Senator KENNEDY. How many contacts would you say you have made?

Mr. LAIBLE. I would say on a personal basis I have made, oh, maybe half a dozen, maybe eight personal contacts.

Senator KENNEDY. These would be people you have known and worked with in different companies?

Mr. LAIBLE. That's right, yes.

Senator KENNEDY. And what has their reaction been to the fact you are going to be unemployed?

Mr. LAIBLE. Well, their reaction is that things are tight where they are. If anything, they are not hiring people. They are laying people off. Senator KENNEDY. So at the end of this next week, you have no real prospects?

Mr. LAIBLE. No, I don't. On the outside of RCA, I have nothing to look forward to at the moment.

Senator KENNEDY. And in spite of the commendations you have received from NASA and your own company, the commendations you have received throughout your whole working life, 44 years of age, five children-is that right?

Mr. LAIBLE. Six.

Senator KENNEDY. Six children, and after next week, as far as you know, that's your last paycheck, as far as you can see?

Mr. LAIBLE. Yes, sir; that's the way it stands right now; yes, sir.
Senator KENNEDY. Thank you very much.

The next witness is Mr. Robert Salow of Newton, Mass. We welcome you, Mr. Salow.

STATEMENT OF S. ROBERT SALOW, ENGINEER, NEWTON, MASS.

Mr. SALOW. Mr. Chairman, I am S. Robert Salow, Newton, Mass. I didn't intend this testimony to be a session of anecdotes concerning the trials and tribulations of the professional unemployed, but one story has unfolded within the last few weeks, which, although it is extremely tragic, much of it is quite typical of many cases.

A respected scientist, who was employed by a large research firm in the Boston area, was laid off with very short notice, having served this company for 20 years. His shock, his bewilderment, his feeling of desperation propelled him to critically injure his wife and child

Senator KENNEDY. Before we get into this, maybe you can tell us a little bit about yourself and what you are doing up in the Greater Boston community, so that we can better understand these cases.

As I understand it, you are helping in assisting the unemployed scientists in finding jobs and in obtaining necessary services while they are unemployed. Could you tell us something about these activities before we get into specific examples? Tell us a little bit about yourself and how you got into these activities and specifically what you are doing.

Mr. SALOW. As I would indicate further in my testimony, I am the president of the Economic Action Group, Inc., which is a self-help group, one of a number that has been established by professional people across the country, although there is no organized interaction among the groups. This group was established late last year, late 1970.

Senator KENNEDY. From my contact with the community, I think this is impressive. All of these people are ready and willing and wanting to help themselves. I think this attitude is marvelous. You can continue.

Mr. SALOW. In my role in the Economic Action Group, and with several other organizations which I will refer to later, I have found that there is indeed a great deal of enthusiasm for helping each other and helping themselves through interaction among the professionals; that, as you say, it's quite impressive to find these people really eager to find positions; that are not willing to sit by and just become unemployed as a career.

Senator KENNEDY. When was this group founded or started?

Mr. SALOW. The Economic Action Group was founded late in 1970. Another group, with which I am associated, the Association of Technical Professionals, although it's a professional organization as such, under today's job market conditions, is addressing some of its energy to the problem of unemployed professionals, technical professionals, in particular.

There is another program, which was brought through the Labor Department, a contract with the American Institute of Aeronautics and Astronautics, for establishing professional concentration within employment services of a number of areas of high professional unemployment.

Senator KENNEDY. How many people are there in these groups that you have mentioned here? How many scientists and technical people have you been working with, approximately?

Mr. SALOW. In the Greater Boston area, I would say that through my activities I have direct or indirect access to about 2,000 to 2,500 people.

Senator KENNEDY. Are you the principal group engaged in these activities in the Greater Boston area?

Mr. SALOW. Of self-help groups, the Economic Action Group is one of two which have the primary activity. There is another which is just as active and about as productive as we are. There are a few others which are smaller and have varying degrees of activity.

Senator KENNEDY. Let me ask you this: Have you been contacted by anyone within the National Science Foundation or the Labor Department, to try and work with you and find out ways in which they can be of help or assistance?

Mr. SALOW. No, sir.

Senator KENNEDY. To your knowledge have any of these groups that are trying to help and assist scientists been contacted?

Mr. SALOW. There are some initiatives on the part of the groups. Among them, of course, going through the Division of Emplovment Security in the Commonwealth of Massachusetts, which is a Labor Department function; and through the Manpower Administration, but there has been no offer of support of this kind of activity.

Senator KENNEDY. Mr. Laible, I'd be interested in your experience. Are you affiliated with any group in New Jersey that is engaged in self-help activities?

Mr. LAIBLE. Well, I belong to the Association of Scientists and Professional Engineering Personnel, which is really more or less a union within RCA. I have attended some classes held by AIAA. Since

I still am employed, I really haven't looked into any self-aid organization except the AIAA.

Senator KENNEDY. I see. But to your knowledge, have there been any initiatives by the Labor Department or National Science Foundation or any other Government agency that you know of? Has any Government agency on its own initiative reached out to you and contacted you and tried to find out ways they could be of help and assistance?

Mr. LAIBLE. Just the AIAA.

Senator KENNEDY. That's not Government, though.

Mr. LAIBLE. No, but I think they have some kind of-they have received funding, I think, through the Government.

Senator KENNEDY. I see. Would you continue, Mr. Salow.

Mr. SALOW. As I was referring to this scientist who had been laid off by his firm after 20 years.

Senator KENNEDY. Yes. So, I understand, your organization has been trying to help scientists, engineers, and technical people in the Greater Boston area and has had some contact with approximately 2,000 scientists or technical people, and the example you are giving now is one of those people you or your organization has had contact with?

Mr. SALOW. Yes, sir, that's true. This man's shock and bewilderment, feeling of desperation

Senator KENNEDY. He was laid off by one of the major companies up in Massachusetts?

Mr. SALOW. Yes. It's a very well known, internationally known firm. Well, the situation propelled him to critically injure his wife and child and then kill himself. As horrible as this story is, psychiatrists in the Greater Boston area have identified at least five suicides in the last year which can be attributed to the unemployment situation among professionals.

As my general subject will be in matters concerning unemployed professionals, I really wish I weren't such an expert in these areas. I was going to introduce myself as an electronics systems engineer with 15 years experience in the field. However, the last time I drew a salary paycheck was 16 months ago today. For the larger part of the time between then and now, I have developed a new form of career, although I haven't received any money in doing it.

During this time I have become active in several organizations, which, at best, might enhance my opportunity for employment. One of these, the Economic Action Group, Inc., of which I am the president, is a voluntary self-help organization, established late in 1970, to further the interchange of assistance among the professionals who were beginning to become unemployed in large numbers.

My reference here to professionals is intended to encompass not only the technical personnel, scientists, and engineers but also managerial, marketing, financial, legal and related areas as well.

I have met many people who want to help themselves and perhaps be helped by their peers. While intensification of job-hunting efforts is a primary goal, retaining one's dignity, stability, and perspective are equally important. To this end, the Economic Action Group utilizes its resources to provide referrals and guidance in personal and family counseling, financial and legal matters, political awareness, health care

and insurance, and in extracting the benefits of various governmental agencies. I might add that, at this time, the entire effort is voluntary and unsupported, and we are open to financial help to further our

efforts.

The other principal self-help group in the greater Boston area, the New Meadows Foundation, has similar aims, achievements, and financial problems.

The other organization in which I play an active part in the Boston area is an affiliate of the State employment service; also a voluntary, unsupported organization, whose principal purpose is to assist and enhance the facilities provided by the State of Massachusetts toward unemployed professionals, particularly in the area of developing new jobs, connecting job opportunities with applicants, and also providing other services to these applicants.

This organization, called NE-VEST, is an extension of the program developed by the American Institute of Aeronautics and Astronautics under a Labor Department contract to bring into specific areas of high unemployment a concentration of effort on behalf of the unemployed professional.

The name NE-VEST, which stands for New England Volunteer Engineers, Scientists, and Technicians, is a bit of a misnomer since the geographic area covered is largely the greater Boston area, and the fact that we do not limit ourselves to engineers, scientists, and technicians but operate by and for all professionals out of work or who are underemployed.

In my position as director of NE-VEST, which has offices in 128 Professional Service Centers, I have come in contact with a broad range of unemployed professional people and have a direct view of the job picture.

I would like to relate to you some of the environment in which the unemployed professional finds himself. Incidentally, throughout my testimony, I shall be relating to unemployed and underemployed. Unless I specifically make reference to those who are underemployed, my use of the word unemployed may be taken to mean both.

Since the larger part of the unemployment numbers in the past year or so, have been produced by broadly based cutbacks in personnel; that is to say, people lost their jobs through no direct fault of their own, any general description of the spectrum of unemployed people is similar to those who are presently employed in the professional areas, including their training, their talens, and their idiosyncrasies.

There is one possible exception, however. There appears to be a discernable shift toward higher unemployment among those with greater experience. This problem has been addressed in some detail by Mr. Robert Fraser. Otherwise, there seems to be little support for those Social Darwinists who claim that the large part of those who cannot get jobs these days are of lower caliber, unable to present themselves properly or otherwise deserving of further degradation of themselves and their economic status.

Without regard to the methods used to locate professional level jobs, the unemployed will characteristically find few openings. I would like to emphasize that the individual under consideration has most likely established a middle- to upper-middle-class life style with the social

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responsibilities, and other factors which contributed to the general economy.

If this representative unemployed professional is then unable or unwilling to subsist on unemployment insurance, welfare or similar programs, he frequently attempts to secure a lower level job, thereby becoming underemployed, which wastes his talents, demoralizes himself and his family, and provides perhaps one-third to one-half of his former income.

It is of interest to note that given these apparently fortunate circumstances of underemployment, this professional is greatly restricted in the effective pursuit of a professional level position, or the development and nurturing of an idea upon which a new busines may be founded, or in a redirection of his talents to accommodate a new career. If a particular family is lucky, the wife may find a supplementary full-time job at some undetermined cost to personal and family stability.

This kind of disruption to the emotional and economic states of the individual has also resulted in increased demand for social services, such as family counseling and mental health centers. An increased burden is also placed on public health facilities.

There are enormous stresses placed on a family which has lost its economic support. In particular, a wife who has not used her vocational skills for years, may now be called upon to be the sole or partial support. I know of one wife who has had a serious mental breakdown a few months after assuming such responsibility following her husband's sudden loss of his job.

Another result is a family role reversal where the husband stays home, cooks, cleans, et cetera, while the wife is out working. While there may not be anything intrinsically wrong with this, you could hardly deny the domestic shock produced by the sudden loss of a professional salary.

It is evident that people who could be supported by a loan commensurate with their former salaries are then free to redirect their career goals if that seems appropriate, or in other cases, they are able to devote their energies toward new product development, which in turn may mean new enterprise or expansion of existing businesses.

In regard to retraining and skills conversion, I would like to urge caution in the establishment of such programs. It is waste to reorient or retrain people for jobs which do not exist; it is waste to fund such jobs which are not opened because of the poor use and direction of those funds. Specifically, the Departments of Housing and Urban Development, and Labor recently ran a program to orient about 380 technical professionals to urban problems. The program began with virtual assurance of a job for every participant. Few jobs were actually forthcoming because Federal funds were not available to the cities and towns.

The Emergency Employment Act subsequently provided some of that money, but as it seems at present, those responsible in the cities and towns were neglected in being oriented to the personnel thus made available.

A widespread characteristic I have found among the unemployed professionals is their high activity level, even though they may not have formal jobs to report to. They are searching for jobs, searching for business opportunities, self-help participation, even some political