V. Development and dissemination of labor market information:

A. Research and data collection:

1. Secretary of Labor should take the lead in clarifying the assignment of responsibility for collecting labor market information within the Department of Labor and by other Government agencies.

2. Employment Service should collect and analyze manpower information required for the efficient functioning of the Service and for administration of Federal programs dealing with manpower development and utilization.

3. Employment Service should be recognized as a major source for the development of information for occupation guidance, testing and employment counseling.

4. Employment Service should engage in research which would facilitate manpower and labor force adjustments to automation and changing technology.

5. Director of the National Employment Service should be given legislative authority to contract out research with universities and other institutions.

6. Employment Service should be given legislative authority to collect information from the Federal Government on job openings in governmental agencies.

7. Employment Service should work closely with employers, especially defense contractors, to obtain specific information on their job openings and to obtain advance notice of mass layoffs in order to facilitate workers' job adjustments.

8. Employment Service should make better use of data on job openings now available as a result of normal operations.

B. The dissemination of information:

1. Vigorous measures must be adopted to insure that labor market information is widely and meaningfully disseminated to other public and private organizations with an interest in labor market trends and behavior.

2. Each large office should have a labor market information officer. In smaller offices the functions of the labor market information officer would be assigned as a collateral duty to staff members.

VI. The interarea recruitment procedure:

A. Multimarket clearance centers should be established throughout the Federal-State system and the centers themselves coordinated on a national basis. These centers would improve the operation of the interarea recruitment procedure and the flow of job information.

B. The Secretary of Labor should appoint a committee to study and recommend the use of information technology in interarea recruitment. This committee should decide on a regional trial application of automatic data processing, to be thoroughly tested and operated, before establishing an elaborate system. The existing Lines (labor inventory communications system) provides a basic unit from which to start.

VII. Administering and financing the service:

A. The budget process and financing:

1. The budget process should emphasize the programs to be undertaken and careful methods of evaluation and review.

2. The Employment Service should be financed from both the Federal unemployment tax and general revenue. The cost of administering the work test aspects by the Employment Service should come from the Federal unemployment tax fund and the cost of the other manpower service from general tax revenues.

B. Emergency planning:

1. The Employment Service should take the necessary steps to develop plans and techniques for handling emergency situations in the labor market, e.g. mass layoffs, plant closings and unrest stemming from chronic unemployment.

2. An adequately financed emergency planning unit should be established within the U.S. Employment Service to plan for such emergencies. C. A separate national advisory and review committee should be established for the U.S. Employment Service and specific functions assigned to it. Members would be appointed for 4-year terms by the Secretary of Labor. The committee would have a full-time staff director, adequate secretarial assistance and a separate budget.

D. State advisory and review committees should be established in each State. Their functions would parallel those of the national committee and the members would be appointed by the Governor. The State committee would file an annual report on the overall assessment of the State employment service.

E. Annual reports:

1. The Director of the U.S. Employment Service should be required to file an annual report at the end of the fiscal year to the Secretary of Labor. This report will contain an analysis of both the manpower services provided and its internal operations; i.e., resources made available and their utilization.

2. The State employment service director should be required to file a similar report to the Governor and to the National Director of the U.S. Employment Service. This report should take the form of a State annual manpower report.

IMPORTATION OF FOREIGN FARM LABOR

Mr. FOGARTY. Do you plan any basic change in policy with regard to the importation of farm labor from those in effect during the last growing and harvesting season?

Secretary WIRTZ. None.

Mr. FOGARTY. You will stick by your guns?

Secretary WIRTZ. Yes, sir.

Mr. FOGARTY. Good for you.

HUMAN RESOURCES DEVELOPMENT PROGRAM

There was a story in the New York Times last November that started out:

Secretary of Labor W. Willard Wirtz suggested today a new program to find jobs for the million Americans who he said made up the Nation's hard core unemployed.

What has happened to that program?

Secretary WIRTZ. I am not sure which one that was. That was last November?

Mr. FOGARTY. Yes.

Secretary WIRTZ. I think that was the human resources development program.

Mr. FOGARTY. Is this the same sort of thing proposed by the Nelson amendment to the Economic Opportunity Act? Secretary WIRTZ. No, sir.

Mr. FOGARTY. No connection at all?

Secretary WIRTZ. No, sir. That is what we call the human resources development program, and it is working, I think, quite well. What it comes down to, it is our complete belief that the hardest unemployment problems we have left we have to approach on a personby-person basis.

Mr. FOGARTY. If you want to expand on this, why do you not do it for the record.

Secretary WIRTZ. All right.

(The following was submitted for the record:)

THE HUMAN RESOURCES DEVELOPMENT PROGRAM

The human resources development program was suggested by the Secretary of Labor in a speech in Chicago, Ill., on November 3, 1965, as a part of the campaign to achieve full employment. The program involves a case-by-case approach to

solving employment problems of the hard-core unemployed in specific communities. This approach calls for two main thrusts.

(1) Searching out and registering unemployed persons, finding out their capabilities, and providing needed services and assistance, including training for employment. Emphasis will be on the most disadvantaged of the unemployed, including heads of families on public assistance, military rejectees (both volunteers and selectees), school dropouts and releasees from correctional institutions.

(2) Launching a major job development program through which industry will provide job opportunities for these unemployed, either through federally assisted programs or under their own auspices, in a manner similar to the job openings created this past summer under the youth opportunity campaign.

The first step in carrying out such a program is the determination of characteristics of the unemployment problem in a given area and an evaluation of the resources in that area available to meet the problem. A careful analysis must be made on the magnitude and nature of local employment problems and on the education income and other characteristics of the workers who live within the target area.

It will be necessary to ascertain the extent of unemployment services and employment-related services now being provided in the designated areas and the problems encountered in providing these services. Training and orientation must be provided for community agency staff members and volunteers. Operating procedures involving neighborhood centers, churches, and minority group organizations must be developed to identify and reach those hard-core unemployed in the area.

Once identified and contacted an assessment of the needs and capabilities of each enrollee must be made and assistance given him in developing a plan of action which may involve

(a) Referral to a specific job.

(b) Basic education, to help prepare for employment or remedial help to prepare to return to school.

(c) Referral of individuals on public assistance to the community work and training program.

(d) Referral to the Job Corps or Neighborhood Youth Corps.

(e) Placement in an appropriate Manpower Development and Training Act institutional training program.

(f) On-the-job training or apprenticeship, to include, where needed, preemployment orientation training or remedial education to help prepare him to qualify for admittance to an apprenticeship program.

The second major thrust is the development of employment opportunities. Finding and servicing the unemployed must be matched by a carefully planned, timed, and coordinated program of job solicitation and development. The program may include the following items:

(1) A Committee on Job Development designed to aid in identifying job vacancies, potential employment, and training opportunities, in reducing unrealistic hiring requirements and in the stimulation of the creation of as many new jobs as possible. This committee would include representation of companies, labor unions, and employer associations.

(2) Publicity to encourage employers to promote job development and to arouse public support.

(3) A massive campaign under the leadership of the State employment service utilizing all available resources to promote job development. Since many disadvantaged workers are not ready for immediate employment, training programs will be needed to prepare them for jobs. Therefore, an important aspect of the human resources development program will be the extension of training opportunities based on needs of enrollees and available jobs through:

(1) Review of existing training opportunities in ongoing or approved training programs.

(2) Initiation of new training programs to meet specific needs revealed by job openings inventories.

RELATIONS BETWEEN THE DEPARTMENT OF LABOR AND THE OFFICE OF ECONOMIC OPPORTUNITY

Mr. FOGARTY. Are you still speaking to Mr. Shriver?

Secretary WIRTZ. Yes, sir.

Mr. FOGARTY. You are getting along all right?

Secretary WIRTZ. Very well.

Mr. FOGARTY. Do you think they are allocating a fair proportion of the OEO funds to the Neighborhood Youth Corps?

Secretary WIRTZ. We will always try to get more for the Neighborhood Youth Corps. They have added in the budget $40 million to the $259 million that was there. On balance that is all right, but we will continue to push the neighborhood youth program.

Mr. FOGARTY. Last year we gave them $4 million more than they requested.

Secretary WIRTZ. I know, and it has been most helpful.

Mr. FOGARTY. Because we thought the program was good. And I think it is still good.

In case of a disagreement between you and Mr. Shriver on the allocation of funds, who makes the final decision, you, Mr. Shriver, the Bureau of the Budget, or someone at the White House?

Secretary WIRTZ. We have not run into that problem.
Mr. FOGARTY. You may run into it.

Secretary WIRTZ. Yes, sir. Under the statute the authority is in the Office of Economic Opportunity and that would control.

EXPERIMENTAL JOB CLINICS

Mr. FOGARTY. Last December 23, the Baltimore Sun carried an article about a $100,000 grant for experimental job clinics. Apparently this was in addition to funds made available earlier, since the article said the clinics had been in operation for 8 months. Is this a part of a national program or a special program for Baltimore?

Secretary WIRTZ. I know about it in general but not in detail. Mr. FOGARTY. Will you give us an answer for the record? Secretary WIRTZ. Yes.

(The following was submitted for the record :)

PROPOSED EXPERIMENTAL AND DEMONSTRATION PROJECT WITH THE HEALTH AND

WELFARE COUNCIL OF BALTIMORE, INC.

The project described in the December 23, 1965, issue of the Baltimore Sun is a proposed experimental and demonstration project with the Health and Welfare Council of the Baltimore Area, Inc. The objective of this project is to show what can be expected of an intensive program of group and individual counseling augmented by a job development program designed to encourage placement of the so-called marginal worker defined as the jobseeker whose record of employment is either too spotty or modest to warrant ready employment under "normal" labor market conditions. It will include a system of intensive followup to individuals yho report that they continue to remain unemployed subsequent to their participation in the counseling program.

A minimum of 1,200 workers would be counseled under the terms of this contract. The total estimated cost of the contract is $108,000.

STATUS OF PLANS FOR NEW BUILDING

Mr. FOGARTY. What is the status of plans for your new building in the District of Columbia?

Secretary WIRTZ. I am not sure about the exact detail. There is an item in the GSA budget which is now being transmitted to Congress to cover that building.

Mr. FOGARTY. I thought they put it in last year. I spoke to Mr. Thomas in favor of it.

Mr. WERTS. They had the site and planning money last year and this year it is the construction money.

Mr. FOGARTY. I remember I talked to Mr. Thomas about it last year. Secretary WIRTZ. We are quite encouraged about that prospect.

ADEQUACY OF BUDGET REQUEST

Mr. FOGARTY. That is good.

Do you think you are asking for enough in your budget this year? Do you think you could use more money?

Secretary WIRTZ. I think that under the circumstances we are asking for enough.

Mr. FOGARTY. You are satisfied?

Secretary WIRTZ. Yes, sir.

Mr. FOGARTY. Do you think we can cut anywhere? There must be some area we can cut if you are satisfied. Where is some of the lard in this budget?

Secretary WIRTZ. We have gone through it time after time after time.

Mr. FOGARTY. You are satisfied with the amount so there must be some areas you can afford to give a little bit.

Secretary WIRTZ. I respect the question but, Mr. Chairman and members of the committee, we have gone over each item of this budget. If there had to be any further cut, it is our conclusion it almost necessarily would have to come out of the manpower training programs.

Mr. FOGARTY. I think you could use a lot more money than you are asking for. I think this is a very conservative budget. You are a conservative person anyway and you always have been. But I always ask both questions, if you can use more or, if not, where we

can cut.

I think you have done a real good job today, Mr. Secretary.
Secretary WIRTZ. Thank you.

Mr. FOGARTY. And I am sorry about last year. I did not know you had come here with no sleep and I want that on the record. Secretary WIRTZ. Much obliged.

Mr. FOGARTY. Mr. Denton.

Mr. DENTON. I also want to say you have made an excellent statement. Since I have been on this committee we have had four Secretaries of Labor. I think they were all excellent officials and extremely able, but, like the chairman, I would rate you as the most able of the group.

Secretary WIRTZ. Thank you.

POPULARITY OF NEIGHBORHOOOD YOUTH CORPS

Mr. DENTON. In my district the Neighborhood Youth Corps is extremely popular, also the Manpower Training Act. Of course it was a pilot program in my district.