Average weekly insured unemployment level for UCFE and UCX programs

Mr. THOMAS. You are seeking as a matter of fact the total of $139.5 million.

As a matter of fact, you were given what? Was that figure $125 million? You had a budget estimate of $135 million, is that correct? Mr. LEVINE. That is right, sir.

Mr. THOMAS. And, it was reduced to $125 million, a reduction of $10 million. Now, you are seeking only $8 million and $1 million of that is to go into your "pipeline"?

Mr. LEVINE. Yes, sir.

Mr. THOMAS. In other words, as best you can foretell at this time. you will actually need $7 million, but you want $1 million to go into your pipeline for reserve?

Mr. LEVINE. That is right, sir.

AVERAGE VETERAN'S PAYMENT

Mr. THOMAS. What would you say is the average veteran's payment per month?

Mr. LEVINE. The average veteran payment ran about $30.56 a week. Mr. THOMAS. Per week?

Mr. LEVINE. Yes, sir; the Federal employees payment was $33.12. Mr. THOMAS. What does that figure? One-third or one-half of the compensation?

Mr. LEVINE. The objective, typically, under the State law is to approximate about 50 percent of the weekly wage that was received when the person was fully employed.

Mr. THOMAS. That is the objective?

Mr. LEVINE. Yes, sir; unfortunately some of the State laws have not achieved that objective.

Mr. THOMAS. When was this estimate prepared? Was that 60 or 90 days ago?

Mr. LEVINE. Our statement that you have before you was prepared in May.

FIRMNESS OF REQUEST

Mr. THOMAS. Is this a firm figure?

How many people do you think you have now in numbers on the basis of $120 or $125 a month?

Mr. LEVINE. We think that the experience that we have been having in April and the claims experience that we receive information for each week--and we have that through May-indicates this isMr. THOMAS. You say this is brought about as the result of three factors: One, a big snowstorm which we had in February and March; two, an increase in compensation in the State of California, and in another State, and a further liberalization of State laws generally? Mr. LEVINE. Yes, sir; weekly benefit laws.

Mr. THOMAS. You state as follows:

We had estimated that such payments would average $31 per week. However, they had reached $33.12 in March and they will probably average $32.50 for the year.

Mr. LEVINE. If I may say so, Mr. Chairman, the first 6 months of this fiscal year our experience ran very much like our estimates and were generally pretty favorable. We expended about $61 million in that 6-month period. But, then, the next 3 months-January through March-were most unfavorable. We had a combination of economic conditions not as favorable as had been anticipated.

Mr. THOMAS. Mr. Levine, the snowstorms are over and the stock market is going up and the sun is shining. Unemployment is going down and employment is going up. Of course, whatever money you have to have, we want to give it to you, but be turning this over in your mind, and see if you cannot pare your estimate by about 50 per

cent.

Mr. Kirwan, do you have any questions?

TREND IN UNEMPLOYMENT

Mr. KIRWAN. Mr. Levine, perhaps, what I am going to ask you you may not know too much about. However, you are in the Department of Labor where such information is available.

Last week we operated in Youngstown, Ohio, at only 22 percent of capacity. There is a labor force of 66,000 in the Youngstown district. That means that there was considerable unemployment.

Employment today throughout the Nation, judging from reading the Wall Street Journal, is down considerably. Many industries appear to be slowing down. Carloadings are a way off, and so forth. What effect is this going to have in the next 2 or 3 months?

Mr. LEVINE. This is precisely why we want to be reasonably certain about this kind of request. Obviously, people who are eligible to receive benefits under this legislation must compete for jobs in the kind of job market that exists for everybody, and a good deal of the kind of situations which you have been describing, Mr. Kirwan, occur on a spotty basis in certain localities, largely in the hard-goods industries; these are the transportation-equipment industry, the steel, the metal-fabricating industry, and the manufacture of farm implements. Mr. THOMAS. We have a lot of depressed areas in the country.

Mr. LEVINE. Yes; in a number of localities. We in this instance feel that the request whichis exclusively for the payment of benefits-none of this money can be used for salaries, expenses, or for administrative purposes it is a Federal obligation that the States would be expending as agents for the Federal Government and any amount that is not expended is in the control of the Federal Government to be used for this purpose at a later time, if necessary.

Mr. THOMAS. Is this expended on a matching basis of 50-50 between the States?

Mr. LEVINE. No, sir; this is entirely a Federal obligation and these are Federal benefits as a matter of right and not based on the basis of need. They have developed their right by reason of their prior employment or service.

Mr. THOMAS. This applies purely to veterans and Federal employees and has nothing to do with unemployment compensation generally? Mr. LEVINE. That is right, sir.

Mr. KIRWAN. I understand that in the Youngstown district Sharon is down, Lowellville has been down and not a thing is turning in the town. Youngstown Sheet & Tube is down and laid everyone off last week. They see no relief before late summer or fall. Of course, a you know, as steel goes, so goes the Nation. That is the trouble. Mr. THOMAS. Off the record.

(Discussion off the record.)

Mr. Jensen, do you have any questions?

BASIS OF UNEMPLOYMENT COMPENSATION PROGRAM

Mr. JENSON. A former Congressman told me several years ago that he needed a chauffeur. So, he called the employment agency and asked them if they had a man whom they could send over to him. They did and he hired him.

This chauffeur has been with him a month or two when he said, "I would like to take you down to Virginia and show you my farm." The former Congressman said, "Do you have a farm?" The chauffeur said, "Oh yes."

So, they took a nice ride down into Virginia and the chauffeur showed him his two fine farms.

The former Member said, "How did you get these?" The chauffeur said, "I bought them; I earned them." The Member said, "Are they paid for?" The chauffeur said, "Yes."

The former Member said, "I understood you were on the unemployment compensation rolls." The chauffeur said, "Yes; sure." He further said, "When I leave here, I will go back on them again."

That former Congressman said, "What kind of business is this? Is that possible?" The chauffeur replied "That is right."

Do you have such situations as that coming up or arising? Do you know about them?

Mr. LEVINE. Well, sir

Mr. KIRWAN. Off the record.

(Discussion off the record.)

Mr. JENSEN. What is the story?

Mr. LEVINE. I would like to tell you that, Mr. Jensen.