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decade. Clerical employment rose by one-half million in 1967, after increasing by 700,000 in 1966. These two occupational groups have provided most of the employment growth throughout the post-World War II period.
Service workers increased by 100,000-roughly one-third the size of the gain in 1966. Employment among private household workers fell by 130,000 in 1967, continuing the decline begun in 1965 when alternate employment opportunities first began to improve substantially. Private household employment increased moderately throughout the 1947-to-1961 period and between 1961 and 1964 showed no growth. Employment among other service workers rose by 250,000 in 1967.
The level of unemployment in 1967 averaged 3.0 million, 100,000 more than in 1966. Teenagers accounted for 28 percent of the total unemployed, while adult men and women contributed equal amounts (roughly 35 percent each). With the exception of 1966, unemployment in 1967 was at its lowest level since 1957. Because of large labor force growth, the national rate of unemployment was unchanged from 1966. At 3.8 percent in 1966 and in 1967, it was at the lowest point since 1953. Jobless rates for adult men (2.3 percent) and teenagers (12.9 percent) were not significantly changed from 1966, while the rate for adult women edged up from 3.8 to 4.2 percent.
The quarterly unemployment rate (seasonally adjusted) moved up steadily during the year, however, increasing by 0.1 percentage point during each quarter of 1967. By the fourth quarter the rate averaged 4.0 percent, its highest point since late 1965. The rise in the jobless rate was mainly attributable to faster growth in the labor force than in employment opportunities. The labor force rose by 1.8 million from late 1966 to late 1967, compared with a 1.6 million increase over a similar 1965-1966 period.
A gradual increase in the unemployment rate during most of the year also characterized some labor force groups concentrated in the goods
producing sector. Persistent upward movements were noticeable among blue-collar workers (4.1 in the first quarter to 4.6 percent in the fourth quarter), semiskilled workers (4.7 to 5.1 percent), full-time workers (3.1 to 3.6 percent), and manufacturing workers (3.4 to 3.7 percent). The gradual upward movement in jobless rates for these groups, however, appeared to have halted in late 1967 as the economic pace began to quicken.
Long-term unemployment. The 450,000 longterm unemployed in 1967 represented only 0.6 percent of the civilian labor force. The slowdown in the economy's growth rate dampened the reduction in hard cord unemployment. Although there was a decline in the number of workers unemployed for 15 weeks or more, the decline reflected mainly an improvement in the precision of the measurement.
For the third consecutive year, over one-half of the unemployed had been looking for work for less than 5 weeks. These short-term unemployed workers represented 55 percent of the total unemployed in 1967, the same proportion as in 1966 and the highest percentage since 1953. However, those with an intermediate length of unemployment (5-14 weeks) increased over the 1966 level, from 28.0 percent ot 30.0 percent in 1967.
Negro Workers 2/
Between 1966 and 1967, negro employment rose by 150,000 to 8.0 million. The gain was the smallest since 1963. The number of unemployed Negroes in 1967 totaled 625,000, about the same as in 1966. Roughly 40 percent of these unemployed Negroes lived in the Nation's 15 largest metropolitan areas in 1967.
The Negro unemployment rate, at 7.4 percent in 1967, was not changed significantly from 1966, when the rate fell to its lowest point since the
2/ Statistics for nonwhite workers are used here to measure the employment of Negro workers. Negroes comprise about 92 percent of all nonwhites in the United States.
rate fluctuated widely but remained about double the white rate.
The jobless rate for Negro men fell to 4.3 percent for the year, down 0.6 percentage point from 1966. The unemployment rate for Negro women, at 7.1 percent in 1967, was up 0.5 percent over the year, although some of this increase was due to definitional changes in employment and unemployment.
Despite genuine attempts to combat the problem of unemployment among Negro teenagers, their jobless rate, at 26.5 percent, remained distressingly high in 1967. The jobless rate for white 16-19 year-olds has declined steadily--from 14.8 percent in 1964 to 11.0 percent in 1967. For Negro teenagers, however, the jobless rate has remained high and steady (between 25 and 27 percent) for the past 4 years. Correspondingly, the gap between the two groups' unemployment rates seems to be widening. In 1964 the Negro teenage rate was slightly less than twice the white rate (1.8:1). In 1965 the Negro teenage rate was double the white rate, and, by 1966, 2.3 times as high. In 1967 the rate for Negro teenagers was 2.4 times as high as that for white teenagers.
The teenage job situation in 1967 showed no improvement over the year. Their rate of unemployment was not significantly changed at 12.9 percent in 1967, nor were their levels of employment and unemployment.
After entering the labor force in unprecedented numbers in 1965 and 1966, the teenage labor force (aged 16 to 19) showed little change in 1967. This development was the result of the movement of the large number of post-World War II babies from the 19 year age group into the 20 year age group. The labor force of 16 to 17 year-olds rose by 70,0000; the number of 18 to 19 year-olds in the labor force declined by 100,000. Among the 18 to 19 year-olds, boys accounted for all of the decline.
Despite the strong economic expansion of recent years, teenage unemployment has worsened steadily relative to total unemployment. Between 1962 and 1967, the teenage jobless rate increased rom 2.7 times the national average to 3.4 times the national average.
A third of the Nation's jobless workers-and an even higher proportion of all unemployed nonwhites--live in the 15 largest metropolitan areas. In the first 9 months of 1967, these 15 areas accounted for 31 percent of total U.S. unemployment and nearly 40 percent of the nonwhite jobless total, proportions about equal to these areas' share of the population. The unemployment rate for all 15 areas combined was 4.1 percent, about the same as the national rate. Rates for individual areas ranged from 2.3 percent in Washington, D.C., to 5.8 percent in San Francisco-Oakland. 1/
These are some of the findings from a Bureau of Labor Statistics' study of the unemployment situation in large metropolitan areas, undertaken in light of the growing concern over urban problems. It provides new information on the job situation in local areas, particularly for nonwhite workers. The first phase of the study covers the 15 largest Standard Metropolitan Statistical Areas (SMSA's) and the central cities of nine of these SMSA's. 2/A more comprehen
* Of the Division of Employment and Unemployment Analysis.
1/ None of the unemployment rates discussed in this report are seasonally adjusted. Since rates and levels for individual areas are based on small samples, they are subject to large standard errors of estimate. Chances are 9 out of 10 that the unemployment rate from a complete census would fall within the range indicated in the accompanying tables.
2/ SMSA's consist of large cities and their adjacent suburban counties. Central cities are the political entities at the center of each SMSA. For example, the central city of the New York SMSA consists of the five boroughs of New York City; in the Washington SMSA it is the entire District of Columbia.
by Paul O. Flaim*
sive report, to be published in the spring of 1968, will provide detailed data based on 1967 annual averages.
Unemployment in the 15 SMSA's studied totaled about 950,000 persons. The two largest areas, New York and Los Angeles-Long Beach, each had approximately 180,000 unemployed workers; together, these two areas accounted for 12 percent of the U.S. jobless. In Chicago, Philadelphia, Detroit, and San Francisco-Oakland, unemployment levels were between 70,000 and 90,000; in Baltimore, Boston, Cleveland, Newark, Pittsburgh, and St. Louis, between 25,000 to 50,000; and in Houston, Minneapolis-St. Paul, and Washington, between 15,000 and 25,000.
In Los Angeles-Long Beach, Detroit, San Francisco-Oakland, Pittsburgh, St. Louis, and Newark, unemployment rates exceeded the national average (4.0 percent) by 0.5 percentage point or more. Rates in San Francisco-Oakland and Los Angeles-Long Beach were substantially above those in the other areas studied. In New York, Philadelphia, Cleveland, and Baltimore, unemployment rates were close to the national rate. The five remaining SMSA's had jobless rates well below the national average--ranging from about 2-1/2 percent in Washington, D.C., and Minneapolis-St. Paul to around 3 percent in Boston, Houston, and Chicago.
Unemployment Rates by Color
Nonwhite workers accounted for only 14 percent of the civilian labor force in the 15 SMSA's, but represented about 27 percent of the total unemployment. At 7.7 percent, the nonwhite unemployment rate for the 15 SMSA's combined was more than twice as high as the rate for whites (3.5 percent). About the same relationship holds between the nonwhite and white unemployment rates nationally.
Total, 15 areas..
1/ Rounded to nearest 50,000. Individual items may not add to totals due to independent rounding.
2/ Based on 1960 definitions; includes Standard Metropolitan Statistical Areas (SMSA's) where 1967 civilian noninstitutional population, 16 years of age and over, was 1 million or more.
3/ Less than 75,000.
4/ Includes nonwhites in areas not shown separately.