PAGENO="0001" 7~I%O/%y3 YOUTH UNEMPLOYMENT c~E~ci1s;ToRy HEARING BEFORE TIIR JOINT ECONOMIC COMMITTEE ~ CON~+RESS OF ~T~H& UNIT$I~ S'PATES ~ ~ t NNTY~F&FR~t~~ G~fl*!~S$~ i:~rct U~ u ~ ~i2t6 SJ3iSSION 1',~~ itd~ M~ ft'A& of th~3~nn Eeoziomt#eouimttS; IGERS IfrVI SGHOO~, ~ ~oatO2 oOcuMmT U.S. GOVESNMENT t'RU~tTING O?$CE WASBU{GTON i 197'? H 82-043 r by the Superintendent of Documftnts, U.S. Goflrnment Printing Office Washington, D.C. 20402 Price $1.50 c1c~~, ~ 0~~.1~q~r71 ~ 4 PAGENO="0002" - ~OINT ECONOMIC COMMITTEE ~ ~reated ~rn~suant~o sec 5(a) of Pu$lic Law 304 79th Cong HUBERT B. HUMPHREY, Minnesota, Chairman RICB4~RP B~OLL 7~fissqiir1, i~icó airthan SEN~&TE hOUSE OF REPRESENTATIVES JOHN SPARKMAN, Alabama E~NRY S. RE1YSS, Wisconsin WILLIAM PROXMIRE, Wisconsin WILLIAM S. MOORHEAD, Pennsylvania ABRAHAM RIBICOFF, Connecticut t~iE H. HAMILTON, Indiana LI~QYD M. ]3ENTSEN, Ja., Texas GILLIS W. LONG, Louisiana EDWARD M. KENNEDY, Massacbusetf~ -~OTIS G. PIKE, ~éw York JACOB K. JAVITS, New Yoi~k CLARENCE J. BROWN, Ohio CHARLES II. PERCY, Illinois -G*RRY BROWN, Michigan ROBERT TAFT, JR., Ohio MARGARET M. HECKLER, Massachusetts PAUL J. FAN~IN, A~iZóIia~ - JOHN H. BOUSSELOT, ~al1fo~rnia ~OEN K. STARK~ Ewecutive Director RICHARD F. KAUFMAN, Genera' Counsei ECONOMISTS WILLIAM B. BUECHNER RoBERT D. HAMRIN PHILIP MCMARTIN ~THOMAS cATQR SARAH JAcKSoN R4LPH L. SCHLOsST~IN WILLIAM A, Cox Joax R. KAIU~U~ C0URTInNAY M. SLAPRG LUCY A. FALCONJS -~ L. DOUGLAS LEE GEORGE B. TYLER ~II~OnITY VIIARLES H. BRADFORD GEORGE D. KRTJMBHAAU, Jr. ~L C~7IIERIi~E 1thrJLNR ~TA~K B. POLI~INSKI -~ PAGENO="0003" CONTENTS WITNESSES AND STATEMENTS ThURSDAY, SEPTEMBISR, 9, 1976 Humphrey, Hon. Hubert H., chairman of the ioint Economic Committee: Page Opening statement 1 Young, Hon. Andrew, a U.S. Representative in Congress from the Fifth Congressiona' District of the State of Georgia 5 Plaherty, Hon Pete, mayor, city of Pittsburgh Pa 13 Samuel, Howard Ii, secretary, National Committee on Full Employment, and vice president, Amalgamated Clothing and Textile Works Union AFL-CIO 18 Reubens, Beatrice 0., senior research associate, Columbia UnIversity....~ 35 Barton, Paul B senior consultant National Manpower Institute 69 Anderson Bernard B, pMessor, the Wharton School, University of Penn sylvania 93 SUBMISSION FOR T~E RECORD THURsDAY, SEPTEMBER, 9, 1976 Anderson, Bernard E.: Prepared statement Response to additional written questions posed by Senator Javlts~.._.. 116 Barton, Paul B.: Paper entitled "Youth Transition to Work: The Problem and Fed- eral Policy Setting" 73 Response to additional written questions posed by Senator Javits__... 116 Flaherty, Hon. Pete: Prepared statement 16 Humphrey, Hon. Hubert H.: Opening statement of Representative Brown of Ohio - 4 Reubens, Beatrice 0.: Prepared statement 42 Policy paper entitled "Foreign and American Experience With the Youth Transition" 46 Response to additional written questions posed by Senator Javits.._ 112 Samuel, Howard D.: Prepared statement 22 Stern, Barry E., education policy analyst, U.S. Department of Health, Education, and Welfare: Paper entitled "Job Placement Assistance for High School Students -- 118 Young Hon. Andrew: Response to Chairman Humphrey's request for more details regarding proposed legislation for a national voluntary yopth service (II') PAGENO="0004" PAGENO="0005" ¶QUT1~ LU1~N~ TEUR$]r, $~P~EMB~R 9, ~91~6 OONOI~SS ~ 1~RB ~F~2T~D ST~s~~ BO~O31~) ~EE, W~3Øon, 11.0. Th~ co~mttee~i4~t~ ~pursuant to nØtic~, at 9 :&5~m.~ i~T room, 1~8I~ Dirksen Sei~,te Once ~uiId~n~, Hon. 1~uber~ ~. }~wiip1~rey (chai~~ man of the cemm~tteê) presidlln;g. S Present: Sema~s. Hiimph~e~, ~a~vits~ a~4~P~roy and R~p~esei~ta~ tives Reuss and Moorhead. S A~o present: W~i1l4am R. Th~e4~ner, 0. ~honias ,CatGr, Lucy' A. Faicone, and Louis C. Krautho~ ~rofesM~4 s4~1i! me~b~x~; an~1 Charles ~[. Bradford, George ]3~' u*i~haar, ~rL~ M; ` itherine Miller, and Mark B. Policinski, `i1inorit~ pr~fessionai St~a~ ~embers. OPENING STA~E~ENT OP CHAI~MAN H~MPHREr Ohairman ~VM~IB~. Congr~man Y'ou~g, yo~ will be our first witness, ~oUo~ed b~r the mayoi~ o~ Pittsbnrgh~Er~' ~i~he~ty, foliowe~i by Mr. Jackson and Mr. SamueL' S I have a brief `opening stat~men± that ~I want to' make. And the reason I do s~ isbécause I consider. the subject matter that we are going to discus to4ay of priority on the natto~ai á~enda. The purpose of ti1i~ `hearing is `to. exan~ine the causes and the effectS of high unempi~yn~ent, not only `high wiei*p~oyrnent hut I say ~ cally high unemployment, among our Natioi~4s yo~iths, and the pr~b~ lerns that'our Nation's young people face in the tr sition~froi~ s~heo~ to work, or to put it more ~imply, the problem they have of fluthng any kind of meaningful work. I hope this hearing will result in some proposals de~i~ncd to~deal with these probieins~ This is `a particularly difficult tim~ for a yionng person to be plane hing a; oareer andl~oking for work in this count~ Tôenagers and y~nng adults suffer from hig$1ie~ unemployment rates more tha;n 5any other g~roup of workers, Last Friday Julius Shiskin appeared before this c~anmitièe and annow~ed tha4 the unempioy~ mont rose in August for th~ third straight m~nth. Now, this was not only `an lmemplo%yment iici~ase in the ~vera;l~ general figures, but the important point bf Mr. Shiskin's testimony'was that unemployment in all cate~ories had increased, arnoi~g adui~ males, among women, among our young people. ` For example, in August the unemployment rate for teenagers aged 1' and~i7, was ~214 percent, up `from ~1.9 ~p~roent in Ma~ Fo~- teen-' agers 18 `to 19 year~ old' the August unempl~yment rate was 18 per~ (1) ~ S , PAGENO="0006" 2 cent, compared to 16.4 percent in May. And for youths aged 20 to 24 the unemployment rate was 11.8 percent compared to 11.1 percent in May. For black teenagers, the hardest hit group, unemployment in August hit 40.2 percent, up from 38.5 percent in May. Let me inject here tbet not long ago I was privileged to be at the ~ational Urban League ~Conference m Boston. And Vernon Jordan, the executive director of the Urban League, a man for whom I have the highest `regard and who I believe commands the respect of all thoughtful and cor~siderate Americans, ~told me that the unemploy- ment rate among black youth was as high as 60 percent, that the Gov~ ernment figtires are way below what the. facts, the real facts are. I mentioned thisin this regard because I want this staff to check with the Bureau of Labor Statistics as to why is there the discrepancy between the-Government figures on black teenage unemployment ~tnd the Urban League~ -`~he Urban League is a very reputable organiza~ tion'. And for there to be a variance of over 20 percent in the figures I think, is something that demai4s our investigation, and at least some reconciliation-of the statistics. So we see that fpr black teenagers unemployment went up again And in many, of our major central'~ities- unemployment among black teenagers farexeeds this national figum. These extraordinary unemployment rates mean that there are almost ~½ million young workers under the age of 25 that are unemployed. . Now, that is a national disgrace. And if I get nothing else out of this meeting today it gives me a chance to get the therapeutic effect of an emotional explosion. I believe that it `is incredible that a Govern~ ment will sit around paralyzed in its own indifference with -a natonal unemployrnent.~rate, or a natonal unemployment figure officially which undoubtedly is the minimum figure that they can dig up, of 34 million young workers of' the age of 25 or under. Here are. young people in the full vitality ..f life. These young people compi'ise almost half the total number' of American workers who are unemployed. For our Nation's economy this is a terrible waste of millions of young people who have unlimited amounts of energy and desire and it~lent, and who want to'becohie productive and useful members of our society~ And I am. sure that we are in for about 2 montls of political rhetoric ~about the high crime rate and what we ought to do about crime. And T am confident that what we will find out if welook at it-and I hope that our study `will be completed, may I say `to the members of'the committee-~---is the- relationship of the social impact of unemployment, and particularly `the hnpact of unemployment upon youth crime. `For `our young peo~$e these figures tbet I have given represent a terrible waste of a valuable opportunity to hold a job, to develop job skills, to learii job discipline, to `learn the ins and outs o'f the job market, and quite often~to earn the money needed to stay in school or stay out of trouble. - Of course, if' they don't have a chance to earn the money on the job they get the money on the street. And maybe one `of these `days this Gove-r~ment of ours will wake up to the fact that it costs a lot more to `apprehend somebody and take them to trial and put them in jail than it does to provide useful work. PAGENO="0007" 3 It is a terrible waste for our Nation's emplQyers, for the Nation's employers are going to find that the young people they need to expand production will be less well trained, less attuned to the needs of the work place, and costly to train for a specific job skill. From any point of view our negle~t of high unemployment among youths is a very misguided policy. And I particularly am appalled~ and discouraged by this administration's total lack of concern for -and responsibility toward the job needs of the country's young people. We have to tackle this problem,. and we must start doing it flow. And I hope that this hearing will provide some -fresh ideas and pro- grams and policies that could be undertaken at the Federal, State, and local levels, using both public and private sectors, to create mil- lions of useful and productive job opportunities for our young people, and to improve the job counseling and job information and job place- ment services available to our Nation's young workers. And I would like to make one suggestion. As a result of the forest fires which have afflicted the Nation, we have lost about 12,000 acres of virgin timber in northern Mirniesota, and maybe more than that, I haven't kept track of it lately. We need reforestation. We can put 1 million young men to work tomorrow on reforestation, right flow. But we sit around here and can't even count trees, much less see the count of the unemployed. Now, we have got some wonderful witnesses here this morning. And I am not going to take any more time and get wound up on this, because I am angry and disturbed. Our witnesses, as I said, include the very able and most effective young Congressman from Georgia, and Mayor Pete Flaherty, an old. friend of mine, the distinguished mayor of Pittsburgh. I am looking forward to seeing my friend, the Reverend Jesse Jackson of Operation PUSH in Chicago. Mr. Howard Samuel, an- other friendS from the Amalgamated Clothing and Textile Workers Union. Beatrice Reubens of Columbia University; Bernard Anderson of the Wharton School; and Paul Barton of the National Manpower Institute. And I want to say that if any other member of the committee has a statement they wish to make, now is the time to do it. Representative Moorhead. Representative MoomIEAr~. Mr. Chairman, I want to congratulate you for holding these hearings. I think you have put your finger on a most difficult and important problem, because the most important asset of this Nation are our youth. And I am discouraged by the thought that people who graduate, ~ot the dropouts, but the people who graduate are still on the unemployment lists. I think they are permanently discouraged. And we have got to do something about it, because this is going to be a burden tothe Nation, not only in the immediate future, but as long as they are unemployed, and can be converted to productive citizens and not become a burden on society. I welcome my colleague, Mr. Young, whom I meet regularly. And of course the* distinguished mayor of Pittsburgh, Pete Flaherty. Thank you, Mr. Chairman. - Chairman HtrMPHREY. Congressman Reuss. Representative REUSS. Briefly, I share in the indignation, Mr. Chairman. You have only to look at the newspaper storie~ these days- PAGENO="0008" 4 ~erday,~or inst~nqe, there wa~s a ~reai ,ti~g~et~s~ ~ef ~a n~gt~ificént ~~qiuig *~a~n 1~8 ~ear~s ~id ~ WasI~ngto~i ont ~Iown, mui~dered by sO~ne ~ j~1~1 ~ sout~ast~ Wath*i~g~ i~pi~i ben~ a b1a~& ~trea :~n this ~ity-~cut down hçcau&he h~1~a little q~~E ch~n~ ~ ;~1T~s ~po~ket a~d ~as 1~a~rn~g to enter ec/1~1eg~ i~1 a few ~ay~ 1~ is at~ awf~uI t~a~e~Iy In$~ie samejYa~er I read `t~hat ~ur e~ceUent Seóretary df ~tpth, Sec~ r~ti~~ ~issi~er, wq~nts American ta~ayer~ to come mp ~wi44i a~ $2 b4o~pit~ogr~in oi! ai&1~tig wiute Ith~qd~i~tt~s w}~o ~e di~tresse~i ~1~out tkrn~ ~ ~ copiitr~ to be trans~or1~ed in ti~a~ths so~e~1a~óe ~h~re t~ey~aii~etjót~ i~r ~óbs brou~rht to ~em. i1a~t propesi~iou4s s~ui~l~ wç~rth ~TGGkthg at ~Bj~t I shourd thii~k we co~ld~ tal~e t~tU~t $~ billion ana do sozi~t~ing f~r the stra~n4ed you~ng Ai~ieric~ns ix~ our dit~es ~nd hi our cot~ntrysiae. So~it i~ a go~d idea, I think, to ~have this hear~hg.,~ Oha~WHtr~rm~ I want to say, Co~res~mM~, the secretary of Stt~'s r~iiest ~for ~2~bilJion will have to come ~o the S~iate E'oieign ~Wa1aoQ~orthrp%tee, a~ ~[ iec~U, j~or authot~at»=en purposes An~l we wilt e~a~go~~ ~kx~k ~t it. W~m~ty wth~to dec~ie %o oh~hge ~ from B~Onth~ri~ajis. ~~reitatTi~ues. Consid~r ftlternathre uses. Ojiainiian H~mt~r~ Possibly. I h~ve an o~ning ~a~emeirt ~i~e our colleagues, Claren~e Erowh, wh&will.Iiot4~e5~~1ble ~to at~ t~id ~s~ioi~ig So, without ~b)e~t1on, ~J will ina?ke ~t a part o~ th4 i~rdt~tlfi~ ~th~it. [~I~he ope~ig state~ne~$ of Representative Brown ~f~i~ows] OrENING STAThMENT OF REPEESENTATIVE~ BROWN ~ Is a prt~e for n~e to ~ tins s~ateme~t 1~e~o~e this Conurnttee on which Iv~or~S~eu years. S ea~j~ sta~1stjes ~f tbep~ t~ree ~no~it~s ~e ~ ~1~o re~~t ii e~frIpio~ved. ~t4~se earitigs cen~ter on ~o~ie ~of our ~rnOst ~ b~enis ~the ~h~roulc unemploynient o~ teenagers, and particulary black tee~iagers. in ~u~st, ~t1ie ~ .im~ht te~to~d ~ tT~ p~r4~$, ~ r~ (1M percent) of our 16 ~~9ye~r old ~ w~io ~ ~ce~Øij~g work, could not find It The Atigust rate for white teenagers was 17 ~ pe~tLt ror b~aek tee~i~gers, the rate was a elipcklng 44)2~reei~t, S ~ tr~he ~prob1~rr~ o nMni~1oyrnent ~nn~t ~i~e .soived~mt oni~ because mt its~ser1ous ~Q4no4~Ie vop uepi~s, bu~ a~o b~e~Use o~ t~ ~ soei~l 1~*ut~a o~ ~those 1t~1~* S ~ c rniati,I baye e*~reps~d my c~~n about this pro~le~ by ~t~'oducin~ ~rE IM8~ 1~t~ i~uee 1~st month Plfis legis1aMon sttikes at the beart o~ thé S ~tne~i$~m~it ~rohieznwIthoiit Jeo~aardithag the 08 ~~flt5of o~u~ bor S 1~i$ ~e~o~M~' 4yM~i ~j~4I e~~s~i ~a g~n j~f e4eraIg~t~r ~he esplQ~t~nt 49i,~u1~g p~1~ e~4e~pi~lly ~pue~iPlo~c1 i~4i~~nl~. ~ a~ ~éitt d~ ~emjfi~i~enf 1~ice~uttcr~ sutsh1~s, coupled w\th reputed tr~n1ui~ pro gr4ins, tb WI~egI~Th~t1óñ would ~elp pr~pa~re 4~hese IurOnieally 1~em1~4o~red ~tt~ toke tI1?~1Jlacs~s ~ ~f ifhe wo~k1u~ soei~ty. S ~ Qone~itxw1ies cs~ t~ez~agers ~ti~d u4~I~s, giv~1~g m the 1ist,i~lprity tór ~ SIt. t~1~o ~v 1i~}(~rity to i~p~d ~p~ic~js~p ~au~as ~f ~ufg1~ ~ mt~1o~n1eult to cqmbat parth~ufarW ~evere re~içrn~1 io1~essnes~ The ~ a sije~4at e sIs11I~4n~ and tralñfiig `of th~é~e ~bronically unemployed workers by small' business firms which can ~is~e close ~tttent1on to new' workerg. There Is great pot ~ ~n~sfl 1i~zsl~i~s puiplu~sis. For e~ple, ~l~p ~ ~1ic~ut 13 4~1~ç~u ~ai~4~p~ss. fiu~s~ 14 4i~4~a. ~ only 8 tiuifl1~n ~f t~cm bfrçd $ust one e~tr~ ~k~r e~c1~ It ~ropld pit V.~$ nnemploy S men tüttst~I~4iâ'if. `` "~ S ~ ` ~ ~ S ~ ~ ~ r PAGENO="0009" 5 ThId~ I~;R. 1~1~1, un~ipk~yed persons wi1~ qiud~~y to have 30 percent o~ their wa~es snbs1~IlzE~d bas~ on a ~i~fÔI~I4 j~dh1t ~yst~n~; determi~ned by the individual's ~employnieñt c SsIfié~tiOn (ê~g~, teenàgeiP); tb~ rate 0± ploymç~t ~ln the area o~ reside!iëe of the worker; ~nd the size of the hIring flrth. Tl~e xno±é the un~m~ioy~n~ent rate of a cia ii~t1öt~ of w~ôDkers or area ~if ~ t~e j~atio~ia1 arer~gé unemplo~ie~it ~tatlst1eS th~ higher the p~ior!ty points. A ~ority list detE~rthine$ whO 1~ )fl~eIy to be hired and ~1to Is ~iot, depending on t1~e ámoutit of fi~nds ava1iab1~e tb t~e state ~or the p~o~ gram. ]~irms ~1~h1ng ~o participate ft~ the px~Ogram. must apply tQ their lp~4l ~inployznent security oftice for certthcation. of a mandatory tralrihilg prog~ ftor the w~~ker being hired. States will be ~yen a share of $2 bjUiOn In fec1er~l ~ttn~ to be at~ropr1ated und~r this ~egts~atlon in p~opo~1On to ~ state's tothi iinemp1~y~ent :5~fl~ Its rate of ethploythèlit, cothfared to natibMi a~evages, in a n~flner to be deter- mined by the Secretary of Labor. The state will be req4ire4 to put u~~2O percent matching funds.. Each sta~te department çsi labor e~uivalei1t will adm1~i- ister the funds. rJ~he azuo~nt of subsidy to any one Individual, u~' tO a t~thtinth' of `$3,000 ~t year w)i1 be, pluisèd out by ~fourtb e~~Or~ six mdnths, ~vlth the sui~si4y to be fUlly term1w!~ted at the end Of twc~ years. Wre~ec,t~the lc1e~ that the training niid ~voi~k e~perlence a' worker `Is ~ettip~ i~s ma~lng b~tin lit to talte his place In'tlwiabor ~~tket çn anonsu~sidiz~d ~ MI'. Chatfmnn, th~ unemplóyi4eht O~g1~a~ e'~ñtM4~ `hi' ~`1~181 15 `bSsSd on a desire to give' our teéuá~ers the o~pbi~ttñ1Ity to receive training anc1~ fin4 employment, in the private sector. The training i*pvision I~ the bill Is eSsential pa'rt if thls~~~ort to help the thaemployed b~come productive ~nembers of our society. ` I realize that t~m ~JoInt Ecpliomic Coninfittee IS not a iéghi1~ative coththlttee, but in trying tO ~o'j~p~ th1~ difficult econofflic and sbctal prohlOth, I commend IT~Th ~i5l31 t~ my coU~gnes añ~I~ to `the COngress as `a whole as an Ipexpeilsive, versatile and ef~eeti+e"niechanIsm to meet the problem w are talking about toda~r. , , ` ` ` ` ,, ` ` I thalik the Chatrma~u for this oppo~tun1ty to ma'l4~tMs statement: hai~th~n'~ifftthiiu~. Oongressm~ui. Young, we `are g1a~ t& ~ai~ ~u With t(5~ `~ `,; ,;~, ` `~ ` STAT~~O~' HON AIIDBIEW YOUN~ A ~ ~ IN CONGR~S$ P1~O~ TH~ PXP~ ~COl~GitZSSiONAi~ DI'SflICT O~' T~ `~th~T~ O1~ ~JO1tt~tA RepresentaTe Ybu~o. May~I'~say to~'you,' Mr. ChairMan~ and to my coll~á~'U~ f~ou~ th~ House Bunking ~ornmittoe `on which I ~or~ u~erly servè~d~ ,it~ is a pie~sure to be here ~rith you and' to share with yorti the bó~tu~rx~ for `yorth unemplOyment' jn this Nation. ru a re~eut"editoriaP in the New `York Times, Roger Wi%kins made the shocking statement th~t it may be harde~' "to deal with `the prob4 J!Mns' o~ u plo~yecl' y~dtti'ig people than it wa~ to deal with the p~ob~ lem of int~rating former slaves into our society at the end of th~ `Civil War,Tfolk the former slaves were economic participants in the system, and~ it ~as simple a matter of beginning to set up political audi edutffi~'tioi~i opportunities. `~But their ecthtomic wellfrbeing and work str tir~'*et~e `airead~' established. Thati:ia not today the situa~ tion, with our youn~ people, ~biack and *hjté', from the ages of 18 to 21 They ~e perhaps ~the group iii öu~ society that we spend the least am~oni~t ,o~ money oi~,' i~hless they stay within the public ednca~ t1b~i' SystOm. "~ ~ ` ` ` ` `~ ,Thit M thy ,`o~ town `of ~tlant'a, `Ga., we ar~. f~izig ah inner-ci~y ~ in this ~e range froiif ~`O to ~O pe~b~nt, ä~d a total city rate of about 47 percent. PAGENO="0010" 6 Two-thfrds of those in Atlanta a black young people. Nationally, we are talking about a constant increase m the figures of youth unem ployment, because there is no easy transition, now from s~hoai or from rural communities into the 1ob market, partially because of the~ mecn- anism for this transition has been cut out by this present administr~- tion. The Job Corps began trying to ease this transition but the funu- i~g has not increased even though it' was successful. In fact the funds were cut. Chairman 1Iimirinm~. In half. Representative YOUNG. That is right. Through the Peace Corps, which my côlle~gue,' Congressman Reuss was very instrurn~fltal in helping to devel9p- Representative REuss. As well a~'the chairman. Representative YOUNG. We had some opportunities for a small seg- ment of young people. But unfortunately, I think, for our society, the biggest transition mechanism formerly was the draft And when we did away with the draft we closed the door of opportunity in one sense to a large spgment of our society that had no other channel of access to the job market except through the training and discipline which c~me with involvement in the military. I opposed the abolition of the draft, but I was never satisfied with the draft. An ~1ternative to that concept, 1 thinlç, is a national volun~ teer youth service-which Senator Humphrey w~s~ beginning to de- scribe in, his opening remarks-to give ~ur youn~pèopl~ a chance to spend 18 months in training and in voluntary service that would enable them to mak~~ ~he transition from youth to adulthood with some ~-overnment assistance. There are many things that can be said for this kind of program in iesponse to our needs in IJie cities-the Teacher Corps, a Civilian Conservation Corps a paramedical and youth leadership training system in our cities That uught make it possible fo meet the needs not only of these young peopl~ but to meet some very pressing needs in other parts of our society. We also have, on the House side, a bill introduced by m~y colleague, Congresswoman Shirley Chishoim, the Comprehensive Youth Em- ployment Act of 1976, which would attempt to link up~ employment opportunities with educational opportunities so that there wouldn't be a gap between public high schOol and the job naa~ket. We have done some amazing things in Atlanta in this direction with our `distributive education program which' gives young people in their last 2 years of high school an opportunity to work, part time and get acquainted with a company and moyc into the~ j~b market directly. But so `far all of these things have been very piecemeal, very experi- mental. And when we are talking about roiighJy 50, percent of our youth population who are not now a part of the on-going economy of this Nation, we are running the risk of having them set up a criminal countereconomy. They will not be inactive. This is the most active stage in a person's life. Theywill do something. The question~ I think, that is put before the Government is, will they be encouraged to `do something constructive and creative, or will they be allowed to sink into chaos and destructive activity and' become part of a criminal counterculture that we will spend far more money to' try to counteract. PAGENO="0011" 7 I think, ~very simply, that is the choice that &~ ~before us. If I can be partisan-and I guess it is all right in this committee- Chairman HUMPHREY It is dangerous, but go ahead Representative YoUNG ~ don't know that the kmd of voluntary yoi~ith service that I am talking about ~wou1d bepossible under an ad-S ministration that did not believe in young people, that did not have; a high sense of idealism and challenge about th~ role of Government m maintaining order and stability and direction~in our society There is a sense in which the Government is the protector and provider and father figure for young people. Many of* them are young people whose fathers were dislocated or lost in an almost 25-year period of wax That gives us a kind of responsibility for this young generation that I think cannot be ignored. And I would hope that this com- mittee would begin to move in the direction of Congresswoman Chis- holm's suggestions for a Youth Unemployment Act But more irnpor- tant, that you would take a serious look at a compreh~iIsive voluntary youth service with a broad range of vocational and tI aming oppor- tunities to help our young people participate creatively in this society Chairman HUMPHREY. Thank you very much, Congressman Young. We appreciate it. We will just go down the line with my colleagues if it is agreeable, and then we will do the questioning after the witnesses have all made their statements, Representative YOUNG. May I be excused, Mr. Chairman? Chairman HUMPHREY Yes I know you are busy, Congressman Before you are excused I will ask if any other members have any questions to put to you. Representative REUSS I will wait and see him over in the House Representative MOORHEAD I want to talk about this Comprehensive Youth Voluntaxy Service Act I think you are on the rxght track there. Chairman HUMPHREY. The whole purpose of this hearing, Con- gressman Young-as you know, we are not a legislative committee- is to focus attention to the issue. What is so appalling to me is that there is so little public attention on the proposed remedy for what is now a national disaster. This is not an ordinary problem. I had to make a judgment as to whether we could take time to hold these hear- ings. Actually in the Senate we are not supposed to be holding hear- ings. We are going to hold them anyway on this issue. There seems to be such a lack of attention to this dreadful social cancer that is eating at our society And I just want to stimulate some discussion of the Chishoim bill and others. I am not going to keep you any longer, except that we would like to explore with you, and we will ask member~ of the staff, to explore with you your proposal. Representative YOUNG I will be glad to submit a draft of just some preliminary ideas along this line to the committee staff and to the committee. Twill get it to you in the next weekor so. Chairman HUMPHREY. And we will contact you. Thank you very much. [The information referred to follows:] At the conclusion of my testimony, Mr. Chairman, you expressed interest in my proposal for a national voiuntary youth servi~e and asked for more details. The PAGENO="0012" ~1an I wGi2ldllkè to ~bmtt~fo~OtIr c~nstd~ration is that put forWard by Donald J. Eberly, Executive Ditectur of the Natio~'a1 SerV~ee Secretariat, at the Hyde Park Conference on Untv~rs&1 Yontj~ Service in April ot tins year I participated in that conference and believe that Mr 1~er1y s plitn is a realistic positive proposal for ~±~fres~th~ tliépk6b1é~th èy$th ~e~ri~b~ment. ~ ~fa~è *~th1~o ~tt~ a*Ordâb~fl~t th~e ~Ost of natiof~aI vo~uniary youth service. The enr~11metit ot ofle nullion young people the flgttre estimated by both Mr Eberl3r ~d Dr Beri~ard Aud~rson, would mean *~ budget of sc~me $~ biilion per year Where will the mor~ey come from? X suggest to th~ Joltit Economic Committee that it câhflhlate the tiiin df 1N~de~a1 thoneys beiiig Spent to suj~ort young peop'e that *tt~M i~Wt~ be sp~±Lt If tt~èy ~t~e receiving the minimum. wage a~ members i~f a nattonrU ~vo1untary youtb service. Probably the major programs to con~ eider are unemployment compensation the summer youth program and various welfare pi~ogramu When this analysis is made I think we shall find that the *niottnt otne* th~oñey roquIr~d to operate national voluntary yoitth service would be sttbettuthalI~ ~e1OW Its $~ billion eoet The foiiowrng ezeerpta from Mr Eberly s paper refer to a program of Uni versal Youth ~4i~vlee (UYS) and to the Program for Local Ser*~Içe (PLS), fl experimental ~tlona1 ser+i~e pl~ôgram conducted by the ACTI~1N agency. GoAts AND PRINCIPLES 1 ~o accomplish needed human, sodlal and environmental aertices nOt cur rently being mOt. 2. To permit all young people to engage in full-time service to their fellowman. 3 ~]~o guarantee to all young people a full year of work experience 4 To enable young people to gain experience in careers of interest to them 5. Po ~ffer tO au young people crOss-cultural and non-clasSroom learning ex~ periences, including practical problem solving, working with people, and the acquisition of. specifle .sittt~s. (~ To foster abiong ybimg people a senSe of self worth and c~vt~ pride To ~ceomplish tht~se goals requires a program with certain characteristics 1. U5!~$~ mast triz~y be dpen to afl ~joaat~ people.-Thls mOans paying special attention to persons who have few skills are poorly ~du~itt&1 are bashful or don t get along well with others While giving them special services we shall hftte to l~. q~reful ijot tO Sepflr~te. them from others. F~r example, persons with ~ew ski4is may do w~Il at conservation camps where they will serve with -college-edncâted environñientaliots á~d where they will receive necessary train- ing Poorly educated persons may work on health or rescue teams with persons -with more education. Those who are shy may neOd only the servjOes of a friebdly facilitator to assist In the first few interviews en route to finding the right ;positiofl. . .. ~ SuCcessful cteeetdpanent of ttY~ requires a tratzsitioa period of abo~ttt three yEa~s-Tbê transition periOd se~eS two vital functions First, it allowS tmth fOr U!~ to grow from an Idea to a ~,ogram involving a milliOn or more persons Various studiee suggest that while the need for youth service workern is on the or4er of four to five million, the number,of openings that could be filled in the next three mouths is not more than 2~O~iOO. It will take some time to translate n~t1Onal Or local nOOds into actual ~ositions with organizatiOns. Another con- straint on rapM'growtb is the size of thO supervisory Staff. While time demands vaty greatly the typical superrisor may expect to spend two hours pei week with the IJYS participant, perhaps several hours during t~e first week. or two. Few supervisors can handle more than two or three UYS participants in adth tion to their regular jobs This ratio is a limiting factor to agencies acceptance of IJTS participants until the next' bticlgot cycle permits the hiring `of `additional supervisory staff. Second the build up periad~ provides for experimentation within the overall program guidelines The dec~ntraliaed administration will permit even encour age, +~ie `states and éities to test ~ ~rarlety of approachOs' for ljiiplethen'ting the goals Of UYS. There a~e ~ Ways, for example, in WhIch IJYS partiei~ants can derive educational benefits froth the TJYS. experience. TheSe will be' closely watched during the early years of the program to determine which should be. Incorporated into IJYS and to determIne the extent to which educational arrange- ments should remain flexible. .3. j~artioipation should be arranged'bij a contract, ~ ttarily entered into by all ~aries.~-The~eOntraCt would descrIbe the responsibilities of the UYS partiei~ PAGENO="0013" j~xii;, the s~perviso~, the ~pQ~G~!~ ~ge~i~ i~i~ ~ ftind~g ~ ~h1s ~ i:~a~c~ ~oU~d ~tefl4 the chd1~e~ ~pe~i tp p~p~u~tb as ~vfl1 ü, ~o spons~, ~zipaIm1ze 1~ie possibUit~r ~f ~ a~no~n~ the par~ie~, a~id i~stab1is~1i a~e~ez~ce ~*int fo~ ~ya1UaI~Iön ~f t~e p~ogra~. ~ ~ ~ ~ tT~ I~z~$t b~ ~ $o'iøia.~ Q~, P~ ~ee4 fo~ 7s~wpii~g $erVioes~ pertOr~cd.- Mc~st c;i! ith poteutia~ ~r ~yo~t~h e~Op~~t Woi~d ~ni~1i ~ The ~ ne~d~d ~ i~ ~ tY~ ~rtietp~~s ~e~iv~c~t u~e work to ~e Of n~ çons~q~zice. A ~na ato~ ~n~iei~1 ~o ~jbutiQ~ 1~y the sponso~ would 1~eip to ~ore~ the worth of their service. ~. Mn~w~ lQcc&~ ~pport çf UYS ~bouZ~ ~ ~noç~sirgeZ wit/v ~r~t~i~i g~a~tee4 ~44t~ Fe~erc4 UQ~er~e .,-~aSt e~t*i,I4~1~Qee sflg~eSt$ t~at Ji~Q~t ç~1~1~i~ an4 ~ icvoulcl o~t fc~ jn*~1murn ~e4$~al ~ui4ing, ~IU, t~iere ~s ~uc]~ e~ide~e in ~ce~l ]~g~la~ç~u s~owi~g tb~tt low~*~e~s~ of ~op~e~ w1~U flave dis~r~- ty~t~c~rity o~ snb~ta~tj~U ~rn n~sç~ xnç~ne~r for t~ie ~r~oseof meetiu~ social needs. 6. P~ez~$ç~$ 4Q4~Z bg a~UQ~ç4 ~a ser~e~nT9,Y~ y~r~ VIQ ~ ~ jQwr yeii,r$,- A part e~ t~eii~S~ ~4ss~c~ ~ ~ p14~o~, ~ ~$ wp4~ ~ not a lifetime job. ~ fo rrye~~ ~i 4i4~t ~ be ~ by ~et~o~ or by restrlctii~g ~J toa f~r~ye~r eo~hort, su~ba~ ~8r~' - N~Z~ZO~ O~' U~ O1*~y, both the nee4sap4 the ~sou~ce~*1at ~ ,~ e~le. ~ 1~y~ wb~1g1~- t~ey are broUg~ht tog~th~er w1~l vl~tl1y, affect the 4~ of ~uiocess ~f t~ $~o~t. The~re ~ ~u~zi~ëxc~s pQliti$, riug~n~ froze a gbiy ~ ized, tightly controlled hierarchy, replacing present Federal yo~i~tJ~ ~ the de~centraltzed, ~ops~1y ~orc1ii~ate~l n~t~york.p~ 1~Lu~it4cl, ~Oitie~wh1~h e~1~*ts tQ~~y. - In o~e~ to, ey~nt ~I~eri~inat~on, b~q~il ~e~ct a~4çov~z~, ~ ~taiu ~ o~ Federal control Is necessary. Such innocent pro~esse~ as rec ~n~,éfl1 a~d a~lJ~ cation eai~ develop ~nf~ l4ghly ~Qphisti~ate~. sort~ p~p~$s~ Pb~e, ~U~e~ei~X GQverlUn~e1~t zr~ust re~t~fti tilie rig1~t tc~zeview and r~~fy such act1~vttf* I~z addltI~&tathO q~Sti~u of ~ede~'4L eo~t~oi, t~ d~ei~l ~i~4pg s~are can, be -of ~raz~yii1g levels~ and can be- aft ered in~a -v~t~t~y of-zg~ys. TI~ ~a~pei~ reeothme~ds~ an nhdenwi'&tipg a~pprO4Qh~jn whieih ~ie~al fU~ ~`l14~ i~t. r~ p1-ace other funds already available, -but In which Federal monies would bo~ ade~ q-nate tO guarantee ser~ice positions to a~U y~u~gc ~e~~ie -who w~nte~ tn. It suggests that funds be administered by state owloesl~Eeve1~ of govem,me~it, and th~t they' be obtainedfrom the Federal Government by means of the gra~t.~makl~g process. - - - - - - There is also the decentralization issue, as excuiplified by suc~ activities as recruitment and placement. Should all applicants ~jpply to Wasldugtoa, AC., there to -be classified- and sorted and placed, or sboukl a more personalized local mechanism be used? This paper suggests -that essentially all applicatron and placement procedures take place at the State o~4On$ level. At the same time, there would be enoug~ common elements In - aU U~ prograths to- give UYS a clear Image nationwide, and to permit certaifl generic recruitment activities to be undertaken on the national level. - - - Finally, should U~S be housed in a new agency' or an ~l-d one This -paper suggests a combination, A new entity would be needed at the national -level to - perfOrm a new function. At -the state and- local level ~Where p~ograms were. ad-- ministered, there would be no new organizations but a sometimes new coalition of existing organizations. At the level of the sponsor, - wliáe the actual TJYS p~rticipant would woth-,, new organizatiOns w~u-ld not be ruied'~out but the great bulk of activity would be conducted by existing organizations. - - - - If we were constrained to o~$erate UYS thrOugh present programs, we would iirobabl~ start with the Youth Conservation Corps ~nd AYi'ION's Program for Local Service, Neither of these programs is lhntied -to -a- particular class of peo- ple. T-hen we would add a -few restrictive programs such as College Work Study and selected Titles ~of the Comprehensive Empioymqnt an~d Training Act. --We wOuld try to articulate these in ~ way that Ied'tb no uystematie discrimination, The next -stage ~ould1i~ to bring i-n ~rograrns whieh1em-phasi~e the serv1~es to be pè~,formed. These m5-~- hO fou,nd in abundance in -*e Department -of fte~ith, Education and Welfare, and to a somewhat les~ev e~t$it in the Departments of J~ustice, Housing and Vrban Dev~iopment, Agricu~t1l~e~nd Interio~ - * -~ -: ~* ~ PAGENO="0014" 10~ The appro~chhas a certalu appeal and, given the time lag in achieving new legislation may be the preferred way to begin UYS The toughest p~ob1em once aU the negotiations were con ~ eluded at the Federal level, would be to achieve a consistency in the articulation amo~ig programs at the state and local leYel. We can ilnd a few examples o1~ genuine and effective cooperation. The persistent problem would be ju trying to achieve a repUcaUop o~ such cases to the end that all young people have opportunities tor full time civilian service Perliaps It can be done. Even so, it may be useful to have before us another organizational model, one that comes directly from the set of UYS goals and prj,i~ciples. `The recommended orgnnization f~r UYS is the public corporation; it would l~e a~eeountable to the President and the Congress but somewhat removed from day to day political pressures A suitable vehicle for fostering local initiative ~nd decision making i~hile retaining basic program design is the F&i~ral grant. This mechanism can be used to fund UYS projects. In brief, the system would be organlzed;as follows: a A Foundation for Universal Youth Service Would be established by law It would be a quasi public organization similar to the Corporation for Public Broadcasting, and would receive `appi~ópriatlons from Congress. b. The Foundation would be operated by a 19-member Board of Trustees, * with 12 of its members to be appointed by the President, with the advice and consent of the Senate, and following persons to serve as ex-o~cio members: the U.S. Commisslon~er of Education, the Commlssioner of, the O~ce of Youth De- velopment the f~mployment and Prainmg Administrator of the Department of labor the Director of ACTION the Director of the U S Forest Service the Director of the National Park Service and the Director of the National Youth ~er*rice' Foundation. c. Also, an Advisory~ eouncil would be created to advise the Board of Trustees un broad policy matters. It would have 24 members with at least eight under 27 years of age at the time of appointment. Members of thé~Board would meet at least three"times a year. d Present Federal progrâui~ provIding opportunities for youth service would remain in'effeet. These include the Peace Corps, VISTA, Teacher Corps,. College Work Study Program, Job Corps and youth corps programs funded by the Corn- prehen~lve Employment and Training Act.; The Youth Conservation `Corps would lie modified slightly to permit 15-17-year-olds to engage In other thait strictly mniservation activities and to `explain UYS to' the enrollees. After threeyears of UYS operatiOn, Congress would' examine all of these programs to determine the appropriate degree of consolidation among them. e. ThO Foundation would'in~ite unitS of btate~ regional and local governments to submit grant applications, outlining plans for the operation of UYS within the specified. guidelines. The `Foundation would award grants on the basis of merit ahd the funds available. In considering proposals' the Foundation would give particular attention to the priorities allocated to job placement, accomplish- ment of needed services, education and training, and youth development. The Ideai proposal `Would reveal a' balance among these goals `supported by participa- tion'of the respective agen~ids in'~program administration. f. Grantees would have exclusive jurisdictions, as defined in the grant appli- cation. Thus, several cities in a given state could be UYS grantees and the state government could be. the grantee for the balance of the state, as in CETA. g. Grants would run for periods,of up to three years. Upon receipt of the grant, the grantee would'~annOunce the *prQgram.and invite participation `by persons ages :18-24. At the same time, it would invite participation by public and private non-profit organizations interested in becoming UYS sponsors. h. UYS would have two major options': Community Service and Environmental Service. Community service would be modeled after PL'S. Applicants would interview for a wide range of local community seyvice projects sponsored by pub- lie agencies or private non-profit organizations. Those who wished to travel in search of Community Service projects would do so at their own expense and' would register with the local UYS~gency. UYS would make no special provisions for' them. `Most sponsors of the Environmental Service option would be Federal, state, Or local agencies. Most environmental projects would require `travel costs as well as éxpenditui~es for suppiles and equipment. Such costs would be the responsibility of the sponsor, not of the ~oundation. Where `lodging and food were provided by the sponsor, it would,'be'entitled to reimbursement by the UYS `grantee from `whose jurisdiction the participant was recruited. PAGENO="0015" U The UYS op~rat4oii~~proc6~S Is outlined in the appeMtx~ Let us examine how ~ UYs might prQVide i~o1 ft~s eñro11~s ~fte~ completiOfi `o~ serv1~e, and b~w UYS ., might remain ~es~Øds~tOcuri~ent ne~ds4 ~ ~ ~ ~, After Service ii~ ~j~.-~-As:1ndicated e~irller, UYS l's seen in this u~odel as a transition program. U is not a lifetime job, nor does it guarantee employ~nent upon compiet4'oLi~tt]i, V~S should include ~ertain features that would facilitate the employment an~t~l(Dtl~er education of ItS members. First, TJ~S sbould hS a `s3urce of information a'bo~it lobs and education. This information could~ take the form of newsletters, job information sheets, oppor~ tunities for couusellhi~g, and referrals to such institutions as the Employment Service and the Community Ed~ucatiou~Woik Councils proposed by Wtllar~I Wirtz. Second, U)~S ~boul~t' ~ ,~he work petformed `by the participant. The cer~ tification should be Of~a de~crtpti~e natbre, not a judgmental one. Such a certifi- cate should en41~1e the outgoing~participaflts to get~beyond the inittal liflrdle to jobs for which tlie~ are qual~fie& Third, consideration. shotzld be given to ofeering TJYS participants~ an educa~ tional entitl~urient,, a~ fl Bill for Community. Service along the lines proposed by Elliot Richar~json and Frank Newman in j972, At a time when the 01 Bill for militar~ ~erv1ce' appea~S to'b~ on the ~vay out, `and tln~r,i~ial supi~ort packages con~ sisting of l~an's, gran$ and work-study, aremaking ~p~or~unit1es for higher edit- cation almOst univei1~1, this Is a compl~ex issue. ]3ntlf the nation wants to con~ struct incentives f~r ~articipat1on in U!'S, an associated educational entitlement is one of the mOst consiStent~'ways of doing it.* Fourth, the Women in ~ominunity Service and Joint Action for Community Service programs of the Jtb Corps should be adapje~i for ntilization by 1J~S. These progi~áins ntili~e volftinteers to recruit, c9~4nse~1, aiid place' Job Corps én~ rolees. It Is a service tbat~ could~provide special help for lower-income young people without having a stigmatizi~tg effect on the program. ~ A. 5% Fu~4 for perlfle~ttition.-The ~a~er oz~ !outh, ~~vice ~tliestones from 1945-75 descrIbes the changes that have been~~ing on "the natio~ial service idea in the ~ast two~4e~ad~s. First it was `viewe~E~ a wa~"to demonstrate Our commitw~nt to peace, then~ as a draft a~ternative, then as a mean~ of ei~tabi1ng ~tudents to acqtth~e reie,ant~edueation, now as a way to solve, the youth unem- plo~yment `problem. ` ` ` ` . rfl~roughout this period,~ there has been little change in the bos1ë~ conq~pt. All young people wo~Id 1~O assured of oppor~nn1tIes, for meaningful service, alid imderwrlthlg w$tld Ixe provided by the ~ederal government. hence, ii is reasonable to suppose that `such a program wOuld have stood the test of time. `In the~' future, all signs point to greater changes over shorter periods oi~ time. If we as a nation ~cOntInuè to procastinate o~er the adoption of ilational `serv- ice, there is a gO~d chan~e that it will be imposed out of necessit~yc It will be a crash program,~htO~rIedly assembled and inefficiently managed. Even if the `model y~out1h service progra.m outlined in this paper. were adopted today, it might prov&'too~igtd to meet the unforseeable demands of fivO Or tEth~ years In the future. Such ~ieeUs might be be,tter anticipated if suMcient experi- mental funds were allocat~ed to the U~S program. It is suggested that 5% of the tot~al budget be devoted to' testing ite~~forms o~ youth serviç~e progirárn~* These could "range from' Caiiada'sMpportunIties ~cr ~out~i `to Israel's sevej~ul models of youth involvement. The Student Originated Studies program sponsored by the ~`atlonal Science Fothidation might serve ~as a model for youth-initiated proj.' ec1~s. Also certain culturai~and public works projects falling outside the stand- ard IJYS criteria could be t~stOd unclet the experimental program. Appendix , OPnnATxoa OF ,~ UY$' The process of hultially identifying IJYS sponsors and pa~tlcipants may best be dese~'ib~d, b~ imaglilifig that we are Itt a city o~ state that has just received *Several possible mo&~Js ~tre presented in "The Conin~tuiity~ Service ]Pellowsiiip Plan-' tag Pro3ect by RobQrt L. McKee and Michael T. Qa1Tn~y~ American +ssociation of Com- munity and Juaioi' Colleges, One Dupont C1n~1~ W~sl~ngton, D.C~, 1O'75~ The study was fnnded by ~ction. In a typical model, persoUS jn ~uhJ-tinie community service woUld be entitled to $~I~t~ of educatiOtlal benefits per month of service, witb a minimum sörviee Derlod of six months, ` . PAGENO="0016" a UYS grant. Let us t~ac~ the proc~s first for young people and then for the s~onsç1~ing agencies. . ~. tôtht~ ~eop1e learn of 1JY~S from nuwe~ous sources, lneii~ilng word~of-mout1~ ue*~,a~)~r~, tad~o, television, scl*ools, colleges, youth c1ubs~ and' religious groi~pS. Wh~re mailing ll~ts are available persons from 18 to 24 ~re sent iufOrmatioD packets on UYS. Elsewhere, intensiveefforts are made to m4I~e the packets easily ãv~1lab1e through a variety of channels. (By the ~econd year of UYS, m~iriy 18-year-olds will become acquainted witi ~ thrôugl~ participation in the modified Youth Coiiservation Corps. rJihese tCÔ camps are re~idëntlal, 8-week summer camps with horn 100 to 200 persons ~t each ;sit~. Each camp has these features: The niajor part of the time is devoted to ~erforming needed conservation ~d commupity services. ~~ome tin~e is devoted to giving uecess~ry ~rain1ng to the young people qnd. to reflecting with them on what they have learned froili their service Rerient~e. The participants are informed of their options under UYS when they reach the age of 18.. Each camp has a $oclo~eeonoXnic mix of young PEIOPJ~ wiii~1i retlects the poslatloti of the surrOunding area.) ~, ~uple, pn~-page ~ppllcatlon form is included in the information kit. ~Persons interested in jOintng `t~YS complete the form and sen4 it to the local center foç processlr~. By return mail the applicant receives an invitation to attend a Qn~-4ay ori~t~qnsç~siop to beheld within one month. FQJ~ appi n1~ who ~h~$~n't yet decided whieh branch of UYS to join, further 1qit~t~ç~i i~is~ eouns~hng'i~ t~vailable at the orientation session Also pending legal and medical probleiizs ~re reviewed at this time and a detgrmnir~ation in j~i~T~ as to wh~J4i~r .U~e application can proceed or has to await resolution of s~ç~l~ ol~s ]l~ae~i ~ua1lf~7ih~ applicant completes a one page iesupie and re cetresa vg~iç1ier and a~e~nt~fdi~rn. ~I'lle resume serves as an `i~ritroduction to the potential sponsors and describes the applicant's educational background, work experience and interests. The voucher guarantees a certain le~veI of financial support and health care by the U.s. ~oycrnm~nt in return for the performance of needed services by the ~pp~cant and cornpliance with the regulations by both applicant apd sponsor. The agreement ~çrn provides space for the applicant and sponsor to spell out the duties of the applicant, the training and supervisory responsibilities of the spopso~, and other narticulars relevant to the job. N~t, ~pliëatits have direct access to a computer terminal where they corn- pilqä list of o~ions which interest them. Applicants then receIve brief train- ink' in intervi~w1eclini4ues and ma~~ appointments for one or more interviews ~itb spons9rs. ~b~malT~T, officials from l~he Environmental Program are avail- able at the orientation se~sion~ 4greeunents may be completed and the voucher signed and certj~ed by the end of the day. Por persons seekiflg positions with Community Service agencies, it may take several days to compiete a round of interviews leading to agreement between applicant and sponsor. The final agreement states the date of beginning service and provisions for traiti~ng and transportation. UYS normally provides for one day of tra1ni~g on a4nlinlstrative matters. 1~Vork-related training is the responsibility of the sponsor and is given as part of the service period unless otherwise provided for In the agreement. Sponsors are recruited in a somewhat similar fashion to that used for par-. ticipants. Sponsorship is universally open to public and private non-profit agen- cies. Sponsors may request UYS participants for positions meeting certain criteria: No displacement of employees. No political nor religious activities. No use o1~ ~rearms. ~rhe sponsor Certifies that it i~ prepared to contribute $200 per man-year of service and to provide the necessary supervision and in-service training. Also, the sponsoi~ agree~ to participate rn a one-day. training session before receiving any UYS pa~tièlpâi~t~. Sponsors' requests are open to public review for a period of one week. Where chalThnges are made, the grantee inv~sttgates them and makes ci 4~term1nation. Those position descriptions which successfully pass through this process are entered into a computer listing, where they are immediately accessible to UYS PAGENO="0017" is a re- fail to Jive t~p te lbe te~s ~f the ~reernent, ~ tl~q ~p~~~p$ng listi~; ~~tieiji~pts w~ a~ dis- ~ t~ ~e~p~eT~ aik~ nor11~áli3t jflø ~`1aherty, ~yp~i 1~o ~o*~ning' here to tj~. Yot~ i,and y~n 1~t~ `iven it fine 1eader~ ship. We wejcçx~çt~ . ~ ~ OTTY O~ ~ ~ 4~ ~p~' yøt~, Sep~tor, ~ I am g~ad to se~ ~ ~it~s ~ Bill ~(ooi4Th~d, an~ Cø~re~smau ~ ~i ve~y~ l~pp~ tç~ ~ve t'b~e c~porthi~iity ~b appear before ~our committee whici~t i~ ~rnp1 s~zin~ ~o~ich the z~!eed fcr more focus on t~s p~oI~l~i~is o~ i~eft~pEoymei~t, t1~e need to dQ somethitig about it ~~ator ~t~J~y ~ient~qi~eç1 some a1a~rmi~g stt4isf~s in his open- in~g st~eme$ l~ lQymentIpre~ amopg the yottth a~re running ai~y'~er~ frQ~ t1 pe~eetxt up ~) 4Q p~1~ent in the &t~e of blao1~s And the 1~apt I hea~l it was son~thing l~ke over ~O percent for om~ white teenagers an~ close to 40 pdrce~it for a b~ac1eteenage~s ii~ my area. That m~yya~y from time tp time in aceordance with jobs. But the scope of `Lhê prabl~in i~s on~ bb$ p~r3~ps bog~les ~the mindi~ of the C9ug~p~ex~. aTlcl ~he Senato~s. But if ydu ai~e~thei~ i~i the~eity ~where ~e ~a~t 4ber~ of youn~g people unemployed, and having very J1ittle hope for e 1~ymer~t when they go throu~lt s~hoo1, it is very difficult to arLs*Or tO them in a matter~ Of a short period of time wh tl~ey ~h~o~xld s~ta~ in~ school, ~d why they should graduiake from big sch~pl if they se~the~r oth~r~ a~si~te~s un~i~le to get meamu~fnl ei~pl9yjrn~nt. Sp yOu~et the ~1x~ioü~ cirOle ~1. 4roDouts ~ccurrii~g be- cau~e `ti~ don~t ~ee anythi~g~t ti~e end o~a~ hig~h scho~ etac~tion~ in the way of rneaniag~ul~emplo~meiit. Uecau~ of these ~en~es, I atn cei~cer~ned. that for t~o~Jong we have only dwelled 1~9n~ihe surface et1!ec*~ of~ youth uuemploymei~b an~ prescribed costll patent medicines for it~~ cure I ~m c~neerned that for too long ~cr&have failed to take a lIaTdloøk at the~aets And £hat i~ why I think it 4~portarit'that this jn~teeis me$4~g ai4 hea~'i~ig people from all Over the coun$iy,)fr. ~uiuei ~ud ~or~gress~ ma~ñ Young and all the rest. 82-043---77----2 appl!ca~tS in the ai~á: Tt is fromthis~ listing that applicants ~t up interviewa .ahd th ~gre~nient ~roness goes ~vt~n~t1 ~ S*o~u1d theie ~ p~oce~s, it wonT~ b~e ~i4~eessary to union offlcials, to~ p~ of U~$ participants have to b~e made ~es gtve~i di~~ we~ht. Still, guide- 1ine~ The guiding princ1pi~ is the participaut'~w1hiingness t& s~ve. The written ~s and~ respo~sth1lities~ ot both püticipant'~ antI i~o is repeatMky ~a~e .~fo1~ ~ork~ or flegleetful of be giving n e4e~r ~1~n*L of an Osen~é ~QZ tic: PAGENO="0018" 14 I do not think that we can continue to make the assumption that our basic educational and employment institutions are~ sound and all that we need are a few extra programs to supplement them. We have pur- sued this cours~ in the past and have watched supplemental programs become institutionalized in a patchwork of Government activities. I think that times have changed but our institutions have only be- come bigger. Specialization rather than relevance has unfortunately been their emphasis. - Thirty or forty years ago graduating fr9pi sch~ol and being able to get a job that would last until retirement was thought to be very desir- able~-it represeiTteci j~b sec~ity. Today, taking a young peron out of schoOl and standing them before the same lathø ~vith the realization that thi~ is what their life work will be like fôr~the next 25 yc~rs is a shatteii~ig experience. Similarly, when I reflect on my experiences in school and then observe those of my children and their friends; I can see enormous shifts in attitudes and aspirations, and I suppose you have, too. The populations of our cities and their values, their expectations and their needs have changed dramatically over the years in both school and the workpla~e. The question is,~have oi~r educational insti- tutions, employers, and labor organization~ ~dequately recognized and adjusted to these changes? I feel we are spending too much time talking about how to better relate schooling to employment without talking enough about relating both school and work to people-young and oi ci. Certain~ly, this economy still has far too much slack and the recovery has yet to produce an acceptable reduction in unemployment. But if we are ever to have full employment without inflation, the focus of that search must be in developing higher levels of productivity for people who are unemployed or unemployable today. Given the nature of their schooling and the traditional types of jobs currently being offered, it is unlikely that rna~y of our unem- ployed young people can be put to work productively. We then face the prospect of Government potentially subsidizing the employment of young people poorly equipped for work, in jobs unsuited to their expectations. S This is `why our assumptions of sound education ~nd employment institutions must be reexamined. We must ~put our existing resources to better use before, creating flew programs. We must improve what exists before expanding it. We have got to look intensively at the programs we already advocate before we move into new programs. Sure we need new prograrns. But on the level of programs we now have let's take a strong and careful look to see how meaningful they are, and p~rhaps make those meaningful more sO, and discard.the ones that ~ worked or are unworkable. I am ~onvinced that much of the funds needed to get out institu- tions revitalized are already being poured into redundant and obsolete programs. I am also convinced that the costs of hiring younger work- ers-iñ terms of turnover, absenteeism, low productivity, et cetera- have already becom~so great that private employers can easily afford to fund their own effOrts .to. restructure work patterns so that young people can be profitably employed. S PAGENO="0019" . 15 I am also convinced that parents can no longer view schools ~ cus~ todial institutions .`~d leave the education of ~ their children to the "experts." We desp~rat~1y r~eed to restor~ tim participation and in- volvernent of parents in education Schools carrnot be held responsible for children-strong familie~ and a sense of c~mmunity must be red~- covered and reintroduced to the Oducational s~tem. In formulating recommendations for the committee, I recogni~e that it is a great deal harder to talk about ho* to change institutions than it is to propose bright new progr~tms. In many cases the problems young people face in finding and holding jobs are not far removed from those faced by other workers whose dissatisf action ~With work in general is manifested by alcoholism, absenteeism, grievances, and other white and blue collar "blues" syndromes I would like to see more djscussion of the nature of work and the nature of education-where does one begin and the other end, if at all ~ How can work itself be viewed as a long term education~al process, involving both classroom and on-the-job aspects, which will ultimately lead to the attainment of goals jointly established by the employer and the employee? How can work be adapted to the values and aspirations of young people so that we not only ~educate people for iObs, but restructure )obs to fit people ~ How can this be accomplished by private employers so that younger workers can achieve higher productrvity levels and be profitably employed without Goverhment subsidies, which is what we wotlid all shoot:for~in the long run. How can our school systems be better integrated into the fabric of our communities and brought into more direct contttct with parents, employers, and lab~:r organizations? How can the educational process be made more democratic for our young people without completely abandQmng control of our schools at the same time ~ How can we help students develop meaningful goals and give them the tools to design their :OWfl long range prograths to meet them? How can be ieintroduce education to the workpIa~e and vice versa so that workers do not feel trapped in their jobs or fail to ~understand their need for knowledge? How can our strong labor unions participate in improving both the quality of work and education? How can we translate the insights we have gained from innovative Job Corps programs into institutional changes ~ What have we learned from our experiences under CETA that wouM be appreciable? I thmk these are very difficult questions, but in searching for ways to make things better rather than new, we can strike a chord in our society that could inspire people, particularly young people, to re- spond. I feel that students, taxpayers, workers, conSumers, and em- ployers-we are all of them and they are all us-are discouraged with our institutions. Things just don't seem to work and yet they are bigger, more comple; and more costly~ than àer. Young people have always been the vanguard for change High youth unemployment rates are a. symptom of a larg~ problem. We must change and make our systems wørk We must not allow young people to opt out of the community an~l leave the mainstream We must begin to shift the mainstream itseU~to encompas~ them. We PAGENO="0020" 16 . ~, ft . ~*R~*O .. ~ 1~g~b~ satisfied to:b~y peace and.rnor~4~irne. We .canwt live j~ ~twc~ 4~-t)~ ~14~ tired w~Td ~ p1~titu~~ a~tcLinterest gFQi~ip t~d~9j~s , ~d the youx~g, lissatisfied, thsi1h~~~rned world of idleness ~ desw~1~jv~ess. . ~ ~ ~ : ~ ~ consjcl&r: . y ~ Requirem~nth, be b~i ilt ~~i4c~ Fedei~aJ ~c1w~ation~ programs ~o~man- ~3~# g~eat~r ;qpportun~ii;y :1~or. pare~~, empaoyers ~nd l~bor wiion~ to ~ ~,, role ii~t~ p1~njng a~iic1 imp1ei~ntation ofedu*tiopprograrns.. .2. E~pa~4$Qrts to combii~e work and education through eoopera~~ tivducat~n~ and voc~ti~~al j~rOg~ams. 3 v~1~p ~eate~ ~pp~tunitie~ a~id i~ieent~wes fQr employers to lure a id; z~oung workers throug~on-the-job training, job restruc- turing, job sharing, an~ ~tip~ung ~cluca~ion. prog~ms for yoimg worker~. ~. E.~pl~re the possibilityrpf offering iucenti~ves to youth to continue their edu~at&on. ~ Q~EFer employers and un~ons ~he opportunity to develop career ~ ~`i4 ~v~ppx~ei~t pr~ra~me fo~ tl~eir younger workeis and members. ~J~se. ~ t~ ~ ngg~o~ ~t the committee may wish to e~plor~ n~ ~wh~tmg ~ts recommendations Action `s ueeded quiekly to meet the gr~wmg dissatisfaction being caused by high yonth. ~employment arid flook forward to working wth you in meeting this important problem. I know this, that our business leaders, our governmental agencies, ~nda~r larhør people ~in u.y community, all share an equal concern for ~he ~igh unemployment We have now an Economic Development Committeeformed where we are try&rg to work together to nail down t~be probIe~ b~ttet~ so that when we do come before you we can focus on you We don't want to gave you information that we don't feel would be helpful We would like to have a better relationship with Washington, to get removed from it We want to come before commit- tees more. I want to bring our leadership, and perhaps sometime sme qf om' yoiuag~peopie, to~ press this problem to you. .1 ~tin.nk you for having me on thi~ morning to share some of the problems that I have in my city. [`rho prepared statem~iat of Mayor FlahertyfOilows'] P~E?AREDSTMENT 0l~ HON. PETE FTJAHERTY Thank you for the oppoy~unity to discuss the you~b unemployment situation. I feel that forums like this are extremely important if we are t~ g~n an appreciation for the comp1ev~ty of this problem çertaii~4y,~eiceiyone in this room is ~well aware of the alarming rates of unem~ ployment for wQrker~ wmder 2~ years of age particuht~rly a~oug those in this age group who are black ahd living h~ urban areas. The magnitude of these figures alone suggests to n~e that their causes run far deeper than Inst ashortage~of job opportunities for young people. As ~~yor of one of Aiuei~ica~s greatestci~ties, I have, seen the human dislocation and sirtte~ing thi~.t a 40% wpioymeut rate ~~enotes. Esoense of `thene ezperi. ences I am concerned that for ~oo long we havç only dwelled nipon the sui~face effects of youth iulemployxtient and prescribed cQstly patent medicinçs for ~ts cure I am concerned that for too long we have failed to tâI~e a hard lc~ok at the f~c±~. I da n~i~ t1~1~ that we can continue, to make the assumpti~n that our basic educ~tioj~l ~ emplQymen~ instlflltlQmIS are sou~ and all that `we used are a fewexti~a nró~rams to suWiement them. We have ~nrsued this coi~irsein the past PAGENO="0021" 17 an~ have *at&~1ied ~u~~mënt~1 p~i~i~ ~M~birte s~i~utfoii~1i~M h~tO &~è~I~1~ ~ work ~f government activities. ~ ~ ~ ~ I tbttik that tith~s h~1e Ch~1ft~d but otit ttistftnt~ôt~s 1~a~e only be~om~ b1~er ~S~ecialiiat1on ~ ra~W~ 1~J&a~ rb1~tht~e~ IÜt~ fb~Wn~t~1y been tii~ir e~p~h~t~is. Thirty or forty yea~ ago graduating from school and being áb~ie to g~t ii ~b that * w~U1~d 1~i~t until fetirenient ~v~is thOu~ht to be ~ri d~s{thMe-1t r~pi~e- s~nted job security. Tóflay, ták1n~ a young person otit ~f ~hôb1 Emd ~taiiding `th~em'b~fore that s i~the with ~iie ~eali~atloii th~l `This' is `*h~t their wor1~ life will be like fQr the z~ext twepty-five, years ,is a attering experlepc~. Simflarly, wbé~ I r~ect Oh ni~r ee~ièn~e~ s~bOc~1 thid tbe~n obsè~rM thóse of my ~hild±én ~LI~d .i~Ztóir frie~id~, I chu see eno~rn03zs shifts "in ~tttitudes and aspiratious. , The jnlátiOrhs of em' dfl~S' ~,nd their vahiès, their e*pe~tatiOnS and their needs have changed ~*z~iaticailY ~ye,r the year~ In 1~oth school atid tli~ Wqvk~ phice. I~ave (hr edti~t~'Ohial. ln~tftjitions, em~b~e*~ and labor ~rga~1z~ttofls adequately recog~nized ~ând tutju~ted to `theSe ehai1~s? I feel we are ~ hO~ to better r~iaté schooling to em relating both sâhGoia~nd ~vo~k to people- ` ` ` Cèrtain~y, this far tdo, mw~ti s'ia~It `afl~ the re~o~ery has vet to hi nnenlblOymtht Etit I~! *e ate ever `to ~have' `the ~öc~f t1~*t S~á~k~Ii muM be hi peo~lè u~Iho ate unetnIh~e4 Or Un~ the tridttional tf~f~ ~f ~dbs ~tir- of óui~ , etn~lôyOtly,oung p~ople ~th~ à~ect of `go t4~uerht' jhoteñ- in *~$~o~1ti ~po~rl~ eq~ippeU fot' work, This is why our assumptions of sou~xid ~~ib~' ~ plo~riiept' i1~sti~i~ tions must be re~examin~, ~,, ` ` ` " `` We mu~t ~ti~ ~u1r ~t1h~ ~~i~bes to bet~é~ ~e before erOhttlng new progrants *e hnuSt imp~o~e wMt 1st~ befo~re th~an&ng it W~ ~ni~st be careful that in advoc In~.pew ~ ~ d~ôhi'~ t~ro~4de the, e~hSe ~or afltw~. Iiw poorly ~uñetionitig ~tructures to e~cdije chahge Public resources are tpo scarce fo~, ~ach evtrá~g~anc~ A~ t)~e mntilcttaI level we have alrea~1v wftnessed the limits O~ go~7&ruhient In FItt~bur~1u how- ever you will find evidence qf how v~~e ~rthnattcatlv~ rai~ed the level Of thu~ttk~ pal services with inuprovements hi pr~çtuetlvt~y At the sah~O tthie a lo'~ter level of taxation ~±~sts foday `th~n ~srlfO~n"I took o~O ~/s ye~e a~. I am convinced that niuch3 pf, the ~fup~ nee4~4' t~ get o,~, Ip~t~tti+1OnS re- `vitalized are a~reáky ~etng ~u~ed tn~O4'edundauu~ and obso1~te ~rog,ams X am also convinced that the c~$~ of hirhig yotinger w~rkers-i~i tø~hiS Of turn over, absenteeism, low `procliiëf4vity, `etc.-have a~re~d?ty çQ~O $0 ki~at that private employers can easily afford t~ fund their own e~rts to restructure work patterns so that young people ä~m~b~e profitably emp'oyed I am also convinced that parents can no loMér view,,~eb'obls as s~odt~l institutions and leave ~the education. of their ehiildi~en ~o ~he "experts". We desperately tiOed to restore the ` ~ti~~i~tion atid ih~rOI~ethOh1t of pai~erits In education.' ~cho'ols ~annnt be held responsible for cbildu~en-~-Stroi* fahuilies and a sense of community mtist b~redis~overed and reintroduced to the educational `system. ` In fOrmulating rec~th~O~fidati'ohs for the C.OmMttte~ ~ that it Is a groat deal har~1e~r to tal~k abOut ho* tO cbthige thtitItti~tIOns'than It Is to propose bright new programs. In ma~ny' cues the problems `y~htig people faëe In.~fI'nding and holding jobs are not far removed from those faced by other workers whose dissatisfaction with work in general is manifested by ,alcoholi~m, Sbsen~teehsn't, grie*rañce~ and othe~ Wbite and blue é~oll~r blues' syii1fr~thes I would like to ~ée' ñid~e t14~i~*ibn ~f,lIi~ ihatui~ `4f Wo~k ~ti~&tle4h'~tnre of edneation~-where does ofle begin and the other end, if'al all?. HoW' cab work. it~éif'~b~ vI~wèd n~ ~ jOti~tterM `edutè~tIoii~l ~irocess, hi~ol~1ng., both classroom and on-the-job aspects, which will ultimately lead to the attain- ment of goal's `jointly o'st~tblisht~l by the `ehiplo$r artd tile employee? Row can work be ad4upteul `td the values ~Lnu1 as~atiOu~ of.. young peonle so that we not Only educate' people for jobs, `butt restr~e,~ire jobs to fit'peopl~,? How ~an this be accomplished by private employers so that younger workers cah `." PAGENO="0022" 18 achieve higher productivity levels and be profitably employed without government subsidies? flow can o~r school systems be better integrated into the fabric of our corn- muilltles and brought into more direct: contact with parents, employers, and labor organizations? flow can the educational process be made more democratic for our young people without completely abandoning control of our schools at the same time'? How can we help student~develop meaningful goals and give them the tools to design their own long-range'~rograms to meet them? `How can. we reintroduce edneation to the. workplace and vice versa so that workers do not feel trapped in their jobs or fail to understand their need for knowledge? How can our strong labor unions participate in 1m.p~oving both the quality of work. and. education? .. flow can we translate the insights we have gained from innovative Job Corps Programs into institutional changes.? What have we learned from our experiences under CETAthat would be applicable? . I.:thinl~. these are very difficult questions, but, in searching for ways to make things better rather than new, we can strike a èbord in our, society that could Inspire people to respond. I feel that students,. taxpayers, workers, consumers, and employers-we are all of them and they are all us-are discouraged with our institutiofls Things just don t seem to work and yet they are bigger more corn plex, and more costly than ever. Young. people have always been the vanguard for change. High youth unemployment rates are a symptom of a larger problem. We must change and make our systems. work, We must not allow young people to opt out of the community and leave the mainstreám.~ We must begin to. shift the mainstream itself to encompass them We can no longer be satisfied to buy peace and ~nore time. We cannot live in two worlds-the old, tired world of .,~;platitudes and interest group trade-offs; and theyoung, dissatisfied, disillusioned ~~rld of idleness and destructiveness. . , I would suggest the Committee consider: (1) Requirements be built into federal education programs to mandate greater opportunity for parents employers and laboi~ unions to have a role in the planning and' Implementatioli of education programs. (2) Expand efforts to combine work ~ud ed~cat~on through cooperative edu- cational and vocational programs. (3) Develop greater opportunities and. incentives' for employers to hire and train young workers through on-the-job training, job restructuring, job sharing, and continuing education programs for young workers. `(4') Explore ti~e. possibility of offering, incentives to youth to continue their education. (5) Offer employers and unions the ,opportunity to develop career planning and development programs ~or their yotuiger workers and members. These. are but a few suggestions that `the Committee may wish to explore In' formulating its recommendations. Action is needed, quickly to meet the growing dissatisfaction being caused by high youth unemployment and I look forward to working with you `in meeting this lmpàrtaut problem. Chairman }timàmirx. Thank you very much, Mayor Flaherty. We ~il:comè b~ick to you. I have a number of questions to'pose to you. Mr. Samuel, we welcome you.'And I beliei~e you `are here represent- ing as well my own friend, Murray Finley~ who is chairman of the National ~mmittee for Full Employment,'and president of the Amal- gam&~ed Clothing and Textile Workers Union. STATEMENT OP HOWARD D SAMUEL, SECRETARY, NATIONAL COM MIT~EE'ON PULL EMPLOYMENT, AND VICE PRESIDENT, AMAL. GAMATED CLOTHING AND TEXTILE WORKERS UNION, APL-~dIO Mr. SAMUEL. Senators and members of the committee, you were hopeful that Mr. Finley could be here, as I was. He has been involved in the last 48 hours almost continuously, and before that for a `couple PAGENO="0023" of wéks, in negotiations invOl~ig `ab~iit' ~ ~fbttr rn~b~s~ The negotiations endM `sometime earlier this morni~ig, and I think he is sleeping the sleep of the just. ~A~nd there was no time in the schedule, unfortuflately, for him to p~trticipate in this h~ar~ng. Late last right in our negotiations ~ found we were going down to the wire. So I am taking his piac~. And I hopefully will do a good )ôb of reflecting his opinions, since I ~erire as a vice president ~f the Amalgamated Cloth- ing and Textile Workers Union of whioh he is the~president, and as the secret~$r of >I~~ National Committee on Full Employment of whãch hscochttirth~n. T want to tre~m~p~epared `statement in summary rn the interest of brevity, and ai~~ ~espouding to the chairman's remarks and some of the remarks of the earlier witne~es. rirst, let me comment on just a couple of statistics of' th~ phenom- enon which ~-t'v~ are~ talking about today. One is the phenomenon o~ black yoi~th ttñemplo~ment. The problem of youth unemploy- ment is a very serious one. There is no q~tiestion that the problem of black youth unemployment is much more seriou~There is almost a quantum di~erenc~. And one of `tl~ thiiigs I think we have got to face is that blaclt youth unemployment has continued to climb. in the last 10 years to 20 years, despite the ups and downs in the general employment level. White youth unemployment does respond to the general employment level. Black youth unemploymei~ re- centi~ `has i~ot,' it has sii*phy kep~ climbing even in the last few rnox~hswIen the general ethpioyment leirel has gone down slightiy. I think also we should note a' couple ~f other characteristics as tb youq.: unemployment generally. * I think it is ,a common b~hief~ that the i~jor r~ason for youth unemployment is~that young pCople are fo~*er skipping around ~rom job to job, or from job to~ school and. back again, testing the *atter of the job market, and'øftOn' not finding an~rthing~ satisfactOry at all. There have beew statistics that show' that, about. 40 percent of the unemployment of youti~ during~the depth `~f the 1975 recessioñ:~as. caused~ by in~roluutary loss of sobs. In other wor~, these were ~*~npig people wha had iobs, presumably~ hiked ~them, `~iid lost their job~ `because of the recessio~. The other factor, which I suppose is not Co surpris~ng either; `is that I ~think we. sometimes don't' take into adequate cOnsideration the elrect of education çn the unemployment' rates. * ` In' the young'. adult group, during the 1975 period, the second quarter, unemployment for college grãduat~s in this age group, 2~ * to 24, was ~.3 per'e~nt, acti~ally, less than the general unempioy~nent * . level. FOr high'~school graduates it was 15.6 percent, considerably higher, For high school dropouts `it was 25~9 percent. So there doesn't seem to be much'~question that the levelof education is a major factor i~i the question of youth unemployment. * In response' ~b these i~sues;' and v*rious, others which have be5n raised, let me suggest a few eriteri~i :we should keep in mind when ~re * ~c~me to trying to find sothtions. ,~ ., * In the first place, it' is `obvioua that the problem will not' and `can riot be solved unless and until the ~Nation can solve the problem of ~nemployment generally. It is not' possible~ t~ create jobs for tbos~ least educated, those most disadvantaged, ~ adequate ex- * * 0 PAGENO="0024" ~i~tft~ ~ ~h~ñ miiions~fththets with more educatk~ and ti~3ñ~c~ ~d ~141I~ ar~ a1~o ühemp1o~d. A~ptoaohinpj a fulL ~ pW~i~it ~bi~i~iy~ will n~ot softe all of tb~ youth ~ui~ernp1oyment p1E~flt, 1*ii *it~wnt ~ re~8Ynable: PT) of fu1i~n~ip1oy- th~, ~he~t~ ~q to~ solve it. We found this out in ~the 1960's and 1~9~tO's, whe~n ide~pit~ speHi*g billions of. dol1ai~ on manpower tra~ing~ ~; ii~4~ ~nl1 a~ ii~od~s~ dent in unempioymen~t~ levels for the di~ad tag~t~ inelu~l1n* y~outh~ Thro~*i~ ~ii~oney at some ptob1em~, contrary t~ome Q1~]~nt com~ i~entators, dçes help solve them, but sp~nding.rnon~4io~tra4rn peo~ple *h~?h tlM~e~tt~ iiYa~c~q1uLth ~jbbz fair t}ieth~ ~tr t~ ~j~he traini~ng period!~is a ±3c1~~ tttiot~xfortram~ees abd t~a~ite~lilie And ~may I add, Mr. Chairman, ~ hope t~hat*'b~ever: the com~ ~i%teb~J~ to c~i~ild~r in th~ way of a solution to ~J~pr~ble~that W~t~ t bid th~ phe~thmenbn w~hicl~ som& opJ~ha~ve b~ii ealii~g the' h~óTdiffg patt~rn phenomenon, keeping young ~eopls aged 1$, fl, o~ ~18, w~iatéver ~he ~t~rtü~g age may b~e, in som~ sort ~óccupa~4i~n~ fot~ 3~Or 4 years,~.1ioping that~the procOs~of ag~ will ta~e ~arre of the .p~ble~i,~ and Then r~leasing th~n1 at ager ~ ~ 22~ th~r rpnly~Mll ha*1ng~ heeir leafraking or rehabiltn~ting btiildings in a~r elem~itary w~ty, ~tn~l sblortfrand so on'~' A jo~b prograni for youth must ii*O~ve ~ti~ th~. tri~*sfer of sOme kindof skii~ E~ that. when th~ey leave the job p~ogra~ they will be able toMter th~ j~b marl~et S~c'b~nd, instead otlooking for ways ~trteenag~rs ~~to~the~rk ~ ~hould spend mere ~ n'~y looking fpr~wrays t~~.get ti~rn báèk to s~hodh Some youfrgpeople ~qp out beoai~e~the~ have to~ ~ippc~$t their' families. Some kind ~ffamily suppoi4 shoui~1 be ci~~i~&l ttti~nable them to continue their edumtion 1~o the umat~evel t~*~y can hairdle. Som~'drc~p out bec~use of~bQredom, finding that~' d~4L~ói~al ~ meet th~irrieeds~1~ere should' be ~ to' ~ho~i systsm~to encourage t~em~ to~devise alte~rnat~' ~4at~al A~ the present time we~ a~re ~`pending most of our money in t~ fieid~. t~ pro'vi~e tem~por~ry low skill j'obsr~he money i~ aq~ua]4y~ i~tcon* ~aintenan~c~Trainingrfom~ real j&bs,'n&~st depend first ~ an ec~nomy whith h'as j~b~ to offer,, and ~eeouci on~real,edi~eatian~ .~hich ,p~$t~es th~ ~ which job training ean~ refine into marketable' skills. " , ` , , ~ Finally, there is the question of wage leve~is. A number of proposals h*ve su'rfaced. whkh' would cialm to ~ive~ tbe youth' job problem by putting~'yonng people ~to'work `at~ low ges-an$~ing; it seems, to~ wedge them into' the labor force. I have a number O&~bjeetious to this tbeory. .. , . ` "~Ffrst, there:is no proof that lower wages wil1~havO~tnuch~effect on, teenager,pnployment. Certain~y;the'.opposite ha~ not had any eff~c~ Pi~thunably if a lowe~ minimnm ~ag'e would be helpful, it ~hould1 ~,` follow that' ~ high minimum wag~ `is damaging.' But `&n~h i~, not the~ case. A Lab~r Department. study in 197O~ ~onclirded, after studyi~ng the effecthof~e~eral rises in the minimum ,wag~,thatr~ ` * ~* * It was:dilhi~cult to pro1ve'~ny `direct relationship between mini~. mith~wages am~d employment e~ts~on youi~g workers~, ,, ` Lo*ei~ ~ct~ges for 7ou~!woi~id~n@t ~reate additio ~ `b~it coi~T~ lead to displacement of older workers, largely heads of families. And PAGENO="0025" %1M4 W o;ip w~ay ~ ~4~e S~Mern .. ~ you$h wz~*aei- 1~-. ~ ~ ~ ~ ~ : ~ ~ ` ~ ~ : ~ ~ * ~ ~Fk~*~4cbLPi~ ~ac~ ~ ~q1pw ~odnptis4t~y, t?~fij~l~9~T, I4~$~ttSSi1 to wflflci;~ WiW~ ~ ~nr uS, P~QY~ct1*Th PQ 4q~$~49 ~rapN1:1~e 4IWAiP$PA13 ,j*~a4~aiei~ate pe41ffi~3t941 ~ awN'~ *n ~ ~9a~N~3êt$gftfl1 in 4k4cP47,'nc4 ~ etw ~ri~4 iiY*MqcL@P $sa4vazflg~4 twQrJ~eJs have come into the labor force. It is b~p~g ~ ~i4 ~e4ay 4be~t ilaagal alien&-. ~ ~ ~ ` . . . they ax'e ~ Aw~*~4 ~w9*e1! wouldn't take anyway, ~ It was probably said tlSng .ach earit~t wS~e o~ legaL inigrai4on ~0iz~g ~c~c ~ 4p~1 k~drn#MevM~*-trø. 4 ~e~4y s~ppJy e:t ohsiap 1abot~n1pftntj4bs wfl ZWjUfled th~ef~nietiir~atian to~ ~tnve for produotivit~4 sot~4entsv I saw z~t iir~rseD ~ 1few years ai~o ~iu a g cut fp4fl ~p., gong ~qpg, ~yh,er~ 1the $zgtchjne~ry w~ sq~~4 ffitl4 j4 pg~t i~ep~p~ T~I1~ pwzpp t~44 mp it ~v~s ~qt wq$h it to kmppove ~s gsfljfl$teiy J~eca~is~ 4;laAe 3abcw ~~as ~o~oii'np~ In theZnjjed *sS, that is a ~red?a br industrial disaster and economic chaos ~r~j~n o4e~ r~~~g~is QT Ofl3OsS s~4j~y )pw wago ley~1s ~or y~c~t*, ~wiy ~ peo~~ ax~ ~kige~ 4q b~tAj~ ~u~~prt families. Pay~ mg4them 2na$Lequste,wsges sitn$y a44 t& `the it~tfa~re burden--and nothing is mc~re~li4istiSar~ tl*n u~1*tGeit*nnSt ~mq~sy to pa~r p~pJe v$~t ~ }P,ç4p~ ~ ~oQ,cls aria irV?~Qes pay~c~ w4'$~$ pprqrahl1y ?S?~W ~ 4,~sp4upj people into ~jabs. The 6aMs~qt?oUbk unempIo~*$t,~s4 has been pointed Out iya éo~biiMi~ri~óf `laCk~Ø experit$~?~ ohdeqn~~ti trainih~, smI er~ahin/~t4on ~ry~g~ ~p ~pti~ ye~u~g ~j4~ple uito the iabcr torce on th,~kas~ 0 W~ rp~j~zq~Mtrly ~~~çku4 ineSug the otlw~ prob- Inns-would bp eounterØôduetive toi~ig p~eople a~s not going to flqók to the lftkor mj~rJ~efln seaz*&~i of iW-ivpte, ]~ow skill, *ad end m c~fr `tv*h 4eu~, ~ 4~e~u~e ~$ se~f esteem antI ~tz~tvre hop~ aiW ~4hcse. ±aqtqrs arm'*o~4 cotpp~enta of low-wage jobs. Finaily, let ire says wordt about ~iy oi~tçl*str~, 4e plotl~ng~ ~p~l te~ç4e ij~i~$~y, 4jt~ougl~ rm Øur c paâe we ten&Pto denigr4Pi~ by c~Jhpg ~t ~e p~g rn4nstry, ~tuØly th~ mdi~sfry p~bvides mope jobs than any ,otber aamubactrntig ~sector iii the~ce4imtry, two and a half million jobs Our mdustry, like other indus$ies, has been shat$y tØ~cted J±~ 1o~V-wage imp*4s t'%r indn~try, lite terttt~n other nidris- t~s, ~op~e ~f Ae ya~~ nM~41er 0 )MI?% we 1p the ),~kRr ~a~et, ha a nnj~aee and a ~growing so4trce of jobs for yowig peopjè i4thout ver~iabarate skills. Most ;of the j$s ~n oUr industry hav&p4aP~4y losLv O~try leyoff plçrjl re~uitem~nts, ~,nd that is true not opiy~qf n4ustcy$k~tjshoes, piit'ci$, anc!t tsumber of other4wids of industries. These are the industries which typ $~l1yj,are first affecte4 bripitpn$ from davsloping~countriek Qp,b wo$4tp?it that a nattoti which i~coneerned about the lack of ~r yo g,Øp~le with ixi~4e4UatrUng$wo!=4 treat industries sutas ours with, t.eb4Qr ~Sjj~g;car~. flaj~is~pt th~ fact, It wa*~$ th~e tot when the oaagresstensideredstha t$die bill of 19U~ and it%as not been the fact, I don't think, generalljrt~êkki5g4 So one ot ;:~ ~. .. ~. PAGENO="0026" 22 the things I suggested to the Senators and the Congressmen is that that kind of consideration be given to industries such as ours which have the opportunity to provide jobs for young peop'e without skills, and we do provide )obs now not oniy to young people but to extraordi- nai~y numbers of women and to n*iembers of ~ninority groups, much larger than;~nost industries, because these ki~ds of jobs are particu~ larly valuable to our country, and they should not be sacrificed,'I don't think, on the altar of free trade. Thank you. [The prepared statement of Mr. Samuel follows:] PREPARED ST~EMENT OF HOWARD D. SAMUEL My name is Howard D. Samuel, and I am testifying today in beh~lf of Murray ~ Finley~ co-chairperson of the National Committee on Full Employ- ment a~d the Full. Employment A~ction Council, and president of the Amal-~ gamatod Clothing and Textile Workers Union, AFIq-CI0. I am hopeful I can represent Mr. Finley responsibly and a~euiately, since I am secretary of the National Committee on Full Employment as well as a 4ce president of ACTWU. For the record, may I take a ~noment to describe th5'National Committee on Full Employment. It is a voluntary organization representing a number of people and organizations in such fields as labor and business, civil rights and religion, academia and public service, who are committed to the principle that full employment is a r~umber one domestjc priority of this nation. The Co~iniit- tue, during its two and a half years of existence, h&s sponsored Several con- ferences, published educational materials, promoted research, and worked closely with a myriad other groups to develop a greater awareness of the need f~r a full employment economy. The Full Employment Actiop O~uncil shares th~e same ~ dOi~sh1~5 and many Of th~ same Board inetabers, but is a legislative actioi~ grohp~~and has dedicated itself to nupporting the Humphrey~Hawkths Full Employment and Balanced Growth Act of 1976, as well as other measures which would bring a full em- ployment economy closer to reality. Let mO also take a moment to describe the Amalgamated Clothing and Textile Workers Union, since both Mr. Finl~r and I are o~cel's of the union and this iestimony unavoidably reflects the policies establish~d by the union awl by the ~FL-OIO with which we are affiliated. The ACTWU was formed just three months ago through the iperger of the Amalgamated Clothing Workers of America; founded in 1~14, and the Textile Workers Union of America, `f~unded in j9371~ Both uniOns had been close his- torically and both share a common desire to improve the conditions of our membership as well as the qiiality~ of life in Our communities. Our ñienibership of 510,000 work in a variety of industries In the men's and boys' apparel and the textj~l~ fields. p~ese industri~s, it is useful to note, employ an exceptionally large number of wo~en and members of minority groups, many of whom can successfully obtain jobs in our industry with minimal entry-level skills. This fact has some relevance to the subject under discussion today. In respect to the problem of unemployment among young people, llrst let us look: at the scope of the problem. In summary, at the peak of the current period of general unemployment, which occurred during the second quarter of 1975, when the general unemployment rate was 8.9 percent, teen-age unemployment (16-19) was 20.5 percent, and unemployment among young adults (20-24) was. 14.1 iercent. Since unemployment in the age groups above 24 was only 6.5 percent, it Is clear that the employment levels of the first eight years of working life caused a disproportionate amount of the unemployizietit in the entire working population. All of these figures, incidentally, come from the standard BLS repQxt~, and do not account for the large numbers of people who have dropped out of the labor force entirely-the so-called discouraged worker-or: those who are work- ing part-time but who, if a full-time job were available, would ~Ork full-time. If these numbers were included for the age group 16-24, the total unemploy- ment rate, instead of 17.5 percent would have been closer to 25 percent during the second quarter of 1975. PAGENO="0027" 23 We are all aware that in analyzbig uuemp1~QymeTt1~ among young peO1Ple~ a disproportionate burden Is felt by members of minority groups~ During the same time period, wb~n: teeti-agers suffer~ed a 20.5 percent uuemployment rate, black teen-agers were at a 37.8 pei~eer~t leveL When young adults were at ~ 14.1 percent rate, black young adults were at a 22.7 percent~ rate. The phenomenon'Of black youth unemployment has continued to rise over the years, and continues to this very day, ~e~pite some modest aM ~çliaps 1ein~ porary improvement since the low point in i~75. Here are the figures UNEMPLOYMENT AMONG TEENAGERS ~ percenti `B'acks Whites Year: `~ 15~8 10.3 1955 Q6,2 30.2 itS 40.3 16.1 It would be us~ful to note a couple of other characteriStics of yOuth unem~~lOy- ment. It is common belief that the major reason for youth unemplO3rrneflt Is that young people arO forever skipping around from job to job, or frotn ~1QIi to school and back again, testing the water of the job market B~t Herbert Bienstock, Regional Commissioner ~ôf Labor Statistics (Middle Atlantic Region), pOlnt9~ oiit that about 40 percent of the ~pemployment of youth was caused b~ involuntary loss of job, almost doubling between 1973 and the recession of 1975. The other factor, not so surprising, Is the effect o~ ecfucation on unempioym'eZ~t rates. In the yOung adult group (20-24),, in the 1~i75 period, t~~employi1tent for college graduates was 6.3 percent, for high school graduates, 15.6 percent, and for high school drop-outs; 25.9 percent. These facts suggest certain basic principles which shotild be eStabl1sb~d as criteria prior to devisii~g programs to improve employment rates among yoü!~ig people. In the first place, it Is obvious that the problem will not and cannot be solved unless and until the nation can ~olve the problem of unemployment generally. 1t Is not possible to create jobs for those `least educated, those moat disadvantt~ged, those without adequate experience and skills, when millions of others with more education and experience and' skills are' also unempltoyed. Approaching a full employment economy will not solve all of, the youtit unemployment~ problem, `but `without `a reasonable approximation o1~ full emplo~7ment, there Is tIQ Way to solve it. We found this out in the 1960s and 1970s, when despite spendln~ billiotis of dollars on manpower training, we made ony a modest dent in unemploym~flt levels for the disadvantaged, Including youth. Throwing money at some prob~ lems, contrary to some current commentators, does help solve them, but spending money to train people when there are inadequate jobs for them at the end of the training period is a recipe for frustration for trainees and trainers alike, Second, instead of looking for ways to get teenagers into the work force, we should spend more time and money looking ~or ways to get them back to ~cbool. Some young people drop oi~ct because they have to support their families, Some kind of family support should be devised to enable the~n to cont1~ue their educa- * tion to the ultimate level they can handle. Some droii out bec~use of boredom, finding that traditional schooling doesn't meet their needs. There should be more help to school systems to encourage them~to devise alternate eduqatlonal schemes. At the present time we are spending most of our mo~aey In this field to provide temporary, low-skill jobs. The money Is actually Income maintenance. Training,. for real jobs, must depend first on an economy whieb has jobs to offer, and secondly on' real education, which provides the ~needed foundation which ~job training can refine into marketable skifls. Third, let me refer again to our own Industry, textile-apparel. In the manu~ facturing field, we offer more jobs than any other industry, and as I noted before,~ most of theta requirS low-entry level skills. One would think that the governnierit would regard these job opportunities-almost 21/2 mIllion all tOld-as valuable ammunition in the war on youth unemployment, and would treaV these industries PAGENO="0028" 24 With tender, 1o.v1i~ care. Unfortunately, such is not the case. The industry h~ts been steu~cIi1y ,1os~iig production and jobs, largely because of rising levels of b~ipQrts. Ou~ government ha,~ had enough regard for these jobs to ii~i ye in- stituted, ~t ni~nber of years ago, a program of international negotiations to govern impoy~s o textiles and apparel. But over the years the level o~ pro- t~tion affoideçl 1~hese jobs has slowly eroded, until today the ceilings imposed are so hig~ that they have only modest effect. There are other industries like ours, such as sijoes, handbags, consumer electronics, furniture and others, ~s hich have suffered similar job losses. The young person walking along the street with a portable radio from Ilon~ Kong dangling from his hand is not working because so many jobs in the elec- tronics industry have been exported. Is ~Lt worth it-to him, or to the nation? Pinally, there is the questi.oa .of wage levels. A number of proposals have ~urZaced w~i~ would claim to solve the youth job problem by putting young people to work at low wagqs-anything, it seems, to wedge them into the labor force. I have a number of objections to this theory. First, there is no proof that lower wages will have much effect on teen-age e~P1oymeflt. ~Oertain1y the opposite has not had any effect. Presumably if a i~Wer minimum wage would be helpful, it should follow that a high minimum wage is damaging. But such Is not the case. A Labor lJopartment study in 1970 concluded, after studying the effects of several rises in the minimum wage, that ~~it was ~li~1cult to prove any direct relationship between minimum wages and e~ployute~ects o,a yopng workers." l~ower ws~ges for youth would not create additional jobs, but could lead to die- piaosment ~f older workers, i~rgeiy heads of families. And that is one way we s~o~4, ~ipt sqive the pgo~lem of youth uncn4ployment. ~irthsqmW~e, low wage jobs are an invitation to low productFvlty, to in- efficiency, an~ eve,ntuallj even ~o inflation. With low wage jobs, employers have no incentive to r~tiQnali~e ine~ficIent jobs and generate productivity gains. We have sçez~ this occur again and agai~ in our history, each time a new wave of unpki~ed. or disadvantaged worliers have come into the labor force. It's being said today about illegal aliens: "they are only taking jobs which American work- ers wouldn't take anyway." It was probably said during each earlier wave of le~~i n4gr~tion going back more than 100 years. And it has never been true. A ready supply of "cheap" labor cheapens jobs and removes the motivation to etrJ~v,e for pyQductivi~y improvements. I ~aw It myself a few years ago in a garment facthry in Hong Kong, where the machinery was antiquated and in p~iQX repair. The .owner 1~old me it was not worth it to improve his machinery he apse the labor was ~o cheap. In the ~Jnited Slates, that's a recipe for industrial disaster and economic chaos. There are other reasons for opposing spe~1ally low wage levels for youth. Mafly young peqple are obliged to help support their families. Paying them ing~equate wages simply adds to the welfare burden-and nothing is more ft~~~tionary than using government money to pay, people without any corre- sponding increase in goOds and services. Finally, psying low wages probably won't even attract young people into jobs. The cau,~e of yputh unemployment, as ha~ been pointed out, is a combination of lack of experI~euce, lack of a~eqnate training, and discrimination. Trying to exttlce young people into the labor force on the basis of low-wages-particu- larly without meeting the other problems-would be counter-productive. Young p,epple are not g.Qing to fl~ck to the labpr market In `search of low-wage, low- s,~ijl, dead-end jobs. The jobs have to carry with them some measure af self- e~teem and futV~~ hope, a~nd thQse factors are not components of low-wage jobs. Chairman HUMPHREY. Thank you very mueh, Mr, Samuel. - Senator Py. Could I just comment. Let me make this obser- va,tion. I certainly woleome both of you here. We tried in the Armed Services to use cheap labor with the 4raft, and we fo~incl the labor was wasted, it was squandered. `it was iii utilized. When you don't pay for something you don't treat it very well, and I think smre we h~re gone to a voluntary service we have had to he competitlVe in wages, we have had to p~y what people are worth in order to get them, and we then finally used them, not as shoeshine boys or people that pour coffee all the time, but for useful occupations. I think that prm- PAGENO="0029" ~p1e is sE~ weEI~ prov@~ in the A~±~ied. Servic~s t7~at ~ u~det~coi~~id v~1~id~t~s, Mt~ S4i~mu~; tour owzi ~testimthiy a~tt th~ ~r~até ~cto~ Thnik TOiL ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Ch~nrnn1an Thri~iip*~iT ~h~nk you very naudI~, ~ertt~to~ Pe~rc~ Senat~or Pe1D~y is~;f3~11ü~g ~Th ~r two 01' ~th~ree bE~ u~todfl~y., ~Va~ttÔ th~nk~ hvn fw eomdntg by wiad gorng bacic to tb~e 1~ oreigli ~e1~t~O~S CGmm~btèe~ ~im ~ p~edt~ b~ tii~re, too~ PhTS is one oif tber~w~i~1erfti1 things abotit i~b~ Sei~t~e, y~u ~Pé~ stij~ posed to be five different places' at the samé'$i~e i~' three a~eht buildings. It is a bea ~tIf~il~e~p& e~ic~4f yon c~p~d it. Now, Congressman M~o~rheai ~ have ~ux ñ~o~here. ~id I waflt yon t&go aihet~d~ Re~es~m1~atrve M~~onrn~&i ~ wouki iiit~ to f1r~t start o~ what r~y~c~1. 1eag~ie A~1~ ~Yo~ii~ said, wh~li seems to n~e to s umatri~ç~ somewhat what bo4thi ~f yø~ ~e~e ~ that i~tha1 thei~ js n4~easy ~ tion frdrn~sdmo~1 to4l~ job *et. I th~k, rnayor~ y~i~ said 1)hat back ~O `~or s~ y~ars, ago whei~ yoT~ finishedliigh ~eh~o~ it was au ~t,~aut~a~tic thai~ ouj~da jOb. T~re was a lfttle pirobucin a3~t o~d~dn't gra~4~iate ~om high sohoq~, but if you had~s~ hi~h ~ehool~ d~p~om~ the ]ob ma~r~et ~s~sui~e ~ yQu. And ye~i 1ea~rl~ has cha~d~i~ Tthi~1~ you ~ou~j ~y t~tye~ b~k in~ iihe' sarne~ tidie fra~n~*~ ~lleg~ ~eg~@ assured you qf `a~eçy good ~Ii~t~ `coiMr j~tb. ~ow ~nt~y~ yotii~ee~t sem~ y~a~ o~ gra~hai* scbOoh S~m~tybe w~ ~h~iuid b binldmg *P1 ut ~ f~rn~ of post.4h~g~~ school pr~gra'm~ On~r co~rnuii4ty collegea~W ~Omethiiig~ b~it I doii't th~ni~ t~ey~e' as e3e~Irly ~o~i?~sed o~rth~' trad~s~hooLr Cain you comMent on that~ Mr. Mø~yôr % A,~nd 1~iet~ I w'il'l eall on Mr~ tSarnlttet Mr. ~ ~ eents~t~ ~* that if a y~nni~stêri~ in~h~gh ~ch~1, and he is~ 1ooking~ forwaM to' a c~lle~a ~ b1ie~ti~iere is~ ~iio~ei i~ centive for him to stay in h~h s~hool ~ ~et li~1n~1!h~t ~an area that I see a natural prôgressio~ to~ Butif a your~gster is liii `high sebo~l a~d i~iot look forwt~rd to~ ~i. ~oll~ge ~ca~reer, thei~ it isa whole new ba~i~airie fb~r 1thi~ a d~iffê~rent~ballgauie. lb i*~ot' as ~.esirthl~ fo~' him te~ look at being a i~th d~iv~r orw~rkht~ln a blast na~e~f6~ the next ~5 ye~s~o~ wabeh~ng t~ cbio~i~ o~i ~ ~ouv~oi~ ~eltJ,~ as it might have been ~5 or 30 years ago forsbina of m~d~Uea~u~ ~ho~d4~d not .go~ on to' scho~1. The~ve1~fact th~t you gc~ Wd'rk in itself wa&an incei~itive. epresentati~e M~UI~AD. Wec~eñ~ember ti~ Great Dep~e~sioi~ a little~ more vi~id1y. Mr. FLAHERTY. Correct. If yot~ were' `able toga a~ j<~b~ that irritseM w~s fine~ ancli j'o~r s~tirit~ *a~ a ~eiy `e~taib'lished thing. No~ I think if you' took a y~oiim~tei~ *nd'put hiiibe~o~ `a lat'h~in th~ihop andsa~, this is yO~ir lif~ work for the ne~ 2~ y~ars., you h~ve `got ai atcad~ job of thi~ instead~ of getting `a desira~bl~ i~esip~nse from 1~ith or h~r; it might bc'a' rather sh'atte~hTg jieriei~r~ for th~oun~stei~. S~ y~u ~t~e talking about two' t'hint~s:*h~u ~on are talkh~tht~ut t~h~ edu~atitwi~ai prbcess~ those that g~o into~ i%4r' ~du~ath~ and~ tbo~ th~t' aren't going to~ ~o on.~ A~n~cl I thi~k w~ ~ tá44~irt~4 iic~tl~ `hi~ tl1~ a~re~ of whether or'not they ave'not goi~ig16 g~o on intO4a hi~ei~edit~ation. There, then~, is' pr~s~rited a~ i~l problem. S~p~os~ that youi~ older brother or sister has gotten a high school diploma arid doesri't have a PAGENO="0030" 26 job,. rand he is now 25~ And it was poiiited Out that 40 percent in the black community and something like 20 percent in the white corn minity are uneiiployed. And in that case the kid looks at it and says, why g:et a diploma? And you get the dropout which becomes a vicious circle If there is no job there is no incentive So maybe the answer lies, in some type of incentive Qther than the.one that was the incentive 2 ears ago: The thought of an incentive 25 years ago, if you were not going to college, was to get a job running a lathe or driving a taxi or whatever Now, I think, the incentive has to be somewhat greater in- centive for a youngst~r.' . .. . I don't know whether that answers your question. "Maybe you see something in there, Howard. Mr SAMUEL I have a few ideas rolling around in my mind One of them was the question which was raised by the mayor regarding s~e way of "bringing the world at work closer to the experience of tI~ `highscliool sthdents, with the various aims of some of these sug- gested programs. I think it has potentialities: of being, useful. I also see that it has potentialities of not being very useful at all. This was first proposed a number of years ago by, the then Commis- si~óner of Edi~icstion;'who devised a fairly elaborate program. And. the sp~ifie exam~1e' which was presented' to use When I was a member of the National Manpower Advisory Committee was taking young people in high school and taking some of their hours which normally would bven to academic work ~nd instead turning them over to the local utility company which services my community, which is New York City-this was a `few ye~rs `ago-for training in the world at work. And' my reflection is that in those particular days and months the local utility company wasn't even doing `a very good jub in providing i~ts `basiQ s~vices to the people of New `York, meaning electric power. Ai~d it seemed to be putting too much of a `burden. on it to also do a ieasonably good training job of young people at the same time What `1~ am sayingds that most companies in America really do not h~WO the capacity to do very much useful training of young people if `the~y wer~ turned over to them ~for a few hours a week.' ~ornehow `I `think .work experience ,should be. made a part' of the high schools. "Bi~t' we have' got to' devise some way of making sure it is useful, not simpi~' a boondoggle or waster of time or' even a means of exploi'ta- ti~n, which it could become'also. ~Representative'~MoouuEAn.' That w~uld be one way of answering Congressman Young's transition .period, to blend the educational period into the job period and theh hopefully-I think you said, mayor, you wanted to continue `the educational program `once the youngster has the job, is that~correct?" Mayor FLAUEiiTY. I think that is right. I think the process `has to be a more continuing one, no longer just geared to the 12th grade. And I `think there has to' be incentives for going on. And the difficulty is whether the `incentive would' be a job, or money, or higher rates for young people, or `some other type of incentive for going on and "im- proving oneself. And' that is an area `that I think everyone has to look at. The 01 bill was a great thing for those who came back from the service. It had a supplement `built; into it. I know it gave me a few bucks in' my~pocket to buy a few things, get some, gas, and maybe even a beer. or two. And that was an incentive for me to go on.' And I think PAGENO="0031" 27 the. work incentives ~pli1d put a ~Eew dollars in a~ yøting. persofl's pooket if h~ .is~ able to work at the ~ time ~ie is g~ing to sehQol. I think `that i~ gorngto b~i~he~answer in t~ `future. , ~ ~ ` * College ~ducat'~onis so~'high that~[ think tha~t paost ypi~ngsters would hav~ to do ~t ~n more~tha~n 4 y~s~as niost of ~ c1i~d. We are gOing `to have' ~o go `ahead and do it in a 5- o~ 6-year period ~nd'~worlç part time or even~full t~rne while going to s~hooL. I think that is in the futw~e, too. t thInk we can s~çe. more ~f that coming ~tJ~au we have seen in the past. ` : * * ,~,, ~` * Repre~entative MOqaEEAD. Mayor, you, clescribed~the lack of incen- tive to ~get a job m~ining a lath~or~ working in a blest. furnace,' and he doesn't want to think he `is going to do that `for'the rest of his life. And M~ $amu4~on the. Last pá~e"~f his pre~a~e~t ~tatenient talked about dead end jobs It seems ~o me that ~t i~loolcing forward ~to so~nethrng better that inspires people to take on tl*t~f1rst job which, like most entering jobs, whether you are a lawyer ox an apprentice bricklayer,' isn't a~ inspiring as ?bat you l~ope to ,wo1~i~ up to. And~e ~talke.d a 4ittie~ bit abog~. the di~~' `the Volunteer Army, and I remember iZi the Nayy there ~was always an opportunity to take an examination t~ go from a tbara cJa~qs pett~ ofllçer to a second class So you weren't at ~a dead end. job a~ a ~amai~, So~pe people were will~ ing to acce~j £hat, 16ut there wastha4~ Op~ortunity~ It se~tns to n~ that if we Md ~sy~tem like that ydii ~v9~ld. get iuo4e ~eople ~ilUng to take a job as an eut~ring wedge, gtve tb~rq a feelu~g~tl1s~t it is merely an entering wedge. ` , ` ` *, . Mr. SAxt~i~ Coti~1d'I OOintnelTlt, Cd men. I think we h~e got to realize,~hat t~i~r~re difFerent ~e~n~ti~s amqng is , d~ad end jobs 1 th~1ik that ~$~iD like I mentiç4M before ~ a sho~phi~ie boy, thatisad~4end job. * `~ ` ChairmEIrmx~xxnEY ~ot neoessaiil~y I shined shoes~ ~y first iob at th~iniversit~ was cleaning toilel~s I never thought *~uc1~about it I needed money I really have to take e~ceptxon to Some of this And I feel sttong~y about the i~c~u~res and the p~y I know how difficult it is to get somebody who ~wants to ~Io these things now I didn't feel it hurt me a bit As a matter~ of h~ct, I waa the caretaker of a complex of four b~ie~. My 1vife:~erubkd the ~f1oors; r'tbok care of the basemei~ ai~id the stoi in windd~s ~Mle I was going to the unrtrersity And I w~Ø 27 years old And I alk woi~k4~u. a drugstore I don't th~ink it thirt me a bit T çhou~ht it~ w~s damned good for r~ie,as a matter of. fact. , `~ ; *~ * *` Mr S~trci4 I afl~ not saying that some people might nOt use the job of shining shoe~ as a worthwhile job ezp~Hex~ce Chairman IIimu?thu~r It wasn't that it was a worthwhile experi~. ence, it wa~ inst th~t I needed money and there was a law against steajft~i?o'it Mr ~A~ttrtL But yott did not continue to do it 30 years later Tou got beyond tl~ I *as speakiug of somebod~r taking a job as a shoe- shinebOy kndwing~~hut he wOuld nOver change, that was his job for the rest of his life. , I think that nowadays when somebody takes a job at a lathe, or on a sewiñgn~iachine and ~they `are paid $6 or $7 an hour~ mid: they have vadatidns, and pensions and other kinds of benefits, that is the idnd ~ ~ *, PAGENO="0032" ot in~t4~ th~L1~ the p~pT~ Wa~rit. in Thc~ *~JA 1j~J~ sec~ti ~ ~Lgü~n d.u~4lig th~tp%~k~d of ~h~pI~ñie~ `in the 1~t. ~ouj~ie~ of y~ath *wlien jobs opened up-I r~iñthhb~ ~ ` city of A~t~ax~t~, a; year ô~r t*k~gö ope~d ~oft~ jdb~ ~ at~e ~ir1~r rbt&ti~ 1~ut ~ nerbIk~1e~ rsb~y*~1I~ paid~ j&~s, t1~ Ith~es ~it:ehd~d ~ br b1o~1ts*and b1~bk~ of~ ~thpi~*Pio' wañ~d tIu~ ~ I t~h1ft1t the dt1~id~ o.1~ ~ d~a~i end Iia~ to b~ ~ it dô~sñ't' ~nabTe th~~ôi~ 1~ rths~ tifMth1~r ~hd~ ~ ~Wi~w1I&~t ~ benefits ,thaf1if~ I~ giveti us in this country, and not necessarily whether it ~s routine-it irnty b~ te~hnicaI1y bqizi~ng, bu~1~h~fad~ i~hat he~fi rai~e, a a d~c~t%~ 1t~~iid that I *h~t~he~ a~ *at~1~ ~ ~h~dritiai~i ~tu~ttnt~Er C~ngi~s~m~ E~u~s Eepr~e*1~ttive ~t~s I ~aitt tb t~soci~te ~u~eif ~r1th `ou, Mr Cha~rti~, ~bokt t~M~ d~ad end bu~rness Let~s pi~k~it1t~ )dbs ~nd I thlfrlç that if yo~i~db t1~ia1 p~1~'*d~'t b~ ~king ~o thady qu~tidt~ ab~tt~ wh~t1~r t~Ptey~àte d~tid e~nt1~&r ~w~t ~!I'Yie ttoub1~ is, there ~e job 4~M 1~O~ op~t ~n~t ~!bi± ~1V jliwe i~adé a~bso1ftt4~ ~51~iidid ~tkt~teni~ A~d I am ~re~üt ~tP~to~ J~i~t 1i~ie a~& ~ abottt~*~ n~ii~iotis of ~he P1i~t ~j31~m,~ beb~~ it i~ 1~k~ the fl1Wa4j~e~ pi~Ob1~n1 and 1~he ~pol1~ ~ a~Ad ~I4& ~ob1etr~ o~ ~ oth~ city Yow~s~r ~oi~ 1~L g~t ab~t~ i4~4't) ~ercent u1~e 1oy~èiat rate in mO~tft1~ ~~bu~h 1o~t MayQt4 ~i~h~th~*'. Fo~ tg~th~ It vaxies f~iM ~ t~4~ 1~tit, White tøei~ger~ is~ o~er 2Q p~ent Epr b1aek~ yott get 4dMr t~ø 40 petcënt~ I~eprez~tat~v~ R,ir~trss *hajj~ y~i both have ~ a~d I t~il~ eivery n1eitLbe~ d~f this c&nihitliè wouIà~agree with you, a~ lba~st the mei~ bers b~e today, isth$ wha~ this country needs is a n~eØ~gA~1 em~ p~p~ñ~t ~rogran~ 4nd what th~ couAky also needs ~ ~ ediiéat~ódaT syS~tem ~vhieb teacl~es re an~bhu~gs, anti thi~s ~i1mU1fL~eS the dropouts T~owev~r, we ca~ l~we both of those t~xingS, anc1~ we surely sl~ild Jnd Pittsburgh aitçl ~fl1waukee á~n~ scores of~ qTher qities will stil1~ have stranded witIuxtttlie cit~ wifE they ~iot, theti~ancte of uneth~~yectyoung~people? Y1~ayOLAth1flTY7 T1~ere*~io question about tha~ B~f~èetita1~ive Thrtrss. Thit a national ~r~gr~4~ a of full employment by itself is not ~oing to co~4~ to gr~p~ with t1~ie Eact that in our citiçs, and u~ our pockets o~ ~ u~em~p1o~ii~ent, we hav~ g~it strth~th~ral~ unorñ~1byn~eiit ~ Or do ~ ~ ~Mayor FLA~p!~RcI~r Qb~iouslV trher~ will alwp b~ some uyiemp1oy~ th~nt M~Cfl it~ i~n~ôf ~uhl employih~t~t ~o thei~e isbi~ilt into tlie~s~stem itself a num~b~ of ajr~'eas wflere sven-t u derstp~ ~u1~ employin~tht ~ 4~ ~ei~c~tit or sometl~mig in th{a~ vicinity Sb you are at~ays supposed ~ á~t~frot~ say, thousand~of peOple thatwOuid~be ~ñ~1~loy~ Represe~ntative~wss., I hope not always. Bt~t 1 ~as trig~to fooi~ at th~ layers o1~ tl~te onion and say that, ~rst, *e l~áv~ ~ tO àet a i~ationai ethplO~rm~tit ,.pi~ogram, but thã~t d~es not t~k c~e o~ the ~O~kets, *~ mu~t db other tIiIIigS. .1 like your ~phr~se, when yon~ say, "We mu~t beghi t4 ~hift the ~i1l~trearn itsOif t~ ~ncornpa~s the~i".~-thern I*iñ~ tl~e young people. l~n metropolitan Pittsburgh your overall unemployment rate is i~o*8percont? PAGENO="0033" 29 Mayor FLAJIERTY. Just about. Representative REIISS. About as bad as the national? Mayor FLAHERTY. Right. Representative REuss, How many unemployed people below 24 are there in Pittsburgh? Mayor FLAHERTY. Below the age of 24? Representative Ri~uss. Below 24, on the official rolls, leaving aside those that have become discouraged. Mayor FLAHERTY. As I say, it is a percentage range. Close to 20 per- cent, from the figures I have heard, of teenagers. And of course it is less as you getup to the age of 25. Representative R~uss. And the work force is what, a couple of hundred thousand, or more? Mayor FLAHERTY. If you are talking abOut the inner city, our total inner city ceri~sus is around 500,000. If you are talking about the SMSA area, it is 1,5 million. And generally labor statistics that come out of the Labor Department talk about the greater Pittsburgh area, which is 11/2 million, in that area. Representative REuss. What I an~i getting at, without being too precise about it, there are in your community today something like 40,000 young people 24 and below able and willing to work who can't get jobs, aren't there? We all have this problem, I am not singling you out. Mayor FLAHERTY.. That is right. I think when you mentione.d full em- ployment, one of the advantages of course to full employment is that you have to relate this to young people as well, the more people come into employment jobs, regardless of what their ages are, the more room there are for employing young people. And we had 8 percent, 9 percent, and 10 percent last year, and we ai~e going to have more unemployment in the future. Representative REuss. Let me put a thesis to you to see what you think about it. Let1s assume that we get going an absolutely splendid national full employment program, full employment without inflation. We don't want to try to get the economy operating at 100 percent of capacity everywhere, but raise the 70 percent Federal Reserve figures of our plant and equipment use today to at least 85 or 90 percent, whatever we can do nationally. If you do all the things at reforming education that we have talked about, you still have left in Pittsburgh and Milwaukee and many other cities large numbers, I am afraid, of unemployed young people. Could it be that our older central cities have a population job mismatch which may require as part of the solution some tailormade way, not only of bringing new jobs and new industry into the central city region-we want to do everything we can there-but of helping particularly the young people who haven't been able to get jobs to go to where there are jobs? We did it in the case of 1 million Cuban emigres in the early 1960's with very good tailormade programs. And we did it recently in the case of the Vietnamese. Mr. Kissinger wants to do it in far off Rho- desia at the cost of $2 billion. Is there not, therefore, an additional element worth exploring over and beyond everything that has been mentioned; namely. facilitating and assisting those who feel they can get a job elsewhere than wherever they are now to go there, get trained, get a grubstake meanwhile and get relocation allowances, and get 82-043 0 - 77 - PAGENO="0034" 30 some of the specialized treatment that we gave-and I am glad we did-to the Cubans and the Vietnamese? Mayor FLAHERTY. I think you are right. I think there is a need for this. You are getting into the whole field of rehabilitation. The Viet- namese people who came here were farmers, as I understand it. And yet they were assimilated through programs into many jobs through- out the country. If you look at any city, whether Milwaukee or Pitts- burgh, there are ways of involving youngsters in something more than just make-work. Artificially created jobs are helpful in a sense that they put a few dollars in the youngster's pocket, but if you can design the job with some kind of work experience and the educational process together, so that he has got a few dollars in his pocket, it can be mean- ingful. If you can combine the educational process with the work process, it will be mi~ch more helpful to it, because he doesn't have this dead end thing staring him in the face. I worked through college, too, Senator. But that was kind of an ancillary thing. But if you are in this dead end job where you don't have this upgrading where it is not combined-it doesn't work right now because the educational process is so separate from the employ- mnent. And then the two, I think, have to somehow be brought in closer to coordination, closer cooperation. There are two separate units. And I think this can be done by some of the way manpower programs are brought about here at this level. Representative REuss. You know that Americans have been mobile in the past, the Flaherty's, the Reuse's and the rest of us have gone where the jobs were. And sometimes they looked like dead end jobs until it is proved different. The Homestead Act, the Land Grant Act, the northwest ordinance, all this facilitated that. However, I am glad that you don't exclude the mobility approach to whatever else you have done. Thank you very much. Chairman HUMPHREY. Thank you. I want to spend a little time with you now. I wanted my colleagues to open up the questioning. I want it clear that I don't advocate dead end jobs. But I will tell you~ what I do advocate. I think work is a therapy. I think idlene~s is a `disease which grows on you. It is terminal too if you keep at it long enough. And therefore I am an old fashioned work-ethic midwestern type of guy. For example, when I leave here and go out to Minnesota I don't hesitate to get out in the morning and move rocks, cut down trees, clean the garage. My wife is often after me because, she says, I always am cleaning up the garage. I like work. I think it is good for you. I think it gives you some muscle tone if it doesn't do anything else, dead end or not dead end. And there is nothing more deadening than just sitting around. And there is nothing more deadening than just standing on the street corner. And therefore, while I am not advocating dead ends, how do you know until you start? In North Dakota in 1936 it was dead end. The wholething was just terrible. There was nothing there hut' dust and grasshoppers. I had to drive to Minnesota to get out of it. I was desperate, physically and emotion~lIy upset. PAGENO="0035" 31 We didn't know that we were poor. Everybody was poor. So that poverty wasn't something that we thought ~bônt. Everybody in town was poor. Nobody had any money. All the banks were closed. We bartered like some of you older folks here in the room remember. My father ran a business. We didn't have cash. We took in chickens for medicine, and we gave medicine away because they couldn't pay the bill. Those are days that I remember. That. has left an impact on me. When I get up and all my brilliant friends tell me about all these training programs and so forth which I voted for, I am for them. But I will tell you something, sometimes you have got to get people to work. There are streets that need to be cleaned. It is not beneath anybody. After all, I spent my time cleaning streets. I am proud of it. It gave me some appreciation of the other guy's Job. I don't think this job that I have got here is particularly the best one I have ever had. As a matter of fact, it is the longest houred one I ever had. And sometimes you get some satisfaction out of knowing at least that you did something in the construction project. Having said that, I come back to the importance of what has been said here about the schooling program and education. We need to take a look at what Congressman Reuss and Congressman Moorehead and you have said. It isn't just putting somebody in school, because the kids know that, that is just putting them on the shelf too for awhile. The question is, what are they going to do when they are in school. And our old educational system has to be redesigned some- what toward the education and the work experience needed to give our young people some background. In my life I didn't have to have an educator to teach me what I needed to do, I had a father. I grew up in a small town, in a small business. I was there with my daddy. He taught me. My mother taught me. My uncle taught me. But I stood at 5:30 a.m. this morning in front of a plant gate in Wilmington, and every man that went 1ntO that General Motors plant couldn't bring his kid along and teach him how to work in the plant. And those are fine middle-income people working in that plant.. Even that kind of group couldn't teach their young people how to work in that plant. And the home family situation today is different. If you are running a big supermarket today or a big company you can't bring your own kid in there and have him messing around with you like my father did. It is a different ball game. I know that. And therefore the role of Government is so~ much more important. All these private enter- prises that used to hire all these young people are the very people that can't do it today. And there is a reason for it. I am not scolding them. Why don't they hire them? Because they have had no training and have had no work experience. A fellow that I work with gave a young than a job. He wrecked a car 3 times on the job, lie can't even learn how to drive a car. Finally I said to my friend, why did you get that new car? And he said, I had to, the other one has been wrecked 3 times. He was going to rehabilitate that young Eellow. It was a noble thing for him to do. But it would have been better to put that young man in some kind of training program to learn how to drive an auto- mobile and take care of it. To change the sparkplugs you don't ah PAGENO="0036" 32 ways have to go to the filling station. You can learn to do things like that. What I am getting at is the necessity of public sector designing its e~orts in a way that puts people to work, number one, just for the simple purpose of getting them to work. That is No. 1. No. 2 training, hopefully to get a skill or a semiskill. And No. 3, the closer coordination between the private sector where most of them ultimately end up, hopefully, and the public sector. Now, not long ago under the Kennedy and Johnson administrations the U.S. Employment Service conducted a school cooperative program that some of you may be familiar with which put trained placement officers in almost one-half of the high schools in this country, trained placement officers right in the high schools. In Minnesota we had pro- fessional job counselors and youth opportunity centers in 470 of the 850 high schools in the State of Minnesota by 1969. I was Chairman of the Youth Opportunity Council of our Federal Government. The first thing that Mr. Nixon and Mr. Agnew did was to abolish the Youth Opportunity Council. The next thing they did was to cut the heart out of the job program, because they said it cost too much. I went and visited every Job Corps program in the United States. I saw what could happen. I was the author of the Youth Employment Act. 5. 1 was its number, the first bill when John Kennedy became President of the of the United States. So I got a full head of steam up on this business. And I will never forgive Richard Nixon and his crowd for a lot of things, but one of the things I won't forgive them for was cutting that job opportunity program to ribbons. They were learning skills, they were learning how to operate heavy machinery, they were learning how to be craftsmen, and they were learning car- pentry, they were learning masonry, they were learning how to do things. But the Nixon administration said it was too expensive. In my State we had, I repeat, 470 out of 850 high schools with job placement people right in high schools. But now that program is de- funct nationwide. And I hold Congress somewhat derelict in this thing, too. We ought to have been shoving it down their throats. In Minnesota the employment service in Minneapolis and St. Paul area still have 35 professionals who spend 1 or 2 days each year in the inner city high schools and carry on this highly successful program. Now, the reason I mention it. it works. They work with all t.he com- panies, the textile industry, the electronic industry, and the Federal Reserve. bank. I don't often compliment the Federal Reserve. But they have even been hiring some of these young friends of ours. I just wonder, have you had that program in Pittsburgh since you became mayor? When did you become mayor? Mayor FJ~AHERTY. In 1970 I took office. Chairman HUMPmmY. The national effort was canceled out that year. Mayor FLAITERTY. Right. I don't think we. have much. All we have had is the summer youth program. Chairman HUMPHREY. Just the summer youth program? Mayor FLAHERTY. Yes. PAGENO="0037" 33 Chairman HUMPHREY. Which in itself has done a lot of good things. Do you know what kind of Federal activities or initiatives are underway in your city that you could really put your finger on and identify, outside of the summer youth program? Mayor FLAHERTY. Well, we have the CETA program, of course. Chairman HUMPHREY. That is a great program. Mayor FLAHERTY. The CETA program has been. It has been a big help in a period of high unemployment. Of course you have a period of high unemployment in order to qualify for a number of jobs avail- able. But it has been a transition thing for irien and women who have lost their jobs in industry from plants moving out, or from job losses with unemployment, It has been a big help. And it is something of course that you can hold for a year or two and then move on into some- thing else. Hopefully we can move on these people that have been employed in the CETA program. But CETA has been a big help to the city. Chairman HUMPHREY. You have had a fairly good placement record, as I. recall, with CETA. I know that CETA in some places has had more difficulty. Mayor FLAHEnTY. Well, with high unemployment I can't tell you that it has been that good. We have had, even in our own case-if I am going to hire somebody for a permanent city position, if I can move them from CETA into a permanent city position, I do, as posi- tions become available. Chairman HUMPHREY. I sat down last week with the CETA director in a little town, a medium sized city in my State called St. Cloud. And the CETA program there is doing very good things in both the private and the public sector, You read about it here in Washington. When I am voting on it, I just thought I would go and find out what is going on. It is a really remarkable program. And I want to say to my colleagues, we tried to increase it. But we had these people in the administration who figured that you can't afford things like that and vetoed it. Mayor FLAHERTY. And we are looking forward to the new public works bill which with your help and the congressman here is coining on. And that has been a big help to the committee in providing employ- ment. We are working to provide the implementation for it. And I think it is going to be a big help. Chairman HUMPHREY. I would just like to note for the record here- the staff helped me get this information-that about 5 years ago the State department of employment services in my State started its own minioffice program which sets up an employment service office each summer in the small towns around the State that aren't normally served. And its staffs these with one or two young people whose job is to find jobs locally for other young people. It is a kind of public service, young peoples' summer jobs. This program has been so success- ful that more than 60 such ininioffices were opened this past summer, with about 100 young people manning them. And each young person in the minioffice found an average of 100 jobs for other young people, for a total of 10,000 youth jobs in the State from this program alone. That is over and above the summer youth jobs. In addition, the employment service's regular offices found 20,000 such jobs in the larger cities and towns, and the State legislature PAGENO="0038" found an additional 5,000 State public service jobs, for a total of 35,000 youth jobs in Minnesota this summer. And let me tell yoU, it has had a tremendous impact. The little vil- lage, in which I live, of Waverly is new building a recreation park right along the lakefront. They just opened up their tennis courts, and they are opening up their campsites. And all is being done with young people under supervision. I watched them on this summer youth program. You can look right out on the separate office buildings from my office. And there were five or six young people in this courtyard, and they were not doing aitything, because nobody was supervising them. That is not unusual. I hire some for my place at home, and they Won't work until there is somebody on their back. That was the way with me. That is how my father became well acquainted with me. You have got to have somebody on your tail all the time, particularly when you are growing up. And you have got a lot of vitality that you can use if you want to. What I am getting at is, this can be done. Mayor FLAHERTY. You have hit on one of the problems, supervision. When Congress provides work jobs, we find one of the difficulties is. that they generally do nOt provide-and I recognize you are dealing with a certain limited amount of resources-for middle management level jobs or much in the way of supervisory jobs. And so when all of a sudden on June 1 when I find myself with 5,000 new employees that are coming on for summer jobs, I never know until perhaps June that I am going to get them in the first place, and then all of a sudden there they are at the door, and we have to hurriedly try to get them to work. [Off the record discussion.] Chairman HUMPHREY. Mr. Flaherty, I am not going to keep you any longer. I know that you have given us a lot to think about. And I want to say to you, Mr. Samuel, that I thoroughly underscore your emphasis upon the educational aspects. I hope that we may hear even more from Mr. Finley and others as to the kind of training that we can put into our school system. That is so vital. That is not CETA as such, but it ties in with work-study concept that we use at the college level. We have a work-study effort at the college level. And somewhere along the line we have to face up to the fact of what this costs in dol- lars. This is important. I am not trying to put the cost up there as an impediment, I just suggest that we have to cost it out. Because I have learned to live with what we call the alternatives. There isn't any straight line at all, there is no single choice in life. It is alternatives, always. There is one way that you can save some money, if you are really inter- ested in saving money. Never see a dentist. Never see a doctor. And don't feed people. That will save you money. Of course, you will die, But there are always people that are worried that you are going to spend some money. The interesting thing is that those very same people are the very ones who are spending the money, they are spending the money to fix up the hedge at their home, they are spending the money to send ther sons and daughters to the highest priced colleges. And I applaud them for it, but I don't think that is spending, I think that is investing. PAGENO="0039" S5 I will never forget the argument. over the Job Corps. We priced out what it cost to put somebody through the Job Corps. And it does cost as much to put somebody through the Job Corps as it does to put them through Harvard. And the rates of dropouts in Harvard were higher than the Job Corps. You hear people saying all the time, he went to Harvard, but no- body ever said, I went to the Job Corps. And some of these Job Corps graduates were pretty good. I had one of them travel with me in 1968. His name is George Foreman. He has made some money since `then. He was the world heavyweight champiQn. He competed in the Olympics in Mexico, and he didn't let the Russians win it. We ought to give him a prize for that, he cold-cocked them, bingo. He held up that little American flag. He was a Job Corps boy. Mr. Nixon rewarded him and his great achievement by saying we hope this little program will help, and since then the Russians have been the champions. I want to bring up the other witnesses. Thank you very much. We have Mrs. Beatrice Reubens, from Columbia; Mr. Bernard Anderson, professor in the Wharton School; and Mr. Paul Barton from the National Manpower Institute. And might I suggest that if it is agreeable with my colleague, we will go right down the line and hear the testimony of the three wit- nesses. Mrs. Reubens, we will start with you. You have heard all of my prejudices this morning. STATEMENT OP ~EATRICE G. REUBENS, SENIOR RESEARCH ASSOCIATE, COLUMBIA UNIVERSITY Mrs. REUBENS. Some of your remarks fit right in with the things I am going to say. Besides, I believe so much in free speech that I feel even Senators have the right to have unlimited prejudices. Chairman HUMPHREY. You may proceed. Mrs. REUBENS. I have been interested in American youth employ- ment and unemployment problems as compared with those of other in- dustrialized countries. I want to compare the unemployment experi- ence, the attitudes toward youth and youth unemployment, and the different kinds of programs that exist in these countries. I have five main topics. First, some comparison of the actual unemployment experiences. And second, some discussion of the cause of rising youth unem- ployment. Chairman HUMPHREY. Do you have a prepared statement? Mrs. REUBENS. Yes, I have one copy. Chairman HUMPHREY. That is all right. I didn't know if you had it for the committee or not. Mrs. REUBENS. I will talk very briefly from the prepared statement. The five main headings would be the comparison of the youth unem- ployment experience; some discussion of causes which seem to be com- mon among the countries, although they haven't talked to each other much about this; attitudes in other countries; recession programs; and then some of the longer run programs for the transition from school to work. PAGENO="0040" In the 1960's we always cited other countries for their `low youth unemployment rates and ratios. This has changed, so we must give up this whole approach. In fact, some countries are very close to us in their youth unemployment rates. Because they are very much determined by the overall unemployment rate in a country, and most of these are still lower than our youth rates generally are lower than ours. But if we take the ratio of youth unemployment to adult unemployment as a measure, there are now `several countries which have higher ratios than we do. I recently spent a month in Australia on an official mission, investi- gating the transition from school to work. They were currently having almost 15 percent youth unemployment, having had 1 percent in the 1960's. It is `apparent that American type conditions are beginning to crop up in many countries. And this is natural. We are the industrial leader, the technological leader, and in many ways the `social trends leader. Whenever I go abroad, people want to know what is happening here because they expect it to reach them in perhaps 5 years. Chairman HUMPHREY. I notice that France has now begun to experi- ence `a heavy youth unemployment. Mrs. REUBENS. All of Europe has serious youth unemployment prob- lems, much more than they have had since the end of World War II. They are now trying to explain this new development. I have put to- gether 10 causes that are commonly cited in the industrialized coun- tries for this rise in youth unemployment. These causes do not have the same strength everywhere, but they have some validity. I will mention them quite quickly without going into them, unless someone wants to query me on them. First, the demographic trends, the pressure from the baby boom. Now, this comes at different times in different countries, but almost every country has had some of it, and in some it is still strong. Ger- many, for example, is just about to have a heavy increase since they are on a different cycle from us. Their first baby boom was under Hitler in 1939, and their next boom occurred in the 1950's. They are now getting the third round of it. And it comes at an inconvenient time for them because of the recession and the decline in apprenticeships. Prolonged education, which all the countries have experienced, merely postpones the demographic problem, shifting it to higher occupational level's. The second cause in youth unemployment is competition from women whose labor force participation has risen sharply. The third cause is a slowdown in the increase of productivity rates. I believe that Europe has completed its post-war reconstruction, and that they are in quite a different period now. What we admired as full employment may no longer be their experience, and they may look back longingly on that period much as we have looked at them and thought, if we could only imitate them. The fourth is changes in technology and scale of operations, which has eliminated or reduced many jobs for youth. There is the decline of industries which formerly used a high proportion of young people, and particularly those that could absorb young people with low academic ability. Agriculture is another case. In `the past we couTd hide a great many things on the farm in terms of people who weren't very competitive. Now, agriculture, having PAGENO="0041" 37 declined everywhere in employment, is not a refuge for many young people. Chairman HUMPHREY. Also it requires a great technical ability to run a tractor. To operate a 4-wheel tractor you have to be an engi- neer practically. Mrs. REUBENS. Yes; the difference in the ways that industries are run is another aspect of this. As the fifth cause, one I think is much stronger in Europe than it is here, there is the protection of the existing work force through em- ployment security legislation, or trade union agreements. This is all to the detriment of new entrants, as it protects older workers and those with seniority. The sixth cause is ~t rather interesting and touchy subject, the wage issue. What has been happening i~ a narrowing of the differentials in wage rates and earnings between young and adult workers, with the consequence that employers in many countries feel that young workers are too costly. Whatis interesting to me is that this development has occurred in countries which over the years have had a youth differ- ential, either legally or through collective bargaining agreements. These arrangements have failed to stem this particular development, namely, that youth wages have risen faster than adult wages. I think that this is a signifiéant aspect of any discussion we in the United States might have about instituting a youth differential in the hope that it would increase youth employment. Unless we recognize that other factors also affect this changing ratio between youth and adult wages, not only the legal provisions, we will be led astray. One factor is the change in the composition of youth jobs. The very elimination of some unskilled jobs that I mentioned has shifted up the average earn- ings of those youths who are employed. The establishment of higher youth wages may have created a certain amount of youth unemploy- ment, but it is not all due to a uniform minimtim wage. T, therefore, take a different position on the uniform minimum wage and discus- sion about changing it. I believe that a youth differential would be quite ineffective in creating a lot of new jobs, but it wouldn't be as disastrous as some of the opponents of the differential have main- tained. Basically, I don't think it is going to contribute a great deal. Since there are political considerations in changing the existing pol- icy, I doubt whether it ought to be undertaken. Perhaps it should be tried out on a small experimental scale, which is a line of action we have used on other issues. Rejresentative REtJSS. You have used ~t where? Mrs. REUBENS. We have used some social ex~perimentation like the incentive in New Jersey. the scheme for giving people income supple- ments to see if it would influence the number of work-hours they put in. Representative REUSS. I thought you were talking about a lower youth minimum wage. Mrs. REUBENS. I suggest that it could he experimented with instead of being institutionalized in a national la~~ at ~onee. But I think it is of considerable importance to weigh the oth~r factors that are in fluencing the actual earnings apart from the minimum wage itself. Then there is, point eight, a decline in apprenticeship or training vacancies relative to total employment in those countries which have PAGENO="0042" 38 a high development of this particular method of easing the transition from school to work. This decline appears to be due mainly to tech- nological and cost factors. Ninth is the matter of youth attitudes toward work. I think that in spite of Senator Humphrey's talk about the value of some dead end jobs, we have to recognize that throughout the world there is a new selectivity about the types of jobs that youth will accept, and much concern about the conditions of work, and hours of work- objections to weekend work or night work. The quality of supervision is something that youth feels a right to challenge. Relieving the pres- si~res at work, enlarging the opportunities for participation and decisionmaking, and improving physical conditions of work-all of these ideas are byproducts of our affluent society which is what we all wanted for our children. But when they start asking for these by-products we get angry at them. Chairman HUMPhREY. rfhat is my position. Mrs. REUBENS. These newer views have appeared around the world, and with such similarity of expression that one must take them seriously as a social trend. The final point is the legal barriers to youth employment, such as the child and yo~ith labor laws. Although many countries cite these laws as obstacles, there has not been very good evidence that they are a serious deterrent to employment. Certainly they can be a nuisance to employers who want to hire youth, but many complaints come from those who don't employ many young people. These laws should be modernized, but it is unlikely that it will have a great effect on youth employment. This has been a long list of the causes of youth unemployment, and a rather devastating one, if you consider the number of basic conditions which are adverse to youth. It is a major challenge to any full employment policy in the United States, because we, along with Canada and Australia, have a rapidly growing labor force compared to other countries. We don't appreciate enough the extent to which other countries have not had a rapidly growing labor force, even includ- ing foreign workers, and therefore have had a much easier job of providing full employment. There is anoth~r way in which some of these foreign countries show less youth unemployment than we do. They exclude in their statistics and also from their unemployment programs any young people who are in full time education and who are seeking jobs during the school year. They simply do not consider this a part of youth unemployment or a problem. Part of the reason they don't consider it a problem is that some countries provide students in high schools with govern- ment grants, especially to low income youth, so that they can stay in school. This is one approach to reducing the pressure to take part- time jobs. It is also an approach to providing greater equality of op- portunity in education, but it is something that we have hardly ex- plored for secondary education. We have done it mostly at the higher education level, but it is done very widely at the secondary level in other countries. Since a large proportion of teenage unemployed youth in the United States is in school, one of our policy approaches might be to draw a sharp distinction between in-school and out-of-school youth in the PAGENO="0043" 39 programs as well as in the statistics on the labor force~ emplo'yment~ and unemployment. Given the dimensions and intractability of Ameri- can youth unemployment problems, it could be helpful th relegate the in-school youth to the education authorities, who should mount large- scale programs of paid work-study, community service, and other ac- tivities that yield some income. This would decrease the competition for jobs between in-school and out-of-school youth, and it might lead to a more productive use of school time and better preparation for work on the part of the in-school youth. At the same `time the employ- ment programs can be concentra.ted on the out-of-school youth who are older, mostly 18 and 19 and are from lower income families than in-school unemployed youth. Out-of-school youth are entering their working lives wl~ereas the in-school youth are seeking part-time work which will not necessarily have much connection with their future. Turning to attitudes of the society toward youth unemployment, it seems to me that abroad, where people had become accustomed to full employment and the economy easily absorbed all of the new entrants, they take a `serious view of youth unemployment both as a recession and a structural problem. They sound as if they had discovered Le- gionnaire's disease. But our attitude is more like that of somebody who has had a persistent headache, and now his headache is a little bit worse. He says, it is no use doing anything about it, maybe it will get better, I have to live with it. It is that kind of contrast. Youth unemployment in Europe alsO is a social issue. They have street demon- strations by young unemployed people. And national leaders fear political extremism, among other consequences. I see three main attitudes abroad toward youth unemployment and what ought to be done about it. `The first is that unemployment constitutes a serious loss to any youth who has trouble in obtaining his first job or in remaining in employ- ment in the early years of his labor market experience. It is damaging to him, it is a bad introduction to working life, and it is unfavorable to the development of his career. I think that this concern for the `individual as a part of overall manpower policy is lacking in the United States. We have not extended help to all unemployed youth; but have tended to concentrate on certain disadvantaged group's. The European approach has been that every single unemployed youth emerging from school is a problem. In American terms we would be planning a program for those high school graduates of June 1976 who are still unemployed in October. That kind of overall approach would mark the difference between us,and them. `The second attitude toward youth unemployment we also do not take seriously. It is that the movement of young people into the labor force is the most important single way in which the htbor force and its aver- age level of skill are renewed `and developed. If cyclical or secular `de- vel'opments reduce the intake of new entrants, the Nation and economy lose by youth unemployment. Thus programs for youth are in the na- tional interest. I think it would be quite hard to find American state- ments which emphasize t'his aspect. We tend very much to stress help to particular individuals. The third attitude which I `have already mentioned involves the political and social `consequences of heavy unemployment. It might be compared to our concern about the social dynamite of inner-city PAGENO="0044" 40 unemployment. That is where we have concentrated our greatest ef- forts. Yet, without discounting the significance of unemployed minor- ity youth, and the problem they will continue to have because their numbers will be increasing while the number of white youths will not, I think our policy is questionable. We have been providing made- quate measures, quantitatively and qualitatively, for this particular group in light of the desperate situation in the inner cities. And at the same tinie the. overall provision for all unemployed youth with prob- lems-for example, high school dropouts. 70 percent of whom are white-has been minimal. So I see a lack in that area as well. The kind of recession programs that have been devised in other countries hold no surprises for us. We have pioneered unemployment programs, since we have had more reason to have such programs, going back to the thirties. In subsequent years we have had experience with `many `programs. Senator Humphrey was telling us about some of the earlier programs and what has happened to them. We don't have to go elsewhere to learn about the kind of things that can be done, and what the issues are. There are also some foreign approaches we probably would reject. For example, many countries now `pay unemployment `benefits or un- employment assistance `to young people who have never worked at all. They have been out of school for `3 months to 6 months without getting jobs, and they go right on these programs. As another exam- ple, Belgium is now trying to `compel employers to take on extra train- ees. And there is a proposed program to foster early retirement so that young `people can be taken on. But where the European programs are acceptable and effective, cer- tain characteristics mark them. These are worth considering in an integrated `program. O;ie, programs are `prepared in prosperous periods and go into effect ~)romptly as economic indicators show declines. Two, general monetary and fiscal measures are well integrated with specific unemployment measures. Three, within the specific unemployment measures, special programs for youth occupy a position which r~fIects the social priority attached to this segment of the population. Four, a sufficient variety of measures and large enough programs are provided to cover the needs of a diverse unemployed population. Five, provisions for reducing or closing down of programs are set as a response to changes in the economy, and programs are not ended simply for financial reasons. Six, a set of basic programs for training, mobility-which Congress- man IReuss mentioned-income maintenance and other measures is kept permanently in place with cyclical variations in the utilization. Looking specifically at approaches to the recession, other countries do not utilize public service employment as much as we do, and the newest and most widely used measure in both the all-age programs and youth specific unemployment programs has been subsidies to private enterprises, to encourage tramingand employment or combinations of both. Subsidies have been offered to private employers and to various levels of government, which is an interesting variant on it. Subsidies are said to make a contribution to `output at little cost above the income maintenance payments, which are very substantial in these countries. PAGENO="0045" 41 One specific suggestion which emerges from recent programs for youth in other countries is the subsidization of employers who nor- mally hire apprentices in programs registered with the Department of Labor. Such subsidies could be granted to employers who are willing to hire extra apprentices and prove their ability to offer the full, prescribed training in occupations where additional craftsmen will be needed. The introduction of such subsidies might lead to a more permanent form of financial support for apprenticeship, which has been urged on other grounds. The official connections of registered apprentice- ships, that is, through the Department of Labor, and the fact that we already have programs to open apprenticeship to minority groups and to women, make this a very suitable kind of youth training to sub- sidize on an experimental basis. This, of course, would be a very small program. And it still is true, as I said earlier, that I doubt that apprenticesh~ip in this country is going to be one of the major ways of providing a transition from school to work. But I think, marginally, and certainly in a cyclical situation, where the intake of apprentices has undoubtedly been affected by the recession, that one of the things to do is to maintain the intake by some sort of subsidy. This measure is widely used now in all the other countries that I am familiar with. The final issue is, what do you do about the longer run, about the complaints everywhere concerning the poor preparation of youth for their adult lives and for their working lives. Both the things that are said in criticism and the proposed solutions are really quite similar from one country to another. The differences lie more in what is actually being done in various countries than in ~vhat people think would be the best. approach. Most believe that it is necessary to bring education into closer proximity to the work world, to inform and counsel young people about the options and conditions they will face, to combine school and workplace, to bring general and vocational edu- cation into harmony, to improve job placement and followup services, to involve employers, trade unions and the community, and to devise new forms of education and training for the segment of youth which will not or cannot. master the basic part of t.heir skills. This last group, varying in size from country to country, is not a new phenomenon, hut it causes increasing concern as the economy provides fewer and fewer jobs for such youth. There have been re- medial and second chance programs. But we haven't very good evi- dence yet on the effectiveness of any of the programs, because the European countries and Australia have just started to think of having a structural problem and not simply a recession problem. In the very best of European programs to build bridges between education and work certain elements particularly contribute to effec- tive operations. The legislature sets forth the objectives, guidelines and financing, but leaves to executive agencies the working out of details. The legislation provides for a delay in the startup of the program, as much as 4 or 5 years, in order that adequate preparation may occur. A combination of the education and manpower agencies does the overall planning, establishes the responsibilities of the various agencies at all levels of government and sets up advance training or retraining courses for those who will deliver the actual services. Such advance training is a key factor because it often is necessary to reeducate the person- PAGENO="0046" 42 nel, since the quality of services depends very much on the quality of the people who deliver them. In t:he United States we have, neglected this aspect. After the preliminaries are well underway, the new program is introduced gradually, starting in one part of the country or onc type of school and expanding to national coverage as trained personnel emerge from the special courses. The entire program is reviewed after it has been in operation for a stipulated number of years, but modifications may be made by the executive agencies without recourse to legislative action within the experimental period. This model doesn't really exist everywhere, but it is a goal, and S have seen it in operation in some places. For a conclusion I will state quickly what the European Com- munity has just adopted as a program for unemployed youth in all their member countries. To meet the situation in which they believe that a large part of unemployed youth have serious deficiencies in vocational preparation, they propose five measures: Individual guid- ance to establish the abilities of young people; relate education to the institution of employment and to training opportunities; reenforce- ment and application of basic educational skills, such as verbal and written expression, elementary mathematics; contextual studies, such as basic principles of economic and social organization, role of trade unions and employee's organizations, and the laws relating to social security and workers rights; practical training in a broad skills area* to qualify youth to begin a career in the chosen area and to undertake more advanced training at a later stage; practical experience of work either in an enterprise or in a publicly financed work creation program. And those are the five elements. They want to have this program adopted in each of the member countries. These, then, are measures that have actually been voted in the European parliament. Thank you very much. [The prepared statement of Mrs. Reubens, together with a policy paper entitled "Foreign and American Experience With the Youth Transition" follow:] PREPARED STATEMENT OF BEATRIcE G. REUBENS YOUTH UNEMPLOYMENT AND THE TRANSITION FROM SChOOL TO WORK Some perspective on American problems of youth unemployment and transi- tion may be obtained from an examination of the experience, attitudes, and programs of other countries, making due allowance for the economic, demo- graphic, social and political differences among the enuntries. Many industrialized countries which enjoyed low youth unemployment rates and low ratios of youth to adult unemployment in the 1960's now have discov- ered serious youth employment problems. While the recession which began in 1974 may be the major new factor in some countries, others fear than longer-run forces are at work. It is no longer valid for American analysts to cite favorable youth unemployment rates of other countries or to point to institutions which we lack as causes of their success. Phose institutions either have been under- mined as economic development has followed American patterns, or else they were not accurate explanations of the earlier low'unemployment. As other countries seek to understand their new youth unemployment, one is struck first by the recurrence of the same explanations from one country to another and second by the applicability of the explanations to the United States. Of course the timing, sequence, and severity of the specific causes vary from country to country, but a list of the reasons currently given abroad may help PAGENO="0047" 43 us to understand our own development of a persistent youth employment prob- lem in `the 1960's, before other countries and in kee~$ng with our precedence in economic and social trends. The leading causes cited are: 1. Pressure of numbers of young people coming on to the labor market as a result of demographic trends. Prolonged education merely postpones the prob- lem and shifts it to higher occupational levels. 2. Competition from women whose labor force participation rates have risen sharply. 3. Slowdown in the increase of productivity rates. The completion of Euro- pean post-war reconstruction may mark a new economic period for those countries~ 4. Changes in technology and the scale of operations which eliminates or re- duces jobs for youth. 5. Decline of industries which used a high proportion of young people and could absorb those with low academic ability. 6. Protection of the existing work force through employment security legisla- tiop or agreements to the detriment of new entrants. 7. Narrowing of the actual wage and earnings differentials between youth and adult workers, with the consequence that empley~rs feel young workers are too costly. The fact that this wage movement has occurred in countries which have no legal minimum wage is of cruciab significance for the argument that a youth differential in the American minimum, wage would head to an in- crease in employment. 8. A decline in apprenticeship vacancies relative to total employment in the countries which had highly developed this method of easing the transition from school to work. The decline appears to be due to technologic and cost factors primarily. 0. Youth attitudes' toward work. Selectivity about the type of job, the condi- tions of work (hours, quality of supei~vision, pressures, opportunities for partic- ipation in decision-making, physical conditions), and the balance between work and other aspects of life have raised conflicts between youth and employers. 10. Legal and other harriers to youth employment in regard to age, permitted hours of work, other protective provisions, licensing, etc. While this factor is mentioned in almost every country, its actual impact is poorly documented While some of these factors may be amenable to change and others, especially the demographic pressu~re, will decrease in the years ahead, there are powerful trends in the economy and labor market' which set youth at a disadvantage against other age groups. `To counter these is a formidable challenge to a full employment policy, especially in the ITS. or Canada which have such a rapidly growing labor force. It is not generally realized that the countries which earned American admiration for maintaining full employment and very low youth unem- ployment before the present recession had, except f~r Australia, a much slower growth of the total and youth labor force, even when foreign workers are in- chided. Full employment was easier to achieve. Another way in which foreign countries may show less youth unemployment than the United ~tate5 is by exclusion from the statistics of young people who are in full-time education and who seek jobs during the ~choo1 year. They are counted neither in the labor force nor in the unemployment totals The propor- tion of young people at school who are also in the labor force tends to be lower in other countries than in the United States, in part because their studies are more demanding and in part because many receive government study grants which prohibit or limit work while studying. Since a large pronortion of teenage unemployed youth in the United States is in school, one policy apnroach might be to draw a sharp distinction between in-school and out-of-school youth in statistics and programs dealing with the labor force, employment and unemployment. Given the dimensions of the Ameri- can youth unemployment problem, it could be helpful to relegate the in-school youth to the education authorities who should have programs for paid work- study, community service and other activities yielding some income. Not only will this decrease the competition for jobs between in and out-of-school youth, it might lead to more productive use of time and better preparation for work on the rart of in-schoOl youth. At the same time, employment programs can be concentrated on the out-of-school youth, as is the practice abroad. Attitudes to'ward youth unemployment Foreign countries tend, on the whole, to regard youth unemployment as a more serious social ill than we do, especially if they have been accustomed PAGENO="0048" 44 to a rapid absorption of each cohort of new entrants, Without giving youth precedence over adults, they show concern over three aspects of youth unemployment: 1. Difficulty in obtaining a first job or in remaining in employment in the early years of labor market experience is seen as damaging to the individual, a bad introduction to working life, and unfavorable to the development of careers. This approach leads to a concern for all youth unemployed and the design of many programs for individuals rather than disadvantaged groups. 2. The movement of young people into the labor force is regarded ~s the most important single way in which the labor force and itS average level of skill are renewed and developed. If cyclical or secular developments reduce the intake of new entrants, tile nation and the economy lose by youth unemployment. Pro- grams are thus in the national interest. 3. A rise in youth unemployment is feared because of its political and social consequences-street demonstrations, strengthening of political movements on the left or right, as well as increases in delinquency, crime and other costly outlets. It might be said that the U.S. has given little attention to the first two aspects in recent years and has largely limited its efforts to countering the social dynamite of unemployed minority youth in inner cities. Without discounting the significance of this group, it can be said that the measures devised to cope with their problems have been inadequate and at the same time the overall provision for needy unemployed youth-the vast majority of whom are white-has been minimal. Recession programs for youth There are no ingenious new programs anywhere else that we do not know about from our own experience, which other countries study for their programs. There are some foreign approaches that we probably would not want to adopt- for example, paying unemployment benefits or assistance to those who never have worked since leaving school, or compelling employers to take on trainees, or fostering early retirement with the proviso that a young person should be taken on as a replacement. National policies to cope with youth unemployment have established separate programs for youth because of the special needs of new entrants, and these pro- grams have sometimes been extended to include other young people. In addition, many manpower programs have no age restrictions. In the countries whose unemployment programs seem outstanding, the follow- ing characteristics appear significant: a. Programs are prepared in prosperous periods and go into effect promptly a'~ economic indicators show declines. b. General monetary and fiscal measures are well integrated with specific unemployment measures. c. Within the specific unemployment measures, special programs for youth occupy a position which reflects the social priority attached to this segment of the population. d. A sufficient. variety of measures and large enough programs are provided to cover the needs of a diverse unemployed population. e. Provisions for reducing or closing down of programs are set as a response to changes in the economy, and programs are not ended simply for financial reasons. f. A set of basic programs for training, mobility, income maintenance and other measures is kept permanently in place with cyclical variations in the utilization. Comparing the actual programs in the U.S. with those of other countries in the present recession, one observes not only a greater variety abroad but also relatively less dependence on public service employment. Instead, one of the newer and most widely used types of measure in both all-age and youth specific unemployment programs abroad has been the subsidy to encourage training and employment or combinations of both. Subsidies have been offered to private employers and to various levels of government in an effort to encourage the same intake of young trainees, apprentices and workers as. before the recession. Such programs also are advocated for their contribution to output at little cost above the incomne maintenance payments. One specific suggestion which emerges from recent programs for youth in other countries is the subsidization of employers who normally hire apprentices in programs registered with the Department of Labor. Such subsidies would be PAGENO="0049" 45 granted to employers who are willing to hire extra apprentices and prove their ability to offer the full, prescribed training in occupations where additional craftsmen will be needed. The introduction of such subsidies might lead to a more permanent form of financial support for apprenticeship. Both the official connections of registered apprenticeships and the existence of programs to open apprenticeship to minority groups and women make this a suitable kind of youth training to subsidize, although it is likely to be a small program at best. Youth transit ~on programs To a surprising extent various nations are following a parallel course in appraising and prescribing for the structural problems affecting at least a portion of their teenagers. The dissatisfaction expresse~I in the United States with high school educatioii and the consequent attention to Career Education has not been repeated precisely elsewher,~, but other nations are seeking to bring education into closer proximity to the world of work, to inform young people about the options and conditions they will face, to combine school and the workplace, to bring general and vocational education into harmony, and to devise new forms of education/training for the segment of youth which will not or cannot master the basic cognitive skills. The last group, varying in size from country to country, is not a new phenomenon, but it causes increasing concern as the economy provides fewer and fewer jobs for such youth. Special programs have been instituted for remedial work and second-chance oppor- tunities, but it is too early to appraise them. In the very hest of European programs to build bridges between education and work certain elements particularly contribute to effective operations. The legislature sets forth the objectives, guidelines and financing, but leaves to executive agencies the working out of details. The legislation provides for a delay in the start-up of the program, as much ~ts four or five years, in order that adequate l)repnration may occur. A combination of the education and manpower agencies does the overall planning, establishes the responsibilities of the various agencies at all levels of government and sets up advance training ov retraining courses for those who will deliver the actual services. Such ad- vance training is a key factor, too often neglected in American social programs. After the preliminaries are well under way, the flew program is introduced gradually, starting in one part of the country or one type of school and expand- ing to national coverage as trained personnel emerge from the special courses. The entire program is reviewed after it has been in operation for a stipulated number of years, but modifications may be made by the executive agencies without recourse to legislative action within the experimental period. 82-043 0 - 77 - 4 PAGENO="0050" 46 FOREIGN AND AMERICAN EXPERIENCE WITH THE YOUTH TRANSITION' Beatrice 6. Reubens INTRODUCTION During most of the 1960s, youth unemployment was not a major concern of Australia, 3apan, or the countries of northwest Europe, and their perceptions of the transition from school to work therefore lack the American emphasis on this aspect. Having lived through earlier periods of high unemployment that overwhelmed programs to ease the movement from `school `to work, most of these countries believe that full employment conditions and general economic vitality are the key to holding down youth and other unemployment. In fact, rising unemployment is perceived as an external force that is disruptive of efforts to provide effective transition services, and these in turn are seen as having at best a marginal influence on high unemployment rates. Under the benign influence of a strong demand for young workers, many of these countries have developed elaborate systems `of' transition services-~.information, guidance, placement, induction, and follow-up. The purpose of these systems is to facilitate the adjustment of the individual and, in some countries, to meet national manpower needs as well. Labor shortages have given many young people opportunities to choose among jobs and to enter the occupational hierarchy at higher levels than would be possible in less favorable times. For this reason and perhaps because class divisions and traditions are stronger abroad, the American preoccupation with providing adult-type jobs for youth has made only slight inroads. In Sweden, moreover, where egalitarianism Is highly developed, youth are not regarded as discriminated against if they are directed to "beginners" jobs. If such jobs must be done in society, youth are considered the most suitable candidates, both in terms of their later opportunities and their lesser need for incomeS before they establish families. Equality for women in the labor market takes precedence in any case. Reflecting national attitudes, recent Swedish analyses of the low- income population omit earners under 25 years of age. Given the educational advantage over their elders that most of today's youth enjoy, many Swedes see the problem as one of aiding the older worker and improving work generally. Efforts in this direction, from which young workers also benefit, are said to have reduced new entrants' bias against blue collar jobs. In FROM SCHOOL TO WORK: Improving the Transition. National Commission for Manpower Policy. Washington: GPO, 1976. PAGENO="0051" 47 In some of the foreign nations, new entrants are eagerly sought by employers who are willing to take youngsters without occupational skills or previous work* experience; japan, Great Britain, West Germany, Switzerland, and Austria are among the countries where the transition is eased because empl9yers recruit young people straight from school and provide training for at least a portion of them. This acceptance of youth is less common in Belgium and France, for example, and it is even less visible in the United States, where both employers and trade unions exhibit little interest in absorbing the new entrants to the labor market. The transition abroad is viewed primarily as a movement from full- time school to full-time work; the significance of vacation and part-itime jobs is discounted. The emphasis has been on the sharp and abrupt change in environment for 15-to-16-year-old adolescents. facing physical, social, and psychological maturation problems at the same time. In contrast, the American perception, expressed recently by Willard Wirtz in The Boundless Resource, is that most of the young people approaching the transition are not only in school but also already in the work force. The Europeans may modify their conception of a once-and-for-all transition as increasing opportunities to return to education are offered in those countries and as more young people hold part-time jobs while attending school. In some countries the academic demands of school together with government financial support to young people who continue education beyond the legal minimum age, especially those in low-income families, limit the number who simultaneously participate in the labor force. Because we in the United States have equated a good transition primarily with low youth unemployment rates, it is necessary to consider the extent and causes of youth unemployment in the various countries in comparison with the American experience. It is important also to review current experience with the transition in several countries because problems have arisen that resemble those the United States has had for some time. The efficacy of foreign apprenticeship, differential youth wage rates, and transition services will be explored. Finally, the policy initiatIves of foreign countries will be described and evaluated in terms of their relevance to the American situation. YOUTH UNEMPLOYMENT RATES Comparisons of youth unemployment rates rest in the first instance on the differences in overall rates that remain among countries after conceptual and methodological variations in the data are minimized. Ta- ble I presents the range of total unemployment rates in the period 1960- 74 for nine countries, together with the average annual growth rates of GNP, the civilian labor force, civilian employment, and the teenage labor force. Of the three countries with a substantial increase of the labor force, only Australia managed to maintain low unemployment rates. Canada and the United States, unlike Australia, were under pressure from PAGENO="0052" 48 Table I Average Annual Rates of Change in Real GNP, Civilian Labor Force, Civilian Employment, and Teenage Labor Force.; and Low and High Total Unemployment Rates, 9 Countries, 1960-74; Projected Annual Rate of Change in Teenage Population, 1965-80, 1975-85 Country Total Unemployment Rates Low High Real GNP Civilian Labor Force Civilian Employ- ment . Teenage Labo,~ Force d Teenage Population 1965-80 1975-85 United States Out-of-School In-School Australia Canada France .W. Germany Italy Japan Sweden . Great Britain 3.5 -- 1.3 3.6 1.3 .3 2.7 1.1 1.2 2.0 6.7 -- 3.0 7.1 3.1 2.1 4.3 1.7 2.7 4.2 3.8 -- 5.2 5.3 5.6 4*4 5.1 9.5 3*8~ 2.7 2.0 -- 25a 3.0 1.1 0e -.5 1.3 .8 .2 2.0 -- 25a 3.0 .9 0e -.5 h3b .7 .1 4.4 3.3c . 100C 04a 4*3b -3.4. -4.0 -6.0 -2.2. l.7~ 1.5 28C 49C 2.0 -.3 2.0 -1.8 -.9 .7~ -1.6 5 -1.7 .1 .8 1.2 1.1 1.1 .8 SOURCE: U.S. Department of Labor, Bureau of Labor Statistics, Office of Productivity and Technology, Division of Foreign Labor Statistics and Trade, supplemented by Manpower Report of the President (1975), Tables B-6, B-?; Great Britain, Department of Employment Gazette (July 1975), p. 658. Note: BLS data are adjusted to international concepts. Changes from 1960 to 1974 computed by least squares. a196474 b196174 c1960~.73, October data only. Manpower Report of the President (1975), Tables B-6, B-?. d1965_80~ OECD, Conference on Policies for Educational Growth (Paris, 1970), UN.STP(70) 6, Annex Ill, pp. 121-23. * eNegligible. tUnited Kingdom. ~According to national definitions, teenage, labor force 15-19, except 14-19 in Italy and 16-19 in U.S., France, Sweden. hMh 1963-73. `October 1960-May 1973. ~l96l-7l. Corrected census of 1961, censUs of 1971. Department of Employment Gazette (July 1975), p~ 658. PAGENO="0053" 49 a fast-growing teenage labor force, which undoubtedly contributed to higher rates of both overall and teenage unemployment. The projected `teenage population for 1975~85 shows a reversal of position among the countries, with potential effects on unemployment. The low unemployment rates of the European countties and 3apan from 1960 to 1974 were achieved under conditions of slow or negative growth of the total and the teenage labor force, even after foreign workers are counted. Indeed, it is often overlooked that these countries created relatively fewer net new jobs than did the countries that had high unemployment rates. Among the latter, the United States had an unusually high rate of job creation in view of its low rate of increase of GNP. Qualitative differences in the type of jobs created are related to the amount and incidence of unemployment. Some countries shifted their labor force from low productivity agriculture to high wage manufacturing, whereas others, like the United States, had the greatest rate of increase in service sector employment, with many part-time, low-level jobs added to the total. For comparative purposes, the most meaningful measure of teenage unemployment - is the ratio of teenage unemployment rates to adult or total unemployment rates. Although there is less objection to using unmodified national statistics in this computation than in unemployment rates as such, it is still true that international comparisons are best made from ratios derived from unemployment rates that have been standardized according to international definitions. The U.S. Bureau of Labor Statistics has pioneered in this work; Table 2 presents the available data which unfortunately are not reliably comparative before 1968. Eyen in the standardized version, it should be noted that the lower age limit for teenagers varies somewhat. Possibly the Italian figures should be adjusted to exclude 14-year-olds, who are legally allowed to leave school but may not be legally employeduntil they reach 15; as a consequence 14-year-olds show unemployment rates of over 40 percent. The ratios in Table 2 indicate that the United States and Italy were at the high end of the range in 1968 and 1970. But more recently the ratios have exhibited a rising trend in other countries, notably Australia and Sweden, which surpassed the U.S.' by 1974, as indicated by Table 2; also in France, Britain, The Netherlands, Finland, and other coqntries, according to national data. This trend has caused concern in several countries about new youth problems, described below in greater detail. Unemployment rates capture inadequately the full range of unem- ployment' difficulties experienced by youth. A full assessment would also include comparative data, presently hard to come by, on the duration of unemployment, changes in labor force participation rates, involuntary part-time work, and underemployr,ent. These factors are of particular interest during a cyclical downturn, when youth in many countries are disproportionately affected. At this point, however, comparative infor- mation is available chiefly about youth unemployment rates. PAGENO="0054" 50 Country Age Teenage Unemployment Rates - - Ratio of Teenage to Adult (25-541 Unemployment Rates 1960 1965 1968 1970 1974 1975 196* 1970 1972 1973 1974 1975 United States ~ In-School Australia Canada France V. Germany Italy 3apan Sweden d Great Britain 16-19 16-19 16-19 15-19 15-19 16-19 15-19 14-19 15-19 16-19 15-19 14.7 15.6 10.0 l3.l~ 6.6 9.3.,, 1.5 0.8 14.8 13.3 10.9 8.8~ 5.1 10.3 1.5 2.9 1.5 12.7 12.3 10.9 4.2 11.3 7.6~ 3.8 13.6 2.3 5.6 3.0 15.3 17.2 15.7 .3.9 14.3 7.O~ 2.0 12.9 2.0 4.5 44 16.0 14.6 19.4 6.9 12.2 1.8 18.4 2.6 6.8 42e 20.2k' . 57' 5.5 4.2 3.1 4.0 3.5 6.2 2.3 3.3 4.5 3.9 3.3 3.9 4.0 7.2 2.2 4.1. 2.l~ 9.7 . 3.6 4.2 4.6 3.2 2.4 5.2 3,1h . 6.3' Teenage unemployment rates, as shown in Table 2, suggest some positive correspondence to the rate of change in the teenage labor force (Table 1) and the teenage share of the labor force (Table 3). But several countries with a negative or low teenage labor force growth and a small proportion of the labor force in the teenage category-.-for example, France, Italy, and Sweden--have substantial youth unemployment. For the United States, the interesting feature is the closing of the gap between the unemployment rates of in-school and out-of-school youth; in 1974, as Table 2 indicates, the in-school rate surpassed the out-of--school rate, reversing thehistorical trend. The American concern with em~!oyment and unemployment among in-school youth is unmatched elsewhere. Wo other country has so large~ a proportion of those in school also in the labor force during the schOol year Table 2 Teenage Unemployment Rates and the Ratios of Teenage to Adult (25-54) Unemployment Rates in 9 Countries, 1960.75. SOURCE: National data for 1%0, l%5, 1975.For 1968-74 (except British unemployment rates), U.S. Department of Labor, Bureau of Labor Statistics, Office of Productivity and Technology, Division of Foreign Labor Statistics and Trade. Note: 1968-74 4ata adjusted to international concepts, except for British unemployment rates. aDet~r data only for 1960-70. Manpower Report of the Prestdent (1975), Tables 6-6, 6-7. Data for 1974 is annual average. Monthly Labor Review (November 1975), p.8. bØff ice of the Prime Minister, Bureau of Statistics, Annual Report on the Labor Force (Tokyo, 1969). c14-19 Dominion Bureau of Statistics, Special Surveys Division, unpublished. e1973, dMales only in July~ Manpower Services Commission, There's Work to be Done(London: HMSO, 1974), p. 28. 8bata for March. ~Data for April in 1968 and 1970 and May 1973. April 196* rate may be too high due to change in date of ending school year. hAverage 3anuary-September 1975. 1Second quarter 1975. `April 1971. PAGENO="0055" 51 or counts them so meticulously, even if they work a few hours a week. Some countries count students as in the labor force when they seek or hold vacation jobs, but others omit even these students, and few actually count them during the school year. Thus, in most countries, teenagers are of no concern unless they have left school. As Table 4 indicates, many countries have substantially higher proportions of the age group out of school than is evident in the United States. Over the years, the trend in the U.S. has been for a sharper rise in the number .of in~school teenagers who are included in the labor force than has occurred among out-of-~school youth (from 1,492,000 in 1955 to 4,360,000 in 1973 for the enrolled, against 2,640,000 in 1955 to 3,949,000 in. 1973 for the nonenrolled). Table 3 indicates how much of the pressure for jobs comes from the in.school teenagers and how it has grown since 1960, while the share of the labor force attributable to out.of-.school teenagers was lower in 1974 than it had been in 1960. If all American inS- school teenagers who were reported as unemployed in October 1973 were removed from the ranks of the unemployed, the total number of teenage unemployed would be decreased by almost 54 percent, the annual average unemployment data for 1974 show a smaller reduction, 35 percent. The importance of the American in~schoøl teenage labor force is indkated in a comparison with Great Britain. If in~school teenagers are not counted as part of the labor force, the 1972 participation rate of American 16.to-17~.year.olds declines from 39.4 percent to 6.6 percent. But a similar calculation for 15..to-17-~year~olds in Britain in 1972 reduces the participation rate much less: from 66.2 percent to ~0 percent. Certainly, for comparative purposes, all American data should distinguish between in-school and out-of-school teenagers. But it can also be argued that it is time for American policy to take a hard look at the distinct characteristics and needs of the two groups and to consider the possibility of separate treatment on a larger scale than has heretofore been attempted. Given the size and intractability of the youth unemployment problem in the United States, the competition for jobs between the two groups, the community needs that youth can meet through organized job creation, and the social costs of idleness, it would seem useful to divide the teenagers according to their educational status. Another division that suggests itself, both for statistical and policy purposes, and for all countries, not just the United States, is between younger and older teenagers. The undèr~-18s have a different experience in most countries than the 18-to--19-year-olds. In fact, most countries did in the past make such a distinction in their data collection. Unfortunate- ly, under the impact of American and international agency statistical influence, a good deal of this information no longer is processed, and all the under-20s are put in a single group. The major difference between the two age groups in the United States is that the overwhelming proportion PAGENO="0056" 52 Table 3 Teenagers as a Percentage of the Labor Force, 9 Countries, 1960, 1970, 1974, and Estimate for 1980 - Country Age 1960 1970 - 1974 ,. 1980 est. -~ United States Out-of-School In-School Australia 16-19 16-19 16-19 15-19 7.0 4.2 2.8 14,3a 8.8 ~ 4.9 12.1 9.7 2.8~ 6~9g 11.5 8.2i Canada France 15-19 16-19 94b 8.0 * 6.2 11.1 5.1 W. Germany 15-19 11.0 8.4 7.7 Italy 14-19 12.2 8.1 7.2 3apan Sweden Great Britain 15-19 16-19 15-19 10~1d 8.8 jo~9e 5.9 5.7 86e 3.6 5.9 h 5*lf 7.1 SOURCE: U.S. Department of Labor, Bureau of Labor Statistics, Office of Productivity and Technology, Division of Foreign Labor Statistics and Trade. Note: BLS data are adjusted to international concepts. a1964 bMh 1963 and March 1973. CMay 1973. d1961 eCensuses of 1961 and 1971. Department of Employment Gazette (October 1975), p.982. ~Estimate for 16-19 in 1981. Department of Employment Gazette (December 1975), p. 1260. 8Mohthly Labor Review, (November 1975), Table 5, p. 8. h1519, Central Statistical Bureau (SCB), Labour Resources 1965-1990 Forecasting Information, 1971:5, p. 70, Appendix Table E. `Denis F. 3ohnston, "The U.S. Labor Force: Projections to 1990," Monthly Labor Review (3uly 1973), Table 1. PAGENO="0057" 53 Country Year Age -~ -- 16 17 ~- 18 ~ 19 -- United States ~- 1970 -.-.-- 94.1 86.9 58.1 45.4 Australia 1972 54.9 36.3 18.0 10.7 Belgium 1969 70.8 52.8 36.7 25.6 Canada 1970 87.1 69.0 45.5 30.3 France 1970 62.6 45.5. 30,6 21.8 W. Germany 1969 31.3 19.2 12.9 9.6 Italy 1966 33.6 27.4 19.7 11.0 lapan Netherlands 1970 1972 80.0 68.7 74.8 46.3 29.5 28.8 22.0 18.3 Norway 1970 71.0 50.3 40.6 28.9 Sweden 1972 73.7 60.7 40.7 24.0 United Kingdom ~,,. .. 1970 41.6 ,,. 25.9 17.4 .~ 13.7 , of 16.~to..17-year-o1ds are in school (89.3 percent in October 1973 and 63.2 percent for the whole year 1974). But most 18-to-19-year-olds are out of school (57.1 percent in October 1973 and 68.2 percent for the whole year 1974). Moreover, 83.4 percent of the 16-to-17-year-olds in the labor force in October 1973 and 46.4 percent throughout 1974 were also in schàol, against under 30 percent for the 18-to-19-.year-olds in October 1973 and only 16.4 percent in 1974. More of the 16-to-li-year-old unemployed are in school than out, but the reverse is true of 18-to-~19-year-olds. Such differences are significant enough to warrant separate policy initiatives for the two age groups, apart from differences in treatment according to educational status. American interest in minority youth is stronger than is the concern `in other countries. In fact, other countries have little to teach us on this subject, either because they have few problems or because they have not yet recognized or researched them. Britain has followed us closely in awareness and action on their minority youth, whose problems are a mixture of racial discrimination and immigrant status. Many British were disturbed to learn through their 1971 census that teenagers born in the West Indies had an unemployment rate of 16.9 percent, while all teenagers had a 7.6 percent rate. This ratio is of the sanie order as the American ratios between white and nonwhite teenage unemployment rates in recent years. Table 4 Percentage of 16-to - l9-Year-Olds in Educational Institutions, All Levels, Both Sexes, Selected Countries, Recent Year, 1966-72 SOURCE: OECD, Educational Statistics Yearbook, vol. 2, Country Tables, (Paris), 1975, passim. PAGENO="0058" 54 Differences in youth unemployment rates according to sex and residence concern most countries. It is difficult to say why girls in one group of countries consistently have lower unemployment rates than boys, while in another group of countries the reverse is true. The lack of service sector jobs, family attitudes influencing girls to remain at home, less geographical mobility, more leisurely job search, and similar factors have been suggested as explanations for higher rates for girls in France. Almost universally, rural youth are seen as at a disadvantage and have higher unemployment rates even, after large numbers of them have moved out of the countryside. The large regional differences that are a serious problem in most other countries are less apparent and certainly less discussed in factual or polic.y terms in the United States. Some of the foreign countries have developed noteworthy programs to cope with the needs of youth, usually over 18, who must move elsewhere. NEW ENTRANTS Thus far the comparative information presented on teenage unem ployment has not distinguished between new entrants and other young people. Yet the concept of the transition implies that special attention should focus on the experience of those who are seeking their first full- time jobs after leaving full-time education. The data on new entrants--while not so complete, recent, or com- parable as might be desired--are valuable because they depict the situation of the. entire cohort of new entrants, not just the unemployed segment, and provide a longitudinal instead of a cross-sectional view. My comparative analysis of these data, focusing on the length of time taken by new entrants~ to locate their first full-time jobs, yields the following findings: * A substantial proportion of teenagers enter their first jobs without suffering any unemployment at all. Since the jobs they locate while they are still at school appear to be .equal to or better than those found by comparable classmates after leaving school, doubt is cast on the the- oretical job-search model that assumes the necessity for unempoyment as the setting for job search. * Countries vary markedly in the proportion of young people who succeed in prearranging their first jobs and thus avoid* entrance unem- ployment. Among the countries for which data are available, lapan and Great Britain are outstanding in the consistently high proportion of prearranged first jobs. The active interest shown by employers in recruiting new entrants and the existence of formal training arrangements are the primary factors, but it is also important that the social atmosphere and views of parents, young people, and the community encourage a prompt entrance to work after school ends. The timing of the PAGENO="0059" 55 end of school, especially in the 3apanese case where the term ends in the spring, permits jobs to be started at once; on the Continent, the closing down of large portions of the economy during 3uly or August induces many young people to delay the permanent job search for several months, relying on temporary vacation jobs even after they have left school. Although the impact is difficult to measure, the presence of relatively strong, comprehensive and employment-oriented transition services, in- cluding placement assistance, appears to be conducive to prearrange- ment. Finally, a favorable economic climate encourages prearrangement, whether we compare successive periods or various regions or types of labor markets, within a single country or among countries. * *The length of time taken to find the first full-time job is positively related to the level of job sought and inversely to the readiness to accept a temporary solution until something better is available. Teenagers with more than the minimum education are more. likely to delay their acceptance of a first job than are early school-leavers, whose options and ambitions are more restricted. A dowAward revision of occupational aims may shorten job-search time, and so may a wider geographic search area. * Countries also vary in the proportion of new teenage entrants who take an exceptionally long time to find a first job. Comparing countries with roughly similar conditions, one is led to the conclusion that the existence of strong transition services may shorten the entrance unem- ployment of the disadvantaged or handicapped youngster, those at the minimum educational level, those whose occupational aims are higher than the achievement of their relatives and peers, and those who canr~ot find work close to home. The existence of programs for youth beyond the standard transition services--remedial, social service, `training, intensive counseling--also plays a role. Following upon labor market entrance, a second aspect of unemploy- ment in the transition period is job-changing. Again, many analysts stress the unemployed and omit the significant proportion of job-changers who achieve a shift of employers without losing work time, usually because they have arranged for the new job while still on the old one. The following conclusions may be drawn on job-changing: * A tight labor market fosters both higher rates of voluntary job- changing and higher proportions of job-changers who experience no unem- ployment. * Voluntary job-~changers tend to have less unemployment than those who are dismissed, whether for personal behaviOr or economic reasons. The ratio between voluntary and involuntary job-changing, therefore, is an important predictor of unemployment associated with job-changing. PAGENO="0060" 56 * American teenagers who are full time in the labor market appear to change jobs somewhat more frequently than do youngsters in other countries, allowing for differences in the tightness of labor markets. A suspected but unmeasured differential is the willingness and economic ability of teenagers in various countries to abstain from job search between jobs. * In most countries, teenagers in formal training positions, such as apprenticeship, tend to leave jobs less frequently than do others, at least during the training period. * Youngsters in other countries may accept and remain with inferior jobs in the secondary labor market more readily than American youth, but when they do leave such jobs they experience less unemployment between jobs than American youth. There is a great need for more longitudinal data and analysis for a whole cohort of new entrants through their first years in the labor market in individual countries and across countries. The Ohio State University longitudinal studies of youth and some of the educational follow-up studies have the potential of providing this information for the United States. It should then be possible to discuss the transition and its accompanying unemployment more accurately. TRANSITION PROBLEMS It has been indicated above that several countries have observed a deterioration in the relative position of youth in recent years and an emergence of education and employment problems among specific groups of teenagers. Certainly there still are other developed countries that have fewer, different, and less severe transition problems that does the United States; an array of countries according to the difficulty of the transition might still place the United States and Italy at the high end. But in the harsh light of 1975, as new structural problems have been intensified by deep recession in several countries, it appears that the favorable experience of the 1960s may become increasingly irrelevant as other countries discover American-type difficulties and, in a sense, catch up to us. Of course, not all countries have reached this stage, and some, Denmark and West Germany for example, are treating the issue as cyclical, soon to be eliminated by a return of favorable conditions. However, analyses by academics in these countries identify more deepS seated problems, akin to those we describe. Evidence of widespread concern about the transition is provided by current studies and proposals on youth by the international agencies.2 These reports are reminiscent of the earlier flurry of interest in youth problems when the 1967-68 European recession intensified the pressure of the postwar baby boom generation. But the current documents, PAGENO="0061" 57 especially, from the Organization for Economic Cooperation and Develop- ment (OECD), reflect a more profound unease about alienation of youth from the adult world, deficiencies in the preparatory process, weaknesses of transition services, inadequacies of the employment world that youth enter, and uncertainty about future economic developments. Unemploy~ ment is only one aspect of the problem. Even more telling is the growing attention in individual countries to the changing positior~ of young people who leave school at the minimum legal age, often without earning diplomas or taking examinations. To be sure, several foreign countries also are troubled by the employment problems of upper secondary and university graduates, especially those majoring in the arts or the humanities. But the main focus of policy is on the young school4êavers who enter work directly. The situation of this group and the numbers involved vary from country to country according to the structure of the educational system and the training-employment opportunities open to those who leave school at the earliest time permitted by law. In Great Britain, where compulsory schooling ends at 16 and most young people enter work at that age, the problem group has been identified as those boys and girls who start work early, usually have no academic qualifications, and receive little or no training in their initial jobs. Constituting a high proportion of all under-18s who annually enter work from school, this group engages in simple, monotonous jobs offering little prospect of advancement. Certain subgroups have particularly severe transition problems that are not defined solely in terms of higher unemployment rates; British analyses have pinpointed minority youth, the disabled, the educationally subnormal, delinquents, and those whose attitudes or behavior create employment difficulties. France terminates compulsory schooling at 16, but a majority of young people go on to do further studies. Many enroll in public or private vocational education or enter apprenticeships that can lead to specialized occupational certificates, achieved through government controlled exam- inations. The problem group, therefore, is first of all those who enter the labor market with no education or training beyond compulsory school. About one-fourth of young people who annually enter the labor market have been placed in this category, but more recent data for mid 1974 suggest that it may be as little as 6 percent. In.addition, those under 18 who drop out of their vocational classes or fail to pass the occupational examinations are classified as likely to have trouble. At any educational level, French research has concluded, ease of entry into working life is more closely related to prior acquisition of specific occupational skills than it is to the level of educational achievement. Other studies of French youth stress the "allergy to work," the "marginalization" of youth, the indifference to choice of occupation, and the dislike of blue collar work. PAGENO="0062" 58 Sweden's recently reorganized educational system established a unified upper secondary school to follow the 9-year compulsory school that ends at 16. Anticipating that 90 percent of the 16~year-oId group would complete at least a two-year course offering occupational prepara- tion in upper secondary school, planners confined the compulsory school curriculum to general education. Research indicates, however, that 25 to 30 percent of the 16-year-olds now leaving compulsory school do not proceed directly to upper secondary school, and that 15 percent of those who do enter immediately drop. out in fairly short order. Although considerable numbers seem to return to school, their intervening labor market experience is difficult, and they, especially the girls, are considered a problem group. In Canada, the difficulties affecting youth who leave school before achieving a high school certificate are aggravated by severe regional disparities in opportunity. In' the Atlantic provinces particularly, it is taken for granted that youth must migrate; in other provinces, rural youth also must leave home to find work; and the influx into prosperous British Columbia of youth from the east is said to be excessive, increasing the area's youth unemployment. Regional employment problems are serious for youth in France, Great Britain,. and othercountries as well. Norway, whose compulsory schooling has recently been raised by two years to age 16, has encountered a problem .group even bef öre compulsory school ends. About 20 percent of the 14-and 15-year-olds have been identified as deeply resistant to the prolongation of school. They are considered to be a present educational problem and a potential labor market problem. The country profilessketched above are indicative of some common conditions, familiar also in the United States. Without exaggerating the uniformity among cOuntries, it can be said that the prolongation of education, whether voluntarily or by statute, has left a residual group that, for a variety of reasons, is unwilling .or unable to complete more than a minimum of schooling. They are disadvantaged even within the category "working class," the traditional European designation for limited opportunity.. Besides those who do not achieve the minimum academic quali- fications, disadvantaged youth commonly include the physically and mentally handicapped; those with social or psychological inadequacies; members of ethnic, racial, or cultural minorities; immigrants with language and cultural difficulties; and residents of rural, isolated, or depressed areas. Of course, there is considerable overlap among the groups, and multidisadvantaged youth have gained attention in a number of countries. ... . The European perception of the problem group is narrower than the American, expressed in the coverage of this book, which designates the group at risk as all young people who do not plan or who will not complete PAGENO="0063" 59 a four-year college education. Other countries are focusing on a younger, less educated, and more particular segment. It is possible that the American net has been cast too wide and that Europeans would consider a substantial part of our high school graduates successful in the transition. Explanations of the emergence of the problem groups in Europe stress changes in the labor market for youth. The decline of employment in industries and occupations that disproportionately attracted youth with low academic attainment, as well as the elimination of youth jobs, such as messenger, "butcher boy," "tea boy," has been singled out in Britain. In Sweden, only temporary, fill-in jobs are said to be available for those under 18 who have not completed at least the two-year upper secondary course; the recent labor market entry of large numbers of older women has been adverse to young girls. While many new youth jobs have been created, especially in the service sector, these jobs usually require higher academic skills and are not a substitute for the low-level entry jobs that absorbed those early school-leavers who obtained no diplomas or passed no examinations. It has also ben noted in Britain that the valuable post of junior operative, formerly open to 15-year-oids and leading to skilled status, is disappearing or is reserved for 18-year-olds As continuous processes, shift work, weekend work, and heavy capital investment become common in manufacturing, employers have raised the minimum age of recruitment (although not to 21, as is reported to be the minimum in the United States), asked for higher academic credentials, or required prior training or work experience. Apprenticeship openings have declined drastically in West Germany, and the number of apprentices in training has decreased in Great Britain in construction, shipbuilding, and engineering, the most. important industries for apprenticeship. Moreover, such apprenticeship programs as those for British girls in hairdressing, and many of the German programs that piace youngsters in small stores, workshops, offices, or artisan trades, are being challenged as offering poor training, inadequate pay for production work, and no real future in the chosen occupations, necessitating job changes during or after apprenticeship. The developments in European apprenticeship suggest that as businesses are increasingly organized on American lines and as young people stay in school beyond 16, the desire of employers to train young people as well-rounded craftsmen in formal programs will diminish. Such aid in the transition as youth obtained in countries where apprenticeship or formal training programs have been well established (by no means all European countries), may become less significant, in manufacturing especially. Some European countries now seek to create modified or substitute mechanisms rather than trying to expand traditional appren- PAGENO="0064" 60 ticeship. Although we may not have reached the upper limit of American apprenticeship in the fields where it is viable, we should beware of enthusiasts who call for an extension of apprenticeship into occupations where it has never existed in the United States and where it is now disputed in Europe. The attitudes toward training and work of some young people also are cited as a barrier to employment in severa' countries, though the issue is not confined to any particular educational level. In any case, the dirty, menial work that is distasteful to youth are the jobs most likely to be offered to the problem group. It is unclear how important the attitudinal factor is in youth unemployment when the demand for young workers is strong. The admittedly superior information and guidance services abroad have not succeeded in altering the attitudes or behavior of this segment of * youth . Deliberate abstention from the conventional labor force has been a negligible factor everywhere except perhaps in the United States and France. Another development abroad that has adversely influenced the position of new entrants in general and disadvantaged youth in particular is the growth of protective legislation and practices that guarantee employment security for workers already employed. In the European countries where such measures are most advanced, employers hesitate before hiring new workers because they will be virtually bound to keep them for life. Swedish labor market experts have spoken of the unintended creation of internal labor markets as a result of such legislation and of its inhibiting effects on an active labor market policy as well as its adverse effects On new entrants. The costs of employing young workers abroad have also changed. During the period when foreign teenage unemployment rates and ratios appeared to be definitely lower than ours, American analysts sought explanations in foreign institutions.3 Among the factors singled out, other countries' systems oi differential wage rates for youth were prominent. The legal provisions, traditions, and collective bargaining contracts that stated that youth of various ages should receive a fixed percentage of adult wage rates were frequently cited as evidence that japanese and European youth represented relatively cheaper labor for their nations' employers than did American youth under our uniform minimum wage act. These comparisons failed to provide evidence on several critical points: the actual earnings of youth abroad, the trends in those earnings, and the ratio of earnings of American youth to those of adults. Preliminary comparative study of youth earnings abroad suggest the following conclusions: * Despite the existence of various types of fixed wage differentials for youth in foreign countries, the actual postwar movement of earnings has been more in favor of youth than of any other age groups. The upward PAGENO="0065" 61 trend of youth wage rates and earnings has proceeded steadily and has been only slightly retarded in periods of recession. -In Great Britain, the average hourly earnings of boys of 15 to 21 have moved from about 35 percent of adult male earnings in 1947 to 44 percent in 1959 to well over 50 percent in recent years. * Youth earnings in the United States probably are not a higher per-j centage of adult earnings than is the case in other advanced nations, though comparable, detailed data are scarce. * Several countries report a growing reluctance on the part of employers to hire young workers because there already may be a cost disadvantage if training and induction costs are included. Dutch and Swedish employers have cited the rising relative wage costs of youthful workers as an obstacle to their employment. * Apprentice wages in Britain have in some cases equaled or exceeded those of comparable young workers. In other countries where apprentices are paid educational allowances, these have risen so sharply that they seem competitive with~.~ wages. * A recent British finding that employers do not consciously consider wage costs for young people when fixing their recruitment policies, presents an attitude that may be rare among American employers. ~apane~e employers appear to react much as the British do, though they have organized to hold down the advance of youth wages. * American theorizing about minimum wages and the potential increase of employment that might result from introducing youth differentials has paid too little attention to the extent to which actual youth earnings have come to exceed the legal minimum. Foreign experience suggests that the efficacy of legal or negotiated wage differentials for youth is limited when economic and social forces exert upward pressures on actual youth earnings. This brief survey of some changes in the youth labor market and in the institutions that had been credited with easing the transition from school to wprk suggests that foreign experience must be weighed carefully. Backward glances at the conditions of the mid 1960s are largely irrelevant. If some countries still seem to operate according to the rules of an earlier time, they are either lagging behind or are so special that their experience cannot be taken as a general model. At the same time, in those countries that are now experiencing structural difficulties among youth the situation has not yet developed fully; they are still in the midst of exploring their situation and what can be done about it. 82-043 0 - 77 - 5 PAGENO="0066" 62 FOREIGN POLICY INITIATIVES DEALING WITH TRANSITION PROBLEMS In examining the policies of foreign countries directed toward problems of transition, preference will be given to programs that deal with structural rather than cyclical issues, although in practice the two overlap and intermingle. It also is desirable to draw more heavily from the policies of countries whose problems are akin to those of the United States, even though their policy initiatives are still at the experimental stage. The most advanced European countries are not notable for discussing or implementing ideas that are unknown in the United States. On the contrary, they have paid particular attention to American experience and programs because we have had more time in which to confront the difficulties that they have recognized only in the past few years. It is fairly easy for the informed visitor to these countries to identify programs whose inspiration comes from across the Altantic or that are similar to ours although independently derived. Where some of these countries do differ from us is in the greater commitment to full employment, the attempt to address basics issues rather than rely on patch-up approaches, the intensity of their effort, the important role of the central government, the pooled and cooperative action of the relevant departments of government, the application to the entire country of tested principles while allowing for local variations, the comprehensive and interlocking programs on all aspects of the transition, the close resemblance between announced and delivered programs, and active participation by employers and trade unions. For all that, no other country's programs are transferable intact to the United States; they can be examined more profitably in individual segments within a broad view of the transition. One may discuss sepa- rately issues and policies that arise during the preparatory stage, in the transition services, and at full-time entry into the labor force. Preparation for Work * Recognition that school-weariness affects a significant proportion of young people has led to various plans to relieve some 14-, 15-, or 16-year- olds of the standard kind of education. The pervasive rejection of school in other countries calls into question our etpectation that all young people should be willing to remain in school, even in the types that do not rely wholly on the classroom, until they are 18. At a minimun, the legal leaving age of 16 in most states should coincide with the end of a recognized stage of education, instead of signifying dropping out. It is admittedly difficult to devise acceptable alternatives to school for all who might prefer them. PAGENO="0067" 63 Norway is experimenting with placing 14.year.olds with employers, providing some basic education on a part-time basis, and permitting those who complete that program to obtain leaving certificates from compul sory school that entitle them to continue their education at the next level. France has a preapprenticeship year in which youngsters are supposed to spend half the day in school and half the day with an employer, who presumably will subsequently offer them a regular apprenticeship con- tract. Complaints have been heard that many youngsters simply end up with half-time school, having failed to arrange apprenticeship places. Any arrangements involving employers as supplements to the educational system require careful supervision by the educational authorities. In their disillusion with school, many influential Americans have expressed uncritical and unfounded faith in the work place as a substitute. In Sweden the authorities are devising new types of school courses to attract and hold the 16~year-olds who are now avoiding upper secondary school or dropping out. Presumably these courses will be shorter than the regular ones, perhaps three month units offering credit that can be cumulated, even with interruptions of school. Arrangements for practical experience also are being worked out to suit the restless young people who constitute the problem group. The Swedish opinion is that completion of the equivalent of two years of upper secondary education is an indispensable requirement for survival and progress in the coming labor market. It remains to be seen whether the opportunity to complete this education. over a longer time period with approved breaks will reduce the hostility to school as an institution representing childhood. West Germany's recession program for unemployed young school-leavers who lack academic credentials offers a second chance to achieve a diploma; but it has attracted few youngsters, even with the promise that successful candidates would be assisted to obtain apprenticeship places that require the acedemic credentials. A similar program in France has had a poor response, even with a monthy payment to young people. In the long run, the most serious and intractable problem may be the conflict between the desIre to prepare every youth to rise above a dead- end job and the inability to instill the required qualifications. This failure may forestall the need to come to grips with the equally troubling questions: How can enough "good" jobs be provided and who will do the necessary but menial tasks? * The. institution of several graduation dates throughout the year and particularly the gearing of these dates to periods when permanent jobs are most likely to be available and vacation job-seekers are not on the scene would be a sensible change from the long-standing and outmoded timing of the school year to fit agricultural needs. Sweden has introduced staggered release dates for its military conscripts and is considering the same for schools. PAGENO="0068" 64 * The best American cooperative education efforts are in advance of most European practice and have been studied by such groups as the Swedish Employers' Association. Work experience as a method of pre- paring for and obtaining full-time employment also is more highly developed in the United States than it is abroad. * Community service projects as a means of occupying in-school youth or idealistic young people out-of-school have been developed in various countries, but Canada has been cited for its variety and success with these. The most recent recession budget, however, eliminated funds for some programs. * Vocational education is debated everywhere. The question of when, where, and how to provide occupational skills is under active discussion in many countries. Some attention might be given to the experience of the Swedish upper secondary school with its occupationally specialized programs superimposed on an academic core that, permits university entrance; and its new program for "Praktik," which provides practical experience in industry prior to taking up full-time work. Transition Services * The necessity for effective transition services--information, guid- ance, placement, induction, and follow-up--is generally recognized, but wide differences exist in the scope of services, the resources, staffing, organization, and activities. The countries that seem to have the most effective services--3apan, West Germany, Sweden--offer a comprehensive list of services, organize the transition from the national government down, do not rely on independent schools and their personnel to initiate and carry out activities without outside supervision, use bridging agencies that strongly involve the labor market authorities, and integrate youth services with those for adults. Martin Feldstein's repeated recommendation4 that the United States should introduce the British system of a separate, specialized transition service for youth that is independently organized by the local education authorities is open to criticism on several counts. It is based on inaccurate and outdated information about the British system; it ignores the dissatisfaction within Britain; it assumes greater impact by these transition services on youth unemployment than the purveyors and analysts of the services would claim; and it seems unaware both of the rejection of the British system by other countries and the more effective models offered elsewhere. * No matter how superior the transition services of another country may be to those we currently offer, even the best existing programs have serious deficiences. To begin with, it is inherently difficult to provide effective official information and guidance services, especially in com- PAGENO="0069" 65 petition with the unofficial sources; no one has discovered a reliable way to test the contribution of the official services to the information stock of individuals or to the decisions they make. Still more difficult is the evaluation of the relation between the quantity and the quality of official services and the outcomes for individuals. Official placement services do not appear to make more rapid or more successful placements than do other sources of finding jobs, but the research designs for the few studies in. this area leave room for a revised opinion. On the other hand, the official agencies can collect job information more widely and completely than any other source. * A second drawback of the transition services is that they are apt to be invoked in situations where their influence is bound to be minor or ineffective. The danger is that more basic and drastic action against youth unemployment, for example, will be tabled, while reliance is placed on improved transition services. An example from another country of a misplaced emphasis on information and guidance is the 3apanese complaint that job-changing by young workers, even without intervening unemployment, is evidence of inadequate guidance services in school. The rate of job-changing is in fact* low by comparison with that of other advanced countries, but it is in conflict with the ~Japanese ideal of lifetime employment with the first employer. Ignoring the economic advantages that have accrued to the job-changers in periods of high labor demand and fast-rising earnings for young workers, the official 3apanese analysts have seen only a need for improved guidance for young people. Similarly, our calls for community education-work councils, and better matching of vacancies and job- seekers,. useful though these may be in general, are inadequate and inappropriate responses to a situation of chronic insufficiency of jobs for youth in both quantitative and qualitative terms. * A third problem for the transition services is that they tend to treat all youngsters equally. Yet those who have the least need for these services because they have access to other assistance are most likely to seek out, respond to, and benefit from the official services, while the most needy in terms of background and resources are likely to reject or absorb little of the services they are offered. There is a clear need to provide more and different services to disadvantaged youth within the framework of the transition services available to all. A recent Swedish innovation is called Extended or Modified SYO, where SYO means an integrated educational and occupational information and guidance service. It is designed to provide active follow-up of all young people who at 16 do not enter or drop out of upper secondary school. All community agencies that deal with young people are drawn into the effort, which is directed by the SYO personnel in the schools and the local employment service. If this program proves successful in the PAGENO="0070" 66 trial communities it will be extended. It is a way of giving the disadvantaged, criminal, delinquent, alcohol- or drug~-addicted youth special attention on personal, social, educational, and employment iroblems within the general system of transition services. Entrance to the Labor Market * Training occupies a place of honor in European measures to cope with cyclical and structural difficulties. It is assumed that there are or soon will be skill shortages and that training can benefit both the individual and the economy. Until the present recession, this idea was accepted without question, but now one hears doubts about future needs in light of technological change and better utilization of manpower. Many government training programs are open to teenagers or are extended to this group during periods of rising unemployment, and some special programs have been launched as well. The significance for the United States of some of the special measures for youth depends on one's expectation of skill shortages in the youth labor market here. * Two British programs illustrate the convergence of cyclical and structural policy for youth. The Wider Opportunities Courses now are used experimentally with young people, and are being evaluated systema- tically. They attempt to develop the participants' self-confidence in their ability to meet the demands of various kinds of employment rather than to impart specific occupational skills. It is expected that successful participants will be better able to respond to new employment or training opportunities throughout their lives. Secondly, Gateway Courses were proposed in mid 1975 by the Training Services Agency. The program will be formulated more definitely in 1976 after national debate on the details is concluded. Essentially, the Gateway Course is envisioned as a three months off-the-job course that will give knowledge of broad occupational categories rather than specific skills. It is still to be decided whether such courses should start in the last year of school, just after school ends, or after the first unemployment, and the precise location is uncertain, though all relevant facilities are viewed with approval. Part of the Gateway Course is seen as an introduction to more advanced and specific training by employers. In addition, the Industrial Training Boards are urged to stimulate more training for young people in the work place than now exists, but it is recognized that much of such training is not in the' employer's interest and requires subsidization. * One of the newer measures in Europe is the offer of public subsidies to employers to hire young people they would otherwise not employ. These programs call for training or work, or combinations of work and training. Employers who might not continue apprenticeship training because of difficult economic conditions also are subsidized in Britain and The Netherlands. Subsidies to employers have reportedly worked well in Sweden, but French employers have not responded in as large a number as was hoped they would. PAGENO="0071" 67 * Belgium has been discussing an early retirement plan that would make more room for young people. The plan is to finance the measure by a special tax on firms whose profits have been higher than average. * Mobility allowances are not generally used much by teenagers, but some countries provide special housing and recreation facilities for young workers. * As a final citation, the comprehensive Swedish program against youth unemployment may be described. Drafted in a period of full em~ ployment in May 1975, the program of the National Labor Market Board laid down guidelines to be followed by the County Labor Boards and the local employment service offices in the event of an increase in youth unemployment. Emphasis is given to intensified employment service activities, the creation of training opportunities within the educational system, training in labor market centers, and an increase in public service employment for youth. Among the duties of the employment service are analyses of the extent and structure of youth unemployment; cooperation with school authorities, municipal social service agencies, and others on training and work opportunities for youth; activities in schools, youth centers, and youth organizations; intensified job canvassing; study tours to work places; following up individual young people, especially those who do not continue their studies or drop out of upper secondary school. In each office, unemployed young people are to be served by one or more specialized officers. In the whole perspective of current European efforts, it would be misleading to suggest that any country has devised policies that assure an easy transition from school to work for the segment of youth that has the greatest difficulty. The effectiveness of many of the policies for the longer-term structural problems has yet to be tested. But in the absence of better ideas, some of these proposals may be worth trying in the United States. Surely it is a worse alternative to take refuge in the indisputable fact that youth is a temporary malady and that all young people in the labor market will automatically become prime-age workers without any governmental assistance. PAGENO="0072" 68 NOTES 1. This chapter is based on a forthcoming book, Bridges to Work: International Comparisons of Transition Ser~'ices, and work in progress on the preparation of youth for work and the youth labor market. 2. Organization for Economic Cooperation and Development (OECD), The Entry of Youth into Working Life; European Economic Community, Measures to Reduce Youth Unemployment (Brussels, May 1975); Council of Europe, Unemployment among Young People and its Social Aspects (Strasbourg, 1975); Ronald Gass, "Approaches to the Transition from School to Work," Seymour L. Wolfbein, ed., Labor Market Information for Youths (Philadelphia: Temple University, 1975), pp. 11- 23; "The Problem of Young People's Entry into Working Life," OECD Obser~'er (September-October 1975), pp. 14-16. 3. For example: Manpower Report of the President, 1968; Franz Groemping, "Transition from School to Work in Selected Countries," in The Transition from School to Work, Princeton Manpower Symposium May 1968 (Princeton: Industrial Relations Section, Princeton University, Research Report Series no. 111, 1968), pp. 132-88; David Bauer, Factors Moderating Unemployment Abroad, The Conference Board, Studies in Business Economics no. 113 (New York, 1970); U.S. Department of Labor, Bureau of Labor Statistics, Youth Unemployment and Minimum Wages, Bulletin 1657 (Washington, 1970), chaps. 10, 11. 4. The recommendation, stated in several papers, is most accessible in Martin Feldstein, "The Economics of the New Unemployment," The PublLc Interest (Fall 1973), pp. 3-41. PAGENO="0073" 69 Chairman HUMPHREY. I was particularly impressed with certain elements you outlined among the European countries whereby the legislature sets forth the objectives and guidelines and financing, but leaves the details and the administration up to the `executive branch. Of course they have the parliamentary system there which places a greater burden of responsibility on both the executive branch and the legislative branch. There is a burden of cooperation when things don't work out. We have this divided authority, and sometimes it doesn't produce the results we would like. Also maybe they will get around to where we are when they want instant cures, instant food, instant success. Mrs. REUBEN. They are more patient. Chairman HUMPHREY. They are, there is no doubt about it. I have been so impressed with what I know of some of the efforts that have been made in other countries where they take a program and really try it out on a limited basis. I thought that is what ought to have been done, for example, with the welfare program that was advo- cated. I thought one of the best things that came out of the Nixon administration was a revised family assistance program. But we always have got to have it in all 50 States tomorrow morning, or really this afternoon, and have it going full steam ahead, when in fact if we would have picked about maybe 50 counties in several States and given it a real whirl, we might have found out its weak- nesses, its strengths, and the training needed for it. I think this was brought up a while ago with the other witnesses. And so many of these programs require what we call middle level. supervision and administrative experience, because they are different. You are working with people who have different problems than the normal employment and unemployment situation. But we will come back to that. Mr. Barton, will you proceed now with your testimony. STATEMENT 0]? PAUL E. BARTON, SENIOR CONSULTANT, NATIONAL MANPOWER INSTITUTE Mr. BARTON. Mr. Chairman and members of the committee, thank you for the opportunity to speak about these important issues. I have provided a longer paper to the committee staff, and I have only a few brief remarks. Our youth unemployment condition is of course a complex one, the result of the creation of rapid change and socialization into an adult society, erosion o,f community and extended family, even nu- clear family, the isolation of large institutions, schools, and workplace being a major example, a rate of technological changes and concen- trates the work into a shrinking middle period of life, and a recession prone economy in which there is a widespread employment problem affecting all ages. In a brief period it is possible to highlight only a few ~ the more significant elements of this condition. This will be made easier by the oversimplification of speaking of two emplo~yment conditions. The first, I believe, is the result of inadequacies iii institutional relation- ships and behavior of the kind that created problems in the transi4on from school to work in a boom year like 1969, as well as in a recession PAGENO="0074" 70 year like 1975 and 1976. And the second is the result of a deep reces- sion where unemployment is still as high as in the worst months of the 1958 recession. With respect to institutional relationships and behavior there are the following points I would make: One, the most striking fact not widely known is that between two-thirds and four-fifths of employers hiring for what might be called regular adult jobs simply do not hire persons under 21 or 22 years of age. And there have been four or five major studies over the last 6 or 7 years which document that, I think, rather completely. That is 4 or 5 years after youth received their high school diploma. With those employers, what you studied in school and how well you did isn't going to matter much for quite awhile. Purely curriculum reforms don't touch this problem. Two, the time trap mentality of how dividing life into segments, with the youth period for formal education and adulthood for only work, creates the necessity for a sudden transition from education to work. A phasing process where both education and industry are co- operatively involved would keep youth from slipping between these two bureaucracies which are seldom on speaking terms with each other. And yet few now have the option for a phase transition. Three, the most obvious of the links between education and work are left unconnected. Senator Humphrey referred to this a little bit earlier. Few schools provide job placement services to their school learners, although they do attempt college placement services with what limited resources they have. The Public Employment Service started in the early 1950's to pro- vide `a one-shot counseling and placement service in the senior year. But that activity has dwindled to the point where no separate records are now kept. Secondary schools have only about one person-year of counseling time per 1,000 students, and very little of that goes to career planning, particularly for those not getting there with the college degree. All of this is complicated by a dearth of occupational information avail- able at the local level, and in forms easily used by students. Four, employers, parents, school counselors, and young people are confused by child labor laws. This confusion was documented in a six- city study conducted by the National Manpower Institute. It is not that we don't need child labor laws. We do. But there are overlapping Federal and State laws, and there needs to be just one or the other with special information explaining what can and can't be done. Five. In this area of institutional relationships that I have distin- guished from just the plain shortage of job opportunities, we are, I believe, going to have to rely on a process to create the necessary link- ages, rather than new programs with very large bureaucracies. What is involved is-and many of the previous speakers and members of the committee have commented on it, I believe, in one way or the other- collaboration at all levels, but particularly the local level, among edu- cators, businesses, labor unions, the voluntary sector, now organized into such an organization as the National Collaboration for Youth, parents, and just effective citizens. PAGENO="0075" 71 While the name is not important, the National Manpower Institute has called for the creation of community education work councils as a means of accomplishing collaboration and commencing that kind of a process at the local level. Rather than searching for standardized approaches, the one best way, we will have to build on whatever leadership initiative there is in the community. And it can come from. various places. It can come from schools, it can come from employers, from unions, or any other source. And rather than segment responsibilities at the Federal and State level among government organizations responsible to particular clientele and professional groups, we need to find means of drawing them into shared responsibilities for a goal which transcends their narrower organizational objectives. In short, the cement that binds society in the vital process of admission to adulthood is loosening. The need is for reenforcement which unites; not new organizations with narrow and preconceived missions which perpetuate segmentation. The second youth employment conditions is simply the lack of enough jobs, of which there has been considerable discussion already. A deep recession is of course the basic reason at the present time. But I think this should not be permitted to mask what has been a long term decline in youth employment in the inner city. In 1954, a couple of decades ago, the proportion of white teenagers employed was 43 percent compared to 38 percent of black teenagers. Now, that is a significant difference but not a huge one. But in 1974 the white proportion employed rose to 49 percent, up from 43 percent. The black proportion fell to 26 percent, with only about one out of four employed by 1974. The full brunt of the recession was felt in 1975. And the percentage of black teenagers employed fell further to 23 percent. We cannot talk about a phased transition from school to work if there is no work to be phased into. The inability of our economy to maintain a more even growth, and the increasing constraints on growth, as traditionally measured at least, and the simultaneous enlargements of the demand for productive roles from youth, minorities, women-and it is coming, the older people we retired from our technological economy-exceed the scope of this analysis. But it must be pointed out that such disruption in the total system makes uphill sledding to improve the functioning of important parts of it, such as the youth transition to work. So as we work to improve institutional linkages and encourage community initiatives, we need to enlarge the number of productive roles. A good deal of this will likely have to occur in what is broadly termed the service sector. What comes to mind most readily is corn- munity service; those needs identified by the community itself that strengthen the forces within the community as well as those that also aid in the pursuit of the longer range goals suggested in these remarks. When you talk to any group and ask the question, you will find that no one believes there are enough jobs. But if you ask if they believe we have iiin out of work that needs doing, the answer is a kud "no." Both the doing of it and the experience youth gains in the process are important. PAGENO="0076" 72 The proposal of Willard Wirtz in his recent book "The Boundless Resource" for the creation of community internships captures both of these elements, I believe, of helping youth and helping the community. `1111e1e are now enough related efforts in the area of youth and service programs so that a base of experience now exists for wider applica- tion where we would not have to proceed solely on the basis of logic. However, I see Mr. Donald Eberly from ACTION in the audience and he knows more. than anyone about present experience sn~h as service learning, action learning, and a whole series of efforts that have been given trial runs. Thus in closing, Mr. Chairman, I believe there are two youth em- ployment conditions, one requiring improved access to the employment system for youth, and the other requiring the numerical enlargement of productive roles for youth. [The following paper was attached to Mr. Barton's statement:] PAGENO="0077" 73 YOUTH TRANSITION TO WORK: THE PROBLEM AND FEDERAL POLICY SETTING Paul E. Barton The period since World War II has been, by standards of achievement long applied, the best of times for American youth; it remains to be seen whether the achievements of this period have been entirely to our advantage or~ whether in protecting youth from the harshness of adult life, we may have gone too far and made, it harder for them to live as adults. Affluence combined with perhaps the most youth-centered culture in history has enabled the prolonging of childhood, for most youth at any rate, for six or seven years beyond the time when the physical ability to do society's work commences, the time that,in fact, provided the natural break from childhood during all but the most recent period of man's existence. During the late 1940s and not before, the word "teenager" came into existence, to provide a label for a population physically mature yet still cared for. The swing. generation's teenage children were without adult jobs during this ex~ended period of preparation for adult life but not without resources; cars appeared as transportation to high school and college, the music and recording industry found its largest market ever, and special charge accounts for teenagers were advertised by department stores. Increasingly, these youth grew up in suburbs, saw people around them living as well as they did, associated mostly with other young children with still young parents, were transported by family station wagons to extracurricular affairs, and were treated to what was thought to be the best in high school education, which more and more took place in institutions with 2,000 to 4,000 students. Taught to live as part of an age group, they learned their lessons well, and by the time those who were going to college got there, their views about the conduct of national and international affairs, and the manner in which those views were expressed, turned out to be quite different from those of their parents' generation, or perhaps any American college generation before them (a comment not rendered in judgment but in reminder that a lengthening period of protection and attendance in society's institutions of socialization did not result in a passing on of parents' views and values).. The younger sisters and brothers of these college students and the children of those who had been too young to fight in World War II found the schools even larger, saw alcohol replaced with hard drugs--which were available as early as junior high school--turned against the expensive PAGENO="0078" 74 clothes that youth before them had worn, and found accommodations for living together in vans, whereas their predecessors had had to settle for evenings in the parking lots of suburbia's shopping centers: Despite these outward differences between teenagers today and those who were teenagers during the mid 1950s and early 1960s, the prolongation of childhood, in whatever guise, remains the status quo, and most affluent middle class youth today are still going to college. This is the situation of youth most visible to those Americans who matter in terms of power in the institutions of employment, education, and government. The rest of American youth, those stopping their educa-. tions at high school or earlier, must be making it somehow, but no one knows quite how that process is working. Often, it isn't. Until the riots of the 1960s, the public knew, only if it read of such things, that blacks (still called Negroes then) were moving rapidly to the centers of the major cities, and that the city surely wasn't the promised land. Claude Brown's life exemplifies what teenagers were doing in the crowded city center and still are doing: fighting for their reputations on the streets by age 12, being pushed into early motherhood, seeing all too clearly the inequalities and irrationalities of a welfare system, and missing out on a critical element of socialization into the work world: having fathers and mothers who can get stable jobs providing incomes that cover the essentials of living. Only the successful few are making it to the suburbs, and when they get there they are too far away to be what the sociologists have come to call effective role models. Those who stay in rural areas see little hope there for a career, unless family resources are sufficient for the conversion to agribusiness. For the most part, though, youth aren't staying on the farm. In poorer states their education is likely to be substandard, which is no help in the city; and if vocational education is available, it is likely to be in agriculture and is no help for most of those who study it. The disparities in adult society have been, not surprisingly, visited upon the young, and the schools have proved unable to achieve equality of abilities among youth of different races and economic classes, a task many seem to think is the schools' and theirs only. No one knows what the extended protective shield for the coming of age of middle class youth will mean for their lives and their children's lives. As for what is happening to the youth trapped in the cities without community, and often without family or resources, the shape of their future cannot be discerned in detail either; we can, however, be sure enough that it is not a benign influence for the individual or for society. This extension of childhood for the middle class, combined with the growing isolation of the big junior and senior high schools,1 leaping technological change, frequent, sometimes chronic labor surpluses, and PAGENO="0079" 75 the containment of blacks in the center city while the jobs (especially ones youth could hold) were shifted to the suburbs, has resulted in some of the worst of times for youth, or at least a dramatic break from the past in regard to the age of admission to adult society. The growing portion of youth starting college, and the growing portion of corporate decision-makers whose sons and daughters comprise the one out of five youths entering the full-time labor force with a college degree, has probably had the effect of increasing the social minimum age at which youth are permitted to enter most forms of regular adult employment. Although it is entirely a matter of conjecture about cause and effect, the age of entry into regular employment seems to advance with the expected age at which the middle class emerges from college; the facts, at least, are consistent with such a proposition. It is on such critical matters as this that our excellent statistical system leaves us in the lurch. One could point to a rising youth unem- ployment rate over time, only to be confounded by the fact that youth employment has increased as fast as the youth labor force.2 Closer inspection reveals that this employment increase is almost wholly in part- time jobs for students, that students get these jobs rather quickly (at least in non recession periods) but move about so much during the year--summer job to part-time job to Christmas job~-that they are cropping up more and more in the official count of unemployment. It is almost as if things had gotten turned around, with the unemployment rate advancing to reflect the greater success of youth in locating these kinds of jobs. The story, then, is not in the unemployment rate, or the employment rate either, for that matter. The better question is "At what age will employers hire youth for regular full-time jobs of the kinds that adults hold?" The answer is not to be found in the unemployment statistics at all but in a number of special studies conducted over the last half decade. The composite results are that from two-thirds to four-fifths of employers do not want to hire young people for regular jobs until the attainment of age 21 or thereabout.3 For the four out of five who enter the labor force without a college degree and who want to do it between the ages of 16 and 20, the extended childhood period must continue, even when society has conferred the last year of its free 12 years of education at age 17 or 18. The high school diploma received at this age cuts little ice; the graduate's success is not much different from that of the dropout in the several years before the age of 21.~ Perhaps employers would dip below age 21 if they were hard pressed to do so by rapidly expanding markets. But the years have been few when workers were in such short supply as to require such action. The effects on youth of a chronic labor surplus are compounded by the way technological change affects manpower requirements. Although such PAGENO="0080" 76 change cannot yet be indicted for eliminating more jobs than it creates, it has to be a large factor in the condensing of work life toward the middle years, causing people to enter regular employment at an older age and retire from it at a younger one. With youth seemingly less critical to the needs of industry, employers thinking of youth the age of their offspring still in college as too young to work, and youth walled off in ever-larger schools for longer and longer periods, the chasm that exists between the world of education and the world of work becomes more understandable, if not more accept-- able. The opportunity for phased adult experience shrinks, and youth becomes older as time passes and become less adult at the same time; the prophesies that they are not ready to assume responsibility become self-- fulfilling. The comment made a number of paragraphs back about the unemployment rate tending to be inflated by success in part-time job-- seeking needs qualification. For that ever-larger number of students.- engaging in casual part-time work, the comment is true enough. But for- those blacks facing bleak opportunity in, the center city, the unemploy-- ment rate for teenage blacks, even as it shot toward an unbelievable 40 percent in the 1975 recession, was inadequate in the other direction; the current situation is worse than it suggests. For teenagers, it is more revealing to look simply at the portion who are employed. The real tragedy of the black condition emerges with such measures. In 1954, 43 percent of white teenagers were employed, rising to 49 percent by 1974. In 1954, 38 percent of black teenagers were employed, falling to 26 percent by 1974. There is nothing now on the horizon to change these trends. Much has been made, at different times, of the importance of demo-- graphic projections of the youth population and labor force for manpower planning, and it is legitimate to ask what the projected trends mean for the future. It is sometimes said that as the members of the post-World- War II baby boom generation move into their late twenties, with the slower growth, even a decline, of the teenage population in the years to come, the problem of youth transition to work will lessen. Implicit in this statement is the assumption that the enlargement of the youth population was responsible for the rise in the teenage unemployment rate of that period. But "teenage jobs" fully kept pace with that population growth in the aggregate; the measured teenage unemployment rate is not a very useful guide to the existence of a problem. The gap between education and work, it is posited here, is the result of social, cultural, and economic changes--altering both the way we treat youth and the way we view- youth--not a matter of population demography. If this is the case, the- problem will not recede just because the tide of youth recedes. On the other hand, a lessening of demographic pressure cannot help but be on the right side, and it ought to make matters easier as we tackle basic structural and institutional arrangements. PAGENO="0081" 77 It should be well noted that the population climb among young blacks did not recede and does not recede in the projections made by the Bureau of Labor Statistics (BLS). Unfortunately, BLS has not published projections by `race since 1970. Those projections expected. 3.3 million blacks aged 16 to 24 to be in the labor force by 1985, compared with an actual figure of 2.6 million in 1974. The comparable numbers for whites, using the same projections, are 17.5 million in 1985, compared to 19.2 million in j974*5 It is clear now that the quantity of jobs for blacks is inadequate anc that the problem here includes, but also transcends, improved institutional linkages; things are going to get worse for young blacks unless some major steps are taken to create jobs, or to get blacks out to the suburbs, where the private economy is creating jobs for white youth. It is worth stating again that closer . relationships between the processes of education and work will help the great bulk of youth; and they will help many blacks, but just as many blacks will be left behind until something is done about the quantity of experience opportunities available to them.6 This is the setting of the problem. The federal role in dealing with it is necessarily a restricted one compared with what must be done locally, by parents, individual citizens, teachers, and employers. But it is still an important one and must be attended to with care, NATIONAL ASSISTANCE: LOCAL ACTION There is increasing recognition and acceptance of the proposition that we are too vast a nation and too pluralistic in our decision-making for many of our social conditions to be altered through uniform national policies, even less through federal government policies. That assertion is particularly true of efforts to bring about a smoother transition to adulthood, where federal, state, and local government and public educa- tion agencies, individual employers, unions, public employment services (with their three levels of policy-making), new municipal manpower agencies, parents, and, increasingly, students, are parties to the process. On the other hand, it seems to be at the seat of national government that the need for change is recognized, the climate for change often conditioned, and the cost of change at least partially funded. This has been true of almost everything that has happened in the last 40 years in the manpower arena, including employment services, public retraining of the unemployed, public employment, and income maintenance. It has also been true of most of education .that has been career specific, from land grant colleges to vocational education and on to career education. More recently, the Washington influence has become more subtle, but present nevertheless, in such projects as the federally funded and appointed panel that wrote Youth: Transition to Adulthood, the small Labor Department 82-043 0 - 77 - 6 PAGENO="0082" 78 grants to stimulate better use of occupational information, and the models such as Experience-Based Career Education, established with federal money in four cities for others to emulate. The limits to handed-down initiatives, from the Washington head-. quarters of one bureaucracy to its local offices, are increasingly apparent. There can be many reasons for diminishing opportunity for central policy directions, but a major one is that no one bureaucracy or institution has total responsibility for the youth transition, and no one command is capable of trimming the sail. The ability to discern the general situation from Washington seems unimpaired, as is the superior financial position to get things started; it is the ability to accomplish things at the local level, particularly in this area, that Washington is short on. Given all this, the best approach seems to be to put the pieces together at the local level, with the initial stimUlation and at least some funding coming from the federal level. It is out of experience with what local individuals and agencies are able to succeed in doing together that we will discern, what an education-work policy has turned out to be. The national role in getting local efforts started will, of course, require some judgment about what makes sense to get started on; there has to be some formulation of what is to be tried, if only by way of stimu- lating local people to think of ways to do it differently. It would be helpful in this respect to give a careful review of the experiences of those communities around the country already working on the problem (such a review is contained elsewhere in this volume). It is suggested that the appropriate federal policy role is that of stimulating a variety of local projects that have the merit of bringing together several of the critical participants in a school-to-work transition, and of perfecting a number of what would become operational components of a complete local effort. A great deal of room would be left for local design, and federal suggestions would be just that and no more. Examples of suggestions are provided below. * A number of local councils7 large enough to provide useful experi.. ence, composed of educators, employers, union members, parents, effective individual citizens, members of community organizations, and elected students to try to bring back together the now disparate pieces of the community that formerly took a greater responsibility for the transition to adulthood. Almost any of the projects and pilot programs suggested below could be carried out under the auspices of such councils. * Community employment counseling services for high school stu- dents, which might operate under guidelines established by professional guidance counselors but which would have as their purpose the identifica- PAGENO="0083" 79 tion and organization of all resources available within the community to assist youth in learning what occupations are like and how people in them got where they are now. * Model employment placement services, working to provide part-time opportunities for youth still in school, career opportunities for youth leaving school, follow-up through age 20 or so, and feedback to the schools about the kinds of barriers to employment success that exist after schooling is completed. Given the past jurisdictional questions not yet clearly resolved, it would be useful to have at least four different kinds of models: - A high school or consortium of high schools operating the services. The public Employment Service operating them, in a location accessible to students. - The schools and the Employment Service operating them jointly, with shared funding and carefully worked out responsibili- ties. - Volunteer service organizations providing the' entire initiative and implementation. * Community internship programs to supplement opportunities in the private employment sector, so that all students needing it can have an opportunity to combine experiential learning with more formal education. The attempt would be to generate local programs under a variety of auspices, such as-- A volunteer citizens committee. - A committee of heads of major organizations that would have experience opportunities. The education-work agencies, such as the schools, the munici- pal agency administering the Comprehensive Employment and Train- ing Act (CETA) and the public Employment Service. * Model delivery systems for all work experience opportunities within a community to see how much more employer cooperation and involve- ment could be gained by efficiently developing opportunities and appropri- ately matching students and opportunities without many separate ap- proaches to individual employers. * Demonstrations --perhaps as part of the above component--of what community-minded federal employers can do to stimulate an experience component in education. The combination of federal establishments PAGENO="0084" 80 located in a city--.including employers holding federal contracts--involve~- ment of the federally funded CETA agency, and public service activities receiving federal aid, would very likely provide a substantial number of experience opportunities for students and set the example f~r private employers. This is the kind of activity that existing councils of regional executives could organize. * A careful demonstration project to find out what difference the alternating of education and experience makes in the stereotypes now held by employers about the undesirability of young people under 21 as employees. Employers would have an opportunity to see what capabilities young workers have, and young workers would have the opportunity to mature as productive workers. Before-and-Wafter employer attitudes toward youth would be measured. * An education program prepared for all employers and school officials on what federal, state, and local child labor laws permit, as well as prohibit, with regard to student work experience programs and the hiring of youth as they graduate from high school. To find out what impact inadequate knowledge about child labor laws is having, before~and-~ after surveys about employer knowledge, attitudes, and actual hiring practices would be desirable. If the surveys were done in several communities, the worth of a widespread educational effort could be evaluated and the most effective approach could be formulated. * The provision of money to a local school system to permit it to work out cooperative agreements with private skill training schools, so that high school students could get skills in approved private schools where public school offerings were not available. The money would be used to pay the students' tuition in the private schools in situations where academic education was provided in the public school and s.pecific skill training in the private school. There has been a failure to bring about an integration of the resources available in the community, and exploration of cooperative arrangements in a few communities might determine how practical such possibilities are. * A demonstration public broadcast youth TV program, on a scheduled basis, which would-- Advertise its program and offerings in the local schools. Solicit job listings from employers and give regular job avail- ability bulletins. - Interview panels of people in identical occupations to draw out what that occupation requires and offers and how these people had prepared for the occupation and achieved success. PAGENO="0085" * 81 Interview employers about what they have to offer and why youth would want to work for them. - Interview graduates who have found jobs with regard to their job-hunting experiences and what worked best for them. Efforts would be made to see how many viewed the program and who they were and to determine whether they found it useful. * Development of a local occupational inventory of entry4evel jobs for graduating high school seniors, done by a consortium of individual citizens and organizations and made available in each high school within the guidance and counseling department. Means would have to be established for keeping the inventory up to date. It would have to be a listing of organizations generally having opportunities rather than a precise, current job vacancy record, which requires considerable statisti- cal expertise and is usually done on a sampling basis. * Development of an education program or a guide for local communities showing them innovative models now in existence to better integrate education and work. The nation is so vast that the likelihood of any community's knowing what other communities are doing is not very great. A system of gathering specific information on individual projects would enable duplication of successful efforts and results. * A comparison (in one or several local communities) of the job per~ formànce of 18-year-old high school graduates, who have been provided with the necessary on-~the-job training with that of older persons doing similar work, to see if there is, in fact, a basis for the large~-scale refusal of corporations to hire persons under age 21. These are meant to be only examples. Their purpose is to show that there are a large number of things to try, based on informed judgment. Any serious effort to launch a series of projects at the local level that go beyond efforts now being made by individual institutions operating in isolation from each other and from the community itself, would turn up other possibilities worthy of a trial run and might very well reject many of the above suggestions. NEW EFFORTS IN EDUCATION * New developments in education at the federal level are quite impor- tant in the overall effort to improve the transition from school to work. A few comments seem warranted in the context of the purpose of this paper, although no attempt will be made to be complete or comprehen~ sive. PAGENO="0086" 82 Leadership as Well as Money in Career Education It should be taken as instructive that the largest influence the federal government has had on elementary and secondary education since the response to Sputnik, has been one of leadership, not money. For that large majority of students not in the accelerated math and science courses, career education, an approach initiated in late 1970, may be the most significant federal initiative since vocational education was enacted into law in 1917. Although many states and localities are not quite sure how to implement career education in the specifics, they are increasingly convinced that basic changes are necessary and that the momentum behind the idea of education as preparation for careers is great enough to provide the opportunity for change. Money played some role in the creation of the career education initiative, particularly in starting the several models, such as Experience- Based Career Education. But the amounts were so small as to be insignificant in a multi-billion-dollar public service industry. What has been started is by and large the result of the personal leadership of Commissioner Sidney Marland and Director Kenneth Hoyt; the continuing support given by Commissioner Terrell Bell and David lesser of the Council of Chief State School Officers; and the initiative of a number of individual school officIals. Things have been brought to the point at which enlarged financial resources will now be necessary. It would be ironic, though, if a movement started and sustained by individual leadership became dependent for sustenance largely on new federal legislation and appropriations, while the dynamics of its progress thus far were ignored. This is not to suggest that a legislative and financial base is not needed; it is. But it will be tempting to move too quickly beyond reliance on individuals who can persuade others. . . to persuade still others. Within a very short time, a new Commissioner of Education, working with what funding he had, described the way education for the non.. college-bound had become neither good general education nor a means of entering adult employment. Then he proceeded to tell educators what to do instead. Gaining the confidence of practitioners and the understanding of those who had long played important roles in the preparation of youth for employment, was the job of the new Director of Career Education, with the support of the Commissioner of Education. The judgment must be that, by and large, the climate of receptivity has been greatly improved. Continuing skilled-and adroit--leadership from Washington is an essential, and that leadership's largest contribution at the present time will be to assure that those placed in leadership roles at the state and PAGENO="0087" 83 local levels are people who understand the need, and who have the skills, to influence educational policy and practice. There cannot be--should not be--federal direction over who is appointed to these posts, for these are state and local matters. But the leadership that creates the climate for encouraging careful selection, and cooperation from other elements of the education establishment, will have to come from those sponsoring the effort in Washington. The selection of such individuals up and down the line will not very likely result from legislation, policy pronouncements, or grant guidelines. It is rather a matter of the personal efforts of effective leaders. The proposition is that the most important career education matter is personnel, for if recruitment is handled poorly at this stage, all else will come to naught. Limits of the Classroom The originators of career education were clear in their recognition that the classroom is as large as the community. The natural tendency of educators, however, is to do what they have always done, which is to reduce the world outside to what can be put into a book or a lesson plan or to what can emanate from an instructor. The difference in method is important enough so as to transfer the burden of proof onto those who would abstract the outside and bring it in, with the presumption being that what exists in the present can be best understood through observation and participation. This leaves much to be learned about the past, and about what is generalized by adults who have many experiences, for classroom material. From the number of times one hears the term "hands-on experi- ence," it would appear on the surface that all is well. But we should not assume so, and the record-keeping system for tracking progress in implementing career education should be designed to tell us where progress is taking place. Education has increasingly meant that youth were delayed from joining those who were doing; it would be ironic if career education were practiced in such a way as to reinforce this trend rather than reverse it. The question of what kind of education is appropriate for the class- room and what for the outside world has perhaps even greater relevance for vocational education, since it teaches specific job skills in the classroom and also provides general theory and basic education to supplement skill training. The matter has too often been approached on a pedagogical basis when it is really a rather practical question of what works and what does not. PAGENO="0088" 84 The process of deciding on an appropriate vocational education curriculum ought to be carried out on the basis of how employers hire and train in particular industries in a particular community. If they hire on the basis of skills received in a vocational classroom, it makes sense to teach those skills as long as the access of youth to jobs is actually increased and the broader purposes of education are not forsaken. Where employers do their own training and want it that way, it is not a wise investment to train youth in public classrooms. These are matters that can be determined by asking employers what their practices are, what they want them to be, and whether it makes sense to change them. If all vocational education courses were established only after a determination of how employers' labor supply is actually met, much of the doubt that seems to hang over vocational education might disappear. Assuming Responsibility Without Ability The very term "career education" suggests that careers can be had through education. They can, but only to some extent. It has become increasingly recognized that we have loaded too much responsibility for socialization onto the schools, and that they are unable to compensate for all of the failures of other institutions. Schools do have limits in their ability to correct the effects of broken homes, bad parenting, the impact of racism, and so on. There are enough factors other than educatlon involved in whether a young person actually lands a regular adult job when schooling is completed so that educators would be wise to be wary of seeming to take all--or even most--of the responsibility for assuring access to quality employment for youth. With regard to youth who do not go beyond high school (about one of every two of them today--a group now growing) most employers just do not hire them for regular adult jobs until * they are about 21 years old. It is not likely that a change in what is taught within classrooms is going to significantly alter employers' practices, for hiring is not now based on objective studies of youth preparation and performance ability. The point is that educators are not going to be able to go it alone and would be well advised to announce to employers and parents and to other community institutions that they share responsibilities with the schools. Better, these several responsibilities would be best met through collaboration at the local level, and the most successful career educators will very likely be those who organize such collaborative arrangements rather than just receive classroom materials. There is probably already considerable confusion in the minds of students, parents, and the public between education for careers and access to careers. Education does not assure access. The problem is in identify- ing that portion of access that can be facilitated through teaching in schools or through better access to occupational information through schools or through better matching of desires and opportunities through PAGENO="0089" 85 counseling, as compared with the portion that is controlled by race and sex discrimination, arbitrary employer hiring requirements that exclude youth, and the fact that most specific skill training--more often than not by employer preference--'is provided in industry, not in public schools. The relationship between educators and students is only one part of the work of career educators; teaching the public how access to employment is obtained, how it is denied, and how other guardians of access can widen opportunity, is most of the rest of it. Federal Attention to Counseling and Guidance The counseling and guidance profession has taken its share of the blame for the little that is done for non-college-bound youth to enable them to make it in the job world, and many in that profession would agree that attention has been going disproportionately to assisting in college choice. Further, the attempt to professionalize the function went far toward thwarting the development of people who if given professional supervision could be of considerable help to youth, as well as helping to overcome what all recognize as a shortage of people to do the job. While other aspects of education have received considerable federal attention, the counseling and guidance function has largely been ignored, and no legislative base for improvement has yet been laid. The profession, through the efforts of the American Personnel and Guidance Association, has displayed a sensitivity to the existing situation and has formulated legislative remedies that would go a long way toward giving youth the assistance they need in negotiating the job world, through a reorientation of the whole function, through the retraining of existing counselors, and through a greater recognition and use of paraprofessionals. At this point, responsibility for the next steps lies as much with the Congress and the Executive Branch as it does with the harried counselors. MEASURING THE TRANSITION Although America has the finest measurement system in the world, the system has served to illuminate the adult situation much better than it has the transition period to adulthood. It must also be recognized, however, that the Bureau of Labor Statistics, the Employment and Training Administration, the Office of Education, and the Bureau of the Census have assembled a mountain of information about youth. But it is still a valid point that a sharper focus on the transition process would have prevented events from drifting as much as they have toward a situation now demanding national attention. As was suggested earlier in this paper, the youth story is not easily read from the available statistics; in fact it is easily misread, and has been, as evidenced by the attention paid to teenage unemployment rates alone. PAGENO="0090" 86 The insufficiency of present quantitative information is not really traceable to failures of the statistical agencies. What has happened is that in the last few years we have developed a different perception of the situation--a concern with qualitative aspects of the coming of age, and particularly with the role that institutions and the relationships among them play in determining whether admission to adulthood is being encouraged or facilitated, or made increasingly difficult. Given this fact, it is hardly reasonable to expect all the appropriate measurements to be at hand. There is now enough consensus among policymakers and academic observers to start discussion of what we will need in the future (1) to see where matters now stand as we set out to improve the situation and (2) to see whither we are tending. A few specifics will be set forth to stimulate such discussion. * While it is perfectly acceptable to maintain traditional labor force statistics on youth for consistency and completeness, those measures need considerable supplementation.8 As consensus grows that education is a combination of real experience and schooling, the traditional "labor force" concepts have less meaning. What we want to know is how many youth are getting experience and what kind they are getting. While work for pay may be the most prevalent form of experience, it is not the only kind. In arranged work experience programs there are as many who argue that pay should not be involved as there are who argue that it should. If experience opportunities are to become sufficient, much greater reliance will have to be placed on those activities traditionally bearing the "volunteer" label, and greater reliance will have to be placed on local public service opportunities--termed "community internships" by Willard Wirtz. The career education movement is developing "work exploration" as early as the junior high school level, so that what might be called experience shades off into what is meant to be familiarization with the variety of jobs that exist in the American economy. What this means is that our statistics must capture the experience component of education, in such a way as to understand what these dif- ferent kinds of experiences are and how much the opportunities are grow- ing. We should also know how many are in some way tied to the planned process of education as well as how many represent solely the efforts of the students. Although it is not considered appropriate in regular labor force statistics to ask whether a person "wants" a job, as opposed to whether that person is actually looking for one, the distinction is more useful in the case of youth in school. How many experience opportunities we have should be compared with how many are wanted. Further, as the availability of experience opportunities becomes the concern of educa- tional institutions as well as of the individuals in them, the surveys should include the institutions so as to determine unmet needs. PAGENO="0091" 87 * It is remarkable that we have been so careful to count school enrollments and paid employment status and have given so little attention to training. "Training" obviously overlaps with enrollments in schools, where job skills are frequently taught, and with experience, where job abilities are frequently absorbed. Despite the overlap, there is a lot of job preparation that will not be included in schooling and experience counts.9 School enrollment statistics include only regular schools granting high school diplomas and postsecondary degrees, excluding many privateS schools, apprenticeship programs, formal training programs provided by private and public employers, and public programs under the Comprehen- sive Employment and Training Act and other manpower programs. Schooling, experience, and training are the three means of transition from dependent status to adult worker, and training is hardly measured at all. * While it would seem reasonable in statistical samples designed for the entire labor force to lump 16..to-19-year-olds together, and sometimes 16-to-21-year-olds, such would not be the case for special statistics designed to track the transition process. Although the early years of existence are when the explosion takes place in the development of cog.. nitive capacities, it is in the 15-to-20-year-old period of life that there is acceleration in development in terms of entry into adult society. The search for a mate commences, independence from parents is asserted, employment relationships emerge, behavior patterns are tried on for size, and for most young people, some accommodation to the society created by those born before them is made. As parents around the age of 40 will testify, these changes occur at breakneck speed. From the point of view of society, ages within this period also differ greatly. Special employment laws affect all youth under 18 but have greater impact on youth under 16. For employers-at least those using "adult" labor--youth under 20 or 21 are largely viewed as not ready for employment. The law, depending on the state, establishes the age of majority somewhere right in' the middle of the typical age class of government statistics. The point of all this is that the circumstances of youth vary greatly with as little as one year's difference in age, and the averaging of ex- periences across four to six years is not, likely to reveal much that is useful about the transition process, which to such a large extent takes place within that four to six years. The record-keeping should begin at about the time when' the assertion of independence from the family commences, and when serious efforts within education (and the larger community) should commence to provide learning experiences--say around age 14. It should continue until the age at which most define entry into adulthood, which would very likely be at age 21 if the matter were put to a vote. And the reporting should proceed at one- or, at the most, two- year age intervals. PAGENO="0092" 88 * The major statistics covering this life span are for the "civilian noninstitutional population." Whether one is or is not in an institution seems to define the right to be counted in those statistics by which the health of the society is judged. When a 14-.to-21-year-old spends a sub. stantial period in a health, penal, or military institution, there is likely to be all the more reason to take the pulse of the transition process. It is not a matter requiring a lot of words. The facts are, however, that a significant proportion of the youth population pass through such institu- tions at some time in their lives, and the character of that experience may be a major factor in shaping the rest of their lives. Any report on the nation's youth in the terms suggested above--in fact, even in the terms already being rendered--ought to include all young people. GETTING IT TOGETHER There is now a long history of the federal government's talking about "the transition from school to work" and "bringing education and work into a closer relationship." In the early 1960s, federal attention was riveted on the high school dropout problem, "social dynamite," in the words of James Conant. It went unrecognized then that even high school graduates did not have regular jobs to drop into, unless they pursued college educations. The realization that those who had been born in the post-World War II baby boom were hitting the labor market focused attention on whether there would be enough jobs to absorb them. Both these developments steered attention away from the trends toward institutional separatism and the growing distance between the world of experience and the lengthened portion of life being spent in the classroom. The matter of closer institutional relationships came under examina- tion in thelate 1960s in the Departments of Labor and Health, Education, and Welfare (HEW), the result of a mandate issued by the President in the 1967 Manpower Report of the President. The requested joint report was duly submitted and at the request of the White House, turned into specific action recommendations. A legislative proposal was drafted for a "Partnership for Earning and Learning" between Labor and HEW that would have required joint efforts by the two Departments. It never emerged from the Executive Branch. In the early 1970s, at the initiation of the Secretary of Labor, another extensive policy development exercise was begun, with the parti- cipation--and eventual agreement--of the Department of Commerce and the Department of Health, Education, and Welfare. Cabinet changes just before the matter was to be placed before the White House sidetracked * that effort. The President's speech at Ohio State University in August 1974, calling for a closer relationship between work and education and request- ing the three Cabinet Secretaries to prepare an action plan for him, has so PAGENO="0093" 89 far resulted in nothing, although Cabinet4evel memoranda have been publicized in the press. Again, several changes in the heads of the three Departments have occurred during this period, each time necessitating a pause for a new Cabinet member to come to grips with the work and agreements of his predecessor. At each step the interaction of White House and Office of Management and Budget staff, with the recommenda- tions of the three Cabinet agencies, has worked to postpone action rather than to bring it about. The public, of course, is in no position to judge the reasons that action has not been forthcoming. Another important element, within the last year, is the existence of the National Commission for Manpower Policy, which has a strong interest both in the substance of the matter and the problem of coordinating activities among the federal agencies with the greatest involvement, all of whose heads are members of the Commission. Thus far, cooperative effort at the staff level among the three Departments has been considerable in laying plans for what could be done, with a greater recognition of what they have the power to do based on some rather strong mandates in existing legislation and appropriation acts. The possibilities for a federally aided initiative still appear to exist. The history of the last seven or eight years being what it is, however, there is limited encouragement for supposing that ad hoc joint planning efforts depending on implementation by officials here today and gone tomorrow are going to result in very much. If the forces of institutional separation are so strong among federal Cabinet agencies that joint effort in the interest of smoothing the transition to adulthood is seriously hampered,1° it only underscores how much the state of affairs has been allowed to drift in a direction not at all favorable to the nation's youth. Hard as it may seem, the only workable arrangement is likely to be in having each of the three Departments give up a bit of its institutional sovereignty in order to create something in which the pieces are fitted together. If organization of the federal establishment continues to be around client groups and professional establishments, as it seems likely to be, accommodations will need to be found that depart from both past practices and traditional principles of federal administration. At present, federal organization mirrors the situation at the local and state levels, where forces are increasingly centrifugal. The Commerce Department reflects the disinterest and noninvolvement of the business community in education affairs, although with some recent inclinations to do otherwise. The Department of Labor has settled in to defining manpower policy largely as whatever a CETA prime sponsor thinks it is, usually meaning training and public employment for the disadvantaged, all of which does not include any restructuring of basic institutional relationships, although there are recent indications of a clear intent to do more. The Labor Department's new National Occupational Information Service has required the participation of state education departments, and represents a new initiative based on collaboration. The Office Of Education has a large PAGENO="0094" 90 amount of autonomy to carry out legislative mandates. Although career education is still largely an idea of educators to be implemented in the classroom, it has extended itself into employment and community in its advocacy of the actual exploration of careers outside the school grounds. The National Institute of Education is clearly interested in local collaborative arrangements and has made a major contribution with its Experience-Based Career Education models. What may work better than these somewhat isolated efforts is the creation of a mission and a small staff by the three Cabinet Departments, but operating outside any one of them. The staff director should be accountable to the responsible Cabinet Secretary .or Secretaries and should receive operating funds and specific delegations of authority from them. Some such arrangement has probably been discussed within the Executive Branch; no claim of originality is here advanced. The purpose of this combined effort would be to increase the number *of participants involved in the process by which youth achieve adulthood, to bring about an interlocking of the institutions that youth have to negotiate, and to draw out resources now dormant in the community. This aim would very likely be best realized by the government's providing some, but not all, of the funding for local projects (of the kind suggested earlier), organized with some element of local initiative and nurtured but not controlled by government. It would, without doubt, require sensitivity and a sense of balance for government to spark change without igniting the tendency toward government programming and control. A staff under the direction of the appropriate Cabinet Secretaries with a mandate to operate without the blinders of clientele and profes- sional representation would need th~ breadth of understanding to realize that it could not-indeed should not--be totally freed from these concerns. Subunits of each of the three Cabinet agencies have been charged by the Congress and their Department heads with specific--and legitimate- functions. It is neither necessary, desirable, nor likely that a czar could assume line direction of their activities. Rather, the lines of power should be clear enough to allow the achievement of cooperation; what is wanted is that the agencies carry out their responsibilities with greater collaboration with others and that they contribute their share toward a goal pursued in a locality by a number of individuals and institutions, rather than just one. The government cannot organize wholly around function, or at least that type of organizing has not proved achievable in the past. Certain goals, however, cannot be achieved with the separation that results from clientele lines of organization, the present basis on which HEW, Labor, and Commerce have been assigned their duties. Therefore, some blending of the two is called for. Needless to say, this blending is worth doing carefully, with an attention to stability that goes beyond a dependence on a continuation in office of all the Cabinet Secretaries, Under Secretaries, and Assistant Secretaries present at the creation. PAGENO="0095" 91 CONCLUSION The situation of. youth today in the transition to adulthood is to be found as much in examining what we do with our affluence as how we suffer deprivation; as much in `thinking through the prolongation of childhood in which youth are kept from adulthood as in pushing youth onto the factory floor too soon, as we did earlier in the American industrial revolution; as much in the success of developing huge professional institutions, going their separate ways, as in muddling, through with amateurs and suffering the privation that went with smallness of schools, businesses, and towns; and as much in the perfection, sophistication, and continuity of our statistical measurements as in the chaos that results from changing them. The emphasis here has been on the possibilities of a helpful federal initiative, because that is the responsibility of those who commissioned these papers. This emphasis led quickly to the problem of marriage be-. tween federal concern, analysis, and financial resources and community initiative. The necessity for collaboration among the federal power centers was posed as at least one precondition for success. . . or for, courting the communities, for that matter. Any problem of breakdown in the youth transition raises a question of society's continuation. Any aid that federal policy and money can provide depends for success on clear recognition of federal limitations as well as capabilities; and the same willingness for cooperation-~-collabora-. tion-.-among its disparate organizations' that it must ask of states and communities. PAGENO="0096" 92 NOTES 1. See :lames Coleman, et al., Youth: Transition to Adulthood (Washington, D.C.: Office of Science and Technology, Executive Office of the President, 3une 1973) for a thorough analysis of historical trends. 2. Except, of course, during depression periods like 1975. 3. See particularly the studies of Diamond and Bedrosian, Gavett (Bureau of Labor Statistics), and the National Manpower Institute. The results of these and others are summarized in "Youth Unemployment and Career Entry," by Barton, contained in Labor Market Information for Youth, edited by Seymour Wolfbein. 4. See particularly the work of 3erald Bachman and Project Talent. 5. BLS has made more recent projections of the labor force, but not by race, because new population projections by race are just becoming available. The 1970 projections are out of date, since labor force participation rates for black males and females are running substantially below those projected for 1975 back in 1970. 6. Many of the Comprehensive Training and Employment Act (CETA) programs try to get at this problem, but in inadequate numbers and with little attention to the kind of experience that really. helps in the job market. "Public service employment" seems not to be gaining favor; some form of "community internship" shaped at the local level may have to be tried. 7. The purpose and function of Community Education-Work Councils is treated at considerable length in The Boundless Resource by Willard Wirtz and the National Manpower Institute (1975). 8. A respectable argument can be made for replacement rather than supplementation, and for the elimination of in-school teenagers from the* national labor force measurements. 9. For a full development of the concept of the "training force," to parallel the "labor force," see A Critical Look at the Measuring of Work, by Willard Wirtz and Harold Goldstein (National Manpower Institute, 1975). 10. This recognizes, of coUrse, that federal--or even state and local government--effort is only a limited part of what must also be a private and community affair. PAGENO="0097" 93 Chairman HUMPHREY. Thank you very much, Mr. Barton. I'Ve will have our third witness, and then we will come back to the questioning. Mr. Anderson, thank you for joining us today. STATEMENT OP BERNARD E. ANDERSON, PROFESSOR, THE WHARTON SCHOOL, UNIVERSITY OP PENNSYLVANIA Mr. ANDERSON. Thank you very much, Mr. Chairman. I have sub- rnitted a statement that can be published in the record of the hearings. I will try to summarize that very quickly so we can have questions and answers, perhaps. Certainly while the pioblem of youth is serious in general, I think the problem of youth in the inner city is much worse. When viewed in the light of other youth problems the conditions can only be called dreadful. And most importantly, it has gotten progressively worse in both good times and bad. By any measure of social and economic well-being, the condition of youth in the inner city, is in a deplorable state. If we just look at unemployment rates, for example, we find that black youth have experienced an upward trend in unemployment rates which have consistently been above 25 percent since around 1959 or 1960. It is now in the neighborhood of about 40 percent. And not only that, we can look at the withdrawal of large numbers of these youth from the labor force, that is, they are neither employed nor looking for employment. The labor force participation rate among black youth aged 16 to 19 has declined from about 46 percent to less than 41 percent over the past 16 years, while the participation rate among white youth of the same age has increased. That means several things. First of all, it means the measured rate of unemployment does not begin to indicate the full degree of the problem of joblessness for this group. It also means there are serious implications associated with the labor market experience. The fact is that large scale joblessness, the inability to be productive, the inability to find work, the inability to feel a sense of identity associated with work, will lead large numbers of black youth to question the fundamental values on which the Na- tion is based. We are a Nation which believes in the work ethic, we believe the only virtuous man is one who lifts himself by his bootstraps. And here we have large numbers of young people who cannot hope to have any kind of work experience during the very formative years. There are a number of factors which explain that. One, I think, is the decline in the number of semiskilled and in some cases unskilled entry level jobs for inexperienced young people. Many of the jobs have left the inner city and have moved to the suburbs. Many have gone to other regions of the country from the northeast and the Mid- west. And many have even left the country. This reduces the iool of job opportunities that traditionally have offered ports of entry for young people into work. Another fact or I think is a decline in the number of small shops and businesses in the cities. I can recall when I was a teenager in Phila- delphia I had a job as-they used to call us soda jerks-in a little drugstore ad:jacent to the University of Pennsylvania campus where I am privileged now to be a member of the faculty. That store no longer 82-043---77------7 PAGENO="0098" 9i4 exists. They tore it down 3 years' ago,to make way for a new building, `bñt did not obtain development funds, so now it is a vacant parking lot. The pointis that this sort of thing has happened in~'many com- munities. Where are the small drugstores anymore? Where are the small neighborhood shops~ We have large supermarkets, but young people can't be employed there because of the uthon restrictions and the high wages and other barriers We have a situation in which many of the places of en~loyment, where young people traditionally found jobs, have gone out of existence:. And they haven't been replaced by anything. Another factor~ I think, that diminishes the employment opportuni- ties for youth in the inner city is the deterioration of public educa tion The quality of public education in the inner city is dreadful A recent study in Philadelphia showed that about 40 percent of the graduates of the Philadelphia~ public school system did not have the reading competence of the 10th grade. Several years ago I had the privilege to do a study for `Reverend SuUivan o~'the 010.1 knowy~ou are familiar with that. Chairma~HtiMPuREY. Yes. Mr. ANDERsON~ We found that a number of the young, people com- ing to 010 for training; were `graduates of the Philadelphia public school system. Many of them did not have competence in reading suffi- cient to ~perniit them to fill out the application form That diminishes employment opportunity. What we can do about that, quite frankly, ldon't know. Finally, it, must `be said `that racial discrimination against black youth in the inner city is a very serious problem, and ft~ither di minishes their employment opportuffities. Now, we can go `on and on and identify the problems and the di- itiensionS of the problems. I have,done that in tb~ pà~pe.r. Chairman HrMPrnUJI You also made note in your paper that a large number pf inner city youths are in communities in whieh there is a dwindling number of jobs in the inner city itself. Mr. ANDEIISON. In th'e inner city itself, yes. Chairman ~ So that it i~ complicated `in several ways. People are.. not always mobile. .1 hear people.s.ay, well, there is really a shortage of workers in Arizona. The fellow ~t Thief River, Minn, is not~ about to get on his bus and leave his wife and three kids and mother and sick grandmother and take off. for Arizona if' he. really doesn't have to. do it. If it is a matter of life and death he may do it. But if he has got a little unemployment compensation or savings he is going to hang on. . ` Mr. ANDERSON. These problems have been identified by others. I am not the only one who has called, attention to' that.' I' don't want to be- labor that. I think~.many of us know what the' problems are. I would like tO turn very briefly to some of the soluti~ns that we have designed and tried to impleme*t over the last decade. The priupipal direction' of policies designed to assist `youth seems to have been in the Neighborhood Youth Corps and the Job Corps The Job Corps was designed specifically for the disadvantaged and the hard core, as I think they were called, and had resident training PAGENO="0099" 95 centers but moved later to `nonresidential tr~ining centers. I think that the major training program really has been the Neighborhood Youth Corps. Unfortunately I think the evidence will show very clearly Neighborhood Youth Corps simply has not worked, especially the summer sessions. Far too often the summer program turns out to be nothing but make work that has no redeeming value. In fact, all too often in cities like Philadelphia and New York the young people are hired in the summer to scrape the grafitti off the poles that they have been putting on for 9 months d~irin~ the academic year. And for all the value there is in that, the fact is t~at there aren't very many employers that `are going to hire these younger people to scrape grafitti off the teiephoiie poles. The other criticism I have of the Neighborhood Youth Corps is its limited implementation through Government organizations. The private employers do not participate in this. Community-based orga- nizations do not participate. To the extent that anyone other than a Government agency participates it is at the behest of the State and local crime sponsors under CETA now. So I think that the record will show that the Neighborhood Youth Corps simply has not worked, it hasn't done the job, and I doubt that it is capable of doing the job, in part because I think one of the reasons for the development of the Youth Corps, at least the summer segment, was to try to reduce the tendency or the potential for disrupting inner cities. Now, I think that may be a laudable. social objective. But 1 think we can achieve the objective of minimizing that kind of problem by moving in a different direction. I might add that most of the increase in expendi- tures for youth programs since 1969 has been for the summer Neigh- borhood Youth Corps. There has been an increase in expenditures of about $662 million, and 91.4 percent of that was for the summer segment of the Neighborhood Youth Corps. I think that we can do better. The time has come for the Nation to move away from short term paliatives and to consider a major national emphasis on the youth employment problem. I will suggest here a set of ideas which emerged from two conferences this year, a conference on the universal youth service held at Hyde Park, N.Y.-and Don Eberly is here, who had a major hand in that. Another conference was on manpower goals for American democracy convened at Arden House in Harri- man, N.Y. in May. This is a call for a National Youth Service that will redirect manpower training funds primarily toward out of school youth. Such a program would involve: (1) a substantially enlarged commitment primarily to assist poorly prepared youth to become pro- ductively employed in the economy, with strQng emphasis on per- forming useful work in the community; (2) the creation of a separate organizational entity within the Department of Labor; (3) t.he in- clusion of a broad spectrum of the youth population, and not just the disadvantaged; and (4) emphasis on full-time jobs with job counseling and training to the fullest extent possible. Now, the net cost of a program of this type is a matter of some debate, but I think that it need not be signific~nt, because we are now spending in the neighborhood of $2 to $21~ billion a year for youth PAGENO="0100" 96 programs. I think mud],, of that expenditure can be reprogramed to support a national youth service. It would not be unreasonable to think in terms of starting modestly at about 600,000 participants the first year; and increasing o~radually to an autherboici annual enroll.~ iWent~of about 1 million youth 16 to 21 years old. Young people in the service would be engaged in productive work aimed at the visible improvement of their physical and social environ-P ment. I think the Secretary of Labor should be authorized to enter into contracts with public nonprofit or private firms with a capability of managing such work efforts. The stipend and grade of work scale would be congruant with the youth wage scales in the community but I would be unalterably opposed to any employment of youth at less than the statutory minimum wage. I quite agree with Mrs Reubens that the evidence on this does not show at all that a differential minimum wage would do anything at all to improve the situati~xi for youth, and might in fact worsen the employment opportunities for adults with whom youth would in- evitably compete. Funds through the Community Development Act, general revenue sharing, and other sources, can provide materials and supervision of work performance. I think the..main thing here,: Senator, that we need to have a national focus on the youth problem. We need to target on that problem as an important priority in our manpower policy for the Nation. We now are spending quite a lot of money for youth programs. But we suffer from the inability or the unwillingness thus far to consolidate that into a central focused program that would deal specifically, with this problem.:. I think there is a precedent in the Nation for this The first pro gram developed in the 1930's by President Roosevelt was, I think, the CCC. Even before the other programs were developed there was a CCC. And he then came forward with the National Youth Admin- istration-which, incidentially, accounted for approximately 7 percent of the Fed~ral budget. Today the amount that we are spending on youth represents less than 1 percent of the Federal budget, so in that sense we have moved backward from the idealism that . we had in the 1930's regarding young people. I think we need tO redirect that and come back to focus on youth, because this is a far more serious problem with~ profound implications for the Nation at large in the future than I think most of us realize. . Thank you very much. S [The prepared statement of Mr. Anderson follows:] PREPAREb STATEMENT OF BERNARD B. ANDERSON S THE' YOUTH LABOR MARKET PROBLEM Mr. Chairman members of the committee: I can think `of few problems more worthy of public attention today than the unemployment and labor market problems of youth. This issue carrIes profound implications for economic and social progress today, and for the years ahead. Although the problem exists in ma~ :communities throughout the nation, my remarks `will focus primarily on the dreadful situation confronting youth in our major cities. PAGENO="0101" The emp1o~xnent problems of youth in the inner city are pethaps the most serious of any demographic group !n th~ American labor force. Almost all meas- ures of economic and social well being arc less favorable for inner city youth than for others, and most important, have shown little tendency toward improve- ment even durin$ periods of generally vibrant economic activity, For this reason, public policy pre~erIptions for improving the economic status of youth must take specific account of conditions in the inner dty which Oonstrain income and em- ployment opportunities. Mc6tsi~ring tfw problem~ Although a cursory examination of jobs and Income in the inner city will reveal serious disparities in comparison with conditions in other areas, reliable statistical information on labor force status, trends, and behavioral motivation among inner city resldej~ts, especially youth1 are not twailable. As a result, there is insufficient public awt~eness of the dimeimions or real significance of the labOr market problems of inner city youth. In the absence of reliable informatioit, analysts and public officials must rely on conflicting data and perhaps conflicting value judgments in formulating effective public policies to deal with the employ- ment problems of youth. Faced with inadequate information, seine observers ~iave been led to speculate on the real causes of joblessness among inner city youth. One argument often presented in cliscussiops of this issue is that the unemployment rate is an inadequate measure for iui4erstandtng the problems ~f `joblessness among ~outb. ~tany believe that becaua~ youths are attending school in is~t~o uuwber~, `they seek only part-time jabs4ü order to supplement their ~Uscret'io~rnDy Income. Yet a substantial major~y of those aged ii~ and 1I~ have left sdheoi and are Interested in full-time jebs. Further~ a olguificant niunber of inner ~clty youth aged 16 and 17 want fu~ll-thne jobs, and often those who are in Ccbool, while seeking part-time pobs, need employment as a condition for completing school. Adequate statistical data on the. school attendunee, work experience status of youth are not avai1abi~ for local areas, so we do not know the magnitude of this aspect of the problem for inner city youth. Much of the available informa- tion on this question is derived from direct observation of community workers and others involved in the administration of government funded manpower programs. Narrowing the issue Despite the deficiencies of existing statistical data, sonic useful information on youth unemployment can be obtained from reports periodically issued by the U.S. Bureau of Labor Statistics. In the following discussion, emphasis will be placed on the employment status of black youth because a large segment of this group resides in the inner city. There is little question that the "inner city" problem is heavily burdened with race (and Spanish-speaking) implications. Thus, to the extent that one focuses on the problem of black youth, One can obtain insight into the special problems of inner city youthS Some recent trenrls:, School ac4 job status A much smaller proportion of black teenagers tlma~ white are in the labor force at any time. Among blacks who are in school and in the labor market, however, the job finding experience Is less favorable than for white youth For example, in 1974, black teenage males accounted foI~ 9.9 percent of m~U males aged 16 to 19 in school and in the labor force, but only 8.0 percent of those at work. Similarly, black female teenagers comprised almost 9.6 percent of the female teenagers in school and in the labor force, but only 6.1 percent of those with jobs. . About 4.2 million teenagers were in the labor force, but not in school. This group, only slightly smaller than the number in scho~i, were leS~ successful In finding jobs. Undoubtedly, employers use age as an Index of maturity, and' as a result, young men and women out of school., espec4a~ly those who are stiugle, find it difficult to obtain jobs during the later teen years. PAGENO="0102" 98 EMPLOYMENT STATUS OF LABOR FORCE 16 TO 19 YEARS OLD, BY SCHOOL ENROLLMENT STATUS, AGE, SEX, RACE,' OCTOBER 1974 (Numbers in thousandsj Enrolled in school Not enrolled in school In labor Percent of Employed In labor Percent of Employed Race and sex force population force population Both sexes 4,434 41.6 3, 750 4, 155 76.2 3, 439 Male 2 383 43 8 2 047 2214 87 5 1 851 Female 2,051 39.3 1,705 1;~94i 66.4 1,589 White male 2, 148 46. 3 1, 881 1, 937 88. 0 1 661 Blackmate 235 29.2 165 . 278 84.2 190 Percent black 9.9 9.0 12. 6 10. 3 White female 1, 872 42.3 1, 599 1, `)20 68. 8 1, 444 Black female 177 22. 3 104 22.0 51. 6 144 Percent black 8.6 6. 1 11, 3 9~ 1 1 Statistical reports show data for "nonwhites." Because blacks represent about 92 percent of all persons classified as nonwh3te, the term. "black" will be used throughout the paper.. Source: Bureau of Labor Statistics, "Students, Graduates, and Dropouts," Special Labor Force Report, No. 180 (1975). A clOser look at school and labor market experience ~ be obtained by com~ paring the unemployment rates of school enrollees, graduates, and dropouts. A cursory exan~lnatlon of the evidence for 1974 shows high unemployment rates among youth regardless of school status Yet theiO are significant differences in thO labor market experience of graduates and dropouts, and among blacks and whttes~ Among whites, high school graduates experienced somewhat less jobless- ness than dropouts, but among blacks, high school graduation failed to provide a ticket to greater labor market success. Instead, black high school youth who graduated in May 1974 had an unemployment rate in October 1974 of 7.0 percent- age points higher than that among those who dropped out of school during 1974-75. UNEMPLOYMENT RATES BY SCHOOL STATUS AND FOR HIGH SCHOOL GRADUATES AND DROPOUTS, BY AGE, SEX, AND RACE, OCTOBER 1974 . ~ * Enrolled in White school Black Not enrolled in school Total White Graduates 1 Dropouts1 Black White Black White Black Both sexes.: `. 16 to 24 years 16and17 18 to 19 20to24 Men, 16 to 24 Women, 16 to. 24 . 11.5 14.9 10. 1 7.2 11.0 12.0 28.0 36.8 31. 1 16.5 24. 1 33.9 9.3 20.8 . 14.0 7.1 8.8 9.9 . 21.0 14.6 38.6 16.2 31.6 (2) 31.4 16.9 19.4 15.3 15.3 24. 5 24 5 22.8 18.6 18.6 36.2 36,2 1 Graduating or dropping out during the academic year 1973-74. Percent not shownwhere base is less than 75,000. Source; Bureau of Labor Statistics, "Students, Graduates, andDropouts," Special Labor Force Report No. 180 (~975). The difference in unemployment experience by school status may reflect several forces at work in the labor market First, the relatively high unemployment rate among youth In all age categories suggests a high degree of shifting about be- tween jobs, and in and out of the labOr force. Through this process, young workers gain important knowledge ~bout the world of work, and begin to form preferences regarding lifetime career goals and aspirations. Some of the job- lessness might be reduced through better counseling and job market information, but job changing among youth will probably always exceed that among adults. Second~ the relatively greater labor market dFffleulties among black youth are undoubtedly related to their concentration in inner city communities where there is a dwindling pool of semiskilled jobs, and fewer opportunities for em- ployment except in menial service occupations. Racial discrimination in em- ployment must giso be identified as one of the major barriers to greater labor PAGENO="0103" c~9 market success for black yout1~ ~Iutact; these and ot1i~r unfavorable conditions In urban labor markets ~iel~~ ~pia1ia the high rate o~ nonpartklpat1ou~ á~ong black youth `In the labor fOrce. One of the reasons black high school dropouts have a lower unemployment rate than b1acl~ gra~hates is that many of~ ~the dropouts have givert up the search for work and thus, are not ~ounted among the unemployed. Tin tplojjrn e~t trenis The unemployment prOblem of blacl~ youth: has wàrsened progresslve~y ~yer the past decade. One measure of tile trend can be oj~ta1ne'4 by comparative ~ i~ation of youth. unemploymeu~ relative to that for ~he labor force at large. S1~n~e 1960, the black teenage unemployment rate has IncreasM from almost 25 perc,~nt to nearly 40 percent. It ~s important to note, boweve; that during this period, the ratio of black youth unemployment relative to that of `adults lz~ereased markedly~ while a s1mih~ con~parlson of the tthen~4~bywenLrate of youiigiwldtes relative to adults showed little change. It is also important to. note the conilicting trends In, labor force participation among b1ael~ and white youtl~. Since 1960, (and the `t~EiZ~d would be evon more evident If the eomparis9n b~ga~ with 19150) the ~a~G~' ~orce participa~ion rnte among black youth ha~ declined by 4.3 pere~1lt~ge ~pQjnts, While that .n,i~iong white youth actually inoreased by .8.4 perce1~tage po~~lt~. Np ~doubt, worsening job prospects for black youth' help explain these div~rgen~ `trends. The withdrawal of large, Ilumbers of ~d4ck t~~uagers from the labor forge, even those seeking part time, jobs, means the stand~rd uuemplpyment rate fati~ to capture' the full lmpac~ o~ the problem of jiblessness. In reporth~g the b~ac,k yce~th unemployment ratp,, it. is important tp' rem0~u1er that the 84~2 percent unemployed (first qua~$r, 1976) represent less than half of those in the 16'-1~ age group. ` ` ` ` ` , L,480R FORCE PART1CI~ATION AND UNEMPLOYMENT AMONG YOUTH 16-19, 1961 TO .1974'~ Lab ~ bt,force participation rate 1 White Black ~` ` Unemploym ` White ~` ant r4te, Black Ratio teento total unemploym~nt rate White Bla~k Year: 1960 - 49.3 45.8 1~61~ ` 48.0 44.8 1965 , 47.S~ 41,7 1956...... ,_ 49~4' 43.1, ` 1967 `.~.. ` 49.8' -` ` ` 43.9 1968 49.9' . 42.9 1969 51.2 42.7 . 1970 52.0 41.4 1971 54.6 38.7 1972 54.6 39,7 1973 ~ 56.4 41.1 1974 57.7 4L5 ~ 13.4 15,3 ~3, 4 .~ 11.2 * ` 11.0 ` 11.0 10.7 13.5 15.1 14.2 12.6 14.0 ,~ 24,4 `27,6 26.2 ` . .25.4 26.5 ~` 25.0 ` 24.0 29.1 31.7 ` 33.5 30.2 ` 32.9 ,, . 2.43 4,44 2.28 ` 4.12 ` 2.98 5.82 2.,94 6.68 , 2.89 `` `6~97 3.06 1'6.94 3.06 6.8 2.76 5.9 2.56 5.37 2~ 54, 5.98 257 ` 6.16 , 2. SO `. . 5.88 .~ 1 The ratio of the noninstitutionalized population, 16-19 employed orseeking Jobs. $ource~'U.S. Department of Labor, Manpower Report of the PreSident1 1975. E~onrco~o~f ffiner city Job'Droblem~s The employment dimeulties of inner city youth have been exacerbated by un- favorable ti~ends in job' eportunltles In the cities. `X'he ~vCli documented evidence of industry relocation reducing the ptuñber of semiskilled jobs In the city, `eOrn~ pared with areas outside the city cOntributes to a Shortfall in emplo~~rment op- portun1ti~s for youth, especially those 18 and 19 years of age. Perhaps even more important `is the continuously ehailging structure of labor dematx4 In ex- panding `occupations wj~tldn the city. Increasingly, `the jobs located in the city segment of major metropolitan areas call for a l,~vel p~ education and sidils not available among `the large ~numbers of In~ier cft~. ~rqu~1~. The wldesprea4lnade-, quacles in `the quality of public' schoci ed~lccvUon (~e~Leeted In the annu~1 sur- veys of student achievement) do little to prepare ~ot~th for even the available entry level jobs which require , oi~ly rnçcdest. e(luca~i~nal `atizinment. ~or ox- ]~ducatioñ reported that about 40 percent of the high ~èhool graduates' f~Uled to attain a level of literacy comparable to a tenth grade' education. As a result of PAGENO="0104" 100 such disparities between the educational prepr~ti~n o~ ~outli, an~1 the hiring standards of e~ap]~yers, large scale unemployment among inner city youth often exists simultaneously with significant numbers of job v~ieanc1es in entry level white collar jobs in many cities. ~ IlL addition tO these factors, the changing attitudes of youth toward labor market participation undoubtedly contrIbute to the problem of joblessness. Many inner city youth reject menial, service type jobs previously accepted by youth newly entering the labor market The preference today seems to be fo~ "good" jobs,~ or at least entry level positions which appear to lead towaid higher status and, higher' income in the uear future. The attitudes and motivation of youth tthvard the labor market and job opportunities play `a large role iti `determining their employment experience. P~,,1~tic policy prescriptioas ltemedtai manpower prcigtams developed during the past decade were beamed heavily toward. youth. Between 1965 and 1972, for example, 73.2 percent of all first time enrolides `in major manpower programs were under 22 years of age.' The Neighborhood Youth Corps and the Job Corps wene the major youth pro grams, but substantial numbers of disadvantaged youth. also participated in MIYFA Institutional Tr~lning, the Concentrated Employment Program, JOBS, and the Opportunities Industrialization Centers. Unfortunately, the Neighborhood Youth Corps has not contributed significantly to an improvement In the labor market status of youth. NYC is mainly an income trausfer program for youth that does not emphasize the developmentof occupa- tional job skUlls. Most projeets are make-work, part-time jobs paid at the mini- mum wage, and administered through state and local govemnmental spontemS The major cotaponent of NYO, the summer employment program, Is even less oriented to skulls training than the out-of-school, year round component. Despite Its shortcomings, NYC has received the lion's share of increased fed- eral funding for youth labor market progiams Total expendituies doubled be tween 169 and 1974 to a total of $662 million. Almost all this Increase (91.4 percent) was for the summer youth programs. Summer NYC expenditures in- creased by over 200, percent durIng the past seven years to. $410 million, while enrollment In such programs increased by two-thirds to 755,000 persons in 1975. National yostlt service The time has come for the nation to move away from short term palliatlves süd to consider a major national emphasis on the youth employment problem. Several p~Qmising alternatives were considered `this year' during the conference an Universal Youth Service, at Hyde Park, NY in April and at the Atneilcan Assembly on Manpower Goals for American Democracy, meeting at Arden House in May. What Is required today is a Nati6nal Youth Service that will `redirect man- powem tr'mimng funds primarily toward out of school youth Such a piogram would involve (a) a substantiall\ enlarged commitment primarily to assist poorly prepared youth to become productively employed in the regular economy; (b) a strong emphasis on perfonming useful work ri the community (c) the creation of a separate organizational entity within the Department of Labor; (d) the inclusion of a broad spectrum of the youth population; (e) an emphasis on full-time jobs with job counseling and training to the fullest extent possible. The net cost of such a program would not be significant because existing man- powei expenditures for NYC (now running about $12 billion iuduthng the summer program) can be repiogrammed to suppoi t a Natzon'il X outli berl ice Thq program might start mo4estly ~s ith 600 000 particip'mnts the first year and iuuease gradu'mlly to an authorired annual enrollment of about one million youth 16 to 21 yeai s old Because not nIl youth r~ ill i emain in the pm ogram fom `t full year the total number of participants will be gieater than the `nyu age nionthly nttmber. Young people in the Sers ice would be engaged In productive wonk aimed at the visible Impiovement of their ph~ sical and sucial environment The $ecretan~ of Labof ~bou1d be authorized to enter Itito contracts with public, mi~nprofit, or private firms with `the capability of managing such work efforts. The stipei~d and 1 e, R. Eerry~ B. ~. Anderson. Ii. L. Rowan and H. R, Northrup, "The Impact of Goverm mont ManpoWer Programs" (Philadelphia, industrial Research Unit, University ~t Penn- sylVania, 1975), p.22. PAGENO="0105" 1'Ol graded wage scale would be congruent with the youth wage scales in the com- munity. Funds through the Community Development Act, general revenue shar- ing, and other sources èan provide materials and supervision of the work performed, Particjpation in the Service should be limited to two years during which youth would gain opportunities for skill acquisitiOn useful for transition into regular emplo~yment. It is unlikely that anything of significance will be done about the youth employment problems of the. inner city until th~ natioi~ turns specific attention to the problems of the young as a matter of social policy. Current federal pro- grams to aid non-college bound youth in. their transition from school to work are small in comparison with the need, and are not targeted properly to help relieve the problem. Economic recQvery, by generating more jobs, will have'soth~e'effect on youth employment, but, economic growth alone will not Improve ~ignil1cantly the conaitions for minority growth in the inner city. A new national eff~rt, designed to cons~1ldate and redirect much~ of the current spending on youth holds promise of generating the kind of ,focus,~ ei~ergy, and p~1rpose necessary for achieving mea~urable gains In the labor market status Of youth. The National Youth Service idea desetves ca~ful examination a~. an alternative to the currenfefferts which, thus far, have proven to beünsu,eessful. Chairman `EUMPHR1~Y. I thahk you. `~ I want to thank you most specifically for ~oür' prop~sal, that you o~it1ined here in the final part of your statement ~I th'~ ~National Youth Service,. bçcatise' what you have said i~ pate~itly true. `The Neighborhood Youth C~rps-I want to commeut about both its: assets ~tnd liabilities and hrni1~ations-the problem with the Neighborhood T'outh Corps is that it doesn't le'Lve much behi~d it in terms of what has actually been doité. Ançl there is n~' time fraine~ fOi~ planning the kind, of programs that ~ieed to be mtdertakCn. `Aii~ t'14s again~ is' dine to the Congress and. the administrati,on ~ailing to come to grips with,, the program on more than a 1-year basis. I guess we sort of feel around here that everything ~s going to be corrected in ~. year. You will notice that I don't believe tITlat. JI think that this busin~ss of budgeting and authorizing foi~'i year at a time is as useless as a fivo-legged `bug. I don't think i.t has very much usefulness at all. I think that we ought to be looking ahead instead of wasting vast sums of money. Much of our problem with Fede~ra1 aid `to education has been that' the school people, couldn't properly program the use of Federal funds,' because we never got around' to passing, the fqnds until a month or so' after the schools `had opened, And then they weren't aliow~d~ to plan' the use of, the funds, 1?ecanse if you don't' use up the funds you `can't make a case the hext yeai~ in Cohgres~ for the `appropriation that you need. And I kiio~w,' frOm emperical. evidence and from personal obsCr-' vation, that large amounts of m~one~ h~v~ b~Cn used ine~ectivCly, and in a very real sèfise, wastefully in"ord'er to"justify nat year the claim for an additional appropriation-not thai the funds wouldn't be' needed if they were proi~erly pl~iined,~ they `were .j'ust not properly, planned. ` Somewh~re along `the line this morning-I `have forgotten who the' witness was~-sotheone talked about the ~ecessity Of Coordinating the' Federal G"ovormneñt's monetary policy, fiscal' policy, and büdgetar~ policy, which I think on its face w~uId sound~like it i~ `a"rather ~ensible, observation. But again *e don't have that. , Now, I am one of the authors of the bill around here called the Humphrey-Hawkins bill, which ~s goih~ throu~h the stages of modi- fication. We have in that bill two ~s'ections.' The first secfion relates to basic Government eoonomk~ policy. It calls `for some plañnin~, not the 82-043-77-8 PAGENO="0106" 102 kind of planning that tells the steel industry how many tons of steel it can produce or the farmer how many busbels of wheat he will pro- duce. But it calls for some better coordination of the economic tools of Government, and in stating the goals we seek to achieve in employ- ment an4 gross national product and in income, which seem to be rather reasonable objectives. Ai~d it calls upon the President in con- sultation with his Cabinet, with the O~ce of Management and Budget, the Department of the Treasury, the Council of Economic Advisers and the Federal Reserve System, to present to the Congress of the United States not only the goals but also some of the means to achieve the goals. Because I happen to agree with Mr. Samuel who was here, that you have got to look at youth unemployment within the frame- work of a full employment economy, knowing that there are struc~ tural diffevences. I am not unaware of that. And that is why in the Humphrey-Hawkins bill we have a segment on youth unemployment. And why did they separate out youth unemployment? Because it is di~erent. No matter how much you iook at the total employment pic- ture, in today's society with the family structure being what it is, with the urban situation of our society, the technology being what it is. and what you have just said here about how there us~d to be all the little stores aiid shops as there were when I grew up as a boy, that is all changed. Therefore the problem of youth unemployment is separate and distinct. You don't get the chaps that you used to have as a boy or a young woman and at your home town levels to become an appren- tice without being in an apprentice program. That is why we talked in the Humphrey-Hawkins bill about a goal of unemployment of not more than 3 percent adult unemployment. Now, what are the figures? Some people say 3 percent is too low. And that is all arguable. I just happen to think that we ought to have tight goals. I think you ought to try to figure out how to run the mile in 3 minutes and 50 seconds. Anybody that is good today can run it in 4 minutes, So let's get the goal dowii. Let's find o~t-this is what we do in the aviation industry, we see if we can't get a plane that will fly just a little faster. But when it gets down to something like employ- ment, and you get around to talking to financiers, and the establishment crowd that likes it the way they have got it, you say that there is to be 3 percent adult unemuloyment, they begin to have a conniption fit, as if it can't happen. Of course tt has happened in many countries in the world. And then we lift out of that that group called youths, age 16 to ~0, because they are different. And your testimony here this morn- ing has told me that it is different. I want to call u~ some of these char- acters that are writing these editorials about the Humphrey-Hawkins bill and tell them that there is a difference, a 3 percent unemployment for adults, coupled with the youth unemployment goals that we would have, would be about 4 percent unemployment across the board. There isn't anvb~dy today that really wants to get up and give a speech that you really shouldn't have a goal of 4 percent unemployment. But when you use the word 3 percent for adults, it just triggers all kinds of reactions. Our problem here is a problem of attitudes. I think it has been stressed here, if I have gotten anything out of this hearing this morn- ing that is helpful to me as a Senator, it is-and I believe, Mrs. Reu- bens, you emphasized it, as you did, Mr. Barton and others-that PAGENO="0107" io:~ th~re J~s .~ tQ j~E~ ~ gt*~te~r ~ ~ ,gi~t~r ~ ~p~u i~he raJthe~r unique di~tinctivc problem that ~s ~iic~t ~u1y A~~r~ic~ii ~tod~Ly, J3Ut 1~ tI~ w(~*iw~d~ ~he~un~w~t ~f y~i~th ¶~fl~WpIQ~1~t, ~;ii41 the p1~ t~o*i i~th~c1s ~ ~ist ~st~rn~'~1üng ~ ~ o~ i~i ~ ~kn~tget ~Lcy~-~*IafJ m~ goo~a ~u~nd AaUmr 1~uirn~ thek~rtiig ~ioirncI with t1~ie d~s*~ount ~ata~-doesn't do ~t ~y~re It c~s ~J1~1St d1i~Z~t I put at r~ght ~it tth~ ~ItLE~. j ~ ~fl~t~Ci$t~. 1 l~WXwtJT1at yQUJW~ ~ o~f irnrnunZy 1~o certain typos oxf medicat~ows. M~d th~ eCO~iQrny ka~ a ~eert~ai t?pe o~ immu~nit~ to ~oertain ~inds o~ ~conornic injections o~ economic ~oiicies that we~have~appbed from~ime~to~time. One ~of the reasons I ii~ke to be a ~Sena2t~ is ~that it g&ves `me `a ~ot ~Qf independence to shake up the peçpie iho are the movers and the ~ha,kers, ~ have got a lot cf ~eopie who do&t want to niece and who don't want to shake, they just want to sit in ~e n~h~offices and look out over the scene and sigh: "All tho~ongcrsit~4ay,.they~re bad, or they ~acre black, or ~iey ~ this, or that," and nothing will happen I ~lon't care whether they are green and purple or striped I~i1ke a zebra. The ~fact ~of the ~atter is that they are here. 4iid we have got to getatttprebiem. An4 I want `to cay one othr thing. I ~beli~ve I ~heard you say, Mr. Barton, and rig'btly soft one p&int in your ~eme~s, `that there were no jobs to be phased iiito There is work to be done, but no jobsto be phased Into What is the economic answer? There are limitations on jobs, that Is, in what the private sector provides in terms of jobs But there is work to be done, all kinds of work to be done ¶ can take you out e~nd s~pw yen enongh work to be ~~~one $9 that you will stagger for a year, `1 was hQn~ie over the J~abor Day. Every maypr in my ~tate-~-j don't thIn~k there are any of them that havei'i't been in touch with me-in fact, I hnve left this j~o~m twice to meet with local offlcials from ~y home ~ta~te What do you think they are down lie~re for ~ i~mergency public woi4~s money? I ~çnow `c~hy. `Eeca~jse there is woit to be: done, And there is a lot of it to be done. They have got pro~jeets running out of their ears. Of course, they nrc b~ying to find out how they can wrlte. up pro- posals so that ope of these Fe&eral agencies will come in contact with them, because these is a certain kh~d of parlance, yei~biage, that you have to ~d4. I lea~n~d some ~f that so that I can give thein a littje ad- vice, I can make itso good that somebody will be impressed in Qhica,go `tt the regIonal office, But the best way to inapre~s them i~ to say, give me your proposal, I will take it right down to the ~Lesk and staiicl over their' adviser' down there until he says yes. That is the only way to ge,t it doi~e,. That mail system d.oe~n't work. You have got to go down and jam it down their throats, so you put it on his desk. And I have, hpñ to do this ac a man in public life. But my point is, I am weary of hearing that there aren't jobs There are jobs ~T~bs are what you create You get jabs by investment What kind of Investment ~ J~Iopefully prIvate investme,nt I was a private entrepreneur. I bel:ieva in profit I don't believe in running o~ the poverty ticke,t I went around and tried to prove I was the poor man's caTldldate in West Virginia I lost my shut I would rather just be, the candidate of the people that like afl the good life. I love the good life. I love all the pleasures of life. But I know this, PAGENO="0108" 104 if the private sector can't provide jobs, then somebody else has to do it. And that is what Government is for. And this is all a tape, my tape repeating it time after time. I have no compunction whatever to suggest that it is the duty of Government, Federal, State and local, to provide for people if people cannot pro- vide for themselves. And that is exactly what we are doing today. What we are doing today is giving them food stamps, giving them welfare, giving them unemployment compensation. And we have adulterated and violated the principles of unemployment compensa- t.ion so much that I doubt that we will ever be able to put it back together the way it was really intended to be. It has become a perma- nent kind of income maintenance program, which it wasn't ever in- tened to be. It was intended to be a temporary insurance program to tide us over between jobs. F Off the record discussion.] Chairman HUMPHREY. We need you to go talk to Business Week, to the Wall Street Journal in New York, and Barron's Weekly. Because what you say here, if you believe what you say, isn't what is being reported to the American people. The American people are being conned into believing that there is nothing we can do about youth unemployment. And they are being told that we spend too much. Now, on the Neighborhood Youth Corps, that program has one merit if it has no other. And I go back to what I said before. It gives something to do, though not as much as I like. It can work well. I have seen it work well. And I have seen a baseball field constructed under the Neighborhood Youth Corps, a softball field, and tennis courts in my home town. I saw them put together with a little local ingenuity in a little old town of 600 people. And they had the Neigh- borhood Youth Corps for two summers, and they have taken those kids off the street. You know what those kids used to he doing ~ They were in jail over in Buffalo. The sheriff was rounding them up every other week. Today they have built something, they can go out there and look at it and they see the playing field that they built. They are building campsites. I know that they can do it. Of course, as I told them, they are most likely violating the law a little bit, but I gave them absolution. I said, go aheadq we are going to get it, done, and we will keep these characters out that are trying to obstruct you, let's get it done and put those kids to work. And we have put it together. But it takes some doing. You just can't sit up here and scratch your head and hope it is going to happen. Somebody has to get out there, as one of you said, and manage it. There has to be management, supervision. Much of the problem in the Neighborhood Youth Corps-Mr. Fiaherty was here awhile ago, an excellent mayor, and he told us- all at once the mayor is presented a package of money, it is announced in the paper that there are so many jobs, and he is supposed to put them to work tomorrow. It is impossible, absolutely impossible. The public service job program: We had public service jobs~ but we didn't have any materials. We tried to amend the law. I think we finally did get it amended so that some of the money for public service jobs could be used maybe to buy a bag of cement. A~~d my point jSq there is work to dø. And I am going to spend 6 years, if the voters are PAGENO="0109" 105 willing and the Lord, raising unshirted Cain in this city until we get at this problem. Because I am convinced as my name is Hubert Humphrey that if in 5 years we are not doing better with the youth unemployment problem we are going to have guerrilla warfare in the cities. We have been paying them off just like we used to pay off Al Capone in Chicago. He would give you peace and quiet, too, if you paid him off. That was what it amounted to, give them a little money and pay them off. If you don't take care of them they rip off somebody. And that is the way it is happening. There is no way you are going to keep these young people idle and silent, no way. And maybe you can help out. I think that some of you are being consulted by the President, and the man that `wants to be President, and a few of those other good folks around here. I want to put in this record, if we don't improve the youth employment program in this country in the next 5 years, I predict that you will have trouble in the inner cities, the major metropolitan areas. I also predict that youth crime in rural areas will double. It is already doubling. It is incredi- ble. But you know they don't like to hear that out in the rural areas, because the county commissioners like to believe it is pristine purity out there with all the work ethic and all. And it is nice. I have lived in the rural area, and it is very nice. But I have seen what vandalism can do. Kids from good families, they are as white as the snow, Norweigian, Scandanavian, Irish back~round, they attend church and they raise hell during the week. And 1~under- stand why. I am not critical. As a matter &f fact, I am very under- standing. There isn't anything else to do. Why not? They like televi- sion, and they don't have them. So they go get them. They like stereos. And not only that, there are always some people who will buy televi- sions and stereos. Look what we have been reading about in the District of Columbia here on the heroin program. And the question I think that needs to be put to each of you is the relationship between youth unemployment, alcoholism, drug abuse and street crime. Now, what is the evidence? Do we have it in Europe, Mrs. Reubens? Mrs. REtrBENS. Yes, there has been an increase that has gone along with the increase in unemployment. But I think we shouldn't minimize the ability of fully employed youth to be delinquent in their off hours; even with full employment we have delinquency and crime problems. Unemployment tends to intensify such problems and this is always cited as one of the reasons for instituting employment programs rather than simply paying maintenance money to youth. Chairman Hui~nmu~~. I think our living style today lends itself to much more permissive standards, which in turn is sometimes inter- preted. by others as forms of delinquency. It isn't that the standards are necessarily related just to youth. What is the name of the gentleman who is. conducting a study over in Johns Hopkins University? Mr. BARTON. Mr. Harvey Brenner. . . Chairman Hui~ninu~r. Are you familiar with his work? Mr. BARTON. Yes. . . Chairman Hui~nnm~r. I understand that his study reveals a very close. relationship between the social problems and the youth unemployment. PAGENO="0110" 106 Mr. EAn~o~. I just happen to h~ire finished a small survey of the research for HEW in that area. And the ei,ridCnee to show a relation- ship between unemployment variations and adult cr11110 is very clear. Unfortunately the statistics are collected In such a Way that for that critiCal group of age 1~ to 21, wh~ are still youth, but beyond the juvenile delinquency period which is defined by law as 10 to 1, the data is not there to put the relationship to the test for that critical age period. And ~he~ you look at ages 10 to 17, which are the juvenile delinquency years, you will find the research not to shoW the same thing as for adults, because at those ages ob~iotisly One is judged by how well he or she succeeds within his family and Within his school. The occupational identity is not uppermost until about 18 to 21. Mr. A~ue~so~. I think one bit of evidence that can also be added here is the dreadful rate of violence in public schools. Chairman }IuMriiunt. I was just going to ask you about that. Mr. A~DE~SO~. Including such deplorable things as rapes of the teachers before the classroom. The National Educational Association has published evidence of the very high rate of violence and ~randalism In the public school system, much of, it perpetrated by young people who are not enrolled in sch~ol. Many of these crimes are cothmitted by older kids who come into the school. Chairman IIu~r~nm~. yes; I have heard of that. Mr. A nmlsoN. And it requires. extreme security measureS just to protect public school teachers from this sort of thing. In Some of the recent contract negotiations the teachers ha~re demanded that provi- smus be put ih for this kind of pr~tectiofl. 1~elath!=e to your question, I perhaps should mention that si11Ce April of this year I hate been pri~iieged to be a member of Presidential candidate Jimmy Carter's economic policy task force. While I am not at liberty at the present to indiente the substatice of our discus- sions, I can say that the question of youth. unen'ipioyntent has been discussed, and discussed in detail, and this is a continuing matter of high priority among the ~economists who are working with him in this area. Chairman I n~rnn~t. I hope that whatever you are doing you are thkhig a good look at th~at neighborhood youth program Senator ~Iavit~, for example, a member of our committee, is a very stiong pro of that program. I have worked wfth him and we have tried to increase the funds for that program And really what it amounts to is, if you don't have the right kind of treatment, you do what you can with what is available4 And again I think ths~t much of the weakness of the program is in two areas The failure to program it Over a long enough period of time, and second, inadequate supe~rvision. I think supervision is so im- portant. I am chairman of the ~ub~ommittee on Foreign Assistance, and we work on what we call managethent supervision. That is what we all say now, whefl you put that money into Africa or into ~angla- desh, what you have got to make sure of ls that they have supervision because if you don't dG that, it won't work. And we COme right back home here and do the same things to ourselves, only we dOn't even say it, we don't provide it at the levels that we should. now, the supervision is there, there are competent people, as was said by Congressman Reuss, very competent people in our local gov- PAGENO="0111" 107 ernments, in our nonprofit organizations, and surely competent super- vision in the private sector. I think it is all a matter of how you con- struct the program. As Mrs. Reubens was saying, in Europe they actually take the time once the program is legislated. There is a time gap in which there is preparation for launching the program. Then they may start the program on a limited basis to give it the trial and error imperical testing that is required. We are going to do some more work in this Congress, Mr. Anderson, Mr. Barton, and Mrs. Reubens. And we are going to ask you from time to time to help us. This committee prepares materials for the legislative eommittee~. I belie~vë that our legislative committees that have worked on this need to get a whole new insight into the nature of this problem, and some new thinking about it. I really was impressed about what was said here, We put $1.2 billion into NYC; that is the figure I heard this morning. That is quite a bit of money. And there are also local contributions. Now, we have to ask ourselves, and we ought to be asking ourselves, what do we get out of that? It is not just giving somebody work and saying, "well, at least they are at work." That is a minimum. But do they really get any experience that is worthwhile, do they get any kind of instruc- tion and training that you might call preparatory for a better job? I think that with the exception of CETA we see very little of that. I am a strong CETA per~on. I think the CETA program with its different variations has done quite well. The big question that we come into-aM I won't keep you much longer-with youth employment is the competition with adults. Some of you hare referred to this. And one proposal, as we talked about, that ha~ been floating around, is to reduce the minimum wage for teenagers. The evidence relating' to that indicates that It doesn't have much beneficial effect in terms of youth employmeht. But there is a big feeling dut there that it does, I will guarantee. Now, If you have a public service job program specifically designed for youth, what kind of work could they do that wouldn't put them in competition with adults who have been breadwinners? Now, some youth are the bread- winners for families, obviously, but most of them are not. So the ques- tion comes up, if you had a public job program that was designed specifically for youth, what kind of work could they do that wouldn't take the ~ob away for someone who was willing to work for the same amount of money either in an en~ting government institution or in the private system? Would you like to comment on that, Mr. Barton, or Mr. Anderson? Mr. BARTON. Mr. Chairman, that is one of the very hard problems to the extent that we a~e talking about the 16- to 19-year olds whose employment situation, as you said earlier, is so much different that they really need to be treated separately from adults as you have in your bill. I would go even further and~ say that they probably need to he treated separately in the national unemployment measur~rnents as well, because they are a group that is within both educatiOn and work; about three4ourths of them over the course of the year and while they are in high school, will have had some kind of casu~l jobs. So as we create experience opportunities for youth in the schools `we want to combine that experience with work, because we think that educa- tion now is something which requires experience outside of the class- PAGENO="0112" 108 room, and we now reach back to John Dewey in that respect. To the extent that we put more experience in the education periods of life, I think we can work out at the local `level, on a varying basis, some- way to provide those opportunities under the educational umbrella rat~her than so much on the regular adult work side using more of a stipend approach. There are very many possibilities for that. But as we create public employment, opportunities for older out-of-school yOuth and adults there is the important question of comparability of ~wage rates. Perhaps there is some new ground that can be broken in creating more productive roles that does lie somewhere in the area of work, but outside the area of regular jobs being performed in which a stipend approach is also applied, depending upon need. Wherever you create public work in regular public agencies, I think we have to recognize that we do now have civil service systems and we have public employee unions, and an awful lot of work that we could do in the thirties ~as not then work being performed on regular basis that now is somebody's rice bowl. Chairman HUMPHREY. I know it is a very different ball game. And the comparison between what you can do now and what you could do in the 1930's is like oranges and apples, it is not the same at all. Mr. Anderson. Mr. ANDERSON. It would seem to me that the problem of the com- petition between youth and. adults will be very much reduced to the extent that we can achieve full employment. As long as we have large numbers of adults unemployed, it will be extremely difficult to develop any sort of public service jobs program exclusively for youth. So I think that we should always be thinking in terms of re- ducing adult utiemployment and phasing in youth if we want to go that, route. I would prefer perhaps somewhat less public service em- ployment for youth, as compared with work study programs. But to the extent that we have public service employment for youth, it is likely to minimize the problem of competition, only to the degree that we have adult unemployment declining. The next thing is the way we target the youth employment oppor- tunities. I think that the chances for minimizing the competition with adults would be greater if we would expand the range of institutions and organizations capable of providing those public service jobs, for example, to bring in the community based organizations, the private firms and others, so that it is not only the local government. I would think that Mayor Flaherty in Pittsburgh would have a hard time hir- ing youth' when there are adults unemployed. But if you had an OIC and an Urban League and the others who could have some of these slots, the problem of competition could be minimized in' the manner in which it is administered. Chairman HUMPHREY. Mrs. Reubens. Mrs. REUBENS. Some of the European experiments have gone along this particular line. In Britain they have something called com- munity industry which is based essentially on our youth programs. Canada also has such programs. There {s heavy reliance on local authorities which decentralize to voluntary organizations. I think also an approach involving training for youth might be useful. We have to divise different kinds of systems for training youths. PAGENO="0113" 109 I believe that covers the point. What both of the gentlemen have said could be combined to provide the various alternatives. In the United States we may have been emphasizing public service employ- ment to the exclusion of other opportunities to help youth, especially to cope with the different situations of the various groups of youth. Chairman HUMPHRE~r. Very good. I note Senator Javits may have some questions. I have one more before I must leave you. One of the arguments that is made to sort of slow us down in our efforts at youth `unemployment legislation and programs of any long- range duration~-because s~ré of us think the problem has a long-term life to it rather than just a recession based phenomena-one of the arguments is that the baby boom is really over. The baby boom was blamed for the unemployment problem among our teenagers, ahd there are those who hold that the teenage unemployment problem will naturally go away as the number of teenagers and youths in the popu- lation falls. Now, that may have some merit for white teenagers. The Bureau of Labor Statistics data we got when we prepared these questions esti- mates a fall in white youth between 16 and 24 years of age in the labor force from 19.2 million in 1974 to 17.5 million in 1985. This is a drop. But that same Bureau points out that the trend among black teenagers is just the opposite, with the number of blaëk youths in the labor force projected to rise from 9.6 milliOn in 1974 to 3.3 million in 1985. When you add to that the evidence that we have had so far, that while there has been some `improvement in white teenage employment, there has been a decline of the employment in the black teenagers. In other words, the black teenage unemployment level continues to rise. I think that the argument, therefore that we can just sort of wait for the birth rate cycle to take care of all this ha~ little or no merit. Do yOu tend to agree with that ~ Mr. ANDERSON. I certainly agree with it. And when you consider where the black teenagers are likely to be, I think that' we could see in 1980-4985, with the larger number, heavily concentrated in the inner cities, we are still going to have a problem. But it would seem to me, Mr. Chairman, that we would have a problem legislating on the basis of that interpretation of the issue. For better or for worse I must say to `you quite candidly, that I sense in the Nation some bloom off the rose when it comes to developing governmental programs that would have beneficial effects for blacks and other minorities. I think that if the youth employment problems are framed in terms of the disparity ef- fects that it has upon blacks and the Spanish, I doubt if you could get political support for doing very much of significance. That is another reason that leads me to support the notion of a national youth service that would encompass everyone, so that we could get attlie differentia- tion but without the exclusive focus on the minority groups, Chairman }IuMPmn~Y. I fully agree with that. Just to round out my commentary here, I am going to ask my col- league, Senator Javits, if he wishes to visit with you for `awhile. I have ~an appointment. And there is a roll call. As I have sensed it here, there are several points of basic agreement: the necessity of depending a good deal more on our education system, PAGENO="0114" 110 with modifications in that system toward work study through more career directed education. Try to keep as many of our young people in the school system, with the objective not only of having them in school, but of preparing them for the employment market, at least a partial preparation. Second, you can't deal with the youth unemployment problem alone, you must deal with the whole subject of employment,, and the em- ployment of the employables. And while it is true that the youth area has special features to it, unique difficulties and problems, if you are going to get away from these programs that seem to be competitive, where an adult is afraid he is going to lose a lob if you have a youth program, you have to get the economy going at a point where there is really job opportunities available for the eligible adult work force, which in turn of course will absorb a number of more qualified youth. The next feature that seems to be somewhat in agreement is that we do need to have specialized youth employment opportunity pro- grams within the framework of a full employment or a maximum employment policy. And I think that Mrs. Reubens has helped us here a great deal in noting some of the reasons why there are youth employment problems, because there are factors that have come into our national ~conomy and into our social structure in the last 25 years that are appreciably different than we had in, say, the 1930's or even the early 1~40's. And she has added to that that the problem of youth unemployment is not uniquely American, nor are the programs that are being used uniquely foreign. As a matter of fact, they are using many of the same programs we are and different time frames. So different approaches have been outlined here. But the industrialized countries all do have or are beginning to have, severe youth unemploy- ment problems that are related not only to a recession, but to structural difficuities and technological developments. You have all been here, or most of you have, during our discussion this morning. Does that round out some of the things we sought to bring in this hearing? Do you feel that way, Mrs. Reubens? Mrs. REUBENS. Yes, very much. Chairman HUMPHREY. And Mr. Barton? Mr. BARTON. It sounds like a good summary to me. Chairman HUMPHREY. If you have anything else that you feel worth noting, feel free to do so. Mr. Anderson. Mr. ANDERSON. I agree with that as a summary. Chairman HUMPHREY. May I express our thanks on behalf of the committee to you. I must go to an appointment. This is my partner here and senior colleague. Senator JAvITS [presiding]. I would like to submit questions in writing to each of you. Will you be kind enough to answer them? If there is no objection they will be included in the record. I will give the questions to you now. The main idea I want to present is as follows: I find that in the United States there is a great gap between the unemployed and learning skills and continuing education. I believe innovations along this line are critical. Let me explain the legislation as I see it. PAGENO="0115" 111 We are interested in Govern~nemt. Instead of paying unemploy- ment compensation or welfare, we can grant stipends. What gov- ernment~il support can we provide for the unemplo7ed, or the people who oan't initially get into the work force, though he or she is of age and ready to enter the work force? how ean we employ the idea ot issuing stipends either for &uc~tionwl pi~rpos~s or further train- ing? I warn you, however, that a stipend doesn't necessarily improve training. One ~f th~ most successful traithug programs in the United States is the QI~J, which is run by the Reverend Leon Sullivan of ~hils4e1phia, This program ha~ no stipend, whereas the manpower training program, which has a stipend, has not been as successful as OIQ in training and then, in matching the training to a job. That i~ one example. Again, I pose the question to you, how can we use a stjpen~ for th~ purpose of encouraging training or education or both? Seeond, how can we mo~ ei~eetive1y utilize government aid. to have business~ watch training with jobs, lessen the gap between the unemployed and learning skills, and continuing eduea~tion? I would appreciate it if each of you would include some ideas on this subject in your answers which you give to the questions I have asked. If you wish to advance anything now, though my time is very short, please feel free to proceed. Thi~ is what troubles me. How do you get Government into that gap? I notice the discussion on miaömum wage, et cetera, was very lengthy. As the ranking member of the Labor Committee, it is some- thing that has greatly concerned me. Generally, I have stood with the unions, especially in regard to compromising in any material way the minimum wage. I am ready to reevaluate the situation and my stance, if it is really a significant and major factor. I don't believe it is. If you experts believe it is, you could persuade me, although r would be hard to persuade. My mind is worried. Any observations any of you wish to make would be welcome. Mr. Barton, Mr. BARTON. Just briefly, sir, on the possibility of educational stipend during adult years, I woi~ld hope we would move toward an educational renewal oppor~unity of about a year for everylody, the unemployed and the people who need to change careers and those who are about to be forced out of jobs became of technological change. There are probably a number of ways that we can move in this direction. One of the possibilities js unemployment insurance, and your ~pproaeh toward making that more available rather than having the limitation where we now provide about ~5 weeks of i~sur- ance on the conditions that one does not do very much by way of going to school is a good start there. Also, there are the growing tuition aid plans in private industry which would be supported, and the growing educational brokerage services for adults such as in Syracuse, NX~., which will help bi~ing opportunities in line with those who want them. These are aree~ in which we seem to be moving in directions which should enlarge those opportunities. Senator JAYITS. Thanl~ you. Mrs. Reubens, do you wish to ~dd anything? PAGENO="0116" 112 Mrs. REUBENS. There is a question of the legality of turning unem- ployment compensation to any other use. And I think that constitutes a p~roblem. If I understood your question, it was that you would pre- fer not to have the unemployment compensation money paid as it is flow, but rather converted to other uses? Senator JAvIT5. Exactly, to earn it by doing something that is going to help you get a job. Mrs~ REUBENS. I think that is a very difficult thing in view of the history of unemployment compensation where the only obligation has `been to appear to be available and willing to work, and it has been the responsibility of the employment service to provide the test of offering a job. And so I am not sure at that level whether it can be done. On the other !halld, it is possible to create training and education programs which pay either the same or slightly better than unem- ployment compensation, and to hope to get people off unemployment compensation. The Germans use the unemployment compensation fund. to finance training. They make direct offers of a training program to people who would otherwise be on unemployment compensation. But there is no legal requirement that the unemployed must `accept training. Senator JAVITS. That last program, the German experiment, sounds very good to me. . Mrs. REUBENS. Yes.. The on:ly trouble is that when they had heavy unemployment recently the fund went broke. Just to pay for unem- ployment compensation they had to borrow a large sum, and they had to hold back on their training effort. And, of course, they believe that training should be a large :~ale effort when there is large scale unemployment. * Senator JAvrrs. Mr. Anderson. Mr. ANDERSON. I would like to tie the two together and say that it would he important to clearly distinguish who among the unemployed would be in need of such training. I think the recent evidence shows that over two-thirds of those who are unemployed return to the em- ployer they left, that is, they are unemployed for a short period of time. And those people presumably would not `be eligible to participate. Senator JAvITS. Certainly not.. Mr. ANDERSON. Second, on private subsidies, one of the problems here is to subsidize firms that would hire the right people in the right kinds of jobs with a future rather than subsidizing private industry to hire people in jobs that they otherwise would `be hired into anyway. Senator JAVIT5. Thank you all. I `am sorry I missed so much of the hearing. Please be assured I will read the hearing report. The'hearing is adjourned, subject to the call of the Chair. [Whereupon, at 12:45 p.m., the committee adjourned, subject to the call of the Chair.] [The following information was subsequently supplied for the record:] RESPONSE OF BEATRICE G. REUBENS TO ADDITIONAL WRITTEN QUESTIONS POSED BY SENATOR JAVITS (Jvestioa 1. In a policy paper you contributed to the National Commission for Manpower Policy, on "Foreign and American Experience With the Youth Tran- sition," you warn against the hazards of "an extension of apprenticeship into occupations where it has never existed in the United States and where it is now PAGENO="0117" 113 disputed in Europe." Since we have been very interested. in exploring this type of help, to youth training skills, I would like you to detail some of the specific* problems that could arise in the U.S. situation, Do you think some of the problems could be mitigated by having apprenticeship programs concentraticg in high-technological areas. APPRENTICuSHIP Answer. 1. Apprenticeships, defined as learning about an entire trade and not just the specific', functions required by one, employer, is little used In, the United States compared with some other Industrialized countries, and registered U.S. apprentices are heavily concentrated In the building trades. Whether one approves or regrets ,this position depends somewhat on the focus. If the focus is on industrial efficiency and progress,. the minor position of apprenticeship In most', occupations can be accepted easily. Thus, apprenticeship Is virtually extinct in Sweden which Is undoubtedly closer to the U.S. in management and tecbnologic advance and manpower utilization patterns than some of the countries where apprenticeship is still widespread. If the focus is on a good transition mecha- nism for new entrants to the labor market, then apprenticeship and its expan- sion are attractive, but not easy to establish. 2. In view of the decline in apprenticeship openings relative to employment in countries which have been the strongholds of this practice, and in view of employers' complaints about the rising `costs of apprenticeship, any U.S. drive' for expansion of this practice should be based on a willingness to offer gov- ernmental financial support. The rationale for government support here as in the case of parachial schools, is that apprenticeship training reduces the costs of government, financed technical and vocational education. In fact, on this basis, it `would be appropriate to consider Federal financial support to employers for other formal on-the-job training prograffis' for new entrants. Such programs should be of a reasonable length, replace school-based courses, and not substitute for pre-existing employer-financed programS. Such support programs are as appropriate in periods Of prosperity as iii recession. It' also Is possible to foster apprenticeship places by a system of levies within an industry or trade so that firms which do not train pay part of the costs of those who do offer approved training. 3. The kinds of occupations which are most appropriate for apprenticeship training are those where a wide range of tasks is involved, many different em- ployers or self.employment opportunities are likely, a theoretical component is part of learning the craft and performing the work, and a fairly long perio4 of on-the-job experience of a varied nature Is essential. It may help to know that in Germany apprenticeship openings have declined most In the technologi- cally advanced, large-scale industrial enterprises and in banks, insurance com- panies and similar advanced commercial activities. Question 2. You have described foreign countries such as Australia, Japan, or those in northwest Europe as believing that full employment conditions and gen- eral economic vitality were the key to holding down youth and other unemploy- ment. The low unemployment rates of these countries (from 1960-1974) were achieved under conditions of slow or negative growth of the total and teenage labor force. But the United States, with comparatively high' unemployment rates and a relatively low rate of increase of GNP also managed an unusually high rate of job creation. If a high rate of GNP doesn't necessarily mean that the unemployment rate for youth can be lowered and the rate of job creation may be determined more by society's technological advances and economic sector growth, i.e., services, what are the implications for a full employment policy for the United States? GNP, LABOR FORCE GROWTH, AND FULL EMPLOYMENT POLICY Answer. The problem of achieving full employment In the United States un~ doubtedly Is complicated by the rapid growth of labOr force, compared with the labor force growth of other countries which. maintain full employment. 110w- ever, as the Australian example shows, it was ~oss1b1e to have a rate of growth of GNP high enough to absorb a fast growing labor, force~ The reasons for the high rate of growth of GNP ,clea~ly were special to Australia and not due to any. policy initiatives not considered elsewhere. , , ` ~, `. There is presumably a GNP growth rate for the ,~Tnited ,St~tes high enough to reduce~ unemployment for all groups to ~olei-atq levek. What is not clear is how to achieve such growth rates, ~n,d whether such' grawth rates would in~ure PAGENO="0118" 114 enough "good" jobs Or enough ftIl-tirne jobs, given the techncylOgic and eco- nomlé forëes at work in the U.S. ~dnothy. Mote~ei~, thi~ w~y o~f reacthing full eixiplOymeñt, might very well cteate many ~edfie labor ~hoi'tages, other scarci- tl~, and inflatiOhary pressth~es, a~ It ~Itd in Australia. it is ~ot certain that such a high rate of GNP growth should be sought. There is an additional probleni in thnt a~ptoaches to full employment are likely to lead to simultaneous increases in the labor force because the tising g~a1i:abthty of jt~hs encourages prè~iousl~ i~la~tWe Wot*e~r, ~nith In. Sttho~l, and i~etit~d p~SoñS to scek WOrk, and iOà~ds td l~c1~O~tsed Illegal niigratiOh~ ~s~a~lIg alt o± t~se ~ ~I~é~MI~t ~td~O~t th~ Ol~ri~i~tiy~ ~t~O~1itar and i~iatia uw ~e~a~I& ,loW Ih~t the e h4thft~g ~Oth~ .O~ ~tO4~!= jtfl$O ittttOt be the public ~e~tOt through e~panslOn of ~ regular Operations and job creation. ¶t'hè foreeastO and stndiè~ fOr other ~el~ped ~oufitr1es rOach. th1~ siclusion, beth as to whete jOb gtowth Will OcOlir ~hd where it is nOOded. Hariug reached shdh cohclusions, theSe c~untri~s diSo wOrry about the ta~ and expenditure irn- I~licntions of theft findfngs. ~ YOt~Tn ~1 1M~Uii WAGu It is noteworthy that the increase in the minimum wage to $2~30 in January 1976 did not produce reports of young people who had been dismissed because of the change. In fact, the data available from series published in the Monthly Labor Review suggeSt that overall the Increase had no discernible effects on yOuth. The following is relevant: 1. Pmployment: December 1975 and January 176 Teenage jobs Increased from 7,058,00O to 7,138,000, one of the largest monthly increases in the preceding year. Agriculture and non-agricultural industries both increased. Total employment increased from 85,~94,O00 to 86,194,000, a smaller percentage increase than youth. (Table 2. CurrentLabor Statistics: Household Data) 2. Une Zoyñ~cnt rates: December 1975 and January 1976 Unlike other age groups, teenagers cUd show a small increase in unemploy- ment rates between December 1975 and January 1976. However, female teen- agers, more subjOct than males to lOW wage rates, actually showed a decrease hi unemployment rates and this was true for both 16-17 year olds and 18-49 year oldu. The fact th~t only nialO teeiiagers had increased unemployment rates between the two in~nt1is weak~iiS any argument that the chafige in the minimum wage was the ca~The. (~PaJile 5. OhrtOiit LabOt Statistics: Household Data) Although the time frathO used here niay hot be the only possible one and other factors niay have o~sOt the adrerse e~ects of the minimum wage hike, the data cited here justify salilO SbcOtilatiOn about the reasons Why the in- creased itilthmtim wage may not have had much impact on youth. 1. Most émploied youth iii the 18-19 year group, mostly out of schoOl and in full-time Work, earned more than $2.30 an hour at the time Of the Increase and so the issue Of replacing them would be irrelevant. If there was not a great ~lusterlng of wage rates for this age group at or near the nilnimum, employers were not being affected by that minimum or its changes, other factors must be determining the wage ratOs of youth and their relation to adult wage rates. 2. The employed part of the 16-17 year group, mostly in school and Working part-time, arO subject to a great mahy arrangements In which the actual hourly wage is not the legal thinimum. Baby-sitting, lawn-cutting and other services Of thiS kind are the outstanding example, but even more formal Work arrange- ments evade the laW. 3. In an inflationary period, businesses reset to an increase in minimum wage rates as they do to other increases In coSts by embodying them in the price structure and passing them on rather than by dismissing workers, unless the firms are extremely marginal. One conctete case known to the author concerns a small company in a highly eompetiti~e, labor-intensive, low-wage Industry In the South. Vshig a high ptopOttion of nii~1ffluim wage labor, this conipany, almost a year before the minimum Wage was changed, adjusted its price schedule for production then beginning so as to reflect the coming rise In labor costs, following the same procedure as it used for raw materials. 4. Some evidence that the fairly steep Increase in the minimum wage rate aected relatively few workers conies frOm data on hourly earnings in ~Ocem- ber 1975 and ~anüaryi~76. Por dli ~rivate employment hourly earnings tose by' ~.04 to $4.~, only slightly niOre rnpid a rise than occurred In the mohths pre- PAGENO="0119" 115 ceding and following the legal change. In the lowest paid industries, apparel, leather products, retail trade, and textile mill products, the one~month increase was nO more thail $.07. It occurred iii retail trade where earnings role to $3.47 an hour and where teenagers probably are a larger share of the work force than in any other industry division. All of the increases were part of an upward movement which added $.32 an ho~Xr t~ the wage rate of all production and nonsupervisory workers in private industry from June 1975 through June 1976. (Table 17. Current Labor Statistlc~: ~stabli~hment Data) Even if the overall effects of the rIse in the minimum wage rate may not have harmed the nation's teenagers to any great extent, It is possible that teen- agers in particular regions of the country and small eornmnnities. did ex- perience hardship. However, adults In such low wage areas might also be affected by the imposition of a uniform .mlniiflunt wage rate across the whole country. The size and diversity of the nation would indicate the desirability ~f setting a range of minimum wage rates (as of various other kinds of payments which the Federal government sets or pa~vs out). ThiS action might be publicly acceptable and might me~t much of the teenage problem. Given the political sensitivity of the issue over the youth minimum wage differential, it wOuld seem reasonable to defer the intrQduetiOfl of such a measure until harder evidence is at hand to support the assertion that more Jobs would be created for 18-19 year old youth under the wage rates prevailing at the time the action would take place. Theoretical and historical studies are of marginal relevance. If only 16-17 year olds in school would benefit, and possibly at the expense of 18-19 year olds or adults, it is questionable whether the measure would be worthwhile. In any case, if a youth minimum is introduced, it would be desirable to do it at a time when the general minimum wage rate is being increased. The youth rate could then be increased less than the overall rate or left at the old rate. To contemplate an actual decrease for youth in a period when all wage and price movements are upward appears to be unnecessary and unwise. USE Or UNEMPLOYMENT COMPENS&TION SYSTEMS FOB TRAINI1~G/EDUCATION 1. The only cases I know where progratht hare been, considered Or Instituted to compel teclpiènts of unem~loym~nt benefits to accept tralnlh~ posts with employers or in government centers as a condition of receiving benefits are coun- tries (e.g., ~3elgium, Australia) which finance Such béneftt~ out of gefieral reve- nues and make no attempt to treat the system as InsuranCe. ~rhe fadt that em- ployers cannot be compelled to aCCept trainees se\~erêly limits such programs in practice, and I know of no large number of benefit rec1~leiits who have been transferred to such a program. 2. West G&rmany uses payroll taxes and worker contributions to finance un- employment insurance, but benefits are not paid out by a regular government department. Rather the system is organized as a tri-partite semi-autonomous public corporation with independent financial and administrative powers. Tin- dër these powers, the Fund began ,to use some surplus unemployment Insurance funds, generated In the full employment years, to fifiance training programs Which has been legislated In 1969 and assigned to the agency, then expanded into a manpower agency. People who are unetnp1o~ed are natural thrgets for train- ing recommendations, but the receipt of uhemployment benefit Is not partic- ularly taken into account In choosing trainees, and training allowances are higher than benefits. After the severe unemployment of 1974-75, the Fund was left with insufficient reserves and current receipts to pay benefits, and had to bor- row from the central government fot this purpose. At the same time there were new constraints on funds for training and retraining which appeared `to be needed particularly at that time. The basic idea of using the ~`und In this way ha~ not been abandoned; b~t `it may be nece~sary to levy higher taxCs in the future. 8. In regard to the 13.8. where the 51 separate laws for unemployment coth- peusation determine the benefit position in the initial `period, the most fruitful Federal approach might be by way of qualifying the Federal extensions of benefits, reinsurance or other financial aid to state systems~ This would be done by attaching certain requirements for .training or education programs as a condition of benefits. However, this should not apply to eases of simple layoff, where benefits are lust an interim payment until work with the same employer Is resumed. It should be noted that in December 1975, 27.6 perc'eht of claimants for 13.1. had been unemployed `for 15 weeks or over (Workilfe, August 1970, PAGENO="0120" 116 j~. 31). This indicates that the vast majority of beneficiaries leave U.I. before their benefits under the independent state laws run out. The scope for Federal influence* would seem, therefore, to apply to a very small proportion of the total recipients, unless state laws are altered. RESPONSE OF PAUL E. BARTON TO ADDITIONAL WRITTEN QUESTIoNs POSED BY SENATOR J~AVIT5 Question 1. In previous papers, you have posed the real question of youth unemployment as "At what age will employers hire youth for regular fu1l-ti~me jobs of the kinds that adults hold? You cite special studies that show that two- thirds to four-fifths of employers are unwilling to hire young people until about 21 years of sge. Have you seen any other evidence that might suggest. a possible lowering of that age barrier? Do you have any proposals to solve this problem or do you think it is already determined by the cultural and social mores of the United States? Answer' 1. I have seen no evidence that the age barrier has been lowered. The lowering `èf it will require collaboration between educators, employers, and unions, particularly through: combining education and work experience so that youth don't end up at age 10. not hired because .they are inexperienced; and experi-~ meñts to determine the relative ability of 18 to 20 year olds to see how ac- curate employer stereotypes are. Such studies have been made for older workers. Question 2. You previously have pointed out that the statistics on the "civilian noninstitutional population" leave out a substantial number of youth who have spent a great deal of time in a health, penal or military institution. Yet these groups' probably Include youths that need special help and training to achieve adult jobs. Do you have any idea of the size of the Institutionalized youth popu- lation? Any suggestions on what type of data or reports are needed? Answer. I do not have the statistics available. I believe there was a separate census of that population in 1970 whIch would contain age breakdowns. As for what we should know about them, I think It would be In the area of: What kinds of preparation they are getting for a return (or initial entry into) the civilian job market. What kinds of transition services are offered by the institutions they are in with regard to job Information, placement, etc. What kinds of inter~relationshlps `take place between the Institution and the local community organizations in the community the institutionalized youth will return to. Question 8. One of our witnesses this morning, Mr. Howard Samuel main- tained that since the rate of unemployment was so closely tied to education, more attention should be paid to keeping youths in school rather than finding more employment for teenagers. (1) Do you agree with that point of view? (2) What changes, if any, in education programs would you suggest to achieve these ends? (3), Do you think that the educational tie with a decrease in the unemployment could be due, also to the explanation that the prefered employment age of 21 has been reached. by those who stayed in school rather than dropping out? Answer. We have many youth who are not yet receiving all the education they want, and I think we still need to remove barriers which limit access. In general, however, I don't think we should keep raising the school leaving age because of our problems of sustaining economic growth.. In recession type situations there are some intelligent alternatives that in- volvé stipends for education and training as an alternative. In the summer of 1975, France offered a stay-in-school stipend as one way of dealing with the lack of jobs that summer for youth. RESPONSE OF BERNARD E. ANDERSON TO ADDITIONAL WRITTEN QULSTI0NS POSED ar SENATOR JAVITS Question~i. Do you think that having strong examples of youth leadership is necessary for minority youth? If so, can you think of some ways that adults or gQvernment can exert some type of influence on minority youth. PAGENO="0121" 117 Answer. Positive role models are very important for minority youth, espe~ cially those from low income groups in the inner city and in rural areas. One especially unfortunate aspect of the urban decay o~ our cities, and the relentless spread of ghettoizatiou is that many middle income blacks have moved away from the old neighborhoods in search of betler living conditions. One would not want to retard these Opportunities for upper mobility which are characteristic of the social `and' economic advancement of all ethnjc groups. Yet, many of those who might like to remain `in the city are driven out beOause of poor housing, poor schools, poor public services, and other forms of urban decay. This robs young black youth Of contact with upwardly aspiring members of their race, and leaves only the role models of spOrts figures,, and low-life elements such as "Superfiy" and "Shaft" as the objeets of emulation. Ghetto youth do not see the middle income black doctors, lawyers, business executives, and other professionals as' important role models. There are many ways this condition can. be `changed, but my preference would be to minimize the role of government in any solution. There comes a time when any group must einplmasize self~development and Initiative rather than continued reliance' on government, The only legitimate role of government In this area is for government, to support efforts~ developed and initiated by voluntary groups In lOcal commuplties. One example of such voluntary effort `is the organization of, a group in Phila- delphia called Interested ~egroes This group, formed in 1968 after the dreadful Detroit riots~ was initiated by Dr. Perry Fennel, a local black dentist, and sev- eral other black peofesslonals `and business leaders. .1 joined the group while still a graduate student at the Wharton SchooL Our program emphasizes "motivation through exposure" for young, Tr. high school boys from the inner city. Once each~month, a boy will be released from school to spend a day with a black man at his place of work. Throughout the day, the boy will observe the man on his job and will learn what education and train- ing were necessary to obtain such positions. The motivation is enhanced by the fact that most of the men previously lived In the neighborhoods that are now ghetto areas, and are familiar with the problems of achievement in the inner city. One-on-one contact of this type Is the best evidence that one can succeed if determined to set clear goals and work hard to achieve the goals. The member- ship of IN now includes 1,000 black men from a wide variety of occupations in- cluding judges, doctors, educators, business executives, and skilled blue-collar craftsmen. This program has produced many success stories, but two are quite signidcant. One boy, Charles Turner, was an uninspired student when he first started his IN visitations. He was from a broken home and had no thought of attending college. After several visits with successful black men, he showed visible improvement in his attitude, and over a one year period, his academic performance began to improve. He went on to graduate from high school with honors, and received a scholarship to attend Columbia University. He will graduate this year and enter law school. Another boy, Gilbert Baez, was a major problem in school when he started IN visitations. One of the members took a personal interest In him and helped put him on a more positive track. Baez markedly improved in academic per- formance and later excelled in leadership in high school. He was named U.S. Boy of the Year in 1974, and later won a scholarship to Franklin and Marshall College. Both boys acknowledge the role of IN as the major influence on their outlook at a critical stage in their lives. In addition, school counselors have told us of many other cases the performance of students improved following their participa- tion in the IN program. The `difficulty is that the IN organization has suffOred from inadequate funds from the very start, and has been unable to expand to reach more than a few hundred boys. We have not sought government funds but have depended solely `on foundation grants and private contributions. In fact, because we emphasize the direct contact between hiack boys and black men, our program has been declared in violation of the antidiscrimination rules, and thus, IN is ineligible to receive federal funds. The main point I want to emphasi~e is that becausa of ghettoization, it is neces- sary for members of the black' middle class to reach back Into the inner city to' help u~dife those who are still there. The main responsibility of government is to help improve the conditions in such areas. Voluntary, self-help through motiva- tion `and uplife should remain the responsIbility of' the minority groups them- selves. , ` ` ` ` 82-043---77----O PAGENO="0122" 118 Q~esth*2. How thuch do ~ou think the prob1em~ of rniuo*rit~ youth in the een- tral citi~ar~ a r~s1iIt ~if th~ ~r~ith's orig!u in rural society, With skills u]~suited to ah nrbvl~hfl~~ Answer. Not m~h! riret, the great fluffiber of black youth in the central uitles of the North and Midwest were borti thete and did not migrate from the South. This Is leSS truo of P1i~rto RieS~~ and C~hicanos, but evêñ in these groups, high birth rS.te~ rathor than 1thgr~ttlo~i a(~oiint for most ó~ the population growth in recent years. Second a~en thoae Who *~re born an~ reared In the central cities are Illereas ingly unable to qhttilfy for ealstlng jobC b~eause of ~readfu11y deficient phblic s~hO~J:t~i~ rnra~t *hy black ~uth fr~~ SOttther~ school systems are today ieceF~ing a better education th~ thefr ~OU1itet'~arts in the urban north As a re suit, young bleak mI~antS frOm ~the Sohth hare oftèh `~ainéd better employment in the northern cities than blacks born and reared in those areas. Evidence for this may be'fnimd `eepeciaily hi hea~1iy in strnIji~ed dtiO~ su~~h as Oleveland, Detroit, Saginau, M~'thtry, Indiana, and seine othOrS. S Finally, racial ,`discrlminarica is far more set~efe than many public officials believe in limiting the p~or1unit1es of ftner-dty mInority youth. Often, it makes no difference, hOw'weIl-edtacated, wellanunred, and cleanly scrubbed a blackor hispanic youth might be, he will still be denied ai~ entry 1ev~1 job in many depart- ment stores, banks, ihsnMtic5 ceinpaines, end Other business firms. This is espe- cially true ~f black teenage girls, Iii shOrt, the allEged barriers of employment generated by inadepiate rural edttcation cartied into urban areas does not have much foundation in fact in today's labor markets, and is hot a inajor determinant of urban youth employment problems. Jon PLACEMENT ASSTSfANCE rok HIGH Scno~n STtYDII~TS (By Barry B. Stern)* S ANALYSIS Over the years Public concern has shifted from preventing the too early em- ployment of children to `seeIng to it that they find work `when they are rOafly for it. Ne~ertheIess, `the least `help is provided to those who need it most, Th'ousafids of public dollars are invested in providing one youn~person with `years of prêpar- atory higher educatiofi, but very little is put into seeing what can be dOne about another's moving directly froin high school to work. In no sense haS this devel- oped retrIbtitivci~. II'S inst bad busihess to which attention is now, belatedly, being given. Although federal youth employment programs have appeared from tiitie to time during the course of our `history, it was not until 1950, some 17 years after the Wagner-Peyser Act created the U.S. Employment Service, that a formal Employ- ment Service (ES) program for youth was `begun-a cooperative program with public `schools. At best, it was a one-shot service; ~S personnel came to the school, registered seniors not going on to college for job placement, and perhaps offered a series of tests and a counseling interview.' The number of high schools involved grew impressively, to the point that by 1063 some service was available in 50 percent of the scho6ls with % of the total number of graduates. Dnring'that year the program wit'S credited with the annual placement of a modest 118,000. A peak figure of over 1.8 million placement of all persons unde.r twenty~two yearS of age was reported for 10~6.~ (The reporting system was corrected in 1970 tO record iedlviduals-a significantly lower num'ber-~instead of placements.) With the assuthptloh of `higher priorities in the mid-lOGO's., i.e~, the need to place disadvantaged workers and IcteritnS, the ~mploymcnt Service-Sehool Co- operative Program declined cohalderably, A 1974 field survey of 24 cities in 9 randomly selected Status, for eitainple, indicated that the outstatloning of ES personnel in schools was taking place in only five cities.5 Although in-house survey *Education Policy Analyst, tLS. nepartment of Health, Education, and Welfare. The eiews or coticlusions e6iitained in this gaper ar~ Solely those of the author and should not be interpreted as `representing th:e offiCiitl. opinion or policy of the Department of Health, Education, and Welfare. 1 Willard Wirts, The Boundless Resource, Washington, DC.: The New Republic Book Co., Inc., 1975, p. 42. 2 supplied by the U.S. Employment Service, Employment and Training Aciministra. tion, U.S. Department of Labor. PAGENO="0123" 119 indicated that 13~S offices in some 100 ~iti~ impjiily schools and other interested institutions with daiI~V c~m~ut~r ~rintonts of the ks~a1 Job Bank dtita~ But this includes only that informatioti that cot~ie~ frcon J~b orders filed b~ 1o~a1 em- ployers; and most employers don~t use the 1~h~p1oymeiit ~erVlce tO ~e~riiit part- time ~tuden~ employees e~~t f~r a feW `limited tyf*s of jdb~ Though De~artme1it of Labor data show that ES serves a considerable and growing number of youth (1.2 milllofl youth under the age of 22 Were placed by TI~S in ~Y 1975, compared to 800,000 in ~Z 1972), these data cannot be dis- aggregated to show the e~teflt to which ~JS serves the particularly critical teen~ age group. Surveys which ~et p1a~1neht d~t~ froth the youth themselves suggest that ES is reasonably effective for those in the twenty-Or-over bracket, while it provides very little service tO teenagers, especially In-school teenagers. The avail- able evidence indicates that only about one otitof six teenagers (16 tO 19) looking for work even goes to the ~inpIoyiue~nt Servlee (l4~S); amOng th~sê WhO a~e out of school, one out of four visits 1i~.4 Among out-of-school teenagers who are employed, Only about 4 percent surveyed in January 1973 credit l~S With direct- ing them to their present jobs. The overwhelming percentage of jobs obtained are found through friends and relatives (27 percent), or by going to the em- ployer directly and independently (82 ~ereei~t). Pen percent get their jobs through want-ads, only 6 percent through s~hooi placement otftbes or `teachers, and only 5 percent through private employment agencies (10 ~Crcënt through other means) .~ These ~ureau Of Labor Statistics data on jobseeking methods employed by out-of-school youth are corroborated by two somewhat older anal- yses of the National Longitudinal Survey (NLS) cohort of 5,000 young then 14-24 years old. Iii one study, Kohen and Andrisani found that among June 1969 male high school graduates who had changed eth~Ioyers (in th'e civilian sector) between the 1968 and 1969 surveys (which were conducted in November), the most frequently used job search metheds were thriuigh frieiid~ and relatives (52 percent) and direct contact with the employer (~4 percent). formal job placement assistance through either school, public, or private emuployffient serv- ices helped only 11 percent of these graduates find their new jobs.6 In another study using the NLS cohort of young men, Saunders found almost identical percentages for types of job search methods used among those who were out of school with less than four-years of college completed.7 Students are even less likely than out-of-school teenagers to get help from formal placement services In finding jobs. Again using NLS data for the cohort of young men, Parnes and others found that among teenage students (14 to 19) who were employed in 1966, less than one percent found their jobs through ES or through sothe private employment agency while 9 percent were helped by the school placement service; 53 percent were aided by friends or relatives; 23 per- cent went to employers directly; and the remaining 15 percent used want-ads or some other method or combination of methods.8 A more recent study indicated that only 29 percent of the nation's high school seniors in 1972 felt that schools provided satisfactory job placement assistance, whereas 77 percent believed that schools should help students find jobs when they leave school.° In addition to the fact that neither the school nor the Employment Service provide much job placement assistance to students, neither has much influence on a student's career plan's. When a national random sample of high school seniors in 1972, for example, was asked to indicate which categories of persons Influenced very much their post-high school plans, parents and friends were the most frequently named (43 and 25 percent) respectively), while only 10 percent named a teacher, 9 percent named a guidance counselor, and 1 percent named a State Employment Service ofllcer.1° We would hypothesize that ready ~ Wlrtz, op. cit., p. 43. 4Data supplied by the Bureau of Labor Statistics. ~ "Jobseeking Methods Used by American Workers" (Bureau of Labor Statistics, ~ul- letin 1886 1.75), Table C-i. 6 Andrew N~hen and Paul Andrisani, "Labor Market Enp~rience of High `School Gradu- at~s and Th-oponta,° Career ~rbre5ho1ds, voL 4: A longitudinal study of the educational and labor market experience of male youth4 (Manpower Administration, Research Mono- graph l~o 16, 174~, pp. ~ Satinde±s, The Coinllany S.~outb keep: An empirical analysis of job ñncling among young men 14-24," UnpublIshed Ph. D. dissertablop, Bryn Mawr College. 8 Herbert Parses, et sf, Career Thresholds, voL `1, (ManpOwer Administration4 Re- search Monograph No~ 16~ 1~1O), p~ iOi. ~WIll1am Fetters, A Capsule Description of E~1gh Seho~l' `SeniorS: Base-Year `Survel*, Washington, D.'C. : `National `Center for Education Statistics, 1974, p. 7. 1O Ibid., p. 9. PAGENO="0124" 120 access to job placement services would enable these institutions to have greater influence (hopefully a positive Influence) on student's future plans. As the presence of the Employment Service in the schools decline in the face of rising youth unemployment rates during the late 1960's, the reaction in the public schools was to draw back from the job placement responsibility com- pletely. They already had more to do than they could handle. The counselors continued their college placement mission but accepted beyond that only a nebulous area of responsibility for the development of self-awareness and at most a very general exposure to what work might lool~ like in the pages of the Occupational Outlook Handbook. Job placement was marked,, quite understand- ably, as somebody else's business. A 1973 study conducted by the American Institutes for Research for USOB concluded that no quantitative data are available on the scope of placement services in the public secondary schools." Though some local school systems like Baltimore and Cleveland do operate effective job placement services, these are not being provided routinely as an important part of counseling and gudiance programs. The situation has been very different, though, in the technical high schools and in the two-year colleges that grew so in number and size during the last decade, and particularly in the private proprietary trade anfi technical schools. The better of these have been serious attention to the placement of those who finish their courses. Unquestionably, this Is part of their increasing attraction to young people. At the present time, no USOE programs exclusively support guidance and counseling and placement. However, USOE (categorical) program funds author- ized by Titles I and II of ESEA and Part B of the 1968 VEA can be spent on guidance and placement activities at the discretion of the recipient State or local education authority. The aggregate amount of Federal funds spent by state and local education agencies for such activities cannot be estimated pre- cisely with present data, but best guesstimates are in the $20 million per year range.~ For a decade now, little effort has been made to bring students who want to work together with people who provide it. Despite the fact that students over- whelmingly believe that schools ought to provide placement assistance,'3 schools have been. reluctant to provide it, preferring instead to concentrate their scarce resources on traditional academic concerns.'4 The public Employment Service, also, has viewed student placement as a low priority item, especially when so many adults are out of work. In sum, no institution perceives youth job place- ment as its responsibility. Despite the unusually and excessively high youth unemployment rates, youth and student job placement has been accepted no better as an unwanted chIld. So the superior force of institutional habit has had its victories over good sense. Proposals for new ways to fuse workaday realities and academic processes must, therefore, include consideration not only of (1) how to provide high school age students with going-to-work counseling at least as effective as the tradi- tional going-to-college counseling, and (2) how to give youth job placement at least as much attention as adult job placement, but (3) how to combine these youth counseling and job-placement functions regardless of the minor earth- quakes doing so will cause in stratified established bureaucracies.15 Federal leadership might well be required to prevent the youth placement function from continually being lost in the cracks. What to do is not the ques-. tion. There are already several successful school placement models from which to draw. The difficult questions are who should do it and lead it, and how great a federal financial incentive is required? Compared to other federal human resource programs, the . amount of money required to establish placement services in high schools on a widespread basis is "American Institutes for Research, "Practical Career Guidance, Counseling and Place- ment for the Noncollege-Bound Student," Palo Alto, Calif.: Unpublished technical report for U.S. Office of Education, Contract No. OEC-O-72--4986, 19T3. "Research and. exemplary projects in school vocational guidance and placement can be funded under Parts C and D of the VEA, respectively, as well as through NIE. " Petters; bc. cit. 14 Of course, there are some exceptions to the rule. `Some 3 states require that job placement services be provided to students (Pborida, Michigan. and Virginia). Others, like Wisconsin, gre encouraging LEA's to adopt successful placement practices from demonstra-. tion programs, many of them funded by USOR. 1~ Wirtz, op. cit., p. 38. PAGENO="0125" 121 not large. An expenditure of $~O million, for example, could provide enough professional placement specialists to serve one-third of the nation s high school students (grades 10-12) , assuming a ratio o~ one placement person for every 1500 students. If states or local agencies were to match such a figure on a dollar for dollar basis, two-thirds of the nation's high school students could be served. As for whether federally subsidized school placement othcers ~ should be em- ployees of the Employment Service, the schools themselves, or some other agency like a local OETh agency or an Education and Work Council, we would favor an approach which permits different delivery agencies in different localities. Whatever agency is used to deliver the placement services, the school placement service should coordinate with the Employment Service or. ether manpower agency contracted by the CETA prime sponsor to do plácemeiit ~iork and use it for central referral of job orders. Moreover, any new federal program to support school placement services should take into account ES's concern that these serv- ices could well reduce its potential number, of placements and hence 1~h~lr budget for the subsequent year, Inasmuch as placement credits ai~e the main sieterminant of an ES office's budget allotment. Possibly, an exception to present E~ regula- lations ought to allow ES to be credited with at least a portion of each place- ment made by a school placement program. Another concern in the establishment of school placement offices Is the need to continually followup graduates, whether they g~t their jobs through the school placement program or not. Follow up data should include enough specific occupational assignment and wage data to permit future graduates to assess better their probabilities for obtaining employment In certain fields. The mere accounting of whether a graduate is employed or not and whether this employ- ment is in a training-related field (viz., the federally required vocational edu- cation placement form) is not sufficiently detailed to help placement officers with their responsibilities. Possibly, federal aid could be directly tied to con- ducting sufficiently detailed followup studies of graduates. The cost of such a multi-year follow up does not become so prohibitive when samples of graduates are surveyed rather than the entire graduating class (the present OE regulation calls for the follow up of all graduates for one year). FEDERAL POLICY AND PROGRAM OPPIONS Having established that jOb-ready students and recent school leavers need but do not get help ia finding jobs, the question is raised who should take responsibility for providing such assistance. Given the fact that no single answer to this question is likely to meet the needs of every community, a more impor- taut question is how can easy access to job placement services be assured once a decision is made to provide them. We believe that in the great majority of cases, the access Issue is most likely to be solved if the service is located In or somehow through the school. In the first place, locating job placement assist- ance in the schools puts the service where the clients are, thereby assuring their maximal visibility and use. Furthermore, in-school placement services serve as a link between schools, youth job~seekers and industry. By making the service available to school leavers, I.e., graduatee and dropouts, the school re- mains accessible to the young person even after having left It. Such a link might help many youth adjust to these difficult transitional years. Dropouts might want to drop back in; continued contact with the placement officer could facilitate this. Recent graduates might need help finding or adjusting to a new job, and a familiar person from the school, `like the placement officer or some other member of a placement team, might be the best person to provide, such assistance. Perhaps the most important reason for making placement service available through the school (at least in part) is to let both students and school leavers know that the school cares about their future well-being. Such a .feeling on the part of students might well create a healthier learning and teaching envi- ronment. We would propose, therefore, that the Federal government consider a variety of actions that would encourage localities to provide In-school `job place- ment services to help students, graduates, and dropouts find full-time, part-time and summer jobs. On a spectrum of little to considerable involvement and support, four Federal strategies which would stimulate schools and other local agencies to provide students and school , leavers with job placement assistance are considered here: (1) to establish local, education and work councils; (2) to provide technical assistance and training; (8) to conduct a large demon- stration and comparative evaluation of alternative liable placement models; PAGENO="0126" 122 and (4) to provide grants to local areas to establish high school placement pro- grams. These can be considered either a~ mutually reinforcing or mutually exclusive ~r competing strategies. Strategies I and II jnclude reasonably low cost activities and èould be started with discretionary DO1~ and HEW funds at any time by either or by both agencies. Strategy III would require consider- able planning and coordination between DOL and H~W but yet could be accom- plished within the framework of existing legislation and appropriation levels. Strategy IV, which is a categorical program requiring the expenditure of several millions of dollars, would require new legislation and appropriations. The strategies are summarized in Chart 1. Chart 1. OPTIONS TO PROVIDE PLACEMENT AS510TANCI TO STUDENTS AND SCHOOL LEH~ERS P006500 ` OPIIONS PROBLEM OB.)ET3S)P0 (Fr~o OlUtle to ctNsldorotoOe federo~ joovoUoenent an4 support) L100te support 4SSUMPO~IONS -&ll of th~ four s~rategiqs and optiops Ol~ activities within the strategies are gen~rate4 with a few basic pr~~ises in ~ipd. These are derived frow previous e~pericnce with several placement programs provided by school districts, alone or jn collaboration with other agep~ics. Oi~r assumptions are as follows: (1) School placement programs won't wQrk unless manpower and education agencies work together t~ deliver the services. ~A511 agencies involved must have clear lines of ;esponsjbility; all jpter~g~ncy agree~e~~s for the provision of specific services must be in writing. (2) An important criterion for success of the program is whether the program continues after Federal funds are withdrawn. The Federal concern, therefore, is cat~lyttc, not programmatic, (3) ~& ~era,1, prQgraln which is ta~gete4 op public school students is more likely to continue once Federal funds are withdrawn if gra~n~~ and increasiflg local ~uaneiai ~espon~tbility for the program is built into it from the beginning. STRATEO~POS AND QI°TIQN5 ~tra~es7ji I: E8ta~bl~i8h o~ a ~emonstrati~n ba8ls e&toa~tion and WOd* c~unclls in sevèraZ Ioccjities t1~rougMi~t t1~e Un(te~Z States * ~rio~.-E~ieatjon and Work ~onncils would b~ established in 1~ to 20 communities. These would attempt to bring several community agencies and Students end school 3eaoer~ conduct ~ob search iN hapnazae4 and ineffectige nanner. OreAt majority uhf stu- dents eopect school to help thOm f Nod jobs, but few do. ~onsideroO Support PomAytilO more job pI~camegj service$ thèt iwip students0 oradu0015. cod im~59ouj$ fOod partn time, full-time, and simmer jobs. Local Educacionand Work Councils Federal Teciioicel SONTtWCA503Tj:oie_ - torte le000itmat100 and Con ejatiye toeluot~ojL of S~ccessfvi hiOAls Or LE ~to stoblinhj(igh Sbhovi Placoneot morons - Bring together scim Os local mvii- ploynest seocice trade aid service mrgAniaotions, uNIons, etc. to develop aporopri- ~ t~ of ~ far sibdoets. ($1 gillios to establish 15-20 Cpuscils) - Earmark ~p~cial funds for place- ~~esh~yfs~ E-a C~uno51. (0100,0106 pep city or 01.5 sfoggus totsl) - beatify end package efnguclye school placaneot ocdnls In -ciO~boration vith inten.st groups end issoc litloloN, dii- secie te nnforootmon A gI 11 ei°ih et Infor ationrAgran to pe-suade local ~ eodel, if not ulee~dy In p1cc. (11 million) - tomploenent Service gould designate cue place moo spac lalist to led oohoicel assisance to school- desig ated place- sent .eordlnotors in each of 200 major school districts (Ii eillion) o IWe~li a wed lest coors or nodule is qU ~nniAch1eceneust ~ mnvo10005 assocIations Olssei sate materials And hfi4 regiogal coimfecances, workshops, - Fund each ntute to eslgbllsh end conpgr- atively evaluate 2-A fellsory syotgmip fgr school plomenent services: (10 qutilatioping uf Enployeeot Service ~2) hi I A Pl On 5 ~irivo~od super- vision of plvvgoifnt staff by Education-Work Couccil,lnodumcc~: locfl CEIW plojnning council end the liAe (Ill million per year for yeios.) - Fund PU lEon in areas oioIi hllh youlh ynenoloynent tseoperisent oith the guortor systom or staglerod maca- tins; so thnt lorae nuebers of students aforrgrfefa~t 6500. )Si million per ye~r for A~nearo) Progran gould provide one placeoenl specialist for every till studeots iv grades lq-l2. Such ~eroooool could tako and ~iut job Qrdy~ rofti sty- dents on school 1 covers to ~pb ~ ~ ~i It job b ~ çocdyçt follow op studies, and seek assistance frye up dyteer5. gf doliveru 5ynt~ns (wee Stratefy UI) - Coscu 055uninq unit Cyst of 120.010 per speclalistm `Coverage of 1/3 oF high ~chpo.l stu- dents - $50 million. °loverege of 2/3 of high school sty- dents - $1011 million °Coieregg of all hilh schools - 0155 millIon liStEn Fedcr~l costs mould b~ reui?ced by tidOchfumilFotcrfdvolly qf progrgs. If oCh000 district already has piaceovet serehçe5 Uhess would Bet fuegs anyway, 44.0 million) PAGENO="0127" 123 interest groups together in order to prpvi4e services w]~ic~1. ~oi~d help students nmke a more successful transition from School to wQr*. Membership of the O~uncils would include representatives from tl~ sc1~ep~s, local emp1oy~ent. service and otbe~ manpower agencies, professional, trade, and business associat~oi~s, labor unions, service organizations, and the local C~L'4. Planning Cou~cjl. It is assumed that these councils would give jQb pJ4~emerzt assistaiu~e for youth li~gh priority. Wedoral guidelines, no~ieth~1e~s, miglfl suggest that the councils work closely with the ~chools in taking ~esponsibilLty for placing all school leavers in some kind of job or furth~er education, In addition, the coui~cjl~ ought to encourage eemmunity institutions to wor~ tQgeth~ i~ p1nci~ig students who desire part-time or summer jobs. Special funds ~jgl~ be earmarked to encourage the development o~! such placement activities. Co~st.-Approximately $1 million would provi4e p~Qfe55iona1 ~ta~f and some administrative expenses for 15 to 20 Councils. DOt has appropriated this sum for fiscal year 1977. An additional $1.5-2.0 million would be earmarked for student placement s~vjces in citio~ having these equncils (an average of $100,000 per city). Implementation.-Identify and select communities which already provide young people with several effective transitional services but yet which need to coordinate better the delivery of such services in order to fill gaps and avoid needless dup- lica1joi~, `~L'li~ W~4onaj Muapower ]!nsldtute, under contract to DOL, Is In the proces~ ç~ j~ea~jfy~g these eo;inmunibies. Their recommendations must be approved by interagep~cy steering cou~ittce consist~~g of the Departments of Labor, ~1EW, and Commerce. 4r~mm~s in favor 1. An ~dncaUon and Work Council provides an independent "neutral" mecha- nism to ljnJ~ schools, employers and manpower agencies. It would help avoid problems that result from Invasion of turf when one Institution makes isolated decisions and imposes actions on others. 2. ~our~ges local institutions to pool their resources in such a way as to provide essential services while avoiding duplication ~f effort. Admits of ready link to CETA. prime sponsors. 3. Is not very costly and could be very cost-effective by maxlipjzlng the use of existing resources. drg~#men~ açja4n~t 1. Creates yet another decision-making layer and encroaches on authority of varions in~.titntiqns. Schools, employers, and manpower agencies would resist giving up "~le $g~ts" to decisions that traditionally have been theirs alone. ~. Import~~t aei7vices like placement assistance might never get established because local con~ninrdtie.s do net have the money or the wIll to redirect their present resources. Though councils will improve communication betweep agen- cies~ their c~ectiveness is unlikely to be great unless they can assure that some new i~eeourees will, be funneled into priority activities. a. Diffuses local leadership at a time when all resources should be behind CETA. 4. The scope of such a demonstration effort Is not large enough to have the needed impact on communities across the country. Even if councils were success- ful, most high school students and leavers in the U.S. would remain without job placement assistance. ~S1trategy II: Tec7i~nica~ assistance and tra4ning Three technical assistance and training options are consid'e~ed here: (1) iden- tIfication and' dissemination of effective models; (2) technical assistance from Employment Service to school personnel in regard to placement; and (3) train- ing of prospective and recent school leavers in job search tec~njq~es and achieve- ment motivation. All are thought to contribute to the more effectIve placement of students, graduates, and dropouts seeking jobs. The three options are not mutually exclusive. Combinations of them could easily foj~ip an effective techni- cal assistance package. Option 1. Identification and di'sscm4nation of effective models Deseription.-Effective school placement models would be identified and mate- rials describing how to implement them would be ~evcloped and disseminated by' the Fedexal govern~en~, In `ceJ3~i~o,ratL~n wIth ipte~'est groups and associa- tions. Technical assista~c~ apd public ~nformattoj~ prog~~n~s would be imtiated to persuade communities. to identify and implement suitable placement models. PAGENO="0128" 124 For example, regional conferences, workshops, and the like would be held for school placement personnel, administrative staff, and board of education mem- bers of districts considering the establishment of expansion of placement programs. Cost.-Approximately $2.0 million would support the packaging and dissemina- tion of school placement materials, as well as regional conferences, workshops and the like for school personnel interested in placement. Implementation.-USOE's Bureau of Occupational and Adult Education and DOL's U.S. Employment Service, would jointly develop this technical assistance and training program under an interagency agreement. They would involve the various professional associations and interest groups as needed. For the most part, the program would be administered out to the ten Federal regional offices by teams of TJSOE and DOL personnel. Arguments in favor 1. Much is known already about how to deliver effective inschool job place- ment services. Developing and packaging materials for dissemination and train- ing could be done easily, quickly and cheaply. Arguments against 1. Dissemination of information and the provision of training can do no harm, but the problem is too big to be solved by these approaches alone. Option 2: Technical assistance from employment service to school personnel in regard to placement Description.-School district would designate a placement coordinator in each high school who would receive technical assistance from the local Employment Security (ES) office. Placement coordinators would be counselors or teachers working with or without community volunteers. Their knowledge and skills in the placement of students would be developed and Improved through short In- tensive workshops followed up by one-the-job consultation with experienced ES personnel. Each participating high school would receive from ES a daily Job Bank micro- fiche and a monthly Job Bank Openings Summary.1° The school placement co- ordinator would request permission from ES to make job referrals. Permission is either denied or granted depending on the status of the job order. If the placement coordinator makes a referral, the ES is notified so the job order can be posted. . Gost.-Approximately $4 million would support involvement of ai~ ES person working full-time in each of. 200 major school districts. In addition, there is the relatively minor cost of the Job Bank microfiche negative (about 10 cents each) and the viewer (reader) which ranges in cost from $50 to $150. These costs could be absorbed by the school district, ES office, or both. Implementation.-Oversight and general administration of the program would be provided by ES in Washington, D.C. A local ES office which serves a target school district would receive funds for its school placement coordinator once a satisfactory written agreement is concluded with the superintendent of schools. Should a local ES office cover more than one school district, It could designate and receive program funds for additiopal personnel who would work with the schools. To assure that the schooLs live up to their end of the agreement, an occasional evaluation audit would check to see whether each high school in the participating school district hi~d. designated its own placement coordinator. Arguments in favor 1. Relatively minor investment by ES could result in considerable job assist- ance for. students if schools cooperate and decide to invest their own funds in the program. 2. Would minimize risk of appearing to interfere in the business of school system and guidance counselors. Arguments against 1.. Would depend heavily on resources from OE or the schools. Schools might be reluctant to participate if there is no financial Incentive for them to redirect staff effort to job placements. Schools in general have always been reluctant to 1~The :Iob Bank microfiche Includes employer 1nformation~ description of the specific job, . wage and benefits, and desired applicant characteristics. The rob Bank Openings Summary lists job openings unfilled 30 days or more by employer title and DOT titles and codes, as well as job opportunities in the same field In other parts of the State as well as In surrounding States. PAGENO="0129" 125 take on the placement responsibility. It Is unlikely that the limited assistance that ES will provide will persuade enough schools to give job placement higher priority. 2. School staff might not adopt a practical labor market oriented approach. 3. Some CETA prime sponsors contract placement services to agencies other than ES. Option 3: Training prospective and recent school leavers in job `search tech~ niques and achievement motivation Description.-A short course or module would be developed in "Job Search Techniques and Achievement Motivatioia for High School Students", and would be disseminated to `schools by the Federal government with the help of business and trade associations. The course would help students learn how to assess and interpret job vacancy information and occupational information, prepare resumes and required employment forms, conduct themselves at personal inter- views, make direct contact with employers and unions, assess and. convey to others one's job-related skills and personal strong points, assess employer needs and market one's assets to fill those needs (i.e., creating a job for oneself), become self-employed if one wants to, relate further education to one's subse- quent employability (If one wants to) and motivate oneself to seek, find, and make the most out of employment opportunities when they arise. Technical as- sistance and public information programs would be Initiated to persuade com- munities to conduct such courses. For example, Federal regional omces would conduct conferences, workshops, and the like for school and other community personne] who might want to conduct or organize such a course in their respec- tive communities. Uost.-Approximately $4.0 million would support the development and testing of the course or module, the dissemination of materials to schools, and the re- gional conferences, workshops, and the like for school and community personnel Interested in placement. Implementation.-The Department of Commerce (DOG) would develop this program In collaboration with USOE and with various national trade and busi- ness organizations. A written agreement would specify the particular responsi- bilities of the respective agencies. For the most part, the program would be administered out of the 10 Federal regional offices by teams of TJSOE and DOC personnel, who would work closely with local business groups and school authorities. Argwments in favor 1. Provides a cOnstructive, challenging, and cost effective way for business community to become involved in helping youngsters make the transition from school to work. 2. Course can be developed easily and quickly because of ample supply of ma- terials and experience. Arguments aga4nst 1. Provides opportunities for recruitment or proselytizatlon by particular com- pany if Its personnel are Involved in teaching course. 2. The job search problem among youth is too big to be solved by this ap- proach alone. While `such a course ~trill help some youth become effective self- starters In finding jobs, the basic placement activitlee of job order taking, refer- ral, etc. are stifl needed to give the majority of young job-seekers a clue about where to start. Strategy III: Las-ge demon8tration and comparative evaluation of successful models Two types of demonstration options are considered here: (1) state grants to demonstrate and comparatively evaluate three alternative school placement de- livery systems; and (2) LEA (school district) grants to demonstrate a high school scheduling system with staggered vacations. `The two options are not mutually exclusive. Option 1: State grants to demonstrate and comparatively evaluate three alter- native delivery systems for school placement Description.-Each state would receive Federal grants to demonstrate simul- taneously two or three delivery systems for school placement in different corn- munities within the state. The delivery systems include: (1) outstationing of PAGENO="0130" 126 Employmetit Service (ES) perstnne1 in the schools, (2) hIring of placement staff b~ the LEA, and (3) hiring and supervision of placement staff by a multi- agency consortium or council (e.g., Education and Work Council, Industry- Education Council, CE'II'L& Planning Coencil, etc.). A careftilly-planned assess- ment effnrt would compare the effectiveness of each model. Communities within the state would select which of the approaches they wish to try, based on their own interests, needs, and circumstances, and would submit their application to a state committee composed of the Chief State School Officer, the State Director of the Employment Service, and other appropriate of- ficials appointed by the Governor. This state committee would recommend and the Federal government Would approve a teat of at least two of the three delivery systems in 2-3 eommtinities iu the State. Uost.-~-AsSuming that animal grants will range from $200,000 to $500,000 per state, the precise amoimt `depending oh the liuffiber of secondary school students in the state, or an alerage of $300,000 per state per year, a three-year demon- stration program would cost $15 million per year or $45-50 million total. Local resetirces and ~0rsohneI could be used to supplement these Federtil grants. Iinpternentatian.-The program would be jointly administered and funded by DOL's EmplOyment and ~Ttaining Administration and the U.S. Office of Educa- tion. A written agreement would spell Out the program responsibilities for each agency. Federal staff would develop guidelines and standards which would have to be met by each local communIty or school district receiving a grant. While an interagency state committee appointed by the Governor would select the successful applicants, and conduct the evaluations, the Federal regional offices of DOL and USOE Would have to approve the state selections and would conduct audits of the grantees to assure proper expenditure of funds. Arguments In favor 1. Falls short of massive funding of School placemetit services while implant- ing the idea that these are worthwhile and that the state should be creatively systematic in selecting the approach or combination of approaches that are most suitable for communities within the state. 2~ Forces state and local manpower and education agencies in the state to work together in developing acceptable proposals and evaluatiOn designs. Arguments agwlnst 1. Though state may submit its 2-3 community proposals for FedOi~a1 fund- ing, it still might not give school placement services sufficient priority and visi- bility. The problem of unassisted school leavers is tOo big t~ be resolved by giving select communities "seed money" to develop their own delivery system. 2. State might not recommend the best community proposals for funding and use grants as a means for achieving political leverage or patronage. Option 2: Grtmts to LJfllAe Ia high po*th:n~~n o~jsW~ut t*e~is In dmenStrate feasibility of high school scheduling system with sta~gered neicalio~ns Description.-LEAs in areas with high youth unemployment Would apply for grants to demonstrate the feasibility of the quarter system or staggered vaca- tions for its high school students. The purposes of the grants are threefold: (1) to see whether the youth unemployment rate could be lowered by not having so many students looking for jobs at one time as they do during the summer; (2) to increase the likelihood of students ~nding jobs related to their career plans, if they have such plans and want career-related work; and (3) to see whether the transition to the staggered (summer) vacation schedule can be accomplished without significantly increasing costs. to the school nor detracting from the academic proglam. Grants wotIl'd pay fol wdditlorial `admlnisttatIle costC needed to make such a scheduling transition, as well as a thorough evaluatloh of the labor market and academic conbOquences of m'aklng such a tratisitlon. Coets.~-Assuming that grants averaging $200000 would gob the 20 LEAn sub- mitting the best proposals, and a 20 percent add-on for Federal administration and evaluation of the program, $5 million would be needed to carry out this demonstration program. Implementation.-The program would be administered by either the Bureau of Elementary `and Secondary ~ducation or the Bureau of Occupational and Adult Education in USOE. The Commissioner Would direct that research funds administered by both bureaus (E~EA Title III and VEA-Part 0) be tapped to fund the prog'rath1 PAGENO="0131" 127 Ar~~w~nents in favor 1. ProvIdes a large~scale test of a proposal made many times yet hth~quently tried and evaluated, particularly in high ltouth unemployment areas. 2. Puts funds into LEAs where such ~ scheduling transition is mOst likely to do the most good. Argumeats ~iigcvtn~t 1. Many high school plants, especially those in poor or depressed areas, are not equipped with air conditioning which would make it tolerable to provide classes to 50-75 percent of the enrolled students during the summer. 2. Such scheduling revisions have been tried before with no particular benefit to the school. (~The purpose of these revisions, however, was to save the school money. The youth employment and work experience motives for scheduling changes have not been investigated to any great extent.) Strategy IV: Graitts to ZoeaZ u~as t~ ~8tO~14ith h41h ~c1i~ooZ ~laeem~n~ ~wot'rams Descriptioa.-Pederal funds would provide professional placement specialists to work in the nation's high ~cho'ols. There wmild be one full-time equivalent (FTE) placement specialist for every 1500 students in grades 10-12 a~id (using the Baltimore City School Placement Program as a model) one Central placement staff person for every nine placement specialists working in the schools them- selves. Such personnel would take and list job orders, refer students or school leavers to job openings, solicit jobs from employers in both thepublic and private sectors, provide job counseling (both before and after finding job) and instruc- tion in job search `techniques, conduct follow up studies, and work with a place- ment team in schools consisting of counselors, vocational education 11nd work- study personnel, and cOmmtmity volunteers. 3~ob Bank and thO JOb ~ank Open- ings Summary would become availkble through the Employment serviCe to every high school participating in this placement program. Placement assistance would be aimed mainly at helping school leavers (grad- uates and dropouts), who Want to enter the full-time labor market, but ~tbdents who want part-time and summer jobs would be served, also. In addition, place- ment personnel could help thid slots for students pntticipathtg In Cooperative and other Work study programs. Optional feat11tes would be (1) to permit grkdnates and dropouts to use the placement service for up to tWo years after leaving school, and (2) to permit private school students to thake uSe of the services lo- cated in the public schouls. Cost.~-Yearly ~ederal expenditures *ouid depeUd on the extent of school cov- erage with placement personneL AssumIng (1) one ~E placement specialist for every 1500 public high school sti1dent~ in gradOs 10-12; (2) one ~entral office staff person for every nine placement spe~lal1stS working in thO schools; (3) about 10 million public high school students in grades 10-12 at any 0110 time; (4) an average unit cost of $20,000 per placement specialist (salary and expenses); and (5) that the 5~hool district will cover the costs of providing (placement) `edice space and eqU!pthcnt $50 million Would prOvide placeme11t Services tU ~ of the hatiOn's public high school students.; approlimately 2,200 placement specialistS would cover ~ mil- 1km ~tiidents. . $100 million would provide services to % of public high school students; ap- proximately 4,500 piaceffiOnt specialists would cover ~ millio11 students. $150 million would provide services to all public high school students; 6j110 placement specialists Would cover 10 million st~dènts. The Federal cost obviously, could be reduced by having the schoOl district match ~ederal fuñc~s with itS own f11nds, or ~y gradually reducing the size of the Pederal stlpe11d over a period of 4-5 y0ars Until the program is supported totally by local-state funds. If a school district already, provides placement services, it would remain eligible for Federal funds, no11ethOless, so lông as its program met the Federal guidelines and standards. ALTE~NAPE IMPLEMENTATION PLANS AND COIUIESPONDING LIUIISLATIVE AIJTIIO~ITY FOB JOB PLACEMENT sravicns Optioa 1. Station emptoynient sCrDieC perrbnnel in soivooi~ Precedents for stationing ~S personnel in schools or using E~ cOunselors to lend technical assistance to school counselors date baák many yearn The largest outstationing of ES personnel in schools occurs in New York City, where SE PAGENO="0132" 128 operates placement services in over 50 high schools (see Exhibit 1). More re- cently, Wisconsin has initiated a state-supervised or coordinated program which stations ES personnel in high schools who work with school personnel on place- ment teams. The program requires joint decision making by the Department of Public Instruction, the State Job Service, and the LEA. The largest ES technical assistance program for school counselors is in California, where ES conducts an 8-week summer program and a liaison program during the school year. Both programs train high school counselors in placement and employment counseling techniques, labor market information development and utilization, and employer relations. Notwithstanding the New York City, Wisconsin, and California experiences, the ES-School Cooperative Program, which reached its zenith during the early 1960's, has been scaled down considerably during the past decade because of other priorities, e.g., providing more and better service to disadvantaged clients. Revival of this program could be dou~ under the Wagner-Peyser Act; or Title X-B of the Education Amendments of 1972, which has not yet been funded. The mere provision of Job Banks to schools is authorized under Wagner-Peyser. Arguments in. favor 1. Assures staff oriented to realities of the labor market. 2. Avoids "turf" fight because institutional lines of responsibility would be clearly demarcated. ES has had several previous agreements with schools to provide job placement assistance. For the most part, these ES-School Coopera- tive programs were well-received by the schools. Arguments aga'inst 1. ES might not be famifiar with the needs of the schools. 2. School guidance counselors might resent presence of placement personnel, especially if from another agency and "imposed" by Feds. Ea~hibit 1.-Cooperative employment service-school program, New York City Goal.-To assist prospective dropouts and work-bound seniors-primarily in schools with high proportions of non-college bound pupils-to choose and enter suitable occupations, both part-time and regular full-time. Students served.-Students in 52 selected high schools with high minority populations, most of whom are work-bound. In fiscal `74, the number of pupils seeking assistance through this program was 24,185. The number of job place- ments was 13,435, most of which represented individuals placed. Staff.-All staff are Employment Service staff, directed by an Employment Security Superintendent. Professional staff consists of 51 employment counselors and placement interviewers. Funding source.-New York State Employment Service. Materials, facilities, and support.-The Superintendent in charge of the Co- operative Employment-Service School Program is housed In the headquarters office of the Metropolitan Area Employment Service. The counselors and inter- viewers are assigned to, and work in the high schools. Testing and counsel- ing services are provided to those who need such services, and comprehensive labor market and occupational information is provided. Employers who utilize the service are mostly large employers (500 + employees). Except for new employers who are added each year, most employers served are regular users of the program. There Is a waiting list of schools who wish to participate. 3. Limited influence on school counseling and curricula. 4. Possible danger of perpetuating the college-noncollege class system, in which college-bound students see their counselor while noncollege-bound students visit the placement office. 5. Some CETA prime sponsors contract placement services to agencies other than ES. Option 2. Fund largely through school agencies with placement personnel selected by schools Models of school-based placement services have emerged over the years and are now in operation in several cities. These include Baltimore, Fort Worth, Houston, Cleveland, and Akron. (The Baltimore program is described in Exhibit 2.) In the Baltimore model, the Placement Department Head and three coordinators are housed in the central office of the school district, and 25 other placement coordinators are stationed in the individual secondary schools. The school's PAGENO="0133" 129 placement department maintains close relationships with employers in the Baltimore metropolitan community and with such agencies as the Voluntary Council for Equal Opportunity, the Joint Apprenticeship Training Committee, the Labor-Education Apprenticeships Program, Model Cities Programs, and Neighbor- hood Youth Corps. Very close cooperation is maintained with the Maryland State Employment service which has developed a computerized Job Bank of `employ~ ment opportunities in the Baltimore. area. Continuous liaison is maintained between the placement coordinators and the school counselors. The legislative authority for replicating a Baltimore-type mOdel in several cities could be the Vocational Education Act of 1963 (as amended in 1968); Title X-B of the ~ucation Amendments of 1972. T)OL funds could~ also be used to provide increased placement services by educational institutions: CETA Title I could be used if Prime Sponsors so decide. Ar~'umen,ts in lavor 1. Fosters responsibility for. this activity in schools. 2. Placement personnel are more likely to be accepted by other school staff if they are hired and supervised by the school acTwinistration. Less friction, Arguments JJ4nst .. 1. School-selected placement personnel less likely to be knowledgeable about the labor market and in touch with employers. 2. The difference between: placement and counseling is less likely to be under- stood if the schools have complete control over the program. If counselors are assigned as placement coordinators., as they are likely to be in a school-run program it is important that Uaey do not give short shi~ift to the mechanical tasks of job order taking, referral, and . job solicitation. Regardless of. who is selected to perform these tasks, they ~iust be performed in addition to whatever counseling and personal assessment services are provided. Eadii bit 2.-Baltimore placement s vices program outline1~ To assist students in finding permanent, part-time, and work-study job place- ments commensurate with their abilities and interests. Students served-All students in the Baltimore public secondary schools. Some 8,000 students graduate each year. About 4,000 of these seek assistance of the placement service and of these, 3,000 (7~ percent) are placed. Work-study students see the coordinator briefly eacn week. Other students see the coordina- tor briefly on the average of twice a year. Staff.-The Department Head of Placement is a professional counselor. There are 38 job placement coordinators, some of whom are counselors; the majority have work experience outside education. Funding souree.-85 percent local funds, 15 percent federal funds. Materials, facilities, and support.-The Department Head and three coordina- tors are housed in the central district office. All other coordinators have offices in the schools. A variety of occupational material is available to students at the coordinators' offices, as well as materials that the coordinators have devel- oped for contacting students and employers. In addition to working with the employers in Baltimore, close cooperation is `maintained with civic and corn- niunity organizations. Student activities.-Students are acquainted with the services of the placement office through assemblies and class meetings. Many students also participate in job readiness sessions taught by the coordinators. All students who seek place- ment are interviewed by the coordinator, and efforts are made to place the stu- dents in suitable jobs. Contact person.-Miss Lillian Buckingham Department Head, Placement Serv- ices, Baltimore Public Schools, Baltimore, Maryland 21218. Option 3.-Fund local multi-agency consortium or council to arrange f~r place- ment services Each school district would be invited to form a multi-agency consortium or council which would either take responsibility or deter such responsibility to the school or local ES to hire and supervise placement personnel. The consortium or council would have representatives from schools, manpower agencies, CETA, ~ Reported in detail in Report No. AIR-346--6/73--TR of the American Institute for Research. PAGENO="0134" 130 labor and ir~dt~stry (e.g., Education and Work Councils, Industry-Education Councils, CEPA Planning Councils, etc.). Funds for p~rsonpel, geijergi gt~jde- lines and approval of plans would come jointly from Hl~W, DOL, and Commerce. Legislative authority for this approach could be CETA Title I, if Prime `Sponsors could be persuaded to establish and utilize sucb councils for tl~js pur- pose, OETA Pitle III, Wagner-Peyser, YEA 1968; Title X-B o~ the Education Amendments of 1972. New legislation might be preferable. 4rqi~rn~nfa in fa4or i. Fosters full-scale ~in~ng of key institutions (schools, manpower agencies, ewp1~yers) at the cornnnu4ty level of decision-making and action. Admits ready link to C~YPA p~irne sponsors. 2. Avoids problems that Tesult from invasion of turf when one institution makes isolated decisions and imposes actions on others.. 3. More likely to assure the hiring of quality plac~em~mt `staff with contacts in the business community. Makes possible, also, the short-term employment of placement staff withOut getting locked Into `prob~e~ of lif~tlrne employment through tenure or civil service laws~ 4. Decentralized decisions on hiring and supervision m~n~ 1Ikei~ to be in accord wit~i local realtties. Argtiment8 against 1. Historically, consortla and coordinating councils slow to get underway and become effective: Sometimes this approach impedes decision-making and willing- ness to take responsibility for somet~ulng. 2. Creates yet another decision-making layer and encr~aebes on apthority of various institutions. Also, diffuses local leadership and possibly becomes cop- dused with the role of OETA Planning Copncils. 3. DIfficult to administer from federal standpoint If more than one depart- ment is involved (HEW, DOL, and Commerce). 0