The rates shown for both 1949 and 1954 are averages for those fiscal years. In all services the rate for fiscal year 1954 dropped to about one-half that experienced in 1949. It is clear that this problem of lowered reenlistment rates is one which is faced by all services, and in substantially the same degree. During the last half of fiscal 1954 the rates dropped sharply below the annual average. For the Army, the rate dropped to 18.6; the Navy, 13.1; the Air Force, 27.3; and the Marine Corps, 12.7 percent. Mr. HARDY. May I interrupt, Mr. Chairman? Mr. RIVERS. Yes. Mr. HARDY. For what period of time do these figures represent the reenlistment bonus that was approved? Secretary BURGESS. I don't believe that the effect of the reenlistment bonuses are in these figures at all. Mr. HARDY. The reenlistment bonus is not felt in any of these at all? Secretary BURGESS. Not in this chart. Mr. HARDY. The reason I raise the question, as I recall, General Shepherd wasn't too disturbed with the present trend in the Marine Corps. Secretary BURGESS. This is the fiscal 1954 and the effects of the reenlistment bonus are not shown on this chart. Mr. HARDY. This is fiscal 1954? Secretary BURGESS. That is right. Mr. RIVERS. You have not had an opportunity to evaluate the effect of the bonus? Secretary BURGESS. Not fully. We do have some figures to give you, though, for that part of fiscal year 1955 that we have been able to develop estimates on. Mr. RIVERS. You will submit that? Reenlistment rates for Regulars, by service, selected periods: Fiscal year 1950 to December 1954 [Reenlistments, as percentage of separatees eligible to reenlist] Mr. RIVERS. Go ahead, Mr. Burgess. Secretary BURGESS. This chart does not show the reenlistment experience beyond fiscal year 1954. Beyond preliminary studies, however, there has been a significant change only in the Army, where regulars constitute only a portion of the total strength, and this will probably be of particular interest to Mr. Hardy on these figures. The preliminary rates for the 6-month period July through Decem ber 1954, are: Army. Navy Air Force.. Marine Corps---. Percent 54.1 8.1 22.4 20.1 This next chart shows how reenlistments in the Army of today compare with 1949. (The chart follows:) PERSONNEL TURNOVER IN THE ARMY IS ACCENTUATED BY THE HIGH PROPORTION OF INDUCTEES COMPARISON OF REENLISTMENT RATES BY GRADE, 1949-50 VERSUS 1955 This chart shows a comparison of reenlistment rates by grade in the Navy and Air Force for the periods November 1949-June 1950, and July-September 1954. It reflects the continuing downward trend in reenlistments among our most experienced and skilled personnel. On the left are shown the reenlistment rates for 1945-50. The darker color on the right shows the comparable rate for the 1954 period. The decline in the reenlistment rates in the lower grades foreshadows the very serious problem of maintaining an adequate number of technicians in the higher grades. The fact that this trend has seriously affected grades E-5 and E-6, normally considered career grades, gives unusual significance to this trend. The problem is particularly critical in the Navy and Air Force. The lengthy and expensive training required to qualify the technicians needed in these services makes it essential that they retain more men on a career basis. It is evident that a continuation of these trends will reduce the level of skill and experience to a dangerous low. Experience in 1949 was not materially affected by inductees since the Army was then composed predominantly of regulars. However, regulars reenlisted in 1954 at about one-half the rate of 1949. Inductees enlisted at the low rate of 7.2 percent, which brought the overall Army reenlistment rate down to 11.6 percent. While a sizable part of the Army will continue to be manned with inductees, it is evident that the declining interest in a service career creates a major instability problem in the Army, a problem which is shared by the other services. This chart shows a comparison of reenlistment rates by grade in the Navy and the Air Force for the periods November 1949, June 1950, and July, September 1954. (The chart follows:) THE DECREASE IN REENLISTMENT RATES RESULTS IN A DANGEROUS LOWERING OF THE AVERAGE LEVEL OF EXPERIENCE Mr. BLANDFORD. May I interrupt for just a moment? I wonder if in the Army chart, instead of using percentages, you could give us the figures: For this reason. You had very heavy inductions in 1950 and 1951, and it is possible that your reenlistment rate today is a higher figure because it constitutes a larger portion of regulars and a lesser number of inductees, and obviously your regulars are going to reenlist at a higher rate than your inductees. I am just wondering if the actual numbers of people who reenlist in the Army would not be better at this point than percentages for those same comparable periods? Secretary BURGESS. Do you wish us to submit those for the record? Mr. BLANDFORD. If you don't have them here this morning. Mr. RIVERS. Mr. Blandford, explain how that will differ from the manner in which he is proceeding? Mr. BLANDFORD. I don't know, I am just guessing, that the reenlistment rate which is now 54 percent in the Army, which is higher than it was in previous years, may reflect the large number of inductees who were leaving the service in 1954, and in 1953, because their 2-year period was up. Now, when you get into the latter part of 1953, you had lower draft calls, and you got more regulars, as such, and invariably your history has shown that you get very few reenlistments from inductees. Colonel STEPHENS. That is right. Hr. BLANDFORD. That may account for the very low figure. Thus it is disproportionate. Colonel STEPHENS. That is regulars only. This shows the Mr. BLANDFORD. Then the 22 percent is only regulars. Colonel STEPHENS. Yes. Mr. BLANDFORD. I think that should be clarified. Mr. RIVERS. I wondered what you were driving at because I understood that was regulars to start with. Mr. BLANDFORD. Then the 54 percent, we can understand today, is the figure minus the inductees. Secretary BURGESS. That is right. Colonel STEPHENS. That is right. Mr. BLANDFORD. If your inductees were added into that figure, what would your figure be? Colonel STEPHENS. It would be something on the order of this [indicating the overall Army reenlistment rate of 11.6] or less, because the enlistment rate of inductees is even lower than the 7.2 now. Mr. RIVERS. Then that 54.1 is during that last half of 1954, calendar 1954 ? Secretary BURGESS. That is right. That is July to December 1954. Mr. RIVERS. Which would reflect Mr. Hardy's point on that bonus? Secretary BURGESS. It would have some effect, but I believe the bonus is an October figure; is that right, Admiral? Admiral GRENFELL. The effect on the bonus began to be felt in October. Mr. RIVERS. Some part of it would be reflected. Secretary BURGESS. That is right. That is why I suggested at some point Mr. HARDY. You can't tell what effect the bonus had when you have the entire 6 months lumped in together. We wouldn't have anything to tell us whether or not the trend might have stayed down at that low figure up until the period when the bonus began. Mr. RIVERS. But you will have some figures for the committee, Mr. Burgess? Secretary BURGESS. That is right. We have the Navy's month by month. If you would be interested in our giving that at this juncture. Mr. BLANDFORD. Numbers at this point I think would be much more acceptable than percentages. Because then you can see the effect of the reenlistment bonus bill and then you would have to discard January because you have thousands of people jumping to beat the gun on the G.I. benefits. So that is a disproportionate figure. Mr. RIVERS. We don't want to get them any more confused than we are. Secretary BURGESS. We will give you the percentages and the numbers by month, by service. Mr. RIVERS. Submit them for the record. Is that satisfactory? Mr. BLANDFORD. Yes, as long as we have the information. (The figures follow :) TABLE 1.-Monthly reenlistment trends, regulars and inductees, 1954 — 1 Data for August-December 1954 are preliminary. TABLE 2.-Monthly reenlistment trends for regulars, by category, 1954 — 1 Data for August-December 1954 are preliminary. TABLE 3.-Monthly reenlistment trends, regulars and inductees, 1954 1—Army |