In Georgia, agricultural production and income continue to increase. At the same time mechanization, more scientific methods, and consolidation of farm units result in greatly reduced demand for farm labor and thus a steady supply of workers for industry. In addition to this economic influence causing a constant increase of nonfarm labor supply, this is an area of rapid natural growth due to the large excess of births over deaths. Thus, the labor force is constantly expanding, with the result that a major increase in market for goods is created as well as labor supply for industry.

We have, then, the two facets of the situation. On one hand, industrialists are seeking appropriate locations for new plants or places to expand old ones. On the other hand, civic leaders in areas of labor supply but with little or no industry are seeking aid in analyzing their labor supply and resources in order that their development will be directed toward expanding industries.

It is obvious that the Employment Security Agency has a heavy responsibility at this point. Nowhere else is the required information concerning employment by industry, unemployment, and labor supply available. Our analysts are trained in the use of statistics and material of other agencies, such as the U. S. Bureau of the Census, the Department of Agriculture, in combination with our own data on insured employment and unemployment, job applicants, and employer requirements. We have now completed, reproduced, and distributed well over 100 studies on local areas over the State. Also, considerable unpublished information has been accumulated on other areas and used in personal contacts with promotional

groups.

Coordination of Effort

The principal agencies participating in this industrial expansion program are the State Chamber of Commerce, the Georgia Department of Commerce, industrial agents of the major railroads, the Georgia Power Co., industrial development departments of the larger banks, the local Chambers of Commerce or other industrial development organization, and the Employment Security Agency of the Georgia Department of Labor. While there is no formal organization at the State level, a high degree of teamwork has been established. Through personal contact and consistent cooperation, a genuine coordination of effort has been achieved without competition or desire on the part of any one organization to take the credit for success. Our agency renders full service to any employer requesting aid regardless of which channel he works through.

Normally, we are first asked to make a general labor survey of an area and to estimate the potential labor supply within reasonable commuting distance of the location under consideration. We give as much detail on the characteristics of the supply as is possible from the data available. Later when a specific employer is involved, we follow up with more analysis concern

ing his especial needs and, when indicated, register applicants interested in working in that particular industry. At this time we learn approximately how many experienced operators are available locally. Also we usually give aptitude tests to a sample of about one-tenth of those who register.

Let us take, for example, the case of a manufacturer of trailer and truck bodies in another region who wished to expand in this area. He was contacted by the industrial development agent of a large business concern in Georgia. Several towns were selected as having appropriate facilities for his proposed operations and the major question was which had the labor supply most suited to his needs.

The labor market studies were reviewed and a South Georgia town with a population of about 19,000 appeared to be suitable. The report stated that nonfarm employment totaled approximately 9,300. It was noted that the largest local establishment employed men in occupations which would give them useful experience for the new activity. Furthermore, this concern had been reducing its work force for about a year and a sizable number of former workers were unemployed. Also, another plant using men of similar skills had cut back when defense contracts were reduced. A visit to the town and contact with local businessmen and the Employment Service office convinced the employer that the location was excellent. He was ready to make his decision if definite proof were available that the local labor was suitable and wanted the jobs.

The Georgia State Employment Service office prepared a questionnaire which met his need and recruitment was initiated. Several times as many applicants as the employer proposed hiring were registered and he was satisfied that a qualified labor force was available. After selection and referral by the Employment Service, the initial staff was hired. The employer is happy with his new location and the town will benefit greatly from the jobs provided the local workers. The personnel officer of the company was quoted as stating that since their other activities were in an area of a much less homogeneous labor force, he had thought they would have to secure a ratio of applicants to jobs of 5 to 1. He was amazed to find that he could have employed practically everyone he interviewed.

SOS From a Small Town

One of our most pleasing experiences is the case of a small town of about 600 in the foothills. Civic leaders became convinced that action must be taken or the town would completely stagnate. There was no local industry. Agricultural activity was the small-farm subsistence type, although conditions had improved with the development of commercial broiler raising. The population of the county was declining and the young people had to migrate to other areas to secure jobs. There was considerable commuting to employment as far away as 75 miles.

The local citizens did not know what action to take but were determined to make an effort. They

enlisted the aid of the industrial development department of a large utility firm and other interested agencies, and the State school of technology assigned the problem to one of its classes as a project. Our agency cooperated by preparing an analysis of the labor supply in the area.

After much preparation and study of the possibilities, a number of prospective employers were contacted. Not one, but two firms were favorably impressed and investigated the situation. They were convinced that, even though the community was small, adequate labor was available in the area. Two plants were built, initial staffing has been completed, and production has begun. One plant produces zippers and the other woolen cloth. At maximum capacity they will employ several hundred persons. Residents of the town are enthusiastic over their success and planning for steady growth and future development. Other mountain towns have been inspired to take stock of their similar situations and considerable progress is being achieved.

On another occasion, a large national concern making apparel and engaged in other sewing operations needed a manufacturing plant in Georgia. Through the industrial agent of a bank with branches over the State, they had made contact with the industrial development committee of a civic organization in a small town. Adequate facilities were available, financial arrangements were made the only remaining question was labor. The employer was easily convinced that numerically there was no problem, but a more qualitative analysis was essential for his purposes.

The area was highly productive agriculturally, but until this time the only industry other than processing farm products was a small hosiery plant. It was necessary to determine whether the apparently available labor supply was actually suited to manufacturing operations. We organized an intensive re

cruitment drive which was successful. The personnel officer of the company came to the town to interview applicants personally. He requested the Employment Service to refer not just the best qualified for his selection but a broad cross section representative of the area so that he could appraise their attitudes and qualities generally. He was completely satisfied with the results and immediately offered employment to the initial staff.

The examples cited are representative of many individual cases in which the details differ only with respect to type of industry, size of plant, and similar factors. In some instances, the proposed new operation has very large labor requirements and it is necessary to prepare estimates of in-commuting and migration on a broader scale. Since the end of World War II, it is estimated that in addition to expansion of existing plants an annual average of about 200 new industries have located in Georgia. This service to employers has not only provided essential information to individual firms for use in their own planning, but cumulatively it has become a broad program of assistance in the economic development of the State. It discharges an important phase of our responsibility for stabilizing and promoting employment. Furthermore, it is the foundation for subsequent Employment Service functions in referral and placement.

The development of this particularly active program of labor market information dissemination to the public and to specific employers for their individual and special needs has occurred during a period of plentiful labor supply throughout the State. Consequently, in many instances, generalizations and relatively rough estimates have sufficed. To continue an effective service, techniques must be refined and improved and our sources of information must be broadened.

Although much has been accomplished toward

balancing the local economy-agriculture with industry-this area still does not support itself industrially and it appears certain that the movement toward industrialization will continue to gather momentum. As it does, we shall need more accurate numeric measures of labor supply, and considerably more information with respect to characteristics of the potential workers. As more time elapses from the date of the most recent census, better methods must be devised for adjusting basic data to current periods. Lack of sufficient occupational information forms a

gap in our knowledge. Specific wage-rate information is not always immediately available to the extent needed.

In order to enhance the value of these studies and reports, we must be alert to recognize their weaknesses and constantly improve the methods and techniques of preparation. In the meantime, we are inspired by many assurances from employers and community leaders that the Employment Security Agency is contributing much, through performance of this service, to the economic development of our State.

N ILLINOIS, the introduction in late 1948 of the Organization and Management Program for local offices brought about significant improvements in the effectiveness of the Employment Service operations in every area of activity. For example, in the Downstate Area, the penetration rate increased from approximately 8 percent in the first 6 months of 1949 to 34.3 percent for the first 6 months of 1954. Downstate Illinois is an area served by 38 local offices covering 101 counties with a population of 1,773,000 and a nonagricultural work force in the major market of 636,000.

However, in a number of the larger communities in the State a leveling-off point in penetration appeared to have been reached by late 1952. It became hard to effect a further improvement in the use of the Employment Service by employers and the penetration rate of these communities did not continue to increase as it did in other local office areas. This, coupled with the very tight labor market which existed at that time and criticism from employers and employer organizations regarding persons drawing unemployment compensation in such labor market areas, made it necessary for Illinois to initiate and develop new and different methods for gaining greater acceptance and use of the Employment Service. The Community Plan for Maximum Utilization of Local Labor Supply was the result.

The Community Plan has been installed in five communities Rockford, Springfield, Decatur, Bloomington, and Waukegan. Its success in these cities has resulted in plans being made for extending the pro

February 1955

gram to all Illinois cities, with a population of over 25,000.

Rockford is typical of the areas in which the plan has proved successful. A community of 120,000 inhabitants with 69,000 workers, Rockford is one of the leading machine tool centers of the world. A conservative community, it has a vigorous, dynamic employer organization, the Rockford Chamber of Commerce, which watches closely all legislation and activities affecting business and employment. The Major Market, consisting of 225 firms, represents 80 percent of the work force; the Minor Market has 2,100 firms. At the time the program was developed and introduced, Rockford's labor market area classification was Group I.

When the Organization and Management Program was installed in Rockford, our major market penetration rate was only 3.4 percent. In 21⁄2 years, it increased to about 15 percent and there it stayed. We could not move it higher.

Under the conditions cited above it was apparent further action had to be taken. The Community Participation Program was developed by the Employment Service with the urging and help of the Chamber of Commerce and leading employers in the Rockford area. All agreed that if the program were accepted by all employers in Rockford and proved to be effective, it could be successfully introduced into other

areas.

As the first step, a claimant characteristic survey was made in the Rockford area to determine the extent to which the Employment Service was in

9

a position to make suitable job offers (often referred to as the "work test"). The survey showed that the local office was able to provide such work tests for only 8.4 percent of the claimants. At the same time, information was gathered as to the total number of claims made during the last 6 months and the last year, the amount of benefits paid, the average benefits, the contributions collected, and the contribution rate.

The next step was to meet with the head of the leading employer organization and top management of 8 or 10 of the leading firms in the area. We reviewed frankly with them the claimant characteristic survey and openly admitted the Service's inability to apply the work test effectively without greater employer cooperation. This meant placing more orders with the Employment Service so a more effective work test might be applied.

The group was told that the Service was in the untenable position of attempting to serve employers, doing an effective job of offering claimants suitable work, helping to keep employers' unemployment compensation tax rates at a minimum, and yet the agency was being denied the cooperation necessary to carry out its responsibility by employers' withholding their job openings. This open, frank analysis, together with a review of the material on claims, benefits, and

Briefly, the Plan proposes that all employers place all their job openings with the Illinois State Employment Service. This does not mean that the employers agree to hire only through the Service. They can, of course, recruit workers from any source they desire. Nor does it in any way interfere with any agreements between employers and labor organizations. However, it does provide a means for the Employment Service to bring to the employers' attention workers who otherwise might not have been considered, helps bring about more rapid reemployment of unemployment compensation claimants and makes it possible to more adequately apply the work test.

The complete plan, a copy of which is sent or given to every employer, explains the program and its purpose; points out its advantages to employers, to workers, and to the community; and tells how it is to be put in operation. This plan, during its development, was cleared with the State Chamber of Commerce, the Illinois Manufacturers' Association, and State labor organizations, all of which made suggestions and approved the plan.

After the plan was tentatively accepted by the