Statement on the Reemployment Efforts of Private Industry.

Reemployment has been increasing rapidly during the last year, and reports from industry are to the effect that further gains in employment can be expected during the coming year.

Unemployment relief has reflected this improvement in employment. From the peak of 5,316,000 unemployed families and 'single persons in January, 1935, the number declined 28 percent by August, 1936.

Despite this decline a large number of unemployed remain on the W.P.A. and other governmental agencies.

These workers are to a large extent unskilled and a disproportionately large number are older workers- forty years and over. The sharpest revival in employment has been among skilled workers and relatively young workers. The unskilled and the older workers have shared in this revival to a much less extent.

In the relief message to Congress on March 18, 1936, I asked private business "to extend its operations so as to absorb an increasing number of unemployed." Many private businesses are responding—but much remains to be done.

Industry should continue to increase its reemployment efforts. To reduce substantially the unemployment relief rolls, industry must hire a larger number of the older workers and the unskilled workers. This problem will, I hope, be recognized by industry. It is widely known that many of the largest industries will not hire workers over forty years of age. To a large extent this policy is responsible for the relatively large number of older workers on relief. Leaders of business must recognize the consequences of this hiring-age policy; it condemns many in this group of workers to permanent unemployment.

It is scarcely necessary to point to the seriousness of this policy to the unemployed. Long continued unemployment for the older workers results sooner or later in unemployability. The non-employment of unskilled workers likewise leads eventually to unemployability, and this means a permanent problem of support. And the burden of support is carried ultimately in large measure by industry itself.

It is to the best interests of industry to recognize its responsibility, not only by substantially increasing employment but by employing those in groups where many are now supported by public funds. Industry can adjust its hiring policies so as to cause the speediest reduction in the real social burden of unemployment. This means giving a fair share of the new jobs to the workers over forty and expanding opportunities for the hiring of unskilled workers.

In the relief message of March 18, 1936, I stated that "Only if industry fails to reduce substantially the number of those now out of work will another appropriation and further plans and policies be necessary." Obviously industry has not yet increased its employment sufficiently to permit the Government to withdraw its aid from the unemployed. Moreover, the severe drought of this summer has required the use of a large sum of money which would otherwise be available for general unemployment relief. As a consequence, Congress will be asked to appropriate enough funds to carry the program through the fiscal year 1937.