DOCUMENT RESUME

ED 021 978 VT 003 903

Py- Earl, Lewis Fs.; And Others ,

MAWOWER POLICY AND.PROGRAMS IN FIVE WESTERN,ELROPEAN COUNTRIES: FRANCE, GREAT -BRITAit8 THE

NETHERLANDS, SWEDEN:AND WEST GERMANY. MANPOWER RESEARCH BULLETIN NtfilBER -11.

Office of Manpower Policy, Eviluation and Research (DOL), Washington D.C.

Pub Date Jul' 66Note- 63p.Available from-Manpower Administration U.S. Department of Labor, 14th Street and Constitution Avenue, N.W.,

-Washington D.C. 20210,

toks Peke MF-$0.50 HC-$2.60- . .,

Descriptors- ADMINISTRATIVE POLICY; -BIBLIOGRAPHIES EMPLOYMENT PROGRAMS *EMPLOYMENT SEgV=ICES

.,9-,.*FEDERAL PROGRAMS *FOREIGN- COUNTRIES *MANPOWER .DEVELOPMENT, -OCCUPA.TIONAL 'GUIDANCE.

OCCUPATIONAL-MOBILITY, i.P.tA3LIC- POLICY, UNEMPLOYMENT, VOCATIONAL EDUC-ATION

. entifiers- Feante,-Great Britain Neherlands; Sweden, West Germa-

,:4'. For :eaCh of the countries;the current manpower pOlicies are desdribed, ;the:s1-develdtpment of manpOwer policy in relation to, other national.(agOals is ,explained:,:a6a

major elementt of manpower pr6orams are discuSsed. Information tot obtained from-selected ,pubIiShed Materials..-Some general findings, .are: .(1) tilea,sUres tO -achieve '-fOlt 2

-,:

.eMploymen,t, economic 7-0rOwth,, stable price's, and--a- sound moneJary- policy Wert': 'WOintegrate& and. c.'foordinated; (2)- Information_develOpedi frOm, prog.raMs: an& i7.0.ortf,),related; :tO Manpower and the- -labOr force -were often used -by- :policy: .ttakers;--(3),Afthbugh-.06.4,lished statistics -Often are laCking, there is generally 'good- comriiuni0;t10-of iniOrMaticin tO =all.- cOncerned ;with matching (Obs and wOrkers, -C4)- AclUit training:for;employment, was- a :permanent part of_the manpower -progrom.:in mr Igie cciuntriesp:(51:Pultht works. :were used in- severat tountriezt to -coMbat ,CyCliCat ,',and sea:404OnemployMent, -(6) lituch ,attention was Oiveh tO future: deMand andp,':8/ail-abikiy, :of

.--workers,_ and .(7) The agencies, it) the manpower administratioty .of the.- fiy-0- -cOubtrito$:,.:,: :,

haVe different functions -arid- different degrees, of_ authority. A Seleaetf 'biblioraOhy-includes ,both. 'publications', tOntairing general infortnatiOn and: -thOte '6?,r')Usihin0:information for each Of the .five countries. -(EM) ,

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BULLETINUMB HJULX 1966

And Programs

n Five

estern European Countrie

France, Great Britian, the Netherlands,I

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Sweden, and WeSt GennanY *

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I at LI k

OTHER MANPOWER RESEARCH BULLETINS

Mobility and Worker Adaptation to Economic Change in the United States (No.1, revised 1963)

Manpower and TrainingTrends, Outlook, Programs (No. 2, 1963)

Young Workers: Their Special Training Needs (No. 3, 1963)

Selected Manpower Indicators for States (No:4, 1963)

Family Breadwinners: Their 'Special Training Needs (No. 5, 1964)

The Mentally Retarded: Their Special Training NeedS4No.--6, 1964)-

Training Foreign Nationals for Employment With U.S. Companies in DevelopingCountriesImplications. for Domestic Programs (No. 7, 1965)

Training Needs in Correctional Institutions (No..8, 1966)

Training in Service Occupations Under the Manpower Development and TrainingAct (No. 9, 1966)

Unused Manpower: The Nation's Loss (No. 10, 1966)

MANPOWER ADMINISTRATIONOFFICE OF MANPOWER.POLICY, EVALUATION, AND RESEARCH

CURTIS C. ALLER, DIRECTOR

U.S. DEPARTMENT Of HEALTH, EDUCATION & WELFARE

OFFICE OF EDUCATION

THIS DOCUMENT HAS BEEN REPRODUCED EXACTLY AS RECEIVED FROM THE

PERSON OR ORGANIZATION ORIGINATING IT. POINTS OF VIEW OR OPINIONS

STATED DO NOT NECESSARILY REPRESENT OFFICIAL OFFICE OF EDUCATION

POSITION OR POLICY.

Manpower Policy

And Programs

In Five......,..

Western Euroi3sean Countries:

France, Great Britain, the Netherlands,

Sweden, and West Germany

U.S. DEPARTMENT OF LABOR: W. WILLARD WIRTZ, Secretary

MANPOWER ADMINISTRATION

6-

PREFACE

Under the Manpower DeNielopment and Training Act of 1962, as amended, the Secretary

of Lab,or is required to publish information that might be of assistance in dealing with

such probleiris as manpower requirements, development, and utilization. Other countries

have developed policies and programs of varying success and applicability to this country

in the solution of problems similar to those in the United States. This bulletin describes

the current manpower policies of five highly developed countries of Western Europe, ex-

plains how their manpower policy is developed in relation to other national goals, and

discusses some .of the major elements of their manpower programs.This bulletin is based on published materials and reflects discussions with persons

who have observed firsthand the operations of manpower policy and programs in West-

ern Europe. It was prepared by Lewis H. Earl, John H. Linton, and Philomena M.

Mullady of the Office of Research, Office of Manpower Policy, Evaluation, and Research.

3

CONTENTS

Page,'

INTRODUCTION1

Summary of Findings2

Manpower Policy9

Manpower Administration3

Developing Workers' Skills4

Creating Jobs5

Matching Workers and Jobs6

Variations in Manpower Structure6

FRANCE

Manpower PolicyThe Development of Manpower PolicyManpower Programs

Employment ServiceUnemployment BenefitsThe National Employment FundVocational Training and RetrainingPromotion of Mobility

9

1012

12

12

13

14

144.

THE FEDERAL REPUBLIC OF GERMANY

Manpower Policy17

Determination of Manpower Policy17

Functions Performed in Implementing Manpower Policy 19

Forecasting19

Vocational Guidance and Placement of Youth 19

Training of Workers20

New Entrants to the Labor Force20

Adult Training Programs21

Labor Reserves21

Employment Service and Mobility92

Advance Warning of Dismissals22

Public Works23

Regional Development Programs24

GREAT BRITAINPage

Manpower Policy 27

Development of Manpower Policy 27.

Implementing Manpower Policy 28Forecasting Manpower 29

Vocational Guidance and Placement of Youth 29Training of Workers 31Redundancy Legislation 32

Labor Reserves 32

The Employment Exchanges 34Transfer Plans and Area Development 34

THE NETHERLANDS

Manpower Policy 37

Determination of Manpower Policy . 37

Manpower Programs 38

Administration of Wages and-Income. 38

Job Market Research 39

The National Employment Service 39Handicapped Workers 40

Mobility _of Labor 40

Regional Development .40Handling of Seasonal Unemployment 41Vocational Training and Retraining 41Vocational Information and Guidance 42

Occupational Information 42Vocational Guidance 43

SWEDEN

Manpower Policy 45

Swedish Institutions and An Active Labor Market Policy 46

The National Labor Market Board 46

The County Boards 47Operations of the Labor Market Board 48Early Warning System 48

Job Vacancies 48

Estimates of Manpower Requirements 48Labor Supply 49Labor Demand Activities 49

Special Programs to Combat Unemployment 49

Public Works and Government Purchases 49

Investment Reserves 50

Industrial Locations 50

Housing Construction 51

Occupational and Geographic Mobility 51

The Role of the Employment Services 51

vi

PageVocational Training and Retraining 52

Training Allowances 52

Vocational Guidance 53

Relocation and Resettlement Allowances 53

SELECTED BIBLIOGITAPHY'

GeneralBooks and PamphletsGeneralPeriodicals

FranceBooks and PamphletsFrancePeriodicalsGermanyBooks and PamphletsGreat BritainBooks and Pamphlets

55

56} 57

NetherlandsBooks and PamphletsNetherlandsPeriodicals and JournalsSwedenBooks and PamphletsSwedenPeriodicals

57

57

58

58

58

59

59

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INTRODUCTION

Manpower is frequently the key element innational economic and social policy. Since theend of World War II, western industrial coun-tries have faced dilemmas arising from therelationship of the goal of full employment toother national objectives. Measures to achievefull and freely chosen, employment can conflictwith, as well as complement, efforts to reachother objectives. On one hand, effectivenesswith which manpower is utilized and wittwhich it adjusts to technological, economic,and social change is a major determinant of therate of econortic growth and consequently thclevel of employment. On the other hand, rapideconomic growth frequently changes the indus-trial and occupational composition of employ-ment and unbalances the demand and supply ofmanpower, particularly for specialized skills.Thus, when manpower is scarce, the mainte-nance of stable prices and favorable tradebalances may require more efficient use of pro-duction and technological changes to obtaindesired output of goods and services.

The integration of manpower policy withother economic and social policies saves thevarious elements that go into overall policyfrom being lost in a vacuum of narrow special-ization. Integration of manpower policy, to-gether with the stress on full employment as anational goal, makes manpower agendies a

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orce in the formulatkilpr ecolicY.Oonflick between maritime

conomic and social politles hccommodation of theseqies. The method ofon varies from countd fiscal policies haveployment consideratipromote full emplôwer policy lids been biiNt one programs to iptlt. aeowth a Come colocati 7

In the United Sate a hiegratibn of ecohomi -ands reached in 1964. In4 ilnpes were cut to accele te ec

d thereby to reduce empe time, President 4hnso

nomic and social

policy-and otherve led -to mutuals in most coun-at accommoda-

ntry. Monetaryhoped partly byhave been usedonvdrsely, man-

klexible and posi-lerate ecohomicitant manpoWer

npower message calltd forp er policy tso--''-e-omple enta ack on poverty. Thi. an attitudes and effo,4 ,geaf odamental goals: (1) o del(olour people ; (2) cro f eatem e the ,most of thede abilim.I ch people and jo %.

I hese. objectiives gétllyse 1- ral Westernha e come yeskyelos.,e;, ttairetiert revie 'Ws mango, .poliin ve of these countiéFrànth. Netherlan6, Swed and

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Th : is a selective wçtler .thare lew, because the aint ' s todi Itrence in manpowet' ohm.

Iam ng thoountriei a ,' the Imi mum of attention 1,rias bdpol i ical, econbinic, ad socialcote tries, lince it isl iit the

tstVy to explain.:,thPr sonsenc Is: ..

. 4i e ,onalysis for odarc41, cou

cur nt status' 'Of maniowerto o her policies. It 614 hsketction of the mant(owertigencilab ship to other Goie'rnmefun4 ions in the av4ippmenpoli The chief atten4on, hfun ions performed b 'theseple Elting policies foi. idevelo

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point the .

npower policy,.ececlented move,nomic expansion

ment.. _At theA hiss ahnual

an active man-new national

wer policy seeks-ed to the threelop the abilitieS

jobs which will:ies ; a !Id (3) to

arallel those ofuntrids, which

ing them. Thisy and programs'e, Great Britain,'West Germany.

an exhaustive

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kplore points of_and programs

Lnited States': An given to the

t')history of theurpose of this

or these differ-3

try covers thelicy in relation

es the organiza-s and their re-al agencies and

o man$S.y.vrevgr, is ori the

agencies ht. "4.nl-ing manpower,

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creating jobs, and ,bringing the two together.As members of the European Coal and SteelCommunity and the European Economic Com-munity, France, the Netherlands, and WestGermany have participated in some special man-power programs that are international incharacter and peculiar to those regional eca;nomic organizations.

SUMMARY OF FINDINGS

:Measures to achieve the national objectives

of full employment, economic growth, stableprices, and a sound monetary policy are wellintegrated and coordinated in the planning andpolicymaking stages in the five Western Euro-pean countries. The methods oft coordinationvary from an integrated process of nationalplanning in France to an active participation ofmanpower agencies in fiscal, monetary, and for-eign trade programs in Sweden and Germany.

Information developed fiom operating pro-grams and research related to manpower andthe labor force is used frequently by policy-makers at all levels to develop and administermanpower programs. Although publishedstatistics often are lacking, there is generallygood communication of information about jobvacancies and availability of manpower to allconcerned with matching jobs and workers.

The training of adults for employment hasbecome a permanent part of the manpower pro-gram in each of the five countries. The-type andorganization of these programs, which are notlimited to only the unemployed, vary amongthe countries.

Public works are used to combat cyclical andseasonal decreases in employment in severalof the countries. Fiscal and monetary policy isused at an early stage of economic downturnsto stimulate job creation. in some countries.

Much attention is given to the future demandfor manpower and the availability of workers tomeet that demand. The economic planning donein several countries requires long-range fore-casting of manpower demand and availabilityof skills. In most countries, the employmentservice plays a key role in matching workersand jobs. The manpower policies reflect a be-lief that programs for upgrading manpower or

2

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creating jobs can be most efficient when sup-ported by a well-informed, professional employ-ment service.

The,agencies in the manpower administrationof the five countries have different functionsand !widely different degrees of authority.

MANPOWER POLICY

Full employment ranks with rapid economicgrowth, stable prices, and favorable balance ofpayments as a prime objective of economicpolicy in each of the European countries stud-ied. European countries have taken steps ear-lier than the United States in coordinativemeasures to achieve these goals. In some cases,full employment emerges as the central aim ofeconomic and social policy ; less attention maybe given to full employment in those periodswhen relatively little unemployment exists.Measures to improve the efficiency and utiliza-tion of manpowerfor example, training andrelocationare usually regarded as essentialtools of economic policy.

In Sweden, for example, maintaining a highlevel of employment is assigned top priority bya longstanding consensus of the Government,the major political parties, the trade unions,and the employers' federations. Thus, althoughSweden is concerned with preserving its com-petitive position in world markets and withimproving its high standard of living, it hastolerated mild inflation for the sake of fullemployment. In the Netherlands, where inter-national trade plays a heavy role in the econ-omy, the annual economic review gives carefulattention to full utilization of manpower re-sources as a prerequisite of successful inter-national competition. Similarly, France hasincorporated manpower objectives into eachof the four national economic plans adoptedsince 1947. In West Germany, problems ofmanpower adjustment incident to economic re-construction and the absorption of refugeesfocused attention on manpower utilization asan element of economic and social policy.Finally, Great Britain has recently undertakenlong-range economic programing in which acommitment to full employment plays a majorpart.

Although Western European countries oftenlack published statistics on the labor force andemployment needs, there are indications thatsome of the countries make full use of all avail-able data in the manpower field for balancingthe supply and demand. Those countries in theEuropean Economic Community appear to usefull information on manpower demand andsupply to assist in the free and orderly move-ment of workers between member countries.

Forecasts and projections of manpowersupply and requirements used in determiningpolicy in some cases rest not only on demo-graphic and employment trends but on sys-tematic information on job vacancies and im-pending layoffs. For example, in Sweden mostemployers advise the Labor Market Board ofimpending layoffs or shutdoWns ,60 days inadvance. Early notice of layoffs in the Nether-lands grows out of a requirement that termina-tion of employment have the consent of thelocal employment office director. Various, sys-tems for reporting job vacancies have beendeveloped and communication of employmentand vacancy data among local offices is frequentin Germany, the Netherlands, and Sweden. Wideuse is made of local and national data on cur-rent and prospective employment throughoutthe manpower administration of all five of thecountries. In Sweden, such information pro-vides the signal for applying selective monetaryand fiscal measures to counter increases in un-employment.

A more important prelude to economic policy-making in Western Europe is the careful elab-oration of a statistical framework for athoroughgoing review of all major aspects ofpolicy to insure internal consistency. Thus,for example, if consideration is being given inthe Netherlands to a 10-percent expansion ofproduction in a certain industry, the Dutchcan estimate rather precisely many of the far-reaching implications of such expansion. Itsfeasibility would be determined only after astudy of such matters as the amountg of in-vestment and manpower entailed, the incentivesfor attracting these amounts of resources, andthe consequences for other economic sectors ofso doing. Likewise in Sweden and France, themanpower implications of particular invest-ments or other economic programs are evalu-ated before action is taken. .Careful attention

is given to the relationship of investment toregional and national employment in eachcountry.

The agencies which administer manpowerprograms are not, in all cases, the policy spokes-men. In France, for example, the most influen-tial voice in manpower policy is the ManpowerCommission attached to the Commissariat ofthe Plan for Economic and Social Development.The Ministry of Labor, which is responsiblefor the administration of most manpower pro-grams, has representatives on this commission,but the commission's membership encompassesother Government agencies and employers' andtrade union federations.

MANPOWER ADMINISTRATION

-

The scope of authority given to manpoweradministrations varies among the Europeancountries, depending upon the nature of themanpower program and the Governmentalstructure. In Sweden, at one extreme, the Na-tional Labor Market Board not only exercisesthe typical manpower functions but also hasa certain amount of control over programsusually administered by other agencies ofGovernment. For example, the Board canactivate standby funds for public works, actto step-up procurement by both central andlocal government, approve tax exemptions tospur private investment, and control the is-suanee of building permits. France, at the otherextreme, reserves to the Finance Ministry theapproval of financial incentives to regional de-velopment, and delegates to the LaborMinistry the task of representation in thetripartite programs for unemployment insur-ance, occupational training, and worker reloca-tion. The Ministry of Labor also operates theemployment service, which has not been fullyused by either employers or workers. However,in resettling Algerian repatriates, the role ofthe employment service became more evident. -

Within the wide latitude encompassed bythese two extremes, the Dutch, German, andBritish manpower agencies also exhibit markeddifferences. In the Netherlands, the CentralPlanning Board establishes annual guidelinesfor economic policy, using information fur-.

3

nished by the Ministry of Social Affairs andPublic Health, as well as other departments.Most of the manpower programs are operatedby the National Employment Service of the.Social Affairs Ministry ; however, wage policyis developed by tripartite, semi-independentagencies. In West Germany, where there is nooverall national economic planning on a periodic.basis, the employment service is the most im-portant agency in seeing that the national aimof high employment is attained._ Goals for eco-nomic growth in Great Britain, set by theNational Plan, are implemented on an industrybasis by the Economic Development Commit-tees and the Training Boards, and on a geo-graphic basis by the regional Economic Plan-ning Council. The Ministry of Labor performsthe administrative manpower functions.

DEVELOPING WORKERS' SKILLS

Training of adults for new or changing voca-tions has become a permanent part of the man-power administration of each of the countries.In some of the countries, the manpower author-ities are also either wholly or partly responsiblefor the vocational counseling of youths still inschool and-for placing them in jobs where theycan receive training when they are ready toleave school.

There is wide variation in the source andvolume of training, methods of instruction, andthe standards for admission. However, onefeature is unifoim : All of these countries payliberal training allowances as related to work-ers' earnings.

In France, most adult job training is givenin more than 100 training centers, most ofwhich are operated by a tripartite organizationunder the aegis of the Ministry of Labor.Training is open to employed workers who wishto improve their skills as well as to the unem-ployed. The criteria for admission, however,screen out most prospective trainees who areover 35 years of age. Instruction is concen-trated in the more skilled, technical, and semi-professional occupations, and accelerated train-ing methods permit the completion of mostcourses within a year.

The adult vocational training centers in the

4

Netherlands are operated by the Ministry ofSocial Affairs and Public Health and the di-rectors of the centers are aided by an advisorycommittee of employers and workers and byexperts in vocational training. The Nether-lands has been one of the pioneers in the useof programed instruction material and atrainee is permitted to enter a course at anytime and to work at his own pace. The Nether-lands also has the highest upper-age limit fortrainees of any of the countries studied. Thedemand for graduates of the Dutch trainingcenters is predetermined from forecasts basedon past employment trends.

Sweden recently stepped up the pace of train-ing and over 1 percent of the Swedish laborforce is now being trained annually. Instruc-tion is being given in a wide variety of occu-pations, many of them in trade and services.The Labor Market Board chooses the occupa-tions in which training is to be given andcooperates with the educational authorities indeveloping the program of instruction, but theMinistry of Education either gives the instruc-tion or arranges with a private training insti-tution to do so. Training is open to adults whohave been displaced or who are threatened withthe loss, of their jobs. The length of trainingvaries with the occupation, and most traineescan enter a course at any time.

Great Britain is now developing a new planof industrial training under the IndustrialTraining Act of 1964. This act makes each in-dustry responsible for developing and financinga training program to meet its specific needs.Forecasts of manpower and training needs foreach industry are essential to the new Britishtraining plan. As a part of this developmentalwork, the Ministry of Labor, in consultationwith the industry and the trade unions in-volved, is reviewing the duration of apprentice-ship in various trades and the use beiRg madeof new training techniques. The Governmenttraining centers in Great Britain are in theforefront of new training developments.

In Germany, greater emphasis is given toon-the-job training and the apprenticeshipsystem. It is customary in white-collar occu-.pations as well as blue-collar trades to servean apprenticeship, generally 3 years. One ofthe chief Government contributions to trainingis the partial financing of. central training

workshops to permit broader training thanwould otherwise be possible of apprentices whoare employed in smaller establishments. Also,liberal grants and loans support private coursesfor skill development.

None of the European countries studied has,in recent years, experienced serious unemploy-ment of youth, although France, the Nether-lands, and to some extent Great Britain andGermany, have begun to have sizable propor-tions of young people entering the labor forceeach year. All of the countries have increasedtheir emphasis on education, and Sweden, Ger-many, and France have added 1 year to com-pulsory schooling. In Germany, the employ-ment service is responsible for the vocationalcounseling of students in the schools, but thejob training of young workers is done by theemployer. . The Swedish employment serviceconcentrates its vocational counseling work inthe schools, working closely with the schoolauthorities. In the Netherlands and France,young workers enter the labor force at lowwage scales but are rapidly advanced to theadult scale of pay. Apprenticeship programsfor youth are prevalent -in most countries.Great Britain has established special youthemployment offices to care for new entrantsinto the labor force.

CREATING JOBS

Public works are also used in the Nether-lands, West Germany, and Sweden to countercyclical or seasonal decreases in employment.In the Netherlands, a special arm of the em-ployment service prepares and initiates proj-ects of additional employment to combatseasonal unemployment, and many of the publicworks are initiated by the employment servicewhen considered necessary to overcome cyclicalunemployment. In West Germany, unemploy-ment insurance funds may be used to providejobs on public works projects in lieu of makingunemployment insurance paynients. Previously,unemployment insurance funds have beenlargely used to finance public works projects(so called Notstandsarbeiten) but this hasnot been necessary in recent years because ofoveremployment. The Swedish Labor Market

Board controls the use of standby appropria-tions for public works, and may initiate proj-ects ahead of schedule in either a seasonal ora cyclical downturn in employment. It mayalso delay the beginning of a scheduled projectif there is a shortage of manpower for thework.

The five countries studied have had consider-able experience in the use of incentives foreconomic development that encourage thegrowth of jobs in underdeveloped areas anddiscourage further growth of jobs in crowdedurban areas. In Great Britain, the Board ofTrade must approve the location of large newor expanded industrial establishments and canprovide some financial aid for location in cer-tain areas. France uses a system of loans, in-terest subsidies, and tax incentives to guide in-dustrial location. In Great Britain, Germany,and the Netherlands, there are programs toencourage investment and industrial growth inareas where manpower is available. In Sweden,the Labor Market Board can influence the lo-cation of industrial enterprise through itsauthority to approve loans.

The Swedish Labor Market Board also hasunique powers for stimulating the investmentof private capital to mitigate cyclical fluctu-ations in employment. This requires the closestcoordination of monetary and fiscal policy withemployment policy. Employers may set asideas much as 40 percent of their profits for capi-tal investment, depositing a fixed proportion ofthis in the Swedish central bank, without pay-ing income taxes on the amount set aside.When it is determined that capital investmentwould be appropriate to combat a recession,the funds may be released with additional taxincentives to employers who use them for newplant or equipment. The funds in the invest-ment reserve may not be used for 5 years with-out the Labor Market Board's permission.After that time, up to 30 percent of the amounton deposit may be used for allowable purposeswithout direct permission and without pay-ment of income taxes.

Several of the countries in Western Europehave developed sheltered workshops to providejobs for the handicapped. Extensive rehabili.-.tation training for the handicapped is alsoavailable. In Sweden and Great Britain, shel-tered workshops are considered a means of

.5

employment rather than a system of welfareand they operate competitively in the economy.Throughout Europe, the concept of shelteredworkshops reflects a policy of assuring fullemployment.

MATCHING WORKERS AND JOBS

In addition to making use of programs forattracting industry- to areas where unemploy-ment is relatively high, all of the Europeancountries studied also utilize measures to in-duce workers in such areas to relocate in areaswhere manpower is in demand. Both the Neth-erlands and Sweden provide special travel andsubsistence allowances as inducements fortemporarily unemployed persons to meet needsfor seasonal labor in other areas. The Swedesuse this provision extensively for meeting sea-so1,21 manpower needs of all kinds, but in theNetherlands it is used only for the peak agri-cultural needs. However, the Dutch are en-couraging the concept of full-time employmentfor :agricultural workers and are using theiradult training program to give these workersskills ..which they can use both On and off thefarm. Germany's approach to the problem ofseasonal unemployment in the construction in-dustry, on the other hand, involves bad weathercompensation from unemployment insurancefunds to keep the workers on the employers'payroll.

All, of the countries studied have provisionsfor financial aid to unemployed workers willingto move to another area to take a nonseasonaljob. Also, the European Coal and Steel Com-munity and the European Economic Commu-nity have provided financial aid to implementa policy of geographical mobility of workers.

There are allowances for travel expenses forthe worker and his family, payments to coverthe cost of moving household goods, and insome cases a resettlement allowance to helpdefray the expenses of selling one home andbuying another. In addition, several countriesprovide an allowance for both the worker andhis family to cover the added expense of main-taining two households if the worker cannotmove his family right away. In several of thecountries, similar allowances are available for

6

trainees who enroll in a training center awayfrom their home area. In nearly all instances,such allowances reflect not only the need forincentives to worker mobility but also a generalshortage of housing.

The key role in matching workers and jobs,however, falls to the employment service. Inall of the countries, unemployed workers arerequired to register with the employment serv-ice to qualify for unemployment insurance,even where the insurance plan is not, as inSweden and France, a universal public system.Likewise, each country provides vocationalcounseling through the employment service.Referring workers to training programs is ascommon a function as job placement.

VARIATIONS IN MANPOWERSTRUCTURE

The industrial structure of the economyvaries from country to country. In general,-however, postwar development in the Europeancountries studied has tended to reduce differ-ences in the industrial composition of employ-ment both between one country and anotherand among all five and the United States.However, their employment distribution nowresembles ours of a generation ago, except inthe case of Great Britain where the employ-uent distribution differs_ only slightly fromthat of the United States (in terms of broadindustrial groupings). More of the labor forcein the other four countries is engaged in agri-culture than in the United States; for example,20 percent is engaged in agriculture in Franceversus 7 percent in the United States. Less thanone-fourth of the U.S. labor force is engagedin manufacturing; the smallest proportionamong the four European countries is 27 per-cent for France. Employment in trade andservices occupies 40 percent of the U.S. laborforce, but is less in France, Germany, and theNetherlands.

All economic and demographic differencesin industrial structure, area, density of popu-lation, labor force participation, and economicgrowth ratesneed to be kept in mind as in-fluences on the shaping and administration ofmanpower policy. For example, geographic

mobility of workers probably is a less vexingproblem in Sweden, which is about the size ofCalifornia, than it is in the United States,which sprawls over 23 times as much land.However, other factors, such as availability ofhousing, may influence worker mobility. Dif-ferences in the relative number of farmwork-ers can account for different training andplacement policies. Indeed, manpower policybased on the experience of extraordinarily lowunemployment for prolonged periods might beexpected to differ appreciably from a policydirected toward reducing high unemployment.

Finally, cultural and social differences, aswell as differences in the structure of gov-ernment, influence manpower policies andprograms. Each of the Western Europeancountries studied has encountered manpowerproblems connected with ethnic, racial, or re-ligious minorities, but these problems haverarely approached the magnitude of the Negroemployment problem in the United States. De-spite temporary difficulties, each of the fiveWestern European countries has successfullyemployed and assimilated migrants from othercountriesa task greatly facilitated by pre-vailing manpower shortages which demandedthe use of foreign workers. Also, the geogra-phy of Western Europe is so compact that theuse of foreign workers to overcome manpowershortages is often a ready tool. Furthermore,policy is subjected to a different type of publicreview under a parliamentary type of govern-

ment than it is in the United States, and theruling party or coalition controlsalbeit some-times by exceedingly slim marginsboth theexecutiVe and the legislative branches of gov-ernment. In addition, the structure of govern-ment in the Western European countries lendsitself to some types of manpower programsthat are difficult to accommodate in our Fed-eral-State system. Although Sweden, for elkample, gives authority over its employmeMservice to County Labor Market Boards, stand-ards and procedures are uniform throughoutthe system and special services deemed to bein the national interest are provided as easilyas those oriented toward local problems.Lastly, the sharing of administrative responsi-bility with the interested economic groups inseveral of the European countries tends tospread understanding and support of man-power programs, as well as to keep lines ofcommunication open.

The existence of international differencessuch as those enumerated hereand necessar-ily much oversimplified in this thumbnailsketchmanifestly precludes any uncriticalborrowing of manpower institutions. It is notthe intent of this publication to suggest other-wise. Rather, its aim is to recognize, althoughnot analyze, these differences as a backgroundfor whatever lessons we may learn from astudy of manpower policy and administrationin certain countries of Western Europe.

4%

7

t

France's efforts to regain and reinforce herposition as a world power have dominated hereconomic policies since the end of World WarII. These policies have been embodied in a se-ries of four national _economic plans spanningthe period froth 3947 to 1966, when a FifthPlan is scheduled to become effective. In thisframeworll facets of economic policy havebeen geared to the central tasks of first rebuild-ingrand then modernizing and expanding an

economy devastated by war. Of necessity, somesocial goals were assigned lower priorities dv-,ing earlier postwar years. By 1961;411'6n theFourth Plan was being formulated, economicgrowth permittedp the inclusion of importantsocial objectives in overall plan goals. Earlierplans had been designated "Plans for Moderni-zation and Equipment," but the Fourth Planwas called the "Plan for Economic and Social

Development."

MANPOWER POLICY

Each of the French plans has been designedto obtain the optimum economic growth withavailable resources'. Each plan has recognized

the central role played by manpower resourcesin accomplishing the desired economic growth.

A major objective has been full employment

with the distribution of manpower to the sec-

tors of activity that permit the highest possible

growth rate. An essential aim of French eco-nomic development has been the more completesatisfaction of human needs. The manpowerpolicy, therefore, has been directed towardmeeting the needs for economic growth in thehighest priority sectors of the economy, while

helping the workers to adapt to the changes in-

herent in progress. An attempt not only hasbeen made to balance manpower resources andrequirements in overall employment, but alsoto balance the skill requirements and resourcesin the different sectors.

An important aspect of French manpowerpolicy has been the recognition of the need forchange and acceptance of the inevitability oftechnological improvements as the answer tomaintaining a vigorous and competitive econ-omy. This break in traditional attitudes canbe dated with the development of the FirstPlan in 1947. Inherent in this recognition has

been a strong emphasis on training programsfor younger workers. While older and ?stab-

lished manpower institutions are being reex-amined to meet the demands of a modern ageand a growing population, the newly adopted

National Employment Fund is official recogni-

tion that the working Frenchman can no longerdepend on spending his entire life on one job

or in -the occupation.To rebuild the French economyAfthr the

war full utilizafori of Manpower to compen-

- sate for wartime population losses and very law

prewar birth rates was essential. Thus, underconditions near full einployment, manpowerpolicies have stressed training to increase theproductivity and mobility of labor, supplement-ed by other incentives for workers to adapt to

manpower needs. Under the forthcoming FifthPlan, regional development will be emphasizedand present indications are that manpower poli-cies and institutions will reflect the require-

ments associated with regional economic ad-

justments, and development.Manpower measures have contributed sig-

nificantly to the restoration and growth of theFrench economy under the several and succes-sive plans. France's gross national productgrew at an annual rate of 4.7 percent between

1949 and 1958 and since 1960 at 5.4 percentone of the highest rates among western indus-trialized countries. Yet the working population

9

has remained fairly stable since 1945, at nearly20 million, and the unemployment rate has, inthe face of substantial reduction in agriculturalemployment and self-emPloyment, remainedless than 5 percent. The increase in per capitalabor productivity has been substantial in con-trast to prewar levels of performance.

THE DEVELOPMENT OFMANPOWER POLICY

The two most outstanding characteristics ofFrench manpower policy have been the extentto which it has been integrated with overalleconomic policy and the widespread review anddeliberation to which it is subjected during theplanning process. Each element of the Frenchplans represents far more than the Govern-ment's view of national needs in a particulararea of the economy. Although manpower pro-jections and guidelines may be developed bythe Manpower Commission of the General Com-missariat for Planning, they are discussed, ex-amined, investigated, and revised by many lev-els of committees and working parties fromprivate and public organizations that bear finalresponsibility for the execution 6f manpowerpolicy. The participation of these many inter-ests insures that the policies adopted will notonly be feasible but that they will also edjoybroad support.

The organizational framework for economicplanning has been somewhat elaborated sinceit was established in January 1946, but thefundamental tasks are still carried on by theGeneral Commissariat for Planning and a num-ber of Planning Commissions. The GeneralCommissariat of Planning and its director, theCommissaire-General, are responsible to thePrime Minister and enjoy unique influence inthe Government. The Commissariat is small,having a staff of about 150, of whom fewer than50 are professionals. Its smallness reflects thelarge amount of assistance it receives fromother Government agencies and the reliance onthe various commissions, some of which arecalled into being only for detailed developmentof the plans. These groups, called Moderniza-tion Commissions, are composed of representa-tives of the four major labor federations, heads

10

of industry, directors of management associa-tions, representatives of farmers, and others,as the Commissariat deems desirable. The Com-missions, with 30 to 50 members each, have atotal membership of approximately 1,000. Theworking groups from private and public or-ganizations bring the total personnel involvedin planning to about 3,500.

Procedures for development and review ofeach plan have changed since 1946. Startingwith the Fifth Plan, Parliament discusses pro-visions and signifies its approval on two sep-arate occasions. The first time it is presented,the draft plan contains what the Governmentrefers to as options or choices. At this stage,the plan is only in preliminary form and theoptions represent a principal hypothesis of de-velopment with several growth rate variations,one of wEch must be obtained if the selectedeconomic and social objectives of the final planare to be achieved. Once the necessary optionsare chosen, the details for implementation ofthe desired economic and social goals are thenworked out by the various planning bodies.When the final draft is completed, the plan isresubmitted for Parliamentary approval. Thegoals thus agreed upon represent neither a pre-diction nor a promise; in effect, they are anarithmetic expression of policy objectives.

There were 24 Modernization Commissionsworking on the formulation of the Fourth Plan,which went into effect in 1962. Of these, fiveHorizontal Commissions coordinated the as-pects common to all sectors of the economy:General economic and financing matters, man-power, research, and development, productivity,and regional planning. The remainder, the Ver-tical Commissions, were responsible for asses-sing the projections for a particular economicsector, such as agriculture, the processing in-dustries, and housing; surveying problems inthe sector; and suggesting measures for realiz-ing the growth objectives. Working groups ofpublic and private organizations conducted spe-cial studies as needed.

The Manpower Commission synthesizes thefindings of the Vertical Commissions on man-power needs and recommends adjustments andpriority programs to meet objectives. Follow-ing the recommendations and modificationsmade by the different commissions, vertical aswell as horizontal, the General Planning Corn-

missariat drafts the final plan. This draft isa cohesive outline of feasible economic and so-cial objectives and measures for their attain-ment.

The draft plan is submitted to the Intermin-isterial Committee on the Plan and ultimatelyto the Economic and Social Council and theSuperior Council on the Plan. Following theirapproval, it goes to the Parliament. Within thisframework, the Manpower Commission has re:sponsibility for developing manpower policyconsistent with the plan. It is significant thatthe commission is composed of interested na-tional agencies, employer and union organiza-tions and experts. With this wide representa-tion from all sectors of the economy, theManpower Commission's recommendations rep-resent a consensus. However, like the othercommissions, it has only research and advisorypowers.

The Manpower Commission's research sup-plements available manpower statistics with de-tailed information from employers, particularlyon future manpower requirements, plans forplant expansion, and impending technologicaldevelopments. Some of the former reluctanceof French business to provide pertinent infor-mation is fading as the plan assumes more im-portance in the country's economic developmentand as participation in the various commissions'and working groups is enlarged. The work ofthe Vertical Commissions is also a valuablesource of information for the Manpower Com-

mission.Research is the background for recommenda-

tions on measures that will be needed to achieveand maintain a desirable balance in employ-ment in relation to the overall objectives ofthe plan. For example, the Manpower Commis-sion made extensive studies in connection withthe Fourth Plan. In addition to preparing re-ports on employment distribution among theprincipal sectors of activity, the Commissionalso prepared reports on professional qualifica-tibns and made estimates of the manpowersituation by regions. Estimates of employmentby major sectors covered the period 1959 to1965, anct estimates of regional manpower re-quirements covered 1960 to 1965. Because ofthe time required for education and profes-sional training, the Commission chose as targetdates 1965 and 1975.

The planning reports served to, alert the pub-lic as well as the General Commissariat forPlanning that measures had to be taken tomeet the indicated shortages of labor. Man-

power studies called attention to the fact thatover 1,000,000 jobs would have to be createdbetween 1961 and 1965 to care for the growingnumbers of young people. Many persons fromrural areas would become available due to themodernization of agriculture. The plan, there-fore, had to ensure a policy of balanced growthamong regions; correcting imbalances develop-

ing out of divergent trends in population, em-ployment, incomes, and growth rates. Inter-regional migrations with a focus on the Parisarea and not conforming to plan objectiveswere discouraged. Conversely, where rapidgrowth was taking place, policies had to be de-veloped to provide the necessary public utili-ties, schools, universities, and financial !re-

sources to support and maintain the pace of

expansion.The influence of the Manpower Commission

is demonstrated by the extent to which itsrecommendations for a plan are accepted by

the Govetnment, Parliament, and the private-- -----sector. The planning process subjects man-power resources to periodic review-afid rationalanalysis for the express purpose of developinglong-term policy guidelines. Each of the fourpostwar plans has either explicitly stated orimplied that full employment and increasedlabor productivity were central objectives.

Thus are manpower policies and programs con-sciously and deliberately enunciated and as-signed their constituent place in French eco-nomic and social programs.

Balanced regional ckvelopment is the objec-tive in areas suffering from underemploymentor inadequate economic progress. In supportof plan recommendations, incentives in theform of tax exemptions, loans, or subsidieshave been made available for enterprises whichlocate or transfer their activities to depressedareas. Where development has been rapid, theplan calls for efforts to strengthen the infra-structure to sustain continued growth. Re-

gional planning committees were establishethtoaid in this development. One of their importantresponsibilities is to collect manpower informa-tion and analyze employment trends.

11

MANPOWER PROGRAMS

The administration of French manpower ac-tivities centralized in the MiniStry of Laborare primarily4oncerned with employment inthe private /iector and the vocational trainingof adults. 'The Ministry of Finance handles theindustrial location incentives to stimulate thecreation of manpower demands in areas witha shortage of jobs. Manpower policy relatingto the nationalized sector of the economy is aresponsibility of the appropriate ministry.

Within the Ministry of Labor, the GeneralDirectorate of Labor and Manpower has chargeof the employment service and of the Govern-ment's functions with respect to unemploymentinsurance. Its other manpower responsibilitiesinclude the recruitment, placement, and .dis-missal of foreign labor, and vocational guidanceand training._

Employment Service

The French National Employment Servicewas reconstituted in 1960 to reflect the newplanning emphasis on regional development.Under the overall direction of the General Di-rector of Labor, and Employment, there are 16divisional labor inspectors, whose jurisdictionscorrespond to one or several of the 21 regionsserving as the framework used in formulatingthe Plan for Economic and Social Development.The regions encompass departmental directo-rates in each of the 92 provinces and 240 laborinspectors.

Since 1945, the employment service has beenthe sole legal placement agency. To meet post-war reconstruction needs, France abolishedprivate employment agencies and required theregistration of all jobseekers and the listing ofall job vacancies with the service. This au-thority was not changed when the agency wasreorganized in 1960. Despite these powers, theemployment service lacks any comprehensivelisting of vacancies, and most workers seemunwilling to use the labor exchanges of theemployment service.

Unemployment Benefits

The French social security system does notprovide universal unemployment insurance,though some protection is given to the unem-ployed.

Unemployment relief, subject to a peans-test, was retained in a comprehensive revisionof the social security laws in 1944 and 1945.There are minimum unemployment relief bene-fits which vary by occupation and region, asminimum wage scales vary. Benefits may bepaid to unemployed applicants not over 65 whoare available for work and who register withthe employment service. Currently, all wageearners, including agricultural workers andmerchant seamen, are eligible if they haveworked 150 full days during the 12 monthspreceding their registration at the employmentoffice. Horneworkers and casual workers whohave worked 1,000 hours in the preceding 12months are also eligible.

The inadequacies of the unemployment reliefsystem partly explain why the National Em-ployers' Council and the three largest labor fed-erations in the National Collective Agreementof December 31, 1958 established a jointly man-aged unemployment benefit plan. It covers amajority of the workers employed in privateindustry and trade and provides benefits with-out regard to means. The collective agreementis financed by a contribution of 0.25 percent ofwages, 0.20 percent from employers and 0.05percent from employees.

The agreement recognizes that older workersmay find it difficult or impossible to adjust totechnological change and retraining or to findnew employment. The maximum duration ofunemploymeht benefits varies by age: Twelvemonths for workers through age 50, 20 monthsfor those 51 to 60, and for those over 60, untilthey reach age 65, when old age benefits becomeavailable. The maximum benefit amounts to 35percent of the worker's average wage duringthe 3 months preceding unemployment. Bene-"fits are paid regardless of the laid-off workers'resources and may be paid in addition to theGovernment benefits, provided the total doesnot exceed 80 to 95 percent of the wage pre-viously received.

The National Employment Fund

To meet ,the needs of French workers ad-versely affected by technological change, theNational Employment Fund was created on De-cember 18, 1963. The Fund, supervised by theMinistry of Labor, supplements present unem-ployment insurance plans and seeks to combinethe efforts of Government, management, andlabor to assist workers to cope with technologi-cal change. It represents French realization

that for industry to remain competitive,changes must occur and workers must makepersonal adjustments to new conditions of em-ployment. Thus, the Fund simultaneously givesworkers displaced by modernization a means ofaccommodating to new employment and servesto encourage the progress of industry.

The Fund may provide allowances for train-ing, relocation, and supplementary income forworkers forced to take lower paying jobs orunable to work. One category of benefits ispayable to individual workers by the Govern-ment from public funds. A second category ofbenefits for groups of workers in a particularoccupation or region are paid from a fundjointly financed by agreements between theLabor Ministry and occupational or interoccu-pational organisms, unions, and employers.

Two types of allowances may be paid from

public sources. The first guarantees that a dis-

placed worker who undertakes retraining will

receive at least 80 percent of his formerstraight-time earnings. The Fund may supple-ment other benefits for which the worker mighthe eligible; it is not a substitute for unemploy-ment insurance or other benefits, but makes up

the difference between such payments and the

80 percent guarantee. The second type of al-lowance reimburses workers for personal ex-penses of travel, resettlement, and movinghousehold goods if he leaves an area with con-siderable labor for employment in one with a

shortage.The second category of allowances is based

on agreements made between the Labor Minis-

try and business firms or occupational organiza-

tions for the purpose of protecting groups of

workers in occupations or regions sufferingfrom serious labor displacement. Displaced

workers who are unable to benefit from re-

training, and who take jobs paying less than90 percent of their former wages, may be eligi-ble for temporary decreasing allowances. Eacheligible worker may be guaranteed 90 percentof his former wage during the first 6 months onthe new job, and 75 percent.. for the next 6months, with the Fund providing the differencebetween earnings and the guarantee.

Another allowance benefits a worker over 60years .of age. When it has been determinedsuch a worker cannot take advantage of read-justment measures, a "leaving allowance" isprovided. For irnemployable older workers,these payments constitute a type of pre-pensionwhich can be paid until old age social securitybenefits commence. The payments may not beless than the unemployment benefits providedby law and collective agreement. Therefore, theFund may provide workers with an income ap-proximately equal to the old age pension whichis about 40 percent of earnings during pre-pension years. This assistance eliminates thehardship of regularly reporting to the unem=ployment office and preserves social securitycoverage during the benefits period. During1964, the first year of the Fund, 1,222 olderworkers received preretirement benefits under11 separate special grant agreements.

Because the Fund makes up the differencebetween wages or benefits available from othersources and- levels guaranteed by the Fund, afairly modest budget is involved. The FrenchGovernment allocated a total of 24 millionFr ($4.8 million) to the Fund in 1964.

The Fund represents a French solution tosome of the problems created by technological

progress and structural changes in the econ-

omy. Business and labor share the responsi-bility, along with the Government, for copingwith problems created by change. Business canutilize the facilities of the Fund by making ap-propriate financial contributions according toagreement. Workers must be prepared to make

some sacrifices involved in training, moving,

changing jobs, or premature withdrawal fromemployment. The Fund also serves to imple-ment regional development programs under the

Plan by assisting the transition of workers andbusinesses from depressed occupations or re-gions to others more economically viable.

13

Vocational Training and Retraining

By a 1946 decree, the French set up a systemof accelerated training to ease the transition toPeace for returning French veterans who hadbeen sent to Germany as war prisoners, to aidthe handicapped and other unemployed. Theneed at the time was for skilled workers to re-habilitate t.,.e economy, particularly in the engi-neering, construction, and iron and steel indus-tries. In 1959, the emphasis in adult trainingprograms shifted to meet the problems of work-ers whose skills are no longer in demand andthose who have no skills. The program was ex-panded to include general education, technicaland professional courses, and apprenticeshipcourses.

Vocational training for adults under thejurisdiction of the Ministry of Labor is or-ganized and administered by a private associa-tion entirely financed by the Government, theNational Interpr afessional Association for theRational Training of Manpower (AssociationNationale Interprofessionnelle pour la Forma-tion Rationelle de la. Main d'Oeuvre) (ANI-FRMO) . The ANIFRMO board is composed ofequal representation from the liinistry ofLabor, employers, and unions.

ANIFRMO operates about four-fifths of theGovernment-financed adult training centers inthe country. In 1962 ANIFRMO operated 113centers which gave instruction in 105 di.arenttrades, principally in the engineering, construc-tion, chemical, textile, and iron and steel indus-tries, according to local and regional needs. In-dividual firms or groups of firms administerand operate the remaining adult training cen-ters with partial Government subsidies forwhich they qualify by meeting required stand-ards.

Although vocational training for adults isintended for those 17 through 40, young work-

. ers are favored in the ANIFRMO program.'Trainees to be accepted must pass written andoral examinations, including an aptitude test,and a medical examination. Mcst successfulapplicantkfor trainipg are 17 through 35, al-though some older workers have qualified inspecial instanNces.

Basic training courses in the trades usuallyrequire from 4 to 6 months, while more ad-

.A*

anted courses at tile fechrlidal level inziy last-om 10 to 12 mo hs. At tire end- of the course,e trainee mti,st ss an examinhtion cbriducted

a board compised of representatives_ fromployers and th trade unions in orcl6r to

ive a certificateitof qualification in the occupa-:'t on. About 90 urcent of the trainees obtaint eir certificates.11

In 1964,.the nuinber of labor trainhig coufses,Governinent ekters increased by 9 percent

Io er 1963, and 4ie number of trainees corn-I eting training

i s 12 percent highei:. Theg al of the Fifth n was to train 74,000 work-

s a year.Ali workers ih training receife a basic al-ance equal to le legal minimum wageeur-

-r tly about $0, (360 Fr) a month.a dition, workerN covered by the NatiOnal Col-le Aive Agreement may also receive the .unem-p iyment benefit; to which they are elitledu der that agreiAlent. On an average, trainingal pwances amopt to about double uneilipldy-m nt assistancei

foco

foettieqlast

-Iowever, unenlployment is nof a,prerequisitetraining undthr the Frenclikstem. On thetrary, emploiP workefiare .eqouraged torade their kills under tl4d.14-aw of Social

velopment (059), which ijröV-i,aes trainingtechnicians, 4.aftsmen, physitists, chemists,

Workers sèlcing to reach higher occupa-al levels ch obtain training allowancesal to 60 to 40 percent of 9rnings on theirjob, dep-mcling on their pairticular circurn-ces. The enlibloyer whose iwg,Icer i,s4tOint

Lning pays rt of the aililowarkertnrn

ere-nder comes ftom public

'0

Pr motion bf Mobility .t 1

Variety ol/iricentives to (mobilitSi is pro-g

V1 d for bothnployers nt i.'cvorkers underthe! Economic '-And Sotial eVgiopment Fund(F ,n,ds de Del: loppement JEeo1ioniqte et So-cia 1 FDES) , stabIishedf by .,,T 4 d cree ofJ4 30 1955. he decree comliiifed the activi-t si formerly divided among: tile IndustrialCo ersion F4d, the Industrtal Dec' ntrahza-tionc Fund, anti thc Manpow* RelttlementFu41. The ne4program is adliiiniste ed by theMi stry of La or and the Min:istry o Finance.

14 administ king the induStrial incentives,,

the FDES may encourage firms to establishtheir operations in provinces with a good dealof labor and discourage firms from settling inthose without, such as Paris. The negative as-pects take the form of withholding buildingpermits or imposing high tax rates based onthe square meters of building space used. Thepositive measures include special premiumspaid to firms who demolish or vacate quartersin crowded metropolitan areas in favor of greenspace, housing, schools, or parking sites. In-centives for employers to move to job shortageareas are also available in the form of directsubsidies, loans, interest subsidies, free plantsites, and tax exemptions.

Firms that establish or relocate operationsin areas in which unemployment is critical mayqualify for subsidies which are determined bythe amount of investment and the new employ-ment involved. The maximum subsidy cannotexceed 20 percent of the investment, but isfurther limited by the number of new jobscreated. The subsidy base varies from 5,000

to 10,000 Fr ($1,000 to $2,000) per newworker depending upon the region and whetherthe facility is new, converted, or a partial con-version. Subsidies are also available fromFDES for the expense of retraining workers.In 1964, some 16,909 workers were trained orretrained at a cost of 13,446,136 Fr.

The FDES can also make loans to privatefirms from treasury funds or subsidize interestpayments on private loans made to firms lo-cating in critical unemployment areas. Since1960, commercial and service industries, as wellas industrial enterprises, have been eligible forloans.

A reduction in the transfer tax from 13.2 to1.4 percent is available to firms who set up,relocate, or increase operations in areas whereunemployment is prevalent. -

Since regional economic d'evelopment plansare comparatively recent, the effectiveness ofthese measures cannot be fully estimated. Onlyscattered data are available on interregionalmovement, transfer, or decentralization offirms. For example, in 1960, more firms setup establishments in Paris than the 24 whichleft the area. In 1962, on the other hand, it wasestimated by the French Employers Associationthat 39,000 jobs were created under regionalexpansion plans, and 249 firms in the Paris

area decentralized or moved out, creating 30,000new jobs in the provinces.

To stimulate the mobility of labor, the Re-settlement Fund provides aid to both firmsand workers. A firm may obtain financial as-sistance for retraining its workers incident tomerger, modernization, or decentralization. Ifa firm hires additional workers who have beendismissed by firms in other areas and who musthave training, for resettlement, it may obtaingrants from the Fund for retraining of theseworkers, either in its own vocational trainingprogram or in centers established by groupsof firms under the 1946 training decree.

To receive financial assistance for training,the firm must justify the need for training andthe added costs, and must agree to Governmentsupervision of all aspects 6f the training pro-grams including testing and selection of train-ees. The Government training grant, subject tonegotiation by the firm and FDES officials, maypartially or wholly cover expenditures for thewages of instructors and trainees, includingsocial security costs, for a period of 3 weeks to6 months, and the costs of equipment and mate-rials. In addition, the Fund pays the full costfor training instructors, testing workers, andtechnical and financial supervision. Aid wasgranted in 571 instances from 1955 through1962 in the amount of 18.7 million Fr ($3.7million) for retraining 28,115 workers.

Resettlement allowances are paid to displacedworkers who cannot find jobs without movingand to workers who accompany their firm whenit relocates or decentralizes. The allowancescover traveling expenses of the worker and hisdependents, the expense of moving 3 tons offurniture and, if housing at the new locationis not provided by the employer, a resettlementpayment of 2,000 to 3,000 Fr ($4004600), de-pending on the size of the family.

Approval of applications for resettlement as-sistance and payment to the applicant is a com-plicated and slow procedure which may require12 to 18 months. The fact that procedures areslow and complicated, and not many workersare aware of the benefits, may be why only3,414 applications were approved between 1955and 1962. Over half of these grants were madein 1961 and 1962, when a total of 2,059 applica-tions were approved. No more than 350 applica-tions had been approved in any preceding year.

15

MANPOWER POLICY

Officials of the Federal Republic ,of Germany

take the position that manpower policy can be

developed and administered only in "relation toeconomic and social policy, and that the three

must be constantly coordinated. The frame-work of the highly codified industrial relations

system, the social insurance framework, and

the policies of the European Economic Commu-

nity (EEC) provide a structure within whiCh

the manpower policy operates. The term social

policy iS used to cover programs dealing with

a wide variety of activities concerned with the

general welfare, that is, social security, prop-

erty accumulation, health, education, and hous-

ing. The concept of social policy encompassesthe whole population of the country, and theintegrating of private and public actions to

solve human problems.

In carrying out manpower policy, stress isplaced on the constitutional rights of the in-dividual, the individual's personal dignity, and

the avoidance of compulsion to secure full

employment and high productivity in an ex-panding economy. The process of adaptation

and expansion is built into the manpower policy

in order that the quantity and quality of man-

power will be available when and where needed

to meet changing demands.

In the early 1950's, the social and politicalproblem of West Germany Was to attain fullemployment. This problem was complicated by

the German partition and the loss of Germany's

former eastern territories, the dismantling of

West Germany industries, and the entrance of

over 13 million expellees and refugees into WestGermany before August 1961. Most of these

persons were directed to the agricultural area,in which food and housing could be made avail-

able, but in which employment had to be cre-

ated for those able to work. Among them were

persons well-trained and highly skilled foravailable work, as well as many needing train-

ing.The current problem is securing much needed

skills in a very tight job market, upgrading theemployed to provide entrance jobs for youngworkers, and preventing unemployment wheretechnological and other changes cause a sur-plus of workers arising from the elimination of

jobs. The Germans have recently had less than

one-half of 1 percent of the 1964 labor force

of about 27 million unemployed, and over one-

half million job vacancies unfilled. More than /

million foreign workers have been brought into try to fill the gap.

DETERMINATION OFMANPOWER POLICY

Although haunted by the memory of thesevere unemployment of the 1930's and afterWorld War II, the West Germans are as yetunwilling to set up any planning agencies be-

cause of their experiences under the NationalSocialist dictatorship. Only agencies to helpand advise, not to restrict personal freedom,

are politically ,feasible in the Federal Republic.

A law of August 14, 1963, authorized the estab-lishment of a Council of Economic Advisers to

examine how to simultaneously insure the fourbasic aims of the Federal Republic: Price

stability, high employment, equilibrium in thebalance of payments, and a steady, adequate

growth within a free-market economy. The

objective of the Council is to facilitate the for-mation of public opinion.

In February 1964, the President of theFederal Republic appointed as the five members

17

of the Council two college professors, two re-tired Government officials, and the director ofan economic research institute. The first annualreport of the Council, describing the existingeconomic situation, its possible trends, andpoliticoeconomic conclusions was issued inNovember 1964 and published by the FederalGovernment, as required by the law establish-ing the Council.

The responsibility for the development andadministration of the manpower policy restswith the Federal Government. Programs forinsuring the four basic aims of the FederalRepublic of Germany are developed and pro-posed to Parliament by the various agencies ofthe Government which are responsible for theadministration of the policies. Because of theinterrelationships of the four aims, theseagencies include not only the Ministry of Laborand Social Affairs, but also the Ministries ofEconomics, Interior, Family and Youth Ques-tions, Food Supplies and Agriculture, Trans-portation, Housing, and the Treasury.

The Ministry of Labor and Social Affairshas overall responsibility for the, full employ-ment program. The administration of the pro-gram requires the matching of workers andjob vacancies, the vocational guidance of youngworkers, the training of workers, and thetransfer of workers from areas where train-ing or jobs are not available to ones wherethey are.

The present legal framework for the fullemployment policy is based on the 1957 Lawon Labor Placement and Unemployment In-surance, as amended April 25, 1961. As a re-sult of this law, the Federal Institute for LaborPlacement and Unemployment Insur a n c e(Bundesanstalt fur Arbeitsvermittlung undArbeitslosenversicherung) (BA) was estab-lished as a self-governing body under the directoverall supervision of the Labor Ministry, tohave a monopoly on labor placement. The di-rectives of the Board of Management of the BAbecome part of the legal structure, as do therelevant ILO Agreements ratified by theFederal Republic.

A neutral, semiofficial organization for laborplacement and unemployment insurance wasfirst implemented. by a law of July 16, 1927',which took labor placement and unemployment

18

insurance out of the hands of the Ministry ofthe Interior and transferred those activities toan autonomous agency based on the principlesof responsible cooperation between employers,workers, and Government representatives. Thelaw of 1957 confirmed this method of operationfor the Federal Republic by establishing theBA.

The administrative framework of the BA ismade up of the Administrative Council and theBoard of Management, appointed by the Min-ister of Labor and Social Affairs and composedof an equal number of honorary representativesof employees, employers, and the public. ThePresident of the BA, his permanent deputy, di-rectors of the BA regional offices, and theirpermanent deputies are appointed by the Presi-dent of the Federal Republic upon the recom-mendation of the Minister. The general policydeveloped by the Administrative Council andfile directives of the Board of Management aresubject to the approval of the Minister of Laborand Social Affairs.

The Administrative Council, with 39 mem-bers, is responsible for the general policy on em-ployment and for developing the budget. TheCouncil has had to handle the problems of massunemployment of the early thirties and the im-mediate period after World War II, the lack ofoccupational training of the young, the integra-tion of the refugees, the transition to full em-ployment, and the extreme scarcities of severalclassifications of workers.

On the national level, the Board of Manage-ment, which consists of three representativeseach of the employers, the workers, and theGovernment, acts for the BA in legal matters,issues administrative rulings for the conduct ofits affairs, and presents the yearly budget toParliament.

The regional and local offices of the BA areadministered by tripartite regional and localcommittees made up of about 5,000 voluntaryofficials who hold office for 4 years. Theseofficials are appointed by labor, management,and Government organizations and representthose groups on the committees. The chairmanof each committee is elected annually, 1 yearfrom the employers' representatives and thenext year from the workers' representatives.

The BA has 19 regional offiCes, 146 employ-ment exchanges, and 568 branch offices in theFederal Republic, including West Berlin. Thelatter are mainly concerned with placement andvocational guidance. The branch offices are sub-divided according to type of worker placed.Office locations are based on population, eco-nomic activity, and transportation ; politicalboundaries receive secondary consideration. Theday-to-day operations of the BA are in thehands of its president, the regional controllers,and the employment exchange managers.

FUNCTIONS PERFORMED INIMPLEMENTING MANPOWERPOLICY

Forecasting

Continuing surveys of manpower develop-

ments are made by the Labor Ministry throughthe BA to provide data for forecasting the de-mand for and the supply of manpower so thatsteps may be taken to avert unemployment,promote upgrading, and plan a program forthe training of young workers. A system ofregular reporting of manpower supply and re-quirements by the local employment exchangeoffices, through the regional offices to theLabor Ministry, provides current information.Employers must report hirings and give writtennotice to the Employment Exchanges of thelayoff of five or more workers. Information onvacancies is secured through the placementoffices ; employers are not required to reporttheir vacancies, but most of them do. The Min-istry's monthly labor and social statistical re-port includes information on trends in jobvacancies (new openings and those represent-ing replacement), employment, unemployment,job placements, vocational guidance, and un-employment insurance.

A joint committee composed of the Ministryof Labor and the Social Structure and the BA,

and of scholars and representatives of man-agement and unions examines the manpowerreports. The members of the joint committeealso draw on census-type statistics from theFederal Statistical Office. After the trends are

established, steps are taken to keep the laborplacement system functioning smoothly by pro-viding training, employment, or whatever isdeemed necessary.

Vocational Guidance and Placement ofYouth

The employment exchanges are made up ofplacement and vocational guidance sections. Theemployment service has a monopoly in voca-tional guidance. Neither teachers nor theschools are permitted to do vocational counsel-ing or psychological aptitude testing for guid-ance purposes. Vocational guidance within themeaning of the Law on Labor Placement andEmployment Insurance includes any advice orinformation given on the subject of the choiceof a profession. Special training is given bythe Ministry of Labor to the vocational ad-visers, who have the advice of specialists fromeach of the industries and trades, as well aspsychologists.

General information on occupations and thetraining required is supplied to y'oung peoplestill in school and to their parents. Printedmaterials, as well as lectures, films, and dem-onstrations, are used. Individual guidance isgiven each student on the basis of his educa-tion and medical reports. Close coordinationis maintained with the Ministries of Culture ofthe Laenclers, and with the educational authori-ties in the local areas. Where training in thecareer of his choice is not available to a youngentrant into the labor force in his home area,the vocational guidance service can providefinancial assistance to enable him to go to wheretraining is given.

The vocational guidance and placement serv-ices are respOnsible for the placement of ap-prentices, trainees for semiskilled jobs and un-

skilled workers. The unemployment amongyoung workers is negligible. As youths come out

of school, they enter apprenticeship or othertraining. In addition to advising juveniles, thevocational guidance and placement service alsoadvises adults who wish to change occupations

or need information and advice on vocationaltraining. Job vacancies are cleared regionallyand nationally. Since late 1961, the Common

19,

Market countries, including West Germany, alsoclear job vacancies through the European Eco-nomic Commission. Separate vocational guid-ance and placement offices are operated forwomen and for foreign workers. The placementdepartments and the unemployment insurancedepartments cooperate closely to try to sectueemployment for each person upon his leavingschool or becoming unemployed.

The placement service also is responsible forthe promotion of vocational training and re-training. It provides youth hostels for youngtrainees and housing for transferred workers.

In cases of mass unemployment, the Ministryof Labor has developed "productive unemploy-ment benefits." The unemployment insurancefunds are used for public works, which provideemployment in line with their usual jobs forthose who become unemployed. Public worksto provide jobs are a fundamental part of theGerman manpower policy under the jurisdic-tion of the BA.

Training of Workers

Education in West Germany is primarily fi-

nanced by and is the responsibility of theLciender or states, of which there are 10, ex-cluding West Berlin. The schools are free to allpersons between the ages of 6 and 19, or until"maturity examinations" (Abitur) are passed.The usual school-leaving age is 14, althoughsome Laender specify 15, thus providing 9rather than 8 years of schooling. Vocationaleducation begins at 14 or 15, or the school-leaving age. Until the age of 18, the youngGerman worker is required to attend a voca-tthnal school at least 8 hours a week. Em-ployers must release such a worker 1 day aweek. The number of school-leavers in Ger-'many decreased to almost one-half million dur-ing the 1950's, but is expected to rise until itis a little over three-fourths of a million by

%

1970.4

There are 30 home-folk high schools, centersfor adult education, which provide residencecourses on all aspects of present day life. The1,000 Peoples' Universities (Volkshochschulen)are for the higher education of adultsto ad-

20

vance an adult's practical knowledge and en-able him to gain proficiency in a particularrealm of knowledge.

New Entrants to the Labor Force

Training of young workers in the FederalRepublic of Germany is carried out by theemployer, with the Government providing closesupervision over quantity and quality of ap-prenticeship training.

The education and training of apprentices isadministered locally by the Land govern-ments, under the supervision of the FederalMinistry of Economic Affairs. The agenciesfor approval and supervision of the programsfor apprentices are two corporate bodies speci-fied under the law: The Chambers of Industryand Commerce (Industrie-und Handelskam-Titer) for training in large-scale industries, andthe Chambers of Handicrafts or ArtisanTrades (Handwerkskammer) for training.inthe craft-trades.

The training for most trades is 3 years. Eachprogram is standardized, and spelled out in asyllabus which must be followed by the em-ployer. The appren,xeship programs are pre-pared by the nonofficial Study Research Centerin Vocational Training in Industry, with ad-vice from employers and unions: Courses areplanned, levels of accomplishment determined,and the terms of the agreement between theapprentice, the school, and the company aredecided. It is sponsored by several employers'organizations and enjoys de facto recognitionby the Ministries of Economics, Labor, andEducation.

The problem of adequate training in smallerestablishments has been partly resolved by localtraining workshops set up by companies andemployers' organizations. There are severalthousand of these interplant training pro-grams, in part financed by the Government.

Special attention is being given to the diffi-culties faced by rural youth in securing train-ing to fit them for modern agricultural as wellas nonagricultural careers. Apprenticeshipchanges have been developed to enable youngfarmers to industrialize the family farm orto secure employment on mechanized farms.

Through the Common Market exchange pro-gram, some young German workers are able toreceive part of their training in other countries.West Germany will have had 1,500 peopleparticipating in such exchange programs dur-ing 1965. The Government makes the arrange-ments and pays travel expenses, allowances tooffset losses in wages, and other expenses. Ger-

man workers are replaced in their jobs byyoung workers from other Common Marketcountries.

Adult Training Programs

The German manpower policy recognizesthat workers may haveto change jobs or careersmany times during their working lives. Train-ing of adults is part of the permanent programunder German manpower policy; it is not de-signed just to aid the unemployed.

Programs to help a worker.- gain upgradingor promotions in his occupation, called "occu-pational development measures,'-' are carriedout by the BA. Qualified institutions, such astechnical colleges, vocational schools, unions,and trade association training centers may becalled upon to give a specific program. Thelocal employment exchange is required to de-termine whether a course can be given moreeconomically by an agency other than the Gov-ernment.

The local employment exchange develops aprogram to meet the training needs in a lo-cality, and submits it to the regional office.If it covers more than one Land, or requireslarge financial aid, the program must be ap-proved by the director of the BA.

Instruction is given in a classroom, not, onthe job. Under BA regulations, courses are tobe no longer than 13 weeks; some exceptionspermit 26-week courses. However, an indi-vidual trainee may, with special permissionof the president of the BA, be registered forsucceeding courses, so the training may beextended for several months.

All training, whether for career advance-ment or to enable workers displaced by theelimination of jobs to learn new occupations,is financed from the unemployment insurancefund and is free to the worker. Both eligible

trainees and teachers are paid out of that fund.A worker receives between 40 and 90 percentof his usual earnings, "pocket money" (givento be used for lunches), and a family allow-ance. Where necessary, he may receive grantsor loans to maintain himself and family, payfor training materials, the necessary travelexpenses, and maintain the national insurancehe would have if employed. Trainees not eli-gible for unemployment insurance receive un-employment relief, based on a means test, withthe above supplements.

In addition to the Government training pro-grams given under BA auspices, many otherprograms are carried out by the unions. Forexample, the white-collar workers had 75,000workers in 500 schools in 1964. The union re-ceived about 20 percent of the expense of theprogram from the Government to pay forteachers and classrooms.

Labor Reserves

Great attention has been given in West Ger-many to assisting older unemployed workers,including those whose unemployment has beenlOng term, to find employment. The older work-er problem has been especially acute in WestBerlin.

Training, retraining, and advanced trainingprograms have been set up for the unemployedworker over 45. The programs were used atfirst during the 1950's to determine whetherolder workers could qualify for jobs throughretraining. The, cost of training was considerednegligible because unemployment funds werediverted to this purpose rather than unemploy-ment insurance payments. The type of traininggiven depended on the manpower needs of thelocality. About 11 percent of the first grouptrained secured permanent employment. Otherswere transferred to regular adult trainingprograms for further training. Retired work-ers are given the opportunity to reenter thework force for several kinds of work for spe-cific periods. If work is not available, theyreceive unemployment benefits.

Germany has also recently emphasized theemployment of women to alleviate the extremeshortage of workers. As men have been trained

21

and transferred to more urgently needed occu-pations, women have been trained and em-ployed to replace them. Some women who havebeen trained prefer work on a part-time basis,and women in rural areas have thus been ableto take on some work in industry.

West Germany has imported more than amillion foreign workers from Italy, Spain,Greece, Turkey, Portugal, Morocco, and othercountries. The recruitment is done by the BAwhich maintains offices in each of the afore-mentioned countries. A German company re-questing a foreign worker pays the BA a feefor recruiting and transporting the worker tothe Federal Republic. The employer must guar-antee the worker a job upon arrival, and ap-propriate housing. Arrangements have beenworked out between the German Governmentand each of the Governments of origin to pro-tect the foreign worker, providing equal rightswith the Germans as to salary, training, health,and unemployment benefits. In some cases,the initial training is given in the home countryand continued on the job by the German em-ployer. Some of the cost of training at homeand abroad is financed by the Common MarketSocial Fund. The average age of the immi-grants is lower than the average age of theinhabitants of the Federal Republic.

The law requires each employer of more than15 persons either to hire a quota of severelydisabled workers or to pay into a fund fromwhich the Ministry of Labor pfovides accom-modations and rehabilitation centers for thedisabled. The Ministry has given much atten-tion to the rehabilitation and training of handi-capped persons to fit them to return to an activeworking life.

Employ and Mobility't)4'

The pia. ryice of the employmentexchanginIçmany has an excellentreputation AmOg-remp yers and workers. Ithas a monopoly of employment agency func-tions for all occupations except those such asfilm star and opera singer, for which privateemployment agencies are licensed. The BA hasrecently increased its services to artists. Theemployment exchanges handle about 40 to 50

22

percent of all placements and are able to placebetween 80 and 90 percent of all those whocomplete training programs. The percentageis much les.; for older and for long-term unem-ployed trainees. Even so, the number of un-employed in these groups has been greatlyreduced since 1950. From 50 to 60 percent of.all hiring is done through. direct recruitmentby employers.

The decrease in employment in agricultureand mining has provided manpower which hasbeen trained for and transferred to other in-dustries. In some cases, planned movement ofworkers is the method employed; in others,new industries are encouraged to establishthemselves in former mining or agriculturalareas.

Aid for the unemployed worker to move toa job was expanded to assist the post-WorldWar II refugees. It is also available to aworker who has received notice that he will bedismissed, or who for any other reason needsto transfer to another job. Subject to a meanstest, worker and family may receive travel ex-penses, a per diem allowance, transportationof household possessions, a family separationallowance, and an allowance to take care ofthe family until the worker receives pay onthe new job. The employment office in thearea from which he moves handles the case.

Advance Warning of Dismissals

Temporary ending of work for some of afirm's employees due to unavoidable reasons,such as breakdown of machinery, lack of or-ders, or seasonal fluctuations, may entitle themto receive up to 90 percent of their regular payfrom the unemployment insurance fund for amaximum of 6 weeks within a period of 1 year.They are not listed as unemployed, but continueon the employer's payroll with their statusfully protected. The law spells out the propor-tion of total working time that must be workedto qualify. This does not apply to work for aspecific contract period.

Special restrictions concerning terminationof jobs have been provided for the buildingtrades. Dismissals by employers because of badweather are prohibited by a collective agree-

ment from November 1 through March 31.

This makes possible a lower unemploymentrate in West Germany during the winter thanpreviously, because building construction work-ers are not laid off in the winter and then re-employed during the summer, as was theformer practice. Employers are thus able tokeep their force of skilled workers intactthrough the winter. When those employed in

the building trades cannot work because ofthe weather, the BA pays them "bad weathermoney", which is a large percentage of theirwages, out of the unemployment insurance

fund. ,

The BA and other agencies of the Govern-ment, such as the Ministry of Housing, haveencouraged new methods of building whichmake winter work possible. Since about 60percent of all construction is influenced by theGovernment (that is, public construction andGovernment subsidized housing), it is able toaffect considerable increase in the hours of

work that can be performed during the winter.Incentives are paid to all those ordering winterbuilding construction for Government-subsi-dized projects to offset part of the extra costof such work. The BA also helps constructioncompanies finance equipment which enablesthem to work in bad weather. A builder mayreceive up to 11 percent of gross wages paidout as compensation for the added costs of

winter construction. He may also receive loans

to help him prepare the site for building. Con-

struction workers receive loans and subsidiesfrom the BA to enable them to buy the clothingneeded for winter work. .

The employer is required by statute to giveadvance notice to the employee of the termi-nation of employment. The termination is Sub-

ject to review by the Works Council, mad.1 up

of employee representatives within the bar-gaining unit and the Labor Court, (specialcourts which have exclusive jurisdiction in

civil suits involving labor matters) . The length

of advance time depends upon the method

of wage or salary payment (daily, weekly,monthly) . There are special legal safeguardsfor some groups of workers. For example, in

June 1965 legislation was added to give specialprotection of job rights to women on maternityleave.

Employers in small companies are obliged

to notify the local employment exchange inwriting of the dismissal of more than five work-

ers. For larger companies, the minimum maybe 50 workers; the law states it as a percent-.

age of the normal work force. The commentsof the Works Council have to be affixed to thenotification. A period of 1 month after noti-fication must elapse before the dismissals canbecome effective. The period may be extendedto 2 months by the employment exchange, orin some cases dismissals before the month isup may be approved.

The purpose of the notification is to deterthe employer from unnecessary dismissals, andalso to enable the placement section to take

steps to prevent unemployment' of the dis-

missed workers. Dismissals do not require theapproval of the employment exchange, nor can

the exchange prevent them, since to do somight endanger the economic health of acompany.

Public Works

The BA has power to organize relief workand finance it through subsidies or loans outof the unemployment insurance fund. This."productive unemployment assistance" not onlycreates jobs for the unemployed, but also makesproductive use of funds which otherwise wouldbe used to pay unemployment benefits or as-sistance. Unemployment benefits are a ratioof the insured person's wage or salaryi/and theyrange from about 80 percent of the wage forthe lowest income workers to about one-third

of 'the highest salary listed. The worker alsoreceives family allowances and his social se-curity coverage continues to be maintained.

The relief work program is limited to proj-ects which have value to the community andthe whole economysuch as road constructionand improvements, reforestation, and recoveryof waste lands to attract new industry to the

area. To provide jobs for older, unemployedwhite-collar workers, projects of a cultural orscientific nature, such as work in libraries ormuseums which utilize their acquired skills, are

undertaken. Preference is given to projectslikely to lead to permanent jobs. Usually theworker would not be employed more than 13 **

23

weeks on the project itself, but in special casesthe period may be extended to 39 weeks in 1year. For example, "Emergency Programs"were used to provide 9 months' employmentin public agencies on a rotation basis for olderwhite-collar workers who were on unemploy-ment assistance, in order to spread employmentwith a limited number of jobs.

Regional Development Programs

To secure a better geographic balance be-tween employment opportunities and the popu-lation--4oth of which are rather heavily con-centrated in certain areasthe Federal Repub-lic has three special programs for industrialdevelopment. These are the reclamation areasprograms, the zonal border areas programs,and the central localities programs in under-developed rural areas.

Constitutional and political hurdles preventcompulsion on industry to invest in any sectionof the country. Germany tries to achieve thedesired balance through loans and grants; thereare no tax advantages except in the borderzones.

The zonal border areas, established in 1953,cover a strip 25 miles wide along the Iron Cur-tain and include some territory in four La-ender. These same states contain all but a fewof the reclamation areas.

Since 1959, special attention has been paid tothe development of central localities, each care-fully selected as the center for the developmentof industry in a rural region. There are now 31of these small- and medium-sized towns. Theobjectives of the central locality program areto provide employment for displaced agricul-tural and mining workers, to stem the move-ment of people into congested urban, areas, andto increase employment opportunities forwomen.

The development programs have been con-tinued during the last several years of highemployment and prosperity, especially in thecentral localities where unemployment and ua-deremployment are still a problem. Also, in-tensive placement work Is being done to findjobs for workers nearer their homes so they

24

need not spend more than 2 hours per day intravel.

The Interdepartmental Committee for Prob-lems of Distressed Areas, with representationfrom all the ministries dealing with economicand social problems, in 1951 set the criteria forthe reclamation areas, then called distressedareas, and developed the general policy for as-sistance to the areas. It has not been politicallyfeasible to remove areas from the list, nor toadd many additional ones. The chief of the Di-vision for Regional Economic Problems of theMinistry of Economic Affairs is the chairman.The division also supervises the central locali-ties development programs. Both the FederalGovernment and the Governments of the La-ender participate in the assistance to the recla-mation areas. The administration of the pro-grams is the responsibility of the Landconcerned.

The Federal Government through its Townand Country Planning Research Center pro-vides information on the locations of industriesand possible sites for new ones. The LaenderGovernments Planning Departments then drawup development programs based on detailed in-formation regarding those locations and sitesgathered by the departments in their own lo-calities.

Unless they are small-scale, Land proposalsfor regional assistance must be approved byIMNOS. After approval, the Economic AffairsDepartment of the Land has full responsibilityfor selecting, financing, and administering theprograms. If the program is too costly for oneLand Government or is politically importantfor the whole country, for example in theborder areas, the Federal authorities help inits development and administration.

The Ministry of Economic Affairs can makeloans and grants to public and private nonprofitorganizations in development areas to help cre-ate jobs in industrial and handicraft enter-prises or modernize existing facilities, expandtourist facilities, improve the infrastructure(that is, roads and public utilities) and agricul-ture, and expand vocational training. Emphasisis on encouraging small enterprises in the re-gions. Eighty percent of the Federal funds fordevelopment of the central localities are to beused for infrastructure improvement, agricul-

ture, and tourism; 20 percent is for loans forthe installation and extension of industry.Loans can also be secured from the unemploy-ment insurance fund.

Additional benefits are received by the borderareas in the form of special tax and transporta-tion benefits, and preference in the placementof Government contracts. For economic andpolitical reasons, it is considered desirable toencourage residents of the border areas to re-main there. Large sums of money to provideassistance of the types listed above have beenallocated to West Berlin which suffered themost severe damage in the 1945 partition ofGermany.

Those West German iridustries and handi-craft enterprises which can prove to have beeninjured by the 1945 division of Germany or_the1961 sealing of the border in Berlin have beenentitled to special low interest rates on loans

------from-the-Goverinnentfor a limited period of 3to 5 years.

,

Funds to carry out the assistance programsfor the regions must be requested annuallyfrom Parliament by the Minister of Finance in

his budget. Federal funds are used to supple-

ment private investments and those appropri-ated by the Laencler. Unemployment insurancereserves are also used in several of the pro-grams to help provide loans or grants whicheventually will create permanent jobs.

Loans and grants for the development pro-grams are made for a period of 15 to 20 years,the length of time depending on the type ofproject. The interest rates also vary.

Large sums are available from the unemploy-ment insurance reserve funds, as well as fromother Federal funds, for the building of low-rent housing in the development areas. Oftenhousing is essential before industry will con-sider establishing plants in such areas and be-fore workers can be encouraged and persuadedtor-transfer--to-employment-there.. --

..

,

25

The longstanding commitment of Great Brit-ain to a policy of full employment acquired anew setting in 1965 when manpower policy be-came an integral part of the first National Plan,which establishes plans for 1970. The planseeks a 25 percent increase in gross domesticproduct between 1964 and 1970 for the purposeof creating a dynamic and economically justBritain. To make British goods more competi-tive in world markets as one means for improv-ing the balance of payments situation, the planrecognizes the need to improve productivity.Emphasis is placed on investments in newequipment, methods, and techniques for im-proving the design, quality, and cost of Britishproducts. Another integral part of the plan isan incomes policy aimed at keeping increases in

money incomes geared to increases in real out-put. This policy for containing inflation is suf-ficiently fleXible to respond to changes in de-mand and technological developments that alterthe structure of the economy.

MANPOWER POLICY

To reach the economic growth goal estab-lished by the National Plan requires full ern-.ployment, increased productivity, and filling200,000 jobs estimated to be in excess of theavailable manpower by 1970. Emphasis is given

to training manpower within each industry forthe new production methods and techniques re-quired for modernization of production. Manyreadjustments for the work force are implied inthe National Plan, but economic security of theworker will be maintained and insured throughearnings-related unemployment insurance, re-dundancy compensation (compensation toworkers whose jobs have been eliminated), im-proved transfer grants, retraining programs,and preservation of pension rights. Programsfor expanding the labor force, such as counsel-ing of youth and marginal groups, are requiredto meet national goals. Flexibility in the in-comes policy to accommodate changes in theeconomy for fuller utilization of scarce man-power is recognized. Adjustment of the re-gional industrial development policies, to makefullest use of manpower, has become a part ofthe manpower policy. Many local and nationalorganizations are involved in shaping man-power policy to the national goals of GreatBritain.

DEVELOPMENT OFMANPOWER POLICY

The planning and administration of policyfor economic growth in Great Britain have un-dergone drastic changes recently. Any attemptat evaluation is premature. Efforts are beingmade for greater participation of all elementsof the society in the development and imple-mentation of a program of economic growthand the manpower adjustments to support suchgrowth.

The Department of Economic Affairs(DEA) , established in October 1964, is thechief architect of the National Plan. However,assistance from all Government agencies wassecured in its development. Assuming someresponsibilities formerly ,belonging to theTreasury, the DEA is most specifically con-cerned with long-term economic developmentpoliscy. Because it is a coordinating agency, theDEA is also involved in development of re-gional policy, industrial policy, economic plans,and harmonization of all Government agenciesrespecting economic plans and policies. In co-ordinating Government programs for imple-

27

menting economic growth policies, the DEAplans an important role in shaping manpowerpolicy.

Great Britain gave serious concern to long-range national economic programing in 1961with th establishment of the National Eco-nomic Development Council, popularly knownas NEDDY. This independent economic ad-visory agency continues to function in the de-velopment of economic policy, including man-power policy. The 20-rr ember council has equalemployer and trade union representation.NEDDY is chaired by the first secretary ofstate, who, as head of DEA is also secretary ofstate for economic affairs, and the Governmentis also represented by the Minister of Labour,the president of the board of trade, and theMinister of Technology. The small NationalDevelopment Office is the secretariat toNEDDY and is now responsible for keepingunder review economic developments related tothe National Plan. Since its inauguration,NEDDY has made economic projections andrecommendations for changes in the economicstructure, changes that involved mobility oflabor and upgrading of the labor force.

The industrial policy functions of the DEAare keyed to the work of the Economic Develop-ment Committees, known as "Little Neddies,"which have been sei; up in the major incl'istriesby NEDDY. Chaired by non-Government per-sonnel, the Little Neddies are composed of in-dustry, trade union, and Governmerit personnelwith the staff of NEDDY and DEA represented.The Little Neddies plan the industry participa-tion in the National Plan, pinpoint weaknessesin the fulfillment of goals, and recommendpolicy changes. The Little Neddies are espe-cially concerned with efficient use of scarcemanpower resources and the development ofnew production techniques and training pro-grams to meet the production goals. There isclose liaison between the Little Neddies andthe Training Boards within industry, whichwere established by the Industrial TrainingAct of 1964. The National Economic Develop-ment Office acts as secretariat to the LittleNeddies as well as to NEDDY.

A division on regional policy in the DEA isresponsible for harmonizing regional policieson employment, land use, transportation, con-struction subsidies, and incentives to regional

28

growth wOr the Ncional Pian. !nig divisionis particulirly rekeFtive to! the !,,re4riiinenda-tions of Rekional Eibnomicvoluntary liodies corpposed Of incliviNals' fromlocal gove ments, I:tompanies, itra?ft ,

universiti s agriculfire, and ic)ther experltst En-courageme t is givgn to plans ihat jfelR tcrire-duce region 1 unemOoyment prphleips, The linVbetwe onal iemploymehtgro+th is r4ognized by NEDDYrad thip DEA,:.3.nd the re uction of regional ,d0PArities, ingro-yvth . an emplo ment is beik- !attemptedthrough the coordi tion medlar:$.4.'1?y 'whichthe Nationa _Plan as devel9e4

he imp '. ementatiori tia Nationalexpanding trainitig *ipf Fgrgim forneeds i:of the chitnRili treConomic

Grea Britain. / The iidustrialt. of 19 , administ6et ti.ie Min-ur, prop-ides for Irlduistit Trainingsed employer land trade union

es. ese boards 1,40: thaikedonsibillAy for deierminingin a Eingleindu4tri 04-4.1. devising

rams,tirichiding th&ierient, of in-ng ofp the trainiilg4 The -Work ofoaroz4 must be 'f,ponated withIan , or economic Opth;

a

Keyed toPlan is themeeting thstructure oTraining Acistry of LabBoards cornrepresentatiwith the resing needs witraining produstry finanthe trainingthe National , .

Other Gocerned wit 1

of rnanpogrowth. Forogy sponsorsics and machiwith the skillThe Ministryinvestment iing growth tasponsors theand Sugar Coticipates in demanpower prr,

IMPLEMENPOLICY

British manby the MinistTrade, althoucarries some

rnm departtneilks are con-e d elopment 'specific facetspoli y as relatedl to edonomic

.xample, the Ministry; of Technoj-he Little Neddies in.* electron-e t industriearld as concernedainipg needs infth4 industries.of Technology? alfid.: en:Couragesadv :need techbolOg'y fOr meet-ets -The MinistrygAgriculture ;

ad '-focessing inct.the Chocolateec onery Committees ,itnd par-

elo ng their g w;t11 tatgeti andknsecti

IN

I

*41

* -;

MANPOWER.'"

" 1

r policy is :,C,a*ed mit chieflyLalyiur dnd; fhe Board of

he Ministy: of EiducationfOr vOcationtil

4 I

,1

guidance. The National Joint Advisory Councilis a source of advice and recommendations onnational manpower problems to the Ministerof Labour, who serves as its chairman. Thecouncil is made up of representatives of unions,employers' associations, and the nationalizedindustries. Local Employment Committeesperform the same function of providing adviceand recommendations in regard to manpowerproblems at the local level. These committeesserve as a channel of communication to theMinister of Labour.

The Ministry of Labour is responsible forthe Employment Exchange Service; the YouthEmployment Service ; the rehabilitation, train-ing, and placement of the disabled ; the collect-ing of employment and unemployment statisticsand special manpower research projects ; thearranging of importation of workers fromabroad ; the assistance of workers who wish totransfer to other areas of Great Britain; theGovernment Training Centres ; and the adminis-tering of the Industrial Training Act of 1964.

The Board of Trade administers the indus-trial location program which is designed to pre-vent further concentration of industry in thecongested areas of Great Britain and to inducenew plants to locate in designated developmentareas.

Forecasting Manpower

British manpower statistics provide the basisfor forecasts of manpower demand and supply.These statistics include annual data on inter-regional movements of workers, based on a 1percent sample of the National Insurance rec-ords of the Ministry of Pensions and NationalInsurance, the British social security agency.In addition, the Ministry of Labour's annualand monthly estimates of employment and dataon unemployment and unfilled vacancies by

industry, recently supplemented by annualfigures on employment by occupation in manu-facturing, show which industries and occupa-tions are expanding or contracting. Quarterlystatistics on turnover in manufacturing byindustry are also published. To provide addi-tional data, the Ministry of Labour is makinga study of labor mobility, including all kinds ofjob changes, workers' education and training,

reasons for changing jobs, and workers' atti-tude toward moving to particular parts of thecountry. In 1961 and 1964, special surveys ofthe characteristics of the unemployed weremade by the Ministry of Labour to determinefactors restricting occupational and geographicmobility.

The establishment of the Manpower ResearchUnit of the Ministry of Labour in 1963 increasedthe capaOLy of the British Government to dealwith manpower problems. The unit has thusfar prepared manpower forecasts as well asspecial studies of the industries and occupationslikely to be affected by technological changes.Its projections of population and manpower to1973, with estimates of manpower require-ments for the various economic sectors to 1968,disclosed anticipated surpluses and scarcitiesof specific skills and indicated the need fOr moreefficient use of manpower and for increased pro-ductivity and mobility. A pilot study of theproblems of manpower forecasting withinlarge- and medium-sized firms in the iron andsteel, engineering, shipbuilding, and aircraftindustries indicated the kinds of major changesin their work force that companies expect inthe next few years. Other special studies thusfar hav e covered manpower in the constructionindustry and the effects of cmputers on office

employment.Forecasts of manpower needs and require-

ments, including a detailed analysis of the in-fluence of technological and other industrialchanges on the skills required, must be de-veloped by the Industrial Training Boards beingset up by the Ministry of Labour under theIndustrial Training Act of 1964. The Ministerof Labour and the boards have power to requireemployers to keep records and make returns sothat the necessary information will be available.In preparing forecasts of future requirements,the boards will have the help of the Ministry ofLabour's Manpower Research Unit, the Depart-ment of Economic Affairs staff, and the Eco-nomic Development Committee for the industry.

Vocational Guidance and Placement ofYouth

It has been estimated that over 90 percentof those who leave school at the earliest per-

29

missible age are given vocational guidance andthat about half of those given vocational guid-ance are placed in their first jobs by the YouthEmployment Service (YES). The service wasestablished by the Employment and TrainingAct of 1948, under the Ministry of Labour, butthe act gave local education authorities theoption of operating the service under detailedplans approved by the Ministry of Labour.Seventy-five percent of the expenses of theservice set up under this option are reimbursed.Where the education authorities did not exer-cise the option, the Ministry of Labour operatesthe Youth Employment Office through the localemployment exchange. In 1961, about 70 per-cent of the local education authorities, whorepresented about 80 percent of the school-leaving population, had elected to operate localYouth Employment Offices.

The Act of 1948 also established an advisorybody to the Ministry of Labour called the Na-tional Youth Employment Council. This coun-cil has representation from educational au-thorities, the teaching professions, employers,unions, local youth employment committees,and others with knowledge and experience inyouth problems.

The general responsibility for the administra-tion of the Act of 1948 has been delegated to theCentral Youth Employment Executive (CYEE),consisting of representatives of the Ministriesof Labour and Education. The CYEE arrangesspecial training courses, lasting from a fewweeks to a year, for Youth Employment Officersand has set up a Youth Employment ServiceTraining Board to review and advise on theirrecruitment and training.

The British Youth Employment Service per-forms the three following functions for youthup to age 18: (1) Vocational guidance throughthe schools for those who plan to leave at theminimum age of 15 and for those who remainin school (2) job placement service throughthe local Youth Employment Officer for theschool leavers (3) followup of young workersafter they enter employment. Special attentionis given to those who are physically or mentallyhandicapped and to thos who find it difficultto hold a job.

!The Youth Employment Service, which keepsin touch with employment opportunities for the

30

young both locally and nationally, is widelyused by young people, though there is no com-pulsion. If they cannot find employment ortraining locally, the young persons may ob-tain financial assistance to move to areas wherejobs or training are available. The YES alsokeeps informed on the nature of the work an0the conditions of training in the various occupa-tions. Those who remain in school receive in-formation about higher educational facilitiesand professional eareer opportunities. Throughthe guidance and placement activities of the-YES, efforts have been made over the last fewyears to channel young people into the occupa-tions of shortest supply and those offering thebest opportunities for future employment. Thecomparatively low unemployment rate amongyoung people in Great Britain is believed dueto the high proportion who are guided intoapprenticeships or other on-the-job training bythe YES.

A youth's first contac t with the Youth Em-ployment Officer (YEO) is through the officer'svisit to the school to talk to his class. The officerdescribes the types of careers available, andurges the students to think about the kind ofwork suited to their abilities and interests. Hemay bring in experts to talk about specific ca-reers, show films, and take groups of studentsto visit firms.

British schools are required to send to theYouth Employment Office a report, near theend of the young person's schooling, on thatper§on's health, educational attainments, andgeneral ability for some specific kinds of em-ployment. The student and his parents are laterinvited to come in for an interview with theYEO. Members of the school's teaching staffare usually present, too. The YEO seeks infor-mation from the young person and his par-ents about the young person's interests. TheYEO does not administer tests, but re-ceives from the school the results of anystandardized tests it has given. The YEO's aretrained in the interpretation and application ofthe information received from the schools. Theyoung person and his parents receive adviceand recommendations from the YEO, but theymake their own final choice of a career forthe young person.

Training of Workers

To implement that part of the British man-power policy which calls for an improvement inthe quantity and quality of training and retrain-ing, the Industrial Training Act of 1964 (ITA)war passed. The ITA covers all occupations,including professional and managerial, in com-merce, manufacturing, agriculture, and the dis-tributive, financial, banking, and insuranceindustries. Under this new legislation, GreatBritain is in the process of developing majorchanges in its training methods and standards.A tripartite Industry Training Board for eachindustry will carry out the program.

The main incentive for a firm to provide itsown training courses, or arrange for some or-ganization to provide them, is the levy andgrant system authorized by the IndustrialTraining Act of 1964. Each employer is re-quired to pay a levy, the rate of which will bedetermined by its Industry Training Board,with the approval of the Minister. The ratehas ti be sufficient to meet the costs of theprogrt.. proposed and the administrative ex-penses of the board. Grants will be paid out ofthe levy to companies providing training thatmeets certain standards. Inspection by boardrepresentatives will determine whether or notthe standards are being met.

The, Minister of Labour decides in whichindustries Industry Training Boards shall beestablished, appoints each Board's membersafter consulting with employers and unionsin the industry, and presents to Parliament anindustrial training order, including a definitionof the industry, to give the Board legal status.Each Board has a chairman with industrial orcommerdal experience, an equal number of em-ployer and union representatives, and a numberof education members. Representatives of theMinistry of Labour, and the Departments ofEducation and Science attend meetings of theboards, but have no vote.

The Board's main duties are to insure suffi-cient training of manpower for the industry.It makes recommendations on the nature, con-tent, length of training for occupatiems in theindustry and on the education needed to accom-pany the training. The Board presents to theMinister of Labour for his approval, and for

transmission of Parliament, proposals on howit intends to exercise its powers. Although theBoard may present supplementary proposalsfor approval, it must work within the frame-work approved by the Minister. Separate pro-posals must be submitted by the Board for therate of the levy to finance its proposals. If theBoard fails to submit or revise proposals, itsmembership may be replaced by the Ministerwithout consulting the interested organizations.

The ITA gives the Minister of Labour powerto require employers to keep records and makereports so that the number of employees being'trained, and other relevant information, canbe supplied to the boards. With the aid of theMinister's Manpower Research Unit, and theEconomic Development Committees, the boards,as previously indicated, must also prepareestimates of their industries' skilled manpowerrequirements in the future. Finally, the boardsare required to develop programs to meet thefuture training and further education needs ofthe employees of,their industries. Detail work,such as establishing a syllabus for each occupa-tion, may be delegated to committees with theMinister's approval. It is expected that majorchanges will be made in the duration of ap-prenticeships and methods of training appren-tices. Improved standards in skills achievedand ability to perform the work are also re-ceiving careful consideration in developing thetraining programs:

Joint committees may be appointed by theboards, subject to approval by the Minister, tohandle the training of workers in occupationsfound in several industries, such as mainte-nance, clerical, and commercial activities.

The Minister of Labour has appointed aCentral Training Council to help establishstandards of training and to advise him on theadministration of the ITA. The council consistsof representatives of employers, unions, nation-alized industries, and education, the chairmenof several of the training boards, and othermembers with a special interest in industrialtraining. The council reviews the programs andperformance fo the boards of the various in-dustries, advises the Minister on how to remedydeficiencies, considers whether or not a train-ing board should be established in a particularindustry, and takes up matters of general inter-est to all boards, e.g. training methods, qualifica-

31

tions of training directors and trainers, use oftests, and research in training methods.

At present, the Government, through the 30Government Training Centres that are trainingbetween 11,000 and 12,000 ien annually, is as-suming a large share of the responsibility forthe accelerated training and retraining ofadults who lack skills or whose skills are becom-ing obsolete, whether or not they are unem-ployed.

About one-third of the trainees are disabled.Disabled persons are given priority in Govern-ment Training Centres in two ways : (1) somecourses are reserved entirely for them ; (2) inothers they have the same priority for admis-sion as able-bodied former members of theregular Armed Forces. The Ministry of Labouralso reserves places for the disabled an(' paysthe cost of their training and maintenance atfour residential training centers provided byvoluntary agencies.

During their training, the students receiveallowances, varying with age, sex, and domesticresponsibilities, but which are above the rateof unemployment insurance benefits and belowthe rate of wages the students expect to receivewhen they enter employment. Allowances arenot subject to incOme taxes and the trainee re-mains covered by the social security s3ttem.If needed for the trade, tool kits are providedto graduates upon employment. Daily travelexpenses are paid.

The syllabuses of the 40 courses of trainingin regular use in the centers were drawn up andcontinue to be under constant review by theMinistry of Labour's technical officers, who con-sult with representatives of unions and manage-ment in the trades. Industrial discipline andworking methods are used in the centers tocondition the trainees to the kind of workingsituations they will meet on a job. Classes con-tain 10 to 16 trainees. Courses normally last6 months, although some take up to a year.Each week, a few hours of theoretical instruc-tion is given with the amount dbfweasing astraining progresses. Most of the.:training ispractical experience of gradually increasingcomplexity. By the end of the course, thestudent is doing actual production work. Thereare periodic progress tests and a final test.The employer taking center graduates in someof the trades is paid a small fee by the Ministry

32

of Labour for providing additional training.The amount of payment !s reduced as the com-pany's on-the-job training progresses and thetrainee becomes more productive. The Min-istry also pays a fee to employers for full on-the-job training.

The instructors used in the centers areworkers who are skilled in their crafts and whohave considerable experience in industry andthe ability to teach. They are given specialcourses in teaching-training in the Ministryof Labour's own Technical Staff Training Col-leges.

Redundancy Legislation

Studies made by the National Joint AdvisoryCouncil of the Ministry of Labour since 1960have increased public interest in oassistingworkers who lose their jobs because changes inoperations make them redundant. The Re-dundancy Payments Act of 1965 provides thatworkers whose jobs disappear after 2 years ofservice with an employer shall receive lump-sum, tax-free severance pay based on theirweekly wage and years of service. Weeklyearnings over L40 ($112) per week, and serviceof more than 20 years are not counted. Excludedare fishermen, dock workers, and Crown serv-ants, who are covered under another plan, andthe Armed Forces. If the employer has sever-ance pay agreements with the unions, he maybe exempted. The scale of redundancy pay ishigher for older than for younger workers. TheMinistry of Labour will administer the Redun-dancy Payments Act.

The employer will make the payments to hisdisplaced employee, but a Central RedundancyFund is being set up to help equalize coststhroughout all industry. It is to be &lanced byan increase in the employers' social securitycontribution. Employers may draw about 70percent of their total redundancy paymentsfrom the Fund, upon application for a rebate.

Labor Reserves

With the shortage of workers in GreatBritain, much attention has been given to the

use of the labor reserves : Older workers,women, the handicapped, and foreign workers.

Through the Government's National Ad-visory Committee on the Employment of OlderMen and Women, encouragement has beengiven to create a public opinion climate whichwill make it easier for people to remain at workat an older age. The older worker is a man-power resource that is still considered seriouslyunderutilized. The National Plan calls for anincrease in the employment of older workersand women to help bridge the "manpower gap."Older workers whose jobs have been eliminatedfind it difficult to secure other jobs. Trainingand retraining and special placement service isprovided them through the Government Train-ing Centres and the employment exchanges.

One of the important changes in the use ofthe labor reserves during the 1950's was thegreat increase in the employment of women.The total work force increased by 1.5 million;the increase in the number of women was 1million. Recently, the Government has beenconducting a national campaign to persuademarried women who were trained as teachersbefore their marriage to return to help meetthe extreme shortages in the schools.

During the midfifties, Great Britain had alarge influx of jobseekers from such Common-wealth countries as India, Pakistan, and theWest Indies. By 1961, the net annual increaseof these immigrants had reached 115,000 andthe trend appeared to be up. Amidst muchpolitical controversy, the Commonwealth Im-migration Act was passed in 1962. Because ofthe pressure on social services, especially onhousing, by the increaSed number of immi-grants and their families, the number of Com-monwealth immigrants was restricted to 8,500yearly. The Commonwealth citizen now musthave an employment voucher before he is ad-mitted to Britain. Vouchers are given thosewho have a job or who possess a needed skill,such as is the case for domestic workers,Inurses, and teachers.

The Ministry of Labour issues permits forall foreign workers wishing to work in Britainand decides whether or not those with permitsmay change employment. Permits are issuedonly if the employer has made an adequateeffort to find suitable applicants from Britishsubjects or foreigners who are permanent resi-

dents and offers wages and other working con-ditions equivalent to those for British employ-ees in the district of employment for similarwork. After 4 years, the foreigner normallyqualifies for freedom of employment.

Permits are not required under "bulk re-cruitment plans," through which the Ministryof Labour recruits foreign labor for privateemployers. The employment 'exchanges handlethese placements.

Through the Disablement Resettlement Offi-cers (DRO) in the employment exchanges, thedisabled get rehabilitation services, and helpin finding employment. Workers needing em-ployment 'assistance are invited to register as"disabled," and all employers with 20 or moreworkers are required by law to employ a quotaof such registered persons. In 1965, about 650,-000 persons were on the register. The quotafor an employer was 3 percent of total staffin 1965.

Any disabled person, whether registered ornot, can ask for special assistance in findingemployment. The DRO may obtain medicaladvice on the capabilities of the disabled per-son, the conditions under which he should beemployed, and the environmental factors whichwould be unsuited for him.

Those who are so seriously disabled thatthey cannot do normal factory work are givenemployment in sheltered workshops operatedby REMPLOY, a nonprofit company formed bythe Government in 1945. REMPLOY has es-tablished 90 factories, employing 6,000 seri-ously disabled. The location of these factoriesdepends more on the number of disabled work-ers from an area for whom there is no otheremployment than on its economics. REMPLOYproduces furniture, leather work, industrialclothing, light engineering work, bookbinding,knitted wear, and packaging. The products aresold through ordinary commercial channels andthe wages are set at the standard scales ofunion-management agreements. A number ofvoluntary organizations providing the sametype of work are given Government financialassistance. Local authorities are required toprovide sheltered employment for the blind,for which they get financial assistance from theMinistry of Labour. About 4,000 blind personsare employed in 66 workshops. Nearly 1,000

more are horieworkers.

33

The Employment Exchanges

Employment exchanges are operated underthe Ministry of Labour through a network of9 regional offices, which supervise and coordi-nate activities of 900 local employment ex-changes in the largest cities and towns and over100 suboffices in smaller population centers.The staff numbers about 13,000. The Employ-ment exchanges have the function of matchingthe jobseekers with suitable job vacancies, ad-ministering the allowances paid to workersunder the employee-transfer plans, and tryingto anticipate employment developments in thearea.

Employers are not now required to list allunfilled vacancies and openings for apprenticeswith the employment exchanges, nor are work-ers compelled to register, except for unemploy-ment benefits. The vacancies that are reportedby employers are recorded by type and hoursof work, pay, duration of the job, and unionmembership requirements. If a vacancy cannotbe filled by the local exchange, notification ofits existence is circulated first to nearby offices,then throughout the region, and finally to otherregions. The Government has no monopoly onplacements, and the number of private, fee-charging employment agencies has grown asworker shortages have increased the numberof recruitment problems. Currently, employ-ment exchanges place only about one-third ofthe workers hired. Most workers find jobsthrough direct application to employers.

For several years, the Ministry of Labouras been urging employers to give as immediatea warning of layoffs as is possible to woikersand at the same time to the employment ex-changes. The employment exchanges send instaff members to register the workers whosejobs are or will be obsolete in the establishment.These officials gather information on what jobsthese workws can do, where they are willingto move in order to find new jobs, etc. Immedi-ate placement action can thus be started toprevent unemployment and to help fill the"manpower gap." The program has been mostsuccessful in plants where cutbacks havecaised large numbers of workers to becomedisplaced.

The Ministry of Labour has under consider-

34

ation legislation compelling all employers tonotify the. Exchanges in advance of planneddisplacement of workers. The Contracts of,Employment Act of July 6, 1964 requires em-ployers to give longer dismissal notice to someworkers than to others. An employee who hasbeen with one employer for 2 years must begiven 2 weeks notice, although the worker wholeaves need not give such notice. After 5 yearsof continuous service, 4 weeks notice must begiven. The Ministry has urged that the mini-mum notice be 1 month, to protect the mendismissed and to encourage a more efficient use-of manpower.

Transfer Plans and Area Development

As indicated previously, the recently createdRegional Economic Planning Councils will givespecial attention to the redeployment of work-ers and the diversification and development ofindustry in areas of slow economic growth.

The Board of Trade, under the Local Em-ployment Act of 1960, can provide financialassistance in the form of loans or grants tocompanies willing to move to or expand theiroperations in designated development areas. Inaddition, any plant expansion or new plant ofover 10,000 square feet must have an Indus-trial Development Certificate approved by theBoard. The Board also is empowered to ac-quire land, build factories, lease them, andgrant loans to new firms coming into the de-velopment areas, as well as to assist in im-proving transportation, power, light, and sani-tation. It may provide information on sites,labor supplies, housing, and help with the costof moving firms and key manpower into thedevelopment areas. The Board, with the assist-ance of a Treasury Advisory Committee, cahdetermine which areas should be aided, byoffering such incentNeS as low rentals andsubsidies to firms to build in developmentareas.

Three plans, two of which encourage thepermanent movement of workers from areasof unemployment to areas of manpower short-age, are administered by the employmentexchanges in the Ministry of Labour. TheResettlement Transfer Scheme applies to unem-

..

ployed and displaced workers who have littleprospect of suitable employment in their homeareas and who move beyond daily commutingdistance to jobs for which no suitable workerscan be found. The Key Workers' Scheme pro-vides benefits for workers whose employermoves to a new development district with help

from the Board of Trade, if these workers'services are essential for establishing the newinstallation. The Nucleus Labor Force Schemeassists in the temporary transfer of unem-ployed persons from areas of high unemploy-ment for training in the parent factories of

firms setting up new plants in developmentareas.

The assistance given includes free fare forthe journey to the new employment and asettling-in grant. If the worker continues tomaintain his depepdents in the home area, aweekly lodging allowance is paid, and he getsthe fare to go home six times during the year.

The Resettlement and the Key Workers'Schemes also pay dependents' fares to the newlocation and a percentage of lawyers' fees andother costs paid in the sale of and purchase ofa house.

t.

c.,

35

Social and economic policy of the Nether-lands focuses on full employment for a rapidlygrowing population in a country with verylimited land area and one of the highest popu-lation densities in the world. Other major ob-

jectives are a high level of exports and equilib-rium in the country's balance of payments, arate of capital investment that will permit in-dustrial growth and a rising standard of living,a just distribution of income, and stable pricelevels. The Dutch appear to be attaining thesegoals in the period since World War II.

MANPOWER POLICY

Unemployment, which has been less than 1percent of the labor force in the 1960's, has

hardly been a problem. Job vacancies have con-

tinually exceeded job applicants in the Nether-lands. Shortages of manpower have resulted in

the importation of over 60,000 foreign workers.

This situation reflects a postwar evolution inmanpower and econ6mic policies. Since the

war, there has been increasing emphasis on ex-

panded industrial investment as a means ofencouraging exports and maintaining full em-ployment. Early in the period, resources wereallocated to capital expenditures at the expenseof consumer goods through a system of wage

and related controls. To counter inflation andmaintain a favorable balance of internationalpayments, an incomes policy was developed thatlimited consumer expenditures. The tripartiteagencies that developed the national policies onwage changes became the effective meansthrough which national manpower policy

evolved. The industrial development, which fol-

lowed World War II, created growing needs formanpower, thus lessening the traditional im-

portance of emigration as a measure for themaintenance of full employment. The industrialgrowth was accompanied by temporary unem-ployment and dislocation of the labor force,which had to be surmounted if trade and 1m-ployment objectives were to be attained. Skill

training, to make the fullest use of manpowerin meeting the needs of industrial development,

became a necessary element of Dutch economicgrowth. Thus, manpower policy has encom-passed the development of employment oppor-tunities through economic growth on the onehand and manpower development on the, other.

DETERMINATION OFMANPOWER POLICY

Because of the interdependence of the Dutcheconomic objectives, manpower policy is a keyelement of the annual Economic Plan, the firstof which was drawn up in 1946. Responsibilityfor developing the annual Economic Plan is inthe Central Planning Bureau; although the sub-

stance of the plan is subject to approval by theCouncil of Ministers (cabinet).

The plan presents an inventory of the' coun-

try's productive facilities, both phyiical plant

and manpower. It also contains trends andlevels expected in the coming year for produc-

tion, prices, the national income, consumerspending, investments, manpower resources,

employment, job vacancies, manpower needs,productivity of labor, and the like. The supply

of manpower, including workers with particu-

lar skills, is a key consideration in determiningwhether or not an increase in production canbe brought about.

The plan provides advice and guidance to

labor and management as well as to the Govern-

37

ment. Measures to implement the plan relychiefly on persuasion, and great emphasis isgiven to individual freedom to deviate from theplan because Dutch economic policy is tradi-tionally based on the free-trade, free-enterpriseprinciple. But the various branches of the Gov-ernment possess legal meanssuch as controlsover credit, taxes, building permits, and wagesof enforcing policies based on the plan. Forexample, with the Dutch economy heavily de-pendent on international trade, concern overcost competition in world markets has resultedin an income policy that places some restrictionon wage increases. However, the Governmentalmachinery permits a pragmatic resolution ofwage problems.

The National Budget supports Governmentactivities designed to meet objectives of theplan. In essence, the Central Economic Plan isa prognosis of economic activity without bind-ing force, whereas the budget commits theGovernment to a program through the authori-zation of necessary expenditures. .

Since it was created in 1945, the CentralPlanning Bureau has consulted with all agen-cies that have responsibilities relating to eco-nomic, social, and financial policy. It coordi-nates information and research needed forpolicy decisions and welds the decisions intopolicy documents. This process of consultationand coordination enables the various agenciestO adjust their own programs to the possibili-ties envisaged by the Central Plan. The Na-tional Budget then reflects program needs forpolicy implementation. Frequent consultationsare held with the planning sections of the Min-istries of Economic Affairs, Agriculture andFisheries, and Social Affairs and Public Health.The Central Planning Bureau is also repre-sented on interdepartmental entities, such asthe Interdepartmental Committee on Wagesand Price Policy, the Priority Committee onReconstruction, the Committee for CapitalMovements, and the Bank for National Recon-struction. The Bureau's professional staff ofless than 100 is aided by the work of the vari-ous Government departments and by outsideexperts as needed. It also calls on a CentralPlanning Committee for advice.

38

MANPOWER PROGRAMS

The Ministry of Social Affairs and PublicHealth has primary responsibility for man-power programs, but the Social and EconomicCouncil and the Foundation of Laborbothcompbsed of Government, industry, and tradeunion personnelexercise a major influence onmanpower and administration. The Social andEconomic Council was created under a 1950law to advise the Government on social andeconomic policies, especially with respect towages and industrial relations. It is composedof 45 members, 15 appointed by the Crown, 15nominated by the central trade union organiza-tion, and 15 nominated by industrial associa-tions. The Council provides a forum for de-bating matters of manpower and economicpolicy and reaching a consensus on major policychanges. For example, in response to a Govern-ment request that it recommend alternative oradditional criteria for wage determinationwithout changing the basic procedure, theCouncil, after nearly 2 years of study, ignoredthe request and in 1962 called for complete re-vision of the wage determination system anddrastic curtailment of the Government's wagerestraint powers.

Administration of Wages and Income

The new policy, which went into effect onJanuary 1, 1963, gave to the Foundation ofLabor, which represents all management feder-ations and the three main trade union federa-tions, the authority for approval of collectiveagreements that formerly rested with the Boardof Government Conciliators in the Ministry ofSocial Affairs and Public Health. Since theFoundation was created in 1945, the Govern-ment had been obliged to seek its advice withrespect to wages. In 1963, however, the Foun-dation became the mechanism for regulatingindustrywide and plant-level wage bargaining,with overall guidance from the Social and Eco-nomic Council as to national policy on wagechanges. Wage increases agreed upon in 1963and 1964 have attempted to prevent the siphon-ing off of manpower by neighboring countrieswhere both wages and prices are higher. An

initial concern that the Dutch export trademight not sustain such large wage increaseshas, during 1965, been found not to have beenwarranted.

The functions of the Council and the Foun-dation with reference to wage regulations wereagain undergoing change in the second half of1965. Direct Government interferenceanddecisionin the 1964 wage talks determined theunions to push for a much freer wage policy,with a principal objective of getting Govern-ment out of the collective bargaining field. Thisgeneral principle has been agreed on by theGovernment and the unions, with the result thatbargaining will be done on an individual indus-try or establishment basis, without review bythe Foundation. The unions propose to haveGovernment retain only such power to step inas might be necessary to control wage increaseswhen they might endanger the general econ-omy.

The functions of both the Labor Foundationand the Social and Economic Council are thusat the moment undergoing considerable change,but there is no plan to abolish them.

The general lines in manpower policy aredrawn by the Directorate of General policy ofthe Ministry of Social Affairs and PublicHealth. The chief agency for implementationof manpower policy is the National Employ-ment Service, whose director-general reports tothe Minister of Social Affairs and PublicHealth. The director-general also heads theState Additional Employment Service which isconcerned with projects to counteract down-turns in employment. He consults an advisorycommittee (made up of equal numbers of repre-sentatives of the leading employers' federationsand of the leading trade unions appointed bythe Minister) on employment problems, suchas technical training and mediation of disputes.

Job Market Research

An important element of the manpowerpolicy of the Netherlands has been a determi-nation to foresee developments and be preparedfor changes when they occur. The Ministry ofSocial Affairs and Public Health continuouslypublishes detailed information on the job mar-

ket. The reporting of job vacancies and unem-ployment in the Netherlands, which began withthe establishment of the employment service,is voluntary. Both employers and employeesare, however, prohibited by statute from termi-nating employment without the consent of thedirector of the employment office. Exceptionsare made by mutual agreement and for urgentreasons, such as actions that would warrant im-mediate dismissal. Although this regulationwould appear to encroach on the freedom of theparties, it appears to have contributed towardlabor-management stability. However, it is aregulation which the trade unions would liketo see discarded.

Representatives of employers and workers,as well as the employment board, are consultedwhen an application for dismissal has to bejudged. In the case of genuine redundancy,employers are not obliged to keep workers. Onthe other hand, workers are not kept againsttheir personal wishes. However, in the tightjob market situation, excessive turnover iscurbed and rash dismissals are limited. If thissystem continues to operate, however, it mayinhibit some of the benefits in manpower utili-zation that could be expected to flow out of thenew free-wage policy.

The National Employment Service

Several staff functions performed by units ofthe central office of the employment service sup-port the operation of a comprehensive man-power policy. The Vocational Training De-partment is responsible for organizing andsupervising vocational training of adults in vo-cational training centers. A Vocational Guid-

ance Department is concerned with the orga-nization and method of vocational guidancegiven by the Government in the EmploymentOffices. Several subdepartments formulatepolicy for special areas and sectors such asagriculture, services, women, handicapped per-sons, and youth. There is an Emigration andInternational Labor Matters Department con-cerned with policymaking and negotiations ininternational labor. A Vocational Studies De-partment is responsible for occupational studiesand development of vocational guidance mate-

39

rials. There is also an Industrial Medical De-partment concerned with the health aspects oflabor.

The State Employment Office is the nation-wide employment exchange composed of 87 dis-trict or area offices and 47 local or branch of-fices under the jurisdiction of the Chief Inspec-tors-General of the 11 Provincial EmploymentOffices. The central function of each of theseoffices is placement of workers in jobs, but theyperform many auxiliary functions, such as:Vocational guidance; vocational training ofadult workers; occupational research and infor-mation; making grants for migration withinthe country; medical screening of job appli-cants; special treatment of disabled and handi-capped persons; registration for emigration;recruitment and placement of foreign workers;intervention in dismissal of workers; and jobmarket research and information.

The placement service is available free to alljobseekers, but they are not required to use it.Unemployed persons must, however, register atthe employment office to qualify for unemploy-ment insurance, which is compuyory. The so-..cial insurance authorities -disburse unemploy-ment insurance benefits; the employment officeundertakes to find jobs for the applicants.

Handicapped Workers

Each employment office has a departmentthat specializes in finding employment forhandicapped persons, working in close coopera-tion with the office's medical adviser and itsvocational guidance personnel. The objectiveis to restore "unsuitabl labor" (physically ormentally handicapped and former delinquentsor discharged prisoners) to work. Placementsof the handicapped amount to about 3 percentof.total placements by the employment service.In addition, many handicapped workers areplaced in welfare workshops. These institutionsare subsidized by the Ministry of Social Affairsand Public Health and run by the municipali-ties to provide productive noncompetitive workfor the handicapped to hasten rehabilitation.The storage of manpower in the Netherlandsundoubtedly aids in the placement of "unsuit-able" labor, although employers may be com-

.40

peiled by law to include a minimum number(at least 2 percent) of handicapped workers asa percentage of their staff.

Mobility of Labor

If no suitable work can be found within areasonable time for the jobseeker in his owndistrict, the employment office may place himelsewhere. Relocation assistance may be pro-vided to workers moving to another area. Since1960, this has been available only in exceptionalcases to those moving to the congested Rand-stad-Holland area in the western part of thecountry. More than a third of the populationof the Netherlands live in the western part ofthe country, with an exceptionally heavy con-centration in Randstad-Holland, producing po-tential problems of housing, communications,and transportation. More generous allowancesencourage movement to the designated problemareas called "development centers." There is acomplex schedule of payments varying with theclassification of the area and the family re-sponsibility of the worker. Unmarried workersare not eligible for relocation allowances unlessthey are disabled. Married able-bodied workersmoving to development centers are eligible forthe cost of travel for themselves and their de-pendents, moving expenses, and a lump sumpayment as partial compensation for furnish-ing a new house, plus an additional paymentfor each child. In view of the shortage of familyhousing in development centers, married work-ers moving to those areas may, in addition,receive a portion of the cost of board and lodg-ing for as long as a year. Disabled marriedmen receive more generous allowances. Littleof the migration within the Netherlands hasentailed payment of moving allowances by theGovernment; the hiring employer was, until1960, required to help finance the cost of amove, and many workers do not know of theGovernment allowances.

Regional Development

Aid to workers in support of geographicalmobility is geared to the policy of growth of

thinly populated development centers and dis-persing industry from the congested Randstad-Holland area. Incentives are provided to non-geographically tied industries to locate in partsof the country outside the Randstad urban com-plex. The policy has had substantial success inbalancing economic growth arid job opportuni-ties throughout the country. The regional in-dustrial policy is administered by the Ministryof Economic Affairs, but it has manpower im-plications.

The Ministry of Economic Affairs has desig-nated some 40 or more development centerswhere industrialization is encouraged. Grantsare provided to industrialists putting up newbuildings in these areas, provided employmentis developed in relation to the amount of floorspace built. Goverm.nent buildings with lowrentals are also provided in these areas. Inaddition to loans, grants, and other encourage-ment to industrialization of the developmentcenters, payments to workers for migration tojobs favor them.

Handling of Seasonal Unemployment

The State Office for Additional Employmentis responsible for preparing and carrying outprojects providing employment for limitedduration. These are generally public capitalconstruction projects to counteract seasonal un-employthent, which is concentrated among agri-cultural workers. Through funds available tothe National Employment Service, building andagricultural projects are put into effect duringthe off seasons.

To meet the demand for labor in agricultureduring the peak season, travel and subsistenceallowances are made available for temporarilyunemployed workers from areas other thanthose that need workers. Curtailment of thesefunds since 1958 has forced some spread ofwork and some mechanization to reduce peakloads. The Dutch are developing the conceptthat agricultural workers should have year-round employment. This concept is being en-couraged in meetings between agriculturalemployers' and workers' organizations. Sea-sonal agricultural workers are given additional

training, usually ichinery repair traskills usable on or

Vocational Trainin

The National Emthe 24 regional vocadults. Each centechief inspector-genployment Office. Taided by an advisoan expert on vocatisentative of both eganizations. Districtrainees to the centin industry when th

The centers werqWorld War II to-losses and to fosttrades in which thethose with a sholtahave become a pemanpower programovercome employerment intervention.60,000 adults had cthe centers as antraditional apprenttions showed 92 pjob for which trai

The centers trailiretrain those who Afor which they wertraining to those N%a skill after somenot a requirementmust pass an aptiamination. Coursetential members o18 through 50 (recause of the diffit:ulThe age limit andtrainees are significountries with sim

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The Netherlands provides wage subsidiesfor approved on-the-job training. The subsidyamounts to half the weekly or monthly wageminus an estimated production or achievementvalue of the trainees' services. It is paid in fourinstallments (40, 30, 20, and 10 percent, re-spectively). The duration of the on-the-jobtraining is set in advance ard the trainingmelods and procedures are subject to employ-ment office supervision.

Trainees in the Netherlands may enter theadult training centers at any time. The Dutchhave made great progress in designing coursesto permit trainees to proceed at their own pace.A type of programed instruction is used and atrainee who has had some previous training orexperience may skip parts of the course. Sincethe training takes the form of supervised prac-tical work, rather than formal class instruction,members of a training class may be at widelydifferent stages. The trainee is graded foreach assignment and receives a bonus for satis-factory performance. Typically, the durationof training varies from 12 weeks to substan-tially longer periods for more difficult trades.The center's director is responsible for deter-mining when the trainee has satisfactorilycompleted the basic course. He also recom-mends whether the trainee is suitable for fur-ther training. The Dutch have designed aregular followup of their adult vocational train-ees. Approximately 1 year after training, theex-trainee is given an examir ation. His cer-tificate for completing the course is notawarded until after he has passed this ex-amination.

Most of the courses provide instruction inthe metal trades and the construction trades.Training is given for occupations in which va-cancies cannot be filled through regular re-cruitment of juveniles or through industrytraining programs. Training nLeds are fore-cast from statistical data on employmenttrends, job vacancies, and employer requestsfor apprentices.

Selection for employment goes on duringtraining. In special cases, workers may begiven either basic or advanced training for em-ployment in a particular company at that com-pany's expense. Outgoing students may beurged to take followup training in other recog-

42

L

nized training institutions until they reach in-dustry performance standards.

Vocational Information and Guidance

The National Employment Service carriesthe major responsibility for both the provisionof occupational information and vocationalcounseling. Although the two programs areclosely related, they are carefully distinguished

Occupational Information

The extensive Program for collecting and dis-seminating occupational information has de-veloped from the countrywide job evaluationsystem.

Faced with the need of wage controls afterWorld War II to preserve export markets andthe balance of payments, the Dutch made greatstrides in job evaluation. The wage controlsystem used the equal pay for equal workprinciple as a basis for wage setting and justi-fication of above-average wage increases. Aftera variety of job evaluation systems were intro-duced, the Foundation of Labor obtained theagreement of labor and management repre-sentatives to engage only such managementconsulting experts as were independent bf bothemployers' and workers' organizations. Out ofthis agreement there developed a standardizedmethod of job evaluation which has been almostunivercally used since the ,mid-1950's in theNetherla nds.

The Occupational Studies unit of the Na-tional Employment Service has pursued occu-pational research intensively, both nationallyand internationally. Many industries in theNetherlands have been willing and eager tocooperate in this undertaking. Out of this na-tionwide job evaluation program, which wasoriginally established for wage setting pur-poses, the Dutch have developed considerableoccupational research. On the basis of requiredlevels of ability, education, physical condition,etc., some 4,500 occupations have been definedand classified. 'IVIany of these 4,500 occupationshave been analyzed and described in detail andare used by vocational guidance counselors and

placement officers. Detailed occupational anal-yses are continuously reviewed to take ac-count of new occupational trends because ofchanging techniques and new occupations andspecializations. These analyses are available tothe vocational guidance counselors who reacha great number of schoolchildren and theirparents and teachers.

At the beginning of 1962, an Advisory Com-mittee /Jr Occupational Information was in-augurated. The task of this committee is toadvise on methods of providing and organiz-ing information on occupations and trainingcourses. In the Netherlands, this informationis disseminated not only by the National Em-ployment Service, but also by various otherorganizations. The National Employment Serv-ice has an extensive program for distributingoccupational information including exhibits,visual media, and visits to industrial enter-prises.

Vocational Guidance

Although the Dutch vocational guidanceprogram begins,- in many cases, as group coun-seling of primary school pupils, it emphasizes.the provision of expert advice to individuals.

Vocational guidance is given by psychologistsor counselors with specialized training on thebasis of the individual's performance on tests,his education, and his abilities or experience.A student and his parents may obtain adviceon the choice between continued study or occu-pational training, as well as on the choice ofoccupation. The freedom to choose one's ownoccupation is fully respected, as is the freedomto decide whether to obtain vocational counsel-ing. Consequently, many youth do not take ad-vantage of the guidance that is available.

The Employment Service in the Netherlandshas the following duties in regard to occupa-tional counseling:

(1) Furnishing on request guidance inthe choice of an occupation;

(2) furnishing on request advice on school-ing and studies ;

(3) giving advice on the vocational apti-tude of candidates for courses at the adultvocational training centers;

(4) supplying public information, wherenecessary, about the purpose of and the needfor guidance in the choice of an occupation;and

-(5) performing research in the field oftest methods and data verifications.

43

yEN

Maintenance of full employment is the coreof Swedish economic policy ; anything less hasbecome politically and socially unacceptableafter two decades of Vxtraordinarily low un-employment. This emphasis has developed from

a consensus of the employers' organizations, theunion federations, and the main political par-ties. So strong is the emphasis that concessionsare made if measures aimed at other economicobjectivesprice stability, for exampleap-pear 'to be endangering the high level of em-ployment. Indeed, the Swedes, have choseirmild-inflation as the cost of full employment. Nothaving actively participated in World War II,Sweden was not burdened with all the problemsof recovery that most European countriesencountered.

MANPOWER POLICY

Swedish monetary and fiscal policies focuson economic growth to insure full employment.But growth inevitably produces structuralchanges in the economy and in manpowerneeds. Moreover, it is difficult to apply generalpolicies with sufficient precision to avoid swingsbetween unemployment and manpower short-ages which would be incompatible with fullemployment. In addition, the attendant fluctu-

ations in productivity and prices would hinderattainment of Sweden's other important eco-nomic and social goals : maintenance of hercompetitive position in export markets andimprovement of her people's standard ofliving.

Swedish manpower policy therefore relies onthe speedy and flexible use of selective meas-ures to maintain geographic and occupationalbalance between manpower supply,and demandand to minimize seasonal and cyalical fluctu-ations. These measures include a vaxiety ofmeans to stimulate the mobility oflabor mad tocreate employment and influence its location.There are generous facilities and subsidies forthe occupational training of adults and financialassistance for workers who are willing to movein order to find employment. There are alsoprovisions to raise or lower maniower demandthrough the Government's capifal investment,procurement, and credit powers and throughtax incentives to induce appropriate levels ofprivate investment. The Swede4- place thesevaried approaches in the hands of a well-in-formed and efficient" network of employmettoffices to provide the free choice of as produ-c-tive a job as possible for everyone who is abgand willing to work.

The effectiveness of Sweden's manpowerpolicies may be judged by the rate of unemploy-.ment, which has not risen above 2.8 percent ofthe labor force in the past 15 years. Unemploy-ment during 1963averaged 1.4 percent of thelabor force. While the Swedish technique formeasuring unemployment is not directly com-parable to U.S. techniques, and results in alower figure, the 1963 rate would still be lessthan 2 percent if unemployment were computedaccording to U.S. definitions.

The full employment characteristics of theSwedish manpower situation since World WarII have contributed to a subtle shift in outlook.The filling of job vacancies was formerly con-sidered the way to reduce unemployment. Cur-rently, unemployment is considered the meansto reduce shortages of workers. Consequently,training and retraining the unemployed be-comes essential if unfilled demands for laborarc to be satisfied from this sours.a. Also,knowledge about the long- and short-run n-quirements for labor has become important in

45

order that educational and worker trainingprograms can be geared to future manpowerneeds.

SWEDISH INSTITUTIONS AND ANACTIVE LABOR MARKET POLICY

The outlines of manpower policy are formu-lated by the Government (the ruling party orcoalition) and the responsible members of thecabinet (or King-in-Council), that is, the Min-isters of Interior Affairs, Education, and Fi-nance. The policies are then submitted to theparliament (or Riksdag) for approval.

The National Labor Market Board

-.

One distinguishing 'feature of Swedish man-power is the extent tO which its administrationis centered in a single-agency. Throughout theSwedish-Government, cabinet ministers partici-_..------ . ----___-pate in the formulati-onofpolicy--and issuepolicy directives, but policy is implemented andadministered by central boards whose sphereof action is delineated by the parliament. Theagency responsible for manpower policies andprograms is the National Labor Market Board(Arbetsmarknadsstyrelsen), which is adminis-tratively located in the Ministry of InteriorAffairs. .

The Board's central mission is the mainte-nance of full employment. For this purpose,it has an exceptionally broad grant of authorityfor a labor agency. It is empowered to activatestandby appropriations for public works, togrant building permits, to trigger changes inthe volume of Government procurement, to uti-lize tax incentives for the investment of in-dustry profits, and to control the entry offoreign workers. It also has responsibilitiesfor placement and recruitment, vocationalguidance and training, vocational rehabilita-tion, registration and compensation of claim-ants of unemployment insurance, surveys andadvice on industrial location, payment of in-centives for the relocrtion of workers, and su-pervising public works projects initiated tocounteract unemployment.

46

:

I.

Because of the nature of its responsibilities,and to avoid conflicts and to promote coopera-tive action, the Board coordinates its activitieswith those of other agencies. It works closelywith the Ministry of Finance, the Central Sta-tistical Bureau, the Central Bank, and theMinistry of Education. Coordination with theMinistry of Finance is 5:vecially vital whenthe Labor Market Board authorizes the releaseof employers' deposits in the Investment Re-serve Fund to counteract cyclical unemploy-ment. Similarly, the Board's actions to accele-rate or restrict the issuance of building permitsand construction credits require close coopera-tion with the housing authority. Governmentprograms under the direction of the Ministriesof Agriculture, Commerce, Defense, and SocialAffairs may also have labor force implicationsof interest to the Labor Market Board. Many.of the Board's local activities are undertakenwith the participation of county and municipalrepresentatives.

Two other outstanding characteristics of theSwedish Labor Market Board are its decentral-ized organization and its reliance on participa-tion by labor and management representatives.

The composition of the National LaborMarket Board reflects its tripartite nature. Itconsists of three Government membersthedirector-general (who is chairman), the deputydirector-general, the chief engineerand eightother members appointed by the Government.Two representatives are from the Swedish Em-ployers' Confederation (SAF), two from theGeneral Federation of Swedish Trade Unions(LO), and one member each from the CentralOrganization of Salaried Employees (TCO) ,

and the Confederation of ProYessional Asso-ciations (SACO). In addition, there is a mem-ber who represents female workers and onewho represents agriculture.

A distinguishing feature of the Labor Boardadministration is the ability of the threegroups, labor, management, and Government,to work together despite the varied interestseach represents. Communication between thethree groups is specially good at both nationaland local levels. In maters of local interest,triparne task forces are created as the needmay arise to consider special problems, such asthe employment of older workers, the disabledand handicapped, and seasonal employment.

The Board's staff organization reflects the de-

centralization which characterizes Sweden'sGovernmental structure. While the ultimateresponsibility for implementing national poli-

cies is vested in central boards, as previously

stated, county and district offices actually carryout the national policies and undertake supple-

mentary local programs as needed.

Several staff functions performed in the cen-

tral headquarters of the Labor Market Board

support the effective administration of man-power programs. The collection and dissemina-

tion of information on placement and recruit-ment, training and retraining, immigrantworkers and international exchange of traineesis undertaken by the Employment Service Bu-reau, which provides effective guidance on thesematters to county and district offices. The Vo-cational Guidance Bureau, working in closecooperation with the Board of Vocational Edu-cation of the Ministry of Education, stimulatesforecasting of training and employment thatis useful for vocational guidance in the youthemployment activities. The Sheltered Employ-ment Bureau iprovides administrative and tech-nical assistance to local authorities aiding thehandicapped, older workers, mentally retarded,and others who require sheltered workshops,vocational rehabilitation, or special trainingprograms.

The Labor Market Board has other centralstaff functions that are necessary to unifiedadministration. The Finance Bureau guidesthe fiscal management and the audits of all

programs. The Technical Bureau is concerned

with the development and administration of

public works programs to combat unemploy-ment. The Chancery Bureau handles legal andadministrative matters and supervises non-profit agencies which act as placement officesfor their members.

Situated :within the central office of the LaborMarket Board is the Unemployment InsuranceDelegation, which deals with questions con-cerning the approved unemployment insurancesocieties. The delegation consists of the Beard'sdirector-general and deputy director-general,together with three representatives of the so-cieties who are appointed by the Government.These societies, over which the delegation hasauthority, constitute the Swedish unemploy-ment insurance syStem. In all, there are 47

societies established by different unions butadministered separately-- from the unions aslegally independent entities.. Participation in

the insurance society is obligatory for unionmembers. The funds are financed by contribu-tions from the members and the Government,one-third coming from the members, and theremaining two-thirds from the Government.About 1.4 million workers are insured in these

societies.

In 1964, the economically active population inSweden numbered about 3.8 million persons outof a total population of 7.6 million persons.This labor force is one of the most highly or-ganized of any democratic country. The esti-mates for 1964 are that about two-thirds of all

wage and salary workers belonged to sometrade union: -Over-95-percentof all union mem-bers belong to two federations. The largest is

the General Federation of Swedish TradeUnions with over 1,500,000 members, and thenext largest is the Central Organization ofSalaried Employees 'with a membership ofabout 500,000. The remaining federations haveabout 110,000 members.

The County Boards

The Board's regional organization is headedby 25 County Labor Market Boards (Lansar-betsnamnd), one in each of the 24 counties(lan) and one in the city of Stockholm. The

county boards consist of a chairman, usuallythe governok a the county, and five other mem-bers representing workers, salaried employees,employers' organizations, agriculture, and fe-male workers. These boards direct the countyemployment services. They are also responsiblefor carrying out the Board's national programsand for initiating local measures to counter un-employment.

Each county employment service, in turn, in-cludes a head office, with a director and deputydirector, and a number of b?3anch offices. Inaddition, smaller communities have district em-ployment agents who are available regularly anhour or 2 a day or local agents who are avail-able for consultation but have no fixed times of

doing business. The larger offices operate spe-cialized placement services for several occupa-

47

tional and industrial groups of workers ac-cording to needs in the area. They also offervocational guidance and vocational rehabilita-tion, as well as special services for unemployedworkers who have special employment prob-lems, i.e., the handicapped, older workers, etc.In 1963, there were about 235 branch offices,220 district agents, and 190 local agents. Count-ing the head offices, specialized services wereavailable for white-collar workers in 28 offices,for seamen in 35, and for artists and musiciansin 3. Forty-two offices provided vocationalguidance services; 32 handled vocational re-habilitation. This extensive coverage through-out the country helps the employment serviceto keep a finger on the economy's Pulse.

The county employment offices assess theneed for emergency works and may, in somecases, -initiate -projects_on.their pw.n..cognizance.However, as a general rule, the decision is madeby the National Labor Market Board. TheBoard can also encourage/ local works by allo-cating state credits for/employment stabiliza-tion. It is significant that the Swedish penchantfor decentralization provides for local action ifneeded.

Operations of the Labor Market Board

The Labor Market Board's use of its powersto influence the demand for manpower and tofacilitate worker adjustment to economicchanges is a reflection of the board's senditivityto the constant flow of information on localmanpower situations from its extensive net-work of offices throughout the country: Volun-tnry participation by labor and management invarious activities is also significant in keepingthe board informed. The complerhentary rolesplayed by the National Labor Market Boardand the county boards in implementing an ac-tive manpower policy are spelled out later in adescription of the manpower program in

Sweden.Sound and intimate knowledge of the employ-

ment situation is .an imporltant element ofSwedish full employment policy. The essenceof the Board's "intelliAnce" operations is thespeedy reporting of detailed informatioh oncurrent and impending employment deVelop-

48

ments. The local offices make daily reports onlistings of job vacancies and notices of im-pending layoffs, as well as on claimants regis-tering for unemployment benefits. Regular sur-veys also are made of the labor force and ofshort-term employment requirements. Researchon longer-term ocdupational requirements is an-

other undertaking.

Early Warning System

Most employers advise the Boards local of-fices 60 days in advance of impending layoffs orshutdowns. The information is considered con-fidential and is used only for administering theBoard's programs. The reporting system isbased on voluntary agreements between theBoard and employers' associations which covera major part of private employment. There arecorresponding official policies for public em-ployment with the exception of municipal cor-porations and authorities. The general feelingin Sweden id that this voluntary system worksvory well, but legislation has been proposed to

make reporting compulsory.

Job Vacancies

Employers are not compelled to list vacancieswith the employment service, but many of themdo so. The local offices post vacancie3, advertisethem in newspapers and on radio and television,and even have a telephone information serviceon job vacancies, for the widest possible pub-licity. In addition, information on job openingsthat cannot be filled by local workers is circu-lated to other offices. Currently, the employ-ment service fills about 900,000 to 1,000,000vacancies a year. About 70,000 involve themovement of 'workers from one region to an-other. About one-fourth of those who do movefrom one region to another accept short7termemployment.

Estirhates cf Manpower Requirements

The County Labor Market Boards conductmonthly surveys to obtain short4erm forecasts

of manpower requirements. The surveys aresupplemented twice a yearin winter and sum-mer--for the purpose of determining man-power trends in the country from 6 to 12months ahead. Interviews and questionnairesare used to obtain information from employerson order backlogs, inventories, productionschedules, labor requirements, equ ipmentchanges, capital investment plans, etc. Com-piling these data for the entire country oftenprovides clues to the probable course of thebusiness cycle.

Studies by the Vocational Guidance Bureauof the Board's central office and the PrognosisDelegation of the Central Statistical Bureau,formerly in the National Labor Market Board,are directed toward long-term occupational re-quirements and changes in the occupationalstructure of the labor force:

Information supplied by the county boardsis designed to assist in planning for vocationaleducation requirements and in the developmentof national manpower policy.

Labor Supply

Sweden's experience during the 1958-59 re-cession disclosed the need for better informa-tion on labor supply if labor policy was to becarried out efficiently. Since 1959, the Board'slocal offices have been making quarterly laborforce surveys. These surveys utilize techniquessimilar to those employed in preparing the U.S.Department of Labor's Employment and Earn-ings and Monthly Report on the Wor Force,and with a considerable amount of demographicdetail. The principal aim of these surveys isto determine the shortrun variations in thedifferent labor force components.

The Board's supervision of unemploymentinsurance activities is another source of infor-.,

mation on the availability of manpower. Al-though, as indicated, unemployment insuranceis provided through union-sponsored societies,all claimants are required to register with thelocal employment offices as a prerequisite toreceiving unemployment benefits from the so-ciety. State subsidies for unemployment com-pensation, which amount to about two-thirds ofthe total, are based on registrations. These

subsidies are dispensed through the Board'scentral office.

Labor Demand Activities

The official manpower statistics are supple-mented by careful study of other data (onwages and prices, for example) as a foundationfor the Board's decisions on the timing andscale of its actions to affect both aggregate andlocal demand for labor. Aside from its ownactions, the Board is_responsible for advisingthe nafional Government, the employers' asso-ciations, and the trade unions on desirablepolicy changes vis-a-vis fluctuations of the busi-ness cycle. The Board uses both persuasion anddirect action in whatever combination is indi-cated for the maintenance of full employment.

Special Programs to Combat Unemployment

Public Works and Government Purchases

An essential ingredient of Swedish man-power policy is the Government's adaptation ofits own investment and procurement policies tothe prevailing economic situation. The LaborMarket Board can restrict or initiate invest-ment in public works according to the season,the stage of the business cycle, or the geo-graphic location of unemployment. It can alsoact to_step up or defer Government purchases.It may also use public works to provide jobs forolder workers who could not otherwise be em-ployed.

Each year, the National Labor Market Boardpresents Proposals to the Government for aPublic Projects Reserve, covering Government-financed and Government-aided projects thatcan be initiated on short notice. The Parlia-ment annually delegates to the Board power touse funds from the reserve when unemploymentwarrants. The Board's annual review yields acurrent portfolio of projects which are sched:-uled over the next few years, but which can beinitiated ahead of schedule. These projectstkpically call for the construttion and mainte-nance of roads, bridges, harbors, preparation of

49

firebreaks, and other short-term activities.Such works have been especially useful in re-ducing seasonal unemployment among forestryand agricultural workers, but have also beenused during cyclical downturns.

To provide employment for older workers,the Government also gives a 50-percent subsidyto local communities for "cheaper local publicworks." These projects consist of light work inpublic parks and forest areas or in road andstreet maintenance, as well as certain jobs inmuseums and libraries.

Employment in emergency public worksvaries from about 2,000 to 3,000 during thesummer to as many as 15,000 during the wintermonths. The range at a given season betweenperiods of boom and recession is narrotrer.

The Public Projects Reserve also includesfunds earmarked for stimulating employmentby increasing the volume of central and localGovernment purchase orders to industry. Spe-cial appropriations are also made for this pur-pose. The reserve fund for orders to industrycan be used during a general recession or di-rected toward a particular industr-y.dependingupon the circumstances. _Part of the total *re-servk may be used by the Labor Market Boardwithout consulting Parliament if speedy actionis required. The Board is also empowered tosubsidize accelerated orders to industry by localauthorities, up to 20 percent of the cost.

In the recession of 1958-59, a -stepping-up ofGovernment procurement is estimated to haveprovided 50,000 jobs. In 1963, public orders formachinery were instituted on short notice tooffset a decline in employment due to a drop inexports.

Investment Reserves

To counteract cyclical unemployment, theGovernment encourages private enterprise toset aside during good years up to 40 percent ofan employer's pretax profits. Tax concessionsby the Government provide the incentive forfirms to participate voluntarily in the program.Of the amount set aside, 46 percent must be de-posited in a noninterest-bearing account in theCentral Bank, the remainder, 54 percent, re-mains as working Capital with the firm. Invest-ment reserve funds thus set aside can be used

50

only for certain allowable purposes (plant con-struction, new machinery, etc.) . The functionof such a plan is to assist in maintaining anadequate level of demand throughout the coun-try.

If a recession occurs, the Ministry of Financedeclares the time appropriate for investmentand the Labor Market Board authorizes the re-lease of funds for approved purposes to indi-vidual companies. The amount invested is notrestored to taxable income. In addition, thefirm can deduct from its next tax return 10percent of the amount of the reserve invested.Investment funds placed in the Central Bankcannot be withdrawn without authorization,although after 5 years depositors are free touse 30 percent of their reserve for allowable

purposes. The amount used is not restored totaxable income. If the firm uses its investmentreserve funds without permission, the amountinvolved is restorable to taxable income plus a10 percent penalty.

Although the Labor Board authorizes the useof the investment reserves, the county boardmust certify each project and has the authorityto postpone its starting date.

On two occasions the Labor Board has au-thorized release of funds from the reserve; dur-ing the recession of 1958-59 and during theJuly 1962April 1963 recession in the buildingindustry. Approximately 1 billion SKr (orabout $200 million) was invested in housing,construction, and roads and forestry machineryand equipment on the first ocasion, and about600 million SKr was authorized for construc-tion projects in the second instance. The 195859 withdrawals represented about 80 percentof the funds accumulated up to that time.

Management of the reserve fund provides the.Government with ,an effective means for stithu-lating investment when general economic- con-ditions would tend to discourage such action.And during boom periods which generategreater demands for labor, tight control of thereserve fuild tends to retard business activitywhich would stimulate demand for workers.

Industrial Locations

,The Labor Market Board, through its Loca-tion and Research Division, also influences, al-

though it does not actually determine, whereriew plants will be located. A firm seeking thgBoard's help will be assisted once the company'smanpower needs are known. The Board's staffwill make recommendaticms for plant locationsconsidering area needs for employment. Favor-able consideration is given to areas where thedominant industry is susceptible to changes inbusiness activity, where a major plant has beenshut down, where most jobs are suitable foronly one sex, and where population is being lostto the cities.

Housing Construction

Housing construction is used in Sweden asboth an instrument of fiscal policy and a means

for creating employment, since 95 percent of allhousing is built with Government loan funds.Parliament fixes the minimum level of buildingcredits available annually, but the Governmentmay raise the level if the employment situation

warrants. The housing authorities and theLabor Market Board cooperate in allocatingconstruction funds to the regions, basing de-cisions On both housing needs and employmentrequirements. The county boards work Withlocal employers' and workers' organizations,and the municipalities in the collection of dataon the amount of housing planned and in prog-ress and the manpower involved. In addition,the county boards make quarterly forecasts ofbuilding activity in their regions for the com-ing 12 months.oThe county boards also controlthe issuance of building permits, recommendwhen work is to be started, phase the timeschedules for work, estimate the nurnber ofworkers required, and determine their age dis-tribution. The last-nanied feature is to creatework opportunities that will be open to andshared by older workers.

This permit review authority was effectivelyused during the recession of 1962-63 and iscredited with creating approximately 10,000additional jobs in building construction alone.On the other hand, permits can be withheld iflabor is scarce or construction starts delayedto extend the season of construction activity.

Occupational and Geographic Mobility

The Role of the Employment Services

On the supply side of the manpower equation,Swedish policy provides measures for facilitat-ing workers' adaptation to economic changes.As previously indicated; these measures arecarried through by a wellinformed and efficientnetwork of employment offices which is spread

_throughout the country. These offices offer awide range of services which permit employ-ment officials to offer employment for virtuallyall applicants.

The serviCes of the employment offices areavailable free to all applicants and a wide va-riety of occupational choices are offered. Theemployment offices are completely neutral indisputes between workers and employers andimpose no standards concerning terms of em-ployment. They aim to provide employers withthe best available manpower and workers withthe jobs for which they are best suited. Bothemployers and workers are completely free tomake their own employment decisions. Actu-ally, it is not compulsory that all jobs be filledthrough the enyloyment service; the only re-quirement is that unemployed workers mustregister with the service if theY wish to drawunemployment beifefits.

Effective placement has become the most im-portant means of helping workers to adjust tochanges in their employment situation. Theimage of the service has developed as an effec-

tive intermediary in bringing workers and jobstogether. Placements are not only high in com-parison with most other countriesusually ap-proximating one-third of all job openings dur-ing the yearbut also involve many interareatransfers, as previously indicated.

The placement offices can offer a number ofincentives to stimulate both geographic and oc-cupational mobility, as well as specialized serv-

ices for workers with difficult employmentproblems. If the worker needs to move, he canreceive travel grants and other financial assist-ance. If he needs to change occupation, he canreceive vocational guidance and training or re-training. If he chooses training, he can receivean allowance geared to his family responsibili-

51

ties. If he is handicapped, rehabilitation pro-grams are available. Later, the worker can beplaced in a sheltered workshop where he canearn minimum wages, but without the pressuresusually found in a regular job; when skills areadequate, he may be placed in normal employ-ment. If he is young, he can be helped to finda job on which he can receive training. Anolder worker can be assigned to work on a pub-lic works project in his community if he cannotmove or is unable to take training.

Vocational Training and Retraining

Training is rapidly becoming one of the prin-cipal means of helping Swedish workers tomaintain their employment capacities. Duringthe years 1958-62, training courses increasedin number from 55 to 822. Currently, about 1percent of the labor force (37,000 persons in1963, including 14,600 women), enroll eachyear for some training. The Swedes are alsopreparing for the future, when they expect tohave between 1 and 2 percent of the labor forceundergoing retraining. An equivalent effort inthe United States would involve over 750,000trainees annually.

Training courses cover about 100 differeiitoccupations in" such diverse fields as carto-graphy, nursing, weaving, and housekeeping.Depending upon the nature of the occupation,the training periods vary from 1 month to 2years. Whenever possible, training courses areoperated on a continuing basis so that traineescan be referred to a course at any time.

The employment service determines theneed for courses, recruits and subsequentlyplaces trainees, and pays training allowances.The courses are worked out by the employmentoffice and school authorities jointly, in consul-tation with employers' and labor organizations.Training is provided by the school authorities,who provide premises, secure instructors, andacquire supplies, tools, and equipment. At thenational level, the Labor Market Board workswith the National Board of Technical mid Vo-cational Education, which is responsible foradministering the _training program. Since1960, the two agencies have worked togetherthrough a coordinating body established forthe ptiipOse.

52

Training is available for the unemployOtpersons whose jobs or skills are in 4angerrofbecoming unnecessary, the partially disabled orhandicapped, and the middle-aged and elderlypersons who are difficult to place. Special ef-forts are being made to increase the participa-tion of married women in the labor force byproviding _training activities in occupationssuitable for them. Single persons, mostlywomen, who are responsible for the care o,fminors and who are employed in loi'V-paying,unskilled jobs unsuitable for heads of house-holds are being trained for clerical and officepositions where the income possibilities are.better.

The number of women enrolled for traininghas increased in recent years, reflecting effortson the part of the Labor Market Board to in-crease the participation of married women inthe labor force. During the fiscal year 1961-62,43 percent of the persons receiving trainingwere-'-Vomen, about three-fourths of whomwere enrolled in practical nursing or clericalcourses.

For the handicapped, the nationa:l employ-ment service provides vocational guidance, vo-cational rehabilitation, and on-the-job trainingusually in special/centers organized by the-communities or priVately. For those who can-not find jobs in the oien market after rehabili-tation, employment is provided in shelteredworkshops where guaranteed minimum wages,established by collective bargaining contract.are paid. The sheltered workshops are usuallyorganized by the 'local communities or privatefoundations. These projects are assisted byGovernment grants which Will defray about 50percent of the cost of machinery and buildings,plus about 15 percent of operating costs.

ly

Training Allowances

An unemployed worker or other personqualifying for training receives a generous al-lowance. The basic allowance is 410 SKr ($82)a month, and there is an additional allowanceof 10 SKr ($2) per month for work clothing.If the training center is. not at the trainee'splace of residence, he receives a room rent al-lowance ranging between 85 and 125 SKr ($18and $26) a month, depending on the location

of the center. Additional family and housingallowances vary according to whether he takeshis family to the training site and how manychildren and other dependents he has. Oneestimate indicates that a Swedish worker canobtain as a maximum the equivalent of $206a month while in training. Training allowancesare intended to provide the trainee with ap-proximately two-thirds of previous averageearnings.

Most trainees have the option of receiving atraining allowance or unemployment insurancebenefits while undergoirg training.

Most of these elect to receive training al-lowances, which are higher than unemploymentbenefits. Moreover, for married workers, thebasic training allowance plus supplementarypayments for housing and dependents exceeds

the unemployment benefit.

Vocational Guidance

Vocational guidance is available for appli-cants who are considering occupational train-jng but have serious questions concerning em-ployment prosijects, as well as for' those whowish to change occupations without retraining.Although the employment service may usetests as a basis for determining the abilitiesof applicants for certain types of advancedtraining, testing as a means for selectingtrainees is not very widely used. Most traineeshave a wide range of occupational choices opento theiri and will make their own decision onwhat training to pursue.

The main offices of the employment servicein each county are the centers for guidance,with special officers available on a part-time'basis in the branch and local offices. Thecounty' offices are responsible for organizingand supervising vocational guidance f Tough-out the county. The greatest effort is concen-trated on counselink students. Vocational guid-ance classes are given in the secondary schools,and individual counseling is also provided.Prevocational training jobs are arranged forstudents to familiarize them with various occu-pations, and school-leavers are helped to finkon-the-job training situations by the youth em-ployment service.

Vocational education and guidance for youthin Sweden are a part of the general school pro-gram, and the vocational schools are of equal

rank with the compulsory school and the sec-ondary school. Several years ago, Parliamentincreased the duration of compulsory schoolingfrom 8 to 9 years. In the 9th year, studentsmay select 1 of 8 different educational objec-

tives as a specialty: college preparatory, hu-manities, practical, mechanical, technical, mer-cantile, business, or -social economics. Underthis plan, vocational education begins aftercompletion of the 9 years of compulsory edu-cation. Each vocational curriculum is suffi-ciently broad to give the students a soundbackground for later occupational flexibility.Vocational education is conducted by the mu-nicipal districts, with subsidies for part of thecost from the national Government.

Relocation and Resettlement Allowances

The depressed areas of Sweden are in thenorth, where seasonal unemployment is highbecause of the short summer and where work-ers are being displaced by technological im-provements in forestry, the major industry.While Swedish manpower policy was not de-signed especially to benefit the northern region,it provides the Labor Market Boards with themeans to stimulate movement from the north.At the same time, labor board officials in otherareas can assist workers who want to take jobsin localities away from their homes. Theseaids to mobility consist of a series of removalor relocation allowances which are available tounemployed workers and those who have re-ceived notice that their jobs are in jeopardy.

Travel expenses can be paid for job inter-views. If the worker accepts employment inanother area, he may receive either his dailycommuting expenses or a subsistence allvancefor board and room until he makes suitablehousing arrangements for his family. Hisfamily also receives an allowance if he livesaway from home, the amount depending on thesize of the family. The full amount is paidduring the first 3 months he is on the new job,two-thirds for the next 3 months, and one-thirdfor the following 3. Once a home is found, theGovernment will help defray the worker's mov-

53

ing expenses. Housing shortages appear tohave been a major obstacle to mobility.

A worker living in a congested area whoaccepts a job in an area where labor is in shortsupply is eligible for a "starting allowance"to tide him over until his first paycheck isreceived. This allowance varies, dependingupon the estimated duration of employment.

To further stimulate movement from the farnorth, the Government provides resettlementgrants of 2,000 SKr ($400) for workers whomove from the five northern provinces. Thesegrants help the worker to avoid the burden ofdebts which movers often incur.

54

The total cthe Swedis1958-63 aabout $6anc or 39

r 10,853 w52,651 orone-fourth oaway from IR

The cost oing the fiscamillion SKr125 million1962-63.

rekration ram toe. r peAed 0?,-A);1

n SKr:. -olgki,y,t;RroMed: athngke laOly ailowa

4,01ovi*nceoleidicated atouf,

0:10 accep:t jolt.employMent.

amounted to F178

aiid increastd tofor fiscal y.eat

SELECTED BIBLIOGRAPHY

GENERAL-,-_-BOOKS AND PAMPHLETS

Area Redevelopment Policies in Britain and the Countries of the Common Market. Los Angeles:.University. of 'California, Institute of Industrial Relations, January 1965, 481 pages, for theU.S. Department of Commerce, Area Redevelopment Administration:

Arrangementg o Facilitate the Establishment of New Economic. Activities. Luxembourg:European Coal and Steel Community, 1962.

CIRF Abstracts. Geneva: International Labour Organisation,-International Vocational Training. Information and Research Center, vols. I-IV.

Edelman, Murray J. and Fleming, R. W. The Politics of Wage-Price -Decisions, a FoUr-CoUntryAnalysis. Urbana, Ill.: University- of Illinois Press, 1965, 331 ,pages.,Ez

European Apprenticeship. Geneva: International Labour Organisation, International VocationalTraining Information and Research Center, 1966, CIRF Monography Vol. 1, No. 2, 276 pages,for the U.S. Department of Labor, Manpower Administration, Office of Manpower, Automa-tion and Training.

Green, Alfred L. A Study dnii Appraisal of Manpo;er Prog-rams Ai Related to A Policy di:FullEmployment in France, ,Great Britain, The Netherlands, and Sweden.- I\Tevc York: New-.York State Department of Labor, September .1963, 1:19 pages. .

Gordon, Margaret S. Retraining and Labor Market Adjustment in Western Europe. WaShing-- ton: U.S. Department of Labor, Manpower Administration, Office of Manpower, Automa-tion and Training, 1965, Manpower/Automation Research Monograph No. 4, 220 pages.

Intern,ational Differences in Factors Affecting* Labour MobilityInter-industry, Occupationaland Geographical. Geneva: International Labour Office, 1965, 201 pages. (Processed.)

International Management Seminar on Active Manpower Policy, Supplement tO the Final Report.Paris: Organisation for Economic Co-operation and Development, 1964, 207 pages."

International Management Seminar on the Relation of the Public Employment Services to Man-eigement in the Recruitment of Personnel. Paris: Organisation" for Economic Co-operationand Development, 1965. (Supplementary documents on various countries.).

InternatiOnal Trade Union Seminar on Active Manpower Policy, Final Report. Paris: Organisa-tion for Economic Co-operation and Development, 1964, 172 pages; and Supplement to theFinal Report, 1963, 189 pages.

_Lessons from -Foreign Labor Market Policies. Washington: 88th Cong., 2d sessr, U.S. Senate,Committee on Labor and Public Welfare, Subcommittee on Employment wild Manpower,1964, vol. 4 of Selected Readings in Employment and Manpower, pp. 1377-1588.

Manpower and Social Affairs Committee Annual Reports, Sumfnary of Answers to QuestionnaireMO(64)10. Paris: Organisation for Economic Co-operation and Development, January1965, 24 pages. ,

Martin, Victor. Accelerated Vocational Training for Adults. Paris: Orgänisation for Economic'Co-operation and Development, 1965, 132 pages.

Measuring Employment and Unemployment. Washington: President's Committee to AppraiseEmployment and Unemployment Statistics, 1962, 412 pages.

The Measurement and Interpretation of Job Vacancies, -A Conference Report of the NationalBureau of Economic Research. New York: Columbia University Press, 1966, for-the U.S.Department of Labor, Manpower Administration, Office of Manpower, Automation .and--

Training, 593 pages.

The Role of Apprenticeship in Manpower Development: United States and Westerji Europe:Washington: 88th Cong., 2d sess., U.S. Senate, Committee on Labor and Public Welfa-re,

Subcommittee' on Eniployment and Manpower, 1964, vol. 3 of Selected Readings in hniploy-

ment and Manpower, pp. 1107-1376.

Tinbergen, J. Central Planning. New Haven, Conn. and London: Yale University Preis, 19M,

150 pages.

Williams, Gertrude. Apprenticeship in Europe. London: Chapman and Hall, 13, 208 pages.

Williams, Gertrude. Recruitment to Skilled Trades. London: Routledge, and Kegan 1957,

216 pages.-

GiNERALPERIODICALS

0Braun, Kurt. "European Limitations on Employee Dismissal," Monthly Labor Review,-iiinuary

1965, pp. 67 and 68.

Barkin, Solomon. "The Manpower Policies of the,Organisation for Economic Co-operition and

Development," Business Topics, Autumn 1963, pp. 1-16.

Groom Phyllis P. "Retraining the UnemployedEuropean Government Programs," Monthly

Labor Revixw, August 1961, pp. 823-828.

Labor Developments Abroad. (Washington: U.S. Department of Labor, Bureau of Labor Statis-

tics, May 1949 to present), selected issues.

"Manpower Policies in Europe," Training for Progress in Europe and theWorld (Geneva: In-ternational Labour Organisation, International Vocational Training Information and Re-

search Centers No. 2-4, 1963), pp. 65-80.

Neef, Arthur F. "International Unemployment Rates, 1960-64," Monthly Labor Review, March

1965, pp. 256-259.

56

44, t

4.

'FRANCE-i-BOOKS AND PAMPHLETS

Bauchet, Pierre. Economic Planning, the French Experience, trans. Dauphine Woodward. New...-

York: Fred A. Praeger, 1964, 299 pages.

Cazes, Bernard. La Planification.fin France ot le IP Plan. Paris: Les Editions De L'Epargne,1962, 282 pages.

Accelerated Vocational TrainingEuropean Productivity Agency. Paris: Organisation for Eco-nomic Co-operation and Developnient, 1964, pp. 211-248.

The First Five Years of the Fifth Republic of France, January 1959-January 1964. Ne* York:Ambassade de France, Service de Presse et D' Information, 66 pages. Other releases andreports.

Hackett, John and Hackett, Anne-Matie. Economic Planning in France. London: George Allen& Unwin Ltd., 1963, 418 pages.

Male, George A. Education in France. Washington: U.S. Department of Health, Education, andWelfare, Office of Education, 1963, Bulletin 14091-No. 33, 205 pages.

Manpower and Social Affairs Committee Annual Reports Repl to Questionnaire MO(64)10/08France. Paris: Organisation for Economic Co-operation and Developmenti 1964, 18 pages.

Perronx, Francois. Le lye Plan Francais. Paris: Presses Universitaires De France, 1963, 126pageg.

Ridley, F. and Blondel, J. Public Administration in France. New York: Barnes and Noble, Inc.,1965, 330 pages.

Vocational Training, Report by the Austrian Trade Union Team which visited France October28-31 1963 to study Vocational Training. Paris: Organisation for Economic Co-operationand- Development, National Missions 1963, Report No. 612 pages.

FRANCEPERIODICALS

Alpert; Paul. "Planning: Key to Growth?" (France's Postwar Economy). Challenge, December

1962, pp. 21-25.

"Labor Conditions in France," Monthly Labor Review, October 1944, pp. 705-727.

"Retraining of Workers in France: Act Respecting the National Employment Fund," Inter-national Labour Review, June 1964, pp. 182, 183, and 598-600.

Simon, Frederic. "Employment Offices in France," Employment Security Review, August 1953,

pp. 11-14.

GERMANYBOOKS AND PAMPHLETS

Arntz, Helmut. Facts About Germany, 1945-58. Bonn : Press and Ihformation Office of theFederal German Republic, 1959, Yearly Reports, 2nd. ed., 224 pages.

Social Policy in Germany. Bonn: Federal Ministry of Labour and the Social Structure, variousmonographs on aspects of Manpower published in 1963 and 1964.

57

GREAT BRITAIN-1r AND PkMPHLETS

Employment Policy, British White Paper. London: Office of the Minister of Reconstruction, HerMajesty's Stationery Office, May 1964. Also, New york: Macmillan and Co., 1945.

Industrial Training Act 1964. -London: Ministry of Labour, Her Majesty's Stationery Office,

April1964, 15 pages.

Manpower Studies No. 1: The Pattern of the Future. London: Ministry of Labour, I-kt Majesty's

Stationery Office, 1964.

Manpower Studies No. 2: Manpower-The Metal Industries. London: Ministry of Labour,'Her

.:Majesty's' Stationery Office, 1965.

Manpower Studies No. 3: The Construction Industry. London: Ministry of Labour, HerMajesty's

Stationery Office, 1965.

The National Plan. London: Department of Economic Affairs, Her Majesty's Stationery Office,

September 19_65, 474 pages.

Northwest: A Regional Study. London: Department of Economic Affairs, Her Majesty's Sta-

tionery Office, 1965, 178 pages.

The West Midlands: A Regional Study. London: bepartment of Economic Affairs, He-rMajesty's

Stationery Office, 1965, 115 pages.

NETHERLANDSBOOKS AND PAMPHLETS

.:FirstMemorandum -on the Central Economic. Plan,194,6 -and National Budget 1947..The Hague:

Central Planning Bureau of the Netherlands, September.1946, 65 .pages.

Manpower and Social Affairs Committee Annual Reports Reply to Questionnaire MO(63)17

t Netherlands. Paris: Organisation for Economic Co-operation and Development, 13 pages.

Tinbergen, J. The Analysis of Unemploymenf Fiores" and the Alleged Correspondence BetWeen

Causes and Cures. The Hague: Central Planning Bureau, Reprint from Metroeconomica

1953, Reprint Series 27., vol. 5, No., 2, pp..43-49.

Vocational Training for Adults in The' Netherlands. The Hague: Ministry of Social Affairs and

Public Health, State Labour Office, April,1964, 82 .pages.

NETHERLANDS PERIODICALS AND JOURNALS

Bussey, Ellen M. "Recent Wage Control Policy in The Netherlands," Monthly Labor Review, May

1964,, pp. 517-521.

Centraal Economisch Plan. (The Hague: pentraal Planbureau, published annually 1949-1964).

Hattery, Lowell H. "The Netherlands' Automatic Information Processing Research Centre,"

Data Processing Magazine, April 1965, pp. 32-33.

"Holland Shows Eritaig," The EcOnomiSt, March: 6, 1965, pp. 1001-1015.

Oettinger, Martin P. "Nation-wide Job Eyaluation hi The Netherlands," Industrial Relations,

October 1964, pp. 45-59.

58

,

SWEDENBOOKS AND PAMPHLETS

Active Labour Market Policy, Report by The Netherlands Joint Team which visited Sweden

September 6-12 1964. Paris: Organisation for Economic Co-operation and Ilevelopment,

19 pages.

Employment .Policy and Manpower Mobility, Report by the Norwegian Joint Team which visited

Sweden September 9-13 1963. Paris: Organisation for Economic Co-operation and Develop-

ment, 7 pages.

Hauser; Francis L. Industrial Relations and Labor Market Policies in Sweden;Prepared for the

President's Advisory Committee on Labor-Management Policy. Washington: U.S. Depart-

ment of Labor, September 1962, 19 pages.

Labor Law and Practice in Sweden. Washington: U.S. Department of Labor, Burezu of Labor

Statistics, December 1964, BLS Report 285, 68 pages.

Labour Market Policy in Sweden, Reviews of Manpower and Social Policies. Paris: Organisa-

tion for Economic Co-operation and Development, 1963, 72 pages.

Schnitzer,-Martin. Unemployment Programs in Sweden. Washington: 1964, 51 pages. (Vaper

No. 5, Material ptepared for the U.S. Congress, Joint Economic Committee.)

Sweden. Paris: Organisation for Economic Co-operation and Development, April 1965, Eco-

nomic Surveys, 43 pages.

SWEDEN PERIODICALS

Starnes, Richard: "Sweden: Paradise or-Pipe Dream?" The Washington-Daily News, Mardi 1-

5, 1965.* U. S. GOVERNMENT PRINTING OFFICE: 1866-217-499'

,

59