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SECTION 2. Functions of the Committee. The President's Committee shall facilitate the development of maximum employment opportunities for the physically and mentally handicapped. To this end, the Committee shall supply information to employers, conduct a program of public education, and enlist the aid and cooperation of Federal officials, State officials, Governors' Committees, local committees, professional trade groups, and organized labor. In carrying out the functions vested in it by section 8 of the Vocational Rehabilitation Act, as amended, the Committee shall work closely with the Department of Labor, Department of Health, Education, and Welfare, the Veterans' Administration, State employment-security agencies, and State vocational-rehabilitation agencies. SECTION 3. Executive Committee. (a) There is hereby established the Executive Committee of the President's Committee on Employment of the Hanidcapped. The Executive Committee shall be composed of the Chairman of the President's Committee, who shall also be the Chairman of the Executive Committee, the Vice Chairmen of the President's Committee, and so many additional members as will provide an Executive Committee of not less than fifteen and not more than fifty members. The said additional members shall be appointed annually by the Chairman of the President's Committee, from among the members of the President's Committee, or otherwise. The Chairman of the President's Committee may at any time terminate the service of any member of the Executive Committee.

(b) The Executive Committee shall advise and assist the Chairman of the President's Committee in the conduct of the business of the President's Committee and, as authorized by the President's Committee or the Chairman thereof (with due regard for the responsibilities of other Federal agencies), shall study the problems of the handicapped in obtaining and retaining suitable employment, invite authorities in the various professional, technical, and other pertinent fields to assist in the exploration of those problems, and review and develop plans and projects for promoting the employment of the handicapped.

SECTION 4. Advisory Council. There is hereby established the Advisory Council on Employment of the Handicapped, which shall advise the President's Committee with respect to the responsibilities of the Committee. The Council shall be composed of the Chairman of the President's Committee, who shall also be the Chairman of the Council, and of the following-named officers, or their respective alternates: the Secretary of Agriculture, the Secretary of Commerce, the Secretary of Labor, the Secretary of Health, Education, and Welfare, the Administrator of Veterans' Affairs, and the Chairman of the United States Civil Service Commission.

SECTION 5. Administrative and incidental matters. (a) The President's Committee, the Executive Committee, and the Advisory Council shall each meet on the call of the Chairman of the President's Committee at a time and place designated by him. In the case of the President's Committee and the Executive Committee, the Chairman shall call at least one meeting and two meetings, respectively, to be held during each calendar year.

(b) In the absence of designation by the President, the Chairman of the President's Committee may from time to time designate a Vice Chairman of the President's Committee to be one or more of the following-named in the absence of the Chairman: Acting Chairman of the President's Committee, Acting Chairman of the Executive Committee, and Acting Chairman of the Advisory Council. The Chairman of the President's Committee shall from time to time assign other duties to the Vice Chairmen thereof.

(c) The Chairman of the President's Committee shall on behalf of the President direct the Committee and its functions.

(d) The Chairman may from time to time prescribe such necessary rules, procedures, and policies relating to the President's Committee, the Executive Committee, and the Advisory Council, and their affairs, as are not inconsistent with law or with the provisions of this order.

(e) All members (including the Chairman and Vice Chairmen) of the President's Committee, the Executive Committee, and the Advisory Council shall serve without compensation. The Chairman and the Vice Chairmen of the President's Committee may receive transportation and per diem allowances as authorized by law for persons serving without compensation.

(f) Employees of the Committee shall be appointed, subject to law, and shall be directed, by the Chairman of the Committee. To such extent as may be mutually arranged by the Chairman of the Committee and the Secretary of Labor, employees of the Committee shall be subject to the administrative rules, regulations, and procedures of the Department of Labor.

(g) The Department of Labor is requested to make available to the President's Committee necessary office space and to furnish the Committee, under such arrangements respecting financing as may be appropriate, necessary equipment, supplies, and services. The estimates of appropriations for the operations of the Committee shall be included within the framework of the appropriation structure of the Department of Labor, in such manner as the Director of the Bureau of the Budget may prescribe. The Chairman of the Committee, in cooperation with the Budget Office of the Department of Labor, shall be responsible for the preparation and justification of the estimates of appropriations for the Committee.

SECTION 6. Prior orders; transition. (a) To the extent that this order is inconsistent with any provision of any prior order, or with any provision of any regulation or other measure or disposition, heretofore issued, made, or taken by the President or by any other officer of the executive branch of the Government, this order shall control. Executive Order No. 10640 of October 10, 1955, is hereby superseded.

(b) Without further action by the President or the Chairman of the Committee, all members, employees, records, property, funds, and pending business of the President's Committee on Employment of the Physically Handicapped provided for in Executive Order No. 10640 of October 10, 1955, shall on the date of this order become members, employees, records, property, funds, and pending business of the Committee established by this order.

(c) The tenure of persons as members of the Committee in pursuance of the provisions of section 6(b) of this order (i), in the case of persons appointed to the predecessor Committee by the President, shall be at the pleasure of the President, and (ii), in the case of other members, shall be for periods equal to their respective unexpired terms under Executive Order No. 10640 but shall also be subject to the provisions of the last sentence of section 1(b) of this order.

THE WHITE HOUSE, February 14, 1962.

BUREAU OF LABOR STATISTICS

JOHN F. KENNEDY.

STATEMENT OF EWAN CLAGUE, COMMISSIONER

Senator HILL. There will be inserted in the hearings the appropriate tables from the justifications in support of this estimate. (The material referred to follows:)

[APPROPRIATION ESTIMATE]

BUREAU OF LABOR STATISTICS

SALARIES AND EXPENSES

For expenses, not otherwise provided for, necessary for the work of the Bureau of Labor Statistics, including advances or reimbursement to State, Federal, and local agencies and their employees for services rendered, [$12,667,000] $15,297,000.

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Summary of changes

1962 appropriation_

1963 estimate....

Total change.___.

Mandatory items:

Increase:

Payments to States for increased salary rates in connection
with cooperative employment statistics and labor turn-
over statistics program (nonlabor, $42,000) -
Payment to employee compensation fund due to Public
Law 86-767 (nonlabor, $1,000) – –

Program items:
Increase:

To restore 1962 salary money used 10 months in 1962 to
finance the increased rate of per diem authorized by
Public Law 87-139.

To provide for annualization (2 months) of the per diem
increase referred to above_.

To annualize the cost of extending the Federal-State joint
labor turnover program to the 9 States included for
varying periods during fiscal 1962 (nonlabor, $50,000) --
Printing of the "1963 Ŏccupational Outlook Handbook"
(nonlabor, $27,000) _ .

Expansion of the monthly report on the labor force to in-
clude additional areas (nonlabor, $50,000) - -
Reestablish 50-50 basis on cooperative employment sta-
tistics program (nonlabor, $100,000)_

The changing structure of unemployment and the labor
force and studies of worker mobility (11 positions,
$82,155; nonlabor, $274,845) – –

Projections of occupational manpower requirements, in-
cluding development of essential occupational informa-
tion (25 positions, $171,416; nonlabor, $28,584)---
Annual survey of man-hours and payroll for all employees
(11 positions, $70,081; nonlabor, $79,919).
Extension of pricing for the Consumer Price Index item
and outlet samples (50 positions, $277,101; nonlabor,
$122,899)__

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Price and index number research studies (12 positions,
$87,815; nonlabor, $17,185) –

+105, 000

Standard budget research to revise the City Workers
Family Budget and the Retired Couples Budget (6
positions, $42,249; nonlabor, $7,751).

Industry price indexes (14 positions, $81,714; nonlabor,
$18,286)

+50,000

Employer expenditures for fringe benefits and analysis
of the composition of payroll hours (12 positions,
$69,675; nonlabor, $30,325)-

+100, 000

+100, 000

Survey of salary structures (6 positions, $39,089; nonlabor,
$15,911)

Collective bargaining and industrial relations practices at
the plant level (6 positions, $38,722; nonlabor, $11,278) -
Union structure and technical assistance in settling labor
disputes (10 positions, $69,721; nonlabor, $10,279) --
Effects of technological changes (22 positions, $172,610;
nonlabor, $52,390) -

State services-cooperative work-injury rate program
(8 positions, $35,018; nonlabor, $14,982).

Workmen's compensation statistics (5 positions, $33,998;
nonlabor, $16,002) -

+225, 000

+50,000

+50,000

International comparisons (7 positions, $43,311; nonlabor,
$6,689)

+50,000

Foreign labor reports (6 positions, $40,231; nonlabor,
$9,769).

Manpower resources and requirements for defense mobi-
lization (17 positions, $134,917; nonlabor, $4,083) _.

Total change--

+2, 630, 000

+50, 000

+ 139, 000

+55, 000

+50,000

+80, 000

PREPARED STATEMENT

Senator HILL. Mr. Clague, Bureau of Labor Statistics. We are happy to have you back this morning. We will be happy to have you proceed in your own way.

Mr. CLAGUE. I have a statement which I would like to file for the record.

Senator HILL. We would be happy to have your statement appear in full in the record just as you submit it.

(The statement referred to follows:)

STATEMENT OF EWAN CLAGUE, COMMISSIONER OF LABOR STATISTICS

SALARIES AND EXPENSES

Never before in the long history of our Bureau have our statistics been at the center of public policy and public controversy as they are today. There is a demand for more detailed statistics, greater accuracy, and more thorough analysis. To meet this need the Bureau requests an appropriation of $15,297,000, which represents an increase of $2,630,000 over the amount appropriated for fiscal 1962. The major emphasis among the expanded programs is on (1) employment and unemployment statistics and (2) statistics of prices. In both of these fields national interest has been expressed through the appointment of high-ranking committees of experts and through the holding of hearings by committees of the Congress. In almost every field in which the Bureau operates, however, there is an urgent need for more and better information on the problems which confront our economy, both at home and abroad.

Employment and unemployment

There is no need to emphasize to this committee the importance of our statistics on employment and unemployment. During this past year these statistics have been subjected to intensive review and to public debate, which has ranged all the way from extreme criticism to helpful suggestions for improvement. Issues have been raised about the methods by which our statistics are compiled, the concepts which we use in measuring employment and unemployment, and the comparability of our statistics with those of foreign countries. Last December, the Joint Economic Committee held 3 days of hearings on the unemployment problem. I presented testimony before that Committee on the details of our methods, operations, and results. Members of the staff of our Bureau prepared special papers which formed a substantial part of the foundation for later discussion by representatives of labor, management, and the general public. On the initiative of Secretary Goldberg, President Kennedy appointed a special Committee (Committee to Appraise Employment and Unemployment_Statistics) to review the activities of the Bureau of Labor Statistics and the Bureau of the Census in the collection, compilation, and publication of employment and unemployment data.

It has been our judgment in the Department of Labor that unemployment in the 1960's would become a more troublesome problem than it had been for the past 20 years. Your committee is quite familiar with the projections which we have made concerning the labor force and its composition. We believe that the economy is already experiencing some of the difficulties which we had forecast several years ago. If this is true, then we must bear in mind that some of these problems will require increasing public attention, regardless of the waves of booms and recessions.

There has been much public discussion as to whether the higher unemployment rates of recent years are due to inadequate demand or to structural difficulties in the economy. We think that both factors are present; we are convinced that the structural problems cannot be neglected. For that reason we share the belief that more detailed information is needed on the unemployed, on the causes of their unemployment, and on the reasons why they cannot find new jobs.

Last year, your committee provided us with funds to obtain certain information on these points. We have planned and are initiating in the field a followup survey of a sample of persons unemployed in 1961 which will include a 5-year work history as well as information on their training and education, reasons for loss of jobs, job seeking methods, the type of jobs sought, labor force status of other family members, family income, and other facts which will help evaluate

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