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gain in production jobs in 1967. The increase in nonproduction jobs also was concentrated in the durable goods industries, specifically machinery, electrical equipment, transportation equipment, and instruments industries. The printing and chemical industries in the nondurable sector accounted for a combined pickup of 40,000 jobs.

During the course of the year, production worker employment in the durable goods and nondurable goods industries exhibited different reaction patterns. Employment of production workers in nondurable goods. declined more than 60,000 in the first half of the year, but in the second half the se losses were recovered. In the durable goods industries, on the other hand, the production worker job loss totaled nearly one-quarter of a million in the first half, and in the second half only about one-third of the se jobs were recovered.

On the whole, the economic pause in 1967 temporarily curtailed employment growth among production workers. However, employers continued to require additional workers for their clerical, administrative, and supervisory needs.

Full-Time vs. Part-Time Employment. In recent years nearly all of the jobs created in manufacturing were full-time jobs. In 1967, however, only 70 percent of the new jobs were for full-time workers. Furthermore, it is quite possible that the relatively small number of full-time jobs created went to nonproduction workers.

Another indicator of the weaker manufacturing employment picture was the rise

Industry

Total Manufacturing......

Durable Goods....

Table 2. Manufacturing Wage and Salary Workers on Economic Part Time

(in thousands)

Nondurable Goods..

1967

523

233

291

in the number of manufacturing workers confined to part-time work due to economic reasons (slack work, inability to find fulltime jobs, etc.). From Table 2 it can be seen that workers employed 35 hours or less due to economic reasons rose by 150,000 to slightly more than half a million, the highest level in manufacturing since the start of the present expansion.

Confinement to economic part-time work in 1967 was a problem unique to manufacturing workers, because nearly all of the increase in the number of economic parttime workers in 1967 was recorded in this sector.

Occupations. The less favorable employment situation for production workers in 1967 was reflected in two other ways; first, the available jobs in manufacturing were generally for those workers having the most skills, and second, blue-collar employment in manufacturing increased by its smallest amount since the 1962-63 period.

Typically, not all occupations are affected to the same degree when economic activity slackens. In 1967, the most skilled workers--professional, managerial, clerical, skilled blue-collar workers--accounted for most of the employment gain. The demand for these workers continued strong, although not as strong as in the past few years. Employment growth among semiskilled blue-collar workers was negligible in 1967, compared with gains of nearly half a million in 1965 and 1966. Unskilled workers also found few job opportunities in manufacturing.

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As a result of the generally weaker demand for production workers having few skills, the resurgence in total blue-collar employment, which had paralleled the sustained expansion in manufacturing production during the past several years halted in 1967.

Female vs. Male Employment. Because the entire increase in manufacturing employment occurred among nonproduction workers, the relatively small manufacturing employment gain in 1967 was concentrated among women. Of the 150,000 increase in total manufacturing employment, threefourths occurred among women. In previous years of the expansion, when employers were augmenting their production work force, men accounted for most of the new workers in manufacturing.

As they did in 1966, women entered the labor force in large numbers in 1967 (close to a million in each year). In 1966, many apparently found jobs in manufacturing, but a year later, only a small number did so. It is probable that many of these women found jobs in 1967 performing the clerical and administrative tasks accompanying the operation of the Nation's plants and factories.

Economic losses of Manufacturing Workers

In addition to the small employment gain in 1967 due to the economic pause, the existing manufacturing workers on the job were

Year

1967

1966

1965

Table 3. Job Increases in Manufacturing by Sex

(in thousands)

1964

1963

Total

was

153

1,124

788

279

142

Men

40

686

557

224

134

subject to: (1) greater possibilities of temporary job loss due to layoffs and industrial disputes; (2) a shorter workweek and fewer overtime hours; and (3) slower growth in weekly earnings relative to nonmanufacturing workers.

Joblessness. The weaker market for manufacturing wage and salary workers in 1967 resulted in a 125,000 increase in their unemployment level. The 780,000 unemployed in 1967 was the highest level since 1961. Roughly 80 percent of the increase in unemployment occurred am mong full-time workers. Manufacturing workers accounted for most of the 100,000 increase in the level of national unemployment in 1967 (table 4).

The unemployment rate for workers whose last job was in manufacturing averaged 3.7 percent in 1967, up from 3.2 percent in 1966. During the course of the current expansion, the jobless rate in manufacturing had fallen dramatically and by November 1966 it had reached its lowest point in nearly 15 years (2.8 percent, seasonally adjusted). By January 1967, however, unemployment in manufacturing had moved up to 3.3 percent and thereafter continued to rise, reaching 4.0 percent in the the third quarter. In the fourth quarter as manufacturing activity picked up, the jobless rate declined, averaging 3.7 percent.

The major thrust of the rise in manufacturing unemployment was concentrated in the durable goods industries, the jobless

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Table 4. Changes in the Level of Unemployment by Industry, 1966 to 1967

(in thousands)

Industry

Total unemployment

Private wage and salary

Mining

Construction

Manufacturing

Transportation and public utilities

Trade

Finance industries

Service industries

Agricultural wage and salary All other classes of workers previous work experience

rate rising from 2.8 to 3.4 percent between 1966 and 1967. The major metal-using and metal-producing industries accounted for roughly 60 percent of the increase in manufacturing unemployment. The increase in joblessness in the nondurable goods industries was not as serious as in the durable goods industries. Their unemployment rate moved up from 3.8 percent to 4.1 percent between 1966 and 1967.

Manufacturers were more inclined to lay off women when adjusting employment to production schedules. Female workers constituted 65 percent of the total increase in manufacturing unemployment over the year. Women represented slightly more than half of the increase in the durable goods industries and all of the increase in nondurables. Unemployment rates in most of the detailed durable and nondurable goods industries showed greater increases for females than males.

The proportion of manufacturing workers unemployed for short terms (less than 5 weeks) and intermediate terms (5 to 14 weeks) rose over the year from 80.7 to 82.8 percent. Long-term unemployment (15 weeks and over), on the other hand, was little changed from 1966. Most of the increase in short-term and intermediate-term unemployment occurred in the durable goods

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Shorter Workweeks. Throughout the expansion of the 1960's, the factory workweek had been moving up and by 1966 had reached its highest level since World War II. In 1967 manufacturers thus were able to adjust production schedules to faltering demand by reducing hours rather than reverting to mass layoffs of production workers who were in short supply only a year previous. As a result, average weekly hours fell from 41.3 in 1966 to 40.6 in 1967, including one-half less of premium overtime hours. Although this represented the largest drop in factory hours in nearly 15 years, in 1967 the level continued to be at one of its highest points in the post-World War II period.

The factory workweek first began to decline in the latter part of 1966. Hours averaged 41.4 (seasonally adjusted) in September 1966 and, by the beginning of 1967, they had fallen to 41.0. By mid-year, the factory workweek was down to 40.3 hours. All of the durable and most of the nondurable goods industries had lower hours in June than in January. The primary metals, fabricated

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