Complaint Investigations Foreign Labor Service representatives conducted 5,291 investigations of complaints involving various provisions of the Migrant Labor Agreement, and the Standard Work Contract under this agreement. Violations were found in 2,587, or 49 percent, of the cases investigated. Collections as a result of investigations involving wage violations were $86,578. Periodic inspections of employers' payroll records, as opposed to investigations of specific complaints, resulted in the payment of an additional $125,852 to workers. Altogether, a total of $212,430 was paid in wage adjustments by employers to Mexican workers, as a result of wage investigation and payroll inspections. Sixty-eight employers were declared ineligible to use Mexican workers because of violation of the agreement and contract. Litigation and Settlement of Claims As the guarantor of a Mexican worker's contract wages, the United States was obliged to pay $3,920 this past year. A collection of $7,187 from employers was applied to the outstanding balance under the guarantee; $232 was written off as bad debts; 30 cases involving $20,890 are pending litigation. At the close of the fiscal year, three cases involving a total of $1,660 were awaiting action. Through the U.S. Department of Agriculture's State offices of stabilization and conservation, an additional $735 was collected as setoff amounts, due from employers under the Mexican labor program. Veterans Employment Service Nearly one-half of all men in the civilian labor force in fiscal year 1960 were veterans. Existing Federal law provides for an effective job counseling and employment service for these men, most of whom are in the prime age groups. In each State, the veterans employment representative (a Federal employee) is attached to the staff of the public employment service in order to execute the policies determined by the Secretary of Labor and the Chief of the Veterans Employment Service under Federal law. Employment Service Activities For the second consecutive year, the number of work applications filed by veterans dropped sharply, decreasing nearly 180,000 (10 percent) to a 7-year low of approximately 1.6 million. This reduction was in sharp contrast to a rise of 6 percent in the number of applications filed by male nonveterans, reflecting the relatively favorable job situations for veterans. Nonagricultural placement of veterans made by local employment offices showed a small decrease, moving down about 4 percent to 1.2 million. The effectiveness of special policies for veterans is reflected in the fact that veterans received 36.2 percent of all male placements in the employment service in fiscal year 1960 while they represented 27.6 percent of the available applicants. Selected employment service activities for veterans, fiscal years 1959 and 1960 Work applications for disabled veterans showed a smaller increase than those of all veterans, moving down only 2.7 percent from the previous year. The number of placements increased 3 percent over the prior year. During fiscal year 1960, disabled veterans received 49.7 percent of all male handicapped placements while they represented 38 percent of the available applicants. Selected employment service activities for disabled veterans, fiscal years 1959 and 1960 Program Development and Evaluation Considerable emphasis was directed during the fiscal year toward improving services provided veterans at the local office level. Evaluations were conducted in approximately 1,200 local employment offices by State veterans employment representatives (VER's) to determine the effectiveness of the services being rendered. Several States held training conferences for their personnel on services to veterans. The national office of the Veterans Employment Service has continued to work on program planning procedures. For the past 3 years, State VER's have been preparing written plans of action. Last year, for the first time, each VER was required to submit his plan to the national office for review. The reports show that through program planning the VER has been able to identify his problem areas more readily and concentrate his efforts on matters that need the most attention. A representative of the national office visited every State except Alaska last year. Findings on these visits, together with information obtained from the monthly activity reports submitted by each representative, provide full informaon the tion program. Staff Training The highlight of the year in the training area was the 20th National Conference of State Veterans Employment Representatives held in Denver, Colo. Conference-type work shops provided a forum for discussion of all major program activities. Also, the conference included a panel on employment assistance to the older veteran, and ways to cope with this problem were discussed. A number of prominent speakers, both within and out of government, addressed the conference. In January, three VER's and three new assistants were given a 1-week induction training course at the Bureau. Prior to this, each new VER was visited and given an operational program to follow until formal training. During regular field visits, national office representatives gave the new men on-the-job training. One member of the national office staff attended a 2-week management course by the Brookings Institution for employment security personnel. Liaison and Public Relations Activities The VES continued its work with the Interagency Committee on Vocational Rehabilitation. Guidelines were sent to all State agencies urging them to establish, on the local level, committees for vocational rehabilitation. A study of veterans' preference provisions in State government employment was made and published by the Bureau in cooperation with the Veterans Service staff of the Civil Service Commission. VES representatives attended all of the major national veterans' organizations meetings, often participating in special conferences and supplying information on employment services for veterans. State VER's performed the same activities with State veterans' organizations. A special script and slides were developed on the Department of Labor's manpower story for presentation to veterans, veterans' organizations, and other appropriate groups. In cooperation with the President's Committee on Employment of the Physically Handicapped, car cards and pocket calendars were distributed to promote the placement of disabled veterans. State VER's participated in numerous promotional programs such as older worker conferences, National Employ the Physically Handicapped Week, and award programs. All of these proved beneficial in improving job opportunities for veterans and in encouraging the use of the State employment service offices. Unemployment Insurance The Federal-State unemployment insurance system provides insured workers with partial compensation for wages lost during periods of involuntary unemployment. It also acts as an important economic stabilizer in the maintenance of income and purchasing power. About 44.8 million workers in commerce, industry, and government, including the Armed Forces, are covered under the Federal and State laws.1 In fiscal year 1960, 6.4 million insured workers drew one or more unemployment insurance benefit checks. They received $2.5 billion for 80.8 million weeks of unemployment. Fiscal year 1960 challenged the unemployment insurance program in several ways. Though recovery from the 1958 recession continued and unemployment was not as acute a problem as it had been in the previous 2 years, it remained above prerecession levels. The number of claimants who exhausted their benefit rights was also high as compared with prerecession levels. Exhaustions during fiscal 1960 were 1.56 million, which was more than 40 percent higher than the 1.09 million exhaustions during fiscal 1957, the last prerecession year. This increase is more significant because duration of benefits has recently risen through legislation and more weeks of compensation were generally available to unemployed workers during the last fiscal year than before. Two events caused temporary increases in insured unemployment. First, the secondary effects of the steel strike which began on July 15 increased the number of claims from steel-using industries during the first half of the fiscal year, particularly in October and November. Secondly, severe March snowstorms in many parts of the Nation caused interruptions of industrial and construction activities and forced claims upward in the second half of the fiscal year. A persistent problem was the continuation, even during periods of relatively widespread prosperity, of local pockets of high unemployment. Since they make for higher levels of long-term unemployment, these areas have aroused continued concern over the adequacy of the duration provisions of some State laws. Technological changes contributing to the geographical spottiness in the economy also made special demands on the program. Program Research and Planning To meet the demands of a dynamic economy, emphasis was placed on the need for strengthening unemployment insurance and for flexibility in the program. The Bureau cooperated with the States in research planning, and representative States were encouraged to undertake study projects. One of these projects dealt with the 1.9 million agricultural workers who have been excluded from unemployment insurance protection largely because the feasibility of covering them could not be determined from available data. To evaluate the possibility of unemployment insurance for these workers, the Bureau prepared a detailed methodology and work materials for a series of studies. The studies are designed to develop information on the employment, unemployment, and earnings patterns of farm workers, and the employment and payroll patterns of farm employers. Involving field interviews of a representative 'In addition, about 0.9 million railroad workers are covered under an unemployment insurance program administered by the Railroad Retirement Board. sample of farm employers and their workers, these studies are being made, with the technical assistance of the Bureau, by agencies in four representative States. In addition to their unemployment insurance purpose, the study results will provide valuable information, not presently available from other sources, on employment and unemployment among farm workers. Another subject of research planning is evaluation of tests of "insured status"-tests of entitlement to benefits of claimants who have worked in covered employment. Though it is generally agreed that benefits should be payable only to claimants who are bona fide members of the active labor force, there is less accord on the appropriateness of existing or of proposed tests. One difficulty in approaching this problem is that the States have little knowledge of the numbers or characteristics of the workers who have been included or excluded from benefits as a result of amendments to the eligibility provisions of the laws. Knowledge of the work experience of individuals over a period of several years is needed to enable the States to establish their tests of insured status on an informed basis. In an attempt to aid State agencies to collect the needed data, a method of compiling and analyzing State quarterly wage record data over a 3-year period has been developed. A study guide describing this method has been provided to State agencies. Basic Program Improvements Although most of the calendar 1959 State legislative changes in coverage and benefit provisions were enacted in fiscal 1959, many went into effect during fiscal 1960. These include increases in the maximum weekly benefit in 9 States and in duration in 10 States, effective on or after July 1, 1959. Five States provided for extending the duration of benefits whenever unemployment in the State reached a specified level. Provisions for automatic adjustment of the maximum weekly benefit amount in accord with changes in average wages went into effect in two more States, making a total of six States with these provisions. However, in one of these six States the provision will not be effective until fiscal 1961. Two States extended coverage to include firms employing one worker and one State extended coverage to firms employing three workers, effective January 1, 1960. Previously excluded types of employment were added to coverage in three additional States, effective July 1959. It is estimated that 0.2 million workers were brought under protection as a result of these changes in coverage. Legislation enacted by the States during fiscal 1960 was limited by the fact that many State legislatures do not meet in even-numbered years. However, several important improvements were made. Between July 1, 1959, and June 30, 1960, 10 States increased the maximum weekly benefit amount by $3 to $5. Maximum duration increases in the basic program were enacted in four States. One State shifted from a uniform duration of 20 weeks for all eligible claimants to a variable duration of one-fourth of base-period earnings, with a minimum of 9 weeks and a maximum of 26 weeks. Three other States with variable duration |