2 The highest weekly percentage was 9/3% in California the week of December 22. Recent weeks have shown no particular trend. In Arizona, the percentage of energy-related claims has shown a slight increase to 6. 2%. In California, the proportion has remained at 5.5-5.7%; in Hawaii, it has dropped from 7. 4% to 3. 4%, then climbed to 4.1%; in Nevada, it has remained steady at 2.9%-3.1%. There have been only a few large permanent layoffs due to the energy crisis. In the main, these have been in airlines, in mobile home manufacturing and in Nevada tourist resorts. In auto manufacturing there have been some short-term layoffs due to a change in production from larger to smaller cars. Most of the energy layoffs have been scattered, small layoffs in relatively small establishments. Automobilie service stations have been particularly hard hit. 40-499 O-75-5 3 Turning to These estimates compare with estimates of total unemployment as follows for December 1972 and 1973, the latest month available, except A final caveat should be made about the energy situation. At this time, it is really too early to tell what the future impact will be. Most employers, except those few where there has been an immediate impact such as the airlines, mobile home manufacturing, and automobile service stations, are probably taking a wait-and-see attitude. They have not precipitantly laid people, preferring to keep their work forces intact as long as possible, In some cases they have not hired new people. In Southern Arizona, for example, reports from the tourist industry indicate about 1, 400 seasonal jobs have not been filled this year because of 4 uncer inities due to the energy crisis. But, if the energy crisis worsens, particularly if there is stringent gasoline rationing for private automobiles, one can expect a much greater impact. The tourist industry in many areas is heavily dependent upon private automobile traffic, and more importantly, private automobiles ȧre the major source of transportation used by workers commuting to their jobs. I will be pleased to answer any questions you may have. This letter is in response to your request at the subcommittee hearing in Los Angeles February 14 that I submit for the record information concerning how the Federal Government intends to implement the recently enacted Comprehensive Employment and Training Act of 1973 -- CETA. Enclosed is a statement that describes in some detail our philosophy of the Federal role. We would expect that the grant applications would describe how prime sponsors propose to meet the requirements of Section 603 or, where appropriate, provide assurances that the provisions of Section 603 will be met. Once the grant was made, spot checks with on-site inspections will be made to ensure that the prime sponsor was in fact complying with the provisions of Section 603. If deficiencies were found, the Department would take action to ensure that they were corrected. I hope that this information is of help to you. If there is any further way I can be of assistance, please do not hesitate to contact me. Sincerely, Il Man & Hult you William J. Haltigan Acting Regional Director for Manpower Enclosure The Federal Role in CETA The passage of CETA has brought unquestionable change to the role of the Federal Government in the administration of manpower programs. Having said this, however, it is important to define in some detail the Federal role, which will be substantial. As you know, the Manpower Administration is currently in the throes of developing regulations, guidelines, handbooks, and other directives and technical assistance material for CETA. The discussion that follows is mainly a discussion of the policies fundamental to the development of these instructions, as they relate to the Federal role. Key to understanding the Federal role in CETA is the acceptance of a major realignment of the present system - the development of a new intergovernmental partnership -- including for the first time more direct involvement of the chief elected officials or chief executive officers of State and local governments - in comprehensive manpower policy development, program planning and design, delivering services, and evaluating the results. In this new framework for intergovernmental |