Many problems that arise will be local in nature and must be solved by local action. National policies for manpower mobilization were defined by the President in a directive issued to all agencies on January 17.

THE NEEDS WILL BE MET BY VOLUNTARY ACTIONS

All of the foreseeable manpower needs for defense production can be met without using compulsory measures. The desirability of a free choice of his job on the part of each worker was reaffirmed in the President's national manpower mobilization policy. The agencies participating in programs for manpower utilization will carry out this policy.

PROVISION OF MANPOWER FOR THE ARMED FORCES

Since the beginning of the Korean conflict, the Armed Forces have been expanded by more than 1.4 million men. Compared to fewer than 1.5 million last June, present strength is more than 2.9 million-two-thirds of the increase needed to meet the goal of about 3.5 million. This has been accomplished through an intensified recruitment program, recall of reserves and mobilization of National Guard units, and a revival of inductions through selective service. In order to provide an adequate pool of manpower to meet the future needs of the Armed Forces, as well as to make provision for a long-range program of universal military training and service, the Senate has passed legislation which provides for lowering the draft age to 18, and extending the period of service from 21 to 24 months. The legislation is pending in the House of Representatives.

Occupational deferment.-Certain occupational skills which are critical to the maintenance of defense production and essential civilian services have been identified in order that men possessing them may be called into the Armed Forces only to the extent that their skills are actually needed in military service. These skills are contained in a "List of Critical Occupations" which, along with a "List of Essential Activities," was prepared by the Departments of Commerce and Labor. The lists are used by the Department of Defense in determining who should be deferred in calling reserves to active duty. The Selective Service System has also distributed these lists to their local boards for their information in considering requests for occupational deferment.

The Selective Service Act was amended on September 9 to authorize the special registration, classification, and induction of certain medical, dental, and allied specialists under 50 years of age. Although the registration is complete, sufficient volunteers have made unnecessary so far any involuntary inductions under the "doctor draft."

Student deferment.-Since the present critical world situation may last for many years, we must not deplete one of our principal assets-our highly trained personnel in many specialized fields. Enough engineers, scientists, doctors, and other specialists must continue to flow out of our colleges for replacements and to meet the increasing demands of our complex modern society.

To meet this need, a sufficient number of students will have to have their service in the Armed Forces postponed and be allowed to continue with their college education. Financial assistance should be provided for exceptionally qualified students unable to pay their own way. Specific plans for this purpose are now under consideration by the executive agencies and the Congress.

DEFENSE PRODUCTION WILL REQUIRE 3 TO 4 MILLION MORE WORKERS

To meet our defense production goals, the portion of the labor force engaged directly or indirectly in defense production will have to be increased by 3 to 4 million workers in 1951.

Part of this requirement may be met by a shift of workers from nondefense to defense production. However, in order to meet the requirements fully, and at the same time maintain nondefense production as fully as possible we need to add a large number of persons to the present working force as a whole.

Such an increase to the working force is feasible, despite the fact that the number of employed workers is now at record heights.

By February 1951 we had 61,300,000 men and women in our civilian work force. Of these, 58,900,000 were employed-the largest number ever at work in February. Unemployment was down to 2,400,000, compared with the 4,700,000 unemployed in February 1950.

The rise in employment in defense production has thus far been moderate, largely because of the length of time it takes to translate defense plans and appropriations into actual production and jobs. The initial employment increases occurred chiefly in industries already engaged in production of munitions and related items, such as aircraft and ordnance. With the building, expansion, or reactivation of defense plants, sharp employment gains also occurred in the machinery and related metal-working industries, as well as in industrial construction. Increased procurement of civilian-type goods, such as food and clothing items, for the growing Military Establishment also contributed to an expanding demand for workers

However, during this initial phase of the defense program, employment on defense orders has been very largely superimposed on the continuing high volume of goods produced for the civilian economy. The major part of the employment impact of the defense program upon civilian industries still lies ahead.

Expansion in both civilian and defense production has led to a general tightening of the labor supply. As shown on the map on page 27, in January, 38 of the 151 major industrial centers of the country reported unemployment at less than, 3 percent of the labor force, compared to 19 centers in July 1950. In an additional 68 of the major centers, unemployment was down to between 3 and 5 percent in January. Since then, further drops in unemployment have resulted in a further tightening in most of the major labor markets of the country. Local shortages are particularly severe in some occupations. Demand has exceeded supply in some localities for engineers and draftsmen and for certain of the skilled metal-working occupations, such as machinists, tool and die makers, aircraft assembly workers, and pattern and model workers. In a few localities, recruitment problems have extended even to semiskilled occupations. While troublesome in some areas, these labor shortages have not yet significantly retarded defense production.

The major sources of the 3 to 4 million new defense workers will be:

Transfer from nondefense activities.-Much of the need for defense workers' will be met by the transfer of workers from civilian activities. Many will shift without leaving their present job stations as their establishments convert to defense production.

Reduction of unemployment.-Although the number of unemployed workers is already relatively low, we can expect a further movement of unemployed workers into jobs as defense production accelerates.

Addition of new workers.-In recent years our labor force has grown at an average rate of nearly 1 million annually, due mainly to the growth in the population of working age and to the increasing employment of women. This growth will be less in the years immediately ahead because of the increased requirements for military service.

As shown in the accompanying chart, about 38 million persons of working age and not in school are not in the labor force. Of these, 5 million were men and 33 million were women. Important reserves of manpower are available among housewives with grown children, older persons near the conventional retirement age, and the handicapped. If industry adapts its hiring practices and job standards to utilize these sources of manpower, we can add an additional million workers or more from these sources this year.

Increased hours of work.-For each hour of overtime added to the workweek in manufacturing establishments, we would gain the production equivalent of almost 350,000 new workers. The workweek in manufacturing industries averaged about 41 hours in February 1951. Many workers are still employed less

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than 40 hours, although some workweeks as high as 48 hours are in effect. For example, in December a majority of workers in machine tools and copper-mining industries were already on scheduled workweeks of 48 hours or more. The 41-hour average compares to a peak of 451⁄2 hours in World War II when many industries were on a 48-hour schedule.

There are, of course, difinite limits to the extent to which production can be increased by increasing overtime. Absenteeism and declines in efficiency begin to cut in heavily after about 48 hours a week is reached.

THE EMPLOYMENT SERVICES ARE GIVING PRIORITY TO DEFENSE

United States Employment Service and the affiliated State employment services are already proving of invaluable assistance to employers and workers in the orderly filling of defense jobs. Preferential service is being extended to employers with defense contracts or in activities which the Government is encouraging to expand.

With agricultural production goals set higher than ever before, there will be an increased demand for farm workers at a time when inductions into the Armed Forces and the attractions of defense jobs will reduce the supply of farm workers. The farm-placement service of the public employment system has accordingly expanded and intensified its recruitment program.

The President's national manpower policy calls for full use of domestic manpower resources before foreign workers are brought in. The domestic supply of certain tpyes of harvest labor, however, has never been entirely adequate since World War II, and arrangements are now being made for the increased numbers of foreign workers who will be required as the manpower situation tightens.

WHERE POSSIBLE, THE WORK WILL BE BROUGHT TO THE WORKER

The large-scale migration of workers during World War II led to congestion and overtaxed housing, health, educational and other community facilities, and services in many localities. To avoid these consequences in the current program, the Government agencies concerned are taking steps to see that the labor supply in nonshortage areas will be used as fully as possible before additional jobs are created in areas of labor shortage. The Secretary of Defense on December 17 directed the military Departments to pay particular attention to the availability of manpower, in letting defense contracts.

In addition, every private employer is urged to follow the same policy in the placement of subcontracts, in the ordering of materials, and in the securing of services. Particularly, every employer should utilize local labor supplies to the utmost before undertaking out-of-area recruitment. Where the local labor supply is inadequate, workers can be recruited from other areas in the States or from areas outside the State through the clearance system of the public employment service.

The movement of workers from jobs in less essential industries or services to defense plants should be encouraged, but "pirating" of workers by one defense plant from another should be avoided.

Movement of workers into defense industries will be impeded unless reemployment rights of transferred workers can be preserved and their seniority, pension, and isurance rights protected. Labor, management, and Government groups are working to formulate solutions.

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