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