present, we could give you a good indication of the monthly increase in the number of people hired.

Senator NELSON. Would you submit that for the hearing record? Mr. HAMILTON. We will break those figures down for you and submit them.

Senator NELSON. In each month, you end up with a net retained here of 209,066. Can you give us the losses during those same

months?

Mr. HAMILTON. Yes.

The number of terminations that would be occurring in each one of those months. That is correct.

Senator NELSON. If you would, submit that for the record.

Mr. HAMILTON. All right.

Senator NELSON. But you don't have a breakdown of this 209,000 telling us how many of them have been on the job for any specific period?

Mr. HAMILTON. That is correct.

I might add, Senator, that in December of last year we recognized that then it would be helpful to have a better method of being able to identify people who have been on board for certain prescribed periods of time. At that point, we began to press our employers to give us a separate figure on how many people had been with them for 6 months or longer.

Now we are beginning to receive those figures. They are not complete at the present time.

Mr. WILSON. The great majority of employers participating in the program do so voluntarily that is, without reimbursement from the Government. In this situation, any reporting system is far from perfect and it is likely that our figures include neither all of the hires under the program nor all of the terminations.

We believe they nonetheless give a fair and accurate picture of the progress of the AB program. In the last report 73 percent of the companies which hired to date reported.

We are currently developing a reporting system through social security records which will tell us how many of the so-called dropouts under our program move on to work with other employees, and how greatly their earnings increase as a result of the program.

Preliminary reports show that the earnings of NAB trainees hired in 1968 showed a mean increase of 48 percent over their earnings in 1967.

The information we have been able to gather on contract and noncontract hires shows that the characteristics of trainees hired under the voluntary part of the program are virtually the same as those hired under the contract program.

Senator NELSON. What do you mean by that?

Mr. WILSON. The characteristics of the contract hires and the noncontract hires.

Senator NELSON. In terms of length of period that they retained the job, for example?

Mr. WILSON. I will ask Mr. Hamilton to answer that.

Mr. HAMILTON. There are two parts to the NAB/JOBS reporting program. First, there is a tally count submitted on a quarterly

basis by each employer. This gives the number hired, the number terminated and the number on board for each employer.

In addition, we request employers, and we are not always successful, to submit a hire card on each individual trainee hired. This is a contractual requirement under the contract portions of the program, but there is no method of compelling volunteer employers to do it, except by persuasion and exhortation.

As of the end of March, for example, on hire cards, we had 118,000 hire cards from volunteer employers and 59,793 hire cards from contract employers. So, this is 40 percent of the total number of trainees hired in the program.

Now, we can derive from these hire and terminate cards figures the length of time the trainees have been on board. However, these figures are not complete, and they do not comprise a rigid sample. Senator NELSON. The contract employers are required to report, are they not?

Mr. HAMILTON. That is correct.

Senator NELSON. So that represents 100 percent of the contract employers.

Mr. HAMILTON. That is right.

Senator NELSON. And what percentage of the other group, did you say?

Mr. HAMILTON. It is 118,000, so that would be roughly 40 percent. I am sorry no, it won't be 40 percent. It would be roughly one fourth of the total number of hires.

Senator NELSON. On page 3 in the last report, 73 percent that you mention, does that include contract employers as well?

Mr. HAMILTON. I am sorry?

Senator NELSON. The last sentence in the last paragraph on page 3 refers to 73 percent. Is that 73 percent both contract and noncontract employers?

Mr. HAMILTON. That would be all employers submitting their tally cards, as distinct from the hire and termination cards. Senator NELSON. As distinct from what?

Mr. HAMILTON. This would be 73 percent of all the companies hiring, and submitting the tally card, versus the hire cards which are based on individual trainees.

The tally cards are submitted for the company as a whole, for all of the trainees that they have.

Senator NELSON. So that 73 percent represents both contract and noncontract employers?

Mr. HAMILTON. That is correct, sir.

Mr. WILSON. We believe that they show that we are reaching the target population defined for us under the Government definition of disadvantaged.

We also find that the characteristics of jobs offered do not differ greatly between contract and noncontract hires and the majority are for good jobs, at reasonable wages, with valuable training or work experience, and an opportunity to enter the mainstream of a productive and rewarding life.

In a program as large as ours, there will inevitably be some failures and some disappointments. I am sure it is obvious to the

members of this committee that selected samples of disappointing JOBS contract performance are not reflective of the overall good work being done nationwide by thousands of NAB companies, both contract and noncontract.

I should point out that NAB does not negotiate JOBS contracts for employers nor monitor their performance. It is our task to persuade employers to hire and train the unskilled, inexperienced and disadvantaged workers who for years have been rejected as unemployable.

As representatives of the American business community we believe that any cases in which a contractor or subcontractor has not performed contracted services should be exposed and corrected.

I am sure, however, that the members of this committee will agree with me that this can and should be done in a way which does not do a disservice to the hundreds of thousands of disadvantaged individuals who have received valuable opportunities for a better life through this program and to the companies which have hired them.

In conclusion, let me say that we are optimistic about the future of the alliance.

American business has hired more than 300,000 disadvantaged workers under the JOBS program without government financial assistance. The value of the training these workers have received can be conservatively estimated at over $200 million.

In addition, approximately 2,000 executives have been loaned by their companies to work full time on behalf of the JOBS program for periods extending up to 1 year.

A conservative estimate of their salaries would be over $10 million-not even considering the thousands of men and women, who have worked part time on our pledge drives for the JOBS for summer youth employment programs.

The record so far, we believe, is a good one. The vast employment resources of the private sector have been mobilized as never before to solve one of the most pressing problems of our society. NAB is proud of the business community's response and of its willingness to accept and accelerate change.

These thousands of men and women who have worked for the JOBS program are practical people. They do not believe in wasting their time, their money, or that of anyone else. They believe-on the basis of their own first hand experience that they are creating hundreds of thousands of opportunities for men and women who never had these opportunities before.

President Johnson proposed the NAB program. President Nixon expanded it. The American labor movement has supported it. And business believes in it.

I want to make it clear that we have had splendid cooperation in the Department of Labor under the previous and the present administration.

Senator NELSON. What is the effect of the increasing unemployment on this program now, in the past few months?

Mr. WILSON. It has had some effect, but, Senator, we have shifted

into securing jobs for this type of individual in what we call the service industries.

For example, if you-I don't how it is with you, but as far as I am concerned, I had a typical example of it where I smashed up a fender.

The fixing of a fender and painting it and bending it out is not too difficult a job, but I had to make an appointment to get that fender fixed 6 weeks in advance, and I had to set a certain date, just the same as I set an appointment with my dentist.

In these service jobs, of mechanics, hospital workers, repair men, in the wholesale and retail, trade, finance, insurance, real estate, and all these service type industries, there is a shortage of employees for these jobs.

There is no such thing as unemployment as far as those jobs are concerned.

In the fall we negotiated with the Labor Department the JOBS 70 contract. We developed a consortium agreement for use by the smaller employers; the retailers, or the trade associations.

More than half of the total employment in the United States is in the service area, and is increasing rapidly. Even in the period of economic contraction, industries normally continue to increase in this sector of the economy.

Our emphasis recently has been directed toward the service industries, and we are having success there.

At the present time, contracts are running almost $8 million a week. Let me say something about this. When we realized the complexity of the contract and the fact that 70 percent of all businesses in the United States employees employs less than 250 people, we realize we had to give a more simple type of contract for the small employer.

In the fall, in cooperation with the Labor Department, we negoti ated what we call a simplified form of contract called JOBS '70. Also in order to process the large number of contract applications and to service these contracts it was necessary to have a simplified procedure.

The Labor Department was successful in getting the State employment people to furnish representatives to help in connection with the negotiation of these JOBS '70 contracts.

It took time to train their people in the Labor Department it took time for us to train NAB people. We really have jus gotten started in February on these JOBS contracts for smalle employers. These contracts are now being processed. From the evi dence that we have at the present time, we think that we hav been successful in changing the form of the contract to satisfy the need. This will benefit not only the public, but also it is going t give meaningful jobs to the people in the service industry.

I am not talking about jobs that are not good jobs; I am talking about banks and insurance, real estate, repair, hospitals, universi ties, the wholesale and retail trades. We are also working throug the trade associations, through the chambers of commerce, and w think we are being quite successful.

In answer to your question, sure, increasing unemployment is bound to have some effect as far as the larger companies are concerned, but we find that there are jobs with the smaller employers in quite great numbers.

Senator NELSON. Are the participants in the JOBS program expanding their number of employees under this program or are they contracting the same number as in the past 6 months?

Mr. WILSON. I think, from the information that was just given me by Mr. Hamilton, that from December 1969 to March 1970, our monthly employment rate declined from 28,000 a month to 21,500 a month.

However, the number of companies hiring increased from 12,177 in November to 14,114 in March, and contract companies increased from 1,189 in November to 1,643 in March, which shows that the shift is over from some of the large companies, and we are getting a great number of smaller companies into the program.

Senator NELSON. But the total initial hires has gone from 29,000 a month to 21,000. You have a breakdown by the month, do you, that would show any trend?

Mr. WILSON. We don't have them here but we will provide it for you, sir.

Senator NELSON. We would appreciate that.

Do you have a breakdown on the increasing employment in the service industries? Do you have a breakdown on employment there that would show that increase?

Mr. HAMILTON. Senator, one thing that the system, the information system, as it was originally developed never contemplated was the degree, or the detail required as far as Congress was concerned, namely, the standard industrial code.

As a result, we are not able to identify by company characteristics what actually is the type of company that we have within the program, particularly as far as the volunteer program is concerned. Therefore, we are not able to produce that information based on type of business or type of industry.

Senator NELSON. I have a whole list of substantial corporations in a list here, which I won't recite, that have substantially reduced their number in the program.

Is that continuing, especially in the field of industrial production? Mr. WILSON. In the larger companies, there has been a certain amount of that all over the country, and so it has affected us somewhat. What we have done is simply shift our emphasis in securing these jobs for the disadvantaged to the smaller employer, and the service industries, and as long as you have some type of whatever you want to call it, whether you call it a mini recession or what kind of recession, or what it is, there has been a certain amount of cut back.

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