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1. There are still 17 major areas in the continental United States in which unemployment is above 6 percent.
2. There are still more than 650,000 people, one-fifth of the unemployed who have been out of work for 15 weeks or longer.
3. There are still 1.75 million employed who want to work full time but have only part-time work.
4. One out of every eight teenagers who are looking for work-half of them only have part-time work-cannot find it.
5. Negroes still constitute one-fifth of the unemployed and double their share of the labor force. There are 200,000 unemployed Negro teenagers highly concentrated in the poor neighborhoods.
Senator ('LARK. I take it that is 200,000 school dropouts because they could not be in the labor force if they were still in school.
M: yor Walsh. That is right.
6. Over 3 million household heads are working full time but still living in poverty.
Senator Clark. Are you using the criteria for poverty that was established by OEO of $3,300 for a family of four?
Mavor Walsh. That is right.
While these statistics are very important to us, Mr. Chairman, and suggest the gravity of the problem, no better definition of the problem can be found than that presented by you in introducing this bill to the Senate.
I was particularly impressed by your statements indicating that while the unemployed rate has been going down since 1961, the total number of unemployed persons in the United States has gone up.
In fact, it continues to rise at the rate of about 100,000 individuals
Senator CLARK. The reason for this which might otherwise be puzzling is that the total population of the country is growing so rapidly and while the unemployment rate goes down, the number of unemploved goes up?
Mavor WALSH. That is correct.
When this fact is added to the number of the hidden unemployed and underemployed, it suggests an overwhelming case for legislation of this kind.
In looking for effective ways to rapidly expand employment in areas that would be suitable to the needs that exist, the conference of mayors naturally began to examine the possibilities of accelerated public works programs of the types used in the recession of 1959 and 1960.
In consultation with officials of the Department of Commerce, the Economic Development Administration, and the Public Work Committees of the Congress, it became evident that the technology involved in public works construction has vastly changed the capacity of this sector of the public economy to effectively pull into employment the hard-core unemployed workers and chronic youth unemployed groups that are so critical to our current situation,
It has been estimated that it takes about $10,000 in capital under a public works program to produce one job.
The conclusion, therefore, is that while the conference of mayors strongly supports the public works program we do so for their overall benefit to the community rather than as programs of high employment impact.
Senator Clark. Did you have some experience in Syracuse, in this area you are speaking about?
How about your public works program there? Do these figures tie in pretty well with your own experience?
Mayor Walsh. That is very true, with the sophistication that is developing in the public works area there is not the need for manpower and you just don't get it.
Senator CLARK. This would not apply in the conservation and recreational fields? In Philadelphia, for instance, we have a large park, Fairmount, where there is an almost indefinite amount of unskilled work that can be done in cleaning up storm damage, opening trails, building bridle paths, and creating recreational facilities.
Do you have anything like that in Syracuse? Mayor WALSH. We have a number of work programs under the Urban Beautification Act. As an administrator of a city of our size, I am convinced you never have enough workers to do the jobs you need.
As an example, there is an editorial in the paper this morning that (riticized us because our streets are not clean. It is a little hard to clean them because the snow just left a few days ago and we had the accumulation of several months of winter there, but this is an example.
It would not be the meaningful job experience that some people talk about. We like to term it a worth while work experience and we think it would be that.
Senator CLARK. I agree. I don't think there is a city in the country that is as clean as it could be. Some cities do not have the money to hire the workers and some cannot find the workers.
Mayor Walsh. This is a major problem. We can't find the workers we need and, of course, we can't pay them high enough to attract them.
Senator CLARK. Do you pay a minimum wage?
Mayor Walsh. Yes. We are trying to set up 4,000 jobs this summer, Senator, a summer jobs program. This will be in both the public sector and the private sector and we need tremendous help in order to do it.
We have letters that went out this week to all of the business organizations, even the churches in the community, and we are setting a type of quota for these organizations.
We are asking them to provide make-work jobs and we don't hare the results yet. We hope we can come up with 4,000 jobs, but we may fall short of that goal, but this type of legislation would help us tremendously.
Senator CLARK. You have had your own problems up there, I know. I wonder if you have any personal view as to why the threat of disorder and violence seem to be so much greater in the summer than it is in the winter.
Mayor WALSH. I think it probably has to do with the frustrations that occur amongst the disadvantaged in the corridors of the cities and probably we get a little more irritated about things on hot nights than we do on cool nights.
Senator CLARK. It is just as unsophisticated as that.
Although we have been greatly impressed by the studies of the Xational Commission on Technology, Automation, and Economie Progress, we know from our experience as mayors that the potential
source of new jobs through public service employment has been increasing
Moreover, we have been acutely conscious that local government payrolls and the payrolls of our private health and welfare agencies have been steadily expanded.
There is little doubt that the greater share of the tax increments that come into the cities' treasuries from the growth of our economy in the next decade will be allocated to support on a permanent basis these expended public services.
The Commission on Automation estimated that there was a current unmet need for 5.3 million public service workers if the funds could be made available. Our recent experience with the new careers program,
with the programs for training welfare recipients, and with some of the education, health, and recreation aids programs being developed by our community action agencies has persuaded us that public service employment subsidies could do the three things we need most, which are:
1. Create jobs immediately on a large scale.
3. Provide attachment to a permanent job with a decent future. Finally, in concluding our analysis, I perhaps need not reiterate to the committee the financial inequities and difficulties now faced by our cities.
Let me cite for you one figure developed by the Department which summarizes this situation,
In 1930 the cities kept 50 cents of every tax dollar; the States took 17 cents and the Federal Government 33 cents.
Today the cities and counties together keep 15 cents, the States take 18 cents and the Federal Government takes 67 cents.
While we have been encouraged by the expansion of Federal aid to cities in the past decade, we would be remiss if we did not point out that all of the Federal intergovernmental transfers combined have not succeeded in reallocating to the cities anything near the resources that would be needed to create a livable environment with decent jobs and incomes.
That is the Federal impact.
Locally, the cities have reached their bonded indebtedness. The State limitation on other potential revenue sources is severe. Where do we turn, gentlemen, to take care of our cities?
Senator CLARK. Do you in Syracuse have the problem of a significant influx of untrained and unskilled people from other areas who are looking for jobs?
Mayor Walsh. Yes, sir; we do. I was formerly welfare commissioner up there and I am acutely aware this happens. In every meeting we have we recognize the fact that there are a number of people coming into the community who are not trained.
Just a week ago in attempting to build better responsiveness to the need of our citizens up there, I have been touring some of the areas where we have programs going, meeting with leaders of the minority groups at regular meetings at dinners, and so on.
I visited the Neighborhood Job Corps. I was amazed to learn that in that group of about 90, we had seven that could neither read nor write.
Senator CLARK. Are these mostly Negroes who have come up from the South?
Mayor Walsh. In this case, the seven were all Negroes, but we do have in the Neighborhood Job Corps program whites who have no skills.
Senator CLARK. Where do they come from?
Mayor Walsh. I assume they come from the South or they have moved into our locality recently.
Senator CLARK. Have you had a flight from the city of white collar and middle-class people to the suburbs ?
Mayor Walsh. I assume they come from the South or they have major city in the country.
The white group is moving out to the suburbs and their places are being taken by members of low-income groups, mostly Negroes.
The difficult part for a city administration is that the people who are leaving the city did not have the same demand for city services as the people coming in.
By this I mean, Senator, that there is a greater demand for health services, welfare services, police, fire, all of the services that we provide must be provided to a far greater degree now than was necessary when we had a higher middle-class income group living in our community
Senator ('LARK. At the same time your tax base is decreasing?
Mayor Walsh. It is. All of the cities are pretty much in the same financial bind.
Fortunately in New York State, although we have an aid program which is never enough, we have a State aid program which does provide some assistance for us.
Locally in our budget of $56 million, about 27 percent of it is State aid. I might add, sir, that this is the operating budget and includes the school budget and there is not a penny of Federal money in the operating budget. Senator CLARK. Yet. Mayor Walsh. Very good, sir. I will continue with the statement, Senator.
I should say that we have been greatly encouraged by the administration's endorsement of larger training allowances and allowances of supportive services under the regular OJT program.
We strongly endorse the administration's request for additional funds to expand the involvement of private enterprise in the job derelopment process. We commend Mr. Henry Ford and the National Alliance of Businessmen for their efforts to promote and expand in private enterprise Federal-city job development efforts.
Parenthetically, we are hopeful that this program can be expanded beyond the 50 largest cities into every major industrial center in this Nation.
While these programs are significant, gentlemen, the simple fact is that they cannot meet the need previously outlined.
Senator ("link. What has been your experience with on-the-job training?
Have you found good cooperation from your industries in the programs that are going on and have you had some success?
Mayor Walsh. We have excellent cooperation with the industries. One of our major problems has been recruiting people to take the on-the-job training:
I think you are familiar, sir, with the difficulties we have had with our poverty program in Syracuse. We had relied heavily on the recruitment process of the poverty program and it just did not come through.
In conclusion, we can think of no more important first step in closing the job gap and dealing with the urban crisis than a Federal commitment to finance the training and initial employment of the hard-core unemployed as proposed in this bill.
It would be our hope that this step will result in the development of a long-range program through a partnership of local, State, and Federal Government, together with the private, nonprofit public service agencies that will result in permanent dignified employment for the young people and the hard-core unemployed.
This Federal investment which will be shared in by local government as it creates channels for workers from the emergency programs into its regular public service employment will contribute to our steady economic growth, to the stability of our cities, and to the well-being of the Nation.
I would like to thank you, Mr. Chairman, for this opportunity to present our position to you today, and I might add as a personal note no more fitting memorial could be created for Dr. Martin Luther King than to have this bill passed which I appear here today to support.
Senator Clark. Thank you very much, Mr. Walsh.
Mr. PATRICELLI. We do expect Senator Javits shortly, but in the meantime could you comment on the summertime job situation in Syracuse and also the action of the Senate-House Conference Committee in turning down $75 million of supplemental funds for the summer job program! Mayor Walsh. We are concerned about the summer jobs situation.
One of the causes for the disturbances we are having in our cities is because some of these youngsters just do not have anything to do.
I have just spent 2 days in Albany with the mayors of larger cities in New York State and the law officers. There were mayors from both parties there and we developed a strong statement in support of the programs that the Governor had developed and had been cut out by the legislature.
We are hopeful that we will be able to get these through, programs similar to what the Senator is doing at the Federal level.
We are very concerned. We need jobs. We need to keep people busy. I used to hear a statement in school from the good nuns where I went that idle hands are the devil's workshop and I know of no better way to solve the problem than this way.
If we can keep them active, give them an active work program, tire them out, we can do something.
I am alarmed by the cut in funds. We cannot without assistance from this level and every government level do the job.
Mr. PATRICELLI. You are a professional in the field of social welfare. Would you care to comment on the action taken by the Congress last year in establishing a compulsory work program for certain welfare recipients?