The problem of the unemployed

Preface

The following essay has been written under a deep sense of the need of an honest effort at reducing if not abolishing the commercial and social cesspool of our age — unemployment. In this decade, when national ideals are taking a new and higher form, Unemployment, as a "problem of industry," should yield to the higher industrial and social righteousness. We desire to acknowledge our indebtedness to Dr. Josiah Strong, of New York; Mr. A. C. Pigou, Mr. Percy Alden, M. P. ; and Mr. W. H. Beveridge, of England, whose writings have greatly helped the writer to arrive at definite conclusions.

THE AUTHOR.

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Contents

I. Statement of the Case 9

II. Definitions and Divisions 14

III. Extent and Seriousness of Condition. . 21

II Definitions And Divisions

' I 'HE same indefiniteness, or lack of care in making distinctions, is found in connection with this part of our subject. Men cannot be classified as unemployed, simply because they are for a certain time idle. Idleness and unemployment, are not always correlated terms. In our Western civilization, we have been unfortunate in substituting for the Eastern Caste, class distinction, which has been carried too far. Now a belief has grown that a man cannot pass from one class to the other. The current phrase, "Once a wage earner, always a wage earner," should be dropt. It is the mistaken ideas as to these classes, that has caused such a vagueness in certain literature, as to who are the unemployed. The importance of a clear distinction as to who constitutes the unemployed class is well brought out by Mr. John Burns, a labor leader of England. He thus writes, "In spite of some advocates of work for the unemployed, I may say, I contend as a Socialist, that until the differentiation of the laborer from the loafer takes place, the unemployed question can never be properly discussed, and dealt with. Till the tramp, thief, and ne'erdo-well, however pitiable he may be, is dealt with distinctly from the genuine worker, no permanent benefit will result to any of them. The gentleman who gets up to look for work at mid-day, and prays that he may not find it, is undeserving of pity." Other men as capable to judge, and not lacking in charity, state amongst the unemployed, are a large number of inefficient and worthless men, whose services economically are not wanted.

But again, let us consider, to what is due the inefficiency of the incompetents? Mr. Charles Booth, helps to answer the question when he says — "The irregularity Immediately resulting from fluctuation in demand, the seasons and other causes quoted. Is a sufficiently serious evil in itself, but other results as serious, if not more so, follow in Its track. Casual employment Is found almost Invariably to Involve deterioration in both physique and character. The hopeless hand-tomouth kind of existence Is . . . least conducive to thrift, self-reliance Is weakened, and habits of idleness, unsteadiness, and intemperance (are) formed." And the second generation suffers more. Now in classifying the unemployed. It Is well to remember, such facts and conditions. Unemployment, no question, may be, and Is, a part of Industrial competition, and as long as this condition, under the present system, lasts, there will be unemployed. Two questions meet us here, — ( i ) Is every one who Is unemployed at any time, whether by sickness, or some other cause, to be reckoned as among the unemployed? (2) Are those who do not want to work to be considered as among the unemployed? Unemployment is hard to define because so many varied conditions enter into the subject, and the various classes who are not constant workers, at times are employed, and so are considered workers. The public speak of the unemployed as those who are not occupied the full day, though tiiey may be employed part of the day. The British National Insurance Act basis its calculations, and idea of unemployment on the hours occupied in labor.

This act looks on a man as unemployed when he cannot obtain the work he desires," (i) otherwise than in a situation vacant on account of a stoppage of work due to an industrial dispute, (2) "in the district where he (workman) was last ordinarily employed, otherwise than at a rate lower, or on conditions less favorable, than those which he habitually obtained in his usual employment in that district, or would have obtained had he continued to be so employed, (3) in any other district, otherwise than at a rate of wage lower, or on conditions less favorable than those generally obtained in such district by agreement between associations of employers and of workmen, or, failing any such agreement, than those generally recognized in such district by good employers." Mr. Carroll D. Wright (1886) stated, "The unemployed are those who under prosperous times would be fully employed, and who during the time mentioned, were seeking employment." This definition greatly reduces the number of the unemployed. In justice to all, the partially employed should be added to the above. Some think the term unemployed designate those who do not get remunerative work. These would embrace those who work from quarter to half their time. Then there are the respectable poor who do not make known their condition, but who suffer because of under-employment. Through its Poor Law Commissions, England has reduced the number of the unemployed. This is done by making a special provision to care for what is known as the dependable classes. These are taken out of the unemployed class. These classes are, the aged, feeble-minded, and the immature. England then, knows, as unemployed only, ( i ) Men from permanent institutions who may be idle. (2) Men from discontinuous employment. (3) The underemployed. (4) The unemployables. In the report of the Minority of the Poor Law Commission to the British Parliament (1909) we find, in order to deal adequately with the problem of the unemployed, they insist that ( i ) "the aged, the sick, feeble-minded, the immature youth, who take the place of the experienced and drive them to forced inactivity, must be entirely removed from the Labor Market, and be provided for, by the authorities. Taking a broad view of the unemployed they appear as being such from two causes, (i) From industrial maladjustment. (2) Those who, from various causes are inefficient. These points cover the employer and the employee. The following division gives a very workable basis to get at the unemployed.

( 1 ) Unskilled laborers, physically and morally unable to work steady, for a continuous period. No law is known that can rule out these people from the ranks of the unemployed — they are there.

(2) The Actually Unemployables, who though obtaining odd jobs yet are more at home in loafing, and watching for charity doles, and breadlines. Government no question, should take this class in hand, and deal with them by the only measures that will be of value. Thus the ranks of the truly unemployed will be weeded out, and thus the problem will be made easier to solve.

(3) Efficient Workmen unemployed by prolonged depression of trade, from the many different causes that prevail.

(4) Skilled and Efficient Workmen temporarily, out of employment, owing to seasonal or unforseen stoppage of work, or some disturbance in the normal condition of the trade. Even in our unsatisfactory state as to the unemployed, these two last classes are the only ones that should be considered amongst the unemployed.

There is another class that cannot be forgotten. This is the underemployed, so called. These oftenest belong to the "Bare-Subsistence-Trades." Such are the trades who force the workman to work at wages below self-support. The underemployed, are a large class, and they are recruited mostly from the ranks of Casual labor. Some, it is true, have come from the higher grades. In this connection there is an actual leakage of labor power, which involves more serious issues than that through fluctuations of industry. Any agency that deals with unemployment, must deal first of all with underemployment for the step from this to unemployment is very short and direct. Underemployment is a very subtle and dangerous condition. The underemployed are those who are called on often enough, to be prevented from drifting elsewhere, and who keep at a high margin the reserve of labor. Their pay is inadequate to make a decent living, and they are a menace, not only to the labor market, but also to the genuinely unemployed. A demand for a living wage should quickly make the underemployed non-existent. To employ children at school at odd jobs, should also be prohibited by laws. To call the unemployed those who "are involuntary idle," is to enlarge the horizon too far. While the sentence is true enough as to the genuinely unemployed, how many elements are brought in which might be allied to the subject.

There is another definition which calls for a warm consideration. It is the one that confines the unemployed to those only who work for wages, and who by whatever cause, when their wages fail them are unemployed. We know that many economists, restrict the term "Unemployment," to a condition among the wage earning classes, and this in respect to wage work. If a man can do something after his day's labor is over this does not exclude him from the wage earning class. The term applies to wage earners when they are unemployed in respect to wage work. Many things might be said, against this view. We all know that unemployment does not include all the idleness of the wage earners. Unemployment refers to the forced idleness of men who want to work. This will exclude many classes, as those who do not want, for any price, to work; the sick, the aged, the infirm, and the feeble-minded. To come within the proper meaning of the term, the unemployed should be those who, are compelled to be idle, when they can and want work, but at present, such is not the current views. This is, any man, who living on a day's wages, is deprived of the means of earning this amount. Under this view the army of the unemployed is bound to be large.

Ill

EXTENT AND SERIOUSNESS OF THE CONDITION

npHIS will take in the number of the unemployed, and the extent of unemployment, with the results. It is the extent of unemployment that adds number and force to the army of the unemployed. A vital lack in our social, political, and industrial life is this, there is a great lack of information on this field of practical everyday life. Why it should be so, brings out in answer a condemnation of our attitude towards the unemployed. At the bar of this query, society is held as the accused. European countries, because of their longer acquaintance with this disease, and their methods of dealing with it, are in possession of a more exact information thereon. In the United States, conditions have been such that very little attention was given this social gangrene. What efforts that were made in the past to get at real facts, has been done by churches and charitable institutions in our large centres of population, because of the demand of the unemployed for relief. In answer to the question, — What is the number of the unemployed, we are face to face with the fact that there is no universal system to register the unemployed. The difficulty to get at the root of this is probably fundamental. It is much easier to find the number of the employed, but this will not help us. In England there are various ways to get at the number of the unemployed, and yet the net result is unsatisfactory. The Department of Labor in the United States, is too modern and too incomplete in its formation and function.

But this year it is in a far better condition to give good results, more so, than at any time. When we glance at England years back, its only means was the Relief Department of Government, with its Relieving Officer and Poor House plan in every assigned section. So unsatisfactory was the working of this system, that for years constant improvements are introduced. At the present time, there is in that country various methods to get at the condition. We will name first the Returns of the Trade Unions to the Labor Department of the Board of Trade. The other is the Report of the Distress Committees under the Unemployed Workman's Act of 1905. But these are far from being complete. The Returns of the unemployed by the unions are published monthly in the Labor Gazette. The returns for January, 1908, from the unions are these. Out of a membership of 649,789 there were 40,580 unemployed, in some form or other. But you will know, these unions cover only a very partial section of the labor market. Let us look to the report for the end of December, 1907. Here we find the unemployed— out of the employed reported by the unions, to be 6,1 per cent. Looking back a year to January, 1907, we find the percentage to be 4.2 (England). So unreliable, however, are the returns of the Trade Unions as to the unemployed, that it is better not to rely upon them. When we look to the Distress Committees we do not fare any better. Some of these committees have not taken any action. The others have been only partial. The power that created these committees entrusted them with the business of registering, investigating, and classifying the unemployed. Of the result, it is evident to all, that there is none. To show what a long period of suffering we have passed through, because of this diseased condition in the industrial and social circles we will hurriedly glance over various places and periods. The statistics as to the history of unemployment up to the year 1 890 are very meagre, especially in the United States. Previous to this, one of the best states to pay any attention to the unemployed was Massachusetts. Looking back on the history of this state we find that 29.6 per cent, is the record for the year 1885. This is the percentage of the unemployed as compared with the population of this state, and this for one year. In 1900 the returns gave 28.2 per cent. Taking the whole of the United States in the year 1 890 we find

— and taking the population of from lo years of age and over, that 15.1 per cent, were unemployed during the year. The returns for 1900 are doubtful, but they give us as unemployed 22.3. In England until the year 1875 there was a general decrease in unemployment. However, after that year there was a constant increase in the percentage of the unemployed until the year 1886 when it reached its maximum. Between this year and 19 10, owing to trade depressions the above maximum was not reduced. In the best years in England, never has the percentage of unemployment gone below 2 per cent. The lowest figure known is 2.2 per cent, and this occurred in the year 1899 in April and November. The reason for this was that many factories and works kept running. As regards the United States, it is generally conceded that in normal times, the statistics of Massachusetts, may be relied on in all parts of the country, that will come near the same condition. In 1885 a thorough inquiry was made in Massachusetts amongst all employed in productive industries. There were 806,- 470 bread-winners in the state. Of these 241,589 had been unemployed at their principal occupations on an average 4. 1 1 months in the year named. The total wage-earning population lost on an average 1.22 months. Of the 241,589 unemployed at their principal occupations, 10,758 found work at secondary occupations. Thus the unemployed lost during the year on an average 3.9 1 months, and the general Industrial population 1.16 months. The Commissioners of Labor said, "Abour one-third of the total persons engaged in remunerative labor were unemployed at their principal occupation for about one-third of the working time." Taking the census of 1900 (U. S. ) as our guide we find, and taking the whole country, and all industries into account, that there were 22.3 per cent, unemployed. In the manufacturing districts it was 27.2 per cent. We find that unemployment is more prevalent in the eastern, and northern (U. S. ) sections of the country. In Bedford, Fall River and other centres (Mass.), in 1S85, the percentage went up to 62 per cent. We often meet with the sentence, "fluctuation in the number of the unemployed." This "means that about 30 per cent, of the maximum number employed in the busiest season, are rendered idle during the slack seasons." This percentage is given for one state alone. But this condition is not confined to one state. In the anthracite coal mines, we find that the average time the men are employed is not more than two-thirds. Seamen on the lakes (U. S.) are not employed on an average more than three months of the year. In the clothing trades in New York City, conditions are but little better. During the first seven months of 1903 about one-third, and one-fourth of all the workmen of New York City were unemployed. This year id The Problem of the Unemployed

was considered prosperous. In times that are not as prosperous the number is much higher. In January, 191 5, the church of the Ascension, N. Y. City, situated on Fifth Ave,, employed rehable men to look thoroughly into the condition and number of the unemployed in that city (Greater N. Y. City). These men gave the following figures. They found 60,000 without work, money and shelter. The total unemployed as far as they were able to secure the figures were 562,700. They found 125,000 women. This is rather below than above the actual number. The United States Labor Report, referring to the year 1886 gives us the following facts, — "In establishments as factories, mines, and so on, 5 per cent, were absolutely idle during the year ending July ist, 1885, and perhaps 5 per cent, more were idle part of the time. In 1880 (census) there were 255,000 of such estabhshments employing upward of 2,250,000. In such establishments during the year mentioned, there were 168,750 employees idle." In 1880 this report gives, out of the whole population of the country (U. S.), 1,304,- 497 as unemployed. For the year 1885 the figures are 998,839 unemployed. And this in such a young country as ours, with everything to discourage unemployment. In the year 1895 (U. S. ) the number of the unemployed is increasing. Mr. Wright of the Bureau of Labor estimates that for the year, he reports 1,000,000 are unemployed of those who in prosperous times would be employed. Then what of those who are habitually on the unemployed list?

In the Annual Report of the American Telephone and Telegraph Company issued by its President, Mr. T. N. Vail, March 25, 1915, we find the statement that there are (on this date), 2,000,000 persons unemployed in the United States, whose yearly earnings should be, at least $1,250,- 000,000. Let us now see what is the testimony of the Fabian Tract, No. 5, as to England and Wales. "Of the great permanent Army of the unemployed, no reliable statistics can be obtained. Mr. Charles Booth writing of the class on or below the poverty line, — whose earnings do not exceed a guinea a week per family — numbered in London 1,292,737. To this number he added 99,- 830 inmates of workhouses, etc., making a total of 1,400,000 of the population of London. Then he adds of the pauper class 2,460,000. To add the pauper class is not wrong for the greatest number in this class are so because of unemployment." Mr. William Sproule, President of the Pacific System of the Southern Pacific Railroad, speaking at the end of February, 19 15, uses these very words, — "The country is in the midst of a period of unemployment and distress, the like of which the nation never saw before. It is the habit of the time to speak of unemployment as if it related only to those who work for a specific hourly or daily, weekly or monthly wage. It is thought of chiefly as relating to those engaged in minor places or in the humbler duties of life." Then he goes on to explain how present conditions affect business men. One term Mr. Sproule uses, is worthy of thought. It is this, "unprecedented condition." We find that to-day there are 6,000,000 women out of employment. Here is the list as if in a nutshell.

There are 10,000,000 in poverty.

There are 4,000,000 public paupers.

There are 2,000,000 (U. S.) unemployed.

There are 500,000 male immigrants annually.

There are 1,700,000 children of tender age who have to work, and as we are informed, in the southern part of the country, some of these children are as young as 5 years. Now from all the facts presented in their varied aspects, no sane mind can not but shudder at such a state, such a devastation and loss. The financial loss to the country apart from the individuals and families who suffer, is beyond the power of figures to compute. Then think of the poverty, want, and degradations of the individuals and their families who suffer. Then what about this hatchery for all forms of crime to the third and fourth generation. Thus unemployment is the cesspool for industrial and moral disease that can easily be fatal to all national enterprise and character. It is really the national gangrene that eats to the vitals of the nation's life. No man nor woman can escape the responsibility, for we have all fallen far short of our duty in this matter.

IV CAUSES— OR WHY THE UNEMPLOYED

npHESE have three distinct sources, but which finally amalgamate into one great Amazon — the unemployed. These sources are — ( i ) The individuals themselves. (2) Society. (3) Industrial conditions.

It is difficult to say what is the proportion between personal inefficiency, and industrial maladjustment. No question, — to some extent there is an interrelation. The same can be said of Society. As regards personal inefficiency, it is conceded, that most of this is found among the lowest grades of wage earners. Taking the estimates of Mr. Charles Booth, (1889), the two lowest classes constituted 8.4 per cent, of the entire population. Looking again on the part industrial disturbances play in this matter, we have to say, that owing to a lack of reliable figures from the whole field of labor, any estimate can only be an approximation. As an illustration from one section of the labor market, we may quote a fact given by Mr. Drage "(The Unemployed)." This illustration is taken from the conditions found on the London Docks (England) . To do the work required here, it is claimed that 4,000 reserve laborers were required, 6,000 workmen applied, showing that 2,000 men were seeking work, but could not find it a serious maladjustment. Society in this connection cannot escape the responsibility. Years back, we find Germany has fixed upon Society the responsibility for much of the poverty found in that country, in levying its insurance dues. Let us now turn to these points more carefully.

The Individuals Themselves

We are met here with the question — "How does personal character enter into the economic causes of unemployment ?" Some will answer at once — "You cannot classify men according to the causes of their unemployment." But we are not classifying according to this standard. If we cannot classify men, the men and their work classify themselves, and the employers are doing it. Character is a very important element in employment even the lowest, and most unskilled. Character, it is true, plays a more visible part, the higher we rise in the scale of labor. No question, unemployment is due to personal defects. There are men who are occasionally unemployed, but the unemployables are always weeded out. They do not satisfy the demand. Defect of character, everywhere, swell the army of unemployed. When economic conditions become such that men have to be discharged, the axe falls the first on those who have no character. An insubordinate, irregular, lazy man, as compared with the one who has the opposing qualities is the first to suffer. And if other moral defects belong to the man, the less hesitation is there to discharge him. The Departmental Committee on Vagrancy (England) state, that in good times from 20,000 to 30,- 000 of such men lose their jobs, and in times of depression, this number runs up to 80,000. Idleness demoralizes men and makes them more and more unfit. Any man who knows anything about wage earners, know there are men perfectly able to work yet who cannot keep their employment.

Here there is a personal cause. As far as the man himself is concerned we find three great causes militating against him. These are, intemperance, shiftlessness, and lack of thrift. Others may be easily added as thieving, unwillingness to work for his marketable value, incompatibility of temper with fellow workers. There are some men in the ranks of the unemployed simply because they will not work unless they get the highest price in the market for their labor, which is a moral deficiency of character. It is an overestimation of oneself. Many of these vices are acquired by heredity and environment. But many of them also are contracted through casual work, underemployment, and unemployment. Let a man be for a time unemployed, he becomes inefficient, and deteriorates in physique

— economically and morally. Thus in this relation, there is a double-action. Such a condition tells harder on the second generation. The vagrant class are supplied largely through such a condition. Vagrancy can be more directly traced to casual or unemployment, and both, than to other vices. Inefficiency is certainly, one strong cause for unemployment. When adverse industrial condition comes, — the first to feel it, is the inefficient. The primary cause for unemployment is an economic depression. The secondary cause is inefficiency, which in many cases can be traced to a period of idleness. Actually men have been known, through idleness, to have become unemployables. Thus personal character is a great asset to secure employment and keep employed.

Society — as a Cause

To what has been already said, there are other things, that must be urged on society. There should be an effort on the part of society to destroy ev^ery vestige of class distinction. It is character that should cause distinction and not a man's work. Society has been too ready to point, yea in derision, to the workman as a wage-earner. In looking up the history of labor we find that this distinction has been getting more and more pronounced. We find that it was a desire for a class exclusion that led to such a result as class distinction. The dividing of English society into a capitalistic, and a wageearning classes came from a desire to maintain social superiority. At first this distinction was not in existence, and the sooner it gets out of existence the better it will be for all. It is a matter of history, that as the master craftsman acquired wealth he, more and more, formed a class by himself. The chasm widened. The labor guilds became more monopolistic, avaricious, tyrannical. By 1536 in England, these guilds had become so tyrannical, that parliament had to interfere. Now the classhatred can be traced to these conditions hundreds of years back. As the world is becoming more and more Christianized, and so democratic, it is the bounden duty of Christianized society to do all in its power to remove this class distinction and hatred. This would materially aid in the solution of the problem of the unemployed. As it is, society is retarding the movement at solution.

Labor problems no doubt, have their roots, in three or four great social institutions. Society by not exercising its influence as it should over these, is a serious contributing cause to unemployment. The Wage System itself is one of these social institutions. Under this system men are not supposed to be in bondage, and they should not be in the other extreme — the Socialistic. True, by his hire, the workman takes upon himself the responsibility of certain conditions. He places himself on the market for hire, and is seeking the best advantage. Now I hold that Society should lend its moral support to this man, so that he will get, at least, a fair deal.

Another Social Institution is capitalization. Society has been at fault in permitting the highly capitalized form of modern industry, to go too far, and thus injure the workman. This is a delicate and an intricate question to handle, yet it should be controlled by the Christian principles of our modern times, so that no citizen unduly suffers. Under present conditions they do suffer. We are today working under what is known as the "factory system." While this system has many advantages, yet it has been allowed to go to a condition, that its disadvantages are multiplying, and for which we hold society responsible. We shall name few of these disadvantages, nay wrongs;— child labor, employment of women under certain conditions; industrial accidents ; factory regulations too onerous without sufficient protection to those employed; indifference to the primary interests of the workman. In our own days, the factory system has gone too far in centralization, which hinders industrial independence. All these things lead to the swelling of the numbers of the unemployed. Society has not made the effort, it should, to prevent existing conditions, thus its responsibility. Then again Society has been too ready to uphold every selfish motive of the employers of labor. Without mentioning anything else we may refer to the support society gives to the Sweating System. This is one of the worst agencies that lead to unemployment, and it materially swells the ranks of the unemployed. In the chapter on Cause, Remedies, etc., we will have to refer again to this system, as an industrial factor. A writer in the "Independent," lately, has expressed himself forcibly, on this point as to society. He says "the Issue of unemployment cannot longer be shirked, because it will become more and more the centre of justified social revolt. Socialists and anarchists will use It for ends of their own. Until Society deals seriously, and constructively, with the problem this agitation will be justified. We have thus far, fooled with these issues." (Those vast) "armies of skllless vagrants and unemployables are year by year, our social products."