GROWTH AND CAUSES

Rotorua Morning Post, Volume 1, Issue 10, 3 September 1931, Page 6

GROWTH AND CAUSES

UNEMPLOMENT IN N.Z. COMPREHENSIVE REPORT. REGISTRATION EFFECT. Direct statistical evidence ai to the extent of unemployment in New Zealand is availahle from the census (since 1896) and from the records of ihe Labour Department (since 1892), states the report of the Unemployment *Board to Parliament. In addition, statistics of unemployment 'among trade unionists, and of monthly employment in factories and work?, have been collected in recent years by the Census and Statistics Office, the former since 1925 and the latter since 1926. The great disadvantage of the census inquiry as an indicator of -the 'rend of unemployment is that it pruvides data at quinquennial intervals only, and consequently does not Khrow light ' on the rapid flueTations in unemployment which ire characteristic of periods of oconomic stress. Nevertheless, the census provides data as to the actual numbers unemployed on the census iates, (ind while information has beeo •ivailable from other sources as to the novements in unemployment from 'ime to time it has hitherto been 'extremely difllcult to gauge the actual total of unemployed wage-earners ia the country at any particular time from any other source. The following iable showing the numbers and the proportion to total wage-earners uf the unemployed at successive ce:i■iuses is of interest in showing the state of' employment' at intervals over a long period of years: —

It will be observed from theae lgures that the unemployment position it the 1896 census date, when there were 100 males unemployed for every 1000 male wage-earners,- was conbderably more serious than at any )ther of the census dates on which his data was collected. The proport.ion of males unemployed on the 1926 census date (34 per 1000 male wageearners) was considerably less thac 'hat recorded at the 1921 census, but ligher than the flgure shown by the 1911 and 1916 censuses. A more comprehensive survey of unemployment than had previously >een attempted was made at the 1926 census, data being obtained as to the mmber of working days lost during 'he 12 months immediately pre:eding the census through sickicss, accident, or injury, and through laclc of employment not lue to strikes or lockouts. The averige number of working days lost through lack of employment among .nales was shown to he 18.8 days ■luring the year prior to the census late (April 20, 1926). Registrations at Labour Rureaux. The annual reports of the Labour department (parliamentary paper H 11) conlain valuable information as io he registrations and placements 'hrough the employment bureaux .1 that department.. Details as to the mmber of uhplaced applicants on •egisters of the bureaux at the end of >,ach week have been obtained for each week since the -beginning of Vpril, 1921. The annual average of •hese weekly totals shown below gives an indication of the growth jf he unemployment problem since thal ,'p.ar.

• While the number of unfilled applieations at the bureaux is an- indication >f the state of the labour market it is unsal'e to draw conclusions as to the extent of the movement in unemployment from these statistics unless certain reservations are borne in mind. 'n the flrst place, the flgures will tena to minimise the extent of unemploy ment in times of economic prosperity. l'or in good times the unemployed workrer will usually manage to flnd imiployment Without the assistance of the employment bureaux of the Labour Department. On the other hand, in periods of economic depression, when ihe chances of obtaining employment are considerably lessened, workers will avail themselves of Ihe serviees of the employment bureaux to a far greater extent. Consequently the movement in the total of unfilled applieations tends to exaggerate iluctuations in unemployment. Apart from this consideration the department has during recent years considerably widened Ihe scope of its activities of its employment bureaux. RegistraLions prior to February, 1928, coull only be made at the bureaux; bu+ since that month facilities have been provided whereby registrations are accepted at any post office. A further factor which, in 1929 and 1930, un douhtedly caused a larger proportion of unemployed to register with the Labour Department is the recently adopted policy of engaging all men for public worlcs and local hodies' relief works through uie bureaux, where such a course is practicable. - It will he observed that the weekly average numbers of unfilled applicaiions on the Pmploymeut registers has varied since 1921 hetween 426 (in 1925) and 5055 (in 1930). Evidence that the unplaccd registrations in the years prior to 1930 formed only a portion of the total unemployed is . revealed by the 1926 census inquiry. On the date of the census (April 20, 1926) there were 10,694 males unemployed, while the unplaced registrations on April 19 of that year totalled only 571. A Rapld' Sncrease. A progressive upward tendency is reveaied by the weekly figures, comparisons hetween approximately simiiar dates in one year and the immediately succeeding year almost invariably showing an increase. The seasonal ebb and flow of unemployment is evi'dent, a notable exception to the seasonal fluotuation being recorded in Uctober, 1929, when, following on the announcement by the Government that work would be found for able-hodied men registered at the bureaux, the unfilled frgistrations inoreased from 2466 on September 30 of that year^to 4924 on Oetober 7, and further "to (5264 On Oetober 14. Successive decreases 'in succeeding weeks brought the total down to 1242 on December 30 of that year. The year 1930 saw a rapid rise in the registrations at the labour bureaux. The average weekly totals of unfilled applieations for each of the months of that year showed

.progressive inereases, they actual i figures being: January 2345, February 2442, March 2834, April 3382, ' May *4519, June 5306, July 5465, August 5455, September 5765, Oetober 6038, November 6671, December 9615. The rapid increase in the number of registered unemployed towards the end of the year made it imperative that the board immediately upon commencing its sittings on November 25, 1930, should devise schemes for the relief of the position before taking • time' to consider its permanent policy. Gonsequent on the pronouncement ^ of the board's schemes for the provision of immediate employment a sudden increase in registrations took place, and despite the plaoement of a large number of men in various works sunsidised by the board the number of unplaced applicants on the registers has continued to increase. :

Causes of Recent increase. A phenomenai increase in the number of registered unemployed has taken place since tlie board commenced operations. Despite the progressive inereases in the number of placements through the bureaux the registrations have increased trom 7402 on'November 24, 1930, to 38,028 on March 30, 1931. This increase in the number of registered unemployed is by no means entirely _ due * to 'a I change in economic conditions gener- | ally since last November. Indeed, j signs 'of at least partial recovery in the economic sphere^ are not lacking. In f making comparisons of recent unemployed registrations with periods prior to the inception of the board's activities the following facts should he borne in mind:- — 1. The board has made every effort to induce unemployed to register, for it realises the absolute neeessity of possessing complete and authoritative data as to the extent of unemployment before it can cope effectively with the situation. Wicie publicity has been given to the board's statement of its policy in this respect. 2. The coming iuto operation of th9 board's schemes for the relief of unemployment has provided the unemployed worker with a deflnite incentive to register, since the board has made it clear that all workers engaged under its schemes will he recruiled from the ranks of the registered unemployed only. 3. Owing to the prevailing economic conditions, local hodies have been unable to provide employment to the samf; extent as previously, and so a considerable extra burden has been placed on the shoulders of the board. 4. Th£ very existence of the board has c-aused a relaxing of/the efforts of cmployers, hoth private and local bodies, to provide employment. Some employers who reiained workers from motives of sympathy now have no oompunction in making disrmssals, since they know that some provision is made for the workless. 5. The uncertainty of the 'immediate economic outlook, ^particularly in regard to wage-reductions, has meaut that many employers are postponing all but absolutely urgent and immediately essential work, in the hope that they will be able to obtain cheaper labour in the near future. The number of registered unemployed thus is probably considerably larger tha,n is strictly justifled by the economic state of the country at the present time. 6. Many cases have come under the notice of the board where farmers and t'armers' sons, superannuated workers, owners of small businesses, and men With considerable private means have been registering as unemployed in order to qualify for -relief work, consequently. the board has been forced to take action to ensure tliat only genuine unemployed wage-earners shall he registered and so qualify for employment under its schemes in the future. 7. Since the coming into operation of the board's No. 5 scheme on February 9 the total of registered unemployed includes many thousands who are receiving partial employment under this scheme.

Proportion Per 1000 • male Male un- wageCensus. employed, earners. April 12, 1896 14,759 100 March 31, 1901 8,467 48 April 12, 1906 8,189 39 April 2, 1911' 7,152 30 October 15, 1916 5,920 26 April 17, 1921 11,061 39 April 20, 1926 10,694 34

'Weekly Average 1921 (nine months) .... 1097 1922 1237 1923 599 1924 437 1925 426 1926 1196 1927 1982 1928 2504 1929 3023 1930 5055