 20,369 4,670 3,855 25,028 1970 84,889 8,395 5,478 51,530 20,857 26,817 20,436 4,725 3,913 25,001 1971 86,355 8,639 5,624 51,860 21,024 27,002 20,404 4,762 3,961 24,747 1972 88,847 8,897 5,752 51,990 21,182 26,990 20,293 4,781 3,970 24,991 1973 91,203 9,276 5,901 53,260 21,456 27,195 20,490 4,780 3,977 25,272 1974 93,670 9,639 6,053 53,100 21,690 27,147 20,714 4,807 4,043 25,360 1975 95,453 9,974 6,169 53,230 21,764 26,884 20,946 4,900 4,129 25,536 1976 97,826 10,203 6,244 53,780 22,013 26,651 21,285 4,932 4,155 25,687 1977 100,665 10,500 6,358 54,520 22,322 26,577 21,607 4,972 4,174 25,796 1978 103,882 10,895 6,443 55,320 22,463 26,692 21,730 5,030 4,209 25,993 1979 106,559 11,231 6,519 55,960 22,666 26,923 22,075 5,101 4,268 26,235 1980 108,544 11,573 6,693 56,500 22,800 27,217 22,372 5,299 4,318 26,283 1981 110,315 11,899 6,810 57,070 22,953 27,416 22,665 5,485 4,332 26,235 1982 111,872 11,926 6,910 57,740 23,163 27,542 (3)22,416 5,654 4,356 26,098 1983 113,226 12,109 6,997 58,890 23,142 27,589 22,697 5,639 4,375 26,222 1984 115,241 12,316 7,135 59,270 23,304 27,629 22,933 5,669 4,391 26,760 1985 117,167 12,532 7,300 59,630 23,357 27,844 23,117 5,710 4,424 27,239 1986 119,540 12,746 7,588 60,200 23,444 28,032 23,467 5,740 4,386 27,446 1987 121,602 13,011 7,758 60,840 23,542 (3)29,361 23,669 NA (3)4,421 27,576 1988 123,378 13,275 7,974 61,660 23,587 29,534 23,988 NA 4,471 28,501 Continued on the following page. 6 Table 2. Labor Force, Employment, and Unemployment, 1959-1988--Continued United Nether- United Year States Canada Australia Japan France Germany Italy lands Sweden Kingdom (1) Total Employment (thousands) Approximating U.S. concepts 1959 66,418 6,056 NA 42,550 19,220 25,570 20,450 NA (2)3,595 23,790 1960 67,639 6,161 NA 43,580 19,320 26,000 20,430 NA (2)3,652 24,120 1961 67,646 6,257 NA 44,160 19,360 26,340 20,560 NA 3,686 24,370 1962 68,763 6,428 NA 44,670 19,380 26,460 20,500 NA 3,709 24,490 1963 69,768 6,577 NA 45,050 19,570 26,590 20,160 NA 3,709 24,550 1964 71,323 6,807 4,548 45,720 19,860 26,630 20,090 NA 3,710 24,870 1965 73,034 7,056 4,684 46,430 19,930 26,770 19,600 NA 3,748 25,120 1966 75,017 7,348 4,853 47,430 20,130 26,700 19,280 NA 3,783 25,180 1967 76,590 7,557 5,005 48,410 20,240 25,880 19,520 NA 3,740 24,890 1968 78,173 7,693 5,127 49,330 20,220 25,880 19,510 NA 3,782 24,770 1969 80,140 7,929 5,272 49,810 20,570 26,270 19,370 NA 3,822 24,770 1970 80,796 8,011 5,472 50,380 20,850 26,600 19,460 NA 3,894 24,700 1971 81,340 8,192 5,600 50,710 20,990 26,760 19,440 NA 3,899 24,340 1972 83,966 8,428 5,682 50,820 21,110 26,680 19,100 NA 3,901 24,490 1973 86,838 8,843 5,838 52,140 21,410 26,860 19,260 5,150 3,914 24,970 1974 88,515 9,206 5,959 51,950 21,610 26,510 19,630 5,200 3,997 25,030 1975 87,524 9,364 5,935 51,770 21,440 25,760 19,740 5,160 4,094 24,900 1976 90,420 9,551 6,015 52,260 21,590 25,540 19,870 5,200 4,118 24,700 1977 93,673 9,725 6,070 52,960 21,770 25,500 20,070 5,300 4,129 24,730 1978 97,679 10,062 6,108 53,610 21,860 25,660 20,090 5,350 4,146 24,930 1979 100,421 10,469 6,181 54,280 21,880 26,000 20,320 5,450 4,212 25,250 1980 100,907 10,781 6,356 54,840 21,900 26,280 20,610 5,620 4,262 24,990 1981 102,042 11,075 6,488 55,300 21,780 26,090 20,660 5,650 4,256 24,130 1982 101,194 10,693 6,488 55,860 21,820 25,670 20,630 5,620 4,252 23,880P 1983 102,510 10,751 6,371 56,790 21,740 (3)25,290 20,670 (3)5,510 4,258 23,770P 1984 106,702 11,007 6,565 57,110 21,540 25,310 20,790 5,590 4,290 24,150P 1985 108,856 11,298 6,768 57,500 21,480 25,490 20,890 5,740 4,335 24,470P 1986 111,303 11,608 7,044 57,980 21,510 25,760 (3)21,030 5,830 4,367 24,620P 1987 114,177 11,940 7,199 58,560 21,560 (3)27,080P 21,010 5,940P (3)4,435 25,170P 1988 116,677 12,322 7,468 59,550 21,700 27,260P 21,310P 6,000P 4,493 25,940P Continued on the following page. 7 Table 2. Labor Force, Employment, and Unemployment, 1959-1988--Continued United Nether- United Year States Canada Australia Japan France Germany Italy lands Sweden Kingdom (4) (1) Civilian Employment (thousands) Approximating U.S. concepts 1959 64,630 5,936 NA 42,340 18,190 25,340 20,020 NA (2)3,549 23,220 1960 65,778 6,042 NA 43,370 18,250 25,710 20,060 NA (2)3,606 23,600 1961 65,746 6,136 NA 43,950 18,300 26,000 20,160 NA 3,640 23,900 1962 66,702 6,302 NA 44,450 18,450 26,060 20,100 NA 3,663 24,050 1963 67,762 6,454 NA 44,840 18,800 26,170 19,760 NA 3,663 24,120 1964 69,305 6,688 4,496 45,500 19,190 26,170 19,680 NA 3,662 24,450 1965 71,088 6,944 4,628 46,210 19,340 26,290 19,210 NA 3,700 24,700 1966 72,895 7,242 4,785 47,200 19,530 26,220 18,890 NA 3,736 24,760 1967 74,372 7,451 4,928 48,180 19,650 25,390 19,130 NA 3,693 24,470 1968 75,920 7,593 5,046 49,100 19,640 25,400 19,080 NA 3,737 24,370 1969 77,902 7,832 5,188 49,570 19,990 25,790 18,940 NA 3,778 24,390 1970 78,678 7,919 5,388 50,140 20,270 26,100 19,080 NA 3,850 24,330 1971 79,367 8,104 5,517 50,480 20,420 26,260 19,020 NA 3,854 23,970 1972 82,153 8,344 5,601 50,590 20,540 26,150 18,710 NA 3,856 24,120 1973 85,064 8,761 5,765 51,910 20,840 26,350 18,870 5,040 3,873 24,610 1974 86,794 9,125 5,891 51,710 21,030 25,980 19,280 5,090 3,956 24,680 1975 85,846 9,284 5,866 51,530 20,850 25,240 19,400 5,060 4,056 24,560 1976 88,752 9,477 5,946 52,020 21,000 25,010 19,500 5,100 4,082 24,360 1977 92,017 9,651 6,000 52,720 21,180 24,970 19,670 5,200 4,093 24,400 1978 96,048 9,987 6,038 53,370 21,260 25,130 19,720 5,250 4,109 24,610 1979 98,824 10,395 6,111 54,040 21,300 25,470 19,930 5,340 4,174 24,940 1980 99,303 10,708 6,284 54,600 21,330 25,750 20,200 5,510 4,226 24,670 1981 100,397 11,001 6,416 55,060 21,200 25,560 20,280 5,540 4,219 23,800 1982 99,526 10,618 6,415 55,620 21,240 25,140 20,250 5,510 4,213 23,720P 1983 100,834 10,675 6,300 56,550 21,170 (3)24,750 20,320 (3)5,410 4,218 23,610P 1984 105,005 10,932 6,494 56,870 20,980 24,790 20,390 5,490 4,249 23,990P 1985 107,150 11,221 6,697 57,260 20,920 24,960 20,490 5,640 4,293 24,310P 1986 109,597 11,531 6,974 57,740 20,950 25,230 (3)20,610 5,730 4,326 24,460P 1987 112,440 11,861 7,129 58,320 21,010 (3)26,550P 20,590 5,840P (3)4,396 25,010P 1988 114,968 12,244 7,398 59,310 21,140 26,730P 20,870P 5,900P 4,458 25,780P Continued on the following page. 8 Table 2. Labor Force, Employment, and Unemployment, 1959-1988--Continued United Nether- United Year States Canada Australia Japan France Germany Italy lands Sweden Kingdom (1) (4) (1) Employment (thousands) As published (5) 1959 66,418 5,870 NA 43,350 18,584 25,797 20,349 4,092 (2)3,543 23,315 1960 67,639 5,965 NA 44,360 18,611 26,247 20,330 4,162 (2)3,599 23,711 1961 67,646 6,055 NA 44,980 18,629 26,591 20,427 4,213 3,633 24,011 1962 68,763 6,225 NA 45,560 18,748 26,690 20,337 4,297 3,657 24,156 1963 69,768 6,375 NA 45,950 19,066 26,744 20,045 4,356 3,659 24,226 1964 71,323 6,609 4,496 46,550 19,413 26,753 19,966 4,445 3,660 24,570 1965 73,034 6,862 4,628 47,300 19,541 26,887 19,502 4,487 3,698 24,800 1966 75,017 7,242 4,785 48,270 19,688 26,801 19,175 4,519 3,733 24,869 1967 76,590 7,451 4,928 49,200 19,762 25,950 19,401 4,505 3,695 24,548 1968 78,173 7,593 5,046 50,020 19,732 25,968 19,383 4,552 3,737 24,447 1969 80,140 7,832 5,188 50,400 20,041 26,356 19,209 4,621 3,782 24,453 1970 80,796 7,919 5,388 50,940 20,327 26,668 19,325 4,679 3,854 24,389 1971 81,340 8,104 5,517 51,210 20,439 26,817 19,295 4,700 3,860 24,038 1972 83,966 8,344 5,601 51,260 20,571 26,744 18,996 4,673 3,862 24,204 1973 86,838 8,761 5,765 52,590 20,863 26,922 19,185 4,670 3,879 24,717 1974 88,515 9,125 5,891 52,370 21,058 26,565 19,601 4,672 3,962 24,801 1975 87,524 9,284 5,866 52,230 20,863 25,810 19,716 4,640 4,062 24,665 1976 90,420 9,477 5,946 52,710 21,016 25,591 19,859 4,654 4,088 24,494 1977 93,673 9,651 6,000 53,420 21,188 25,547 20,062 4,701 4,099 24,525 1978 97,679 9,987 6,038 54,080 21,262 25,699 20,159 4,757 4,115 24,740 1979 100,421 10,395 6,111 54,790 21,305 26,047 20,377 4,821 4,180 25,062 1980 100,907 10,708 6,284 55,360 21,333 26,328 20,674 4,973 4,232 24,796 1981 102,042 11,001 6,416 55,810 21,203 26,144 20,752 5,005 4,225 23,928 1982 101,194 10,618 6,415 56,380 21,240 25,709 (3)20,493 4,999 4,219 23,472 1983 102,510 10,675 6,300 57,330 21,168 25,331 20,557 4,965 4,224 23,356 1984 106,702 10,932 6,494 57,660 20,981 25,363 20,629 4,980 4,255 23,761 1985 108,856 11,221 6,697 58,070 20,915 25,540 20,735 5,076 4,299 24,145 1986 111,303 11,531 6,974 58,530 20,955 25,804 20,856 5,135 4,269 24,266 1987 114,177 11,861 7,129 59,110 21,010 (3)27,132 20,836 NA (3)4,337 24,706 1988 116,677 12,244 7,398 60,110 21,144 27,301 21,103 NA 4,399 26,207 Continued on the following page. 9 Table 2. Labor Force, Employment, and Unemployment, 1959-1988--Continued United Nether- United Year States Canada Australia Japan France Germany Italy lands Sweden Kingdom (1) (4) (1) Unemployment (thousands) Approximating U.S. concepts 1959 3,740 350 NA 980 290 510 1,000 NA (2)60 660 1960 3,852 420 NA 750 270 280 760 NA (2)63 530 1961 4,714 439 NA 660 230 160 670 NA 55 480 1962 3,911 368 NA 590 270 150 580 NA 55 670 1963 4,070 351 NA 590 300 120 480 NA 62 830 1964 3,786 306 63 540 240 100 540 NA 58 620 1965 3,366 263 61 570 310 70 690 NA 44 540 1966 2,875 251 76 650 320 70 730 NA 59 570 1967 2,975 296 94 630 420 340 670 NA 80 830 1968 2,817 358 94 590 550 290 700 NA 85 810 1969 2,832 362 96 570 480 170 680 NA 73 770 1970 4,093 476 91 590 530 140 640 NA 59 770 1971 5,016 535 107 640 580 160 640 NA 101 980 1972 4,882 553 150 730 610 190 740 NA 107 1,070 1973 4,365 515 136 680 590 190 720 160 98 820 1974 5,156 514 162 730 630 420 620 190 80 790 1975 7,929 690 302 1,000 900 890 690 270 67 1,180 1976 7,406 726 298 1,080 1,000 890 790 290 66 1,540 1977 6,991 849 358 1,100 1,130 900 840 270 75 1,660 1978 6,202 908 405 1,240 1,200 870 850 280 94 1,650 1979 6,137 836 408 1,170 1,360 780 920 290 88 1,420 1980 7,637 865 409 1,140 1,470 770 920 350 86 1,850 1981 8,273 898 394 1,260 1,750 1,090 1,040 540 108 2,790 1982 10,678 1,308 495 1,360 1,920 1,560 1,160 630 137 3,000P 1983 10,717 1,434 697 1,560 1,970 (3)1,900 1,270 (3)760 151 3,140P 1984 8,539 1,384 641 1,610 2,320 1,970 1,280 770 136 3,180P 1985 8,312 1,311 603 1,560 2,440 2,010 1,310 640 125 3,060P 1986 8,237 1,215 613 1,670 2,490 1,860 (3)1,680 640 117 3,080P 1987 7,425 1,150 629 1,730 2,530 1,810P 1,760 650P (3)84 2,850P 1988 6,701 1,031 576 1,550 2,440 1,820P 1,790P 660P 72 2,330P Continued on the following page. 10 Table 2. Labor Force, Employment, and Unemployment, 1959-1988--Continued United Nether- United Year States Canada Australia Japan France Germany Italy lands Sweden Kingdom (1) (4) (1) Unemployment (thousands) As published (6) 1959 3,740 372 NA 980 299 540 1,530 49 (2)60 430 1960 3,852 446 NA 750 276 271 1,215 29 (2)63 361 1961 4,714 466 NA 660 241 181 1,108 21 55 340 1962 3,911 390 NA 590 276 154 969 21 55 472 1963 4,070 374 NA 590 311 186 807 24 62 541 1964 3,786 324 63 540 251 169 904 21 58 383 1965 3,366 280 61 570 316 147 1,110 25 44 339 1966 2,875 251 76 650 326 161 1,192 36 59 368 1967 2,975 296 94 630 436 459 1,106 75 80 557 1968 2,817 358 94 590 554 323 1,172 68 85 575 1969 2,832 362 96 570 484 179 1,160 49 73 575 1970 4,093 476 91 590 530 149 1,111 45 59 612 1971 5,016 535 107 640 585 185 1,109 62 101 709 1972 4,882 553 150 730 611 246 1,297 108 107 787 1973 4,365 515 136 680 593 273 1,305 110 98 555 1974 5,156 514 162 730 632 582 1,113 135 80 559 1975 7,929 690 302 1,000 901 1,074 1,230 (3)260 67 871 1976 7,406 726 298 1,080 997 1,060 1,426 278 66 1,193 1977 6,991 849 358 1,100 1,134 1,030 1,545 271 75 1,271 1978 6,202 908 405 1,240 1,201 993 1,571 273 94 1,253 1979 6,137 836 408 1,170 1,361 876 1,698 281 88 1,173 1980 7,637 865 409 1,140 1,467 889 1,698 325 86 1,487 1981 8,273 898 394 1,260 1,750 1,272 1,913 480 108 2,307 1982 10,678 1,308 495 1,360 1,923 1,833 (3)1,923 655 137 2,626 1983 10,717 1,434 697 1,560 1,974 2,258 2,140 801 151 2,866 1984 8,539 1,384 641 1,610 2,323 2,265 2,304 822 136 2,999 1985 8,312 1,311 603 1,560 2,443 2,304 2,381 767 125 3,114 1986 8,237 1,215 613 1,670 2,489 2,228 2,611 711 117 3,180 1987 7,425 1,150 629 1,730 2,532 2,229 2,832 686 (3)84 2,880 1988 6,701 1,031 576 1,550 2,443 2,242 2,885 682 72 2,370 Continued on the following page. 11 Table 2. Labor Force, Employment, and Unemployment, 1959-1988--Continued United Nether- United Year States Canada Australia Japan France Germany Italy lands Sweden Kingdom (1) Unemployment Rate (percent) Approximating U.S. concepts 1959 5.3 5.5 NA 2.3 1.5 2.0 4.7 NA (2)1.6 2.7 1960 5.4 6.4 NA 1.7 1.4 1.1 3.6 NA (2)1.7 2.2 1961 6.5 6.6 NA 1.5 1.2 .6 3.2 NA 1.5 1.9 1962 5.4 5.4 NA 1.3 1.4 .6 2.8 NA 1.5 2.7 1963 5.5 5.1 NA 1.3 1.5 .4 2.3 NA 1.6 3.3 1964 5.0 4.3 1.4 1.2 1.2 .4 2.6 NA 1.5 2.4 1965 4.4 3.6 1.3 1.2 1.5 .3 3.4 NA 1.2 2.1 1966 3.7 3.3 1.6 1.4 1.6 .3 3.6 NA 1.5 2.2 1967 3.7 3.8 1.8 1.3 2.0 1.3 3.3 NA 2.1 3.2 1968 3.5 4.4 1.8 1.2 2.6 1.1 3.5 NA 2.2 3.2 1969 3.4 4.4 1.8 1.1 2.3 .6 3.4 NA 1.9 3.0 1970 4.8 5.6 1.6 1.2 2.5 .5 3.2 NA 1.5 3.0 1971 5.8 6.1 1.9 1.2 2.7 .6 3.2 NA 2.5 3.9 1972 5.5 6.2 2.6 1.4 2.8 .7 3.7 NA 2.7 4.2 1973 4.8 5.5 2.3 1.3 2.7 .7 3.6 3.0 2.4 3.2 1974 5.5 5.3 2.6 1.4 2.8 1.6 3.1 3.5 2.0 3.1 1975 8.3 6.9 4.8 1.9 4.0 3.3 3.4 5.0 1.6 4.5 1976 7.6 7.1 4.7 2.0 4.4 3.4 3.8 5.3 1.6 5.9 1977 6.9 8.0 5.6 2.0 4.9 3.4 4.0 4.8 1.8 6.3 1978 6.0 8.3 6.2 2.3 5.2 3.3 4.1 5.0 2.2 6.2 1979 5.8 7.4 6.2 2.1 5.9 2.9 4.3 5.1 2.0 5.3 1980 7.0 7.4 6.0 2.0 6.3 2.8 4.3 5.9 2.0 6.9 1981 7.5 7.5 5.7 2.2 7.4 4.0 4.8 8.7 2.5 10.4 1982 9.5 10.9 7.1 2.4 8.1 5.7 5.3 10.1 3.1 11.2P 1983 9.5 11.8 9.9 2.7 8.3 (3)7.0 5.8 (3)12.1 3.4 11.7P 1984 7.4 11.2 8.9 2.7 9.7 7.2 5.8 12.1 3.1 11.6P 1985 7.1 10.4 8.2 2.6 10.2 7.3 5.9 10.0 2.8 11.1P 1986 6.9 9.5 8.0 2.8 10.4 6.7 (3)7.4 9.9 2.6 11.2P 1987 6.1 8.8 8.0 2.9 10.5 (3)6.3P 7.7 9.9P (3)1.9 10.2P 1988 5.4 7.7 7.2 2.5 10.1 6.3P 7.8P 9.9P 1.6 8.2P Continued on the following page. 12 Table 2. Labor Force, Employment, and Unemployment, 1959-1988--Continued United Nether- United Year States Canada Australia Japan France Germany Italy lands Sweden Kingdom (4) (1) Civilian Unemployment Rate (percent) Approximating U.S. concepts 1959 5.5 5.6 (7)2.1 2.3 1.6 2.0 4.8 NA (2)1.7 2.8 1960 5.5 6.5 (7)1.6 1.7 1.5 1.1 3.7 NA (2)1.7 2.2 1961 6.7 6.7 (7)3.0 1.5 1.2 .6 3.2 NA 1.5 2.0 1962 5.5 5.5 (7)2.9 1.3 1.4 .6 2.8 NA 1.5 2.7 1963 5.7 5.2 (7)2.3 1.3 1.6 .5 2.4 NA 1.7 3.3 1964 5.2 4.4 1.4 1.2 1.2 .4 2.7 NA 1.6 2.5 1965 4.5 3.6 1.3 1.2 1.6 .3 3.5 NA 1.2 2.1 1966 3.8 3.4 1.6 1.4 1.6 .3 3.7 NA 1.6 2.3 1967 3.8 3.8 1.9 1.3 2.1 1.3 3.4 NA 2.1 3.3 1968 3.6 4.5 1.8 1.2 2.7 1.1 3.5 NA 2.2 3.2 1969 3.5 4.4 1.8 1.1 2.3 .6 3.5 NA 1.9 3.1 1970 4.9 5.7 1.6 1.2 2.5 .5 3.2 NA 1.5 3.1 1971 5.9 6.2 1.9 1.3 2.8 .6 3.3 NA 2.6 3.9 1972 5.6 6.2 2.6 1.4 2.9 .7 3.8 NA 2.7 4.2 1973 4.9 5.5 2.3 1.3 2.8 .7 3.7 3.1 2.5 3.2 1974 5.6 5.3 2.7 1.4 2.9 1.6 3.1 3.6 2.0 3.1 1975 8.5 6.9 4.9 1.9 4.1 3.4 3.4 5.1 1.6 4.6 1976 7.7 7.1 4.8 2.0 4.5 3.4 3.9 5.4 1.6 5.9 1977 7.1 8.1 5.6 2.0 5.1 3.5 4.1 4.9 1.8 6.4 1978 6.1 8.3 6.3 2.3 5.3 3.3 4.1 5.1 2.2 6.3 1979 5.8 7.4 6.3 2.1 6.0 3.0 4.4 5.2 2.1 5.4 1980 7.1 7.5 6.1 2.0 6.4 2.9 4.4 6.0 2.0 7.0 1981 7.6 7.5 5.8 2.2 7.6 4.1 4.9 8.9 2.5 10.5 1982 9.7 11.0 7.2 2.4 8.3 5.8 5.4 10.3 3.1 11.2P 1983 9.6 11.8 10.0 2.7 8.5 (3)7.1 5.9 (3)12.3 3.5 11.7P 1984 7.5 11.2 9.0 2.8 10.0 7.4 5.9 12.3 3.1 11.7P 1985 7.2 10.5 8.3 2.6 10.4 7.5 6.0 10.2 2.8 11.2P 1986 7.0 9.5 8.1 2.8 10.6 6.9 (3)7.5 10.0 2.6 11.2P 1987 6.2 8.8 8.1 2.9 10.8 (3)6.4P 7.9 10.0P (3)1.9 10.2P 1988 5.5 7.8 7.2 2.5 10.4 6.4P 7.9P 10.1P 1.6 8.3P Continued on the following page. 13 Table 2. Labor Force, Employment, and Unemployment, 1959-1988--Continued United Nether- United Year States Canada Australia Japan. France Germany Italy lands Sweden Kingdom (1) (4) (1) Unemployment Rate (percent) As published (8) 1959 5.3 6.0 (7)2.1 2.2 1.6 2.6 7.0 1.5 (2)1.7 2.2 1960 5.4 7.0 (7)1.6 1.7 1.5 1.3 5.6 .9 (2)1.7 1.6 1961 6.5 7.2 (7)3.0 1.4 1.3 .8 5.1 .6 1.5 1.5 1962 5.4 5.9 (7)2.9 1.3 1.5 .7 4.5 .6 1.5 2.0 1963 5.5 5.5 (7)2.3 1.3 1.6 .8 3.9 .7 1.7 2.4 1964 5.0 4.7 1.4 1.1 1.3 .8 4.3 .6 1.6 1.8 1965 4.4 3.9 1.3 1.2 1.6 .7 5.4 .7 1.2 1.5 1966 3.7 3.4 1.6 1.3 1.6 .7 5.9 1.0 1.6 1.5 1967 3.7 3.8 1.9 1.3 2.2 2.1 5.4 2.0 2.1 2.3 1968 3.5 4.5 1.8 1.2 2.7 1.5 5.7 1.8 2.2 2.5 1969 3.4 4.4 1.8 1.1 2.4 .9 5.7 1.3 1.9 2.5 1970 4.8 5.7 1.6 1.1 2.4 .7 5.4 1.1 1.5 2.6 1971 5.8 6.2 1.9 1.2 2.8 .8 5.4 1.6 2.5 3.3 1972 5.5 6.2 2.6 1.4 2.9 1.1 6.4 2.8 2.7 3.7 1973 4.8 5.5 2.3 1.3 2.8 1.2 6.4 2.8 2.5 2.6 1974 5.5 5.3 2.7 1.4 2.9 2.6 5.4 3.5 2.0 2.6 1975 8.3 6.9 4.9 1.9 4.1 4.7 5.9 5.0 1.6 4.0 1976 7.6 7.1 4.8 2.0 4.5 4.6 6.7 5.3 1.6 5.5 1977 6.9 8.1 5.6 2.0 5.1 4.5 7.2 5.1 1.8 5.8 1978 6.0 8.3 6.3 2.2 5.3 4.3 7.2 5.1 2.2 5.7 1979 5.8 7.4 6.3 2.1 6.0 3.8 7.7 5.1 2.1 5.3 1980 7.0 7.5 6.1 2.0 6.4 3.8 7.6 5.9 2.0 6.8 1981 7.5 7.5 5.8 2.2 7.6 5.5 8.4 9.1 2.5 10.4 1982 9.5 11.0 7.2 2.4 8.3 7.5 8.6 12.6 3.1 10.9 1983 9.5 11.8 10.0 2.6 8.5 9.1 9.4 17.0 3.5 11.7 1984 7.4 11.2 9.0 2.7 10.0 9.1 10.0 17.3 3.1 11.7 1985 7.1 10.5 8.3 2.6 10.5 9.3 10.3 15.9 2.8 11.8 1986 6.9 9.5 8.1 2.8 10.6 9.0 (3)11.1 14.7 2.7 11.8 1987 6.1 8.8 8.1 2.8 10.8 8.9 12.0 13.9 (3)1.9 10.4 1988 5.4 7.8 7.2 2.5 10.4 8.8 13.7 13.7 1.6 8.3 Continued on the following page. 14 Table 2. Labor Force, Employment, and Unemployment, 1959-1988--Continued Footnotes: NA = Not available. P = Preliminary. (1) Published and adjusted data are identical. (2) The Swedish labor force survey was initiated in 1961. The published data for 1959-1960 are estimates made by the Organization for Economic Cooperation and Development. (3) Break in series. Based on the former series, the adjusted unemployment rate would be 1.2 percentage points lower for Italy and 2 percentage points higher for the Netherlands. For Germany, the adjusted unemployment rate based on the former series would be approxi- mately 0.3 percentage point higher in 1983 and 0.4 percentage point higher in 1987. For Sweden, the 1986 unemployment rate based on the new series would be approximately 0.5 percentage point lower. (4) Published and adjusted data are identical from 1966 onward. There is a break in the as published series for Canada as of 1966, resulting from sampling changes and a raising of the lower age limit from 14 to 15. The effect was to lower the as published unemploy- ment rate by about 0.4 percentage point. The adjusted series for Canada prior to 1966 are based on BLS estimates and do not show a break in series. (5) Including military personnel for the United States, Japan, Germany, Italy, and Sweden. (6) For the United States, Canada, Australia, Japan, Italy, and Sweden, unemployment as recorded by sample labor force surveys; for France, annual estimates of unemployment; and for Germany, the Netherlands, and the United Kingdom, the registered unemployed. (7) The Australian labor force survey was initiated in 1964. Unemployment rates for 1959-1963 are estimates made by an Australian researcher. (8) For Canada, Australia, and France, unemployment as a percent of the civilian labor force; for the United States, Japan, Italy, and Sweden, unemployment as a percent of the civilian labor force plus career military personnel; for Germany and the Netherlands, registered unemployed as a percent of employed wage and salary workers plus the unemployed; for the United Kingdom, registered unemployed as a percent of the civilian labor force plus military personnel. Published rates shown for Germany, the Netherlands, and the United Kingdom cannot be computed from data contained in this table. Note: Data for the United States relate to the population 16 years of age and over. Published data for Canada, France, Germany, and Italy relate to the population 14 years of age and over; for Sweden, to the population aged 16 to 74; and for Australia, Japan, the Netherlands, and the United Kingdom, to the population 15 years of age and over. Beginning in 1966, published data for Canada relate to the population 15 years of age and over; beginning in 1971, published data for France relate to the population 15 years of age and over; beginning in 1973, published data for the United Kingdom relate to the population 16 years of age and over; and beginning in 1986, published data for Sweden, relate to the population aged 16 to 64. The adjusted statistics have been adapted, insofar as possible, to the age at which compulsory schooling ends in each country. Therefore, adjusted statistics for France relate to the population 16 years of age and over; for Germany, to the population 15 years of age and over; and for the Netherlands, to the population 14 years of age and over for 1973-1974, and to the population 15 years of age and over from 1975 onward. The age limits of adjusted statistics for Canada (except for 1959-1965), Australia, Japan, Italy, and the United Kingdom coincide with the age limits of the published statistics. Statistics for Sweden remain at the lower age limit of 16, but have been adjusted to include persons older than the upper age limit. 15 Table 3. Quarterly Unemployment Rates, Seasonally Adjusted, 1984-1989 United United Period States Canada Australia Japan France Germany Italy Sweden Kingdom (1) (1) (1,2) (1) Total Labor Force Basis 1984 7.4 11.2 8.9 2.7 9.7 7.2 5.8 3.1 11.6 I 7.7 11.2 9.3 2.7 9.3 7.2 5.9 3.2 11.8 II 7.4 11.3 9.0 2.7 9.7 7.2 5.8 3.1 11.6 III 7.3 11.1 8.7 2.8 9.9 7.3 6.0 3.0 11.6 IV 7.2 11.0 8.6 2.7 10.2 7.3 5.6 3.0 11.5 1985 7.1 10.4 8.2 2.6 10.2 7.3 5.9 2.8 11.1 I 7.2 10.9 8.5 2.6 10.2 7.3 5.8 3.0 11.3 II 7.2 10.5 8.4 2.6 10.2 7.3 5.7 2.9 11.2 III 7.1 10.1 8.0 2.6 10.2 7.3 5.8 2.7 11.1 IV 7.0 10.0 7.8 2.8 10.1 7.3 6.0 2.7 11.0 1986 6.9 9.5 8.0 2.8 10.4 6.7 (3)7.4 2.6 11.1 I 6.9 9.6 7.8 2.7 10.1 6.9 7.2 2.7 11.1 II 7.1 9.5 7.7 2.8 10.4 6.8 7.2 2.6 11.2 III 6.9 9.5 8.2 2.9 10.5 6.6 7.3 2.6 11.2 IV 6.8 9.3 8.3 2.8 10.5 6.6 7.7 2.5 11.1 1987 6.1 8.8 8.0 2.9 10.5 (3)6.3 7.7 (3)1.9 10.2 I 6.5 9.4 8.2 3.0 10.6 6.2 7.4 2.0 10.9 II 6.2 9.0 8.0 3.0 10.6 6.3 7.6 1.9 10.5 III 5.9 8.6 7.9 2.8 10.5 6.3 7.8 1.9 10.0 IV 5.8 8.1 7.9 2.7 10.3 6.3 7.9 1.7 9.4 1988 5.4 7.7 7.2 2.5 10.1 6.3 7.8 1.6 8.2 I 5.6 7.8 7.5 2.7 10.2 6.3 7.8 1.7 9.0 II 5.4 7.6 7.5 2.5 10.1 6.3 7.7 1.6 8.5 III 5.4 7.8 6.9 2.6 10.2 6.3 7.8 1.6 8.0 IV 5.3 7.7 6.8 2.4 10.0 6.1 7.7 1.4 7.5 1989 I 5.1 7.5 6.6 2.4 9.9 5.8 7.6 1.4 7.0 II 5.2 7.6 6.1 2.3 9.9 5.7 7.8 1.3 6.5 III 5.2 7.3 5.6 1.3 6.2 Continued on the following page. 16 Table 3. Quarterly Unemployment Rates, Seasonally Adjusted, 1984-1989--Continued United United Period States Canada Australia Japan France Germany Italy Sweden Kingdom (1) (1) (1,2) (1) Civilian Labor Force Basis 1984 7.5 11.2 9.0 2.8 10.0 7.4 5.9 3.1 11.7 I 7.9 11.3 9.4 2.8 9.5 7.3 6.0 3.2 11.8 II 7.5 11.4 9.1 2.8 9.9 7.4 5.9 3.1 11.7 III 7.4 11.2 8.8 2.8 10.1 7.4 6.1 3.1 11.6 IV 7.3 11.1 8.6 2.7 10.4 7.4 5.6 3.0 11.6 1985 7.2 10.5 8.3 2.6 10.4 7.5 6.0 2.8 11.2 I 7.3 11.0 8.6 2.6 10.5 7.5 5.9 3.0 11.4 II 7.3 10.6 8.4 2.6 10.4 7.5 5.8 2.9 11.2 III 7.2 10.2 8.1 2.6 10.5 7:4 5.9 2.8 11.1 IV 7.1 10.1 7.9 2.8 10.4 7.4 6.1 2.7 11.1 1986 7.0 9.5 8.1 2.8 10.6 6.9 (3)7.5 2.6 11.2 I 7.0 9.6 7.9 2.7 10.4 7.1 7.4 2.7 11.1 II 7.2 9.6 7.8 2.8 10.6 6.9 7.4 2.6 11.2 III 7.0 9.5 8.3 2.9 10.7 6.8 7.5 2.6 11.3 IV 6.8 9.4 8.4 2.8 10.8 6.7 7.9 2.6 11.1 1987 6.2 8.8 8.1 2.9 10.8 (3)6.4 7.9 (3)1.9 10.2 I 6.6 9.5 8.3 3.0 10.9 6.3 7.6 2.0 11.0 II 6.3 9.0 8.1 3.0 10.9 6.4 7.8 1.9 10.6 III 6.0 8.6 8.0 2.8 10.8 6.4 8.0 1.9 10.0 IV 5.9 8.1 8.0 2.7 10.5 6.4 8.1 1.7 9.4 1988 5.5 7.8 7.2 2.5 10.4 6.4 7.9 1.6 8.3 I 5.7 7.8 7.6 2.7 10.4 6.4 7.9 1.7 9.0 II 5.5 7.7 7.5 2.5 10.4 6.4 7.9 1.6 8.6 III 5.5 7.8 7.0 2.6 10.4 6.4 8.0 1.6 8.0 IV 5.3 7.7 6.8 2.4 10.2 6.3 7.9 1.4 7.5 1989 I 5.2 7.6 6.6 2.4 10.1 5.9 7.7 1.4 7.0 II 5.3 7.6 6.1 2.3 10.1 5.8 8.0 1.3 6.6 III 5.2 7.4 5.7 1.3 6.2 (1) Preliminary for the United Kingdom from 1984 onward, for Germany from 1987 onward, for Italy from 1988 onward, and for France from 1989 onward. (2) Quarterly data are for January, April, July, and October. (3) Break in series. For Italy, the first half 1986 rate based on the former series was 6.2 percent on a total labor force basis and 6.4 percent on a civilian basis. For Germany, the 1987 rate based on the former series was 6.7 percent on a total labor force basis and 6.8 percent on a civilian basis. For Sweden, the 1986 rate based on the new series was 2.2 percent on both bases. Note: Quarterly figures for France, Germany, Italy, and the United Kingdom are calcu- lated by applying annual adjustment factors to quarterly published data, and therefore should be viewed as only approximate Indicators of unemployment under U.S. concepts. 17 Table 4. Labor Force Participation Rates by Sex, 1960-1988 United Nether- United Year States Canada Australia Japan France Germany Italy lands Sweden Kingdom Total Labor Force Basis Both Sexes 1960 60.0 56.7 NA 68.0 60.8 60.1 56.5 NA 66.8 62.6 1961 60.0 56.6 NA 67.9 60.2 60.2 56.2 NA 66.5 62.7 1962 59.5 56.3 NA 67.0 59.1 60.0 55.2 NA 66.2 62.7 1963 59.3 56.3 NA 65.8 58.5 59.8 53.6 NA 65.6 62.9 1964 59.4 56.6 59.7 65.0 58.5 59.4 53.0 NA 64.8 62.8 1965 59.5 56.9 60.2 64.5 58.1 59.1 51.9 NA 64.4 62.9 1966 59.8 57.6 60.9 64.7 58.1 58.6 50.4 NA 64.5 62.9 1967 60.2 58.0 61.6 64.9 58.1 57.5 50.7 NA 63.6 62.6 1968 60.3 57.9 61.5 65.0 57.8 57.3 50.2 NA 64.1 62.1 1969 60.8 58.1 61.7 64.7 57.9 57.4 49.9 NA 64.0 61.8 1970 61.0 58.1 62.5 64.6 58.2 57.4 49.4 NA 64.3 61.6 1971 60.7 58.3 62.6 64.4 58.0 57.0 49.2 NA 64.5 60.9 1972 60.9 58.8 62.6 63.9 57.8 56.4 48.2 NA 64.4 61.2 1973 61.3 60.0 62.9 64.1 58.0 56.2 48.1 53.9 64.3 62.8 1974 61.7 60.7 63.2 63.2 58.0 55.6 48.1 53.9 65.1 62.6 1975 61.6 61.3 63.4 62.5 57.8 54.9 48.1 54.8 66.1 63.0 1976 62.0 61.3 63.0 62.5 58.0 54.3 48.4 54.6 66.2 63.1 1977 62.6 61.7 63.0 62.6 58.2 53.9 48:7 54.6 66.1 63.1 1978 63.5 62.9 62.2 62.9 58.1 53.8 48.3 54.4 66.3 63.2 1979 64.0 63.6 61.9 62.8 58.1 53.8 48.5 54.6 66.8 62.9 1980 64.1 64.3 62.3 62.7 57.8 53.7 48.6 55.8 67.1 62.9 1981 64.2 64.9 62.2 62.7 57.7 53.4 48.7 57.0 67.0 62.6 1982 64.3 64.2 61.9 62.8 57.7 53.1 48.2 56.9 67.0 62.2P 1983 64.4 64.5 61.6 63.2 57.2 (1) 52.8 47.9 (1) 56.5 66.9 61.9P 1984 64.7 65.0 61.7 62.8 57.2 52.8 47.7 56.6 66.8 62.5P 1985 65.1 65.4 61.8 62.4 56.9 53.1 47.7 56.1 67.1 62.6P 1986 65.6 65.8 63.0 62.2 56.7 53.1 (1 48.3 56.2 67.2 62.6P 1987 65.9 66.4 63.2 62.0 56.4 55.4P 48.3P 56.6P (1)67.4P 63.0P 1988 66.2 66.9 63.5 62.0 56.2P 55.7P 48.9P 56.8P 67.9P 63.2P Continued on the following page. 18 Table 4. Labor Force Participation Rates by Sex, 1960-1988--Continued United Nether- United Year States Canada Australia Japan France Germany Italy lands Sweden Kingdom Total Labor Force Basis Male 1960 83.9- 83.1 NA 84.4 NA 82.9 82.7 NA NA 87.8 1961 83.4 82.2 NA 84.4 NA 83.0 82.2 NA 87.3 87.4 1962 82.6 81.5 NA 83.7 82.1 82.5 81.0 NA 85.6 86.9 1963 82.0 81.0 NA 82.6 80.8 82.2 79.7 NA 84.0 87.2 1964 81.6 80.5 85.5 81.6 80.7 81.8 79.2 NA 83.3 86.5 1965 81.3 80.2 85.3 81.2 79.9 81.4 78.0 NA 82.4 86.1 1966 81.1 80.1 85.4 81.2 79.8 80.9 76.5 NA 81.9 85.6 1967 81.1 79.6 85.2 81.1 79.5 79.8 76.6 NA 80.7 85.2 1968 80.8 78.9 84.8 81.8 78.6 79.5 75.7 NA 80.4 84.3 1969 80.5 78.6 84.5 81.6 78.4 79.4 75.0 NA 79.4 83.6 1970 80.3 78.1 84.4 81.6 78.2 79.2 74.2 NA 78.8 82.8 1971 79.7 77.6 84.1 82.0 77.3 78.3 74.0 NA 78.3 81.5 1972 79.5 77.8 83.9 82.0 76.5 76.7 72.6 NA 77.6 81.3 1973 79.3 78.4 83.4 82.0 76.2 75.9 71.8 79.6 77.2 82.7 1974 79.2 78.9 82.9 81.7 76.0 74.7 71.5 79.6 77.2 81.1 1975 78.4 78.6 82.5 81.3 75.1 73.7 71.1 80.1 77.3 81.2 1976 78.0 77.8 81.7 81.1 74.8 72.8 70.9 79.6 76.8 81.2 1977 78.1 77.9 81.2 80.5 74.5 72.2 70.1 78.9 75.9 80.6 1978 78.3 78.3 80.0 80.2 73.9 72.0 69.3 78.0 75.3 80.1 1979 78.2 78.6 79.7 80.0 73.3 71.8 68.9 77.4 75.4 79.4 1980 77.8 78.6 79.4 79.7 72.5 71.2 68.5 77.7 75.2 79.2 1981 77.4 78.6 79.1 79.7 72.1 70.4 68.4 77.8 74.1 78.9 1982 77.0 77.2 78.6 79.4 71.5 69.6 67.4 76.6 73.8 77.9P 1983 76.8 76.9 77.9 79.3 70.5 (1)69.1 66.7 (1)76.0 73.2 77.0P 1984 76.8 76.7 77.5 78.6 69.9 68.6 66.2 75.3 72.7 76.8P 1985 76.7 76.8 76.8 78.0 69.1 68.8 65.9 74.4 72.9 76.6P 1986 76.7 76.8 76.8 77.7 68.6 68.4 )65.9 72.7 72.8 76.1P 1987 76.6 76.7 76.4 77.2 67.8 NA 65.5P 72.0P (1)72.5P 76.1P 1988 76.6 76.7 76.3 77.0 NA NA 66.2P NA 72.9P 76.1P Continued on the following page. 19 Table 4. Labor Force Participation Rates by Sex, 1960-1988--Continued United Nether- United Year States Canada Australia Japan France Germany Italy lands Sweden Kingdom Total Labor Force Basis Female 1960 37.8 30.1 NA 52.7 NA 41.2 32.3 NA NA 39.9 1961 38.1 31.0 NA 52.4 NA 41.0 32.5 NA 46.1 40.2 1962 38.0 31.3 NA 51.3 38.3 40.7 31.6 NA 47.1 40.5 1963 38.3 31.9 NA 50.0 38.2 40.7 29.7 NA 47.6 40.8 1964 38.7 32.9 33.8 49.3 38.3 40.3 28.8 NA 46.8 41.2 1965 39.3 33.8 34.9 48.8 38.2 40.0 27.8 NA 46.6 41.8 1966 40.3 35.4 36.4 49.2 38.2 39.4 26.5 NA 47.3 42.2 1967 41.2 36.5 37.9 49.6 38.6 38.4 26.6 NA 46.8 42.0 1968 41.6 37.1 38.4 49.2 38.8 38.5 26.5 NA 48.0 41.9 1969 42.7 38.0 39.0 48.8 39.2 38.5 26.6 NA 48.8 42.1 1970 43.4 38.4 40.4 48.7 39.8 38.5 26.4 NA 50.0 42.2 1971 43.4 39.4 41.0 47.7 40.2 38.5 26.3 NA 50.9 42.1 1972 43.9 40.2 41.2 46.8 40.6 38.6 25.6 NA 51.5 42.9 1973 44.8 41.9 42.4 47.3 41.1 38.9 26.1 28.5 51.7 44.7 1974 45.7 43.0 43.5 45.7 41.4 38.8 26.5 28.7 53.3 45.7 1975 46.4 44.4 44.5 44.8 41.7 38.4 26.8 29.5 55.2 46.3 1976 47.4 45.2 44.3 44.9 42.4 38.1 27.6 29.9 55.8 46.6 1977 48.5 46.1 44.9 45.7 43.2 37.8 28.9 30.6 56.7 47.0 1978 50.0 47.9 44.5 46.4 43.5 37.8 28.8 31.1 57.5 47.7 1979 51.0 49.0 44.3 46.6 44.0 37.9 29.5 32.1 58.5 47.8 1980 51.6 50.4 45.5 46.6 44.3 38.1 30.1 34.3 59.3 47.9 1981 52.2 51.8 45.5 46.7 44.5 37.6 30.4 36.7 60.1 47.7 1982 52.7 51.8 45.5 47.0 44.9 38.4 30.3 37.7 60.5 47.8P 1983 53.0 52.6 45.6 48.0 45.0 (1) 38.4 30.5 (1) 37.4 60.8 48.1P 1984 53.7 53.7 46.1 47.8 45.5 38.8 30.5 38.2 61.1 49.3P 1985 54.5 54.6 47.1 47.6 45.6 39.1 30.7 38.2 61.5 49.7P 1986 55.4 55.4 49.3 47.6 45.8 39.4 (1) 31.9 40.0 61.7 50.2P 1987 56.1 56.4 50.1 47.6 45.9 NA 32.3P 41.8P (1)62.6P 51.0P 1988 56.6 57.4 50.7 47.9 NA NA 32.9P NA 63.2P 51.3P Continued on the following page. 20 Table 4. Labor Force Participation Rates by Sex, 1960-1988--Continued United Nether- United Year States Canada Australia Japan France Germany Italy lands Sweden Kingdom Civilian Labor Force Basis Both Sexes 1960 59.4 56.2 NA 67.9 59.5 59.8 56.1 NA 66.5 61.9 1961 59.3 56.2 NA 67.8 58.7 59.9 55.8 NA 66.2 62.1 1962 58.8 55.9 NA 66.9 57.9 59.6 54.7 NA 65.9 62.1 1963 58.7 55.9 NA 65.7 57.5 59.4 53.1 NA 65.3 62.3 1964 58.7 56.2 59.4 64.8 57.6 59.0 52.5 NA 64.5 62.2 1965 58.9 56.5 59.9 64.4 57.4 58.7 51.4 NA 64.1 62.4 1966 59.2 57.3 60.6 64.6 57.3 58.2 50.0 NA 64.2 62.3 1967 59.6 57.6 61.2 64.8 57.4 57.0 50.2 NA 63.4 62.0 1968 59.6 57.6 61.2 64.9 57.1 56.9 49.7 NA 63.8 61.6 1969 60.1 57.9 61.4 64.6 57.3 57.0 49.3 NA 63.8 61.4 1970 60.4 57.8 62.1 64.5 57.5 56.9 49.0 NA 64.0 61.1 1971 60.2 58.1 62.2 64.2 57.4 56.6 48.7 NA 64.2 60.4 1972 60.4 58.6 62.3 63.8 57.2 55.9 47.7 NA 64.1 60.8 1973 60.8 59.7 62.6 64.0 57.3 55.8 47.6 53.3 64.1 62.4 1974 61.2 60.5 63.0 63.0 57.4 55.1 47.7 53.4 64.8 62.2 1975 61.2 61.1 63.2 62.4 57.1 54.4 47.7 54.4 65.9 62.6 1976 61.6 61.1 62.7 62.4 57.3 53.8 48.0 54.1 66.0 62.7 1977 62.3 61.6 62.7 62.5 57.6 53.4 48.2 54.1 65.9 62.7 1978 63.2 62.7 61.9 62.8 57.5 53.3 47.8 53.9 66.1 62.8 1979 63.7 63.4 61.6 62.7 57.5 53.3 48.0 54.1 66.6 62.6 1980 63.8 64.1 62.1 62.6 57.2 53.2 48.2 55.3 66.9 62.5 1981 63.9 64.8 61.9 62.6 57.1 52.9 48.3 56.6 66.8 62.2 1982 64.0 64.1 61.7 62.7 57.1 52.6 47.7 56.5 66.8 62.2P 1983 64.0 64.4 61.4 63.1 56.6 (1) 52.3 47.5 (1) 56.1 66.7 61.9P 1984 64.4 64.8 61.5 62.7 56.6 52.4 47.3 56.2 66.6 62.5P 1985 64.8 65.3 61.6 62.3 56.3 52.6 47.2 55.7 66.9 62.6P 1986 65.3 65.7 62.8 62.1 56.1 52.6 (1) 047.8 55.9 67.0 62.6P 1987 65.6 66.2 63.0 61.9 55.8 (1 55.0P 47.9P 56.3P (1)67.3P 63.0P 1988 65.9 66.7 63.3 61.9 55.6P 55.2P 48.4P 56.4P 67.8P 63.3P Continued on the following page. 21 Table 4. Labor Force Participation Rates by Sex, 1960-1988--Continued United Nether- United Year States Canada Australia Japan France Germany Italy lands Sweden Kingdom Civilian Labor Force Basis Male 1960 83.3 82.8 NA 84.2 NA 82.7 82.4 NA NA 86.8 1961 82.9 81.8 NA 84.3 NA 82.7 81.8 NA 87.1 86.6 1962 82.0 81.1 NA 83.6 81.0 82.2 80.6 NA 85.4 86.2 1963 81.4 80.6 NA 82.5 79.8 81.9 79.2 NA 83.7 86.4 1964 81.0 80.1 85.3 81.5 79.9 81.4 78.7 NA 83.0 85.8 1965 80.7 79.9 85.1 81.1 79.2 80.9 77.5 NA 82.2 85.4 1966 80.4 79.8 85.2 81.1 79.1 80.5 76.0 NA 81.6 84.9 1967 80.4 79.3 84.9 81.0 78.8 79.3 76.1 NA 80.4 84.5 1968 80.1 78.6 84.5 81.7 77.8 79.0 75.2 NA 80.1 83.6 1969 79.8 78.3 84.2 81.5 77.7 78.9 74.4 NA 79.1 82.9 1970 79.7 77.8 84.1 81.5 77.4 78.7 73.7 NA 78.5 82.1 1971 79.1 77.3 83.8 81.9 76.5 77.8 73.4 NA 78.0 80.8 1972 79.0 77.5 83.6 81.9 75.7 76.1 72.0 NA 77.3 80.7 1973 78.8 78.2 83.2 81.9 75.5 75.3 71.2 79.2 76.8 82.1 1974 78.7 78.7 82.7 81.6 75.3 74.1 71.0 79.1 76.7 80.5 1975 77.9 78.4 82.2 81.2 74.3 73.1 70.6 79.8 77.0 80.7 1976 77.5 77.6 81.5 81.0 74.0 72.1 70.4 79.2 76.5 80.6 1977 77.7 77.7 81.0 80.4 73.7 71.6 69.5 78.5 75.6 80.1 1978 77.9 78.1 79.8 80.1 73.1 71.3 68.7 77.6 75.1 79.6 1979 77.8 78.5 79.4 79.9 72.5 71.1 68.3 76.8 75.1 78.9 1980 77.4 78.4 79.1 79.6 71.7 70.6 67.9 77.2 74.9 78.7 1981 77.0 78.4 78.8 79.6 71.3 69.7 67.8 77.3 73.8 78.3 1982 76.6 77.0 78.4 79.3 70.7 68.9 66.9 76.1 73.5 78.1P 1983 76.4 76.7 77.6 79.2 69.6 (1)68.3 66.2 (1) 75.6 72.9 77.2P 1984 76.4 76.6 77.3 78.5 69.0 68.0 65.6 74.9 72.4 77.0P 1985 76.3 76.6 76.5 77.9 68.3 68.1 65.3 73.9 72.5 76.7P 1986 76.3 76.6 76.6 77.6 67.7 67.7 (1 )65.2 72.2 72.5 76.2P 1987 76.2 76.6 76.1 77.1 66.9 NA 64.8P 71.6P (1)72.2P 76.2P 1988 76.2 76.6 76.1 76.9 NA NA 65.5P NA 72.6P 76.3P Continued on the following page. 22 Table 4. Labor Force Participation Rates by Sex, 1960-1988--Continued United Nether- United Year States Canada Australia Japan France Germany Italy lands Sweden Kingdom Civilian Labor Force Basis Female 1960 37.7 30.1 NA 52.7 NA 41.2 32.3 NA NA 39.8 1961 38.1 31.0 NA 52.4 NA 41.0 32.5 NA 46.1 40.1 1962 37.9 31.3 NA 51.3 38.2 40.7 31.6 NA 47.1 40.5 1963 38.3 31.9 NA 50.0 38.2 40.7 29.7 NA 47.6 40.7 1964 38.7 32.9 33.8 49.3 38.2 40.3 28.8 NA 46.8 41.2 1965 39.3 33.8 34.8 48.8 38.2 40.0 27.8 NA 46.6 41.7 1966 40.3 35.4 36.3 49.2 38.2 39.4 26.5 NA 47.3 42.1 1967 41.1 36.5 37.8 49.6 38.5 38.4 26.6 NA 46.8 41.9 1968 41.6 37.1 38.3 49.2 38.8 38.5 26.5 NA 48.0 41.9 1969 42.7 38.0 39.0 48.8 39.2 38.5 26.6 NA 48.8 42.0 1970 43.3 38.3 40.4 48.7 39.8 38.5 26.4 NA 50.0 42.2 1971 43.4 39.4 41.0 47.7 40.2 38.5 26.3 NA 50.9 42.0 1972 43.9 40.2 41.2 46.8 40.6 38.6 25.6 NA 51.5 42.8 1973 44.7 41.9 42.4 47.3 41.0 38.9 26.1 28.5 51.7 44.6 1974 45.7 43.0 43.5 45.7 41.4 38.8 26.5 28.7 53.3 45.7 1975 46.3 44.4 44.5 44.8 41.7 38.4 26.8 29.5 55.2 46.2 1976 47.3 45.2 44.3 44.9 42.4 38.1 27.6 29.9 55.8 46.5 1977 48.4 46.0 44.8 45.7 43.2 37.8 28.9 30.6 56.7 47.0 1978 50.0 47.9 44.5 46.4 43.5 37.8 28.8 31.1 57.5 47.6 1979 50.9 49.0 44.3 46.6 44.0 37.9 29.5 32.1 58.5 47.8 1980 51.5 50.4 45.5 46.6 44.3 38.1 30.1 34.3 59.3 47.8 1981 52.1 51.7 45.5 46.7 44.5 37.6 30.4 36.7 60.1 47.6 1982 52.6 51.7 45.4 47.0 44.9 38.4 30.3 37.7 60.5 47.8P 1983 52.9 52.6 45.5 48.0 44.9 (1) 38.4 30.5 (1) 37.4 60.8 48.1P 1984 53.6 53.6 46.1 47.8 45.4 38.8 30.5 38.2 61.1 49.3P 1985 54.5 54.6 47.0 47.6 45.5 39.1 30.7 38.2 61.5 49.7P 1986 55.3 55.3 49.2 47.6 45.7 39.4 (1) 31.9 40.0 61.7 50.2P 1987 56.0 56.4 50.0 47.6 45.9 NA 32.3P 41.8P (1)62.6P 51.0P 1988 56.6 57.4 50.7 47.6 NA NA 32.9P NA 63.2P 51.3P Continued on the following page. 23 Table 4. Labor Force Participation Rates by Sex, 1960-1988--Continued NA = Not available. P = Preliminary. (1) Break in series. Note: Data relate to the total or civilian labor force approximating U.S. concepts as a per- cent of the total or civilian noninstitutionalized working age population. Working age is defined as 16-year-olds and over in the United States, France, and Sweden; 15-year-olds and over in Australia, Canada, Germany, and Japan; and 14-year-olds and over in Italy. For the United Kingdom, the lower age limit was raised from 15 to 16 in 1973. For the Netherlands, the lower age limit was raised from 14 to 15 in 1975. The institutionalized working age population is included in Japan and Germany. 24 Table 5. - Employment-Population Ratios by Sex, 1959-1988 United Nether- United Year States Canada Australia Japan France Germany Italy lands Sweden Kingdom Total Employment Basis Both sexes 1959 56.7 53.1 NA 66.2 60.0 59.0 55.0 NA 65.3 60.9 1960 56.8 53.0 NA 66.8 60.0 59.4 54.5 NA 65.7 61.3 1961 56.1 52.9 NA 66.9 59.5 59.9 54.5 NA 65.6 61.5 1962 56.3 53.3 NA 66.1 58.3 59.6 53.6 NA 65.2 61.0 1963 56.1 53.5 NA 64.9 57.6 59.5 52.4 NA 64.5 60.8 1964 56.4 54.1 58.9 64.2 57.8 59.2 51.6 NA 63.8 61.2 1965 56.8 54.8 59.4 63.7 57.2 59.0 50.1 NA 63.7 61.6 1966 57.6 55.7 60.0 63.8 57.2 58.5 48.6 NA 63.5 61.5 1967 58.0 55.8 60.4 64.1 57.0 56.8 49.0 NA 62.3 60.6 1968 58.2 55.3 60.4 64.2 56.2 56.7 48.5 NA 62.7 60.2 1969 58.7 55.6 60.6 64.0 56.6 57.0 48.2 NA 62.8 60.0 1970 58.0 54.8 61.5 63.9 56.7 57.1 47.9 NA 63.3 59.7 1971 57.2 54.8 61.4 63.6 56.5 56.7 47.6 NA 62.9 58.5 1972 57.5 55.2 61.0 63.0 56.2 56.0 46.4 NA 62.7 58.7 1973 58.3 56.7 61.5 63.3 56.4 55.8 46.3 52.2 62.7 60.8 1974 58.3 57.5 61.5 62.3 56.4 54.7 46.6 52.0 63.8 60.7 1975 56.5 57.1 60.4 61.3 55.4 53.1 46.5 52.1 65.0 60.2 1976 57.3 56.9 60.0 61.2 55.4 52.5 46.6 51.7 65.1 59.4 1977 58.3 56.8 59.5 61.4 55.4 52.1 46.7 51.9 65.0 59.1 1978 59.7 57.7 58.3 61.4 55.1 52.0 46.3 51.7 64.8 59.2 1979 60.3 58.9 58.1 61.5 54.7 52.2 46.4 51.8 65.5 59.6 1980 59.6 59.5 58.6 61.4 54.2 52.2 46.6 52.5 65.8 58.5 1981 59.4 60.1 58.6 61.3 53.4 51.3 46.4 52.1 65.3 56.1 1982 58.2 57.2 57.5 61.3 53.0 50.1 45.6 51.2 64.9 55.3P 1983 58.3 56.9 55.5 61.5 52.4 (1) 49.1 45.1 49.6 64.6 54.7P 1984 59.9 57.7 56.2 61.1 51.6 49.0 44.9 49.8 64.7 55.2P 1985 60.5 58.6 56.8 60.8 51.1 49.2 44.8 50.5 65.2 55.6P 1986 61.1 59.6 58.0 60.5 50.8 49.5 44.7 50.7 65.4 55.6P 1987 61.9 60.5 58.1 60.2 50.5 (1) 51.9P 44.6P 51.1P 1)66.2P 56.6P 1988 62.6 61.7 59.0 60.5 50.5P 52.2P 45.1P 51.1P 66.9P 58.0P Continued on the following page. 25 Table 5. Employment-Population Ratios by Sex, 1959-1988--Continued United Nether- United Year States Canada Australia Japan France Germany Italy lands Sweden Kingdom Civilian Employment Basis Both sexes 1959 56.0 52.6 NA 66.1 58.7 58.8 54.5 NA 65.0 60.1 1960 56.1 52.6 NA 66.7 58.6 59.1 54.0 NA 65.4 60.6 1961 55.4 52.4 NA 66.8 58.2 59.6 54.0 NA 65.3 60.8 1962 55.5 52.8 NA 66.0 57.1 59.3 53.2 NA 64.9 60.4 1963 55.4 53.0 NA 64.8 56.6 59.2 51.9 NA 64.2 60.2 1964 55.7 53.7 58.6 64.1 56.9 58.8 51.1 NA 63.5 60.7 1965 56.2 54.4 59.1 63.6 56.4 58.6 49.6 NA 63.4 61.0 1966 56.9 55.4 59.6 63.7 56.4 58.0 48.1 NA 63.2 60.9 1967 57.3 55.4 60.0 64.0 56.2 56.3 48.5 NA 62.0 60.0 1968 57.5 55.0 60.0 64.1 55.5 56.2 47.9 NA 62.4 59.6 1969 58.0 55.3 60.2 63.9 55.9 56.6 47.6 NA 62.6 59.5 1970 57.4 54.5 61.1 63.8 56.0 56.6 47.4 NA 63.1 59.2 1971 56.6 54.5 61.0 63.4 55.8 56.2 47.1 NA 62.6 58.0 1972 57.0 54.9 60.6 62.9 55.5 55.5 45.9 NA 62.4 58.2 1973 57.8 56.4 61.2 63.2 55.8 55.4 45.8 51.7 62.5 60.3 1974 57.8 57.3 61.3 62.2 55.7 54.2 46.2 51.5 63.6 60.3 1975 56.1 56.9 60.1 61.2 54.8 52.6 46.0 51.6 64.8 59.7 1976 56.8 56.7 59.7 61.1 54.7 52.0 46.1 51.2 64.9 59.0 1977 57.9 56.6 59.2 61.2 54.7 51.6 46.3 51.5 64.8 58.7 1978 59.3 57.5 58.0 61.3 54.4 51.5 45.9 51.2 64.6 58.8 1979 59.9 58.7 57.8 61.4 54.0 51.7 45.9 51.3 65.3 59.2 1980 59.2 59.3 58.3 61.3 53.5 51.7 46.1 52.0 65.6 58.1 1981 59.0 59.9 58.4 61.2 52.8 50.8 45.9 51.6 65.1 55.7 1982 57.8 57.1 57.3 61.2 52.3 49.6 45.2 50.7 64.7 55.2P 1983 57.9 56.8 55.3 61.4 51.8 (1)48.6 44.7 )49.2 64.4 54.7P 1984 59.5 57.5 56.0 61.0 51.0 48.5 44.5 49.3 64.5 55.2P 1985 60.1 58.5 56.5 60.6 50.4 48.7 44.4 50.0 65.0 55.6P 1986 60.7 59.4 57.7 60.4 50.2 49.0 (1) 44.2 50.2 65.2 55.6P 1987 61.5 60.4 57.9 60.1 49.8 (1)51.5P 44.1P 50.6P (1)66.0P 56.6P 1988 62.3 61.6 58.7 60.4 49.9P 51.7P 44.6P 50.7P 66.7P 58.0P Continued on the following page. 26 Table 5. Employment-Population Ratios by Sex, 1959-1988--Continued United Nether- United Year States Canada Australia Japan France Germany Italy lands Sweden Kingdom Civilian Employment Basis Male 1960 78.9 76.9 NA 82.8 NA 82.0 79.5 NA NA 85.0 1961 77.6 75.8 NA 83.2 NA 82.3 79.4 NA 86.3 84.9 1962 77.7 76.3 NA 82.7 80.1 81.8 78.6 NA 84.2 83.9 1963 77.1 76.2 NA 81.5 79.0 81.6 77.6 NA 82.6 83.5 1964 77.3 76.5 84.5 80.6 79.2 81.1 77.0 NA 81.9 83.7 1965 77.5 76.9 84.4 80.2 78.4 80.7 75.2 NA 81.5 83.5 1966 77.9 77.1 84.2 80.1 78.2 80.3 73.5 NA 80.6 82.9 1967 78.0 76.3 83.8 80.0 77.6 78.2 73.9 NA 78.8 81.5 1968 77.8 75.1 83.5 80.7 76.4 78.1 73.0 NA 78.2 80.6 1969 77.6 74.9 83.2 80.5 76.5 78.5 72.4 NA 77.7 80.0 1970 76.2 73.4 83.2 80.5 76.3 78.3 71.9 NA 77.4 79.2 1971 74.9 72.7 82.7 80.9 75.3 77.4 71.6 NA 76.2 77.3 1972 75.0 73.0 82.0 80.6 74.4 75.6 69.9 NA 75.4 76.8 1973 75.5 74.3 81.8 80.8 74.2 74.9 69.3 77.1 75.1 79.1 1974 74.9 74.9 81.1 80.5 73.9 73.0 69.4 76.9 75.5 77.9 1975 71.7 73.5 79.1 79.5 72.1 70.6 68.8 76.7 76.0 76.7 1976 72.0 72.7 78.3 79.2 71.7 69.9 68.5 75.9 75.6 75.5 1977 72.8 72.0 77.3 78.7 71.1 69.5 67.5 75.5 74.5 74.7 1978 73.8 72.2 75.5 78.2 70.2 69.4 66.8 74.8 73.5 74.6 1979 73.8 73.3 75.3 78.2 69.4 69.5 66.3 74.1 73.7 74.5 1980 72.0 73.0 75.1 77.9 68.5 68.9 66.0 73.9 73.6 72.8 1981 71.3 72.9 75.1 77.8 67.4 67.4 65.6 72.0 72.0 69.3 1982 69.0 68.5 73.4 77.4 66.3 65.4 64.4 69.5 71.3 68.9P 1983 68.8 67.5 70.1 77.1 65.0 (1)64.0 63.5 (1)67.2 70.4 67.7P 1984 70.7 68.0 70.6 76.4 63.5 63.6 62.9 66.6 70.2 67.8P 1985 70.9 68.7 70.4 75.9 62.3 63.7 62.5 67.4 70.5 67.9P 1986 71.0 69.5 70.7 75.4 61.8 63.8 (1)61.8 66.5 70.6 67.4P 1987 71.5 70.1 70.2 74.9 61.2 NA 61.3P 66.3P (1)70.9P 68.1P 1988 72.0 70.9 70.9 75.0 NA NA 61.9P NA 71.5P 69.7P Continued on the following page. 27 Table 5. Employment-Population Ratios by Sex, 1959-1988--Continued United Nether- United Year States Canada Australia Japan France Germany Italy lands Sweden Kingdom Civilian Employment Basis Female 1960 35.5 28.6 NA 51.8 NA 40.5 31.0 NA NA 38.9 1961 35.4 29.4 NA 51.6 NA 40.7 31.1 NA 45.0 39.3 1962 35.6 29.9 NA 50.6 37.4 40.4 30.4 NA 46.3 39.4 1963 35.8 30.5 NA 49.3 37.2 40.4 28.8 NA 46.5 39.4 1964 36.3 31.6 32.9 48.7 37.5 40.1 27.7 NA 45.9 40.1 1965 37.1 32.6 34.0 48.1 37.3 39.9 26.6 NA 45.8 40.8 1966 38.3 34.2 35.4 48.4 37.2 39.3 25.2 NA 46.4 41.2 1967 39.0 35.1 36.6 48.9 37.3 38.0 25.3 NA 45.7 40.7 1968 39.6 35.5 37.1 48.7 37.1 38.0 25.1 NA 47.0 40.8 1969 40.7 36.2 37.7 48.3 37.7 38.2 25.1 NA 47.9 41.1 1970 40.8 36.1 39.3 48.2 38.1 38.2 25.0 NA 49.1 41.2 1971 40.4 36.8 39.7 47.2 38.4 38.1 24.9 NA 49.5 40.7 1972 41.0 37.4 39.6 46.2 38.7 38.3 24.1 NA 50.0 41.4 1973 42.0 39.1 40.9 46.8 39.2 38.6 24.5 27.3 50.-3 43.4 1974 42.6 40.2 41.7 45.1 39.4 38.1 25.1 27.1 52.0 44.3 1975 42.0 40.8 41.4 44.0 39.2 37.0 25.3 27.1 54.0 44.4 1976 43.2 41.4 41.5 44.1 39.5 36.6 25.8 27.3 54.7 44.1 1977 44.5 41.7 41.5 44.9 39.9 36.2 26.9 28.2 55.4 44.3 1978 46.4 43.3 41.0 45.5 40.2 36.1 26.9 28.4 56.1 44.7 1979 47.5 44.7 40.7 45.7 40.2 36.4 27.3 29.2 57.2 45.4 1980 47.7 46.2 41.9 45.7 40.1 36.7 27.9 31.0 58.0 44.8 1981 48.0 47.4 42.1 45.7 39.8 35.7 28.0 31.9 58.5 43.3 1982 47.7 46.1 41.5 45.9 39.9 35.8 27.7 32.6 58.4 42.8P 1983 48.0 46.5 40.8 46.7 39.9 (1) 35.2 27.6 (1)31.9 58.6 42.8P 1984 49.5 47.6 41.7 46.5 39.7 35.3 27.6 32.7 59.1 43.7P 1985 50.4 48.8 42.9 46.3 39.6 35.5 27.8 33.4 59.7 44.4P 1986 51.4 49.9 44.9 46.2 39.7 36.1 (1)28.1 34.7 60.1 44.8P 1987 52.5 51.2 45.7 46.2 39.6 NA 28.5P 35.7P (1)61.4P 46.0P 1988 53.4 52.6 46.8 46.6 NA NA 28.9P NA 62.2P 47.3P Continued on the following page. 28 Table 5. Employment-Population Ratios by Sex, 1959-1988--Continued NA = Not available. P = Preliminary. (1) Break in series. NOTE: Data relate to total or civilian employment approximating U.S. concepts as a percent of the total or civilian noninstitutionalized working age population. Working age is defined as 16- year-olds and over in the United States, France, and Sweden; 15-year-olds and over in Australia, Canada, Germany, and Japan; and 14-year-olds and over in Italy. For the United Kingdom, the lower age limit was raised from 15 to 16 in 1973. For the Netherlands, the lower age limit was raised from 14 to 15 in 1975. The institutionalized working age population is included in Japan and Germany. 29 Table 6. Civilian Employment by Economic Sector, 1960-1988 (in thousands) United Aus- Nether United Year States Canada tralia Japan France Germany Italy lands Sweden Kingdom Civilian Employment 1960 65,778 5,965 NA 43,370 18,595 25,954 20,064 4,162 3,513 23,660 1965 71,088 6,862 4,614 46,200 19,540 26,418 19,210 4,487 3,673 24,776 1970 78,678 7,919 5,388 50,140 20,328 26,169 19,083 4,679 3,836 24,381 1971 79,367 8,104 5,518 50,470 20,440 26,317 19,016 4,700 3,842 24,165 1972 82,153 8,344 5,602 50,580 20,571 26,214 18,730 4,673 3,845 24,139 1973 85,064 8,761 5,765 51,900 20,863 26,411 18,914 4,670 3,861 24,716 1974 86,794 9,125 5,891 51,710 21,059 26,038 19,346 4,672 3,944 24,803 1975 85,846 9,284 5,867 51,530 20,864 25,285 19,476 4,640 4,044 24,720 1976 88,752 9,477 5,946 52,020 21,016 25,059 19,605 4,654 4,070 24,509 1977 92,017 9,651 6,000 52,720 21,188 25,014 19,794 4,710 4,081 24,538 1978 96,048 9,987 6,016 53,360 21,263 25,169 19,867 4,757 4,097 24,697 1979 98,824 10,395 6,098 54,040 21,305 25,516 20,097 4,821 4,162 25,079 1980 99,303 10,708 6,276 54,600 21,334 25,797 20,383 4,973 4,214 25,004 1981 100,397 11,001 6,399 55,060 21,203 25,610 20,486 5,005 4,207 24,011 1982 99,526 10,618 6,405 55,620 21,240 25,177 20,431 4,999 4,201 23,584 1983 100,834 10,675 6,289 56,550 21,168 24,793 20,467 4,927 4,206 23,288 1984 105,005 10,932 6,474 56,870 20,981 24,839 20,392 4,980 4,237 23,734 1985 107,150 11,221 6,708 57,260 20,914 25,010 20,492 5,076 4,281 24,116 1986 109,597 11,531 6,949 57,740 20,955 25,267 20,614 5,135 4,314 24,434 1987 112,440 11,861 7,100 58,320 21,010 25,476 20,591 NA 4,384 24,987 1988 114,968 12,245 7,366 59,310 21,144 25,631 20,868 NA 4,455 25,433 Continued on the following page. 30 Table 6. Civilian Employment by Economic Sector, 1960-1988 (in thousands)--Continued United Aus- Nether- United Year States Canada tralia Japan France Germany Italy lands Sweden Kingdom Agriculture (1) 1960 5,572 795 NA 12,800 4,305 3,623 6,514 409 544 1,118 1965 4,477 694 448 10,500 3,473 2,876 5,031 341 421 952 1970 3,567 604 432 8,490 2,751 2,262 3,839 289 314 784 1971 3,510 607 424 7,840 2,612 2,134 3,817 281 300 764 1972 3,598 575 440 7,310 2,468 2,018 3,550 277 287 735 1973 3,572 573 422 6,810 2,345 1,924 3,438 272 276 736 1974 3,613 579 408 6,540 2,242 1,842 3,373 267 264 699 1975 3,505 564 405 6,380 2,156 1,773 3,244 263 261 687 1976 3,453 561 390 6,210 2,082 1,682 3,217 261 254 685 1977 3,426 553 398 6,110 2,013 1,589 3,119 248 248 684 1978 3,550 574 381 6,100 1,954 1,536 3,053 256 250 680 1979 3,508 590 396 5,860 1,908 1,481 2,985 257 242 666 1980 3,529 583 407 5,510 1,854 1,437 2,896 246 237 654 1981 3,519 600 416 5,330 1,791 1,408 2,731 244 237 639 1982 3,570 561 412 5,250 1,732 1,395 2,525 241 236 632 1983 3,541 590 416 5,060 1,677 1,391 2,517 247 230 622 1984 3,469 588 402 4,860 1,627 1,376 2,390 247 218 615 1985 3,338 575 412 4,820 1,582 1,360 2,262 248 208 616 1986 3,350 570 425 4,700 1,534 1,338 2,212 248 204 603 1987 3,400 566 412 4,640 1,481 1,311 2,138 NA 189 592 1988 3,326 556 431 4,480 1,428 1,283 2,033 NA 188 582 Continued on the following page. 31 Table 6. Civilian Employment by Economic Sector, 1960-1988 (in thousands)--Continued United Aus- Nether- United Year States Canada tralia Japan France Germany Italy lands Sweden Kingdom Industry (2) 1960 21,995 1,906 NA 12,380 6,976 11,912 6,855 1,644 1,420 10,900 1965 24,311 2,233 1,653 15,010 7,486 12,501 7,174 1,797 1,553 11,117 1970 26,080 2,360 1,886 17,880 7,812 12,465 7,586 1,778 1,456 10,531 1971 25,182 2,383 1,916 18,140 7,869 12,530 7,613 1,757 1,424 10,156 1972 25,828 2,439 1,898 18,290 7,929 12,315 7,472 1,683 1,396 9,940 1973 27,258 2,586 1,945 19,210 8,076 12,348 7,466 1,661 1,401 10,110 1974 27,213 2,688 1,963 19,020 8,131 11,941 7,634 1,632 1,434 10,080 1975 25,302 2,613 1,870 18,370 7,883 11,243 7,663 1,576 1,449 9,632 1976 26,310 2,701 1,866 18,520 7,810 11,042 7,561 1,520 1,416 9,345 1977 27,343 2,675 1,845 18,510 7,773 10,944 7,662 1,509 1,375 9,324 1978 28,810 2,750 1,785 18,550 7,650 10,958 7,626 1,525 1,328 9,312 1979 29,797 2,884 1,785 18,740 7,540 11,055 7,641 1,523 1,326 9,344 1980 29,136 2,931 1,816 19,180 7,475 11,136 7,767 1,518 1,327 9,059 1981 28,995 2,983 1,829 19,300 7,266 10,885 7,722 1,453 1,286 8,242 1982 27,070 2,694 1,775 19,210 7,139 10,478 7,594 1,399 1,237 7,817 1983 27,016 2,608 1,649 19,470 6,941 10,112 7,403 1,315 1,223 7,448 1984 28,617 2,695 1,670 19,630 6,691 10,029 7,036 1,361 1,228 7,389 1985 28,805 2,728 1,714 19,820 6,485 10,028 6,890 1,381 1,244 7,363 1986 29,130 2,789 1,730 19,760 6,364P 10,112 6,816 1,329 1,257 7,180 1987 29,209 2,870 1,759 19,560 6,261P 10,100P 6,709 NA 1,262 7,156P 1988 29,676 3,012 1,820 20,120 6,212P 10,074P 6,783 NA 1,267 7,125P Continued on the following page. 32 Table 6. Civilian Employment by Economic Sector, 1960-1988 (in thousands)--Continued United Aus- Nether- United Year States Canada tralia Japan France Germany Italy lands Sweden Kingdom Manufacturing 1960 17,149 1,471 NA 9,430 5,250 8,907 4,813 1,213 1,120 8,517 1965 19,190 1,636 1,207 11,450 5,373 9,483 4,894 1,290 1,206 8,666 1970 20,746 1,768 1,340 13,750 5,593 9,779 5,293 1,261 1,064 8,465 1971 19,606 1,766 1,358 13,820 5,676 9,835 5,329 1,250 1,054 8,202 1972 19,943 1,823 1,344 13,810 5,749 9,652 5,223 1,200 1,046 7,934 1973 21,054 1,927 1,374 14,420 5,882 9,697 5,270 1,181 1,066 7,979 1974 21,025 1,978 1,380 14,250 5,953 9,479 5,438 1,178 1,120 8,030 1975 19,457 1,871 1,275 13,430 5,798 9,010 5,447 1,160 1,138 7,654 1976 20,261 1,921 1,289 13,440 5,745 8,807 5,435 1,108 1,100 7,411 1977 20,889 1,888 1,281 13,350 5,721 8,770 5,473 1,092 1,060 7,461 1978 21,784 1,956 1,220 13,220 5,640 8,751 5,420 1,074 1,023 7,427 1979 22,459 2,071 1,221 13,290 5,556 8,793 5,409 1,067 1,026 7,395 1980 21,942 2,111 1,246 13,630 5,495 8,842 5,485 1,067 1,025 7,081 1981 21,817 2,124 1,252 13,800 5,321 8,598 5,384 1,048 984 6,365 1982 20,286 1,928 1,214 13,740 5,249 8,321 5,277 1,032 946 6,005 1983 19,946 1,879 1,143 14,010 5,136 8,006 5,113 993 941 5,664 1984 20,995 1,954 1,145 14,330 4,997 7,933 4,876 975 953 5,579 1985 20,879 1,960 1,139 14,480 4,854 8,012 4,761 984 968 5,578 1986 20,962 1,989 1,143 14,390 4,742P 8,126 4,715 988 983 5,451 1987 20,935 2,018 1,158 14,200 4,629P NA 4,635 NA 970 NA 1988 21,320 2,104 1,193 14,500 NA NA 4,718 NA 974 NA Continued on the following page. 33 Table 6. Civilian Employment by Economic Sector, 1960-1988 (in thousands)--Continued United Aus- Nether- United Year States Canada tralia Japan France Germany Italy lands Sweden Kingdom Services (3) 1960 38,212 3,264 NA 18,190 7,314 10,419 6,696 2,109 1,550 11,642 1965 42,301 3,934 2,514 20,690 8,581 11,041 7,005 2,349 1,699 12,709 1970 49,031 4,955 3,070 23,770 9,765 11,442 7,656 2,612 2,066 13,066 1971 50,675 5,114 3,178 24,510 9,959 11,653 7,584 2,662 2,118 13,246 1972 52,727 5,330 3,265 24,980 10,173 11,881 7,709 2,713 2,162 13,466 1973 54,234 5,602 3,399 25,880 10,442 12,139 8,009 2,737 2,185 13,870 1974 55,968 5,858 3,520 26,140 10,684 12,255 8,339 2,773 2,246 14,024 1975 57,039 6,108 3,592 26,770 10,825 12,269 8,568 2,801 2,334 14,404 1976 58,989 6,215 3,690 27,290 11,124 12,335 8,828 2,872 2,400 14,474 1977 61,248 6,424 3,757 28,100 11,400 12,481 9,012 2,953 2,458 14,530 1978 63,688 6,661 3,850 28,720 11,659 12,675 9,187 2,974 2,519 14,705 1979 65,519 6,920 3,917 29,440 11,857 12,980 9,471 3,041 2,594 15,068 1980 66,638 7,194 4,053 29,910 12,005 13,224 9,720 3,209 2,650 15,291 1981 67,883 7,418 4,154 30,430 12,146 13,317 10,033 3,308 2,684 15,129 1982 68,886 7,363 4,218 31,160 12,369 13,304 10,311 3,359 2,728 15,135 1983 70,277 7,478 4,224 32,020 12,549 13,290 10,547 3,364 2,753 15,219 1984 72,919 7,650 4,402 32,380 12,662 13,434 10,966 3,371 2,792 15,730 1985 75,006 7,918 4,581 32,620 12,847 13,622 11,340 3,448 2,828 16,138 1986 77,117 8,173 4,794 33,280 13,057P 13,826 11,587 3,558 2,853 16,651 1987 79,832 8,424 4,930 34,120 13,269P 14,065P 11,744 NA 2,933 17,239P 1988 81,966 8,678 5,115 34,710 13,505P 14,274P 12,051 NA 3,000 17,726P NA = Not available. P = Preliminary. (1) Agriculture, forestry, hunting, and fishing. (2) Manufacturing, mining, and construction. (3) Transportation, communication, public utilities, trade, finance, public administration, private household services, and miscellaneous services. Note: For some countries, data have not been fully adjusted for comparability with U.S. definitions. Because of rounding, subtotals may not add to totals. 34 Table 7. Percent Distribution of Civilian Employment by Economic Sector, 1960-1988 United Aus- Nether- United Year States Canada tralia Japan France Germany Italy lands Sweden Kingdom Civilian Employment Each Year 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Agriculture (1) 1960 8.5 13.3 NA 29.5 23.2 14.0 32.5 9.8 15.5 4.7 1965 6.3 10.1 9.7 22.7 17.8 10.9 26.2 7.6 11.5 3.8 1970 4.5 7.6 8.0 16.9 13.5 8.6 20.1 6.2 8.2 3.2 1971 4.4 7.5 7.7 15.5 12.8 8.1 20.1 6.0 7.8 3.2 1972 4.4 6.9 7.8 14.4 12.0 7.7 19.0 5.9 7.5 3.0 1973 4.2 6.5 7.3 13.1 11.2 7.3 18.2 5.8 7.1 3.0 1974 4.2 6.4 6.9 12.6 10.6 7.1 17.4 5.7 6.7 2.8 1975 4.1 6.1 6.9 12.4 10.3 7.0 16.7 5.7 6.5 2.8 1976 3.9 5.9 6.6 11.9 9.9 6.7 16.4 5.6 6.2 2.8 1977 3.7 5.7 6.6 11.6 9.5 6.4 15.8 5.3 6.1 2.8 1978 3.7 5.7 6.3 11.4 9.2 6.1 15.4 5.4 6.1 2.8 1979 3.6 5.7 6.5 10.8 9.0 5.8 14.9 5.3 5.8 2.7 1980 3.6 5.4 6.5 10.1 8.7 5.6 14.2 5.0 5.6 2.6 1981 3.5 5.4 6.5 9.7 8.4 5.5 13.3 4.9 5.6 2.7 1982 3.6 5.3 6.4 9.4 8.2 5.5 12.4 4.8 5.6 2.7 1983 3.5 5.5 6.6 8.9 7.9 5.6 12.3 5.0 5.5 2.7 1984 3.3 5.4 6.2 8.5 7.8 5.5 11.7 5.0 5.2 2.6 1985 3.1 5.1 6.1 8.4 7.6 5.4 11.0 4.9 4.9 2.6 1986 3.1 4.9 6.1 8.1 7.3 5.3 10.7 4.8 4.7 2.5 1987 3.0 4.8 5.8 8.0 7.0 5.2 10.4 NA 4.3 2.4 1988 2.9 4.5 5.9 7.6 6.8 5.0 9.7 NA 4.2 2.3 Continued on the following page. 35 Table 7. Percent Distribution of Civilian Employment by Economic Sector, 1960-1988--Continued United Aus- Nether- United Year States Canada tralia Japan France Germany Italy lands Sweden Kingdom Industry (2) 1960 33.4 32.0 NA 28.5 37.5 45.9 34.2 39.5 40.4 46.1 1965 34.2 32.5 35.8 32.5 38.3 47.3 37.4 40.0 42.3 44.9 1970 33.1 29.8 35.0 35.7 38.4 47.6 39.8 38.0 38.0 43.2 1971 31.7 29.4 34.7 35.9 38.5 47.6 40.0 37.4 37.1 42.0 1972 31.4 29.2 33.9 36.2 38.5 47.0 39.9 36.0 36.3 41.2 1973 32.0 29.5 33.7 37.0 38.7 46.8 39.5 35.6 36.3 40.9 1974 31.4 29.5 33.3 36.8 38.6 45.9 39.5 34.9 36.4 40.6 1975 29.5 28.1 31.9 35.6 37.8 44.4 39.4 34.0 35.8 39.0 1976 29.6 28.5 31.4 35.6 37.2 44.1 38.6 32.7 34.8 38.1 1977 29.7 27.7 30.8 35.1 36.7 43.8 38.7 32.0 33.7 38.0 1978 30.0 27.5 29.7 34.8 36.0 43.5 38.4 32.1 32.4 37.7 1979 30.2 27.7 29.3 34.7 35.4 43.3 38.0 31.6 31.9 37.3 1980 29.3 27.4 28.9 35.1 35.0 43.2 38.1 30.5 31.5 36.2 1981 28.9 27.1 28.6 35.0 34.3 42.5 37.7 29.0 30.6 34.3 1982 27.2 25.4 27.7 34.5 33.6 41.6 37.2 28.0 29.4 33.1 1983 26.8 24.4 26.2 34.4 32.8 40.8 36.2 26.7 29.1 32.0 1984 27.2 24.6 25.8 34.5 31.9 40.4 34.5 27.3 29.0 31.1 1985 26.9 24.3 25.6 34.6 31.0 40.1 33.6 27.2 29.1 30.5 1986 26.6 24.2 24.9 34.2 30.4P 40.0 33.1 25.9 29.1 29.4 1987 26.0 24.2 24.8 33.5 29.8P 39.6P 32.6 NA 28.8 28.6P 1988 25.8 24.6 24.7 33.9 29.4P 39.3P 32.5 NA 28.4 28.0P Continued on the following page. 36 Table 7. Percent Distribution of Civilian Employment by Economic Sector, 1960-1988--Continued United Aus- Nether- United Year States Canada tralia Japan France Germany Italy lands Sweden Kingdom Manufacturing 1960 26.1 24.7 NA 21.7 28.2 34.3 24.0 29.1 31.9 36.0 1965 27.0 23.8 26.2 24.8 27.5 35.9 25.5 28.8 32.8 35.0 1970 26.4 22.3 24.9 27.4 27.5 37.4 27.7 27.0 27.7 34.7 1971 24.7 21.8 24.6 27.4 27.8 37.4 28.0 26.6 27.4 33.9 1972 24.3 21.8 24.0 27.3 27.9 36.8 27.9 25.7 27.2 32.9 1973 24.8 22.0 23.8 27.8 28.2 36.7 27.9 25.3 27.6 32.3 1974 24.2 21.7 23.4 27.6 28.3 36.4 28.1 25.2 28.4 32.4 1975 22.7 20.2 21.7 26.1 27.8 35.6 28.0 25.0 28.1 31.0 1976 22.8 20.3 21.7 25.8 27.3 35.2 27.7 23.8 27.0 30.2 1977 22.7 19.6 21.4 25.3 27.0 35.1 27.6 23.2 26.0 30.4 1978 22.7 19.6 20.3 24.8 26.5 34.8 27.3 22.6 25.0 30.1 1979 22.7 19.9 20.0 24.6 26.1 34.5 26.9 22.1 24.6 29.5 1980 22.1 19.7 19.9 25.0 25.8 34.3 26.9 21.5 24.3 28.3 1981 21.7 19.3 19.6 25.1 25.1 33.6 26.3 20.9 23.4 26.5 1982 20.4 18.2 18.9 24.7 24.7 33.1 25.8 20.6 22.5 25.5 1983 19.8 17.6 18.2 24.8 24.3 32.3 25.0 20.2 22.4 24.3 1984 20.0 17.9 17.7 25.2 23.8 31.9 23.9 19.6 22.5 23.5 1985 19.5 17.5 17.0 25.3 23.1 32.0 23.2 19.4 22.6 23.1 1986 19.1 17.2 16.5 24.9 22.6P 32.2 22.9 19.2 22.8 22.3 1987 18.6 17.0 16.3 24.3 22.0P NA 22.5 NA 22.1 NA 1988 18.5 17.2 16.2 24.4 NA NA 22.6 NA 21.9 NA Continued on the following page. 37 Table 7. Percent Distribution of Civilian Employment by Economic Sector, 1960-1988--Continued United Aus- Nether- United Year States Canada tralia Japan France Germany Italy lands Sweden Kingdom Services (3) 1960 58.1 54.7 NA 41.9 39.3 40.1 33.4 50.7 44.1 49.2 1965 59.5 57.3 54.5 44.8 43.9 41.8 36.5 52.4 46.3 51.3 1970 62.3 62.6 57.0 47.4 48.0 43.7 40.1 55.8 53.9 53.6 1971 63.8 63.1 57.6 48.6 48.7 44.3 39.9 56.6 55.1 54.8 1972 64.2 63.9 58.3 49.4 49.5 45.3 41.2 58.1 56.2 55.8 1973 63.8 63.9 59.0 49.9 50.0 46.0 42.3 58.6 56.6 56.1 1974 64.5 64.2 59.8 50.6 50.7 47.1 43.1 59.4 56.9 56.5 1975 66.4 65.8 61.2 52.0 51.9 48.5 44.0 60.4 57.7 58.3 1976 66.5 65.6 62.0 52.5 52.9 49.2 45.0 61.7 59.0 59.1 1977 66.6 66.6 62.6 53.3 53.8 49.9 45.5 62.7 60.2 59.2 1978 66.3 66.7 64.0 53.8 54.8 50.4 46.2 62.5 61.5 59.5 1979 66.3 66.6 64.2 54.5 55.7 50.9 47.1 63.1 62.3 60.1 1980 67.1 67.2 64.6 54.8 56.3 51.3 47.7 64.5 62.9 61.2 1981 67.6 67.4 64.9 55.3 57.3 52.0 49.0 66.1 63.8 63.0 1982 69.2 69.3 65.9 56.0 58.2 52.8 50.5 67.2 64.9 64.2 1983 69.7 70.0 67.2 56.6 59.3 53.6 51.5 68.3 65.4 65.4 1984 69.4 70.0 68.0 56.9 60.4 54.1 53.8 67.7 65.9 66.3 1985 70.0 70.6 68.3 57.0 61.4 54.5 55.3 67.9 66.1 66.9 1986 70.4 70.9 69.0 57.6 62.3P 54.7 56.2 69.3 66.1 68.2 1987 71.0 71.0 69.4 58.5 63.2P 55.2P 57.0 NA 66.9 69.0P 1988 71.3 70.9 69.4 58.5 63.9P 55.7P 57.8 NA 67.3 69.7P NA = Not available. P = Preliminary. (1) Agriculture, forestry, hunting, and fishing. (2) Manufacturing, mining, and construction. (3) Transportation, communication, public utilities, trade, finance, public administration, private. household services, and miscellaneous services. Note: For some countries data have not been fully adjusted for comparability with U.S. definitions. Because of rounding, subtotals may not add to totals. 38 Table 8. Civilian Unemployment Rates by Sex, 1960-1988 United Nether- United Year States Canada Australia Japan France Germany Italy lands Sweden Kingdom (1) Male 1960 5.4 7.1 NA NA NA .8 3.4 NA NA 2.1 1961 6.4 7.3 NA NA NA .5 2.9 NA 1.0 1.9 1962 5.2 6.0 NA NA 1.0 .4 2.4 NA 1.4 2.7 1963 5.2 5.5 NA NA 1.1 .4 2.1 NA 1.4 3.4 1964 4.6 4.5 .9 NA .9 .3 2.2 NA 1.4 2.4 1965 4.0 3.7 .9 NA 1.0 .2 3.0 NA 0.8 2.1 1966 3.2 3.3 1.1 NA 1.1 .3 3.2 NA 1.3 2.3 1967 3.1 3.9 1.3 NA 1.5 1.4 2.9 NA 2.0 3.5 1968 2.9 4.6 1.2 NA 1.9 1.0 2.9 NA 2.3 3.6 1969 2.8 4.3 1.2 NA 1.5 .6 2.7 NA 1.8 3.5 1970 4.4 5.6 1.1 1.2 1.5 .5 2.5 NA 1.4 3.5 1971 5.3 6.0 1.3 1.2 1.7 .5 2.5 NA 2.4 4.3 1972 5.0 5.8 2.0 1.5 1.8 .7 2.9 NA 2.5 4.8 1973 4.2 4.9 1.6 1.3 1.6 .6 2.7 2.6 2.2 3.6 1974 4.9 4.8 1.9 1.4 1.8 1.5 2.3 2.9 1.7 3.2 1975 7.9 6.2 3.8 1.8 2.9 3.3 2.5 3.9 1.4 5.0 1976 7.1 6.3 3.9 2.2 3.1 3.1 2.7 4.1 1.3 6.4 1977 6.3 7.3 4.6 2.0 3.6 2.9 2.8 3.8 1.5 6.7 1978 5.3 7.5 5.4 2.2 3.9 2.7 2.8 3.6 2.1 6.3 1979 5.1 6.6 5.2 1.9 4.3 2.3 3.0 3.6 1.9 5.6 1980 6.9 6.9 5.1 1.7 4.4 2.3 2.9 4.2 1.7 7.4 1981 7.4 7.0 4.8 2.0 5.5 3.4 3.3 6.9 2.4 11.5 1982 9.9 11.0 6.4 2.1 6.2 5.2 3.8 8.6 3.0 11.8P 1983 9.9 12.0 9.7 2.5 6.6 (2)6.4 4.1 (2)11.1 3.4 12.3P 1984 7.4 11.2 8.7 2.5 8.0 6.4 4.2 11.0 3.0 12.0P 1985 7.0 10.3 7.9 2.4 8.7 6.4 4.3 8.8 2.8 11.5P 1986 6.9 9.3 7.7 2.4 8.8 5.7 (2)5.2 7.9 2.6 11.6P 1987 6.2 8.5 7.8 2.5 8.6 NA 5.5 7.4P (2)1.9 10.7P 1988 5.5 7.4 6.8 2.5 8.1 NA 5.5P NA 1.6 8.6P Continued on the following page. 39 Table 8. Civilian Unemployment Rates by Sex, 1960-1988--Continued United Nether- United Year States Canada Australia Japan France Germany Italy lands Sweden Kingdom (1) Female 1960 5.9 4.9 NA NA NA 1.5 4.1 NA NA 2.3 1961 7.2 5.0 NA NA NA .8 4.1 NA 2.4 2.0 1962 6.2 4.4 NA NA 2.3 .8 3.8 NA 1.7 2.7 1963 6.5 4.4 NA NA 2.5 .6 3.2 NA 2.2 3.3 1964 6.2 4.1 2.6 NA 1.9 .5 3.8 NA 1.8 2.5 1965 5.5 3.5 2.4 NA 2.4 .3 4.4 NA 1.7 2.1 1966 4.8 3.4 2.7 NA 2.6 .3 4.9 NA 2.0 2.1 1967 5.2 3.7 3.2 NA 3.4 1.1 4.7 NA 2.3 2.9 1968 4.8 4.4 3.2 NA 4.3 1.3 5.2 NA 2.1 2.5 1969 4.7 4.7 3.2 NA 3.8 .7 5.4 NA 1.9 2.3 1970 5.9 5.8 2.8 2.2 4.2 .6 5.2 NA 1.7 2.3 1971 6.9 6.6 3.1 3.0 4.6 .8 5.2 NA 2.8 3.3 1972 6.6 7.0 3.9 3.4 4.7 .8 5.9 NA 3.0 3.3 1973 6.0 6.7 3.6 2.6 4.6 .9 6.2 4.3 2.8 2.6 1974 6.7 6.4 4.1 3.2 4.7 1.8 5.2 5.6 2.4 3.0 1975 9.3 8.1 7.0 3.9 6.1 3.6 5.8 8.2 2.0 4.0 1976 8.6 8.4 6.4 3.9 6.9 4.0 6.5 8.6 2.0 5.3 1977 8.2 9.4 7.5 4.3 7.5 4.5 6.8 7.6 2.2 5.8 1978 7.2 9.6 7.9 4.3 7.6 4.4 6.8 8.6 2.4 6.2 1979 6.8 8.8 8.2 4.1 8.5 4.1 7.3 8.8 2.3 5.0 1980 7.4 8.4 7.9 3.3 9.5 3.8 7.4 9.7 2.3 6.3 1981 7.9 8.3 7.4 3.5 10.6 5.1 8.1 12.9 2.7 9.0 1982 9.4 10.9 8.5 3.5 11.2 6.9 8.6 13.4 3.4 10.4P 1983 9.2 11.6 10.4 3.7 11.2 (2)8.3 9.4 (2)14.8 3.5 10.9P 1984 7.6 11.3 9.5 3.3 12.6 8.9 9.4 14.3 3.2 11.3P 1985 7.4 10.7 8.8 3.1 13.0 9.1 9.4 12.7 2.9 10.7P 1986 7.1 9.8 8.7 3.3 13.1 8.5 (2)11.8 13.3 2.7 10.7P 1987 6.2 9.3 8.6 3.7 13.6 NA 12.2 14.6P (2)1.9 9.7P 1988 5.6 8.3 7.9 3.2 13.3 NA 12.3P NA 1.6 7.9P NA = Not available. P = Preliminary. (1) For 1977-80 and 1984-88, rates are based on the special surveys taken in March 1977-80 and February 1984-88. Rates for 1970-76 are based on adjustment factors from the March 1977 survey and for 1981-83, on March 1980 and February 1984 adjustment factors. (2) Break in series. 40 Table 9. Civilian Unemployment Rates by Age, 1984-1988- Age United Aus- Ger- United Group States Canada tralia Japan France many Italy Sweden Kingdom (1) (1) (1) 1984 All working ages 7.5 11.2 9.0 2.8 9.6 6.7 5.9 3.1 11.8 Under 25 years 14.0 17.8 16.8 5.0 26.2 10.5 21.9 6.1 19.7 Teenagers (2) 18.9 20.0 22.3 7.0 37.8 11.6 29.8 5.0 22.3 20-24 years 11.5 16.6 12.9 4.4 23.6 9.8 17.9 6.7 17.9 25 years and over 5.8 9.3 6.2 2.4 6.7 5.8 2.8 2.6 9.5 1985 All working ages 7.2 10.5 8.3 2.6 10.3 6.9 6.0 2.8 11.2 Under 25 years 13.6 16.4 15.2 4.8 27.6 10.0 22.1 5.8 17.7 Teenagers (2) 18.6 18.7 20.3 7.5 36.6 10.6 30.4 4.6 19.8 20-24 years 11.1 15.1 11.5 4.2 25.6 9.6 18.3 6.4 16.4 25 years and over 5.6 8.7 5.9 2.3 7.5 6.2 2.9 2.3 9.3 1986 All working ages 7.0 9.5 8.1 2.8 10.3 6.7 (3)7.5 2.6 11.2 Under 25 years 13.3 15.1 15.0 5.2 25.3 8.0 (3)25.5 5.7 18.0 Teenagers (2) 18.3 16.8 20.1 7.5 31.3 7.0 (3)33.0 4.4 20.1 20-24 years 10.7 14.1 11.2 4.6 24.0 8.5 (3)22.1 6.3 16.7 25 years and over 5.4 8.0 5.7 2.5 7.9 6.3 (3)3.9 2.1 9.2 1987 All working ages 6.2 8.8 8.1 2.9 10.8 6.9 NA (3)1.9 10.7 Under 25 years 12.2 13.7 14.9 5.3 24.7 7.6 NA (3)4.1 15.8 Teenagers (2) 16.9 15.1 20.0 8.1 28.4 6.9 NA (3)3.9 18.0 20-24 years 9.7 12.8 11.1 4.5 24.0 8.0 NA (3)4.5 14.3 25 years and over 4.8 7.5 5.9 2.5 8.6 6.7 NA (3)1.4 9.2 1988 All working ages 5.5 7.8 7.2 2.5 10.3 NA NA 1.6 8.8P Under 25 years 11.0 12.0 13.4 4.9 23.6 NA NA 3.3 12.8P Teenagers (2) 15.3 13.2 17.4 7.5 24.2 NA NA 3.3 13.8P 20-24 years 8.7 11.2 10.4 4.2 23.5 NA NA 3.6 12.1P 25 years and over 4.2 6.7 5.3 2.2 8.4 NA NA 1.3 7.6P NA = Not available. P = Preliminary. (1) French data are for March; German data are for June; and U.K. data are for April-June. (2) 16-to 19-year-olds in the United States, France, Sweden, and the United Kingdom; 15-to 19- year-olds in Canada, Australia, and Japan; and 14-to 19-year olds in Germany and Italy. (3) Break in series. 41 Table 10. BLS, OECD, and EUROSTAT Comparative Unemployment Rates, Selected Countries, 1984-1988 OECD BLS Series SURS EUROSTAT Civilian Basis Total Basis Total Basis Civilian Basis (1) 1984 France 10.0 9.7 9.7 9.9 Germany 7.4 7.2 7.1 7.1 Italy 5.9 5.8 9.3 9.5 Netherlands 12.3 12.1 11.8 12.5 United Kingdom 11.7 11.6 11.7 11.4 1985 France 10.4 10.2 10.2 10.3 Germany 7.5 7.3 7.2 7.3 Italy 6.0 5.9 9.6 9.4 Netherlands 10.2 10.0 10.6 10.4 United Kingdom 11.2 11.1 11.2 11.5 1986 France 10.6 10.4 10.4 10.4 Germany 6.9 6.7 6.4 6.5 Italy (2)7.5 (2)7.4 10.5 10.6 Netherlands 10.0 9.9 9.9 10.3 United Kingdom 11.2 11.2 11.2 11.5 1987 France 10.8 10.5 10.5 10.5 Germany (2)6.4 (2)6.3 6.2 6.4 Italy 7.9 7.7 11.2 10.1 Netherlands 10.0 9.9 9.6 10.2 United Kingdom 10.2 10.2 10.2 10.6 1988 France 10.4 10.1 10.1 10.2 Germany 6.4 6.3 6.2 6.4 Italy 7.9 7.8 11.3 10.6 Netherlands 10.1 9.9 9.5 10.3 United Kingdom 8.3 8.2 8.3 8.7 NA = Not available. (1) Excludes conscripts but includes career military. (2) Break in series. 42 WHITE HOUSE LIBRARY AND RESEARCH CENTER Room 308 x7000 TO: Bob Simon ROOM 111 ½ DATE 10/6/89 To Keep To Borrow Due Date Per Your Request FYI Message: From: Martha Brown PAGE FOR RELEASE: 9:30 A.M., E.D.T. FRIDAY, OCTOBER 6, 1989 Advance copies of this statement are made available to the press with the explicit understanding that, prior to 8:30 a.m. Eastern time: (1) Wire services will not move over their wires COPY based on information in this statement, (2) electronic media will not Feed such information to member stations, and (3) representatives of news organizations will not contact anyone outside the Bureau of Labor Statistics to ask questions or solicit comments about information in this statement. Statement of Dr. Janet L. Norwood Commissioner Bureau of Labor Statistics before the Joint Economic Committee UNITED STATES CONGRESS October 6, 1989 Mr. Chairman and Members of the Committee: It is a pleasure to be back this month to provide the Committee with a few comments to supplement this morning's Employment Situation release. Employment showed little srowth in September, and the unemployment rate remained within the nerrow nanse in which it has been since the beginning of spring. The overall jobless rate (including the resident armed forces), at 5.2 percent, and the civilian worker rate, at 5.3, mere both about the same as the 5.1 and 5.2 percent fisures of the previous month. A slowdown in job snowth can be seen in both of our surveys. The number of Jobs reported in the business survey rose by 210,000 in September (after seasonel adjustment), but about 75,000 of that increase represented a return to company payrolls of workers who had been on strike in August. The household survey's estimate of total civilian PAGE -2- employment was essentially unchanged in September and, in fact, has not shown any real srowth since June. The most disturbing feature of September's business survey data WBS the larse decline in manufacturing employment - 105,000. One-third of this decline took place in automobile factories, where inventory controls have led to wide fluctuations in employment levels over recent. months. Real growth in overall factory employment ended last March: since then, we have lost 135,000 factory jobs. Several individual manufacturing industries have had small job losses for several months, and these were joined by others in September, as 16 of the 20 major manufacturing industries experienced declines after seasonal adjustment. Further evidence of weakness comes from the manufacturing diffusion index, which shows that twice as meny of the 141 industries experienced job losses as had job sains. In spite of these developments, it should be noted that the factory workweek remains near its all-time hish. September employment in the construction industry WB5 unchansed from Ausust. Since the beginning of the Year, the number of construction Jobs has increased by only about 50,000. Employment dipped slishtly in the mining industry, but remained about 15,000 above the January level, The real strensth in the September numbers was in the services industry, where about 105,000 Jobs were added from Ausust to September. Employment in business and health services increased by 45,000 each. This was a very strons job sain for business services, the bissest in a Year and a half. The return to work of strikers, mostly in the telephone industry, accounted for nearly all of the 90,000 increase in transportation and public utilities, Most of the 95,000 increase in government employment represented an expansion in local education at the besinning of the school Year, Little movement has occurred in most of the household survey measures in recent months, and the trend continued in September. The civilian jobless rate has been at 5.2 or 5.3 percent in every month since April, and the quarterly rates have actually been in that narrow ranse for a full year now. The proportion of the population that is at work, although somewhat lower than in recent months, is still near its record hish. In September, the unemployment rate for adult women fell a bit to 4.5 percent, but the Jobless rate for adult men rose four-tenths of a percentase point to 4.3 PAGE percent. And the volatile rate for black teenagers jumped to 37.3 percent. Data on discouraged workers, coverins the third quarter of the year, were published this morning. There were 315,000 discourased workers in the third quarter of 1989; -3- the series has been trending downward slowly, with the decline totaling 115,000 over the year. In summary, the labor market data released today show widespread employment weakness in manufacturing, but continued strength in the services industry. The unemployment rate remains close to 5 percent, the lowest ranse it has been at in 15 years. Mr colleasues and I will now be slad to answer any questions YOU may have, PAGE Unemployment rates of all civilian workers by alternative seasonal adjustment methods X-11 ARIMA method IX-11 method : + Month IUnad- I :Concurrent: : 12-month : (official IRange and |justed|Official Mas first :Concurrent Stable Total (Residual Textrapola-1 method (cols, Year rate Iprocedure computed) ({revised) tion Ibefore 1980)! 2-9) + (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 1988 September 5.2 5.4 5.4 5.4 5.4 5,4 5.4 5.4 5.4 October 5.0 5.3 5.3 5.3 ; 5.3 ; 5.3 5.4 5.3 5.3 .1 November : 5.2 5.4 5.4 5.3 5.4 5.3 5.4 5.4 5.4 .1 December 5.0 ; 5,3 5.3 5.3 : 5.3 ; 5.3 5,4 5.3 5,4 .1 1989 January -- 6.0 5.4 5.4 ; 5.4 5.5 5.4 -- 5.3 5,4 5.5 1.2 February : 5.6 5,1 5.2 5.2 5.2 5.2 5.0 5.1 5.2 .2 March 5.2 5.0 5.0 5.0 5.0 5.0 ; 4.8 5.0 5.0 .2 April 5.1 5.3 5.3 5.3 5.3 5.3 : 5.3 5.3 5.3 May ; 5.0 5.2 5.2 5.2 5.2 5.1 -- 5.3 5.2 5.1 .2 June : 5.5 5.3 5.3 5.3 5.2 5.4 ; 5.4 5.3 5.3 .2 July I 5.3 5.2 5.2 5,3 5,2 5.3 5.3 5.3 5.3 .1 August ; 5.1 5.2 5.2 5.2 ; 5.1 -- 5.2 5.3 5,2 5,2 .2 September ; 5.1 5.3 5.3 5.3 5.3 5.3 5.2 5.3 5,3 .1 + SOURCE: U.S. DEPARTMENT OF LABOR Bureau of Labor Statistics October 1989 1 0 0 1 1 PAGE Technical information: (202) 523-1371 USDL 89-480 523-1944 523-1959 TRANSMISSION OF MATERIAL IN THIS Media Contact: 523-1913 RELEASE IS EMBARGOED UNTIL 8:30 A.M. (EDT), FRIDAY, OCTOBER 6, 1989 THE EMPLOYMENT SITUATION: SEPTEMBER 1989 Payroll employment showed little growth and unemployment was about unchanged in September, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The overall jobless rate was 5.2 percent and the civilian worker rate was 5.3 percent: they had been 5.1 and 5.2 percent, respectively, in August. Nonagricultural payroll employment, as measured by the survey of business establishments, rose by 210,000 in September to 109.1 million, but about 75,000 of the increase represented a return to work of persons who had been on strike. Total civilian employment, as measured by the survey of households, was about unchanged over the month. Unemployment (Household Survey Data) The number of persons unemployed, 6.6 million, and the civilian worker unemployment rate, 5,3 percent, were essentially unchanged in September. Both measures have shown little movement since the spring, Jobless rates were about unchanged over the month for teenesers (15.1 percent), whites (4.5 percent), Hispanics (8.3 percent), and blacks (11.6 percent), a although the rate for black teenagers rose to 37.3 percent. While the unemployment rate for adult men increased 0,4 percentage point to 4.8 percent, the rate for adult women edsed down to 4.5 percent, (See tables A-2 and A-3.) Civilian Employment and the Labor Force (Household Survey Data) Total civilian employment was virtually unchanged in September at a seasonally adjusted level of 117,5 million. At 62.9 percent, the employment-population ratio (the proportion of the workins-ase population that was employed) remained close to the level that has held throughout 1989. (See table A-2.) The civilian labor force (124.0 million) and the labor force participation rate (66,4 percent) were also about the same as in the previous month, after seasonal adjustment. The labor force has increased by 2.0 million over the past 12 months. (See table A-2.) Table A. Major indicators of labor market activity, seasonally adjusted Quarterly Monthly data averages :Aug.- Category 1989 1989 |Sept. Ichange II III July Aus. Sept. HOUSEHOLD DATA Thousands of persons PAGE 2 Labor force 1/ 125,4641 125,690 125,6221 125,7061 125,7421 36 Total employment 1/. 118,964| 119,1891 119,1251 119,2851 119,158: -127 Civilian labor force 123,790 124,005: 123,956 124,018: 124,040 22 Civilian employment. 117,289: 117,504| 117,459) 117,5971 117,456 -141 Unemployment 6,5011 6,5011 6,4971 6,4211 6,5841 163 Not in labor force 62,3881 62,5971 62,5271 62,5801 62,6861 106 Discourased workers. 8691 8151 N.A.I N.A.: N.A. N.A. ; Percent of labor force Unemployment rates: All workers 1/ 5.21 5.21 5.21 5.11 5.21 0.1 All civilian workers 5.31 5.21 5.21 5.21 5.31 .1 Adult men 4.41 4.51 4.31 4.41 4.81 .4 Adult women 4.81 4.71 5.01 4.71 4.51 -.2 Teenagers 15.11 14.81 14.71 14.51 15.11 .6 White 4.51 4.51 4.61 4.51 4.51 .0 Black 11.21 11.21 10.91 11.11 11.61 .5 Hispanic origin 8.11 3.81 9.01 9.01 8.31 -,7 ; ESTABLISHMENT DATA Thousands of Jobs Nonfarm employment 108,339lp108,895| 108,7671p108,855:p109,064) F209 Goods-producing 25,6641 p25,651 25,6691 ₱25,6961 p25,588lp-108 Service-producins 82,6761 P83,2441 83,0981 -83,1591 P83,4761 F317 Hours of work Average weekly hours: Total private 34.71 P34.71 34.81 P34.61 P34.61 p0 Manufacturing 41.11 p41.01 41.01 p40.91 P41.01 p0.1 Overtime 3.81 P3.81 3.91 =3.71 P3.81 P.1 1/ Includes the resident Armed Forces. P=Preliminary. =not available. Discouresed Workers (Household Survey Data) At a seasonally adjusted level of 815,000 in the July-September period, the number of discouraged workers--Persons who want to work but have not looked for jobs because they believe they cannot find any-was about unchanged from the second quarter. Over the past Year, the number of discourased workers has declined by about 115,000. -(See table A-14.) Industry Parroll Employment (Establishment Survey Data) Total nonagricultural payroll employment increased by 210,000 in September to 109.1 million, seasonally adjusted. This increase would have been much smaller if not for the return to payrolls of about 75,000 workers involved in strikes in August. The diffusion index of 349 industries fell below 50 percent, indicating that more industries lost than gained jobs in September. (See tables B-1 and B-6.) In the goods-producins sector, factory employment fell by 105,000. Whereas the bulk of the decrease occurred in the durable soods sector, it PAGE was very widespread, with 16 of the 20 individual manufacturing industries showing employment reductions. The largest occurred in the auto industry- 35,000. Employment in the electrical equipment industry fell by 10,000 over the month and has declined by 55,000 since last November. In primary metals, where employment had changed little since late last Year, the number of workers fell by 10,000 in September. Fabricated metal products has had small job losses for 7 consecutive months. Employment in apparel and other textile products fell by 10,000 over the month, returning to last October's employment level. The minins industry also showed a small job loss, while construction employment was unchanged for the second consecutive month. In the service-producins sector, employment in transportation and public utilities increased by 90,000 over the month, primarily reflecting the return to work of telephone workers from strikes. Services industry employment rose by 105,000, as both business and health services showed strons job gains of 45,000, Government employment was also a strons sainer, with an increase of 95,000 over the month; most of this occurred in local education. Finance, insurance, and real estate employment srew by 10,000 in September. Wholesale trade showed a small job sain, while employment-in retail trade was little changed; job growth in these two industries has been quite slow for most of this year, Despite the slower srowth in recent months, total payroll employment in September was nearly 2.9 million above its Year-ase level. Virtually all of this sain-2.6 million--took place in the`service-producins sector. Weekly Hours (Establishment Survey Data) The average workweek for production or nonsupervisory workers on private nonagricultural payrolls was unchanged in September at 34.6 hours, seasonally adjusted. The manufacturing workweek and factory overtime both edged UP 0.1 hour to 41.0 and 3.8 hours, respectively, offsetting small decreases in the previous month. (See table B-2.) The index of assregate weekly hours of private production or nonsupervisory workers rose 0.2 percent in September to 128.6 (1977=100), after seasonal adjustment. This follows a decrease of 0.6 percent in the previous month. The manufacturins index fell 0.7 percent to 95.6. (See table B-5.) Hourly and Weekly Earnings (Establishment Survey Data) Both average hourly and average weekly earnings of private production or nonsupervisory workers increased 0.5 percent in September, after seasonal adjustment. Prior to seasonal adjustment, average hour earnings rose 16 cents to $9.76 and average weekly earnines increased $3.63 to $338.67, as many rouths-earning comparatively low wases left summer jobs and returned to school. Over the Year, average hourly earnings increased by 3.8 percent, while average weekly earnings rose 3.5 percent. (See tables B-3 and B-4.) The Employment Situation for October 1989 will be released on Friday, November 3, at 8:30 A.M. (EST). PAGE 4 HOUSEHOLD DATA HOUSEHOLD DATA 20. PAGE 1 Table A-1. Employment status of the population, including Armed Forces in the United States, by sex (Numbers in thousands) Not seasonally adjusted Seasonally adjusted1/ Employment status and sex Sept. Aus. Sept. Sept. May June July Aus. Sept. 1988 1989 1989 1988 1989 1989 1989 1989 1989 TOTAL Noninstitutional population2/ 186,666 188,286 188,428 186,666 187,854 187,995 188,149 188,286 188,428 Labor force2/ 123,546 127,132 125,530 123,688 125,283 125,768 125,622 125,706 125,742 Participation rate3/ 66.2 67.5 66.6 66.3 66.7 66.9 66.8 66.8 66.7 Total employed2/ 117,178 120,780 119,200 117,074 118,888 119,207 119,125 119,285 119,158 Employment-Population ratio4/ 62.8 64.1 63.3 62.7 63.3 63.4 63.3 63.4 63.2 Resident Armed Forces 1,704 1,688 1,702 1,704 1,673 1,666 1,666 1,688 1,702 Civilian employed 115,474 119,092 117,498 115,370 117,215 117,541 117,459 117,597 117,456 Agriculture 3,250 3,633 3,329 3,176 3,112 3,096 3,219 3,307 3,257 Nonagricultural industries 112,225 115,460 114,169 112,194 114,102 114,445 114,240 114,290 114,199 Unemployed 6,368 6,352 6,330 6,614 6,395 6,561 6,497 6,421 6,584 Unemployment rate5/ 5.2 5.0 5.0 5.3 5.1 5.2 5.2 5,1 5.2 Not in labor force 63,119 61,155 62,899 62,978 62,571 62,228 62,527 62,580 62,686 Men, 16 Years and over Noninstitutional population2/ 89,577 90,384 90,456 89,577 90,167 90,237 90,315 90,384 90,456 Labor force2/ 63,465 70,587 69,123 68,604 69,114 69,507 69,245 69,337 69,272 Participation rate3/ 76.4 78.1 76.4 76.6 76.7 77.0 76.7 76.7 76.6 Total employed2/ 65,282 67,431 65,875 65,015 65,713 66,110 65,961 65,934 65,601 Employment-Population ratio4/ 72.9 74.6 72.8 72.6 72.9 73.3 73.0 72.9 72.5 Resident Armed Forces 1,540 1,519 1,531 1,540 1,511 1,501 1,499 1,519 1,531 Civilian employed 63,742 65,912 64,344 63,475 64,202 64,609 64,462 64,415 64,070 Unemployed 3,183 3,157 3,248 3,539 3,401 3,397 3,284 3,403 3,672 Unemployment rate5/ 4.6 4.5 4,7 5.2 4.9 4.9 4.7 4.9 5.3 Women, 16 years and over Noninstitutional population2/ 97,089 97,902 97,972 97,089 97,687 97,758 97,834 97,902 97,972 Labor force2/ 55,082 56,544 56,407 55,084 56,169 56,261 56,377 56,370 56,470 Participation rate3/ 56.7 57.8 57.6 56.7 57.5 57.6 57.6 57.6 57.6 Total employed2/ 51,896 53,349 53,325 52,059 53,175 53,097 53,164 53,352 53,557 Employment-Population ratio4/ 53.5 54.5 54.4 53.6 54.4 54.3 54.3 54.5 54.7 Resident Armed Forces 164 169 171 -164 162 165 167 169 171 Civilian employed 51,732 53,180 53,154 51,895 53,013 52,932 52,997 53,183 53,386 Unemployed 3,186 3,195 3,081 3,025 2,994 3,164 3,213 3,018 2,912 Unemployment rate5/ 5,8 5.7 5.5 5.5 5.3 5.6 5.7 5.4 5.2 1/ The population and Armed Forces fisures are not adjusted for seasonal variation; therefore, identical numbers appear in the unadjusted and seasonally adjusted columns. 2/ Includes members of the Armed Forces stationed in the United States. 3/ Labor force as a percent of the noninstitutional population. 4/ Total employment as a percent of the neninstitutional population. 5/ Unemployment as a percent of the labor force (including the resident Armed Forces). HOUSEHOLD DATA PAGE Table A-2. Employment status of the civilian population by sex and ase (Numbers in thousands) Not seasonally adjusted Seasonally adjusted1/ Employment status, sex, and age Sept. Aus. Sept. Sept. May June July Aug. Sept. 1988 1989 1989 1988 1989 1989 1989 1989 1989 TOTAL Civilian noninstitutional population 184,962 186,598 186,726 184,962 186,181 186,329 186,483 186,598 186.726 Civilian Tabor force 121,842 125,444 123,828 121,984 123,610 124,102 123,956 124,018 124-040 Participation rate 65.9 67.2 66.3 66.0 66.4 66.6 66.5 66.5 66.4 Employed 115,474 119,092 117,498 115,370 117,215 117,541 117,459 117,597 117,456 Employment-Population ratio2/ 62.4 63.8 62.9 62.4 63.0 63.1 63.0 63.0 62,9 Unemployed 6,368 6,352 6,330 6,614 6,395 6,561 6,497 6,421 6,584 Unemployment rate 5.2 5.1 5.1 5.4 5.2 5.3 5.2 5.2 5.3 Men, 20 years and over Civilian noninstitutional population 80,751 81,754 81,790 80,751 81,524 81,592 81,679 81,754 81,790 Civilian labor force 62,942 64,167 63,771 62,884 63,503 63,831 63,656 63,643 63,721 Participation rate 77.9 78.5 78.0 77.9 77.9 78.2 77.9 77.8 77.9 Employed 60,402 61,603 61,113 59,979 60,798 61,093 60,921 60,853 60,683 Employment-Population ratio2/ 74.8 75.4 74.7 74.3 74.6 74.9 74.6 74.4 74.2 Agriculture 2,325 2,529 2,419 2,249 2,284 2,256 2,342 2,364 2,339 Nonagricultural industries 58,077 59,074 58,694 57,730 58,514 58,837 58,579 58,489 58,344 Unemployed 2,540 2,564 2,658 2,905 2,705 2,737 2,734 2,790 3,038 Unemployment rate 4.0 4.0 4.2 4.6 4.3 4.3 4.3 4.4 4,8 Women, 20 Years and over Civilian moninstitutional population 89,735 90,684 90,771 89,735 90,432 90,526 90,607 90,684 90-771 Civilian labor force 51,172 52,000 52,558 50,991 52,171 52,231 52,463 52,373 52,443 Participation rate 57.0 57.3 57.9 56.8 57.7 57.7 57.9 57,8 57.8 Employed 48,556 49,352 50,040 43,535 49,690 49,661 49,850 49,905 50-089 Employment-Population ratio2/ 54.1 54.4 55.1 54.1 54.9 54.9 55.0 55.0 55.2 Asriculture 642 682 701 638 628 610 627 644 701 Nonesricultural industries 47,914 48,670 49,339 47,897 49,062 49,051 49,223 49,261 49,388 Unemployed 2,616 2,648 2,518 2,456 2,480 2,570 2,613 2,468 2,353 Unemployment rate 5.1 5.1 4.8 4.8 4,8 4.9 5.0 4.7 4,5 Both sexes, -16 to 19 years Civilian noninstitutional population 14,477 14,160 14,166 14,477 14,224 14,211 14,196 14,160 14,166 Civilian labor force 7,728 9,276 7,498 8,109 7,936 8,040 7,837 8,003 7,876 Participation rate 53.4 65.5 52.9 56.0 55.8 56.6 55.2 56,5 5.6 Employed 6,516 3,137 6,345 6,856 6,726 6,786 6,687 6,840 6,383 Employment-Ropulation ratio2/ 45.0 57.5 44.8 47.4 47.3 47.8 47,1 48.3 47.2 Agriculture 282 422 209 289 200 230 249 300 216 Nonesricultural industries 6,234 7,715 6,136 6,567 6,526 6,556 6,438 6,540 6-467 Unemployed 1,212 1,140 1,153 1,253 1,210 1,254 1,150 1,163 1,193 Unemployment rate 15.7 12.3 15.4 15.5 15.2 15.6 14.7 14.5 15.1 1/ The population fisures are not adjusted for seasonal variation; therefore, PAGE 2 identical numbers appear in the unadjusted and seasonally adjusted columns. 2/ Civilian employment as a percent of the civilian noninstitutional population. HOUSEHOLD DATA HOUSEHOLD DATA PAGE Table A-3. Employment status of the civilian population by race, sex, ase, and Hispanic orisin (Numbers in thousands) Not seasonally adjusted Seasonally adjusted1/ Employment status, race, sex, age, and Hispanic origin Sept. Aus. Sept. Sept. Mar June July Aus. Sept. 1988 1989 1989 1988 1989 1989 1989 1989 1989 WHITE Civilian noninstitutional population 158,422 159,470 159,549 158,422 159,200 159,297 159,400 159,470 159,549 Civilian labor force 104,959 107,597 106,195 105,036 106,164 106,455 106,424 106,446 106,325 Participation rate 66.3 67.5 66.6 66.3 66.7 66.8 66.8 66.8 66.6 Employed 100,177 102,938 101,600 100,058 101,465 101,693 101,581 101,670 101,535 Employment-Population ratio2/ 63.2 64.6 63.7 63.2 63.7 63.8 63.7 63.8 63.6 Unemployed 4,782 4,659 4,595 4,978 4,699 4,762 4,843 4,777 4,791 Unemployment rate 4.6 4.3 4.3 4.7 4.4 4.5 4.6 4.5 4.5 - Men, 20 years and over Civilian labor force 54,872 55,766 55,433 54,839 55,249 55,557 55,437 55,377 55,413 Participation rate 78.4 78.8 78.3 78.3 78.3 78.7 78.4 78.3 78.3 Employed 52,910 53,868 53,416 52,579 53,248 53,500 53,343 53,282 53,097 Emeloyment-Population ratio2/ 75.6 76.2 75.5 75.1 75.5 75.8 75.5 75.3 75.0 Unemployed 1,962 1,898 2,017 2,260 2,001 2,057 2,094 2,095 2,316 Unemployment rate 3.6 3.4 3.6 4.1 3.6 3.7 3.8 3.8 4.2 Women, 20 years and over Civilian labor force 43,397 43,886 44,358 43,191 44,084 44,050 44,302 44,169 44,192 Participation rate 56.7 56.8 57.4 56.4 57.2 57.1 57.4 57.2 57.2 Employed 41,495 41,948 42,570 41,413 42,282 42,236 42,411 42,372 42,527 Employment-Population ratio2/ 54.2 54.3 55,1 54.1 54.9 54.8 55.0 54.9 55.0 Unemployed 1,902 1,938 1,788 1,778 1,803 1,814 1,891 1,798 1,665 Unemployment rate 4.4 4.4 4.0 4.1 4.1 4.1 4.3 4.1 3.8 Both sexes, 16 to 19 Years Civilian labor force 6,690 7,945 6,405 7,006 6,831 6,848 6,685 6,900 6,720 Participation rate 56.7 69.1 55.9 59.4 59.0 59.2 57.9 60.0 58.6 Employed 5,772 7,122 5,614 6,066 5,936 5,957 5,827 6,016 5,910 Employment-Population ratio2/ 48.9 61.9 49.0 51.4 51.3 51.5 50.5 52.3 51.6 Unemployed 918 823 790 940 895 891 858 884 810 Unemployment rate 13.7 10.4 12.3 13.4 13.1 13.0 12.8 12.8 12.1 Men 14.2 10.3 12.9 14,5 14.8 13.4 12.4 12.9 13.3 Women 13.2 10.4 11.7 12.3 11.2 12.6 -13.4 12.7 10.8 BLACK Civilian noninstitutional population 20,762 21,060 21,085 20,762 20,986 21,012 21,038 21,060 21,085 Civilian labor force 13,178 13,694 13,481 13,201 13,444 13,600 13,555 13,448 13,515 Participation rate 63.5 65.0 63.9 63.6 64.1 64.7 64.4 63.9 64.1 Employed 11,764 12,197 11,956 11,758 11,968 11,982 12,082 11,958 11,940 Employment-Porulation ratio2/ 56.7 57.9 56.7 56.6 57.0 57.0 57.4 56.8 56.6 Unemployed 1,414 1,497 1,524 1,443 1,476 1,618 1,473 1,490 1,574 Unemployment rate 10.7 10.9 11.3 10.9 11.0 11.9 10.9 11.1 11.6 Men, 20 Years and over Civilian labor force 6,126 6,263 6,246 6,117 6,207 6,200 6,205 6,189 6,247 Participation rate 74.3 74.7 74.6 74.2 74.3 74.1 74.1 73.8 74.7 PAGE 2 Employed 5,620 5,686 5,682 5,563 5,622 5,619 5,629 5,530 5,620 Emplorment-population ratio2/ 68.1 67.8 67.9 67.5 67.3 67.2 67.2 66.6 67.2 Unemployed 506 578 564 554 586 581 576 609 627 Unemployment rate 8.3 9.2 9.0 9.1 9.4 9.4 9.3 9,8 10.0 Women, 20 years and over Civilian labor force 6,192 6,338 6,369 6,174 6,340 6,405 6,394 6,359 6,356 Participation rate 59.9 60.3 60.6 59.8 60.6 61.2 61.0 60.5 60.4 Employed 5,558 5,710 5,731 5,575 5,740 5,732 5,759 5,762 5,748 Employment-population ratio2/ 53.8 54.4 54.5 54.0 54.9 54.7 54.9 54.9 54.6 Unemployed 633 628 639 599 600 674 635 597 607 Unemployment rate 10.2 9.9 10.0 9.7 9.5 10.5 9.9 9.4 9.6 Both sexes, 16 to 19 years Civilian labor force 861 1,092 865 910 897 994 956 900 912 Participation rate 39.5 50.3 39.4 41.7 41.3 45.7 44.0 41.4 41.5 Employed 585 801 544 620 606 631 694 616 572 Employment-Population ratio2/ 26.8 36.9 24.7 28.4 27,9 29.0 31.9 28.3 26.0 Unemployed 275 291 322 290 291 363 262 284 340 Unemployment rate 32.0 26.6 37.2 31.9 32.4 36.5 27.4 31.6 37.3 Men 32.5 24.6 34.4 31.9 36.9 33.5 22.1 30.0 34.1 Women 31.5 28.9 39.6 31.9 28.4 40.2 33.1 33.4 40.3 HISPANIC ORIGIN Civilian noninstitutional population 13,419 13,853 13,894 13,419 13,731 13,772 13,813 13,853 13,894 Civilian labor force 9,086 9,494 9,332 9,061 9,428 9,272 9,433 9,364 9,326 Participation rate 67.7 68.5 67.2 67.5 68.7 67.3 68.3 67.6 67.1 Employed 8,444 3,666 8,610 8,378 8,686 8,524 8,587 3,521 8,550 Employment-Population ratio2/ 62.9 62.6 62.0 62.4 63.3 61.9 62.2 61.5 61.5 Unemployed 642 828 722 683 742 748 846 843 776 Unemployment rate 7.1 8.7 7.7 7.5 7,9 8.1 9.0 9,0 8.3 1/ The population figures are not adjusted for seasonal variation; therefore, identical numbers appear in the unadjusted and seasonally adjusted columns. 2/ Civilian employment as a percent of the civilian noninstitutional population, NOTE: Detail For the above race and Hispanic-orisin sroups will not SUM to totals because data for the "other races" group are not presented and Hispanics are included in both the white and black population groups, HOUSEHOLD DATA HOUSEHOLD DATA PAGE Table A-4. Selected employment indicators (In thousands) Not seasonally adjusted Seasonally adjusted Category Sept. Aus. Sept. Sept. May June July Aug. Sept. 1988 1989 1989 1988 1989 1989 1989 1989 1989 CHARACTERISTIC Civilian employed, 16 years and over 115,474 119,092 117,498 115,370 117,215 117,541 117,459 117,597 117,456 Married men, spouse present 40,815 40,880 40,856 40,513 40,902 41,102 41,089 40,636 40,572 Married women, spouse present 29,031 28,665 29,608 28,836 29,739 29,481 29,552 29,220 29,461 Women who maintain families 6,188 6,298 6,379 6,253 6,331 6,403 6,456 6,342 6,437 MAJOR INDUSTRY AND CLASS OF WORKER Agriculture: Wase and safary workers 1,626 1,958 1,686 1,612 1,610 1,550 1,695 1,803 1,671 Self-employed workers 1,500 1,494 1,523 1,421 1,358 1,412 1,434 1,420 1,441 Unpaid family workers 123 181 120 137 127 126 126 137 135 Nonagricultural industries: Wase and salary workers 103,400 106,390 105,287 103,501 105,245 105,519 105,321 105,259 105,355 Government 17,035 16,887 17,513 17,145 17,230 17,261 17,519 17,591 17,619 Private industries 86,365 89,503 87,775 86,356 88,015 88,259 87,803 87,668 87,737 Private households 1,077 1,217 1,011 1,119 1,128 1,140 1,093 1,146 1,054 Other industries 85,288 88,286 86,764 85,237 86,887 87,118 86,710 86,522 86,682 Self-employed workers 8,592 8,797 8,586 8,570 8,516 8,570 8,606 8,625 8,569 Unpaid family workers 232 273 296 230 322 241 239 264 296 PERSONS AT WORK PART TIME1/ All industries: Part time for economic reasons 4,704 5,125 4,487 5,097 4,837 4,957 4,750 4,785 4,882 Slack work 2,041 2,250 2,097 2,266 2,296 2,318 2,311 2,282 2,330 Could only find part-time work 2,191 2,415 1,991 2,389 2,343 2,289 2,138 2,107 2,171 Voluntary part time 15,375 12,460 15,666 15,270 15,316 15,416 15,652 15,614 15,542 Nonagricultural industries: Part time for economic reasons 4,458 4,849 4,229 4,862 4,609 4,801 4,505 4,553 4,612 Slack work 1,385 2,084 1,935 2,102 2,102 2,190 2,185 2,129 2,174 Could only find part-time work 2,113 2,309 1,910 2,317 2,301 2,236 2,057 2,024 2,090 Voluntary part time 14,906 11,985 15,215 14,819 14,976 14,977 15,219 15,094 15,109 1/ Excludes persons "with a job but not at work" durins the survey period for such reasons as vacation, illness, or industrial dispute. HOUSEHOLD DATA HOUSEHOLD DATA PAGE 1 Table A-5. Range of unemployment measures based on varying definitions of unemployment and the labor force, seasonally adjusted (Percent) Quarterly averages Monthly data Measure 1988 1989 1989 III IV I II III July Aus. Sept. U-1 Persons unemployed 15 weeks or longer as a percent of the civilian labor force 1.3 1.2 1.1 1.1 1.1 1.2 1.1 1.1 U-2 Job losers as a percent of the civilian labor force 2.5 2.5 2.4 2.3 2.4 2.4 2.4 2.4 U-3 Unemployed persons 25 years and over as a percent of the civilian labor force for persons 25 years and over 4.2 4.1 4.0 4.0 4.0 4.0 4.0 4.1 U-4 Unemployed full-time Jobseekers as a percent of the full-time civilian labor force 5.1 5.0 4.9 4.9 4.9 4.9 4.9 5.0 U-5a Total unemployed 85 a percent of the labor force, including the resident Armed Forces 5.4 5.3 5.1 5.2 5.2 5.2 5.1 5.2 U-5b Total unemployed as a percent of the civilian labor force 5.5 5.3 5.2 5.3 5.2 5.2 5.2 5.3 U-6 Total full-time Jobseekers Plus 1/2 part-time Jobseekers Plus 1/2 total on part time for economic reasons as a percent of the civilian labor force less 1/2 of the part-time labor force 7.6 7.5 7.2 7.2 7.2 7.2 7.1 7.3 U-7 Total full-time Jobseekers plus 1/2 part-time Jobseekers plus 1/2 total on part time for economic reasons plus discourased workers as a percent of the civilian labor force plus discouraged workers less 1/2 of the part-time labor force 8.4 8.2 7.9 7.9 7.9 N.A. N.A. N.A. N.A. = not available. HOUSEHOLD DATA HOUSEHOLD DATA PAGE Table A-6. Selected unemployment indicators, seasonally adjusted Number of unemployed persons Unemployment rates1/ (in thousands) Catesory Sept. Aus. Sept. Sept. May June July Aus. Sept. 1988 1989 1989 1988 1989 1989 1989 1989 1989 CHARACTERISTIC Total, 16 Years and over 6,614 6,421 6,584 5.4 5.2 5.3 5.2 5.2 5.3 Men, 16 years and over 3,589 3,403 3,672 5.4 5.0 5.0 4.8 5.0 5.4 Men, 20 years and over 2,905 2,790 3,038 4.6 4.3 4.3 4.3 4.4 4.8 Women, 16 years and over 3,025 3,018 2,912 5.5 5.3 5.6 5.7 5.4 5.2 Women, 20 years and over 2,456 2,468 2,353 4.8 4.8 4.9 5.0 4.7 4.5 Both sexes, 16 to 19 years 1,253 1,163 1,193 15.5 15.2 15.6 14.7 14.5 15.1 Married men, SPOUSE present 1,316 1,312 1,424 3.1 2.9 2.8 2.9 3.1 3.4 Married women, spouse present 1,133 1,189 1,154 3.8 3.8 3.8 3.8 3.9 3.8 Women who maintain families 548 552 529 8.1 8.3 7.9 8.7 8.0 7.6 Full-time workers 5,293 5,183 5,255 5.1 4.8 4.8 4.9 4.9 5.0 Part-time workers 1,328 1,253 1,330 7.4 6.9 7.7 7.2 6,9 7.3 Labor force time lost2/ | 6.3 5.9 6.1 6.0 5.9 5.9 INDUSTRY Nonagricultural private wase and selary workers 4,969 4,971 5,021 5.4 5.2 5.3 5.4 5.4 5.4 Goods-producine industries 1,871 1,844 1,825 6.4 5.8 6.2 6.2 6.4 6.3 Mining 67 48 61 8.6 4.5 3.7 5,5 6.5 8.5 Construction 608 638 648 9.6 9.3 10.0 10.5 10.3 10.4 Manufacturing 1,196 1,158 1,116 5.4 4.9 5.2 5.0 5.2 5.1 Durable goods 677 623 613 5.2 4.5 4.6 4.7 4.8 4.7 Nondurable goods 519 535 503 5.8 5.5 6.1 5.5 5.9 5.5 Service-producing industries 3,098 3,127 3,196 5,0 4.9 4.9 5.0 4.9 5.0 Transportation and public utitities 237 234 298 3.8 4.0 4.4 4.2 3.6 4.7 Wholesale and retail trade 1,438 1,424 1,374 6.2 5.5 6.0 6.2 6.0 5.8 Finance and service industries 1,423 1,470 1,524 4.4 4.7 4.3 4.4 4.4 4.5 Government workers 474 489 505 2.7 2.9 3.0 2.8 2.7 2.8 Agricultural wase and salary workers 195 169 140 10.8 10.3 11.0 8.5 8.6 7.7 1/Unemplayment as a percent of the civilian labor force. 2/ Assresate hours lost by the unemployed and persons on part time for economic reasons as a percent of potentially available labor- force hours, HOUSEHOLD DATA HOUSEHOLD DATA PAGE 1 Table A-7. Duration of unemployment (Numbers in thousands) Not seasonally adjusted Seasonally adjusted Weeks of unemployment Sept. Aus. Sept. Sept. May June July Aus. Sept. 1988 1989 1989 1988 1989 1989 1989 1989 1989 DURATION Less than 5 weeks 3,308 3,022 3,355 3,116 3,041 3,309 3,149 3,071 3,156 5.to 14 weeks 1,632 2,152 1,737 1,896 2,017 1,999 1,927 2,011 2,036 15 weeks and over 1,428 1,178 1,237 1,568 1,313 1,258 1,472 1,305 1,370 15 to 26 weeks 644 612 664 775 702 659 846 737 789 27 weeks and over 784 566 573 793 611 599 626 567 581 Average (mean) duration, in weeks 13.3 11.3 11.3 13.5 11.8 11.1 12.0 11.3 11.4 Median duration, in weeks 4.8 5.0 4.2 5.7 5.3 5.5 5.6 5.0 5.0 PERCENT DISTRIBUTION Total unemployed 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Less than 5 weeks 51.9 47.6 53.0 47.4 47.7 50.4 48.1 48.1 48.1 5 to 14 weeks 25.6 33.9 27.4 28.8 31.7 30.4 29.4 31.5 31.0 15 weeks and over 22.4 18.5 19.5 23.8 20.6 19.2 22.5 20.4 20.9 15 to 26 weeks 10.1 9.6 10.5 11.8 11.0 10.0 12.9 11.5 12.0 27 weeks and over 12.3 8.9 9.1 12.1 9.6 9.1 9.6 8.9 8.8 HOUSEHOLD DATA HOUSEHOLD DATA PAGE Table A-8. Reason for unemployment (Numbers in thousands) Not seasonally adjusted Seasonally adjusted Reasons Sept. Aus. Sept. Sept. May June July Aus. Sept. 1988 1989 1989 1988 1989 1989 1989 1989 1989 NUMBER OF UNEMPLOYED Job losers 2,732 2,766 2,586 3,079 2,724 2,765 2,920 2,984 2,915 On leyoff 636 736 631 833 790 806 822 873 828 Other job losers 2,096 2,030 1,955 2,246 1,934 1,958 2,097 2,111 2,087 Job leavers 1,099 1,122 1,162 985 1,114 1,023 1,010 1,040 1,039 Reentrants 1,821 1,814 1,997 1,767 1,852 2,051 1,934 1,768 1,946 New entrants 717 650 585 761 683 742 724 628 629 PERCENT DISTRIBUTION Total unemployed 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Job losers 42.9 43.5 40.9 46.7 42.7 42.0 44.3 46,5 44.6 On Taroff 10.0 11.6 10.0 12.6 12.4 12.3 12.5 13.6 12.7 Other job losers 32.9 32.0 30.9 34.1 30.3 29.8 31.8 32.9 32.0 Job leavers 17.3 17.7 18.4 14.9 17.5 15.5 15.3 16.2 15.9 Reentrants 28.6 28.6 31.5 26.8 29.1 31.2 29.4 27.5 29.8 New entrents 11.3 10.2 9.2 11.5 10.7 11.3 11.0 9.8 9.6 UNEMPLOYED AS A PERCENT OF THE CIVILIAN LABOR FORCE Job losers 2.2 2.2 2.1 2.5 2.2 2.2 2.4 2.4 2.4 Job leavers .9 .9 .9 is .9 :o is .8 :- Reentrents 1.5 1.4 1.6 1.4 1.5 1.7 1.6 1.4 1.6 New entrants .6 .5 .5 .6 .6 .6 .6 .5 .5 HOUSEHOLD DATA HOUSEHOLD DATA PAGE Table A-9. Unemployed persons by sex and age, seasonally adjusted Number of unemployed persons Unemployment rates1/ (in thousands) Sex and age Sept. Aus. Sept. Sept. May June July Aus. Sept. 1988 1989 1989 1988 1989 1989 1989 1989 1989 Total, 16 years and over 6,614 6,421 6,584 5.4 5.2 5.3 5.2 5.2 5.3 16 to 24 years 2,457 2,420 2,444 10.9 10.4 11.3 10.7 10.9 11.2 16 to 19 Years 1,253 1,163 1,193 15.5 15.2 15.6 14.7 14.5 15.1 16 to 17 years 650 565 518 19.6 16.2 17.5 17.8 18.1 16.8 18 to 19 Years 615 609 683 12.8 14.5 14.9 12.4 12.5 14.2 20 to 24 Years 1,204 1,257 1,251 8.4 7.7 8.9 8.6 8.8 8.9 25 Years and over 4,179 4,031 4,182 4.2 4.0 4.0 4.0 4.0 4.1 25 to 54 years 3,733 3,556 3,698 4.4 4.2 4.1 4.2 4.1 4.3 55 Years and over 436 468 461 2.9 2.9 3.3 3.1 3.1 3.0 Men, 16 years and over 3,589 3,403 3,672 5.4 5.0 5.0 4.8 5.0 5.4 16 to 24 years 1,329 1,328 1,380 11.3 11.0 11.5 10.4 11.4 12.1 16 to 19 years 684 613 634 16.4 17.0 15.8 13.4 14.7 15.8 16 to 17 Years 367 290 311 20.8 18.8 20.0 17.4 17.4 19.8 18 to 19 Years 329 315 334 13.5 15.7 13.6 10.7 12.7 13.5 20 to 24 Years 645 715 746 8.5 7.7 9.2 8.7 9.6 10.1 25 Years and over 2,270 2,106 2,324 4.1 3.7 3.7 3,7 3.7 4.1 25 to 54 years 2,014 1,800 1,992 4.3 3.9 3.7 3.9 3.8 4.2 55 years and over -255 291 313 2.9 2.9 3.0 3.1 3.3 3.6 - Women, 16 Years and over 3,025 3,018 2,912 5.5 5.3 5,6 5.7 5.4 16 to 24 years 5.2 1,128 1,092 1,064 10.5 9.8 11.0 11.1 10.2 10.1 16 to 19 Years 569 0300 559 14.5 13.4 15.4 16.0 14.4 14.5 16 to 17 Years 283 275 207 18.2 13.4 14.7 18.3 18.8 13.7 18 to 19 Years 286 294 349 12.0 13.3 16.2 14.4 12,4 14.8 20 to 24 years 559 542 505 8.2 7.7 8.6 8.4 7.9 25 years and over 7.6 1,909 1,925 1,858 4.3 4.4 4.4 4.4 4.2 25 to 54 Years 4.1 1,719 1,756 1,705 4.5 4.6 4.5 4.6 4.5 55 rears and over 4.3 181 178 147 2.9 3.0 3.8 3.2 2.7 2.2 1/ Unemployment 25_8 percent of the civilian labor force. HOUSEHOLD DATA HOUSEHOLD DATA PAGE Table A-10. Employment status of black and other workers (Numbers in thousands) Not seasonally adjusted Seasonally adjusted1/ Employment status Sept. Aus. Sept. Sept. Mar June July Aus. Sept. 1988 1989 1989 1988 1989 1989 1989 1989 1989 Civilian noninstitutional population. 26,540 27,128 27,177 26,540 26,981 27,031 27,082 27,128 27,177 Civilian labor force 16,884 17,846 17,632 16,910 17,364 17,607 17,618 17,589 17,680 Participation rate 63.6 65.8 64.9 63.7 64.4 65.1 65.1 64.8 65.1 Employed 15,297 16,154 15,898 15,301 15,707 15,795 15,934 15,910 15.892 Employment-Population ratio2/ 57.6 59.5 58.5 57.7 58.2 58.4 58.8 58.6 52.5 Unemployed 1,586 1,692 1,735 1,609 1,657 1,812 1,684 1,680 1,798 Unemployment rate 9.4 9.5 9.8 9.5 9.5 10.3 9.6 9.5 10.1 Not in labor force 9,656 9,282 9,545 9,630 9,617 9,424 9,464 9,539 9,497 1/ The population figures are not adjusted For seasonal veriations therefore, identical numbers appear in the unadjusted and seasonally adjusted columns. 2/ Civilian employment as it percent of the civilian noninstitutional population. HOUSEHOLD DATA HOUSEHOLD DATA PAGE Table A-11. Occupational status of the employed and unemployed, not seasonally adjusted (Numbers in thousands) Civilian employed Unemployed Unemployment rate Occupation Sept. Sept. Sept. Sept. Sept. Sept. 1988 1989 1988 1989 1988 1989 Total, 16 years and over1/ 115,474 117,498 6,368 6,330 5.2 5.1 Managerial and professional specialty 29,537 30,493 624 715 2.1 2.3 Executive, administrative, and managerial 14,302 14,882 322 405 2.2 2.6 Professional specialty 15,235 15,611 302 310 1.9 1.9 Technical, sales, and administrative support 35,509 35,728 1,573 1,499 4.2 4.0 Technicians and related support 3,676 3,486 92 91 2.5 2.5 Sales occupations 13,575 13,939 658 617 4.6 4.2 Administrative support, including clerical 18,259 18,302 822 791 4.3 4.1 Service occupations 15,223 15,626 1,056 1,089 6.5 6.5 Private household 851 778 53 37 5.9 4.5 Protective service 1,971 1,983 66 101 3.3 4.9 Service, except private househol and protective 12,400 12,864 936 951 7.0 6.9 Precision production, craft, and repair 13,514 13,838 603 665 4.3 4.6 Mechanics and repairers 4,281 4,507 140 166 3.2 3.6 Construction trades 5,145 5,247 288 328 5.3 5.9 Other precision Production, craft, and repair 4,088 4,084 175 170 4.1 4.0 Operators, fabricators, and laborers 18,106 18,158 1,513 1,482 7.7 7.5 Machine operators, assemblers, and inspectors 8,156 8,349 715 629 8.1 7.0 Transportation and material movins occupations 5,056 5,129 224 267 4.2 4.9 Handlers, equipment cleaners, helpers, and laborers 4,893 4,681 573 586 10.5 11.1 Construction laborers 899 768 145 148 13.9 16.1 Other handlers, equipment cleaners, helpers, and laborers 3,994 3,912 429 438 9.7 10.1 Farming, forestry, and fishing 3,586 3,656 258 177 6.7 4.6 1/ Persons with no previous work experience and those whose last job was in the Armed Forces are included in the unemployed total. HOUSEHOLD DATA HOUSEHOLD DATA PAGE Table A-12. Employment status of male Vietnam-era veterans and nonveterans by ase, not seasonally adjusted (Numbers in thousands) Civilian labor force Civilian noninstitutional Veteran status population Unemployed and 892 Total Employed Number Percent of labor force Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. 1988 1989 1988 1989 1988 1989 1988 1989 1988 1989 VIETNAM-ERA VETERANS Total, 30 years and over 7,890 7,928 7,261 7,249 7,008 6,999 253 251 3.5 3.5 30 to 44 years 5,826 5,409 5,540 5,114 5,344 4,926 196 187 3.5 3.7 30 to 34 years 633 440 592 -406 554 382 38 24 6.4 6.0 35 to 39 years 2,070 1,673 1,965 1,561 1,894 1,486 71 75 3.6 4.8 40 to 44 years 3,123 3,296 2,983 3,146 2,896 3,058 87 88 2.9 2.8 45 years and over 2,064 2,519 1,721 2,136 1,664 2,072 57 63 3.3 3.0 NONVETERANS Total, 30 to 44 years 20,631 21,665 19,645 20,572 18,958 19,877 687 695 3.5 3.4 30 to 34 Years 9,175 9,401 8,779 8,966 8,439 8,669 340 297 3.9 3.3 35 to 39 years 6,928 7,506 6,593 7,121 6,405 6,867 188 255 2.9 3.6 40 to 44 years 4,528 4,758 4,273 4,485 4,114 4,341 159 143 3.7 3.2 NOTE: Male Vietnam-era veterans are men who served in the Armed Forces between August 5, 1964 and May 7, 1975. Nonveterens are men who have never served in the Armed Forces; published data are limited to those 30 to 44 Years of ase, the STOUP that most closely corresponds to the bulk of the Vietnam-ere veteran population. HOUSEHOLD DATA HOUSEHOLD DATA PAGE 1 Table A-13. Employment status of the civilian population for eleven large States (Numbers in thousands) Not seasonally adjusted1/ Seasonally adjusted2/ State and employment status Sept. Aug. Sept. Sept. Mar. June July Aus. Sept. 1988 1989 1989 1988 1989 1989 1989 1989 1989 California Civilian noninstitutional population 20,903 21,192 21,227 20,903 21,085 21,122 21,147 21,192 21,227 Civilian labor force 13,999 14,455 14,409 14,053 14,331 14,286 14,443 14,358 14,452 Employed 13,298 13,782 13,695 13,330 13,546 13,489 13,674 13,706 13,716 Unemployed 701 674 715 723 785 797 769 652 736 Unemployment rate 5.0 4,7 5.0 5.1 5,5 5.6 5.3 4.5 5.1 Florida Civilian noninstitutional population 9,755 9,978 9,996 9,755 9,924 9,942 9,965 9,978 9,99E Civilian labor force 6,135 6,310 6,198 6,133 6,227 6,344 6,286 6,209 6,194 Employed 5,824 5,968 5,843 5,831 5,827 5,960 5,930 5,884 5,845 Unemployed 310 342 355 302 400 384 356 325 348 Unemployment rate 5.1 5.4 5.7 4.9 6.4 6.1 5.7 5.2 5.6 Illinois Civilian noninstitutional population 8,720 8,708 8,711 8,720 8,698 8,701 8,699 8,708 8,711 Civilian labor- force 5,772 5,985 5,974 5,745 5,899 5,934 5,860 5,889 5,944 Employed 5,462 5,637 5,644 5,395 5,563 5,609 5,533 5,540 5,576 Unemployed 310 347 330 350 336 325 327 349 368 Unemployment rate 5.4 5.8 5.5 6.1 5.7 5.5 5.6 5.9 6.2 Massachusetts Civilian noninstitutional population 4,598 4,604 4,605 4,598 4,598 4,600 4,601 4,604 4,605 Civilian labor force 3,125 3,243 3,112 3,139 3,196 3,166 3,183 3,191 3.130 Employed 3,031 3,117 2,978 3,043 3,080 3,040 3,041 3,060 2,993 Unemployed 94 126 134 96 116 126 142 131 137 Unemployment rate 3.0 3.9 4.3 3.1 3.6 4.0 4.5 4.1 4.4 Michigan Civilian noninstitutional population 7,043 7,100 7,101 7,043 7,095 7,097 7,104 7,100 7,101 Civilian labor force 4,611 4,766 4,689 4,611 4,581 4,630 4,646 4,673 4,682 Employed 4,305 4,449 4,339 4,274 4,273 4,291 4,331 4,352 4,305 Unemployed 306 317 349 337 308 339 315 321 377 Unemployment rate 6.6 6,7 7.5 7.3 6.7 7.3 6.8 6.9 8.1 New Jersey Civilian noninstitutional population 6,044 6,066 6,068 6,044 6,059 6,062 6,064 6,066 6,068 Civilian labor force 3,941 4,035 3,974 3,973 3,952 3,971 3,976 3,990 4,014 Employed 3,807 3,864 3,803 3,823 3,834 3,806 3,814 3,810 3,828 Unemployed 134 171 171 150 118 165 162 180 185 Unemployment rate 3.4 4.2 4.3 3.8 3.0 4.2 4.1 4.5 4.6 PAGE New York Civilian noninstitutional population 13,804 13,816 13,817 13,804 13,809 13,812 13,814 13,816 13,817 Civilian labor force 8,513 8,734 8,595 8,554 8,770 8,705 3,674 8,557 8,649 Employed 8,159 8,313 8,147 6,184 3,307 8,266 8,269 8,127 2,132 Unemployed 354 421 443 370 463 439 405 430 467 Unemployment rate 4.2 4.8 5.2 4.3 5.3 5.0 4.7 5.0 5.4 North Carolina Civilian noninstitutional population 4,934 5,016 5,021 4,934 5,000 5,006 5,014 5,016 5,021 Civilian labor force 3,352 3,434 3,445 3,358 3,467 3,463 3,444 3,432 3,454 Employed 3,248 3,363 3,324 3,237 3,340 3,339 3,327 3,304 3,315 Unemployed 104 121 121 121 127 124 117 128 139 Unemployment rate 3.1 3.5 3.5 3.6 3.7 3.6 3.4 3.7 4.0 Ohio Civilian noninstitutional population 8,263 3,318 8,320 8,263 8,310 8,313 8,320 8,318 8,320 Civilian labor force 5,287 5,517 5,460 5,311 5,434 5,490 5,450 5,469 5,491 Employed 4,985 5,257 5,192 5,004 5,138 5,183 5,157 5,209 5,216 Unemployed 302 261 269 307 296 307 293 260 275 Unemployment rate 5.7 4.7 4.9 5.8 5.4 5.6 5.4 4.8 5.0 Pennsylvania Civilian noninstitutional population 9,385 9,433 9,435 9,385 9,424 9,427 9,433 9,433 9,435 Civilian labor force 5,881 5,919 5,862 5,827 5,920 5,917 5,823 5,768 5,813 Employed 5,584 5,686 5,625 5,523 5,649 5,678 5,562 5,520 5,572 Unemployed 297 233 237 304 271 239 261 248 8 Unemployment rate 5.1 3.9 4.0 5.2 4.6 4.0 4.5 4.3 4.1 Texas - Civilian noninstitutional population 12,007 11,996 11,998 12,007 11,987 11,990 11,989 11,996 11,998 Civilian labor force 8,341 8,452 3,266 8,321 8,250 8,223 3,241 8,352 8,253 Employed 7,749 7,843 7,745 7,732 7,762 7,721 7,645 7,729 7,737 Unemployed 591 610 521 589 488 502 596 623 #: Unemployment rate 7.1 7.2 6.3 7.1 5.9 6.1 7.2 7.5 6.3 1/ These are the official Bureau of Labor Statistics' estimates used in the administration of Federal fund allocation PROSTERS. 2/ The population fisures are not adjusted for seasonal variation; therefore, identical numbers appear in the unadjusted and seasonally adjusted columns. HOUSEHOLD DATA HOUSEHOLD DATA PAGE Table A-14. Persons not in the labor force by reason, sex, and race, quarterly averages (In thousands) Not seasonally Seasonally adjusted adjusted Reason, sex, and race 1988 1989 1988 1989 1989 III III III IV I II III TOTAL Total not in labor force 61,798 61,447 62,959 62,865 62,482 62,388 62,597 Do not want a job now 56,816 56,153 58,202 57,491 57,310 57,046 57,853 Current activity: Going to school 3,774 3,855 7,022 6,229 6,365 6,292 7,312 III, disabled 4,447 4,694 4,453 4,730 4,528 4,782 4,659 Keepins house 25,380 24,028 25,331 24,588 24,550 -24,062 23,988 Retired 17,044 18,026 16,825 17,251 17,179 17,407 17,688 Other activity: 6,171 5,550 4,571 4,693 4,688 4,503 4,206 Want a job now 4,982 5,294 5,276 5,418 5,313 5,331 5,509 Reason not lookins: School attendance 808 912 1,387 1,412 1,279 1,274 1,477 III health, disability 791 915 794 750 910 965 889 Home responsibilities 1,237 1,307 1,128 1,145 1,177 1,151 1,169 Think cannot set a job 952 835 941 951 855 869 815 Job-market factors 600 513 599 597 562 519 511 Personal factors 351 322 341 354 293 350 305 Other reasons1/ 1,194 1,325 1,026 1,160 1,093 1,072 1,159 Men Total not in labor force 20,000 20,135 20,926 21,084 20,861 20,839 21,101 Do not want a job now 18,311 18,322 19,100 19,062 19,085 18,929 19,284 Want a job now 1,689 1,813 1,920 1,985 1,946 1,932 2,031 Reason not looking: School attendance 379 440 669 716 632 639 735 Ill health, disability 376 503 379 351 420 471 487 Think cannot set a job 448 351 447 446 410 410 340 Other reasonsi/ 487 519 425 473 484 412 470 Women Total not in labor force 41,798 41,311 42,035 41,781 41,621 41,549 41,498 Do not want a job now 38,505 37,831 39,103 38,428 38,225 38,118 38,569 Want a job now. 3,293 3,481 3,356 3,433 3,367 3,399 3,478 Reason not looking: School attendance 429 472 718 697 646 635 742 III health, disability 415 412 415 399 491 494 403 Home responsibilities 1,237 1,307 1,128 1,145 1,177 1,151 1,169 Think cannot set a job 504 484 494 505 445 460 475 Other reasons 708 306 601 688 609 660 689 White PAGE Total not in labor force 52,518 52,175 53,447 53,325 52,980 52,888 53,074 Do not want a job now 48,975 48,513 49,728 49,381 49,280 49,060 49,320 Want a job now 3,545 3,658 3,691 3,854 3,844 3,835 3,774 Reason not looking: School attendance 517 607 903 911 885 906 1,003 III health, disability 552 597 556 511 704 684 583 Home responsibilities 902 898 806 828 793 835 793 Think cannot set a job 583 509 600 676 570 527 514 Other reasons1/ 991 1,048 821 928 892 882 881 Black Total not in labor force 7,284 7,347 7,497 7,471 7,445 7,542 7,555 Do not want a job now 6,134 5,875 6,227 6,182 6,134 6,303 5,971 Want a job now 1,150 1,472 1,241 1,259 1,315 1,325 1,613 Reason not lookins: School attendance 197 264 316 374 335 316 430 Ill health, disability 222 310 217 206 206 261 297 Home responsibilities 265 362 270 272 343 266 365 Think cannot get a job 317 296 290 210 253 323 272 Other reasons1/ 149 239 147 197 178 160 250 1/ Includes small number of men not looking for work because of "home responsibilities. " NOTE: Detail may not add to not-in-labor force totals because of the weishtins procedures. ESTABLISHMENT DATA ESTABLISHMENT DATA PAGE Table B-1. Employees on nonagricultural payrolls by industry (In thousands) Not seasonally adjusted Seasonally adjusted Industry Sept. July Aus. Sept. Sept. May June July Aus. Sept. 1988 1989 1989p/ |1989p/ 1988 1989 1989 1989 11989p/ 1989p/ Total 106,601 108,767 109,064 Total private 89,416 91,7331 91,9671 91,8741 88,7361 20,623 90,8841 91,0161 91,075 91,189 Goods producing industries 25,757 25,9041 26,1421 26,041 25,3131 25,6721 25,6481 25,6691 25,696 25,588 Minins 7281 7141 7401 7341 7191 7221 7151 7061 7301 725 Oil and sas extraction 406.51 406.41 409.31 405.71 4041 4011 4021 4041 4051 403 Construction 5,4421 5,6221 5,6721 5,5981 5,1631 5,2831 5,2831 5,3141 5,3161 5,316 General building contractors 11,451.61 1,3741 1,3881 1,3841 1,3911 1,4014 1,398 Manufacturins 19,587 19,5681 19,730 19,709 19,431 19,6671 19,6501 19,6491 19,650 19,547 Production workers 13,4131 13:2961 13,458: 13,4611 13,2631 13,4261 13,4001 13,4101 13,406 13,309 Durable Boods 11,524 11,490 11,538) 11,535) 11,4641 11,594 11,5671 11,5491 11,5531 11,471 Production workers 7,7121 7,6181 7,6701 7,6821 7,6531 7,7351 7,7061 7,6971 7,7001 7,624 Lumber and wood products 783.01 786.51 787.41 781,01 7631 7711 7691 7671 7641 760 Furniture and fixtures 531.51 523.61 527.51 529.71 5301 5341 5341 5361 5291 528 Stone, clay, and slass products 611.61 612.51 613.21 607.41 6001 6041 6031 6021 6011 595 Primary metal industries 781.11 776,01 783,61 779.91 7791 7871 7871 7851 7871 777 Blast furnaces and basic steel products 276.71 277.51 276.11 274.41 2771 2761 2761 2771 2761 274 Febricated metal products 1,443,911 430,311 435.21 442,91 1,4361 1,4521 1,4491 1,4461 1,4411 1,434 Machinery, except electrical 12,094. 147.31 2,0981 2,1501 2,1511 2,1541 2,1531 2,149 Electrical and electronic equipment 2,0721 2,0501 2,0411 2,0401 2,0321 2,020 Transportation equipment 12,053. 5.112.041.81 2,0441 2,0761 2,0621 2,0461 2,0701 2,034 Motor vehicles and equipment 865.51 828.51 846,71 847.11 8591 8761 8611 8441 8731 840 Instruments and related products 755,01 781,41 783.61 781.21 7561 7784 7791 7811 7821 782 Miscellaneous manufacturing 391.91 383.41 397.01 397.51 3861 3921 3921 3921 3941 392 I Nondurable goods 8,0631 8,078 8,1921 8,1741 7,9671 8,0731 8,0831 8,1001 8,0971 8,076 Production workers 5,701; 5,6781 5,7881 5,7791 5,6101 5,6911 5,6941 5,7131 5,7061 5,685 -- Food and kindred products 1,707.8 1,6271 1,6561 1,6631 1,678; 1,6701 1,673 Tobacco manufactures 58.11 49.51 52.21 54.61 551 531 521 531 521 52 Textile mill products 730.01 717.31 730.91 730.31 7261 7281 7291 7301 7291 726 Apparel and other textile products 1,090.811 088.0; 1,0851 1,0951 1,0931 1,0941 1,0941 1,083 Paper and allied products 694.51 702.61 704.11 699.41 6931 6971 6971 7011 7011 697 Printing and publishing 1,566.711 411,604.41 1,5731 1,6031 1,6071 1,609; 1,6111 1,611 Chemicals and allied products 1,0721 1,0941 1,0961 1,0911 1,0951 1,093 Petroleum and coal products 164.21 166.01 166.31 165.01 1621 1621 1631 1631 1631 163 Rubber and misc. plastics products 830.71 831.21 838.61 839.71 8301 8431 3411 8411 8421 & Leather and Teather products 145.81 134.11 142.21 140.71 1441 1421 1421 1401 1401 139 Service-producins industries 80,844 82,6361 82,4961 83,4121 80,8941 82,6381 82,9591 83,0981 83,1591 83,476 Transportation and public utilities 5,6271 5,7371 5,6241 5,7631 5,5811 5,7001 5,7161 5,7361 5,6251 5-717 Transportation 3,4101 3,5031 3,5211 3,5981 3,3651 3,4841 3,5001 3,5241 3,5391 3-552 Communication and public utilities 2,2171 2,2341 2,1031 2,1651 2,2161 2,216; 2,2161 2,2121 2,0861 2,165 Wholesale trade 6,0901 6,2791 6,2911 6,2811 6,0711 6,2221 6,2301 6,2371 6,2541 6.263 Durable goods 3,5911 3,7221 3,7251 3,7121 3,5901 3,6851 3,6931 3,7001 3,7061 3,712 Nondurable Boods 2,4991 2,557 2,5661 2,5691 2,4811 2,5371 2,5371 2,5371 2,5481 2,551 Retail trade 19,2661 19,6841 19,7571 19,7021 19,188) 19,5281 19,5511 19,5861 19,6201 19,624 General merchandise stores 12,404. 612,435.91 2,4521 2,4911 2,4931 2,4821 2,4831 2,436 Food stores 3,123.2(3,290.2(3,298.813,291.61 3,1221 3,2451 3,2621 3,2741 3,2921 3,292 Automotive dealers and service stations 2,132.912,182.612,182.912,172,91 2,1151 2,1591 2,1551 2,1551 2,1531 2,154 Eatins and drinking places 551.01 6,2961 6,3481 6,3621 6,3701 6,3851 6,397 Finance, insurance, and real estate 6,7061 6,9131 6,9181 6,8531 6,6951 6,7901 6,8081 6,8151 6,8341 6,844 Finance 3,2821 3,3571 3,358L 3,3301 3,2881 3,3201 3,3201 3,3241 3,3351 3,337 Insurance 2,0371 2,1421 2,1411 2,1321 2,0921 2,1231 2,1291 2,1311 2,1351 2,138 Real estate 1,3371 1,4141 1,4191 1,3911 1,3151 1,3471 1,3591 1,360| 1,3641 1,369 Services 25,9701 27,2161 27,2351 27,2341 25,8881 26,7111 26,9311 26,9731 27,0461 27,153 Business services 15,701. 115,898.81 5,6511 5,7761 5,7991 5,7861 5,8001 5,845 Health services 7,2281 7,5701 7,6161 7,6481 7,6941 7,739 1 Government 17,1851 16,8071 16,6711 17,5791 17,471 17,6871 17,7231 17,7511 17,7801 17,875 Federal 2,9681 3,0331 3,0101 2,9781 2,9851 2,9991 2,9951 3,0001 2,9981 2,996 State 4,0161 3,9211 3,9321 4,0961 4,0881 4,1191 4,1361 4,1451 4,161 4,171 Local 10,2011 9,8531 9,7291 10,5051 10,3981 10,5691 10,5921 10,606; 10,621 10,708 P = preliminary. ESTABLISHMENT DATA ESTABLISHMENT DATA 1/ PAGE Table B-2. Average weekly hours of production or nonsupervisory workers on private nonagricultural payrolls by industry Not seasonally adjusted Seasonally adjusted Industry Sept. July Aus. Sept. Sept. May June July Aug. Sept. 1988 1989 1989p/ 1989p/ 1988 1989 1989 1989 1989e/ 1989F/ Total private 34.8 35.1 34.9 34.7 34.7 34.6 34.6 34.8 34.6 34.6 Mining 42.2 42.5 42.8 43.0 (2) (2) (2) (2) (2) (2) Construction 38.4 38.9 38.9 38.6 (2) (2) (2) (2) (2) (2) Manufacturing. 41.3 40.5 40.8 41.1 41.1 41.0 41.0 41.0 40.9 41.0 Overtime hours 4.2 3.7 3.8 4.1 3.9 3.8 3.8 3.9 3.7 3.8 Durable goods 42.0 40.9 41.2 41.6 41.9 41,5 41,5 41.5 41.5 41.5 Overtime hours 4.3 3.7 3.8 4.1 4.1 3.9 3.9 4.0 3.9 3.9 Lumber and wood products 40.3 39.5 40.4 40.2 40.1 39.7 39.8 39.6 40.2 40.0 Furniture and fixtures 40.1 38.8 39.8 40.1 39.6 39.4 39.4 39.5 : 39.6 39.6 Stone, clay, and glass products 42.8 42.5 42.8 42.7 42.3 41.9 42.2 42.3 42.5 42.3 Primary metal industries 44.0 42.6 42.5 42.6 43.9 43.2 43.3 43,0 42.9 42.5 Blast Furnaces and basic steel products 44.7 43.2 43.0 42.5 44.5 43.6 43.7 43.2 43.4 42.3 Fabricated metal products 42.1 40.7 41.1 41.5 42.0 41.7 41,5 41.5 41.4 41.4 Machinery, except electrical 42.7 41.9 41.7 42.2 42.7 42.5 42.5 42.4 42.2 42.2 Electrical and electronic equipment 41.0 40.0 40.7 41.1 40.9 40.7 40.7 40.6 40.9 41.1 Transportation equipment 43.0 41.6 41.6 42.7 43.0 42.5 42,5 42.6 42.5 42.7 Motor vehicles and equipment 44.1 41.4 41.4 43.7 44.1 42.8 42.7 42.6 42.8 43.7 Instruments and related products 41.6 40.8 40.7 40.8 41.5 41.1 41,3 41.4 41,0 40.8 Miscellaneous manufacturing 39.3 38.6 39.3 39.6 39.2 39.6 39.4 39.3 39.5 39.5 Nondurable goods 40.5 40.0 40.2 ; 40.5 ; 40,2 40.2 40.3 40,2 40.2 40.2 Overtime hours 4.1 3.7 3.8 4.1 3.7 3.7 3.6 3.8 3.6 3.7 Food and kindred products 40.8 40.9 41.1 41.2 40.3 40.5 40.7 41.0 40.7 40.7 Tobacco manufactures 41.2 37.9 37.3 39.6 (2) (2) (2) (2) (2) (2) Textile mill products 41.4 40.6 41.3 41.1 41.0 41.4 41,4 41.2 41.0 40.7 Apparel and other textile products 37.1 36.7 37.1 37.1 37.1 37.1 37.1 37.0 37.0 37.1 Paper and allied products 43.7 42.9 43,1 43.7 43.2 43.3 43.3 43.2 43.4 43.2 Printing and publishing 38.5 37.4 37.8 38.3 38.1 37.7 37.8 37.6 37.7 37.9 Chemicals and allied products 42.3 42.2 42.0 42.7 42.3 42.1 42.5 42.5 42.3 42.7 Petroleum and coal products 44.8 44.3 43.7 44.1 (2) (2) (2) (2) (2) (2) Rubber and misc. plastics products 41.7 40.8 41.1 41.5 41.7 41,5 41.5 41.4 41.4 41.5 Leather and leather products 37.5 37.8 38.5 38.3 37.5 37.4 37.9 37.7 38.2 -- 38.3 Transportation and public utilities 39.5 39.8 39.3 39.4 39,4 39.5 39.4 39.4 38.9 39.3 Wholesale trade 38.1 38.3 38.1 38.1 38.1 37.9 38.0 38.1 33.0 38.1 Retail trade 29.1 29.9 29.6 28.8 29.1 28.9 28.9 29.2 28.8 28.7 Finance, insurance, and real estate 35.8 36.3 35.8 35.7 (2) (2) (2) (2) (2) (2) PAGE Services 32.5 33.1 : 32.9 32.6 32.6 : 32.5 : 32.5 : 32.8 : 32.6 32.7 1/ Data relate to production workers in mining and 2/ These series are not published seasonally manufacturing; construction workers in construction: adjusted since the seasonal component is small and nonsupervisory workers in transportation and relative to the trend-cycle and/or irresular public utilities; wholesale and retail trade: finance: components and consequently cannot be sere- insurance, and real estate: and services. These groups rated with sufficent precision. account for approximately four-fifths of the total F.= preliminary. employees on private nonagricultural parrolls. ESTABLISHMENT DATA ESTABLISHMENT DATA 1/ PAGE Table B-3. Average hourly and weekly earnings of production or nonsupervisory workers on private nonagricultural Fayrolls by industry Average hourly earnings Average weekly earnings Industry Sept. July Aus. Sept. Sept. July Aus. Sept. 1988 1989 |1989p/ 11989P/ 1988 1989 1989p/ 11989p/ Total private $9.40 $9.63 $9.60 $9.76 $327.12 $338.01 $335.04 $338.67 Seasonally adjusted 9.37 9.69 9.68 9.73 325,141 337.21 334.931 336.66 Mining 12.82 12.95 13.04 13.19 541.00) 550.381 558.111 567.17 Construction 13.16 13.33 13.33 13.48 505.341 518.541 518,541 520.33 Manufacturins 10.25 10.47 10.44 10.54 423,331 424.041 425,951 433.19 Durable goods 10.78 10.99 10.98 11.09 452.761 449,491 452.381 461.34 Lumber and wood products 8.69 8.92 8.93 8.97 350.21 352.341 360,771 360.59 Furniture and fixtures 8.09 8.26 8.29 8.41 324,411 320.491 329.941 337.24 Stone, clay, and glass products 10.55 10.75 10.76 10.31 451.541 456,881 460,531 461.59 Primary metal industries 12.24 12.40 12.35 12.41 538.561 528,241 524.881 528.67 Blast furnaces and basic steel products 14.07 14.33 : 14.28 14.35 628,931 619.061 614.041 609.38 Fabricated metal products 10.34 10.53 ; 10.50 10.63 435.311 428.571 431.551 441.15 Machinery, except electrical 11.09 11.35 11.34 11.46 473,541 475.57 472.881 483.61 Electrical and electronic equipment 10.19 10.41 10.41 10.46 417,791 416.40 423.691 429.91 Transportation equipment 13.44 13.61 13.70 13.83 577,921 566.181 569.921 590.54 Motor vehicles and equipment 14.10 14.07 14.21 : 14.42 621,811 582.501 588.291 630.15 Instruments and related products 9.99 10.31 ; 10.28 : 10.33 415.581 420.651 418,401 421.46 Miscellaneous manufacturins 8.01 8.29 8.19 8.35 314,791 319.991 321.871 330.66 Nondurable soods 9,50 9.77 9.71 9.80 384.751 390.801 390,341 396.90 Food and kindred products 9.11 9.35 9.27 9.32 371.691 382.421 381.00 383.98 Tobacco manufactures 14.09 16.34 15.61 I 14.21 580.511 619.291 582.251 562.72 Textile mill products 7.43 7.66 : 7.70 7.76 307.601 311.001 318.011 318.94 Apparel and other textile products 6.21 6.28 6.32 6.40 230.391 230,481 234.471 237.44 Paper and allied products 11.72 12.04 : 11.92 12.01 ; 512.161 516.521 513.751 524.84 Printins and publishing 10.70 10.83 10.90 11.04 411.951 405.041 412.021 422.83 Chemicals and allied Products 12.75 13.12 13.09 13.15 539,331 553.661 549.781 561.51 Petroleum and coal products 15.01 15.34 15.25 I 15.45 672.451 679.561 666.431 681.35 Rubber and misc, plastics products 9.22 9.45 9.44 9.51 384.471 385.561 387.981 394.67 Leather and leather products 6.30 6.54 6.54 6.60 236.251 247.21 251.791 252.78 Transportation and Public utilities 12.40 12.58 12.50 12:67 439.301 500.681 491.251 499.20 Wholesale trade 10.04 10.40 10.35 : 10.44 382.521 398.321 394.341 397.76 Retail trade 6.38 6.49 6.49 6.61 185.661 194.05 192.101 190.37 Finance, insurance, and real estate 9.14 9.59 9.49 9.60 327.21 348.12 339,741 342.72 Services 9.00 9.33 9.29 9.48 292.501 308.821 305.641 309.05 PAGE 1/ See footnote 1, table B-2. F = preliminary. - 1 - ESTABLISHMENT DATA#\#ESTABLISHMENT DATA 1/ PAGE TABLE B-4. Average hourly earnings of production or nonsupervisory workers on private nonagricultural paypolls by industry, seasonally adjusted Percent change Industry Sept. May dune Aus. Sept. from: 1988 1989 1989 & 1989p/ 1989p/ 1Aus. 1989- Sept. 1989 Total private2/: Current dollars $9.371 $9.601 $9.621 $7.691 $9.681 $9.731 0.5 Constant (1977) dollars3/ 4.831 4.771 4.771 4.791 4.791 N.A. : (4) Construction 13.071 13.321 13.321 $13.421 $13.371 $13.391 .1 Manufacturing 10.251 10.421 10,451 10.481 10:521 10.541 .2 Excluding overtime5/ 9.781 9.971 9.991 10.011 10.051 10.071 .2 Transportation and Public utilities: 12.371 12.541 12.541 12.611 12.51/- 12.641 1.0 Wholesale trade 10.031 10.281 10.331 10.441 10.391 10.44: .5 Retail trade 6.361 6.491 6,521 6.541 6,561 6.581 .3 Finance, insurance, and real estate! 9.181 9.451 9.531 9,681 9.561 9.641 .8 Services 9.001 9.331 9.341 9.461 9.431 9.481 .5 1/ See footnote 1, table B-2. 2/ Includes mining, not shown separately, because its seasonal component is too small to be separated out with sufficient precision. 3/ The Consumer Price Index for Urban Wase Earners and Clerical Workers (CPI-W) is used to deflate this series. 4/ Change was 0.0 percent from July 1989 to August 1989, the latest month available. 5/ Derived by assumine that overtime hours are paid at the rate of time and one- half. N.A. = not available. p/ = preliminary. ESTABLISHMENT DATA ESTABLISHMENT DATA 1/ PAGE Table B-5. Indexes of assresate weekly hours of production or nonsupervisory workers on private nonagricultural payrolls by industry (1977=100) Not seasonally adjusted Seasonally adjusted Industry Sept. (July Aus. Sept. (Sept. Mar IJune (July Aug. Sept. 1988 11989 (1939p/ 1989p/ 1988 11989 1989 11989 1989p/ 11989p/ Total private 126.91131.21 131.1 130.0 128.4 128.6 Goods-producing industries 1104.9 103.6: 105.5 105.6 101.81102.41102.51103.0 103.1 102.5 Minins 82.71 80.71 85.3 85.0 31.11 81.81 81.21 80.31 83.7 83.3 Construction 1149.71156.11 158.1 154.5 138.11138.21139.31142.7 143.0 142.9 Manufacturing 97.21 94.51 96.3 97.1 95.71 96.41 96.41 96.31 96.3 95,6 Durable soods 95.01 91.61 92,8 93,9 94.11 94.31 94.01 93.81 93.9 92.9 Lumber and wood products (107.11105.4) 107.8 106.3 1103.71103.71103.41102.6 103.6 102.8 Furniture and fixtures 1114.41107.91 112.0 113.4 112.61112.91112.6/113.21 111.9 111.6 Stone, clay, and slass products 93.01 92.31 93.0 91.6 89.61 39.31 89,81 90.01 90.2 88,6 Primary metal industries 69.31 66.21 66.7 66,5 68.91 68.21 68.51 67.91 67.8 66.0 Blast furnaces and basic steel products 54.81 52.71 52.2 51.1 54.21 52.31 52.61 52.01 52.8 : 51.2 Fabricated metal products 92.41 87.61 89.1 90.7 91.51 91.71 90.81 90.71 90.2 89.7 Machinery, except electrical 91.21 91.91 91.4 92.8 91.21 93.71 93.81 94.01 93.3 92.9 Electrical and electronic equipment 1101.41 94.91 97.2 98.1 (100.6) 98.41 97.81 97.61 98.0 97.7 Transportation equipment 1100.51 94.11 95.0 98.3 1100.01100.5) 99.51 98.61 100.1 97.8 Motor vehicles and equipment 92,31 80.81 83,3 87,5 92.31 90.21 88.11 85.71 89.5 36.7 Instruments and related products 113.6/114.71 114.9 115.5 113.7/115.8/116.11116.91 115.8 115.8 Miscellaneous manufacturins 36.81 81.91 87.4 88.1 84.81 86,61 86.21 85.71 87.0 : 36.1 Nondurable goods 100.41 98.91 101.4 : 101.9 98.21 99.51 99.91100.11 99.8 I 99.6 Food and kindred products 108.21108.61 112.8 113.4 100.41103.31104.31106.4 105.1 105.3 Tobacco manufactures 82.91 62.51 66.2 75.2 74.31 69.61 69.01 70.51 66.9 1 68.0 Textile mill products 31.91 78.51 81.6 81.0 80,61 31.51 81.51 81.31 80.6 79.7 Apparel and other textile products 84.61 81.51 85.1 84.6 : 84.21 85.41 85.21 84.91 84.9 84.2 Paper and allied products 103.21102.11 102.9 103.7 101.71102.3/102.31102.71 103.2 102.1 Printing and publishing 137.91136,31 137.8 139.6 137.2/137.81138.3/137.7 138.1 138.7 Chemicals and allied products 99.21101.31 101.4 : 102.3 98.71100.51101.8:101.5 101.2 101.8 Petroleum and coal products ; 86.01 86.31 85.3 ; 85.7 84.11 83.51 84.31 83.21 83.4 83.5 Rubber and misc. plastics products (117.9(115.2) 117.4 ; 118.8 1117.8/119.61118.91118.8 119.2 118,9 Leather and leather products 56.21 52.21 56.5 55,5 55.41 54.71 55.51 54.71 55.0 54.6 Service-producing industries (139.21146.5) 145.2 143,5 f138.81141.51142.21143.7 142.4 143.0 Transportation and Public utilities 115.31118,81 114.7 118.1 /114.11117.31117.31117.7 113.4 116.7 Wholesale trade (124.41128.7) 128.3 128.0 1123.81126, 1126.71127.21 127.2 ; 127.5 PAGE Retail trade (126.21132.6) 131.9 : 128.0 125.91127.2/127.4:128.95 127.5 : 126.9 Finance, insurance, and real estate 1140.71147.6 145.9 ; 143.4 140.9(141.91142.71145.0 143.3 : 143.6 Services 1163.31173.9) 173.1 : 171.2 163.21167.51169.01170.8 170.3 I 171.3 1/ See footnote 1, table B-2. P = preliminary. ESTABLISHMENT DATA ESTABLISHMENT DATA PAGE Table B-6. Diffusion indexes of employment change, seasonally adjusted (Percent) Time span Jan. Feb. Mar. Apr. May June July Aus, Sept Oct. Nov. Dec. Private nonaericultural payrolls, 349 industries1/ Over 1-month spant 1987 55.6 59.3 61.0 61.9 58.6 59.7 65.3 60.6 63.0 67.8 64.5 60.7 1988 60.7 63.5 63.0 62.8 61.3 67.2 63.6 58.0 55.4 63.9 68.2 64.6 1989 68.3 60.5 61.0 58.2 55.6 59.7 55.6 p/56.3 P/47.4 Over 3-month span: 1987 60.7 62.0 66.6 65.2 65.8 65.9 67.8 71.1 71.2 72.3 70.9 65.9 1988 64.8 65.6 69.5 70.2 71.1 71.9 71.2 64.2 65.3 70.1 73.4 74.6 1989 71.6 70.1 64.5 61.9 61.6 60,7 Ip/62.5 p/52.1 Over 6-month span: 1987 67.3 65.8 64.8 66.8 67.6 69.5 71.3 73.5 73.2 71.5 71.8 72.2 1988 69.9 70.2 71.5 73.9 73.9 69.1 70.2 74.6 73.5 73.9 74.5 75.8 1989 75.1 69.5 68.2 66.0 p/63,5 P/58.5 Over 12-month spant 1987 66.6 68.2 68.2 71,8 71.9 72.5 72.2 74.1 75.4 72.5 73.8 76.9 1983 76.2 76.1 74.8 74.6 75.8 74.9 78.1 75.5 75.5 74.8 74.9 74.1 1989 73.2 p/72.5 ip/69.1 Manufacturing payrolls, 141 industries1/ Over 1-month spant 1988 58.5 56.0 55.0 59.9 58.5 61.7 59.6 51.1 49,3 62.8 64,9 58.5 1989 62.4 53.5 53.2 49.6 46.8 48.6 49,6 p/47.2 p/34.8 Over ?-month span: 1987 52.1 51.4 59.6 61.3 58.5 62.8 67.0 71.6 68.4 70.6 67.7 64.5 1988 63.1 61.0 62.4 64.9 67,4 67.0 64.5 58.2 62.1 66.7 71.3 70.9 1989 67.4 63.8 55.7 51.8 49.3 48.6 p/49.6 p/35.5 Over 6-month span: 1987 57.4 56.7 55.3 62.4 64.9 67.0 67.4 70.6 71.3 69.5 69.5 68.1 1988 66.3 66.3 67.7 69.5 66.7 64.2 66.0 70.9 68.8 69.9 71.6 74,1 1989 69.5 58.5 55.7 52,8 p/50,4 p/40.4 PAGE Over 12-month span: 1987 55.3 : 58.5 I 58.5 63.5 : 66.3 : 67.4 : 71.6 72.7 71.6 69.1 : 68.4 72.3 1988 73.8 : 70.2 : 69,1 : 71.6 : 70.2 : 69.9 -- 67.0 1989 63.1 p/63.1 P/55.3 1/ Based on seasonally adjusted data for 1-, 3-, employment increasing Flus one- half of the and 6-month spans and unadjusted data for the industries with unchansed employment, where 12-month span. Data are centered within the span. 50 percent indicates an equal balance P=preliminary. between industries with increasing and NOTE: Figures are the percent of industries with decreasing employment. INVESTING IN PEOPLE A Strategy to Address America's Workforce Crisis Commission on Workforce Quality and Labor Market Efficiency We gratefully acknowledge the opportunity to share our main title with Investing in People: The Economics of Population Quality (1981) by Theodore W. Schultz. It is our pleasure to share a title with this distinguished scholar who has made such a major contribution to the analysis of investments in human capital. INVESTING IN PEOPLE A Strategy to Address America's Workforce Crisis A Report to the Secretary of Labor and the American People Commission on Workforce Quality and Labor Market Efficiency U.S. Department of Labor Washington, D.C. Labor Day 1989 CONTENTS Letter of Transmittal ii Members of the Commission on Workforce Quality and Labor Market Efficiency iv Executive Summary vii Introduction 1 Chapter 1: The Foundation of Workforce Quality 7 Chapter 2: Lifetime Education and Training 15 Chapter 3: Putting Quality to Work 25 Chapter 4: Understanding the Workforce 35 Appendices Appendix 1: Commission Calendar 41 Appendix 2: Commission Charter 42 Appendix 3: Background Papers 43 Appendix 4: Public Hearings 47 Appendix 5: Outreach Program 57 Appendix 6: Commission Staff 60 Ordering Information 61 i LETTER OF TRANSMITTAL Labor Day 1989 The Honorable Elizabeth Dole Secretary of Labor U.S. Department of Labor Washington, DC 20210 Dear Madam Secretary: The Commission on Workforce Quality and Labor Market Efficiency was established on July 11, 1988, with the charge to make specific recommendations by September 1989, on ways to increase the excellence of the American workforce. On behalf of the Commission, it is my pleasure to submit our report, Investing in People: A Strategy to Address America's Workforce Crisis. At the beginning of the Commission's work, we had hoped to identify two or three major initiatives that might produce immediate, significant improvements in workforce quality. We have since learned that there are no simple, easy solutions. Rather, we have identified a need for action on many fronts, action that will require the close cooperation of business, labor, and government at all levels. Our concern for workforce quality has led us to recommend incentives to inspire greater student achievement. We have asked the business community to help by relating career opportunity to school performance and by supporting incentive programs for improved performance by teachers and schools. We have also made recommendations to establish an environment that encourages employer investments in workforce quality. To complement these initiatives, government is urged to provide education and training programs that address needs unlikely to be met by the private sector. To enhance the efficiency with which the workforce is employed, we have proposed ways to create more flexible working arrangements, to facilitate the matching of workers with jobs, and to increase productivity through employee relations innovations. While our nation's workforce problems may seem daunting, they are not beyond solution. If we care enough, if we are willing to commit ourselves to doing that which is necessary, America can experience a rebirth of productivity, competitiveness, and family well-being. If our commitment falls short, however, it will surely be impossible to maintain our standard of living or our position as a leader of nations. On behalf of the Commissioners, I would like to acknowledge the splendid contributions of our staff. Led by Dr. David L. Crawford and Dr. Laurie J. Bassi, this outstanding team made our year's work effective, efficient, and very enjoyable. Finally, all the Commissioners thank you for supporting our efforts while assuring our continued independence as a bipartisan Commission. We wish you great success in your leadership of the national discussion of our recommendations. Respectfully, Richard J. Sched Richard F. Schubert Chairman MEMBERS OF THE COMMISSION ON WORKFORCE QUALITY AND LABOR MARKET EFFICIENCY Richard F. Schubert (Chairman) Constance E. Clayton Immediate Past President Superintendent of Schools American Red Cross School District of Philadelphia Washington, DC Philadelphia, Pennsylvania Orley C. Ashenfelter John L. Clendenin Professor of Economics Chairman and Chief Executive Officer Princeton University BellSouth Corporation Princeton, New Jersey Atlanta, Georgia Morton Bahr William H. Kolberg President President and Chief Executive Officer Communications Workers of National Alliance of Business America (AFL-CIO, CLC) Washington, DC Washington, DCail Jose I. Lozano Gary S. Becker President and Publisher Professor of Economics and Sociology La Opinion University of Chicago Los Angeles, California Chicago, Illinois Gary E. MacDougal Chairman of the Board Pat Choate Russell Sage Foundation Vice President Chicago, Illinois Office of Policy Analysis TRW, Inc. Ethel Olson Arlington, Virginia Consultant to the Thrift Industry Ruidoso, New Mexico Russell E. Palmer Dean The Wharton School University of Pennsylvania Philadelphia, Pennsylvania iv Gloria M. Portela Linda J. Wachner Director of the law firm President and Chief Executive Officer Pope, Ballard, Shepard and Fowle, Ltd. Warnaco, Inc. Chicago, Illinois New York, New York Albert H. Quie Lynn R. Williams Former Governor International President State of Minnesota United Steelworkers of America (AFL-CIO, Minnetonka, Minnesota CLC) Pittsburgh, Pennsylvania Isabel V. Sawhill Senior Fellow William J. Wilson The Urban Institute Professor of Sociology and Public Policy Washington, DC University of Chicago Chicago, Illinois Albert Shanker President American Federation of Teachers (AFL-CIO) Washington, DC John Sloan, Jr. President and Chief Executive Officer National Federation of Independent Business Washington, DC V EXECUTIVE SUMMARY In 1987, Workforce 2000 warned the nation that a crisis of workforce quality was at hand, a crisis that would threaten the very foundations of the American economy. Today, demographic trends, technological change, and increased international competition already are creating shortages of skilled workers and an excess of unskilled workers, problems that are likely to worsen in the years ahead. In Investing in People, the Commission on Workforce Quality and Labor Market Efficiency offers its response to the challenges posed by Workforce 2000. The Commission calls for: A public/private partnership under the leadership of the Secretary of Labor. Additional human capital investments by states, communities, individuals, and American business. A reallocation of federal human resource expenditures. A sustained increase in federal expenditures on human resource programs. These initiatives are essential if America is to resolve its workforce crisis. Without them, America's workforce will be undereducated, undertrained, and ill-equipped to compete in the twenty-first century. 1. THE FOUNDATION OF WORKFORCE QUALITY Vast numbers of American students cannot meet the educational requirements of today's workplace, much less those of the next century. The Commission believes that this lack of achievement stems in large part from the lack of incentives for effort and achievement in school. Only a handful of the best college-bound students strive to meet the rigorous entry standards of the most selective universities, while for all others, a high-school diploma seems sufficient to secure access to post-secondary education. Most of those bound directly for the workplace know that the quality of their school work and the grades they receive will have little effect on their immediate employment prospects and virtually no effect on their entry-level wage rate. The Commission recommends: Presidential leadership in the development of specific national education goals and timetables. Continued efforts by the business community to work with schools to help students understand and meet the educational standards that are required for labor market success. vii Strengthening the relationship between school and work by making high-school transcripts and national achievement test scores integral parts of employers' evaluations of job applicants. The prospects for greater student effort and achievement will be improved if student incentives are accompanied by incentives for improving the quality of instruction. The Commission recommends: Creation of incentives to inspire the best efforts of teachers, administrators, and school districts. Encouragement of experimental restructuring of schools. 2. LIFETIME EDUCATION AND TRAINING America must develop a coherent system of lifetime education and training. As a first step, it is essential to create a business environment that encourages employers to invest more in their workers. The Commission recommends: A corporate income tax credit for education and training expenses. A personal income tax exemption for all employer-provided education and training benefits. Encouragement of multi-employer training programs. Government programs that serve the least skilled and most disadvantaged individuals are the other essential part of a coherent system of lifetime education and training. The Commission recommends: Renewed national commitment to basic skills education for adults. Sharpened focus of the Job Training Partnership Act (JTPA) on those most in need of training. Increased funding of JTPA. Increased funding for grants for post-secondary training and education. Establishment of a Cabinet-level committee to coordinate human resource policy. 3. PUTTING QUALITY TO WORK America faces labor shortages requiring the most efficient use of the skills that already exist within the population. Tensions between work and family responsibilities prevent some individuals from full labor market participation. The Commission recommends: Federal support of community-based child care resource and referral organizations. viii Increased subsidy of the child care expenses of low-income working families. Encouragement of flexible employment arrangements such as flextime and part-time work. Additional initiatives can facilitate the matching of job seekers with job vacancies. The Commission recommends: Establishment of performance standards for the public employment service. Increased "experience rating" of the unemployment insurance system. Increased sensitivity of U.S. immigration policy to labor market needs. Finally, productivity can be enhanced by encouraging innovative approaches to labor-management relations. The Commission recommends: Assistance for employers and employees as they explore the potential gains from worker participation, innovative compensation arrangements, and pension portability. Establishment of a task force to review public policies related to labor-management relations. 4. UNDERSTANDING THE WORKFORCE It is essential that human resource policies be informed by accurate data and careful research. In reviewing policy, the Commission has been dismayed by the-paucity of information on many important issues. To assure that future decisions can be based on more complete information about the American workforce, the Commission recommends: Increased funding for the Bureau of Labor Statistics to develop quick turnaround household surveys, support longitudinal data bases, and conduct pilot studies of new data methods. Increased funding to the Departments of Labor and Education to conduct experimental evaluations of human resource programs, study the labor market status of disadvantaged individuals, and collect information on best employment practices. ix INVESTING IN PEOPLE A Strategy to Address America's Workforce Crisis INTRODUCTION THE CHALLENGE America's ability to shape the course of the twenty-first century will depend largely on the productivity of the American workforce. Competitive advantage has replaced military might as the principal source of global influence. Our major trading partners have realized that their productivity will determine both their international power and standard of living. These countries have made substantial commitments to educate and train their workforces. America has, in many respects, failed to do the same. We as a nation stand at a crossroads; one road leads to increased competitiveness, higher standards of living, and a strong presence in the international community; the other, to economic decline. Our most formidable competitors have chosen the former. So too must we. This country has always been willing to commit enormous energy and resources in times of short-run emergencies such as those posed by wars or domestic financial crises. When danger is imminent, the urgency is obvious. It is always more difficult to make long-run commitments in response to long-run threats. Nonetheless, some of our greatest achievements have been the result of such commitments. When the Soviet Union put Sputnik into orbit in 1957, the nation was shocked that we were behind in the space race. We realized that the true cost of losing the space race would be felt not immediately but for generations to come. Our understanding of the enormity of the long-run costs compelled us to take immediate action, despite the absence of an immediate threat. We established a national program of investment in education, training, and research. Our sustained investments were inspired by a shared vision of a nation second to none in its mathematical and scientific capability, a nation that could win the space race. Today, we require a similar vision to inspire a national strategy of sustained investment in human resources over the next decade. Such a strategy will shape both our economic future and our position in the community of nations for many decades to come. In 1987, the Department of Labor issued Workforce 2000, which documented an emerging crisis in the American workplace. That report warned the nation that demographic trends, technological change, and increased international competition could weaken our economic position in the next century. The crisis envisioned in Workforce 2000 has begun to emerge. Increased demand for highly skilled workers, combined with an aging workforce, has already 1 created shortages of skilled workers, shortages that are likely to grow for many years. At the same time, many low-skill workers are having increasing difficulty finding employment. This report responds to the challenges posed by Workforce 2000. It offers a national strategy to avert economic decline by improving the quality of our workforce. This strategy is based on a partnership between the private sector and all levels of government. While the investments necessary for improving workforce quality must come primarily from the private sector, all levels of government will be called upon to provide funds for programs that can fill the gaps in our nation's system of lifetime education and training. The leadership of the federal government, and particularly that of the Secretary of Labor, will be critical. EVIDENCE OF AN EMERGING CRISIS Employers report increasing difficulty in finding the job applicants they need. While part of this difficulty is attributable to recent reductions in unemployment, it is also a result of the "skills gap," the inadequate supply of American workers with the skills required by employers. The projections in Workforce 2000 indicate that today's gap is likely to widen as the skill requirements of new jobs increase faster than the skill levels of the labor force. One major factor contributing to the skills gap is the low levels of achievement among students leaving our nation's schools. Employers report that alarming numbers of young job applicants have such poor reading and computation skills that it is impossible to provide them with job-specific training. These problems are particularly acute for the 25 percent of students who leave school before high-school graduation. Perhaps more troubling is the fact that many of those who do graduate possess little more than rudimentary language and mathematics skills. From the top to the bottom of the American talent pool, our students' academic achievements have failed to keep pace with the competitive requirements of the international marketplace. Our best mathematics students would be ranked just average in almost any Pacific rim nation. Too few of our brightest students are taking the arduous courses of study necessary to prepare for occupations in science, mathematics, and engineering. Moreover, the skills shortfall is not confined to new or prospective workers. Large numbers of experienced workers have skills that are now obsolete or soon will be made obsolete by changes in technology or by declines in specific industries. With technological change accelerating and international competition increasing, the life cycles of products, technologies, and industries from initial expansion to 2 final contraction have shortened. Shorter cycles will result in even more rapid obsolescence of workers' skills and will heighten our need for retraining systems. Retraining, however, usually requires basic reading and computational skills that are well beyond those currently possessed by many experienced workers. At least 20 million, and possibly as many as 40 million, adults today experience substantial literacy problems. Employers' retraining costs are much larger for employees with limited reading and computation abilities. American firms' difficulties in retraining these workers further reduce our ability to compete in the world marketplace. If the skills gap continues to widen, both sides of the labor market will suffer. Many employers will not be able to hire the types of workers they need to compete in international markets. Some employers will bid up the wage rate of the skilled workers they can find, thereby creating higher costs and diminishing competitiveness. Other employers will be tempted to use foreign workers or to relocate production in foreign countries. Inevitably, some high-skill jobs will remain vacant while large numbers of low-skill workers will remain unemployed. The burden of this unemployment is likely to fall most heavily on minorities. Pockets of chronic unemployment amid otherwise tight labor markets could lead to social and political conflict. THE VISION Eliminating the skills gap and enhancing our nation's competitive position will require a substantial, ongoing national commitment to investment in human resources. To be effective, such a commitment must be based on a shared vision of our nation's potential. We envision American students treating learning as a matter of highest priority. We envision American high schools with nearly 100 percent graduation rates, producing students whose achievements compare favorably with those of their peers in other developed countries. We envision an America in which virtually every adult can read and in which post-secondary education or training is a right rather than a privilege. We envision an America in which workers can find high-quality jobs and employers can find high-quality workers. We envision an America in which all employers are committed to substantial investments in the education and training of their workers. We envision an America without barriers to labor force participation and with full utilization of the skills of the nation's citizenry. We envision an American labor relations system based on cooperation. Such an America would be, and would deserve to be, a major political and economic power in the twenty-first century. 3 A NOTE ON FISCAL RESPONSIBILITY We have considered the fiscal implications of the strategy we recommend to pursue our vision. Throughout our deliberations we have been mindful of the importance of reducing the current budget deficit. At the same time, we are convinced that, because today's skills deficit is so enormous, wisely chosen investments in human capital will yield substantial returns. We believe that much can be accomplished through additional investments from states, communities, individuals, and American business, and through a careful reallocation of current federal expenditures on human resources. There is likely, however, to be a clear and pressing need for a sustained increase in federal expenditure on human resource programs. We are still the world's most wealthy nation, but we are at risk for want of human resources. We must not accept a workforce that is undereducated, undertrained, and ill-equipped to compete in the twenty-first century. A NOTE ON LABOR AND MANAGEMENT COOPERATION In a spirit of cooperation and in pursuit of mutual goals, business and labor have worked together as peers and allies on this Commission. Many of our recommendations call for a spirit of cooperation like that which invigorated our work. Often the report refers to "business" or the "business community." Consistent with our shared vision and sense of shared responsibility, we intend for these terms to include both management and labor. We recognize that all elements of the business community must work together to achieve our mutual goals. THE COMMISSION'S STRATEGY Pursuing our vision of America's potential will require coordinated action on many fronts. There is widespread agreement that investments in physical capital and in research and development should be increased. These activities, while important, are outside our charge to focus on human resource development. Given the brevity of our time together and the magnitude of our task, we did not address the economic, developmental, or health needs of young 4 children, though these issues are closely related to workforce quality and are clearly important. In light of the many efforts already underway, we also did not address the impacts of substance abuse on the labor force participation of young adults or its overall impact on workplace efficiency. The initiative we present rests on three pillars: Creating incentives to improve student motivation and achievement. Improving workforce quality through public and private investments in lifetime education and training. Improving the efficiency with which workers' existing skills are utilized. Chapters 1, 2, and 3 of this report contain the results of our deliberations on each of these themes, as well as specific recommendations for action by the private sector, the education community, and all levels of government. In our review of human resource policy, we have been dismayed by the dearth of reliable data and research on many important questions. Chapter 4 contains our recommendations for improving the data-gathering and research activities of the federal government SO that our leaders' future decisions can be based on more complete information about the American workforce. 5 1. THE FOUNDATION OF WORKFORCE QUALITY People begin to acquire labor market skills long before they enter the labor market. Indeed, the quality of early life at home exerts a powerful influence on the quality of later life at work. The school is second only to the family in its importance as a source of the education that forms the foundation for a lifetime of career options. Post-secondary studies, government training programs, and employer-provided education and training all build on this critical foundation. The schools' contribution to workforce quality is, therefore, a substantial one. For too many Americans, the foundation is shaky. The educational task before our nation is enormous. Vast numbers of our students fail to meet the educational requirements of the workplace or match the academic accomplishments of their counterparts abroad. Employers report that many young people's skills are insufficient to qualify them for entry-level jobs. Even taking into account institutional and cultural differences, the consistent and significant underachievement of American students, relative to their counterparts in other countries, is of grave concern. U.S. students lag behind in science and mathematics at every grade level and at every stratum of ability and background. Compared with students in the developed countries of Western Europe and the Pacific rim, the average mathematics attainment of students in our middle and secondary schools places them in the bottom quartile. Worse perhaps, the top 5 percent of college-bound high-school seniors in the U.S. have scores in advanced mathematics comparable to the average score of all Japanese seniors. The time has come for this country to make a commitment to education, a commitment as ambitious and aggressive as our past commitment to space exploration. Our national leaders must establish national education goals to provide a framework within which state and local governments-along with educators, the business community, and parents-can develop plans for action and establish systems of measurement and incentives for success. It is vital that the nation be charged to work together and act aggressively to meet ambitious goals. 7 1. The President should lead governors, mayors, educators, the business community, parents, and all citizens in developing specific national education goals and timetables. The goals should include: reducing school dropout rates; increasing attendance rates; improving test scores and achievement levels; increasing parental participation; and ensuring that our nation's youth graduate with the basic skills necessary to be successful in the workplace. Once national goals and timetables are set, it will be necessary for our students to expend the effort required to achieve these goals. Currently, our schools and parents expect less of our young people than is expected of students in other developed nations. The greater importance attributed to education by our international competitors and the greater efforts of their students account for much of the shortfall in American students' achievement. Indeed, a recent study of 13-year-olds in the U.S., Korea, Spain, Ireland, the United Kingdom, and Canada produced these ranks for U.S. students: last in average mathematics proficiency; nearly last in average science proficiency; last in the amount of mathematics homework reported; nearly last in the amount of science homework; and first only in the percent watching five or more hours of television each day. To be sure, there are other significant differences between our education system and those of other countries; our management of curricula and resources is less centralized, and our schools place less emphasis on science and mathematics. Nevertheless, there can be no doubt that increased effort by American students would contribute significantly to increased educational achievement. We believe that many students lack sufficient incentives to inspire their wholehearted engagement with learning and, furthermore, that many aspects of the American education and employment systems are inconsistent with the interests of learning. For example, while the admission standards of the most prestigious colleges and universities create strong incentives for the handful of students who aspire to attend these select schools, most post-secondary institutions have longstanding "open admissions" policies that guarantee access for any resident holding a high-school diploma. Consequently, students need merely to graduate from high school to gain admission to college, a situation that offers few incentives to study hard or otherwise prepare for college work. Similarly, students who choose to go directly to work rather than pursue post-secondary education find that their immediate earnings prospects are unrelated to their school performance and, hence, see little reason to study. Accordingly, it is important to create incentives that both justify and reward scholastic effort. This is particularly true for our lowest achievers, many of whom believe they have little to gain from school work. A number of strategies have been offered to counter academic underachievement Examples of these strategies include those 8 imposed by the schools ("no pass, no play" rules for school-sponsored sports programs), those imposed by states (linking driver's license eligibility to continued enrollment in school), those offered by philanthropists (free college tuition for all who qualify), and those offered by business/education partnerships (jobs for all students who meet a prescribed educational standard). While it is too early to judge the success of these approaches, we believe they offer models that can be adapted to a variety of situations. Most of the recommendations in this chapter focus on engaging students in the learning process. No one of these recommendations in isolation, or even the combination of all of them, is sufficient to solve America's educational problems. Nonetheless, we believe that engaging students' self-interest in their studies is an important step, offering opportunities to promote achievement that are missing from most current reform efforts. If this strategy is to work, however, businesses must play a significant role in creating incentives for achievement. During the past decade, the business community has, in fact, substantially increased its involvement in the schools. We applaud these efforts and call for their expansion. Of all the contributions that the business community makes, the most important one is to help students understand the world of work and its relationship to what is learned in school. Many young people, particularly those in low-income urban areas, have very little understanding of the nexus of school and work. Nothing can make this relationship more clear than an assurance from the business community that jobs will be available for those students who earn adequate educational credentials. 2. The business community should increase its presence in the schools, work with parents and school personnel, talk directly with students, and show through their hiring and promotion decisions that academic achievements will be rewarded. Increased involvement of the business community will be particularly valuable in low-income urban areas. Business can make additional contributions by providing schools with the information that they need to develop course content and instructional methods that meet the current and emerging needs of the workplace. Increasingly, employees will have to work in cooperative groups, be able to make decisions about production problems and processes, and develop the ability to acquire new skills and behavior on the job. We urge schools to adjust their instructional methods to match more closely the situation students will later face in the workplace. 9 3. Schools should encourage the business community to provide the information needed to develop classroom instruction that anticipates emerging workplace needs. These techniques, emphasizing less interpersonal competition, more cooperative effort, and increased problem-solving abilities, should be used throughout a child's entire education. Schools should also create the flexibility of schedules and educational formats necessary to enable students of different abilities to meet the higher standards of performance that are required by employers. Another vehicle for creating incentives for students to stay in school and study harder is to develop curricula in which applied, "hands- on" instructional techniques are used to teach basic reading and mathematics to students who do not choose purely academic courses of study. The National Assessment of Vocational Education has reported evidence that many students who do not succeed in traditional courses of study can meet reasonable standards of accomplishment when course work is combined with applied training that gives meaning to their studies. Proposals offered by the Administration and legislation introduced by members of Congress to reauthorize the Vocational Education Act call for increased use of vocational technical education as a vehicle for basic skills instruction. We encourage these and related initiatives. 4. Schools should offer applied instruction, such as vocational technical education, that emphasizes transferable academic skills including reading, mathematics, science, communication, and problem-solving. Students who pursue traditional academic studies also need incentives to inspire effort. In many countries, such incentives are created by competitive admissions policies that limit access to post- secondary education. In this country, however, we are committed to open admissions to most public post-secondary institutions. This commitment may inadvertently undermine incentives for many college-bound students, leaving them underprepared for college curricula. 5. The Secretary of Education should institute a review of post-secondary admissions policies and their implications for the performance of students who aspire to post-secondary education. The review should focus on opportunities to inspire elementary and secondary level students to prepare more diligently for college study. In addition to creating incentives for students to study harder in school, we need to encourage students to undertake and excel in scientific and technical fields. Science instruction at the elementary 10 school level is scarce at best. Few teachers are trained to teach elementary science, and students often receive no exposure to the sciences until they reach middle school. By then it is too late; most U.S. students never catch up to students in societies where early science instruction is emphasized. Moreover, too few of our youngsters aspire to enter scientific fields, a shortage of interest that is most pronounced among women and minorities. We believe that schools should aggressively encourage such aspirations, and that industries that rely on a scientific and technical workforce should assist the schools in this endeavor. 6. Primary and secondary schools, in partnership with the business community, should encourage the pursuit of scientific and technical courses of study, particularly by minority and female students. Given the absence of an adequate supply of elementary school teachers able to teach science, federal and state governments should give immediate priority to: the development of a kindergarten through twelfth grade plan of study in the sciences; the design of a curriculum that provides hands-on experience for children of all ages; and the more effective use of talented science teachers and community resources. In the long run, special attention should be given to the creation of an adequate supply of elementary school teachers able to teach science. An improved curriculum and better trained teachers will have more impact on students if they have incentives for accomplishment. Immediate rewards are likely to encourage effort more effectively than rewards that come later in life. 7. High-school students who excel in science and mathematics should be rewarded with business internships or grants for further study. Another way that employers can reward students for their achievements is by offering them good jobs upon completion of school. Currently, however, students have few means of communicating their accomplishments to employers. Typically, when job applicants authorize the release of their transcripts to prospective employers, schools fail to deliver the transcripts in a timely manner. Since hiring decisions for entry-level jobs are usually made quite quickly, even short delays can create problems. Employers often have difficulty interpreting the transcripts they do receive and are forced to make decisions with little information regarding an applicant's actual academic accomplishments. Lack of information is a particular problem for small employers, few of whom can afford employment testing. 11 Making transcripts an integral part of the employment process will sharpen students' awareness of the importance of grades and other indicators of school performance. We believe that this heightened awareness will lead to greater effort and, consequently, to greater achievement. 8. Schools should develop easily understood transcripts which, at the request of students, are readily available to employers. These transcripts should contain documentable measures of achievement in a variety of fields, as well as attendance records. State governments should provide assistance to facilitate the standardization of transcripts so that they will be more easily understood. The creation of a voluntary achievement testing program could provide an additional way for students to document their accomplishments. Such a program could focus on a test measuring competencies in a variety of academic and vocational areas. It would be necessary to develop a new test since tests currently in widespread use are not sufficiently broad in scope to meet the wide- ranging requirements of the achievement testing program that we envision. Students who take the new test would be certified at different levels of proficiency in the content areas of their choice. After taking the examinations, students could choose whether to distribute the results to prospective employers or post-secondary institutions. An additional advantage of such a testing program is that the process of documenting students' skills and achievements would call attention to differences in student achievement across teachers and school districts. Increased awareness of such differences would create incentives for improved performance by teachers and school systems. There is a risk, however, that widespread use of test scores by employers could place students from relatively underfunded school districts at an additional disadvantage. It is important, therefore, that any initiative for increased testing of high-school students be accompanied by aggressive efforts to equalize resources across school districts. We want to emphasize that our aim is to increase opportunity by increasing achievement, and that both equalizing resources and increasing incentives will be necessary if we are to succeed. 9. National educational and employers' associations should work together to develop easily understood credentials, based on voluntary achievement testing programs, that assess student proficiency levels in a wide variety of academic and vocational areas. Testing programs must be accompanied by efforts to equalize resources across school districts. Schools and employers should further strengthen the linkage between school and work by establishing school-based employment 12 services. While most schools contribute significantly to the college placement process, few schools offer similar job placement support for students who do not go directly to college. Some State Employment Security agencies have already established job placement services in high schools, and further experimentation would be worthwhile. Such programs hold special promise in low- income urban areas where young job applicants typically have very little information regarding job opportunities. 10. Schools should work with State Employment Security agencies and Private Industry Councils to establish school-based employment services with direct connections to employers. Employers, both large and small, should be encouraged to provide information on job openings and to consider filling vacancies with recent accomplished high-school graduates. Students should be provided with evidence that the system works for those who have the necessary skills. The prospects for greater student effort and achievement will be improved if student incentives are accompanied by incentives for improving the quality of teachers. Raising the level of teachers' subject matter competence will no doubt raise student achievement. The quality of teaching can be improved by recruiting individuals with proven substantive competencies and by ensuring that all teachers are masters of the subjects they teach. 11. State departments of education should improve instruction by developing teaching opportunities for individuals who have substantive competencies but lack education training, by instituting more rigorous testing of new teachers, and by requiring retraining of existing teachers who lack substantive competencies. Teachers who do their jobs well should be professionally recognized and rewarded in ways that promote collegiality and additional effort by all instructional staff within an individual school. Consequently, rewards should be based both on measures of outstanding individual performance and on evidence of outstanding achievement by faculties of entire schools. Possible rewards at the local, state, and national level would range from public recognition, to promotion, to financial bonuses. The business community should be an active partner in creating and supporting these incentive systems. In all cases, rewards should be based on observable criteria such as gains in student achievement or measures of a teacher's substantive competencies. We acknowledge successful ongoing teacher incentive programs that provide greater status, responsibility, and compensation. Such programs have been implemented in Dade County, Florida; Rochester, New York; and the state of California. 13 12. Teachers who do their jobs well, either as individuals or as members of school faculties, should be recognized and rewarded, both professionally and financially. All levels of government should work with the private sector to establish incentives for teacher excellence. Just as students and teachers need incentives to inspire achievement, SO too do individual school administrators and school systems. Experience has shown that public recognition is an effective means of encouraging such achievement. We urge the expansion of public recognition programs at every level of government and encourage the development of district or state-level comparisons based on data from the National Assessment of Educational Progress. Such comparisons would not only facilitate recognition programs, but would also allow identification of the most effective educational strategies. 13. Federal, state, and local governments should increase their efforts to give public recognition to school administrators and school systems whose students and teachers display significant gains. Additional funding for the National Assessment of Educational Progress would facilitate such efforts. This nation's need for educational reform cannot be overstated. The recommendations in this chapter will help to improve the quality of our students, our teachers, our curricula, and our schools, but there is reason to believe that more fundamental change will be required. We are now witnessing a major restructuring of businesses and other organizations across America, frequently resulting in profound changes in employee-management relations. While educational organizations face unique problems and challenges, it is clear that the time has come to consider an analogous restructuring of our schools and that much can be learned from successful restructuring of other organizations. This learning could be facilitated by the interaction of private sector managers and employees with their school system counterparts. 14. The U.S. Department of Education, in cooperation with state departments of education, should encourage experimentation involving fundamental restructuring of schools. Encouragement should include grants, technical assistance, and regulatory flexibility. The business community should offer schools the benefit of its experience in organizational restructuring. 14 2. LIFETIME EDUCATION AND TRAINING America must develop a coherent system for providing post- secondary education and training to adults. We believe that the need for a system of lifetime training and retraining is large and growing. Since over two-thirds of today's workers will remain in the labor market beyond the year 2000, the labor force of the early twenty-first century is, in substantial part, the labor force that we have today. That labor force is deficient. Between 20 and 40 million adults today have literacy problems, making it difficult for them to be trained or retrained. Each year, additional workers with literacy deficiencies enter the workforce; one in 10 of our 17-year-olds is functionally illiterate. One-half of all 18-year-olds have failed to master basic language, mathematics, and analytic skills. Employers report difficulty both in hiring skilled workers and in finding entry-level applicants who can read and compute well enough to participate usefully in employer-provided training programs. Today's labor force does not meet our current needs, and our needs are increasing as technological change accelerates and foreign competition intensifies. Researchers have consistently found modest but steady increases in the average skill requirements of a broad array of jobs. Workforce 2000 projects that the jobs of the early twenty-first century will be very different from the jobs of today, again requiring substantially higher skills. At the same time, the American workforce will be aging, a circumstance that will force us to retrain experienced workers if we are to meet the demand for new skills. We believe that responsibility for investing in the workforce of the future resides primarily in the private sector. It is important, therefore, to establish an environment that encourages private invèstment in human capital. The first section of this chapter proposes changes that will help create such an environment. While private investment in human capital is crucial, it will not be sufficient to meet all our needs. Public initiatives at the federal, state, and local levels will be required to fill the gaps in our system of lifetime education and training. If we are to fill these gaps, we must reverse the decline in federal monies devoted to human resource programs. Between 1978 and 1988, federal expenditures on these programs fell from 0.85 percent to 0.45 percent of the Gross National Product. These low levels of funding make it impossible to serve many who are in need. For example, for every three adults now enrolled in Adult Basic Education programs, there is one on a waiting list. Given the increasing importance of workforce literacy, we cannot afford to continue turning away people who want to learn. 15 In addition to increasing the level of public resources, we must focus our expenditures on those economically disadvantaged persons whose needs are unlikely to be met by private investment alone. The Job Training Partnership Act (JTPA), America's largest federal training program, is not sufficiently targeted on such individuals. Below we discuss the JTPA amendments that the Secretary of Labor has recently proposed to address this problem. These amendments also encourage coordination across programs and agencies. In the second section of this chapter, we make recommendations regarding the funding, focus, and coordination of our public education and training programs. EMPLOYER INVESTMENTS IN HUMAN CAPITAL If we are to maintain our status as a major economic power, we must create an American workforce that can adapt to increasingly sophisticated methods of production. Adaptation will require retraining, and retraining will in turn require that workers (both young and old) have strong reading, computation, problem-solving, and reasoning skills. Both basic skills instruction and retraining will require substantial new investments. U.S. firms are already spending significant amounts of money on the education and training of their workers. It has been estimated that employers currently spend $30 billion annually on formal training. While this amount seems large, it is important to remember that these expenditures are spread across 108 million workers and equal only 1.4 percent of firms' payroll expenses. In addition, the expenditures are very unevenly distributed across workers, with high-wage workers receiving the vast majority of the training. One major obstacle that inhibits employer-provided training is that workers who leave a firm take their skills with them. Workers' mobility reduces employers' expected returns on training investments, thereby reducing the level of those investments. In some countries, such as Germany and Sweden, widespread use of apprenticeship programs helps to lengthen the period of time that workers stay with the firm, thereby giving the firm a longer period of time to recoup its investment. In other countries where employment relationships between many workers and their employers are long lasting, mobility of human capital is a lesser concern. According to a report from the Organisation for Economic Cooperation and Development, the average U.S. worker has been in his job for 7.2 years. Of the 14 member countries included in the report, only Australia has lower average job tenure. In the U.S., where there are limited numbers of apprenticeship programs and where job turnover is relatively high, public policies are needed to encourage human capital investment. 16 The difficulty that employers have in recouping their investment in human capital is similar to the problem that firms face when they invest in research and development. The benefits of research and development often spill over to other firms and the rest of society. As a result, such investments may produce greater benefits for others than for the firm making the investment. Consequently, we use tax policy to create incentives for research and development. As is the case with research and development, one employer's investment in training may benefit other employers when trained workers move between firms (the mobility problem). Just as society can benefit from additional expenditures on research and development, SO too can we benefit from additional human capital investments. France has already established a refundable training tax credit which essentially requires all firms to spend at least a minimum amount on education and training. Under this system, firms must either spend a specified minimum percentage of their payroll to train their employees or pay that same percentage into a government administered training fund. The experience in France indicates that virtually all employers make at least the minimum required training expenditure; that is, few firms actually pay the tax. While we do not endorse the specific approach chosen by France, we do believe that the time has come for America to establish a corporate income tax credit to stimulate human capital investment. There are several concerns that should guide the design of such a tax credit. First, a tax incentive for training should be carefully designed SO that it stimulates new investment and does not subsidize training that would have occurred in the absence of tax incentives. The research and development tax credit focused incentives by basing the credit on the difference between current expenditures and the average of expenditures over the three previous years. We advocate a similar approach for the training tax credit. For technical reasons, however, we suggest the use of a longer base period. A second important concern about the design of a training tax credit is the definition of allowable expenditures (i.e., those that qualify for the credit). Since many categories of expenditures could be distantly related to training, the credit must be based on fairly narrow and specific expenditure categories. In the absence of such limitations, firms would have incentives to adopt extremely broad definitions of training expenses. It is important, however, to limit the definition without limiting employers' choices regarding the content and intensity of training. We suggest that the training tax credit be based on expenditures in the following categories: compensation of employees whose sole duties are the design, implementation, or presentation of training programs; the purchase or development of instructional materials and equipment; and payments to third parties (e.g., schools) that provide education or training services. 17 A final important question is whether the tax credit should be limited to expenditures for the training of a particular category of workers. For example, the credit could be restricted to training expenditures for employees who are nonexempt under the Fair Labor Standards Act. A restriction of this type would reduce the revenue loss associated with the credit and would focus the subsidy on those workers who currently receive the least training. A potential problem with a restricted credit is that it would not encourage the broad spectrum of training that many believe is required. We encourage the Department of Labor to consider this issue as specific tax credit proposals are developed. 15. The federal government should create a tax credit to encourage employers to increase expenditures on education and training, guided by the concerns discussed above.¹ The extent and content of employer-provided education and training are major determinants of workers' economic futures. Consequently, workers want to participate in the design of these programs. Recent successful collaborations between unions and management in the automobile and telecommunications industries, as well as participative training programs in the computer and health care industries, have shown the tremendous value of worker input in the design and operation of training programs. 16. Employers should be encouraged to seek input from workers in making decisions about training. The Department of Labor should collect and disseminate information on successful collaborative training programs. Just as the corporate tax treatment of employer-provided education and training expenses can affect the level of human capital investment, SO too can the personal tax rules. For 10 years ending in 1988, employer-provided education was not treated as taxable income to the employee. With the expiration of section 127 of the personal income tax code at the end of 1988, employer-provided education benefits became taxable income if the education was not required for the employee's current position. This new treatment discourages workers from accepting employer-provided education related to new occupations. Many low and middle income workers cannot afford to pay taxes on these benefits, even if the education is crucial for advancement. Tax provisions that discourage preparation for new occupations make little sense in a rapidly changing economy, where our workforce must adapt with increasing speed. 1 Commissioner Becker has requested that we note his dissent from this recommendation. 18 17. Personal income tax rules should be changed, restoring the exemption for employer-provided education and training benefits that are not directly related to an employee's current job. Reinstating section 127 of the personal income tax code would achieve this objective. Other obstacles that discourage firms from investing more in their workers are the difficulty and expense associated with creating effective training programs. Most firms are not primarily in the business of providing education or training, and many are not familiar with the most effective instructional techniques. These problems are particularly acute for small firms, but even large firms may encounter difficulty providing training in highly specialized skills. Many of these employers would benefit from technical assistance. One promising focus for such assistance is computerized education and training techniques that can often be a cost-effective method of providing training to employees. 18. The federal government should encourage the provision of basic skills education, as well as specific job training, by providing technical assistance and collecting information on "best practices. In particular, the use of computerized training methods should be encouraged through the dissemination of information on the use of computers in military, apprenticeship, and other forms of training. Another way that firms can reduce the difficulties of providing training is to form multi-employer training programs. The premise of such programs is simple; employers are more willing to invest in their workers' training if they know that other employers in the industry are doing the same. That way, when workers move between firms, the firms' investments are exchanged rather than lost. Unionized construction firms already have multi-employer apprenticeship programs, created under collective bargaining agreements. Individual employers support these programs through contributions to a centralized training fund. The workers who are trained emerge with a set of specific job skills, competencies, and credentials that are of value to many employers. Programs of this type hold promise for the non-unionized sector as well, but may be viewed as violations of U.S. antitrust laws. The antitrust concern is analogous to that raised regarding multi-firm research and development activities. This concern was addressed through the passage of the National Cooperative Research Act of 1984, which permits the establishment of certain research and development partnerships. A similar legislative initiative may be needed to allow for employer training cooperatives in non-unionized industries. 19 19. Employers should be encouraged to work together to establish training programs and certification procedures for skills that workers gain through on-the-job training. Antitrust laws may need to be amended to allow non- unionized employers to cooperate in the provision of training. Vendor-provided training is most commonly used by small employers who do not have training programs of their own. Thirty-one percent of all formal, employer-provided training is purchased outside the firm. Working in partnership with business, community colleges are becoming an increasingly vital and dynamic source of education, training, and retraining, by providing customized classes responsive to employers' evolving needs. We endorse these partnerships and encourage their expansion. As is the case with other types of training, vendor-provided training is most valuable when workers leave the training with certified competencies or other credentials that are well understood and widely valued by employers. Certification programs for many types of training have already been developed by state governments and professional associations. An added advantage of such programs is that they provide both workers and employers with information about the quality of training provided by different vendors. For example, vendors that produce large numbers of graduates who pass the state's occupational test gain a good reputation, making it more difficult for ineffective or fraudulent programs to survive. 20. The federal government should provide technical assistance to state governments, professional associations, and the business community as they develop explicit standards for job skills and competencies based on specific occupational tests. The results of these tests should be used to create easily understood, portable credentials that certify a worker's skills. GOVERNMENT TRAINING PROGRAMS Although the private sector has an important role to play in providing lifetime education and training, we cannot realistically expect private employers to meet the universe of need, especially for those individuals with the most severe skill deficiencies. Even if primary and secondary schools are greatly improved, there will always be some individuals who leave school without the basic skills needed to function effectively in the workplace. Providing a "second chance" for those who are severely disadvantaged has been, and must continue to be, a major role of government training programs at the federal, state, and community levels. An enormous number of adults with literacy problems today will still be part of the workforce well into the twenty-first century. 20 Increasing the literacy of native-born adults and strengthening the English proficiency of immigrants will be continuing needs. Current government support for the provision of basic education to adults, however, falls far short of meeting those needs. Our literacy programs now serve only 1 to 2 percent of eligible adults. Waiting lists for adult basic education classes average 35 percent of enrollment; waiting lists in urban areas are even longer. In this country, we are strongly committed to publicly supported education for children and teenagers through the high-school level. This commitment takes the form of a right, established in the constitution of every state. Although relevant federal and state programs exist, the commitment to meeting the basic skill needs of adults is much weaker. That weakness is inconsistent with the importance of upgrading the skill level of the nation's workforce. It has been estimated, for example, that the current waiting lists for programs funded by the Adult Basic Education Act could be eliminated at a cost of $64 million per year. While this estimate might prove to be conservative if program expansion produces greater demand, it points to one way that our commitment to basic skills education could be strengthened at a relatively low cost. It is important to recognize, however, that many individuals with young children will have difficulty taking advantage of basic skills education programs unless affordable child care is available. In Chapter 3 we address this issue and make recommendations for increasing the availability and affordability of child care. 21. Federal and state governments should work together to ensure lifetime access to basic skills education for adults, with the objective of eliminating illiteracy among adults by the year 2000. Federal education and training programs were strengthened in 1982 by the passage of JTPA, which focused services on economically disadvantaged adults and youth. Nonetheless, there is room for improving JTPA's effectiveness in providing services to those who need them most. The combined effect of the JTPA's performance incentives and funds allocation formula makes it difficult for deliverers to serve individuals in need of remedial education. As a result, the program tends to "cream," serving some individuals among the economically disadvantaged population who are likely to find employment without assistance. Creaming reduces the effectiveness of the program by devoting resources to some individuals who derive little or no net benefit from participation. In its recent report, the JTPA Advisory Committee suggested changes that would result in more intensive and coordinated services for those among the economically disadvantaged who could benefit most from participation. Amendments proposed by both the Secretary of Labor and members of Congress are consistent with the Committee's suggestions. 21 22. We endorse Job Training Partnership Act amendments to increase targeting of resources on those in need of remedial education, to improve coordination of JTPA with other human resource systems, and to increase the emphasis on basic skills remediation. Since its enactment in 1982, JTPA has received no increases in funding. Because of inflation, real expenditures are now 25 percent below the 1982 level. In 1987, Title II-A of JTPA (the title receiving the largest allocation) had an annual budget of $1.9 billion, enabling it to serve only 5 percent of the eligible population of disadvantaged youth and adults. 23. The level of funding for Title II-A of the Job Training Partnership Act should be increased to enable a greater percentage of the eligible population to be served. In addition, expenditures should be indexed to assure that future funding levels keep pace with inflation. Cost/benefit studies indicate that the Job Corps' residential program (Title IV-B of JTPA), which provides a structured and supportive learning environment for extremely disadvantaged youth, is an effective education and training program. We believe that the proven success of the Job Corps program justifies its expansion. 24. The level of funding for the Job Corps program should be increased. Recent legislative changes have reduced the share of JTPA funds to be allocated at the state level by governors. This change has had the unfortunate effect of increasing the difficulty of arranging training programs, such as industry-wide collaborative programs, that span service delivery areas within a state. While we make no recommendation to address this problem, we suggest that the Secretary of Labor consider allocating a significant portion of discretionary JTPA funds to statewide programs. An additional concern about current government training programs is that many economically disadvantaged men face financial barriers to their participation. Current training programs provide little or no financial support to participants. Since men are typically ineligible for welfare programs, they may find it difficult to sustain themselves and their families while participating in training programs. Efforts are needed to draw low-income men, particularly black men, into training programs and into the labor force. 25. The federal government should expand and strengthen training programs for the disadvantaged with emphasis on the needs of low-income men with family responsibilities. These programs should provide opportunities for structured work experience, with precisely defined objectives, responsibilities, and duration. 22 Disabled persons are another group that can benefit from programs to enhance employability. Limited resources, however, force us to make difficult choices about who will be served by these programs. We can either spend small amounts of money on a large number of people, or we can concentrate our resources on those who stand to make substantial gains. Just as we want JTPA to focus on the severely disadvantaged because they are likely to benefit most, we want our disability programs to focus on those among the disabled who are likely to realize the largest labor market gains. 26. Vocational rehabilitation and disability programs should try to identify and focus on those individuals who are most likely to gain substantial economic benefit from program participation. Another significant public initiative for training and education is student grants and loans. While both grants and loans for student aid have grown in real terms since the 1970s, the growth in loans has been much more dramatic. A recent study by the American Council of Education reports that low-income minority students are less likely to obtain a Guaranteed Student Loan than are similar low- income white students. Other research indicates that grants encourage higher rates of participation in post-secondary education among minorities. 27. Additional federal resources should be devoted to training and education grants for low-income students who have graduated from high school or received a general equivalency diploma. The responsibility for federally supported education and training programs is shared by a variety of federal and state agencies: the Department of Labor's JTPA program is administered by local Private Industry Councils; under the Job Opportunities and Basic Skills (JOBS) component of the Family Support Act, the Department of Health and Human Services funds training programs for welfare recipients through state welfare departments; and adult basic education and vocational education programs are administered through state education departments. This fragmentation and associated administrative complexity make it difficult to integrate training services, respond strategically to evolving workforce needs, and use limited resources efficiently. The necessary coordination across executive agencies can only be achieved through Presidential leadership. 28. The President should create a permanent committee, including business and labor representatives as well as the Secretaries of Commerce, Education, Health and Human Services, Housing and Urban Development, and Labor, to coordinate human resource policy on a continuing basis. The committee's first task should be to merge education and training programs wherever possible. 23 3. PUTTING QUALITY TO WORK There are two fundamental ways to improve the quality of the workforce. One is to invest in the labor market skills of the population; the other is to make more efficient use of the skills that already exist. The previous two chapters have focused on the former; here we consider the latter. One way to promote labor market efficiency is to reduce the barriers that prevent some individuals from fully participating in the labor force. One of these barriers is employment discrimination against minorities, women, older workers, and disabled persons. Although employment discrimination is prohibited by a variety of state and federal laws, there is a continuing need for vigilance and active enforcement on the part of responsible agencies. These laws are motivated by principles of fairness, but their enforcement creates the additional benefit of promoting efficiency by focusing labor market decisions on objective factors such as skill requirements and applicants' qualifications. We have no new anti-discrimination initiative to recommend, but we encourage the vigorous enforcement of existing laws. Another way to promote labor market efficiency is to create supportive work environments that ease the tension between work and family responsibilities, thereby facilitating the labor force participation of individuals with such responsibilities. In coming decades, the slow growth of the labor force will create incentives for employers to create supportive work environments. The recommendations in the first section of this chapter suggest several ways to facilitate this process. Matching job seekers with job vacancies is another important factor determining the efficiency with which the labor market operates. Human resources are wasted if qualified applicants are available while jobs go unfilled. The second set of recommendations in this chapter offers ways to facilitate the process of matching workers with jobs so that the skills already available in the labor market are used more effectively. Another fundamental determinant of labor market efficiency is the level of worker productivity. The third set of recommendations in this chapter offers ways to increase productive efficiency through worker participation in the management process and through innovative compensation arrangements. 25 FACILITATING WORK/FAMILY BALANCING As women's labor force participation has increased, both dual-earner couples and families headed by single working mothers have become much more common. American workers, both men and women, who in the past had an adult partner in the home, now find themselves juggling work and family responsibilities which are likely to be in frequent, and unavoidable, conflict. The pressures come in many forms including difficulties with child care and elder care arrangements as well as family illness. From the employer's perspective, work/family conflicts lead to unscheduled absences, tardiness, misuse of working time, and difficulty in retaining valued employees and attracting new ones. Some employers already realize that they can no longer adhere to the old principle that family issues have no place at work. Enlightened self-interest has inspired a few of them to establish programs to help employees solve work/family problems. Emerging labor shortages will undoubtedly induce additional employers to do the same. There is a compelling public interest in accelerating the process of creating supportive work environments that enable all workers to be full participants in the workforce. The labor force participation rate of married women with young children has, on average, increased more than one percentage point each year since 1950. Today, 63 percent of all mothers with children under the age of 14 are in the labor force. This economic change has brought about unprecedented social changes, including increased needs for day care for pre-school children and after-school care for many older children. We have confined our deliberations to the child care needs of parents who are employed, seeking employment, or participating in an education or training program. As noted in the Introduction, the developmental needs of disadvantaged children whose parents are not in the labor force was deemed beyond our purview. Throughout our year-long deliberations, we followed the considerable number of legislative initiatives designed to address the child care issue. Because of the rapid evolution of these initiatives, it was not possible for us to endorse a particular bill. We have, therefore, chosen to make recommendations that describe certain features for strengthening our child care system while maximizing parental choice among a variety of affordable, quality child care options. Community-based resource and referral organizations have demonstrated their effectiveness both in providing the information that parents need to make appropriate choices and in stimulating the supply of child care services. In most communities, however, these organizations are inadequately funded. We are convinced that an 26 expansion of community-based resource and referral organizations would have three major benefits. First, it would help parents find appropriate child care arrangements while preserving maximum parental choice. Second, it would enhance each community's ability to identify and react to its own needs and priorities, including pre- school and after-school programs, sick child care, and transportation. Third, it would serve as a magnet for community-based, public/ private partnerships, thereby creating a vehicle for employer involvement and support. In sum, community-based resource and referral organizations can create a facilitative network without adding an additional layer of government. We strongly urge federal leadership to encourage the expansion of community-based child care resource and referral organizations. 29. The federal government should provide grants to the states to support the efforts of community-based child care resource and referral organizations. The child care concerns of many parents are aggravated by the high cost of quality care. Child care is a financial burden to many families; it is virtually unaffordable to a large number of low-income Americans. For these people, child care problems can be a serious barrier to job training and employment. Under current tax law, a child care tax credit is available to families with working parents who have children under the age of 15. A high degree of flexibility in the program allows parents to select from a wide variety of arrangements. We are persuaded that the existing tax credit for child care is an extremely useful way to help parents with their child care expenses while maintaining parental choice. The principal drawback to the current credit is its irrelevance to poor families because they typically pay no income taxes. This problem could be corrected by making the credit refundable to low- income parents. 30. The existing child care income tax credit should be made refundable to parents too poor to pay income taxes. Even after the credit is made refundable, many families will still lack the resources to pay for quality child care. We believe that the federal government should provide additional child care subsidies to low-income families. We have been unable to agree on a choice among the alternative ways to provide increased subsidy, such as a more generous child care tax credit, vouchers, or grants to child care providers. We do agree, however, that increased federal subsidization should be targeted on low-income families. 27 31. The federal government should increase its subsidization of the child care expenses of low-income families. 2 Another way to help families with their dependent care needs is to encourage employers to provide dépendent care benefits. Such encouragement could take the form of tax incentives or matching grants for employers, but we are concerned about the fiscal implications of these approaches. A second way to encourage the provision of dependent care benefits is to demonstrate the returns that employers can expect from such programs. While anecdotal evidence suggests that employer-sponsored child care initiatives improve employee morale and reduce tardiness and absenteeism, little hard evidence exists on the ability of these initiatives to improve employees' productivity or employers' profitability. Many employers, especially smaller ones, are likely to be more willing to provide child care or other work/family support if such support can be demonstrated to have positive, bottom-line effects. 32. Government should support and disseminate research that examines the effectiveness and profitability of different types of employer-sponsored dependent care arrangements. The Secretary of Labor should encourage employers to offer the types of benefits that are found to be most effective. Another important issue related to the labor force participation of individuals with young children is employers' parental leave policies. The availability of such policies can greatly improve parents' abilities to fulfill both their family and work responsibilities. After extensive deliberation, we have been unable to reach agreement on whether employers should or should not be required by law to provide parental leave. As a result, we have chosen not to make any recommendation on mandated parental leave. We do, however, strongly encourage employers to make such leaves available, and we expect that future labor shortages will compel many employers to do SO. A related dilemma in creating supportive work environments is the need to offer employees flexible work schedules without jeopardizing the firm's productivity and profitability. Such flexibility may be particularly valuable for older workers and women with young children. Some employers have already adopted a variety of flexible scheduling arrangements, including flextime, part-time employment, and leaves of absence. Of the many employers who have not yet introduced scheduling flexibility, some may find it difficult to do so because of the nature of their business. We believe, however, that other employers would be able to adopt these arrangements and may simply need encouragement to do SO. 2 Commissioner Becker has requested that we note his dissent from this recommendation. 28 33. Public and private employers, in cooperation with employees, should increase the availability of flextime, leaves, career-oriented part-time employment with fringe benefits, and other arrangements to increase work schedule flexibility. The Secretary of Labor should use her position of leadership to expand such arrangements within the Department of Labor and to encourage their adoption by other public and private employers. 34. Federal and state governments should examine existing overtime laws to determine whether they can be modified to facilitate voluntary flextime arrangements without compromising the protection of workers provided by the overtime laws. MATCHING WORKERS AND JOBS One way to enhance labor market efficiency is to facilitate the process of matching the skills that are needed by employers with the skills job seekers bring to the labor market. Several existing institutions and programs influence this matching process including the public employment service, the unemployment insurance system, U.S. immigration policy, and programs for dislocated workers. Since the General Accounting Office has already initiated a major evaluation of dislocated worker programs, we chose not to devote additional resources to a second evaluation. This section focuses on the public employment service, the unemployment insurance system, the enhancement of workers' geographic mobility, and immigration policy. The public employment service (ES) is made up of the U.S. Employment Service and individual State Employment Security agencies, all supported by an annual federal budget of approximately $800 million. This federal/state system is responsible for delivering a variety of labor market services including: the matching of job seekers with job vacancies through testing, assessment, and referral activities; the enforcement of the job search requirements of unemployment insurance and other programs; and data collection for the Bureau of Labor Statistics. Given the significance of these activities, it is important to find ways to make the ES as effective as possible. The most promising way to improve the ES would be to develop a system of accountability similar to that used in JTPA. Accountability must, however, be introduced in ways that both recognize the multiple functions assigned to the ES and preserve and enhance the flexibility available at the state level. 29 The Resource Allocation Formula (RAF), a system for creating accountability in the ES, was tried in the past with little success. The RAF was a performance-based allocation mechanism that encountered major problems of inflexibility and difficulty in measurement. Eventually this formula was abandoned. Since then, however, our experience with JTPA has taught us a great deal about the use of performance standards in employment and training programs. Much of what has been learned could now be used by the ES. The Secretary of Labor already has the statutory authority under the 1982 Wagner-Peyser amendments to set performance standards for the ES; we urge the Secretary to consider performance standards for the ES similar to those used by JTPA. Some adjustments would be needed to accommodate the mission of the ES. Standards should be based on placement rates, wage rates, client characteristics, new job orders, differences in state economies, and efforts to integrate ES services with other federal, state, and local employment and training programs. There will inevitably be costs associated with implementing performance standards, but the JTPA experience convinces us that the benefits of such an undertaking would justify the costs. Once ES performance standards are in place, states should be encouraged to consider innovative methods to meet the standards. 35. The Department of Labor should reconsider the use of performance standards for the employment service in light of what has been learned from the experience with the Job Training Partnership Act. Another major institution affecting labor market efficiency is the unemployment insurance (UI) system. This system is a combination of federal and state programs which fund payments to laid-off workers with payroll taxes collected from employers. One major concern about today's UI system is the surprisingly small percentage of unemployed individuals who receive UI benefits. Between 1980 and 1988, the percentage of the unemployed who received benefits fell from 50 percent to 32 percent. This change has already prompted a substantial effort by the Department of Labor to understand and address this problem. Unfortunately the process will take at least two years of data collection and analysis. We strongly endorse this effort and expect that the results of the study will be of great use in resolving the coverage problem. While it would be premature for us to make recommendations on the coverage issue, other important UI issues related to experience rating, employer incentives, and the solvency of state systems can and should be addressed. 30 The UI system is financed by payroll taxes that are "experience rated"; that is, each firm's tax payments are based on the extent to which its employees use the UI system. The experience rating is, however, incomplete; firms that make heavy use of layoffs have tax obligations that are smaller than the UI benefits paid to workers laid off by those firms. Other firms that use layoffs sparingly have tax obligations that are larger than the UI benefits paid to their laid-off workers. The system results in a subsidy from firms that use layoffs sparingly to firms that make heavy use of layoffs. The degree of experience rating within each state is determined by the minimum and maximum tax rates set by the state UI system. If a firm is at the maximum tax rate, layoffs will not increase the firm's tax obligation. Hence, firms who are facing the maximum tax rate have an incentive to respond to economic downturns by laying off workers rather than by cutting back on workers' hours. There is substantial evidence that firms at the maximum tax rate do, in fact, tend to use this option; that is, research indicates that our current UI system encourages layoffs. Another important aspect of the UI system is the fact that employers pay taxes on workers' wages up to a maximum level of earnings, called the tax base. If the tax base is too low, employers have an incentive to substitute smaller numbers of high-skill workers (with high earnings) for larger numbers of low-skill workers (with low earnings). While the magnitude of this incentive is likely to be small, it should, nonetheless, be eliminated. Finally, a state's choice of a UI tax base and rate schedule affects not only firms' decisions about hiring and laying off workers, this choice also affects the solvency of the state's UI system. Many states rely on tax surcharges to increase their UI solvency, which has the undesirable effect of reducing the degree of experience rating in the system. The preferred alternative is for states to adjust their tax rates and tax base to increase both their fund solvency and their degree of experience rating. 36. State Unemployment Insurance systems should be modified to increase the degree of "experience rating" and reduce the risk of fund insolvency. The degree of experience rating can be increased by changing the tax base, tax rates, and other features of state systems (such as non-charged benefits). Measures taken to reduce risks of insolvency should be designed to increase, rather than decrease, the level of experience rating in states. The Unemployment Insurance Service of the Department of Labor should encourage the adoption of such changes by providing technical assistance and by monitoring the degree of experience rating of individual state systems. 31 One perennial difficulty in matching workers and jobs is that the job vacancies and the unemployed workers are often in different parts of the country. It is in the public interest to help job seekers explore opportunities in other locations and relocate when necessary. Currently, moving expenses are subsidized through the personal income tax. Despite this subsidization, however, a geographic mismatch of workers and jobs remains. 37. The federal government should develop programs to encourage nationwide job search and worker relocation. In particular, these programs should provide residents of each state with information about job openings in other states and develop creative, low-cost measures to provide transportation for job seekers and workers who relocate. Immigration is another important factor influencing the operation of the labor market. The current focus of immigration policy is on the humanitarian principles of family reunification and refugee resettlement. During fiscal years 1985-1987, an average of 591,078 immigrants legally entered the United States each year. Fewer than 9 percent of these immigrants entered under worker preferences, which by law are subject to an annual cap of 54,000. In fact, immigrants admitted as workers accounted for less than 4 percent of all immigration because their spouses and unmarried minor children used more than one-half of the available visas in the worker preference categories. In designing immigration policy, it is important to recognize that long-term market forces are likely to correct labor shortages, even if immigration policies are not adjusted. By using immigration policies to relieve shortages, we may miss the opportunity to draw additional U.S. citizens into the economic mainstream. We should always try, therefore, to train citizens to fill labor shortages. In some cases, however, it may be necessary to draw on foreign workers more heavily than we do today. 38. Although our immigration policy should be made more responsive to labor market needs, we must always strive to upgrade the skills of American citizens before we draw on foreign workers to fill shortages. Increased sensitivity to labor market needs should be achieved without compromising the humanitarian objectives of immigration policy. To establish a sound basis for revising immigration policy, the Department of Labor should focus significant research effort on the likely impacts of proposed changes in immigration policy on skills gaps and wage structures. 32 WORKER PARTICIPATION AND COMPENSATION A growing body of evidence indicates that worker productivity can be increased through innovations in employee relations. Programs that allow employees to participate in workplace decisions affecting their jobs appear to have a particularly strong effect on performance and productivity. Financial incentives such as gainsharing and ownership programs give employees a stake in the goals of the firm and can create incentives for employees to advance those goals. Available research suggests that participation, financial incentives, and other innovations are particularly effective when they are introduced as a package. Work environments that involve a high degree of participation typically have low rates of worker turnover. With greater stability, firms are willing to invest more in the training of their workers, thereby increasing workers' productivity and earnings as well as firms' profits. Increasing worker participation may, therefore, be an essential component in creating a more productive, high-wage economy. One obstacle to the implementation of participation programs is our lack of knowledge regarding which types of programs are most effective in different contexts. Most of the information we have comes from success stories; we know very little about situations in which the programs have failed. We need carefully designed experiments in a variety of environments where the programs are not introduced as a result of prior problems (or successes) and where the situation before and after can be carefully observed. Another obstacle that inhibits increased use of participation programs in non-union firms is Section 8(a)(2) of the National Labor Relations Act. This section of the Act creates potential confusion about the legality of participation programs by making it an unfair labor practice for an employer to "dominate or interfere (with) or contribute financial or other support" to a labor organization. A company-sponsored participation program could be considered a labor organization if it addressed terms and conditions of employment and could, therefore, be illegal. Experts at the Department of Labor and elsewhere believe that the potential for litigation in this area has inhibited participation programs. 39. The federal government should encourage worker participation by disseminating information on "best practices, by setting an example with participation programs for federal employees, and by clarifying the legality of cooperative programs under the National Labor Relations Act. 33 While the structure of employee compensation is, and should be, set by the private sector, the federal government can help to enhance labor market efficiency by providing information on innovative and "best practice" compensation arrangements. 40. The Department of Labor should conduct research and disseminate information to help employers and employees explore the promises and problems of innovative compensation plans. Pensions and other fringe benefits are an important component of employee compensation. As our workforce has become more mobile, we have become increasingly concerned about the portability of pensions and other fringe benefits. 41. The Secretary of Labor should initiate a study of both the opportunities and problems involved in adding portability features to existing public and private pension programs and other fringe benefits. Effective relations between labor and management are also an important factor in ensuring workforce quality and labor market efficiency. Many observers believe that our labor laws and policies are an outmoded remnant of an era when adversarial relationships were the norm. These observers also suggest that the present system of labor-management relations and the consequent employment practices impede efforts to develop greater cooperation between labor and management. Questions about the relationship between public policy and labor-management relations are complex and deserve a separate, in-depth examination by a task force of leaders from labor, business (including small business), and government. Among other issues, this task force should address worker participation; ways to restructure the union certification process to reduce litigation and delay; the distinction between mandatory and permissive bargaining topics; and issues concerning the definition of bargaining units. 42. The Secretary of Labor should create a tripartite task force to examine labor-management relations and to provide recommendations for public policy. 34 4. UNDERSTANDING THE WORKFORCE It is imperative that our human resource policy be informed by accurate data and careful research. The collection, analysis, and dissemination of information is a traditional and appropriate role of government. Today the Department of Labor, through its Bureau of Labor Statistics (BLS), plays a major role in the federal government's data collection effort. While the quality of data currently collected by the BLS is exceptional, budgetary limitations have constrained the ability of the BLS to develop new data sources in response to emerging needs. The first section of this chapter establishes the pressing need for additional support of the BLS. In addition to collecting data, both the Departments of Labor and Education conduct and support a broad array of research, evaluation, and information dissemination activities intended to inform public policy and private action. It is essential that these activities be guided by rigorous standards of social science research and that they be carefully focused on the most pressing policy issues. In the second section of this chapter, we make suggestions concerning a human resource research agenda for the 1990s. LABOR MARKET DATA FOR THE 1990s Data provided by the BLS are used by the government to implement programs, monitor the economy, allocate funds, and index transfer payments. These data are also used by the private sector for economic planning, collective bargaining, wage administration, and escalation of long-term contracts. Financial markets around the world await the monthly BLS releases to judge the future outlook of the American economy and the likely directions of financial markets. The data provided by the BLS affect billions of dollars of public and private expenditures. For example, a 1 percent increase in the Consumer Price Index (CPI) leads to increased federal expenditures on entitlement programs and reduced revenues from (indexed) income tax receipts totaling $5 billion. One-half of the U.S. population live in households where income is directly affected by changes in the CPI. Changes in the Producer Price Index can trigger as much as $300 billion worth of changes in long-term contracts. Local area unemployment statistics are important components of formulae which allocate billions of dollars of federal funds to states and local areas. Finally, wage information collected by the BLS affected nearly $40 billion in 1987 funding for Rehabilitation Services, Aid to Families with Dependent Children (AFDC), Medicaid, vocational education, alcohol and drug abuse programs, and mental health services. 35 The BLS experienced budget reductions in the late 1970s and extremely deep cuts in the early 1980s. As a result, BLS eliminated 19 major data collection programs in 1982 alone. Since that time there has been a series of across-the-board reductions in the BLS budget. In this climate, it has been extremely difficult to undertake new initiatives and to incorporate new methodological improvements into existing programs. Rather, considerable effort has been made simply to protect and preserve the integrity of current data dissemination efforts. There is a pressing need for quick access to new household survey data. While regular monthly employment surveys are processed very quickly, it takes at least two years to set up, collect, and analyze new household surveys in response to special needs. It is difficult, if not impossible, for policymakers to wait two years for answers to their questions. In recent years the BLS has developed a capability to conduct timely surveys of firms, but resource constraints have prohibited comparable innovation for household surveys. Such surveys would cost $1 million annually, and would cut by one-half the time needed to answer pressing policy questions. This is but one example of an important need that has gone unmet for want of a relatively small amount of money. 43. The funding of the data collection and dissemination efforts of the Bureau of Labor Statistics should be significantly increased. New resources should be devoted to the development of quick turnaround household surveys, support of longitudinal data bases, and pilot studies of new data methods. For more specific information on priority initiatives, see Commission background paper #44. A HUMAN RESOURCE RESEARCH AGENDA FOR THE 1990s Quality, nonpartisan labor market research is the best foundation for labor market policy. Absent this research, policy will be based, at best, on intuition and, at worst, on special interests. As a part of our effort to review human resource policy, we commissioned a series of background papers summarizing a broad spectrum of academic and nonacademic research on subjects relevant to our charter. The titles and authors of. these papers are listed in Appendix 3. The dearth of reliable information on many important questions frustrated many paper authors and impeded our deliberations. This paucity of research is due in large part to low levels of government funding for human resource research. Since 1975, inflation-adjusted funding levels for research and evaluation have been cut by 52 percent in the Department of Labor, while those in the Department of Education have been cut by 63 percent. We 36 believe that it is essential that the Departments of Labor and Education take the lead in addressing this problem by increasing their support of research. One particularly important focus for their research is the effectiveness of government-funded human resource programs. Policymakers need to know which programs work, which do not, and why. Unfortunately, answering these questions is often expensive and time consuming. For example, the process of evaluating JTPA is expected to cost $20 million and take a total of six years (ending in 1992). This commitment to research is entirely reasonable since the program spends nearly $4 billion each year. One reason for the expense of the JTPA evaluation is the high cost of conducting experiments in which randomly selected individuals participate in a program and are then compared to individuals who are not participants. This experimental approach, modeled on those used in medicine and the physical sciences, has produced most of what little we know about the effectiveness of training programs. Unfortunately, we know even less about the long-run effects of training programs because long-run experiments are particularly expensive and time consuming. Hence, we call for an increased commitment to principles of experimental design in the long-run evaluation of human resource programs. Another important focus for Department of Labor funded research is to develop a better understanding of emerging labor market trends. The growth in the proportion of minority men with low earnings is an example of an important but poorly understood trend. A better understanding of this, as well as other phenomena, would enable policymakers to design more effective programs for assisting those who are disadvantaged in the labor market. It is also essential that Department of Labor research focus on the study of private sector labor market innovations by collecting information on which innovations work, which do not, and the conditions under which some work while others do not. The dissemination of this information will allow many organizations to learn from the successes and failures of a few. In some cases the Department of Labor may be able to encourage private initiatives that facilitate measurement of the results of specific innovations (e.g., controlled experiments). In general, the most important factors to be measured are bottom-line effects on productivity, employees' incomes, and employers' profits. 44. Research should be viewed as a major component of the missions of both the Departments of Labor and Education and should be funded accordingly. The research agenda should emphasize experimental evaluations of human resource programs, analysis of determinants of the labor market status of the economically disadvantaged, and collection and dissemination of information on best employment practices. 37 APPENDICES APPENDIX 1: COMMISSION CALENDAR July 11, 1988 Establishment of Commission on Workforce Quality and Labor Market Efficiency by the Secretary of Labor, The Honorable Ann McLaughlin September 19, 1988 White House Reception for Commissioners with President Ronald Reagan September 19, 1988 First Commission Meeting, U.S. Department of Labor, Washington, DC December 6, 1988 Second Commission Meeting, U.S. Department of Labor, Washington, DC April 4, 1989 Third Commission Meeting, U.S. Department of Labor, Washington, DC May 2, 1989 Public Hearing, Northlake Community College, Irving, Texas May 4, 1989 Public Hearing, Indiana World War Memorial, Indianapolis, Indiana May 9, 1989 Public Hearing, School District of Philadelphia, Philadelphia, Pennsylvania May 11, 1989 Public Hearing, Best Western Grosvenor, San Francisco, California May 12-13, 1989 Commission Conference, "International Lessons for U.S. Employment Policy," Institute of Industrial Relations, University of California at Berkeley June 3-4, 1989 Commission Subcommittee Meetings, Annapolis, Maryland June 20, 1989 Fourth Commission Meeting, American Red Cross Headquarters, Washington, DC August 1, 1989 Final Commission Meeting, National Alliance of Business, Washington, DC Labor Day 1989 Release of Commission Report to the Secretary of Labor, The Honorable Elizabeth Dole 41 APPENDIX 2: COMMISSION CHARTER Structure: The commission shall consist of not more than 21 members appointed by the Secretary of Labor and shall include public officials, leading business and union representatives, educators, and other members of the public knowledgeable about human resources. The commission shall be chaired by a person chosen by the Secretary of Labor. If the commission chooses to operate through subcommittees such subcommittees shall present to the commission their findings and recommendations for action by the full commission. Mission: The commission is charged with making specific recommendations for the Department of Labor and the nation to increase the excellence of the American workforce. To carry out its mission the commission shall have the following direct responsibilities: 1. Examine the roles and effectiveness of privately and publicly provided job training and education. 2. Determine the best mechanisms to keep the education system and training providers continuously informed of the changing skill needs of employers and workers. 3. Consider the problem of financing private investments in human capital and determine the best ways to access financial capital markets for that purpose. 4. Assess the appropriate roles of employers, unions, and government in retraining and relocating dislocated workers. 5. Examine ways in which private and public job placement agencies can enhance the efficiency of the changing labor market of the future. 6. Assess the need for greater flexibility of employers' policies to facilitate labor force entry. 7. Evaluate the opportunities to enhance productivity through alterations of the employment arrangement such as innovative pay systems and benefit structures, employment security provisions, and worker involvement. The commission shall have such other responsibilities in the field of human resources as the Secretary may deem necessary to fulfill its mission. Meetings: The commission shall meet at least four times a year at the call of the commission chairperson. Any subcommittees of the commission shall meet at the call of their chairperson with the concurrence of the commission chairperson. Hearings on behalf of the commission may be held by one or more members of the commission with the authorization of the commission chairperson. Management: The commission shall have an executive director who shall be an academic in the field of human resources. The staff of the commission shall be composed principally of employees of the Department of Labor. The commission is authorized, within the limits of its budget, to contract out such of its work as the commission chairperson deems necessary in order to carry out its mission. Reports: The commission shall issue a brief report of its work on December 15, 1988. A final report making specific recommendations shall be made at the termination date. Termination Date: It is anticipated that the commission shall require 12 months to complete its work. The commission shall terminate, in any event, not later than 15 months from the date of this charter. 42 APPENDIX 3: BACKGROUND PAPERS The background papers listed below were solicited to assure that the process of developing policy recommendations would be informed by a comprehensive review of literature relevant to the diverse issues the Commission would address. The papers reflect the thoughtful work of leading experts from academic and private research institutions as well as Commission staff. These researchers became our colleagues while transforming disparate sources of information into a base of knowledge for our deliberations on policy. The Commission gratefully acknowledges their effort. The papers are available in a companion volume to this report titled, Investing in People: A Strategy to Address America's Workforce Crisis, Background Papers. Paper Author(s) 1. "Incentives for Learning: Why American High- John Bishop School Students Compare So Poorly to Their Cornell University Counterparts Overseas" 2. "Schooling for the Modern Workplace" Russell W. Rumberger University of California at Santa Barbara Henry M. Levin Stanford University 3. "Trends in Science and Engineering Education Michael G. Finn and the U.S. Labor Market" National Research Council 4. "Empowering Schools and Teachers: A New James E. Rosenbaum Link to Jobs for the Non-College Bound" Northwestern University 5. "Second Chance Basic Skills Education" Larry Mikulecky Indiana University at Bloomington 6. "The Firm's Decision to Train" Donald O. Parsons Ohio State University 7a. "Empirical Evidence on Private Training" Charles Brown University of Michigan 7b. "Evidence on Private Sector Training" Stephen L. Mangum Ohio State University 7c. "Evidence on Private Sector Training" William M. Ouweneel IBM Corporation 8a. "Introducing New Technology into the Patricia M. Flynn Workplace: The Dynamics of Technological and Bentley College Organizational Change" 8b. "Introducing New Technology into the Greg Kearsley Workplace: Retraining Issues and Strategies" Park Row, Inc. 43 9. "Survey of Government-Provided Training Burt S. Barnow Programs" Lewin/ICF Laudan Y. Aron Lewin/ICF 10. "The Effectiveness of Government Training Margaret C. Simms Programs" Joint Center for Political Studies 11. "Black Male Youth: Their Employment Robinson G. Hollister Problems and Training Programs" Swarthmore College 12. "Facilitating the Flow of Information Between Jorie W. Philippi the Business and Education Communities" Performance Plus Literacy Consultants 13. "Issues in Financing Post-Secondary Education Arthur M. Hauptman and Training" Consultant Jamie P. Merisotis Consultant 14. "The Tax Treatment of Training and John M. Quigley Educational Expenses" University of California at Berkeley Eugene Smolensky University of California at Berkeley 15. "The Unemployment Experience of the Jonathan S. Leonard Workforce" University of California at Berkeley Michael W. Horrigan Bureau of Labor Statistics 16. "Unemployment Insurance: The Worker's James C. Cox Perspective" University of Arizona Ronald L. Oaxaca University of Arizona 17. "Unemployment Insurance Financing, Short- Daniel S. Hamermesh Time Compensation, and Labor Demand" Michigan State University and National Bureau of Economic Research 18. "Utilization of Public and Private Job Search Harry J. Holzer Mechanisms: The Experiences of Employers and Michigan State University Employees" 19. "The Role of the Employment Service" Malcolm S. Cohen University of Michigan David W. Stevens University of Missouri at Columbia 20. "Labor Force Participation of Older Workers" Richard V. Burkhauser Vanderbilt University Joseph F. Quinn Boston College 44 21. "Labor Force Participation and Employment Harry J. Holzer Among Young Men: Trends, Causes, and Policy Michigan State University Implications" 22. "Labor Force Participation Among the Robert Moffitt Economically Disadvantaged" Brown University 23. "Labor Force Participation Among Disabled Monroe Berkowitz Persons" Rutgers University Edward Berkowitz George Washington University 24. "Labor Force Participation of Dual-Earner Ellen Galinsky Couples and Single Parents" Families and Work Institute 25. "Cultural Issues Affecting Labor Force Harriet Pipes McAdoo Participation" Howard University 26. "Facilitating Women's Occupational Deborah M. Figart Integration" American University Barbara R. Bergmann American University 27. "Impact of Child Care on the Bottom Line" Dana E. Friedman The Conference Board 28. "Addressing the Supply Problem: The Family Dana E. Friedman Day Care Approach" The Conference Board 29a. "Part-Time and Temporary Work" Rebecca M. Blank Princeton University 29b. "Temporary Work" Heidi Hartmann Institute for Women's Policy Research June Lapidus University of Massachusetts at Amherst 30. "Working Hours Flexibility" Graham L. Staines Bank Street College of Education 31. "Mixing Careers and Child Rearing" Charles S. Rodgers Work/Family Directions, Inc. Francene S. Rodgers Work/Family Directions, Inc. 32. "The Effects of Mandating Benefits Packages" Olivia S. Mitchell Cornell University and National Bureau of Economic Research 33. "Innovative Compensation Systems: Implications Michael Schuster for Employers, Unions, and Government" Syracuse University 34. "Employee Ownership Plans" Robert N. Stern Cornell University 45 35a. "Employee Participation, Work Redesign, and Thomas Kochan New Technology: Implications for Public Policy Massachusetts Institute of Technology in the 1990s" Joel Cutcher-Gershenfeld Michigan State University John Paul MacDuffie Massachusetts Institute of Technology 35b. "Employee Participation and Involvement" David I. Levine University of California at Berkeley George Strauss University of California at Berkeley 36. "Efforts to Solve Quality Problems" Michael J. Smith University of Wisconsin at Madison Francois C. Sainfort University of Wisconsin at Madison Pascale C. Sainfort University of Wisconsin at Madison Conrad Fung University of Wisconsin at Madison 37. "Impediments to Innovative Employee Relations Richard N. Block Arrangements" Michigan State University Benjamin W. Wolkinson Michigan State University 38. "Cooperative Efforts to Solve Employment William N. Cooke Problems" University of Michigan 39. "Current Economic Issues in Employee Benefits" Stephen A. Woodbury W.E. Upjohn Institute for Employment Research and Michigan State University 40. "Pre-Employment Testing and Employee Lawrence M. Rudner Productivity" LMP Associates and American Institutes for Research 41. "Functional Context Education: Policy and Thomas G. Sticht Training Methods from the Military Experience" Applied Behavioral & Cognitive Sciences, Inc. 42. "The Role of Unions in Improving Workforce H. Peter Cappelli Quality, Labor Market Efficiency, and Effective Commission Staff and University of California at Employee Management" Berkeley 43. "Employer Training of Work-Bound Youth: An Nevzer Stacey Historical Review and New Results" Commission Staff and U.S. Department of Education Nabeel Alsalam U.S. Department of Education 44. "Data Needs for Labor Market Analysis" Michael W. Horrigan Commission Staff and Bureau of Labor Statistics 46 APPENDIX 4: PUBLIC HEARINGS The Commission held public hearings in order to offer a wide spectrum of individuals and organizations the opportunity to provide their views and recommendations on improving the workforce. Hearings were held in Irving, Texas, May 2, 1989; Indianapolis, Indiana, May 4, 1989; Philadelphia, Pennsylvania, May 9, 1989; and San Francisco, California, May 11, 1989. These locations were selected to encourage broad-based participation both with respect to regions of the country and diversity of perspective. The public was asked to address a number of topics related to workforce quality and labor market efficiency. Among these topics were education and training and their financing and tax treatment, matching workers and jobs, enhancing labor force participation through workplace flexibility, and industrial relations and productivity. One hundred-sixteen (116) witnesses presented testimony at the hearings. Written statements were submitted by an additional 105 individuals and organizations. The hearings were a rich source of information, providing many new perspectives on the issues in our charter. The Commission expresses its appreciation to the members of the public who shared their thoughts with us. WITNESSES PRESENTING TESTIMONY Mark Ahearn R. N. Beck State Director, Representing Executive Vice President The Honorable Dan Coats Bank of America United States Senate San Francisco, California State of Indiana Indianapolis, Indiana Marvin E. Berger Chairman, Pennsylvania State Job Training Natalie S. Allen Coordinating Council and President President, Rayco Auto Services, Inc. Philadelphia High School Academies, Inc. Media, Pennsylvania Philadelphia, Pennsylvania Sally Boofer James T. Allison Manager of Field Operations, Indiana Program Assistant Superintendent of Public Instruction, and Green Thumb, Inc. State Director, Career-Vocational Education Seymore, Indiana California State Department of Education Sacramento, California Glen Bounds Provost Pamela O. Anderson Dallas Community College District President, Career Resources Dallas, Texas North Central Indiana Private Industry Council, Inc. Peru, Indiana John C. Brooks Deborah Arrindell Commissioner, State of North Carolina Public Policy Director Department of Labor Wider Opportunities for Women, Inc. Raleigh, North Carolina Washington, DC 47 Judith Brown Donald J. Davis Member, Board of Directors Co-Executive Director American Association of Retired Persons UAW-GM Human Resource Center Washington, DC Auburn Hills, Michigan R. M. Brown, III Richard DeLone Chairman Richmond Private Industry Council, Western Job President Training Partnership Association and DeLone, Kahn, & Associates Human Resources Director Philadelphia, Pennsylvania Kaiser Permanente-Richmond Richmond, California William E. Earl Manager, Policy Benefits Dennis L. Bybee American United Life Insurance Co. and Chief, Management Information Systems Division Member, Indianapolis Private Industry Council Department of Defense Dependents Schools Indianapolis, Indiana Arlington, Virginia Eunice Elton Dale Campbell Assistant Commissioner for Community Colleges and President Technical Institutes Private Industry Council of San Francisco, Inc. Texas Higher Education Coordinating Board San Francisco, California Austin, Texas Manfred Emmrich Ralph G. Cantrell Director Commissioner Employment Security Commission of North Carolina Virginia Employment Commission Raleigh, North Carolina Richmond, Virginia Dave Farley Gloria Carpenter Chairman Chair, Conference Committee California Employer Council and Pennsylvania Service Delivery Area Association Employer Relations Administrator Pittsburgh, Pennsylvania Simpson Paper Company San Francisco, California Virginia Felstehausen American Vocational Association Meredith L. Carter Lubbock, Texas Vice President/Dean Indiana Vocational Technical College, Central Happy Fernandez Indiana and President Member, Indianapolis Private Industry Council Delaware Valley Child Care Council and Indianapolis, Indiana Associate Professor Perry Chapin Temple University President Philadelphia, Pennsylvania South Central Iowa Federation of Labor, AFL-CIO Bob Firenze Des Moines, Iowa Director William E. Christopher Indiana Labor-Management Association Commissioner Indianapolis, Indiana Indiana Commission on Vocational and Technical Education Pamila J. Fisher Indianapolis, Indiana Assistant Chancellor of Educational Services Yosemite Community College District The Honorable Ronald R. Cowell Pennsylvania State House of Representatives Modesto, California Harrisburg, Pennsylvania Robert Foster Larry Crecy Director of Public Relations National Caucus and Center on Black Aged, Inc. Indiana American Legion Washington, DC Indianapolis, Indiana 48 Robert G. Garraty Walter Hayden Executive Director Legislative Director, Indiana Council American Pennsylvania MILRITE Council and Federation of State, County and Municipal Chairman, Public Policy Committee Employees Consortium for State Labor-Management Initiatives Indianapolis, Indiana Harrisburg, Pennsylvania Maryann Haytmanek David J. Gillette Counselor/Coordinator, New Directions Program Executive Director Lehigh County Vocational-Technical School New York State Job Training Partnership Council Schnecksville, Pennsylvania Albany, New York Howard Himmelbaum Hugh L. Gordon Deputy Director SER-Jobs for Progress Derson Group, Ltd. and Dallas, Texas Volunteer, National Alliance of Business Marietta, Georgia David G. Hoffman Chairman, Governor's Mini-Cabinet on Employment John J. Grier and Training Chairman State of Alaska Pennsylvania Employer Advisory Council Juneau, Alaska Bristol, Pennsylvania Elizabeth P. Howe William D. Grossenbacher Director Administrator, Texas Employment Commission and Michigan Department of Labor Interstate Conference of Employment Security Lansing, Michigan Agencies, Inc. Austin, Texas Arnold M. Howitt Associate Director, John F. Kennedy School of Pamela Grosvenor Government Chairman Harvard University Albuquerque Advisory Committee of Employers Cambridge, Massachusetts Albuquerque, New Mexico James Hubbard Cecil Groves The American Legion Chancellor Washington, DC Texas State Technical Institute Sally A. Jackson Waco, Texas Director The Honorable David M. Halbrook Illinois Department of Employment Security Mississippi State House of Representatives Chicago, Illinois Jackson, Mississippi Herbert Johnson Resse Hammond Executive Director Director, Education and Training Illinois Veterans Organizations and Jobs for Vets International Union of Operating Engineers Chicago, Illinois Washington, DC Sam H. Jones William Hanigan President Vice President, Administration and Personnel Indianapolis Urban League and Zagar, Inc. Member, Indianapolis Private Industry Council Cleveland, Ohio Indianapolis, Indiana Frederick W. Hansen Martha Kuhl Auto Tech Program Director Chair, Economic and General Welfare Commission Youth for Service California Nurses Association San Francisco, California Oakland, California 49 David Kuter Linda Marks Chairman, Veterans Affairs and Rehabilitation Consultant Committee Work Options Wisconsin American Legion San Francisco, California Fund du Lac, Wisconsin Carroll Marsalis David Lacey Project Manager, Skills Development Department President and Chief Executive Officer Tennessee Valley Authority Philadelphia Private Industry Council Knoxville, Tennessee Philadelphia, Pennsylvania C. Dianne Martin Laurie Laskey Project Coordinator, Caregiver Assistance Service Assistant Professor, Electrical Engineering and Computer Science Department Coalition of Advocates for the Rights of the Infirm Elderly George Washington University and Philadelphia, Pennsylvania Board Advisor International Association for Computing in Education Ernest Leach Washington, DC President Fresno City College James Martin Fresno, California Executive Director Philadelphia Area Labor-Management Committee David Little Philadelphia, Pennsylvania Chair Iowa Job Service Employers Steering Committee Ted Martinez Centerville, Iowa Chair, Committee on Human Resource Development National Council for Occupational Education Bonnie Longnion Dean of Continuing Education Lancaster, Texas North Harris County, East Campus Linda de Mello Kingwood, Texas Executive Director Michael J. Lotito Alumnae Resources Chairman, Legislative Affairs Committee San Francisco, California American Society for Personnel Administration Harriet Miller San Francisco, California Executive Director Oscar Lowery Fort Wayne Women's Bureau, Inc. Chairman Fort Wayne, Indiana Indiana Council on Vocational Education Indianapolis, Indiana Nancy L. Mirth District Service Manager, Ohio Operations Michael McAfee GTE North Incorporated and Executive Director Chairman Vietnam Veteran Resource and Service Center Williams County Job Service Employer Committee Dallas, Texas Medina, Ohio Richard K. McMillan Madeline Mixer Co-Executive Director UAW-GM Human Resource Center Regional Administrator, Women's Bureau Auburn Hills, Michigan U.S. Department of Labor San Francisco, California Dorothy McNutt President Barbara J. Mock Texas Association of Post-Secondary Member, Pennsylvania Employer Advisory Council Occupational Education Administrators and Attorney-At-Law Texas City, Texas Drexel Hill, Pennsylvania 50 Franklin G. Mont Henry H. Perritt, Jr. Deputy Secretary of Labor and Industry, Representing Professor of Law The Honorable Robert Casey, Governor Villanova University State of Pennsylvania Villanova, Pennsylvania Harrisburg, Pennsylvania Sandra Pierce Peter Muller Director of Industrial Relations and Administration East Bay District Manager RAE Corporation and Associated General Contractors of California Chairman, Private Industry Council, SDA 2, Illinois Oakland, California McHenry, Illinois Pattie Powell Kathye Jacobs Murphy Trustee Executive Director Dallas County Community College District Career Planning Center, Inc. Dallas, Texas Los Angeles, California Carol Prell James E. Nickels Industry Education Council of California Director, Labor Education Program San Francisco, California University of Arkansas at Little Rock Little Rock, Arkansas Mary S. Pyle Education Consultant Charles F. Nielson National Council on Vocational Education Vice President, Corporate Staff Washington, DC Texas Instruments Incorporated Dallas, Texas Lane A. Ralph Assistant State Director, Representing Selma Nunez-Borja The Honorable Richard Lugar San Lorenzo, California United States Senate State of Indiana Barney Olmsted Indianapolis, Indiana Co-Director New Ways to Work Markley Roberts San Francisco, California Economist and Director, Office of Employment and Training Gerald A. Olson Economic Research Department, AFL-CIO Chairman, Private Industry Council Washington, DC SDA 3, Northern Illinois and Assistant Vice President of Human Resources Carol Ann Rudolph Rockford Memorial Hospital President Rockford, Illinois Child Care Management Resources Bethesda, Maryland George Ondick Ellen O'Brien Saunders State Committee on Veterans Administrator Employment and Training and Ohio Bureau of Employment Services Executive Director Columbus, Ohio Ohio AMVETS Columbus, Ohio Victoria Saunders Director, Human Resources Tom Owens United Medical Manufacturing Company and Associate Director, Education and Work Programs Member Northwest Regional Educational Laboratory Indianapolis Private Industry Council Portland, Oregon Indianapolis, Indiana Douglas J. Peek Jack Scott Director, Division of Education and Training Director, Projects with Industry Kentucky Labor Cabinet Goodwill Industries of America, Inc. Frankfort, Kentucky Bethesda, Maryland 51 Robert R. Scruggs Robert Turner Chairman President Employers' National Job Service Committee, Associated Builders and Contractors, Inc. Region IV Washington, DC Greensboro, North Carolina Theresa Turner Jesusita Semides Human Relations Coordinator President Indiana State Teachers Association Tradeswomen, Inc. Indianapolis, Indiana San Francisco, California Joel Vela Vice President of Instruction May Shayne North Lake Community College Researcher, Tennessee JTPA Program Irving, Texas Vanderbilt Institute for Public Studies Representing Max Castillo Nashville, Tennessee President San Antonio College Regina Siciliano-Kutchins San Antonio, Texas State Director, California Program Green Thumb, Inc. Hector Velazquez Petaluma, California President National Puerto Rican Forum Richard Simmons, Jr. New York, New York Director Michigan Employment Security Commission Sam Webster Interlink Board of Directors Detroit, Michigan Texas Instruments James P. Smith Dallas, Texas Program Director John Calhoun Wells 70001 Training & Employment Institute President Indianapolis, Indiana John Gray Institute Beaumont, Texas Robert Sorrell President William Wetsell Philadelphia Urban League Texas Instruments Philadelphia, Pennsylvania Dallas, Texas Eugene Spitzer A. William Wiggenhorn Area Supervisor, Texas Program Corporate Vice President and Director Green Thumb, Inc. of Education Waco, Texas Motorola, Inc. Schaumburg, Illinois Bob Stinson Labor Representative Joyce L. Winterton Executive Director Madison-Grant Private Industry Council National Council on Vocational Education Anderson, Indiana Washington, DC Letty D. Thall Alan J. Zuckerman Executive Director Director of Public Affairs Delaware Valley Child Care Council OICs of America, Inc. Philadelphia, Pennsylvania Washington, DC 52 INDIVIDUALS AND ORGANIZATIONS SUBMITTING WRITTEN STATEMENTS Jackie Abdullah James Christie Division of Unemployment Insurance Governor's Office Covington, Kentucky State of West Virginia Charleston, West Virginia William Anderson California Community College Wisconsin Employer Committee Madison, Wisconsin Sacramento, California Louis Coppola Floyd Astin Cyclops Corporation Department of Employment Security Mansfield, Ohio Salt Lake City, Utah John Coughlin Robert E. Astrup Department of Industry, Labor, and Human Relations Minnesota Education Association State of Wisconsin St. Paul, Minnesota Madison, Wisconsin The Honorable Norman H. Bangerter John Craft Governor School District of Philadelphia State of Utah Philadelphia, Pennsylvania Salt Lake City, Utah Richard DeCosmo John Bartlett Delaware County Community College Department of Commerce Media, Pennsylvania State of Texas Austin, Texas Gus De La Torre Personnel Management Association Aztlan Bill Blackwell Oakland, California Arrow Aluminum Industries, Inc. Charles Deppert Martin, Tennessee Indiana State AFL-CIO James Byford Indianapolis, Indiana Kentucky Department of Education The Honorable Edward D. DiPrete Frankfort, Kentucky Governor State of Rhode Island Bret Cahill Providence, Rhode Island Thonotosassa, Florida Dorothy Dowker Neil Carey Michigan Employer Committee National Career Development Association Freeland, Michigan Alexandria, Virginia Dennis Erickson Orville Carver Schroeder Brothers Corporation Pennsylvania Green Thumb, Inc. Cumberland, Maryland Mechanicsburg, Pennsylvania Paul Eustace The Honorable Richard Celeste Department of Labor Governor Commonwealth of Massachusetts State of Ohio Boston, Massachusetts Columbus, Ohio H. Dean Evans Forrest Chisman Department of Education Southport Institute for Policy Analysis State of Indiana Washington, DC Indianapolis, Indiana 53 Barbara Fallin Joseph Hogan Metric Systems Corporation Community Civil Rights Worker and Fort Walton Beach, Florida U.S. Department of Labor (Retired) Moraga, California Fred Fox Pennsylvania Chamber of Business and Industry Marion Holmes Harrisburg, Pennsylvania School District of Philadelphia Philadelphia, Pennsylvania David Gamse American Association of Retired Persons Kathleen Hoyt Washington, DC Vermont Department of Employment and Training Montpelier, Vermont Paul Garcia Department of Labor Elizabeth Hurwitz-Schwab State of New Mexico The Schwab Company Albuquerque, New Mexico Cumberland, Maryland The Honorable Terry Goddard Bill Jamieson Mayor Arizona Department of Economic Security City of Phoenix Phoenix, Arizona Phoenix, Arizona Alan D. Johnson Donald Grabowski Indiana Department of Employment and Training National Association of State and Territorial Services Apprenticeship Directors Muncie, Indiana Albany, New York Stanley P. Jones Pamela Grosvenor Employment Security Department Albuquerque Advisory Committee of Employers State of Nevada Albuquerque, New Mexico Carson City, Nevada Herbert Grover John L. Jones Department of Public Instruction Connersville, Indiana State of Wisconsin Madison, Wisconsin Aurelia Jones-Smith Governor's Office Robert A. Guadagnino State of Mississippi Department of Labor Jackson, Mississippi State of New Jersey Trenton, New Jersey Karen Karkula International Association of Personnel in Employment Clinton Hamann Security, Minnesota Chapter San Diego Community College District Minneapolis, Minnesota San Diego, California K. R. Kiddoo William Hanigan Employment Development Department Ohio Job Service Employer Committee State of California Euclid, Ohio Sacramento, California Cheryl Herbaugh Joy M. Korpela First National Bank Kreative Plastics, Inc. Cumberland, Maryland Frostburg, Maryland Peter Hernandez Carmela Lacayo American Iron and Steel Institute Asociacion Nacional Pro Personas Mayores Washington, DC Los Angeles, California John Hodges Gerald Lamkin Ohio AFL-CIO Indiana Vocational Technical College Columbus, Ohio Indianapolis, Indiana 54 Theodore Landsmark Millie Minor Mayor's Office of Jobs and Community Services City of Niceville Boston, Massachusetts Niceville, Florida The Honorable Greg Laughlin Milan Moravec U.S. House of Representatives National Semiconductor Corporation State of Texas Santa Clara, California Victoria, Texas Charles J. Morris Mary Lawing School of Law Virginia Employment Commission Southern Methodist University Chesapeake, Virginia Dallas, Texas William Lepley Anne Mortenson Department of Education Eastern Virginia Medical School State of Iowa Norfolk, Virginia Des Moines, Iowa Austin J. Murphy Betty J. Lockwood Committee on Education and Labor Minnesota Employer Committee Washington, DC Marshall, Minnesota Colleen B. Nelson S. R. McCann Barton's Coffee House and Restaurant International Brotherhood of Pinto, Maryland Electrical Workers Walnut Creek, California The Honorable William A. O'Neill Governor Mary McDonald State of Connecticut McDonald Plumbing Company, Inc. Hartford, Connecticut Fort Walton Beach, Florida The Honorable Kay A. Orr Dick McGowan Governor Alabama Job Service Employer Committee State of Nebraska Montgomery, Alabama Lincoln, Nebraska John McNulty The Honorable Nancy Pelosi Modine Manufacturing Company U.S. House of Representatives Racine, Wisconsin State of California Walter J. Makiej, Sr. San Francisco, California Lowell, Massachusetts The Honorable Rudy Perpich Kenneth Melley Governor National Education Association State of Minnesota Washington, DC St. Paul, Minnesota Hugo Menendez Maryann Polaski Florida Department of Labor and International Association of Personnel in Employment Security Employment Security Tallahassee, Florida New Brunswick, New Jersey The Honorable Bob Miller Mario Ramil Governor Department of Labor and Industrial Relations State of Nevada State of Hawaii Carson City, Nevada Honolulu, Hawaii Kathy Millsap Douglas Reid Mayor's Youth Employment Program Xerox Corporation Orlando, Florida Stamford, Connecticut 55 Suzan Repasky J. E. Starnes Victor Temporary Services Shulton, Inc. Winter Park, Florida Memphis, Tennessee Marilyn Rodgers Robert D. Stokes California Nurses Association Villanova University San Francisco, California Villanova, Pennsylvania Werner Rodgers State Superintendent of Schools Frank S. Swain Atlanta, Georgia U.S. Small Business Administration Washington, DC Patricia Sandmeyer Kelly Tractor Company and John D. Taylor Florida Job Service Employer Committee Illinois Department of Commerce and Miami, Florida Community Affairs Springfield, Illinois R. F. Schoch Kelly Springfield Tire Company Patrick Taylor Cumberland, Maryland Taylor Energy Company Toni Scott New Orleans, Louisiana Cub Cadet Corporation and Jeanne Van Vlandren Job Service Employer Committee Brownsville, Tennessee Department of Labor and Industry State of Vermont Jack Sheinkman Montpelier, Vermont Amalgamated Clothing and Textile Workers Union, AFL-CIO Basil J. Whiting New York, New York Long Island Railroad Jamaica, New York Ray Siehndel Department of Human Resources Wisconsin Employer Committee State of Kansas Madison, Wisconsin Topeka, Kansas James Woodman Albert Simmons Texas Education Agency Urban League of Madison County, Inc. Austin, Texas Anderson, Indiana John Yoder The Honorable George Sinner Walter N. Yoder and Sons, Inc. Governor State of North Dakota Cumberland, Maryland Bismarck, North Dakota Virginia Yueill Rodo Sofranac Department of Labor Arizona Job Training Coordinating Council State of Nebraska Phoenix, Arizona Lincoln, Nebraska Jeffrey Sonnenfeld Amicie Zimmerman Harvard University Home Health Care Management Boston, Massachusetts Wyomissing, Pennsylvania 56 APPENDIX 5: OUTREACH PROGRAM The outreach program was an important component of the Commission's fact-finding process. The program involved meetings between senior staff of the Commission and representatives of major labor, business, education, employment and training, advocacy, research, and community-based organizations to discuss the Commission's charge and to become aware of the multitude of perspectives on the issues before us. The meetings were scheduled as an early event on the Commission's calendar to assure that our recommendations benefited from the extensive knowledge and experience of these organizations. The organizations with whom we met generously shared data, research results, insights, and ideas. The Commission gratefully acknowledges the contributions of these organizations and their representatives. Advocacy, Research, and Information Business Karen J. Baehler Douglas E. Adair Director Executive Vice President Social and Economic Programs Council on Hotel, Restaurant, and Institutional Education Roosevelt Center for American Policy Studies Washington, DC Washington, DC Edward J. Burkeen William A. Bealtz AISI Fellow President American Iron and Steel Institute Bureau of National Affairs Washington, DC Washington, DC Willis Goldbeck Forrest Chisman President Director Washington Business Group on Health Project on Adult Literacy Washington, DC Southport Institute for Policy Analysis Fred Krebs Southport, Connecticut Executive Director Horace B. Deets U.S. Chamber of Commerce Executive Director Washington, DC American Association of Retired Persons Susan F. Mills Washington, DC Director Research and Information Services Catherine Morrison National Restaurant Association Director Washington, DC Public Policy Studies The Conference Board Lewis Sears, Jr. Washington, DC TRW, Inc. Vice President of the National Association of Dallas L. Salisbury Manufacturers President Committee on Employment, Training and Dislocation Employee Benefit Research Institute Representing the National Association of Washington, DC Manufacturers Washington, DC 57 Community-based Organizations Education Carl A. Gee Gordon Ambach Executive Director Executive Director OIC of Greater Milwaukee Council of Chief State School Officers Milwaukee, Wisconsin Washington, DC Duke Hamilton Madeleine B. Hemmings President Executive Director Twin Cities OIC, Inc. National Association of State Directors of Vocational Minneapolis, Minnesota Education The Reverend William Harris Washington, DC Executive Director Frank Mensel OIC of Atlanta Director of Federal Relations Atlanta, Georgia American Association of Community and Junior Elton Jolly Colleges President and Chief Executive Officer Washington, DC Opportunities Industrialization Centers of America Thomas Shannon Philadelphia, Pennsylvania Executive Director Frank Lomax, III National School Boards Association Executive Vice President Alexandria, Virginia National Urban League New York, New York Scott Thompson Executive Director Cynthia Marano National Association of Secondary School Principals Executive Director Reston, Virginia Wider Opportunities for Women Washington, DC Richard A. Ungerer Executive Director Fannie Munlin National Institute for Work and Learning Executive Director Washington, DC National Council of Negro Women New York, New York Gary D. Watts Assistant Executive Director for Professional and Hector Velazquez Organizational Development President and Chief Executive Officer National Education Association National Puerto Rican Forum Washington, DC New York, New York Lyndon A. Wade John Wherry Executive Director President National School Public Relations Association Atlanta Urban League, Inc. Atlanta, Georgia Arlington, Virginia Ernie Wilhoit Gene Wilhoit President, Board of Directors Executive Director Teen Life Center National Association of State Boards of Education Stamford, Connecticut Alexandria, Virginia Alan J. Zuckerman Joyce L. Winterton Director of Public Affairs Executive Director OICs of America, Inc. National Council on Vocational Education Washington, DC Washington, DC 58 Employment and Training Raymond C. Scheppach Executive Director Martin Jensen National Governors Association Executive Director Washington, DC National Job Training Partnership, Inc. Washington, DC Frank Swain Chief Counsel for Advocacy Robert Knight U.S. Small Business Administration President National Association of Private Industry Councils Washington, DC Washington, DC John Thomas Kenneth M. Smith Executive Director President National Association of Counties Jobs for America's Graduates Washington, DC Washington, DC Kathleen Utgoff Government Former Executive Director Pension Benefit Guarantee Corporation Alan Beals Executive Director Washington, DC National League of Cities Winifred I. Warnat Washington, DC Director of Vocational-Technical Education Helen Burstyn Office of Vocational and Adult Education Deputy Secretary U.S. Department of Education Premier's Council Washington, DC Ontario, Canada Labor Paul V. Hippolitus Director Michael G. McMillan Plans, Projects, and Services Executive Director President's Committee on Employment of People with Human Resources Development Institute Disabilities AFL-CIO Washington, DC Washington, DC G. Pisarzowski Rudy Oswald Senior Policy Advisor Director of the Economic Research Department Premier's Council AFL-CIO Ontario, Canada Washington, DC Richard Q. Praeger Executive Vice President Dorothy Shields Interstate Conference of Employment Security Director of the Education Department Agencies AFL-CIO Washington, DC Washington, DC 59 APPENDIX 6: COMMISSION STAFF David L. Crawford Executive Director Laurie J. Bassi Deputy Director James F. Taylor Associate Director John R. Beverly, III John P. Giraudo Suzanne A. Brown Michael W. Horrigan H. Peter Cappelli Nevzer G. Stacey John D. Carter Tommy M. Tomlinson Amy B. Chasanov Nancy Zurich Nancy Duhon The Commission gratefully acknowledges the outstanding contributions of its staff, who labored alongside us during the course of the past year. Under the able leadership of David Crawford and Laurie Bassi, this diverse and accomplished staff made our work both effective and enjoyable. We thank the U.S. Department of Education for contributing the efforts of Tommy Tomlinson and Nevzer Stacey. We also thank the IBM Corporation for lending us the expertise of Jack Carter. Finally, we acknowledge the cooperation and support we received from the U.S. Department of Labor. 60 ORDERING INFORMATION To order additional copies of this report, Investing in People: A Strategy to Address America's Workforce Crisis (stock number 029-000-00428-5), you can call the Superintendent of Documents Order Desk at (202) 783-3238 or FAX your order to (202) 275-0019. Please identify the book by title and stock number. Prepayment is required; Visa and MasterCard are accepted. You can also write to the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402-9328, to request price information. 61 Commission on Workforce Quality and Labor Market Efficiency U.S. Department of Labor Washington, DC 20210