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Social Seeurity Bulletin 





Volume z | 


APRIL 1941 


Number 4 





—_—_— 


Social Security in Review 


FURTHER EXPANSION of the defense program was 
reflected in operations under the employment 
security program during February. Instead of 
the increases which usually occur in February, 
in both the number of continued claims for 
benefits and the amount of payments, decreases 
from January were reported. Even after allow- 
ance for the shorter number of working days in 
February, decreases were appreciable, particu- 
larly for claims received. The number of place- 
ments by public employment offices declined 
slightly during the month, although the daily 
rate of placements was higher than in January, 
and the total was 70 percent more than that for 
February 1940. The number of applications for 
employment received during the month was 
25 percent less than the total for January. The 
size of the active file of registrants remained 
almost unchanged at the end of the month, 
however, at approximately 5.1 million. 


A NATION-WIDE voluntary registration of workers 
who might be available for defense jobs was in- 
augurated through State employment security 
agencies on March 15. The registration is being 
undertaken at the request of the Office of Produc- 
tion Management in order to prepare for the 
greatly increased demand for defense workers 
anticipated within the next few months, as well 
as to meet growing shortages of skilled labor in 
certain occupations in the aircraft, shipbuilding, 
and machine-shops and machine-tool industries. 
All unemployed workers who may be available for 
work or training in defense jobs, as well as all 
persons now employed who have urgently needed 
skills which are not being used in their present 
jobs, are being urged to register at once at the 
nearest public employment office. It was empha- 
sized that workers are not being asked to leave 
their present jobs but merely to register their 
qualifications so that they may be called upon 
if they are needed in an important industry. 


LABOR DEMANDS of the defense program, even at 
the present level of expansion, have already de- 
pleted the supply of workers in certain occupa- 
tions to such an extent that recruiting of workers 
in these fields is becoming increasingly difficult. 
As shortages develop, employers are tending to 
relax certain types of hiring specifications, such 
as maximum age limitations and qualifications 
pertaining to education, training, and experience. 
Reports from State and local employment offices 
indicate, however, that restrictions concerning 
citizenship are becoming increasingly severe and 
extensive. A recent analysis of such reports 
made by the Bureau of Employment Security re- 
veals that prevailing practices of employers in 
this respect are much more restrictive than the 
law requires, and the Bureau has called attention 
to the fact that “contrary to what appears to be 
a widespread impression, aliens are not barred by 
law from private employment on defense con- 
tracts, except that they may not have access to 
plans or specifications or work under construction 
in the manufacture of aircraft or parts or in man- 
ufacture under ‘secret, confidential or restricted 
Government contracts.’ ”’ 


REVISED MINIMUM standards for administration of 
partial unemployment benefits have been adopted 
by the Social Security Board, and State employ- 
ment security agencies have been notified that the 
new standards will become effective June 1, 1941. 
Provision is made under the new standards for 
maintenance of pay-roll records in such form as 
to permit determination of employment status and 
amount of earnings; assignment to employers of 
responsibility for assisting employees whose work- 
ing hours have been reduced to file claims for par- 
tial benefits, at least for the first week of partial 
unemployment during a benefit year; and assump- 
tion by the State agency of responsibility for dis- 
tinguishing between partial unemployment and 
total unemployment accompanied by odd-job 


] 








earnings, for acquainting workers with their rights 
to partial unemployment benefits, and, with re- 
spect to each claim for partial benefits, for veri- 
fying through the employer the amount of wages 
earned in each week of short-time work and for 
determining whether the claimant’s wage loss was 
caused by lack of work or his own unavailability 
for employment. 


Mississippi's new plan for aid to dependent chil- 
dren was approved by the Social Security Board on 
February 28, and an initial grant of Federal funds 
for payments under the plan for the first quarter 
of the calendar year 1941 was certified on March 
11. Preliminary estimates submitted by the State 
indicate that aid will be extended under the plan to 
about 1,200 dependent children at the outset. 
Mississippi already has approved plans for old-age 
assistance and aid to the blind in operation, and 
with the inauguration of payments under its new 
plan it becomes the forty-first State with approved 
plans in operation for all three of the special types 
of public assistance for which provision is made 
in the Social Security Act. The new plan is to be 
administered by the Child Welfare Division of the 
State Department of Public Welfare through local 
offices in each county. An approved plan for aid 
to dependent children, administered by the State 
Emergency Relief Administration, was in opera- 
tion in Mississippi from February 1 to April 1, 
1936. The plan lapsed, however, when the legal 
authority of the State Emergency Relief Adminis- 
tration expired. Some payments were made sub- 
sequently under local plans. 


PUBLIC ASSISTANCE payments and earnings under 
Federal work programs for February amounted to 
only $215.4 million, compared with $248.6 million 
for February 1940. A comparable decrease was 
evident also in the estimated total number of 
different households and individuals receiving 
public assistance or Federal work-program earn- 
ings, which declined from 6.2 million households, 
comprising 18 million persons, for February 1940 
to 5.5 million households, comprising 15.1 million 
individuals, for February 1941. 


PRovIsIoN For “‘a fourth category of general relief 
. . . under which Federal funds would be made 
available to the States by the Social Security Board 
on the same basis as the three categories the Board 


” 


is now administering” was recommended by Pay] 
V. McNutt, Administrator of the Federal Security 
Agency, in testimony on March 25 before the Com. 
mittee of the House of Representatives to Investi- 
gate the Interstate Migration of Destitute Citi. 
zens. Mr. McNutt expressed his conviction “that 
there are many needy families in the United States 
today who are receiving such inadequate relief 
and medical care that their health and welfare are 
seriously affected. In thousands of these families 
there is no employable person, and therefore the 
possibility of securing an income through work in 
private employment or on public work projects is 
out of the question. Agricultural migrants who 
move from place to place and are employed only 
irregularly have created a serious problem in some 
States for a number of years. Today there is an 
added problem because individuals and families 
are leaving their homes to go to new communities, 
either in search of work in a defense industry or to 
be near a man in military service. Many such 
families do not find employment and in a very 
short time become destitute in the new community 
and can receive no relief or medical care because of 
the rigid settlement laws in most States. Thus, 
the need for relief of transients is likely to be in- 
creased rather than diminished by the defense pro- 
gram. The existence of this large number of fami- 
lies with insufficient resources to meet even their 
subsistence needs, I believe, is a very serious ob- 
stacle to the development of civilian morale essen- 
tial to a defense program.” 


DESIGNATION oF a Director of Defense Training 
to supervise the national defense training activities 
and defense projects of the Office of Education, the 
National Youth Administration, and the Civilian 
Conservation Corps, was announced by the Ad- 
ministrator of the Federal Security Agency on 
March 27. Programs now in operation which 
will be supervised by the Director include pre- 
employment training; supplementary training for 
workers in defense industries; training for rural 
and nonrural youth; vocational training for per- 
sons employed on work projects of the National 
Youth Administration; part and full-time engineer- 
ing defense training; and vocational training in 
camps of the Civilian Conservation Corps. Close 
cooperation will be maintained with the Office of 
Production Management in connection with labor 
supply and training within defense industries. 


Social Security 


“Ss pee OO 


Employees and Their Wages Under Old-Age 


and Survivors Insurance, 1937—39 


Joun J. Corson * 


ANNUAL TABULATIONS Of employee wage records 
under old-age and survivors insurance have now 
been made for 3 years. They supply, perhaps, 
the most comprehensive data so far available on 
employment and earnings in American industry 
and commerce. They depict, in more precise 
terms than has heretofore been possible, the pro- 
portion of the working population that is pro- 
tected by the old-age and survivors insurance 
system. They depict too the extent of protec- 
tion which is provided for workers with varying 
employment histories. An analysis of the re- 
cently completed tabulation for 1939 goes far 
to confirm the conclusions that were suggested 
by the data for 1937 and 1938 (table 1).' 

Comparisons of the 3 years emphasize in gen- 
eral the stability of the pattern of employment 
and earnings covered by the program, apart from 
the changes in wage distributions and averages 
that result from variations in business activity. 
There has been little change in the composition 
of the covered labor force with respect to age, sex, 
and race, and the same stability is found in the 
relations between the average earnings of such 
groups as men and women, white and Negro 
workers, or young workers in their twenties and 
those who are older. 

This absence of sharp and unpredictable varia- 
tions in the employment and wages of workers 
covered under old-age and survivors insurance is 
important in two respects. First, it tends to 
establish the reliability of the data from which the 
statistical tabulations are made. Second, it 
implies that conclusions drawn from the data 
even though the period to which they relate is 
not very long—may be relied on as a basis for 
long-range estimates of the results of the program, 
and for plans for administration and legislation. 
It should be remembered in any discussion of 
taxable wages that the total or average taxable 





*Director, Bureau of Old-Age and Survivors Insurance. 

‘A general summary of the preliminary 1937 wage data appeared in the 
Bulletin for March 1939, pp. 3-9, 72-81; special analyses were carried in subse- 
quent issues. For a general summary of 1938 wage data, with revised figures 
for 1937, see the Bulletin, December 1940, pp. 3-10,70-76; other special analyses 
were published in the February and March 1940 issues. 


Bulletin, April 1941 


wage cannot be interpreted as total or average 
earnings from employment during the year, since 
many workers may also receive income from non- 
covered employment. 


Method of Tabulating 1939 Data 


The tabulation of records of employee wages in 
1939 was confined to a sample of approximately 


Table 1.—Old-age and survivors insurance: Workers 
with taxable wages and amount of such wages, by sex 
and race, 1937, 1938, and 1939 ' 





Percentage change 
| from— 





Sex and race ! 
1937 | 1937 | 1938 


to to to 
1939 | 1938 | 1939 
































Total 4 | 324] 310 | 32.1 | -0.9| —4.3| +35 
White | 302) @ 29.8 | —1.3 @ (2) 
Negro 2.2 () ee ges @ (3) 

Male | 23.4 22.3 | 23.0) —-1.7|—47| +381 
White. | 215 @) | @$2)-L4) @® ® 
Negro... 1.9 @) | ek. (3) ( 

Female. 9.1 87; 90|—11| 44] +84 
White 8.7 | 8.6) —1.1 ® +) 
Negro 4 (2) | = | Ae @ @ 

| ie Ss &. 
Taxable wages (in millions) 

Total 3 __|g29, 197. 2 |$26, 173.9 |$28, 127.2 | —3.7|-10.4] +7.5 
White ...| 28, 248.4 () 27,214.1 | —3.7] (@® g 
Negro... : 948. 8 () 913.0 | —3.8 (*) ty 

Male 24, 299.3 | 21, 695.5 | 23,320.6 | —4.0/—-10.7] 47.5 
White 23, 446.9 (2) 22, 508.3 | —4.0 © (2) 
Negro EN (2) 8123) -47] @ (?) 

Female | 4,807.9 | 4,478.4] 4,806.6|—-19|-86] +7.3 
White = 4, 801.5 : 4, 705.9 | —2.0 0 
Negro. ___- * | 96. 4 (3) 100.7} +45] @ (3 




















1 Data for 51 States. The Social Security Act of 1935, in operation in 1937 
and 1938, excluded wages of workers aged 65 and over; the 1939 amendments 
to the act include such wages. In 1937, 1938, and 1939, wages in specified 
employments not covered by old-age and survivors insurance, and wages in 
excess of the first $3,000 a year from any one employer, are excluded. Data 
for 1939 are not fully comparable with those for 1937 and 1938, because they 
include only 97.2 percent of the estimated total number of workers and 96.5 
percent of the estimated total volume of wages paid in 1939. For a statement 
of the method by which 1939 totals were derived, see the accompanying text. 

2 White includes all races other than Negro; data by race not available for 


1938. 

3 The total for 1937 excludes 97,837 workers holding railroad retirement ac- 
count numbers and their taxable wages of $27,182,270, and 312,536 whose sex 
and/or race is unknown, and their taxable wages of $54,275,641. The total for 
1938 excludes 142,433 workers holding railroad retirement account numbers 
and their taxable wages of $38,951,968, and 52,297 whose sex and/or race is 
unknown, and their taxable wages of $24,967,250. The total for 1939 excludes 
237,997 workers holding railr retirement account numbers and their tax- 
able wages of $65,606,339, and 66,954 whose sex and/or race is unknown, and 
their taxable wages of $53,535,643. All amounts are rounded; therefore totals 
may differ slightly from sums of rounded amounts. 








20 percent of the accounts set up for individual 
workers. This change from the previous plan of 
100-percent tabulations was made necessary by 
revised arrangements for posting wages to these 
accounts. In making up the summary tables, the 
sample data have been inflated as nearly as 
possible to 100 percent. The inflated totals do 
not, however, include the 1939 wages which were 
reported for individual employees incorrectly, 
incompletely, or delinquently, and not identified 
for posting by the middle of May 1940; they are 
therefore not comparable with the final totals of 
32.8 million workers and $29.3 billion in taxable 
wages for 1937, and of 31.2 million workers and 
$26.2 billion in wages for 1938.2 With adjust- 
ments for the delinquent and suspended items, the 
totals for 1939 may be put at 33.1 million workers 
and $29.2 billion in taxable wages. Average 
annual taxable wages per worker, on the basis of 
these comparable totals, amounted to $882 in 
1939, as compared with $844 in 1938 and $900 in 
1937. The 1939 average from the unadjusted 
data, used subsequently in the discussion, is only 
slightly lower—$877 (table 2). 


Table 2.—Old-age and survivors insurance: Percentage 
distribution of workers with taxable wages and their 
average annual taxable wage, by sex and race, 1937, 
1938, and 1939 ! 
































Percentage distribution Average annual taxable 
of workers wage 
Sex and race | a 
1937 1938 1939 | 1937 1938 | 1939 
, aaa ne 100.0 100.0 | $900 $544 77 
NES ke 93.1 @ %.1| 936] @ | 912 
Negro. “Sets 6.9 3) 6.9 423 @) | 410 
EE 72.0 71.9 71.8 1,040 973 1,012 
ACRE . 66. 3 @) 66.1 1,091 () 1, 062 
SERPS 5.7 @) 5.7 457 () 438 
a 28.0 28.1 28.2 540 515 533 
TS TTR 26.8 @) 27.0 552 @) | 5A4 
iuvicinniiebasau 1,2 (’) 1.2 256 () | 271 
! See table 1, footnotes 1 and 3. 
2 Not available. 


With tabulations for 3 successive years it be- 
comes possible, for the first time, to survey the 
old-age and survivors insurance data in _per- 
spective. Since the inflated totals for 1939 are 
not fully comparable with the final totals for 1937 
and 1938, the present discussion is largely in 

* These totals are slightly higher than those given for 1937 and 1938 in the 
December Bulletin, op. cit. The latter excluded workers whose sex and/or 


race was unknown and those holding account numbers in the special railroad 
retirement series. 


4 


terms of percentage distributions and averages 
rather than in terms of absolute figures. Sineg 
the data originally tabulated for 1939 were jp. 
flated by multiplying them by a constant factor, 
the percentages and averages for the year are jp 
effect those of the 20-percent sample. The eyj- 
dence at present available justifies the belief that 
the distributions and averages here given for the 
larger groups are representative of all covered 
employment and wages in that year. They are 
also comparable with the corresponding figures 
for the 2 earlier years. 


Composition of Covered Workers by Sex and 
Race 


Of all workers with reported taxable wages in 
1939, 72 percent were men and 28 percent were 
women. These proportions are almost identical 
with those for 1938 and 1937. Some surprise 
was occasioned when the 1937 tabulation indi- 
cated that the proportion of women workers in 
covered employment in that year—28 percent— 
was materially higher than the proportion of 
female gainful workers—22 percent—shown 7 
years earlier by the census of 1930. Preliminary 
data of the census of 1940 show that women con- 
stitute 24.6 percent of the labor force in the 
country. This 1940 figure reduces the difference 
to a moderate amount, which is probably ex- 
plained by the special characteristics of employ- 
ment covered by the old-age and survivors insur- 
ance program and by the definition of the labor 
force as enumerated in the 1940 census. 

Of the total covered workers in 1939, 6.9 per- 
cent were Negroes—a proportion which scarcely 
differs from that shown by the 1937 tabulation. 
There is no comparable figure for 1938. Only 17 
percent of the Negro workers in 1939 were women, 
as compared with 29 percent of the white workers. 
These proportions, again, were substantially the 
same as in 1937. 

More than half a million workers 65 years of 
age and over, or 1.8 percent of the total, received 
taxable wages in 1939. This is the first time any 
indication of the number of workers in this age 
group has been available. The amendments to 
the Social Security Act, enacted in the summer of 
1939, made their wages taxable retroactively to 
the first of the year. The number of workers aged 
65 and over is still subject to a margin of error. 
Workers in this age group who appeared in the 


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Table 3.—Old-age and survivors insurance: Percentage 
distribution and cumulative percentage of workers 
with taxable wages, by wage group, 1937, 1938, and 


1939 ! 








| Percentage distribution Cumulative percentage 





Wage group | so | 
1937 1938 | 1939 | 1937 | 1938 1939 

Total 100.0 | 100.0 | 100.0 | 
~~ er 21.7 24.9 23.7| 21.7) 24.9 23.7 
200-399 a 10. 5 11.7) 11.2] 322] 36.6) 34.9 
100-500. | 95) 103) 99] 41.7) 4.9!) 44.8 
600-799... .. | 103] 101! 100) 620] 570] 548 
800-999... -- 9.4 9.0 8.9 | 61.4); 66.0) 63.7 
1,000-1,199.. 8.1 7.5 7.5| 60.5 | 73.5 71.2 
1'200-1,399 . . & 6.3 6.7| 76.6] 79.8] 77.9 
1,400-1,599. . 5.8 4.9 5.4 82.4 | 84.7 83.3 
1,600-1,799 - 4.3 3.5 4.0 86.7 88. 2 87.3 
1,800-1,999 3.4 2.9 3.3 | 90. 1 91.1 90. 6 
2,000-2,199 2.4 2.1 2.3} 925] 93.2] 92.9 
2,200-2,399 1.6 1.4 1.5 94.1 4.6 04.4 
2,400-2,599.- 1.2 11 11] 95.3} 95.7| 95.5 
2,600-2,799 9 x 9 96.2| 96.5) 96. 4 
2,800-2,999 7 6 6) 96.9) 97.1 | 97.0 

| | 

3,000 and over. 3.1 2.9 3.0} 100.0} 100.0} 100.0 





| See table 1, footnotes 1 and 3 


1937 and 1938 tabulations were mainly those who 
became 65 years old at some time during those 
years and hence were covered for only part of the 
year. 

Apart from the effects of this change in the law, 
the age distribution of covered workers in 1939 
(chart 1) was substantially the same as in the 2 
preceding years, both for all covered workers and 
for the sex and race groups. 


Distribution of Taxable Wages 


Generally the taxable earnings of workers were 
greater in 1939 than in the preceding year. The 
distribution of the taxable wages of individual 
workers in 1939, when compared with 1938, tends 
toward smaller proportions in the intervals below 
$1,000, and larger proportions in the intervals of 
$1,200 and over (table 3).° This trend, which is 
confirmed by the rise in the average taxable wage 
from $844 in 1938 to $877 in 1939, is due largely 
to the higher level of business activity in 1939. 

In comparison with 1937, the 1939 distribution 
shows larger proportions of workers in the intervals 
under $600 but smaller percentages in the intervals 
of $600-799 and over.‘ This difference also is 
consistent with the lower average wage for 
1939—$877 as compared with $900 in 1937. 





' There was no difference between the 2 years in the percentages for inter- 
vals $1,000-1,199, $2,400-2,599, and $2,800-2,999. 

‘Except the interval $2,600-2,799, in which proportions were the same 
for the 2 years 


Bulletin, April 1941 


Average Wages by Sex and Race 


As has already been pointed out, the average 
taxable wages of all covered workers declined from 
1937 to 1938 and then recovered in 1939, though 
not to the level of 1937. The averages for both 
sexes showed similar changes over the 3 years. 
The 1939 average for men was $1,012, in com- 


Table 4.—Old-age and survivors insurance: Percentage 
distribution of workers with taxable wages and their 
average annual taxable wage, by age group and by 
sex, 1937, 1938, and 1939 ! 





| Percentage distribution | Average annual taxable 
















































































of workers wage 
Age group (years)? et 
| 
1937 | 1938 | 1939 | 1937 | 1938 | 1939 
| | 
All workers 
— : ne , 

Total 100.0 | 100.0} 100.0} $900} $844/ $877 
Under 15 oo 2 a 52 46 55 
15-19__. 9.6 80} 8&2 268 211 213 
20-24 19.2} 188] 186 598 513 537 
25-29. - 16.6] 16.7| 16.6 862 773 
30-34 13.5| 141] 13.8| 1,063 978 | 1,003 
35-39. 11.2} 11.4] 113] 1,153] 1,080] 1,114 
40-44__ 9.4 9.7 9.2/ 1,219] 1,135] 1,179 
Seperate 7.8 7.9 7.7| 1,222| 1,147] 1,197 
RS cio 5.7 6.2 6.0} 1,193 | 1,110] 1,167 
SSR 4.0 4.1 4.2} 1,140] 1,070] 1,115 
EERE 2.4 2.5 25| 1,002] 1,028] 1,069 
65 and over. . 4 5 1.8 623 561 1, 023 

Male 
ae , 

Total 100.0 | 100.0} 100.0 | $1,040 | $973 | $1,012 
Under 15_. 2 | 2 | 1] SI 45 51 
15-19__. 80| 66| 69) 282 218 219 
0-0. ........ 16.8} 16.1 16.2 670 561 587 
98-20. ...... 15.8| 16.0 15.9 | 982 874 912 
30-34 13.8] 14.2] 139] 1,213] 1,113] 1,146 
35-39 1.7} 11.9] 11.7] 1,311] 1,226] 1,271 
a bi 10.2} 10.5 9.8} 1,372] 1,279| 1,387 
45-49. - : 8.8) 8&8 8.5 | 1,357] 1,274 1, 336 
OOOE: oe 6.6) 7.1 6.9 | 1,301] 1, 1, 275 
55-59 eee 4.7 4.9 4.9} 1,226] 1,151] 1,199 
60-64 : 2.9 3.1 3.0] 1,162] 1,094] 1,137 
65 and over 5 | 6 2.2 | 651 585 1, 067 

; 
Female 
Total ...| 100.0 | 100.0 | 100. 0 | $540 | $515 $533 
Under 15 8) 38 | Q | 63 59 | 83 
| | 
15-19 | 187] 1.5] 115 | 248 202 205 
20-24 | 25.4) 25.3) 29) 475) 433 | 455 
25-29 | 18.6 18.6) 18.5 599 550 | 562 
30-34 |} 129) 136] 137) 652 619 635 
35-39 98/ 10.1 10.3 666 | 638 | 657 
ee cod | zs} zoel zz] on | 641 664 
45-49 5.4| 56| 57| 663| 643 662 
50-54. _. 3.4 a7) 8&2). 631 | 654 
55-59 - |} 21] 22] 22) 645) 614) 637 
60-64 i es 12} 12/| 613 604 | 628 
| | 
65 and over ‘9 | .2 .6 408 387 621 
| | 
1 See table 1, footnotes 1 and 3. 
? Age at birthday nearest July 1 of each year. 
3 Less than 0.05 percent. 
5 








parison with $973 in 1938 and $1,040 in 1937. 
For women, the figures were $533 in 1939, $515 
in 1938, and $540 in 1937. In each year, average 
annual wages for men were nearly twice those for 
women. 

The average wage of all white employees in 1939 
was $912, in comparison with $936 for 1937; the 
corresponding averages for Negroes were $410 and 
$423.5 White men averaged $1,062 in 1939, as 
compared with $1,091 in 1937. For white women 
the averages were $544 in 1939 and $552 in 1937. 
For Negro men the averages were $438 in 1939 and 
$457 in 1937, while for Negro women they were 
$271 and $256, respectively. For both years the 
average annual wages of Negroes were less than 
half those of the corresponding groups of white 
workers. 


Average Wages by Age Group 


Workers’ average taxable wages rise rapidly 
till the age period 30-34, and then much more 
slowly to the highest point in ages 45-49 (table 
4 and chart 2). From this point, average wages 
decline slowly to the age group 60-64. In com- 
parison with the rapid increase through the earlier 


§ The classification of white workers includes a very small proportion of 
races other than white or Negro. There was no general classification by 
race in the 1938 tabulation. For a detailed analysis of 1938 data by race, see 
Franklin, Charles L., ‘Characteristics and Taxable Wages of Negro Workers, 
13 Selected Southern States, 1938," Socici Security Bulletin, Vol. 4, No. 3 
(March 1941), pp. 21-31 


ages, the averages for the groups from age 39 
through age 64 change very little. There ig 
small further increase up to the period 45-49 and 
after that an equally moderate decline. Average 
1939 wages for men were at their peak in the age 
periods 40-44 and 45-49, but from then on there 
was a gradual decline. For the age group 60-64 
the average was slightly less than for the group 
30-34, and the decline continued at the same rate 
for the group aged 65 and over. Women’s average 
wages, on the other hand, rose less rapidly to the 
age period 30-34 and thereafter remained at 
nearly the same level. The same patterns are 
found in the tabulations for 1937 and 1938, except 
for the group aged 65 years and over. 

The average wages of workers 65 years of age 
and over, shown by the tabulations for 1937 and 
1938, were low in comparison with those for the 
age group 60-64. The figures were, respectively, 
$623 and $1,092 in 1937, and $561 and $1,028 in 
1938. This appreciable difference was due mainly 
to the fact that, as the law then stood, the wages 
of workers who reached the age of 65 during a 
given year were taxable only until the workers’ 
sixty-fifth birthdays, but not for the rest of the 
year. The averages for 1937 and 1938 therefore 
represented wages received for less than a year. 

Beginning with 1939, the averages for persons 
aged 65 and over represent taxable wages for that 


Chart 1.—Old-age and survivors insurance: Percentage distribution of workers with taxable wages in 1939, by age 
group and sex 


PERCENT OF MALE WORKERS AGE GROUP PERCENT OF FEMALE WORKERS 
25 __20 15 __10 5 0 (YEARS) om 5 10 __15 20 _ 25 
UNDER 15 | | | 
| “—<_ 
20 — 24 
25 — 29 
30 — 34 
| 35 39 
| 40 44 
45 — 49 
50 — 54 
55 59 
60 — 64 











tLess than 0.5 percent. 


65 & OVER 





Social Security 


eo 


30 


ge 


he 
y, 
in 


year. It is therefore possible to compare, for 
the first time, the average wages of workers 65 
years and over with those for groups below age 65. 
The differences are remarkably small. The aver- 
age for all workers aged 65 and over in 1939 was 
$1,023, only $46 below the average for the age 
group 60-64 and higher than the average of $1,003 
for the age group 30-34 in that year. 

These facts make it evident that the older 
workers now covered by old-age insurance are a 
selected group. The data tend, moreover, to 
explain why, in 1940, the number of claims for old- 
age benefits filed by workers retiring at the age 
of 65 was considerably smaller than had been 
expected. The earnings of those who have had 
steady employment during the years just pre- 
ceding age 65 tend, it would seem, to be main- 
tained at approximately the same level, with the 
result that they feel no strong incentive to ex- 
change them for modest retirement benefits. On 
the other hand, many workers whose earnings, in 
their early sixties, have been so low as to make 
them welcome the idea of qualifying for benefits 
have, because of intermittent employment, been 
prevented from acquiring an insured status during 
the short period that the old-age insurance pro- 
gram has been in effect. As the system becomes 
more mature this difficulty should lessen. 


Changes in Average Wages for Individual States 


The only geographical distribution of taxable 
employment and wages which can be made at 
present is by State. In their wage reports, em- 
ployers are required to show for each worker the 
State in which he was employed during the report- 
ing period. From this information the number 
of workers and the amount of wages received in 
each State can be tabulated accurately. 

The changes from 1937 through 1939 in average 
taxable wages per employee in individual States 
show considerable variation from the national 
pattern—the decrease from 1937 to 1938 and 
partial recovery in 1939. In only 26 States do the 
averages follow this.pattern (table 5). In 7 
States, average taxable wages were higher in 1938 
than in 1937; in 11 States they were lower in 1939 
than in 1938; and in 4 they were lower in both 1939 
and 1937 than in 1938. In 14 States the averages 
were higher in 1939 than in either of the 2 pre- 
ceding years. In a considerable proportion of 
these cases, however, the differences between the 
averages for the years compared were small, 
and the variations are probably not of much 
significance. 

The States which show a departure from the 
national pattern are fairly well scattered through- 
out the country. The more pronounced devia- 


Chart 2.—Old-age and survivors insurance: Average annual taxable wages of workers with taxable wages in 1939, 
by age group and sex 


MALE 
AVERAGE TAXABLE WAGE 
_$800 $600 


$1400 $1200 $1000 
——- | sa T 


a 
Bulletin, April 1941 
310125—41——-2 


$400 $200 
400 ___ $200 























FEMALE 
) rr ae may ) $200 $400 _ re $800 
ALL AGES 
UNDER 15 
is = 9 
20 — 24 
2 - 2 
0 = 
sa - 
40 — 44 
45 —- 49 
50 — 54 
Ss - @ | 
60 — 64 
65 & OVER 
neal 
1 








tions, however, show up chiefly among the less 
industrialized States, notably in the region west 
of the Mississippi. There are few deviations from 
the pattern in New England or the industrialized 
Middle West, and not many of importance among 
the Middle Atlantic or the southeastern States. 
The 10 States with the highest averages were 
the same in 1937, 1938, and 1939, except that in 
1938 Alaska replaced the District of Columbia, 
which fell to twelfth place. New York stood high- 
est in 1938 and 1939, but Michigan outranked New 
York in 1937. The other seven States—Califor- 


Table 5.—Old-age and survivors insurance: Percentage 
distribution of workers with taxable wages and their 
average annual taxable wage, by State, 1937, 1938, and 
1939 } 





| of workers 
| 























| 
Percentage distribution | Average annual taxable 
| wage 
State o | 
137 | 1908 990 | 1937 | 1938 | 1990 
A tusebnce. 100.0 | 100.0 | 100.0 $900 $844 $877 
Alabama... ____. i SET fe 1.3 | 604 572| 603 
Alaska.........._. Pm <i aa on 854 931 793 
Fl Gee a 3 3 ol 757 726 | 786 
Arkansas__._______. = 6) 6 Fy 539 492 | 478 
California. _.........._. 6.2 63/ 62] 916| 930) 936 
Colorado. ._...._- eae 8 8 9 721 742 | 744 
Connecticut........ ___. 1.9 1.8 1.9 1,022 938 1,014 
Delaware... ___. ea 3] 2 | .3 853 S829 887 
District of Columbia___| .6 | at .6 929 882 951 
i ERAT 14 | 1.4 1.4 568 514 531 
Georgia_____. = ene 1.6 1.8 | 18 505 | 521 554 
Hawaii..________- : 4] .4 3 507 570 578 
I a a .3 .3 -3 621 628 
Illinois. _..._. 7.4 | 7.5 | 7.6 1, 048 977 1,010 
Indiana_. 2.8 2.6 2.6 830 887 
gi lipemic aba 12} 13 1.3 744 705 718 
a 9] .9 .9 710 693 678 
Kentucky.............. 1.3 1.3 1.2 684 643 692 
a 1.3 | 1.3 | 1.3 607 647 639 
Maine_. ere BS eS x 676 630 | 653 
0 aa 1.5 1.5] 1.5 827 789 843 
Massachusetts... __. 4.4 4.3) 4.3 970 RU O44 
I 5.0 4.8 4.4 1,117 908 1, 007 
RIES 1.6 1.6 1.6 867 835 KBR 
Mtssissippt EL RES .6 i 7 424 421 435 
issouri__. 2.6 | 2.6 2.7 833 820 | &39 
Montana.........__... 4] a .3 816 7384 | 819 
Nebraska..........___. .6 Py .6 729 668 682 
STS aa 1 oa SAN 856 | 818 
New Hampshire_____- 4 5 .5 769 690 725 
New Jersey... 3.9 3.9 4.0; 1,002 976 | 993 
New Mexico... __. .2 on -2 713 647 628 
(2 See 13.5 13.8 13.9 1, 060 1, 028 1, 048 
North Carolina... ___- 2.0 2.1 21 582 552 578 
North Dakota.._..____ = .2 an 631 632 604 
ARI RR 6.2 5.9 5.9 1, 037 924 1, 007 
Oklahoma.......____. 1.1 1.1 1.0 769 740 — 722 
SO SRN 9 8 9 827 B15 | 834 
Pennsylvania_.....___. 8.8 8.7 8.6 993 900 | GAs 
Rhode Island... _. 8 8 8 901 806 s40 
South Carolina... _. 10} 10] 10] 536) 483) 52 
South Dakota... _. a ~ an 618 639 | 634 
; 1.5 1.5 1.6 643 584 | 630 
, RL ae 3.7 3.9 3.9 694 669 | 688 
Dh in. soncpaciooapneee 3 3 .3| 0} 742) 719 
Rs odshttndicuniiaic oa .2 -3 699 682 | 661 
laa NNT 1.6 1.6 1.7 661 643 652 
Washington.__.....___. 1.4 14 1.4 861 85S 898 
West Virginia........_. 1.3 1.3 1.3 907 826 | 4] 
EL, cccnccacccene 2.3 |} 2.2 2.1 908 891 927 
.. eae .2 A 2 36 772 803 

















1 Bee table 1, footnotes 1 and 3. State distribution based on State of em- 
ployment of worker during the reporting period. 


nia, Connecticut, Illinois, Massachusetts, Ney 
Jersey, Ohio, and Pennsylvania—were the same 
in all 3 years, but their order varied somewhat. 
These 10 are among the principal industrial States, 
which have the smallest proportions of workers on 
the borderline of agriculture and in which—except 
for the District of Columbia—there are relatively 
few Negro employees. 

The 10 States with the lowest average taxable 
wages per employee were also the same in all] 3 
years, except the two highest of the 10. These 
were Idaho and North Dakota in 1939, Idaho and 
Tennessee in 1938, and South Dakota and Louisi- 
ana in 1937. The order of the remaining eight 
Alabama, Arkansas, Florida, Georgia, Hawaii, 
Mississippi, North Carolina,and South Carolina 
also varied from year to year. The low rank of 
these States is presumably accounted for by sey- 
eral facts. A majority of them are southern 
States, in which rates of wages are low. They are 
still, to a high degree, agricultural States. Except 
for Hawaii, Idaho, and the Dakotas, they have 
higher proportions of Negroes among their work- 
ers than are found in other parts of the country. 


Average Wages by Industry Group 


The tabulation by industry groups for 1938, 
which was the first of the kind to be made, included 
only workers for whom taxable wages had been 
reported for the fourth quarter of the year. In 
the 1939 tabulation, workers were classified on 
the basis of industries in which they worked during 
the third quarter, but for those who had received 
no taxable wages in that period the first, second, 
or fourth quarter, in that order of reference, was 
substituted. It was therefore possible to include 
in the industry tabulation for 1939 all workers 
with covered employment in that year. The 
1939 industry tables, therefore, are not, like those 
for 1938, overweighted with the more stable 
workers. 

The fact that the industry tabulation for 1938 
did not represent all workers in covered employ- 
ment during the year, and also the use of different 
quarters in determining the industries in which 
individual workers were employed in 1938 and 
1939, make it unsafe to compare the industry 
data for the 2 years. Hence, the present discus- 
sion of average taxable wages in specific industries 
is confined to 1939. 

In tabulating by industry the employment and 


Social Security 


ew 
ime 
lat, 
tes 
| On 
ept 


e\- 
ern 
are 
ept 
ive 


rk- 


wages of employers who are engaged in one in- 
dustry only, no complications arise. The em- 
ployment and wages of an employer engaged in 
more than one industry, however, cannot at 
present be distributed among those industries. 
Such an employer is consequently classified accord- 
ing to the combination of industries in which he 
is engaged, and all his employment and wages in 
each State are consolidated with the industry 
that constitutes the primary activity of the com- 
bination in that State. This method necessarily 
results in some overlap between industries. Some 
wages and employment which properly belong in 
the coal and iron-mining industry, for example, 
are consolidated with the steel industry, and some 
which properly belong with wholesale trade are 


consolidated with manufacturing industries. This 
fact should be borne in mind in using the industry 
data. 

The cooperation of employers engaged in more 
than one industry is now being obtained for a 
plan whereby employees will be grouped in the 
wage reports according to the establishments in 
which they worked. This plan will make it 
easy to segregate the employment and wages of 
establishments engaged in various industries, 
and will eliminate the previous overlap. 

The highest average earnings per employee in 
1939 (table 6) appear in street, suburban and inter- 
urban railways ($1,577), investment banking and 
security dealers ($1,546), products of petroleum 
and coal ($1,493), light, heat and power companies 


Table 6.—Old-age and survivors insurance: Average taxable wage per worker and percentage distribution of 
workers by industry, 1939 ! 




















| Percent-| Average || Percent- ——- 
Industry age distri-| taxable Industry e distri-| taxab 
bution | wage | tion wage 
e m Ss Ss Se = eer so = 
Total | 100.0 | $877 | | Trade. 22.8 $762 
——| Wholesale trade__- echiumtatoabe 5.3 957 
Mining and quarrying 3.3 | 966 ! 2, Ww holesale and retail trade combined. _ _- ne 2.5 903 
10. Metalliferous mining 5 1,120 || 53. Retail general merchandise... ..-...........-.-- 5.3 611 
11, Anthracite mining : | 3 1, 053 54. Retail food --.-...--- 3.2 686 
12. Bituminous coal mining 1.5 882 || 55. Retail automotive 1.4 979 
13. Crude petroleum and natural gas production | .6 1, 104 56. Retail apparel - - seen 1.9 683 
14. Nonmetallic mining and quarrying 4) 692 || 57. Retail trade, not elsewhere classified _- sean 3.2 776 
Contract construction 6.2 | G81 || Fimanes. ..........-.--.--------------0--neee-sannoneceee 9 1,341 
15. General contractors—building construction 1.8 | 668 | 60. Banks and trust companies 3 1, 286 
16. General contractors—other than building con- | | 61. Investment banking and security ‘dealers. ___-. 3 1, 546 
struction 2.2 | = iF 62. Finance agencies, not elsewhere classified - _. .3 1, 216 
17. Special trade contractors (subcontractors) --- - - | 2.2 | ] — 4 ‘ eT ae ‘ +. 1, 
Manufacturing 41.2 | 975 63. Insurance carriers... _-____---__- , . 
2. Food manufacturing 6.4 | S41 I - Insurance agents and brokers. .._. atid cz a 
1. Tobace f fact y 5) 707 Real estate _ . : ‘ 5 
2 Seats alll peotaats | 4.9 | 727 65. Real estate dealers, agents, “and brokers - 1.4 b64 
23. Apparel and other finished articles made from | 66. C pee group, = estate, insurance, loans, . om 
fabrics 7 3.8 726 | aw office: any combination_.............-. . . 
24. Basic lumber industries | 1.7 611 || Hok ding companies. -- : .6 1, 183 
25. Finished lumber products 1.6 820 . Holding companies m = 
26. Paper and allied products 1.1] 1,057 || Serv ce. . . 
27. Printing, publishing and allied industries 2.3 1, 201 | 70. Hotels, furnished rooms, camps, and other pede _ on 
23. Chemicals 2.0 1, 155 ing places ; P : 
29. Products of petroleum and coal 7] i, = 1} 71. Eating po drinking ES t: = 
30. Rubber products 5 1, 162 7 ersonal service y 
31. Leather and its manufactures 1.5 | 781 73. Business service, not elsewhere classified __ 5 1.3 957 
32. Stone, clay and glass products 1.6 | 1,011 74. Employment agencies and commercial and 
33. Iron and steel and their products 4.3 | 1, 206 oS tS (Ee 1 774 
35. Nonferrous metals and their products 1.1 1, 140 75 Automobile repair services, garages and filling 
36. Electrical machinery (including radios and | stations. c 12 708 
refrigerators) | 1. 3 | 1,117 76. Repair services and misce llaneous hand trades, 
37. Machinery other than electrical : 2.6 1, 321 | not elsewhere classified - -._.....- ; 3 49 
38. Automobiles, bodies and parts | 1.4 1, 282 | 77. Agricultural, horticultural, animal husbandry 
- 39. Miscellaneous manufacturing | 1.9 1,019 | — — _— ae saan . . = 
ransportation | 3.2 1,014 | 78. Amusement and recreation: motion pictures... . 
41. Street, suburban and interurban railways (other | 79. Amusement and recreation and related saben 
than interstate railroads) and city and sub- | Peet -y — Sirs cmmwindorecars BS os 
urban bus lines 5 1, 577 | rofessional services. - -.- a ° 
42. Trucking and/or warehousing for hire 1.5 863 80. Medical and other health services. 3 .6 650 
43. Other transportation, except water transpor- . -“ \| - i pe mad ome sor apt poe : + = 
tation ‘a i . Educational institutions and agencies. ‘ 
44. Water transportation 2 1,072 83. Other professional and social service agencies 
45. Services allied to transportation, not elsewhere on Hl aes - and institutions o 1, 4 
classified 5 ‘ iscellaneous - - - . ‘ 
Public utilities 3.1 1, 207 85. Private business organizations, not elsewhere 
46. Communication, telephone, telegraph, commer- classified 3 460 
cial radio and related services 1.4 1, 188 86. Membership organizations such as trade associ- 
48. Utilities, light, heat and power companies, elec- ations, and trade unions, ete.-----..-. 6 937 
tric and gas 1.6 1, 448 88. Service for government agencies __-_--. ware () 943 
49. Other local utilities and local public services. _.. wll 659 
1 See table 1, footnotes 1 and 3. Industry classification based on employ- 2 Less than 0.05 percent. 
Ment during 3d quarter; for wi orkers with no wages in that quarter, the 
Ist, 2d, or 4th quarter, in that order, was used. 
Bulletin, April 1941 . 








($1,448), insurance carriers ($1,360), manufacture 
of machinery other than electrical ($1,321), 
banks and trust companies ($1,286), automobiles, 
bodies and parts ($1,282), finance agencies not 
elsewhere classified ($1,216), and insurance agents 
and brokers ($1,214). No one factor alone, of 
course, accounts for the high averages in these 
industries. In the main they reflect the relatively 
large proportions of executives, technical men, and 
skilled wage earners on their pay rolls. 

The industries with the lowest average taxable 
wages in 1939 include agricultural and horticul- 
tural services *° ($400), private business organiza- 
tions not elsewhere classified ($460), hotels, fur- 
nished rooms, camps and other lodging places 
($462), eating and drinking places ($472), retail 
general merchandise ($511), general contractors, 
construction other than buildings ($516), basic 
lumber industries ($611), medical and other health 
services’ ($650), personal services* ($651), and 
general contractors—building construction ($668). 
These averages reflect, primarily, such factors as 
low hourly earnings, seasonal unemployment, and 
high labor turn-over. 

The tables presented with this article have been 

* These include cotton ginning, contract harvesting services, nurseries and 
greenhouses (at certain times, landscape gardening, etc.). 

* The employees of these medical and health services who are covered by 
old-age and survivors insurance are chiefly office nurses and clerks. 


* Laundries, barber shops, beauty parlors, cleaning and dyeing establish- 
ments, etc. 


10 


confined to comparative percentages and averages 
for the groups of workers specifically discussed, but 
relate to 1937 and 1938 as well as 1939. The 1939 
tabulation will be presented in summary in the 
Social Security Yearbook for 1940, while detailed 
material will be issued in a handbook, Old-Age 
and Survivors Insurance Statistics: Employment and 
Wages of Covered Workers: 1939, to be released 
about July 1941. 


Conclusion 

Reports on the first year’s operation of the 
old-age and survivors insurance system indicated 
a greater movement of workers between the area 
of covered employment and that of noncovered 


employment than had been anticipated. The 
extent and significance of this “in-and-out” move- 
ment becomes much clearer as data on earnings 
in covered employment for 2 additional years, 
1938 and 1939, become available. These data, 
in the aggregate, emphasize the necessity of 
continued appraisal of the provisions by which 
each worker’s eligibility for benefits and the 
amount of the benefits is determined, to ensure 
that these provisions “fit” the typical employ- 
ment histories of workers covered by this system. 
They emphasize, too, the artificiality of the present 
limitation of the social insurance protection to 
some members, as against applying it to the whole 
of an essentially integrated labor force. 


Social Security 


ges 
but 
939 
the 
led 
Age 


le 


Foreign Provisions for the Dependents of 


Mobilized Men 


MARIANNE SAKMANN * 


During the past months the Bulletin has 
modifi 


articles or short notes on the development or 


ublished, as information became available, special 
cation of provisions under foreign social insurance 


systems to meet wartime needs. The —— article presents a summary of the current measures 


adopted in various countries, under 
other dependents of men called to the colors. 


DuRING THE PRESENT WORLD WAR, many nations, 
whether or not they are actually participating in 
the conflict, have called up large numbers of 
civilians for service in the armed forces. Since 
military pay is generally lower than the earnings 
from gainful employment, the men who are called 
to the colors find it difficult, if not impossible, to 
provide for the persons whom they previously 
supported. The governments of the countries at 
war and of those in which large-scale mobilization 
has taken place have therefore found it necessary 
to assist the dependents of mobilized men. 

The problem has been approached differently in 
different countries, but the provisions fall, in gen- 
eral, into four main types. First, there is the 
British system paying uniform benefits to wives 
and children on the sole condition that the soldier ! 
allot a part of his pay to their support and with- 
out regard to the need of the wives and children 
or to the prior earnings of the soldier. A second 
type is found in Germany, where the wife of a 
soldier, if she has no other income, receives an 
amount which is related to the net income of the 
soldier before he joined the armed forces. Third, 
a number of smaller countries provide for the con- 
tinuation during military service of all or a por- 
tion of the wage or salary which the soldier re- 
ceived before entry upon such service. 

Commonly, these three types of provisions are 
supplemented by a fourth, on which the countries 
without any provisions of the other types rely ex- 
clusively. Under this fourth method allowances 
are confined to families in need, and the amount 
of the allowance is measured by the extent of the 
need. Thus, the British system of uniform allow- 
ances for wives and children is supplemented by 


*Bureau of Research and Statistics. 
1! Throughout this discussion the term soldier is used generically to refer 
to a man serving in the armed forces, regardless of rank or branch of service. 


Bulletin, April 1941 


e stress of general mobilization, to provide for families and 


a system of allowances for other dependents on a 
means-test basis. In Germany, only the allow- 
ance of the wife is measured by previous income; 
other dependents receive an allowance which will 
assure them of necessary maintenance; if the wife’s 
allowance falls below an amount considered nec- 
essary to meet her needs, she too receives the addi- 
tional amount. In Switzerland, the dependents 
of a soldier who is ineligible for continuation of a 
part of his former wages during military service 
receive an allowance based on need. 

In summarizing the main characteristics of the 
different systems, detailed information has been 
obtained only for Great Britain and Germany. 
The provisions of other countries are discussed to 
the extent that information was readily available. 
Although demobilization has taken place in a num- 
ber of the countries under discussion and it may 
therefore be assumed that the provisions are no 
longer in operation, they are nevertheless included 
to illustrate the various methods followed abroad 
in meeting the needs of families of mobilized men. 


Definition of Eligible Persons 


Family allowances.—In Great Britain, family 
allowances are granted to dependents of warrant 
officers, noncommissioned officers, and private 
soldiers; officers are covered under a separate sys- 
tem, which will not be described here.2? In the 
Union of Soviet Socialist Republics, too, family 
allowances are confined to dependents of private 
soldiers and noncommissioned officers who are 
mobilized in time of war; in Rumania they apply 
only to dependents of men not above the rank of 
sergeant. In Canada* and New Zealand, on the 

! The discussion and the chart are based on the practice obtaining in the 
Army. The provisions for members of the Navy and Air Force are similar. 
’ The summary in the text and in the chart refers to the provisions for the 


dependents of men in the Army and Air Force. Different provisions apply to 
dependents of men in the Navy. 


1] 








other hand, the same system covers both officers 
and men. 

Most countries granting family allowances limit 
the allowances to persons who stand to the soldier 
in a certain well-defined relationship. The range 
of the relationship varies greatly. In some coun- 
tries the list of eligible relatives is long, while in 
others it is fairly limited (chart 1). In Great 
Britain, for example, the relatives eligible for al- 
lowances are the wife, children, parents, grand- 
parents, grandchildren, brothers and sisters, and 
other dependents. In New Zealand allowances 
are confined to the wife, the children, the guardian 
of motherless children, and the dependent widowed 
mother. The Danish law extends eligibility to 
members of the family for whose maintenance the 
mobilized person is responsible. 

The dependents enumerated in the law may not 
be eligible for allowances on a basis of equality. 
In Great Britain, Canada, and Germany, the wife 
and the children receive allowances regardless of 
previous support, while other relatives are eligible 
only if the soldier was wholly or mainly respon- 
sible for their support prior to his military service. 
Moreover, in Great Britain, with the exception of 
cases in which a special war-service grant has been 
awarded, dependents other than wife and children 
receive no allowance if the wife or children are 
eligible, and an allowance is issued to only one 
dependent other than wife and children on behalf 
of any one soldier. In Canada, the receipt of an 
allowance by the wife or children does not dis- 
qualify other dependents, but allowances are paid 
to not more than three dependents on behalf of any 
one soldier. France grants only one basic allow- 
ance to any group of persons whom the soldier 
supported; in claiming the allowance, wives have 
priority over children, children over parents, and 
parents over other members of the family. 

The detailed definitions of eligible dependents 
are shown in chart 1. It may be of interest to 
discuss in some detail, at this point, the provisions 
of the British and Canadian laws defining the 
group of eligible dependents. Under the British 
law, the relatives of the soldier are divided into 
two groups, the first of which consists of persons 
eligible for allowances regardless of need. For 
this group, the allowances are uniform, varying 
only with the rank of the soldier. To it belong 
the wife and all children below school age or 
attending school; the woman who has lived with 


12 


the soldier as his wife and who was wholly or 
mainly supported by him on a permanent domestic 
basis, their children, and the soldier’s legitimate 
children who are in her care; and the separated 
wife and legitimate children of the soldier against 
whom a court order of maintenance exists. Ip 
the latter case, the court order is enforced usually 
through compulsory stoppage of pay. But if the 
stoppage falls short of the amount fixed in the 
court order or separation agreement, a supple- 
mentary allowance may be issued up to the amount 
due under the order or agreement, provided it 
does not exceed the total amount payable as 
family allowance. 

Persons in the second group are eligible for al- 
lowances only if the soldier has no wife or children 
in receipt of the regular family allowances. This 
second group must be in need, and the soldier 
must have furnished them regular and substantial 
support for a considerable and continuous period— 
normally not less than 6 months—immediately 
before his entry upon military service. To this 
group belong the wife and the children not eligible 
for family allowances and for whose maintenance 
no court order has been issued against the soldier, 
the father or mother, grandparents, stepparents, 
foster parents, grandchildren, and brothers and 
sisters. An allowance is issued to only one de- 
pendent in this second group on behalf of any one 
soldier. The allowance is measured by the need 
of the dependent and the amount of support fur- 
nished by the soldier before his induction into 
military service. In special circumstances, de- 
pendents other than those listed may receive as- 
sistance from the government. 

In Canada, too, dependents fall into two classes. 
As in Great Britain, wives and children enjoy 
privileges not available to other dependents. They 
are eligible for the allowances solely on the basis 
of their relationship to the soldier without regard 
to the previous support furnished by him and 
without an investigation of their need. The age 
limit for daughters is 17, for sons 16; but if a child 
is incapacitated, the allowance may be granted 
beyond these age limits. If the children have no 
mother, their allowances may be paid to a guard- 
ian; if a female relative of the soldier who was re- 
sponsible for the management of the man’s home 
before his entry into military service cares for the 
children while he is away, she is eligible for the 
wife’s allowance. Foster children who live in the 


Social Security 








man’s home and are wholly supported by him and 
illegitimate children dependent upon the income 
of the soldier are likewise eligible for allowances. 

The second class of dependents in Canada con- 
sists of the soldier’s mother—including the foster 
mother or stepmother—-who is widowed or sepa- 
rated from, or deserted by, her husband or whose 
husband is totally incapacitated; the totally 
incapacitated father, including the foster father 
or stepfather, whose wife is dead; the younger 
brothers and sisters of the soldier who are mem- 
bers of his household; the divorced wife; and the 
woman who has lived with the soldier as his wife 
on a domestic basis. Dependents belonging to 
this class must have been dependent on the income 
of the soldier for the ordinary necessities of life 
at the time of his entry into military service or 
must have become dependent on him after such 
entry because of loss of other means or sources of 
support. Allowances may also be granted to 
the dependent father or mother in need, if the 
soldier was the natural breadwinner of the house- 
hold but was unable to provide support before his 
entry into military service because of circum- 
stances beyond his control, such as unemployment. 
In the case of the following relatives, an allowance 
may be granted if the soldier was only partially 
supporting them: a widowed mother; a mother 
who has been deserted by her husband and has 
not been supported by him for a reasonable length 
of time; a mother whose husband is totally inca- 
pacitated; and the incapacitated father whose 
wife is dead. Sole support by the soldier prior to 
his entry into military service is a prerequisite 
for the receipt of the allowances by the following 
relatives: a mother who has been divorced or 
separated from her husband and whose husband 
has not been supporting her for a reasonable 
length of time; and the younger brothers and 
sisters of the soldier. 

The divorced wife is eligible for an allowance 
only if the soldier is legally obliged to contribute 
toward her support. The fact that the divorced 
wife receives an allowance does not disqualify the 
present wife of the soldier, if he has remarried, or 
any other dependent from receipt of an allowance. 
The wife who is living apart from her husband is 
not eligible for an allowance if he has not con- 
tributed toward her support during the 6 months 
prior to his entry into military service although 
he was able financially to do so. The woman who 


Bulletin, April 1941 


has lived with the soldier as his wife must have 
been supported by him for at least 2 years. 

The allowances of all dependents belonging to 
the second class are measured by their need. 
Steady income which they receive from any source 
whatever is deducted from the amount of the 
allowance. 

No dependent, whether belonging to the first 
or the second class, may receive more than one 
allowance at a time nor may allowances be 
granted to more than three dependents of any one 
soldier. 

Continuation of pay.—Chart 2 shows the groups 
of persons whose pay is continued during periods 
of military service. The group is most extensive 
in Switzerland, where all persons who have a pub- 
lic or private contract of employment at the time 
they enter military service, and unemployed 
persons who had employment for 150 days in the 
preceding year, are eligible for continuation of a 
portion of their salary or wage. In other coun- 
tries, the group is defined more narrowly. Thus, in 
Rumania, the provisions apply only to employees 
who served for at least 2 years in industrial and 
commercial establishments with at least five 
employees; in Greece the law covers only wage 
earners and salaried employees whose remunera- 
tion is fixed and paid at regular intervals and who 
have had not less than a year’s employment. In 
Bulgaria, workers who are mobilized receive half 
their wage for not more than 3 months. Profes- 
sional workers may receive their full salary during 
the period of mobilization. Handicraft establish- 
ments employing not more than three workers are 
exempt from these provisions if the workers and 
the employer are called up simultaneously for mili- 
tary service or if the establishment cannot con- 
tinue without replacing the mobilized workers. 
In Italy the law is confined to salaried employees. 

Chart 2 does not show the special provisions for 
public employees, who in some countries are 
eligible to receive the difference between the mili- 
tary pay and their civilian salaries, nor does it 
show the provisions under which in some countries 
the wages of workers called up for military service 
are continued for a few weeks. 


Conditions for Receipt of Allowances 


Family allowances.—By and large, family allow- 
ances are limited to dependents of soldiers in need. 
This is the case for all countries selected for this 


13 








Table 1.—Average exchange value of foreign currency, 
in dollars, 1940 











Average 
Country Monetary unit b= dey 
1940! 
} 
Belgium.__...... 1 Re 0. 0338 
kis tn pinnuiioes ESP . 8514 
eae je | aa . 0208 
i “ws (SEAN Mark (Reichsmark) . 4002 
Great Britain. --_........-. a | 3.8300 
reece ___. Eee . 0067 
ES as . 1848 
Netherlands_.......___. er . 5313 
New Zealand | Sa | 3. 0638 
Rumania... aaa — Ue | . 0060 
SSS Crown (krona) .. : . 2380 
Switzerland. _____- : at EE ican an = . 2268 
TE aan : ; (?) 

via_. | Dinar 0225 





1 Average of certified noon buying rates in New York for cable transfers. 
In dollars per unit of foreign currency. Federal Reserve Bulletin, Vol. 27, 
No. 2 (Fe 1941), p. 183. 

3 Not available. 


analysis with the exception of Great Britain, 
Canada, New Zealand, Sweden, and the U.S.S.R. 
The Canadian regulations specify, however, that 
the allowances cannot be claimed as a right and 
that the award is discretionary. 

In Great Britain, Canada, and New Zealand, 
the wife and the children of the soldier receive 
allowances irrespective of need. In Canada a 
female relative who cares for the motherless 
children of the soldier, and in New Zealand the 
guardian of motherless children and the depend- 
ent widowed mother, are eligible for allowances on 
the same basis as wives and children. The main 
condition for the receipt of these allowances is 
that the soldier must allot a portion of his pay for 
the support of eligible dependents. This allot- 
ment is added to the allowance payable by the 
government. In Great Britain and Canada, the 
allotment varies with rank and pay. In Great 
Britain, for example, warrant officers, classes I 
and II, are required to allot 28s.‘ a week; warrant 
officers, class III, and sergeants pay 21s. a week; 
soldiers below the rank of sergeant allot 14s. a 
week if their weekly pay exceeds 21s., or 10s. 6d. 
a week if their pay falls between 17s. 6d. and 21s., 
or 7s. a week if their pay falls between 14s. and 
17s. 6d. For soldiers below the rank of sergeant, 
the allotment constitutes approximately half the 
soldier’s pay. The soldier may voluntarily allot 
an additional amount to his family if he is able 
and willing to do so. 

If the soldier has been placed under compulsory 


4 The average exchange value of foreign currency, in dollars, is shown in 
table 1. 


14 


stoppage of pay for the support of his wife and 
children and if the payment of the full allotment 
would reduce his pay below a specified minimum, 
the government may pay a part of his dependents’ 
allotment for him. 

Family allowances are discontinued under cer- 
tain conditions as, for example, while the wife or 
child is an inmate of a state-supported institution 
or is maintained at public expense. 

In Canada, the amount which the soldier must 
allot for the support of his wife, children, and his 
divorced wife, before they are eligible for allow- 
ances from the government, represents 15 days 
of each month’s pay. In place of the compulsory 
allotment, the wives and children of officers re- 
ceive the marriage allowance, which is a regular 
part of the pay of officers who are married or have 
children. The allotment for which a divorced 
wife is eligible if the soldier is under legal obliga- 
tion to contribute to her support must not exceed 
the amount fixed as the soldier’s responsibility in 
the court order or separation agreement. In case 
of remarriage by a divorced soldier, the allotment 
to the second wife amounts to the difference be- 
tween the allotment payable to the divorced wife 
and 15 days’ pay; however, the right of the second 
wife to a supplementary government allowance is 
not affected by the rights of a divorced wife to an 
allotment and an allowance. The wife of a man 
who marries subsequent to enlistment and without 
official permission is not eligible for an allowance. 
Allowances are not payable if the dependents of 
the soldier are maintained in an institution at 
public expense or if they are considered morally 
unworthy to receive public assistance. 

In New Zealand, the allotment varies, not with 
the rank and pay of the soldier but with his family 
responsibilities. The minimum allotment, which 
is required of a single man, is 14s. a week. The 
maximum allotment, required of a man with a wife 
and three or more children, is £4 a week. The 
minimum pay of a mobilized man in New Zealand 
is 7s. a day. Hence the allotments of men with 
heavy family responsibilities may represent a high 
percentage of their pay. 

In Sweden, the wife and children receive a fixed 
allowance irrespective of need and without the 
requirement that the soldier allot a part of his 
pay for their support. A supplement may be 
added to the basic allowances if the family is in 
need. 


Social Security 


re 


In the U.S.S.R., the allowance varies with the 
number of persons in the family and the number 
who are considered to be non-self-supporting. 
The resources of the family are not taken into 
account, nor is the soldier required to contribute 
to their support. 

In all other countries, the allowances are 
granted only subject to a means test. The pro- 
visions of the means test vary from country to 
country. In Belgium, for example, the family 
of the soldier is eligible for an allowance if the 
total income of the family, including that of the 
soldier, is less than the amount which is exempted 
from income tax. Partial allowances are paid if 
the income does not exceed by more than 50 
percent the exempted amount. 

A household means test is applied to all mem- 
bers of the soldier’s family in Germany, and in 
Great Britain to the dependents other than wives 
and children. In both countries, certain types of 
resources are left out of account in administering 
the means test. In Germany a portion of the 
earnings of the dependents is disregarded; so are 
veterans’ pensions, survivors’ pensions, and certain 
other types of income; savings, property, or 
capital owned by the soldier or his family are 
likewise left out of consideration. In Great 
Britain, the following types of income are ex- 
cluded in determining need: the income used for 
the payment of rent; one-fifth of the weekly 
earnings of certain members of the household; 
and a portion of sick pay from a friendly society, 
of health insurance benefits, of veterans’ pensions, 
and of workmen’s compensation. In Switzerland, 
too, a portion of the earnings of the wife is left out 
of account; the earnings of other members of the 
family who live in the household of the soldier 
are counted in full. 

The German law specifies that the family al- 
lowances, although based on a means test, do not 
fall in the class of public relief and are to be ad- 
ministered apart from it. Family allowances are 
not granted if the dependents of the soldier have 
sufficient resources for necessary maintenance. 
Eligible dependents are required to use their 
earning capacity to maintain themselves unless 
they are prevented by age, ill health, lack of 
training, or by household or family responsibilities. 
Formerly, family allowances in Germany were 
subject to the condition that dependents capable 
of earning their living must register at the em- 


Bulletin, April 1941 


ployment office, but a decree issued in October 
1939 canceled this requirement. All members of 
the family must unite their efforts and resources 
to provide necessary maintenance; unduly heavy 
burdens on one member of the family are to be 
avoided. Ascendants and descendants of the 
members of the soldier’s family are relieved from 
their legal responsibility for furnishing support; 
other relatives who are responsible for support 
under German civil law are not relieved from this 
responsibility, but their support is taken into 
account only insofar as it is actually furnished. 

As under the provisions for wives and children, 
the soldier in Great Britain must allot a portion 
of his pay for the support of other dependent 
relatives. If he has no wife and children who are 
eligible for allowances and if, prior to his entry 
into the armed forces, he contributed toward the 
support of his dependent relative an amount which 
he cannot afford to continue during his military 
service, with resultant hardship to the dependent, 
the government then grants assistance to the 
dependent relative. Unless the dependent is 
living alone or as a member of a household without 
any other income, he does not, however, receive 
an allowance if the net weekly income of the 
household, exclusive of rent and certain types of 
income, averages 18s. 6d. or more for each member 
of the household, with children below school age 
counted as half a person each. 

As in the case of family allowances, the al- 
lowances of dependents are discontinued under 
certain conditions—when, for example, the de- 
pendent is in an institution supported by the state 
or is maintained at public expense. Allowances 
are discontinued, also, in case of imprisonment or 
serious misconduct on the part of the dependent, 
and on the dependent’s marriage or remarriage. 

In Canada, as in Great Britain, dependents 
other than wives and children may receive an 
allowance only if they are in need and if the soldier 
allots a part of his pay for their support. Unlike 
the British law, the Canadian provisions do not 
disqualify other dependents if the soldier has a 
wife or children, although allowances are limited 
to three dependents of any one soldier. If he has 
no wife or children, the soldier must assign 15 
days’ pay; otherwise he must assign 5 days’ pay 
in addition to the allotment of 15 days’ pay which 
goes to his wife and children. Allowances may 
be reduced or denied altogether if there are other 





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19 


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ty 





family members at home who should assume 
partial or full responsibility for support. Steady 
income which the dependents receive from any 
source other than the allotment is taken into 
account in fixing the amount of the allowance. 
Allowances are not granted while the dependent 
is maintained in an institution at public expense, 
if he is considered morally unworthy of public 
assistance, and under a few other conditions. 

In Sweden, registration at the employment 
office may be made a prerequisite for the receipt 
of family allowances. 

In Switzerland and Rumania, family allow- 
ances are not payable if the soldier is eligible for 
continuation of his wages. 

If the soldier dies while serving in the armed 
forces, dependents’ allowances in Great Britain 
are continued for 13 weeks after his death. In 
Germany, the allowances are payable after the 
death of the soldier until a survivor’s pension is 
granted under legislation for veterans, or, if the 
death is not the result of a service injury, for a 
period of 3 months. If the soldier is honorably 
discharged from military service and takes up 
employment, the allowances in Germany are 
continued until the first wage payment but for 
not more than 2 weeks after discharge. 

Continuation of pay.—Some of the countries 
which make provision for continuation of pay 
require that the soldier must have served with his 
former employer a certain length of time. For 
example, employees in Greece must have had a 
minimum of one year’s service with the employer 
who is responsible for continuation of pay; if the 
employee has had less than one year’s service with 
this employer, part of the time he spent in other 
establishments is taken into account. In Switzer- 
land, pay is continued for unemployed persons who 
have had 150 days’ service in the year preceding 
entry into the armed forces, while no service 
requirement is imposed on persons who have 
an employment contract at the time of entry. 

Under the law of Rumania, an establishment is 
exempt from the requirement of continuing pay if 
it ceases operation; the worker, to be eligible for 
continued pay, must have had 2 years’ service 
with the establishment and must be married or 
have family responsibilities. In Hungary, the pay 
of salaried employees is continued beyond the 
month of induction only if the employee is not an 
officer and has a family which is destitute. 


Amount 

Family allowances.—The methods of computing 
the family allowances in the various countries are 
set forth in chart 1. Of the five countries— 
Great Britain, Canada, New Zealand, Sweden, and 
the U.S.S.R.—which pay uniform allowances to 
certain classes of dependents without investiga- 
tion of need, two—New Zealand and Sweden— 
pay flat amounts to all dependents. In New 
Zealand the wife and the guardian of motherless 
children receive 3s. a day; the children below age 
16 and the dependent widowed mother receive 
ls. 6d. aday. The soldier’s allotment is added to 
these allowances. Children’s allowances are paid 
to not more than five children. 

In Sweden, the basic allowance for the wife is 
1 crown a day, and for each child 0.40 crown a day. 

In Great Britain, the wife’s allowance increases 
with the rank of the soldier. Wives of soldiers not 
above the rank of sergeant receive 18s. a week; the 
allowance is increased up to 24s. 6d. a week accord- 
ing to the rank of the soldier. Wives living in the 
London postal area receive a special supplement of 
3s.6d.aweek. Allowances for children amount to 
7s. 6d. a week for the first child, 5s. 6d. a week for 
the second child, and 4s. a week for each additional 
child; these children’s allowances do not vary 
with the rank of the soldier. As in New Zealand 
and Canada, the amount allotted by the soldier 
for the support of his family is added to the allow- 
ances. 

The Canadian regulations prescribe only the 
maximum, not the minimum rates which may be 
awarded. As in Great Britain, the allowances 
for the wife, or the soldier’s female relative who 
cares for his children, increase with rank. Wife’s 
allowances amount to $60 a month for officers 
above the rank of major, $55 for majors, $50 for 
captains, $45 for lieutenants and second lieuten- 
ants, $40 for warrant officers, class I, and $35 for 
all other ranks. Children receive $12 a month 
regardless of rank. If the man has no wife and 
no female relative in charge of his home or if the 
wife is incompetent to care for the children, the 
children’s allowances may be increased up to $20 
a month for each of the first two children and a 
total of $48 a month for three or more children; 
this increase is granted only if the children are in 
need. The allowances of all other dependents 
are limited to $30 each for dependents of officers 
above the rank of major, to $25 each for depend- 


Social Security 


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ents of majors, captains, and lieutenants, and to 
$20 each for the dependents of men of lower rank; 
any steady income from any source other than the 
allotment is deducted from the amount of the 
allowance. The divorced or separated wife is not 
eligible to receive more than the amount which her 
husband is obliged to provide for her support 
under the court order or separation agreement; 
the allotment is applied in the first instance to 
provide this amount, and any remaining balance 
may be granted by the government as a depend- 
ent’s allowance up to the maximum monthly 
allowance. If a divorced man has married again, 
his present wife receives the full allowance, al- 
though the allotment of pay may go, in whole or 
in part, to the divorced wife. 

In the U.S.S.R., the allowances vary with the 
composition of the family and the number of 
family members who are considered not to be 
self-supporting, that is, the wife, the children, 
younger brothers and sisters whose parents are 
incapable of work, the father over age 60, the 
mother over age 55, and invalid relatives. The 
allowances are 50 percent lower in rural areas 
than in urban areas. 

In all other countries, allowances are measured 
according to the needs of the dependents; hence 
the amounts shown in chart 1 represent maximum 
allowances payable to dependents without other 
income. In many countries the allowances based 
on & measurement of need vary with the cost-of- 
living area in which the dependents live. Some 
laws stipulate that the amount of the allowance 
must not exceed the loss of income which the 
family has suffered because the breadwinner was 
called to the colors. The characteristics of these 
systems may be illustrated by the provisions in 
effect in Great Britain and Germany. 

In Great Britain the soldier’s allotment of pay 
with respect to a dependent’s allowance must 
equal the amount required for the regular allow- 
ance to wife and children. This allotment for a 
dependent is deducted from the amount of the 
allowance computed on the basis of need and pre- 
vious support. In some cases of men in the 
higher ranks, the allotment may be equal to, or 
greater than, the maximum rate, in which case no 
supplementary allowance is payable. 

The maximum amount of the allowance is 
determined by the average weekly contribution 
which the soldier made toward the support of the 


Bulletin, April 1941 


dependent in the 6 months preceding his induction 


into the armed forces, as follows: Mezinum 


rate of allowance, 
Average weekly contribution including allotment 
9s. but not more than 15s_..................- 13s. 
More than 15s. but not more than 20s____---_-_- 18s. 
| ne ae Ah eS 21s. 6d, 


For a person who lives alone or as a member of a 
household with no other income and who is wholly 
dependent on the soldier, the maximum allowance 
is 25s. a week (including the allotment) provided 
the soldier’s average contribution before he 
entered the army was not less than 24s. a week. 

The allowances must not have the effect of 
raising the average net income of each member 
of the household to which the dependent belongs 
above 20s. a week, or, if the dependent is living 
alone and has income apart from the allowance, 
above 25s. a week. In applying these limits, 
children are counted as half a person each, and 
certain types of income are exempted. 

The German system of family allowances uses 
two methods for computing the amount of allow- 
ance. Under the first method, the country is 
divided into districts on the basis of cost of living, 
and the allowances for dependents are so measured 
as to assure them necessary maintenance. In 
Berlin, for example, the allowance for the wife 
amounts to 64.50 marks a month. Other de- 
pendents over age 16 receive about one-half, 
dependents below age 16 about one-third, of the 
wife’s allowance. 

The allowance of the wife who lived with the 
soldier before his mobilization may be determined 
according to a second method if this method 
results in a higher allowance than that computed 
on the basis of the cost-of-living area. Under this 
second method, the wife’s allowance is computed 
on the basis of the income, exclusive of tax deduc- 
tions and social insurance contributions, which 
the soldier received in the month before joining 
the army. It amounts to 40 marks a month for a 
monthly income between 100 and 110 marks and 
is increased by 4 marks for every additional 10 
marks of income up to an income level of 260 to 
270 marks. For incomes in excess of this sum, 
3 marks are added to the allowance for every 
additional 10 marks of income until the maximum 
allowance of 200 marks a month isreached. Thus, 
the wife’s allowance amounts to approximately 
40 percent of the previous income if this income 
was less than 270 marks; the percentage decreases 


23 








gradually for higher incomes, reaching about 34 
percent of an income of 580 marks a month, and 
decreasing still further for higher incomes. 

The allowances for dependents other than the 
wife are always computed according to the first 
method even if the wife’s allowance is determined 
on the basis of previous income. The law pro- 
vides that, no matter which of the two methods 
is followed, the granting of allowances must not 
have the effect of raising the standard of living of 
the family above that which the family main- 
tained before the breadwinner was mobilized. 

A provision that the family allowance must not 
exceed the amount which the dependents received 
from the soldier before his entrance into military 
service is found in a number of foreign laws, as 
may be seen from chart 1. The Swiss law, for 
example, specifies that the assistance granted by 
the government to families of mobilized men must 
not exceed the prior earnings of the soldier after 
deducting the cost of his maintenance. In the 
case of a married man, the cost of maintenance is 
reckoned at 2 francs a day, or at 1 franc a day if 
his earnings were low and he has a large family; 
the cost of maintenance of an unmarried man is 
taken to be 3 francs a day, or 2 francs a day if his 
earnings were low and he is the sole support of a 
large family. 

Under the law of the Netherlands, the allow- 
ance must not exceed the loss of income actually 
suffered by the dependent in consequence of 
conscription of the breadwinner, or an amount 
considered sufficient for his livelihood, taking into 
account any other income that the dependent may 
have during the period of service of the bread- 
winner. The loss suffered by the dependent 
is deemed to be the amount contributed by the 
soldier before he was called up for active service, 
or—if this amount is not representative of his 
contribution, as in the case of irregular earn- 
ings—the average amount contributed to the 
maintenance of the dependent during the pre- 
ceding year, or an amount computed according to 
such principles as the Minister of Defense may 
determine. 

Continuation of pay.—Ordinarily, continuation 
of pay varies with the family responsibilities of the 
soldier and with the previous salary or wage, but 
in a few systems it is independent of family 
responsibilities and varies only with the prior 
wage. The details may be found in chart 2. 


24 


The provisions of the Swiss law for continuation 
of pay are unique, inasmuch as the allowances are 
measured primarily according to the family 
responsibilities of the soldier rather than his former 
pay. Continuation of pay consists of a household 
allowance, payable to soldiers who are obliged to 
maintain or assist relatives, and of children’s 
allowances. Both types of allowance vary with 
cost-of-living areas. The household allowance js 
increased above the basic amount if the soldier's 
wages exceeded 10 francs a day. The combined 
household and children’s allowances must not 
exceed 12 francs a day, or 80 percent of the soldier’s 
previous wage, or 90 percent if his wage fell below 
6 francs a day. Soldiers who are eligible for con- 
tinuation of pay but who have no family responsi- 
bilities receive a flat amount of 0.50 francs a day, 
In other countries, continuation of pay is more 
closely related to the former salary or wage of the 
soldier. 


Special Allowances 


In addition to the allowances discussed in the 
preceding section, a number of countries grant 
supplementary allowances to meet requirements of 
the dependents for which the regular allowances 
are insufficient. 

In Great Britain, special allowances may be 
granted up to £2 a week for the support of de- 
pendents outside the degree of relationship 
specified for regular allowances, for the payment 
of rent, insurance premiums, educational commit- 
ments, and other obligations. Persons who suffer 
hardship because of deprivation of expected 
support from a man who joined the armed forces 
at the end of his apprenticeship may also receive 
special assistance. These special grants must not 
have the effect of placing the household in a better 
financial position than that which existed before 
the man joined the armed forces. In addition, 
pending the receipt of family or dependents’ 
allowances, temporary assistance is available under 
the law for prevention and relief of distress arising 
out of war. This law is administered by the 
Assistance Board. 

In Germany, the government grants a rent 
allowance to eligible dependents which is measured 
according to the rent actually paid by them. If 
the family owns its home, an allowance for the 
payment of taxes and other charges may be 
granted. If the household cannot be maintained 


Social Security 


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without the help of a domestic servant, an allow- 
ance may be made toward the payment of her 
wages. Allowances may also be paid for the 
education of children; for occupational training 
of dependents who are blind, deaf and dumb, or 
crippled; for meeting the cost of a funeral; and for 
other special needs of the members of the family. 

If prior to conscription the soldier or one of his 
eligible dependents assumed a legal or contractual 
obligation which is appropriate to the family’s 
standard of living, an allowance may be granted 
toward its fulfillment. Special regulations pro- 
vide for the maintenance of life insurance con- 
tracts of mobilized soldiers and their dependents 
through the payment of a reduced premium. If 
the monthly premium exceeds 5 marks but does 
not exceed 240 marks, the insurance is kept in full 
force by payment of one-fourth of the monthly 
premium, but in no case must the payment fall 
below 5marksa month. Ifthe monthly premium 
is less than 5 marks, it is payable in full, as is that 
part of the premium which exceeds 240 marks a 
month. Under the provisions for families of 
mobilized soldiers, the government may grant an 
allowance toward maintenance of life insurance 
contracts up to 60 marks a month. 

Families in receipt of the allowances are eligible 
for maternity care and benefits equivalent to those 
furnished to the dependents of members of sick- 
ness insurance funds. Social insurance rights are 
maintained during periods of military service 
without payment of contributions. The de- 
pendents of soldiers who were members of sick- 
ness insurance funds prior to their mobilization 
remain eligible for medical care and other sickness 
insurance benefits to the same extent as dependents 
of insured persons. 

The German law also authorizes the payment of 
special allowances to assure the continuance or 
preservation of an independent business in handi- 
crafts, farming or forestry, or a liberal profession. 
These special allowances are granted if the mo- 
bilized man is the owner or if he was the manager 
of the business. They may be paid even if the 
mobilized man has no dependents. 

A similar provision is found in the Swedish 
law, under which an allowance is paid when it is 
possible to maintain an independent business by 
engaging wage-paid labor. These allowances are 
restricted to mobilized men who maintained their 
families out of the product of their own labor. 


Bulletin, April 1941 


They may not exceed 200 crowns a month. If 
such an allowance is paid, no family allowance is 
granted to the dependents of the mobilized man. 
In addition, the Swedish law authorizes the pay- 
ment of housing allowances and reimburses needy 
families for the cost of medical treatment and 
hospital care and of transportation to the doctor 
or hospital. Persons who are placed in a difficult 
economic position because of being called up for 
special defense duty may receive a loan of not 
less than 200 nor more than 4,000 crowns. No 
interest is charged on the loans, and they may be 
granted without security. Repayment must be 
made in five annual installments, the first falling 
due a year from the date of the loan. 


Source of Funds 


Family allowances.—In Great Britain, Canada, 
and New Zealand the cost of furnishing support 
for the families of mobilized men is shared by the 
government with the men themselves. In other 
countries, the soldiers are not required to allot a 
fixed portion of their pay for the maintenance of 
dependents. Under some systems, the cost of the 
allowances is shared by the central government 
with the local governments. Thus, under the 
German law, the central government pays four- 
fifths of the benefit expenditures, and the local 
governments pay the remaining fifth and the en- 
tire cost of administration. This allocation of 
costs may be varied during the war. In Sweden, 
the central government bears the whole cost of 
the basic allowances payable to wives and children 
and nine-tenths of the supplementary allowances 
based on need; the localities pay the rest. Under 
the Swiss law, the federal government pays three- 
fourths, the cantons one-fourth, of the expendi- 
tures. 

In some other countries, the total cost of the 
allowances is borne by a central fund. For exam- 
ple, in France, family allowances are paid out of 
a National Solidarity Fund consisting of sums 
held back by employers from their workers’ over- 
time pay, of the yield of a tax on profits of indus- 
trial and commercial enterprises and on earnings 
of workers, and of the income from the national 
lottery. In Bulgaria the proceeds of a special 
income tax are used, and in Rumania the cost is 
met out of the central social insurance fund and 
the unemployment fund. 

Continuation of pay.—In some countries, the 


25 








employers bear the entire cost of continuation of 
pay of mobilized men, while in some others the 
cost is shared by the employers with the workers 
or the government. Usually the employer pays 
the benefit directly to the soldier or to his family, 
but in Italy the employers pay their contributions, 
based on the number of persons employed by them 
and on their total pay roll, into a central fund, 
from which the allowances are paid. 

In Switzerland half the cost of continuation of 
pay is borne by the employers and workers, the 
other half by the federal and cantonal govern- 
ments. Employers pay 2 percent of their pay roll 
and workers 2 percent of their wage or salary until 
the yield of these contributions reaches one-half 
of the allowances currently paid. Since the em- 
ployer usually pays the allowance directly to the 
soldier or to his family, the burden is distributed 
among the employers by means of equalization 
funds. 

The Greek law for continuance of pay makes 
large-scale employers responsible for financing the 
allowances alone. Small manufacturers and crafts- 
men share the cost with the employees who con- 
tinue to work and who contribute in proportion 
to their remuneration. 


Administration 

The family-allowance systems which are based 
on & means test are usually administered by local 
authorities. The German law specifies that the 
provisions must be administered separately from 
relief. Most laws provide for appeals against the 
decision of the local authorities. Under the laws 
for continuance of pay, the former employer usu- 
ally makes the payment to the soldier or to his 
dependents. 

Special interest attaches to the administrative 
arrangements under the British law. Claims for 
wives’ and children’s allowances are ordinarily 
filed by the man himself with the regimental pay- 
master. The wife does not need to file an applica- 
tion except when the normal procedure cannot be 
followed because the man is overseas. Upon 
completion of the claim by the man, a book of 
weekly drafts is sent to the post office which the 
soldier has designated, and a form is sent to the 
wife. When she presents the form, signed by 
herself and witnessed by a responsible person, at 
the post office, she receives the book of drafts, 
which she can cash weekly in advance. 


26 


Claims for allowances of dependents other than 
wives and children must be filed both by the gol. 
dier and his dependent. The soldier must consent 
to the requisite deduction from his pay, and the 
dependent must furnish information necessary for 
the determination of need. Ordinarily, the sol. 
dier obtains the form for filing a claim from his 
commanding officer and forwards the completed 
form to the regimental paymaster. The depend- 
ent obtains the claim form from the post office and 
forwards it to the regimental paymaster. Opn 
receiving a claim either from the man or from the 
dependent, the paymaster communicates with the 
other party, if necessary, and causes the necessary 
investigation of the dependent’s need to be made. 
If the claim is approved, the paymaster sends a 
book of weekly drafts to the post office of the 
dependent’s residence in the same way as for 
wives’ allowances. 

To accelerate the procedure, special arrange- 
ments were instituted in December 1939. Now 
the man may file his claim on behalf of a depend- 
ent at the time of his medical examination. The 
claim is forwarded directly to the local office of 
the Assistance Board at the place where the 
dependent lives, together with a form to be filled 
out by the dependent. After completion of the 
form, the claim is investigated and a report is made 
to the regimental paymaster, who then, if the 
claim is approved, forwards the book of weekly 
drafts to the appropriate post office. 

The provisions for temporary assistance which 
may be granted pending approval of claims for 
family or dependents’ allowances are administered 
by the Assistance Board. 

Claims for special financial assistance are usually 
made by the soldier on a form which he can obtain 
from his regimental paymaster. Under arrange- 
ments in effect since December 1939, such claims 
may be filed at the time of the medical examina- 
tion. Wives and other dependents of men serving 
overseas may file claims for special financial assist- 
ance directly through the offices of the Assistance 
Board. The Board investigates the claim and 
then sends it to the regimental paymaster, who, 
after adding information on the pay of the soldier, 
forwards it to the Ministry of Pensions for decision. 

In Canada, administrative responsibility is 
vested in the Dependents’ Allowance Board, 4 
division of the Department of Defence. The 
Board consists of six members: four representing 


Social Security 


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nsent 
d the 
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the Military Forces, the Navy, the Army (both 
English and French speaking), and the Air Force; 
one representing the Treasury; and one—at pres- 
ent a civilian—appointed by the Minister of 
Defence. All applications for allowances are 
decided by the Board itself. The Board has a 
central office and regional offices, but for its field 
organization it relies on the facilities of two govern- 
mental departments concerned with the welfare of 
war veterans—the Department of Pensions and 
National Health, whose functions correspond 
approximately to those performed by the Veterans 
Administration in this country, and the Soldier 
Settlement Board, responsible for assisting re- 
turned soldiers in settling on the land. If these 
two governmental agencies find their own facilities 
inadequate, they may select a recognized welfare 
agency, either public or voluntary, to conduct 
the investigation necessary to determine the de- 
pendent’s right to an allowance. The social 
agency receives a flat-rate nominal payment for 
each investigation. 

Application for allowances is made by the soldier 
when he enlists, through the paymaster of his 
unit. At the time of application, the soldier 
signs over a part of his pay for the support of his 
dependents. Presentation of marriage or birth 
certificates is sufficient proof that wife or children 
are entitled to allowance, and the allowance, to- 
gether with the allotment, is payable at once. In 
the case of dependents other than wife or children, 
the allotment is payable immediately, and the 
regimental paymaster makes a request for an 
investigation of their dependence on the man and 
their need. The governmental supplementary 
allowance is awarded only after the Board has 
approved the claim on the basis of reports fur- 
nished by one of the cooperating agencies. 

If the soldier fails to claim an allowance on be- 
half of his dependents, they themselves may file 
an application with the Dependents’ Allowance 
Board. The application is referred by the Board 
to the soldier. If he accepts responsibility, appli- 
cation is then made in the usual way. Otherwise 
the Board investigates the facts, and if it is found 
that the dependent is eligible for an allowance the 
soldier is required to assign a part of his pay. 

Appeals against the decision of the Board may 
be made only through official interviewers who are 
designated by the Minister of Defence and are 


Bulletin, April 1941 


either public officials or commissioned officers of 
at least captain’s rank. If the official interviewer 
considers the objections justified, he reports the 
case to the Board, which then reviews its decision. 


List of Sources 


BELGIUM: 

Industrial and Labour Information, Vol. 72, No. 9 (Nov. 
27, 1939), pp. 257-259; Vol. 73, No. 7 (Feb. 12, 1940), p. 
156. 


BULGARIA: 

International Labour Review, Vol. 42, Nos. 2-3 (August- 
September 1940), p. 157. 

Industrial and Labour Information, Vol. 72, No. 10 (Dee. 
4, 1939), p. 284; Vol. 73, No. 13 (Mar. 25, 1940), p. 304. 


CANADA: 

Two typewritten memoranda issued by The Canadian 
Welfare Council in January 1941, entitled as follows: 
“Services auxiliary to the forces, on active service or in 
training and community services caring for dependents of 
the forces,’’ Military Service Memo. I, 5 pp. (typewritten) ; 
“The Administration of Dependents’ Allowances to the 
Military Forces in Canada,”’ Military Service Memo. II, 
18 pp., (typewritten). 

Canada, Department of National Defense, ‘‘Allowances 
for dependents of enlisted men,’’ Canadian active service 
force military and air, Summary of regulations, signed by 
A. Macnamara, Chairman, Dependents’ Allowance Board, 
Sept. 1, 1940, 6 pp., (typewritten). 

Assigned Pay and Dependents Allowance Regulations 
(Extracts from financial regulations and instructions for 
the Canadian active service force as amended to August 21, 
1940), P. C. 2434, Ottawa, J. O. Patenaude, I. 8S. O., 1940, 
35 pp. 

DENMARK: 

Industrial and Labour Information, Vol. 72, No. 4 (Oct. 
23, 1939), p. 120. 

FRANCE: 

International Labour Review, Vol. 40, No. 5 (November 
1939), pp. 677-680; Vol. 42, No. 1 (July 1940), p. 24. 

Industrial and Labour Information, Vol. 72, No. 6 (Nov. 
6, 1939), p. 180; Vol. 73, No. 13 (Mar. 25, 1940), pp. 283- 
284; Vol. 74, No. 3 (Apr. 15, 1940), p. 68. 


GERMANY: 

‘“‘Rinsatz-Familienunterhaltungsgesetz. Vom 26. Juni 
1940.”’ and “Verordnung zur Durchfuehrung and Ergaen- 
zung des Einsatz-Familien-Unterhaltsgesetzes. Vom 26. 
Juni 1940.’’ Reichsversorgungsblatt, 1940, No. 8 (July 5, 
1940), pp. 38-43. 

Reichsarbeitsblatt, Part I, Vol. 19, No. 30 (Oct. 25, 1939), 
pp. I 493-I 495; Part I, Vol. 20, No. 5 (Feb. 15, 1940), p. I 
63; Part I, Vol. 20, No. 15 (May 25, 1940), p. I 248. 

Boberski, ‘‘Der Familienunterhalt im Kriege,’”’ Reichs- 
arbeitsblatt, Part II, Vol. 19, No. 34 (Dee. 5, 1939), pp. 
II 446-449; Part II, Vol. 19, No. 35 (Dee. 15, 1939), pp. 
Il 462-465. 


27 








Fluegge, ‘‘Familienunterhalt in London, Paris und 
Berlin,” Reichsarbeitsblait, Part II, Vol. 19, No. 33 (Nov. 
25, 1939), pp. II 433-434. 


International Labour Review, Vol. 40, No. 5 (November 


1939), pp. 680-683. 

Industrial and Labour Information, Vol. 71, No. 13 (Sept. 
25, 1939), pp. 383-384; Vol. 72, No. 13 (Dec. 25, 1939), 
pp. 353-354. 

Deutsches Arbeitsrecht, Voi. 8, No. 9 (September 1940), 
p. 135. 


GREAT BritAIn: 


Allowances for Families and Dependents of Men Serving 


in H. M. Forces During the Present War, London, H. M. 
Stationery Office, Cmd. 6138, November 1939, 11 pp. 

Special Army Order 170, Sept. 16, 1939, Royal War- 
rant, Introduction of Dependents’ Allowance, London, 
H. M. Stationery Office, 1939, 9 pp. 

Special Army Order 33, Mar. 30, 1940, London, H. M. 
Stationery Office, 1940, 4 pp. 

International Labour Review, Vol. 40, No. 5 (November 
1939), p. 683. 

Industrial and Labour Information, Vol. 72, No. 3 (Oct. 
16, 1939), pp. 86-87; Vol. 72, No. 13 (Dee. 25, 1939), p. 
355; Vol. 74, Nos. 11-13 (June 10-24, 1940), pp. 234-235. 

Monthly Labor Review, Vol. 52, No. 1 (January 1941), 
p. 90. 


GREECE: 

International Labour Review, Vol. 42, No. 1 (July 1940), 
p. 24; Vol. 42, Nos. 2-3 (August-September 1940), p. 118; 
Vol. 43, No. 2 (February 1941), pp. 213-214. 

HunGary: 


International Labour Review, Vol. 41, No. 2 (February 
1940), pp. 169-171. 


28 


ITALY: 

International Labour Review, Vol. 42, No. 1 (July 1940) 
pp. 21-23; Vol. 42, Nos. 2-3 (August-September 1949) 
pp. 114-115. 

NETHERLANDS: 

Industrial and Labour Information, Vol. 73, No. 5 (Jan. 

29, 1940), p. 108. 


New ZEALAND: 

Industrial and Labour Information, Vol. 74, No. 1 (Apr. 
1, 1940), p. 10. 
RUMANIA: 


International Labour Review, Vol. 42, Nos. 2-3 (August- 
September 1940), pp. 116-117. 

Industrial and Labour Information, Vol. 74, No. 2 (Apr. 
8, 1940), p. 44. 
SwEDEN: 

International Labour Review, Vol. 42, Nos. 2—3 (August- 
September 1940), pp. 155-156; Vol. 43, No. 3 (March 
1941), pp. 341-342. 


SwITZERLAND: 


International Labour Review, Vol. 40, No. 5 (November 
1939), pp. 685-687; Vol. 42, No. 1 (July 1940), pp. 
25-26. 

Industrial and Labour Information, Vol. 72, No. 2 (Oct. 
9, 1939), pp. 55-56; Vol. 72, No. 9 (Nov. 27, 1939), p. 260; 
Vol. 73, No. 6 (Feb. 5, 1940), pp. 129-132. 

U.S. S. R.: 


Industrial and Labour Information, Vol. 72, No. 9 (Nov. 
27, 1939), pp. 259-260. 
YUGOSLAVIA: 


Industrial and Labour Information, Vol. 73, No. 3 (Jan. 
15, 1940), p. 60. 


Social Security 


940), 
940), 


Jan, 


Apr. 


‘ust- 


Apr. 


ust- 
ireh 


ber 
pp. 


Jet. 
60; 


OV. 


AN. 


Benefits and Beneficiaries Under the Civil 
Service Retirement Act 


Ruta REtTIcKER* 


The Civil Service Retirement Act of 1920 established the first Federal contributory retirement 
system for civilian employees. In its twenty years of operation, the civil-service retirement program 
has reached a maturity which the retirement systems established by the Railroad Retirement Act 
and the Social Security Act will not attain for years to come. Because all programs offering pro- 


tection to aged or disabled workers are of significance to students of social insurance, 


B. in 


presents this summary of the historical development of the Civil Service Retirement Act and the 
present status of benefits and beneficiaries under that act, to serve as a background for the continuing 


presentation of data on the operation of the act. 


Tue Civit Service Retrrement Act is designed 
to provide retirement benefits for aged and dis- 
abled Federal employees. Like the Railroad Re- 
tirement Act and many other public retirement 
systems, it aims also to retire superannuated 
employees for the good of the service. This latter 
purpose had been discussed as early as President 
Monroe’s administration, 125 years ago, when the 
Secretary of War protested against his “octo- 
genarian department.” 

During the first 40 years of its existence, the 
machinery of the Federal Government operated 
with so few removals of subordinate officials and 
employees that President Jackson found many of 
them grown old in the service and removed them 
on charges of inefficiency. The Four Year Tenure 
of Office Act of 1820 was extended beyond its 
original purpose—that of compelling the regular 
submission of accounts from office holders handling 
public funds—to form the basis for rotations in 
office in the era of the spoils system, at its height 
during 1829-61. Even so, in 1845 a House com- 
mittee report protested that under the system 
then existing “the list of officers becomes a pension 
roll” and described the detrimental effect of super- 
annuation on the efficiency of the Federal service. 
To eliminate the reduction of efficiency through 
retention of employees whose abilities had been 
reduced by age, it proposed not a retirement 
system for aged employees but rather short terms 
of office for employees of all ages—in other words, 
extension of spoils-system rotation. 


*Bureau of Research and Statistics, Division of Coordination Studies. 
The cooperation of the Civil Service Commission in furnishing data for 
incorporation in this article and in the social insurance series (pp. 92-97) is 
gratefully acknowledged 


Bulletin, April 1941 


Civil-service reform laws providing for com- 
petitive examination and nonpolitical appoint- 
ments have been proposed since 1865. Foreign 
experience was studied as early as 1868 by a joint 
select committee on retirement headed by Repre- 
sentative Thomas Allen Jenckes of Rhode Island. 
The Civil Service Act, passed in 1883 after the 
death of President Garfield at the hands of a 
disappointed office seeker, led to further discussion 
of the problems of retirement. Surveys of super- 
annuation in the Federal service were made in 
1893, 1900, 1902, and 1903; and beginning in 
1899 the Civil Service Commission in its annual 
reports recommended the adoption of a retire- 
ment system financed in whole or in part by de- 
ductions from employees’ salaries. As early as 
1900, clerks in Washington had formed a United 
States Civil Service Retirement Association to 
work for a retirement act, but they did not unite 
in advocating a contributory plan until 1917. 
Passage of the retirement act waited until the 
period following the World War, when great reduc- 
tions had to be made in the Federal civil forces. 

The Civil Service Retirement Act of 1920 pro- 
vided contributory old-age benefits for employees 
in service thereafter. To take care of aged 
employees in service at the time the act became 
law, it provided what were essentially old-age 
pensions for those at or nearing retirement age. 
Almost 6,000 employees were retired for age on 
August 20, 1920. Since deductions from salaries 
were effective August 1, they had contributed only 
2% percent of 20 days’ pay. The minimum 
amount payable to those then retired was $180 
per year, the maximum $720; the exact amount 
for any individual depended on salary and length 


29 








of service. The annuities of employees retiring 
in the succeeding two decades have been varying 
combinations of contributory old-age benefits and 
noncontributory grants. 

As now amended, the act provides for compul- 
sory' retirement of employees who have attained 
retirement age and have served at least 15 years, 
voluntary retirement 2 years before the statutory 
retirement age for employees with 30 years of 
service, and disability retirement after 5 years of 
service. Employees 45 years of age or over who 
are involuntarily separated from the service (not 
for cause) after 15 years of service may elect a 
deferred annuity beginning at the regular retire- 
ment age; a reduced annuity beginning at age 55 
or at separation, whichever is later; or a refund of 
total contributions and interest. 

The statutory retirement age varies with the 
occupation of the employee. Those engaged in 
particularly arduous or hazardous work, such as 
laborers and mechanics in navy yards, railway mail 
clerks, and employees who have served 15 years 


1 The law allows the President, by executive order, to exempt any person 
from automatic retirement, usually for a period of 1 year, ifin his judgment the 
public interest would be best served by the employee's retention. Such 
extensions have been relatively few. 


in the tropics, retire at 62. Letter carriers, post- 
office clerks, mechanics and laborers other than in 
navy yards, and employees of the Indian Service at 
large, except clerks, retire at 65. All other covered 
employees, comprising the clerical, technical, and 
administrative groups in the departments and 
independent establishments, retire at 70. 


Coverage 


On June 30, 1940, the Civil Service Retirement 
Act covered approximately 645,000 employees, 
principally in the classified civil service of the 
executive branch of the United States Govern- 
ment, but including also regular employees of the 
District of Columbia municipal government;? 
certain specified nonclassified Federal employees 
such as employees of the Library of Congress 
and of the Architect of the Capitol are also 
included, as well as unclassified employees “‘ whose 
tenure of employment is not intermittent or of 
uncertain duration.’’ Employees in the legislative 
branch and officers and employees of courts of the 
United States may be covered by giving written 
notice of the desire for coverage. 


+ Excluding policemen, firemen, and teachers who are covered by special 
systems. 


Table 1.—Employees in the classified civil service, annuitants on the roll of the civil-service retirement system, and 
average annuity, by department or establishment, June 30, 1940 





Classified civil service, 


executive branch of | _ 


Federal Government 























Civil-service annuitants 
| ; = : | ay a 














. Sex Statutory retirement age 
Department or establishment ! irs | . " Ree. 
| Percentage | Number | age dis- | | poe 
| Number | distribu- \tribution| rae | Female | _ © 65 70 meme 
| tion ee _— | years | years years 
| eee 726, 827 | 100. 0 62,027 | 7100.0 | 4,007 | 7,030} 11,385 | 37,217 | 13,458 $965 
Post Office Department - 291, 153 | 40.1| 35,308/ 57.9| 33,813| 1,585| 4,4890| 27,751| 3,167 1, 049 
Navy Department._____ 110, 902 | 15.3 7, 597 12.4| 7,347 250 | 5,847 988 762 845 
T Department 39, 277 5.4 4, 724 7.7 | 3, 180 1, 544 37 1, 775 2,912 914 
EEE 109, 195 15.0 4, 446 | 7.3 | 3, 955 | 491 165 | 2, 904 1, 287 812 
Interior Department.___- 21, 148 29| 2143} 35| 1,276 867 34} 1,285 824 71 
Veterans Administration 37, 831 5.2 1, 694 | 2.8 | 870 | 824 | 5 340 1, 349 681 
Agriculture Department. 33, 480 4.6 1, 508 | 2.6 1, 313 285 | 705 | 135 758 9&2 
Government Printing Office___. 5, 750 8 1, 171 | 1.9 | 882 | 289 | | 1,064 107 Os 
Commerce Department. - 16, 765 2.3 694 | 1.1 | 448 | 246 7 | 98 5R9 970 
District of Columbia Government ia aig 677 (3) 587 | W | 1 | 387 289 791 
| 
Labor Department._______. 2,995 | 4) 359 | .6 | 298 | 61 8 | 63 | 288 O64 
General Accounting Office__. 2, 213 + 293 | yy 167 | 126 | 11 282 97 
Justice Department... .-. ih aeiaiipesinain 9, 464 1.3 290 | 5 | 231 | 59 | 57 17 216 848 
Interstate Commerce Commission... ..-...--.- 2, 736 .4 100 2) 91 | 9 100 958 
Li of Congress... __._. ALS? EE TE, KD : 9) | 35 56 a 63 | 831 
Architect of the Capitol... __- : . 8s; 6) 49 40 74 | 15 7 
Smithsonian Institution... .. 586 a 87 4 66 21 1 40 46 ANY 
Teen enawbanaad 1, 379 ‘2 69 | 4 44 25 5 1 | 63 861 
Civil Service Commission -- -- 747 4 43 | 1! 30 13 1 1 | 41 1, 121 
House of Representatives ; 31; 20 | 11 | 4) 27 681 
Judiciary .......... , 25 (3) 18 | 7 | 1 24 1, 039 
Federal Trade Commission 336 | (3) 22 (3) 16 | 6 | 3 19 | 1,017 
ickintetenhectubes : iicdiliaiehh 19; @) | 16 | | = 9 | 10 7 
Pe icidbtiscasenene<- 38, 870 | 5.3 367 | 6 245 | 122 1 149 | 217 7 
' | | 
1 In order of annuitants on the roll. Source: U. 8. Civil Service Commission, 57th Annual Report, fiscal year 


on annuitants in the executive branch only, totaling 61,095, for 
a data on classified civil service. 
than 0.05. 


1F 
com 
q 


30 


ended June 30, 1940, p. 136, table 10; Retirement Report, fiscal year ended 
June 30, 1940. 


Social Security 


Ost- 
n in 
é at 
Ted 
and 
ind 


ent 
eS 
the 
mn- 
he 
t-? 
eg 
83 
So 
se 
of 
ve 

he 

‘Nn 


—— Se Ne Sheen wo | & 


SS ee 


During its first year of operation, more than 
300,000 Government workers were brought under 
the act of 1920. Since that time the number of 
covered employees has generally increased, though 
there have been some fluctuations downward at 
times of reduction of force among civil employees 
in the 1920’s and early 1930’s (chart 1). In fact, 
from 1930 to 1933 the covered group decreased 
more rapidly than the total service. 

After a year of operation, 58.7 percent of the 
civil employees in the executive branch of the 
Government were subject to the retirement act. 
The percentage covered increased to 72.9 in 1925 
and remained above 71 percent through 1930. 
After 1933, when large numbers of emergency 
workers were brought into Government service, 
the percentage of covered workers declined- 
to 60.3 in 1935. Beginning in 1938 the covered 
group expanded more rapidly than the total civil 
service, and the percentage covered increased 
again—to 64.3 percent in June 1940. Even so, 
approximately 358,000 civil employees in the 
executive branch of the Federal Government 
were not covered by the civil-service retirement 
system or by the special systems administered 
separately for other groups of Federal employees.* 

About half the employees covered on June 30, 
1940, were in the 65-year retirement group, one- 
third in the 70-year group, and less than one-sixth 
in the 62-year group. 

No data are available concerning the distribu- 
tion of covered employees by Government depart- 
ments. In general it parallels the distribution of 
the classified civil service, shown in table 1 for 
June 1940. At that time some 80,000 employees 
in the classified service were not covered by the 
retirement system. This group included tem- 
porary employees in classified positions and em- 
ployees who failed in noncompetitive examinations 
when their jobs were classified but continued with- 
out status. In some departments there are special 
groups without retirement status, such as tempo- 


) Separate retirement systems not under the Civil Service Commission 
have been established for several specified groups of Government employees. 
The Foreign Service of the State Department, the Examining Division of 
the Office of the Comptroller of the Currency, employees of the Tennessee 


Valley Authority and of the Federal Reserve Banks, public school teachers 
and police and firemen of the District of Columbia, and civilian teachers of 
the U. S. Naval Academy are protected by special contributory systems. 
Noncontributory systems provide retired pay for judges of the United States 
courts, justices of the Supreme Court, and the Hawaiian judiciary; for the 
employees of the Lighthouse Service (consolidated with the United States 
Coast Guard); and for members of the various military services, including the 
Army and Navy Nurse Corps and commissioned officers of the Public 
Health Service and of the Coast and Geodetic Survey. 


Bulletin, April 1941 
310125—41——3 


Chart 1.—Employees covered by the Civil Service 
Retirement Act, and total civil employees in the 
executive branch of the United States Government, 
fiscal years ended 1921-40 


[Ratio seale] 




































THOUSANDS 
1000, ———__—_—_ — —_—_——_—_— 
300 + 
800- antiandinnstiié 
700 —— 
| TOTAL CiVi. EMPLOYEES 
600+— A 
| a 
500 — a 
| ~ 
400} ———— ee ae 
ow” ld 
| ———* EMPLOYEES COVERED 
or BY RETIREMENT ACT 
200 _ 
| 
| 
100 a Se = ] a | ae aS as 
1921 1925 1930 1935 1940 


Source: U. S. Civil Service Commission, Retirement Report, fiscal year 
ended June 30, 1940. 


rary substitutes in the post-office service and 
non-civil-service employees from WPA allotments 
continued in classified positions in the Navy and 
other departments by special enactment. 

Of the classified civil service as of June 30, 1940, 
more than 290,000 employees, or 40 percent of 
the total, were Post Office Department employees, 
and the Navy and War Departments each account- 
ed for approximately 110,000, or 15 percent of the 
total. Employment in these latter departments 
is increasing rapidly and is expected to double by 
the end of the current fiscal year.‘ 

In addition to the Civil Service Retirement Act, 
the Civil Service Commission administers two 
other retirement acts covering United States 
citizens employed on the Isthmus of Panama by 
the Panama Canal or Panama Railroad Company 
and for those employed in Alaska by the Alaska 
Railroad. These special acts provide earlier 
retirement and more liberal annuities to compen- 
sate for the special hazards of these employments. 
The number of employees covered under these 
two acts has never exceeded 5,600. 


Administration and Financing 


When the Civil Service Retirement Act became 
law in 1920, its administration was assigned to the 
Commissioner of Pensions under the Secretary of 


‘Flemming, Arthur 8., ““Emergency Aspects of Civil Service,” Public 
Administration Review, Vol. I, No. 1, Autumn 1940, p. 25, 


31 








the Interior, while the Civil Service Commission 
was required to “keep a record of essential infor- 
mation concerning individual service and to fur- 
nish the Commissioner of Pensions such reports 
therefrom as he shall request.”” In 1930, with the 
consolidation of the Pension Office and the Vet- 
erans Bureau, the administration of civil-service 
retirement was transferred to the newly created 
Veterans Administration. Since September 1934 
responsibility for administration as well as record- 
keeping and actuarial work® has been centered in 
the Civil Service Commission. 

Benefit payments under the Civil Service Retire- 
ment Act are financed by contributions of the 
employees and of the Government as employer. 
All employees covered by the act are required to 
contribute 3% percent of their salaries (2% percent 
prior to July 1, 1926) to the retirement fund. 
Deductions are made automatically at the time 
the salary is paid. In addition, employees may 


§ Until 1933, the actuarial work was performed by the U. S. Bureau of 
Efficiency in cooperation with the Board of Actuaries of the civil-service 
retirement and disability fund and the two related funds. 


make optional service-credit deposits, with inter. 
est, for service outside the Civil Service Retire. 
ment Act which is later included within it by act of 
Congress or executive order or which is later 
credited toward retirement because the individual 
personally obtains a retirement status in a later 
job. Redeposit of deductions withdrawn by an 
employee who leaves the service is required, if he 
returns to service, as a prerequisite to eligibility for 
retirement benefits. Such redeposits may be 
made, without interest, on the date he reenters 
Government service or with compound interest at 
4 percent at any time before retirement age. 

The Government allowance toward each 
annuity is determined by the formula for compu- 
tation of benefits, described below. Although the 
Civil Service Retirement Act requires no specific 
Government payments into the retirement fund, 
the implication of the act is that the Government 
will make up the difference between the contribu- 
tions of the employees and the amount needed to 
maintain the fund, and also that the Government 


Table 2.—Receipts, disbursements, and status of the civil-service retirement and disability fund, fiscal years 
1921-40 


{In thousands] 





























Receipts Disbursements 
| aa 7 Fae ‘4 Balance in 
Fiscal year ended June 30 | Deduction | srg Adjustments | {und June 
Total ! a 7 Interest | Appsopeie- | Total' | Annuities? | Refunds and trans- - 
deposits ? | er 
ee $1, 157, 885 $537, 872 | $152, 719 | * $467, 293 $604, 763 | $508, 271 $95, 133 $1, 359 
12, 586 12, 524 62 2,914 | 2, 591 323 $9, 673 
14, 682 14, 095 587 6, 391 4, 188 2, 203 17, 964 
15, 156 14, 174 |  ) Saas 7,741 4, 964 2, 786 9 25, 379 
16, 642 15, 158 - 4 Sera 8, 552 5, 695 2, 864 7 33, 469 
20, 029 17, 999 _ | NEA 9, 028 6, 239 | 2,713 7 44, 470 
20, 174 17, 969 2, 205 |. Eide 10, 182 6, 767 | 3, 444 2 54, 461 
27, 168 24, 356 2,813 |... : 13, 395 9, 598 3, 862 fit 68, 235 
29, 503 26, 455 | ri 14, 752 10, 990 | 3, 771 9 82, O85 
52, 520 28, 123 4, 447 19, 950 16, 063 12, 005 4, 067 10 119, 442 
55, 447 29, 048 5, 899 20, 500 18, 126 13, 108 | 5, 049 30 156, 763 
j | 
58, 277 29, 944 7, 332 21, 000 23, 992 19, 860 4, 160 23 191, 047 
61, 479 31, 890 8, 589 21, 000 | 28, 938 | 23, 546 | 3, 924 5 1, 468 223, 588 
61, 246 30, 494 9, 752 21, 000 34, 838 | 30, 048 | 4, 789 249, 997 
, 222 28, 703 10, 518 21, 000 47, 657 39, 621 8, 036 262, 562 
61, 912 30, 089 10, 823 21, 000 52,7 46, 971 5,773 |_- 271, 730 
84, 268 32, 405 11, 713 40, 150 56, 709 50, 243 6, 466 | 299, 289 
94, 203 34, 990 13, 013 , 200 59, 132 51, 901 7, 228 | ¢3 334, 360 
127, 193 37, 322 16, 636 73, 235 62, 476 54, 153 8, 322 399, 077 
133, 497 39, 189 19, 220 75, O87 | 63, 818 56, 531 | 7, 287 ; 468, 755 
151, 682 1 42,945 ? 2f, 565 87, 172 67, 315 | 59, 252 8, 063 553, 122 














1 Totals, including balances, are rounded sums of unrounded figures, not 
sums of rounded presented. é 

1 See text, pp. . for explanation of optional service-credit deposits, man- 
datory redeposits, and voluntary deposits. 

3 Include accrued annuities at death of annuitant, paid to survivors. 

‘Re it refunds of deposits with interest to separated employees and 
to beneficiaries or estates of employees deceased in active service 

of unexpended balances of deceased annuitants to their bene- 
. See also p. 38, table 5, and p. 96, table 4. 

§ In 1925, item re in 
transfer to Canal 
and $153,077 interest of employees placed under the C 


ts terest paid in purchase of bonds; in 1932, 
ine retirement and ofeatlity fund of $1,314,724 deductions 
anal Zone Retirement 


Act; in 1937 transfer to Alaska Railroad retirement and disability fund of 
contributions of Department of Interior employees placed under the Alaska 

ailr Retirement Act. Other amounts are minus items for cancelations 
and repayments; since 1931, cancelations and repayments have been deducted 
from annuities and refunds. : 

* Includes $3,878,280, transferred from appropriations of District of Colum- 
bia government, to cover retirement liability for District employees. : 

? fneludes $246,075 voluntary deposits for purchase of additional annuities 
and $246 interest on those deposits under amendment effective Jan. 1, 1940. 


Source: U. 8. Civil Service Commission, 57th Annual Report, fiscal year 
ended June 30, 1940, p. 142, table 16. 


Social Security 


er 
ire- 
, of 


os 


JF SSNS S&S GF he moe 


Sr eS = 


will meet the accrued liability for service rendered 
before the system was adopted. The Civil 
Service Commission is required to submit to the 
Bureau of the Budget each year “estimates of the 
appropriations necessary to finance the retire- 
ment and disability fund and to continue this act 
in full force and effect.” 

Deductions from pay of employees at the 2%- 
percent rate increased from $12.5 million in the 
fiscal year 1920-21 to $18.0 million in 1925-26 
(table 2). At the 3!s-percent rate, such deduc- 
tions have ranged from $24.4 million in 1926-27 
to $42.9 million in 1939-40, and interest on the 
deposits has increased to $21.6 million. Annual 
disbursements increased from $2.9 million in 
1920-21 to $67.3 million in 1939-40. Benefits 
were paid out of employee contributions and 
interest until the fiscal year 1928-29, when 
Congress appropriated $20.0 million to the civil- 
service retirement and disability fund. Appro- 
priations for the fiscal year 1939-40 totaled $87.2 
million; for the 12 years ended June 30, 1940, 
$467.3 million. The balance in the fund has 
increased from $9.7 million as of June 30, 1921, to 
$553.1 million as of June 30, 1940. 

While the fund was set up on an actuarial- 
reserve basis, it does not have all the assets 
required for such a basis, because of the fact 
that appropriations were not made by Congress to 
meet the deficiency cost, i. e., the cost of accrued 
liability for service before the act was passed, for 
which the Government is responsible. According 
to the latest report of the Board of Actuaries,° the 
normal cost to support the benefits accruing on 
account of current service is 6.14 percent of pay 
roll, 2.64 percent of which is the Government’s 
share. However, the cost due to accrued liability 
was 5.81 percent of the estimated pay roll on 
June 30, 1939. Therefore, the total annual Gov- 
ernment contribution which the Board of Actuaries 
recommended was 8.45 percent of pay roll or $101 
million in 1939. It is of interest that the total 
cost—11.95 percent of pay roll for all employees— 
varies from 14.75 percent for employees having a 
normal retirement age of 62, to 8.39 percent for 
those with a retirement age of 70. 

An individual account is maintained for each 
employee subject to the provisions of the retire- 
ment act. The amount deducted from salary, 





* Nineteenth Annual Report of the Board of Actuaries of the Civil Service and 
Disability Fund for the fiscal year ended June 30, 1939, p. 7. 


Bulletin, April 1941 


less a charge of $1 for each month in the service 
since July 1, 1930, plus accumulated interest at 4 
percent, represents the employee’s accumulation 
for the purchase of an annuity. The $1 per 
month, called tontine,’ becomes a part of the gen- 
eral civil-service retirement and disability fund 
from which is paid the Government’s share of each 
annuity, as explained in the discussion of benefit 
formula below. The employee’s accumulations 
plus interest—but not the tontine—are returned 
to any employee who resigns or who is removed 
for cause. Tontine plus accumulated interest is 
included in the refunds to an employee who is 
involuntarily separated (not for cause) or to the 
beneficiary of an employee who dies in active 
service. No part of employees’ contributions is 
used for administrative expenses; such costs are 
met from appropriations for salaries and expenses 
of the Civil Service Commission. 

An amendment effective January 1, 1940, pro- 
vides for voluntary deposits in multiples of $25, 
not to exceed 10 percent of total basic salary since 
August 1, 1920, for the purchase of additional 
annuity. Such deposits draw interest at 3 per- 
cent—1 percent less than the interest on manda- 
tory deductions. The full amount of voluntary 
deposits and interest is returned to any employee 
leaving the service. Within the first 6 months of 
the effective date of this amendment, 450 em- 
ployees deposited a quarter of a million dollars for 
this purpose. 


The Benefit Formula 


Benefits under the Civil Service Retirement 
Act are heavily weighted in favor of low-paid 
employees. Under the benefit formula of the 1930 
amendments, this result is accomplished mainly 
by an allowance for each year of service, largely 
independent of salary, under two different for- 
mulas. Plan I is called the purchasable plan, be- 
cause the Government’s allowance for years of 
service is supplemented by the annuity purchas- 
able with the employee’s contributions. An alter- 
native Plan II, called the guaranteed-minimum 
annuity, was provided to be used whenever it 
would yield a larger annuity than PlanI. It does 
not provide a flat rate of annuity, because the 

? The word “‘tontine” is derived from the name of Lorenzo Tonti, an Italian 
banker of the 17th century, who developed a system of collective benefits 
based on the principle of forfeiture to a common fund, with individual profits 


increasing as the number of survivors diminished and the final survivor 
taking the whole. The term is not used in the Civil Service Retirement Act. 


33 





amount varies at wage levels under $1,600 per year 
and with service of less than 30 years. 

For an annuitant at retirement age (or at 
optional retirement with 30 years’ service), the 
purchasable plan allows, as the Government’s 
share, an annuity of $30 for each year of service ° 


§ The Government allowance for an employee eligible for an annuity 
covers all years of Federal service, whether classified or otherwise, and 
whether or not the employee has made voluntary deposits for any period of 
unclassified service to increase his purchasable aanuity. 


Table 3.—Accumulations of salary deductions and civil-service retirement annuities payable at age 
feiture basis to male employees who entered service on or after July 1, 1930, for specified years 


annual salary 


not exceeding 30 (provided that this portion of the 
annuity does not exceed three-fourths of the 
highest average basic annual salary during any 5 
consecutive years of service). This basic amount 
is supplemented by the amount of annuity pur. 
chasable with the sum in the employee’s individual] 
account, together with interest at 4 percent, 
compounded annually. 

The purchasable annuity varies with the sex 


70 on nonfor- 
of service, by 





Years of service 


















































Annual ; 2 ee cima — 

salary | Accumulations ? and annuity ; —— 

15 20 25 30 35 40) 45 50 
$1, 260 | Accumulations $655. 66 $975.06 | $1,363.66 | $1,836. 44 $2,411.67 | $3,111.51 $3, 962. 98 $4, 998. 93 
Annuity—Total 513. 92 695. 05 882. 04 1, 079. 02 1, 135. 10 1, 203. 32 1, 286. 33 1, 387. 32 
Employee 63. 92 95. 05 132. 94 179.02 | 235.10 303. 32 386. 33 487.32 
Government 450. 00 600. 00 750. 00 900. 00 900. 00 900. 00 900, 900. 00 
1,440 | Accumulations 784. 33 1, 166. 41 & 631. 27 2, 196. 85 2, 884. 96 3, 722. 15 4, 740. 72 5, 979. 97 
| Annuity—Total * 540. 00 4720. 00 909. 02; 41,114.16 1, 181. 24 1, 262. 85 1, 362. 15 1, 482. 6 
| Employee 76. 46 113.71 15 9. 02 214. 16 281. 24 362. 85 462. 1 582. 6 
| Government. - 463. 54 606 ca 750. 00 900. 00 900. 00 900. 00 900. 00 900. 0 
1,620 | Accumulations__. 913. 00 1, 357. 77 1, 898. 89 2, 557. 25 3, 358. 25 4, 332. 78 18. 45 6, 961. Ol 
Annuity—Total * 600. 00 4800.00 41,000.00 | 41, 200.00 1, 227. 38 1, 322. 38 1, 437. 96 1, 578. 59 
| Employee. 89. 00 132. 36 185. 11 249. 29 327. 38 22. 38 537. 678. 50 
| Government 511.00 667. 64 514.89 9). 71 900. 00 YOO. 00 900. 00 900. 00 
2,000 | Accumulations 1, 184. 64 1, 761.74 2, 463. 86 | 3, 318 10 4, 357. 41 5, 621. 9O 7, 160. 34 9, 032. 09 
Annuity—Total 4 600. 00 *800.00 41,000.00 1, 223. 46 1, 324. 78 1, 448. 05 1, 598. 02 1, 780. 49 
| Employee 115. 48 171. 74 240.19 | 323. 46 424.78 548. 05 698. 02 S80) # 
| Government 454. 52 628. 26 759. 81 | 900. 00 900. 00 900. 00 100. 00 900. 00 
2,600 | Accumulations 1, 613. 55 2, 399. 59} 3,355.92) 4,519 “4 | 5,935. 05 7, 657. 35 9, 752. 79 12, 302. 22 
| Annuity—Total 607. 30 833. 92 1, O77. 15 1, 340. 58 | 1, 478.5 1, 646. 47 1, 901. 530 2, 308. 56 
Salve eee Se eeettet) Ee lees ’ a nas 
Employee i 157. 30 233. 92 327.15 | 440. 58 578. 58 746. 47 150. 75 1, 199. B 
Government | 450. 00 600. 00 750. 00 | 900. 00 900. 00 900. 00 I). 75 1, 19.2 
3,200 Accumulations 2, 042. 45 3, 037. 44 4, 247. 97 5, 720. 78 7, 512. 68 9, 692. 79 12, 345. 24 15, 572. 35 
Annuity—T otal 49. 11 896. 10 1, 164. 11 4 457. 69 1, 632. 37 1, S89. SO 2, 406. 04 3, 036. 14 
| Employee 199. 11 296. 10 414. 7 557. 69 732. 37 944. W 1, 203. 47 1, 518.07 
| Government 450. 00 | 600. 00 750. 00 900.00 | 900. 00 $944.90 | 51,203.47 $1, 518.07 
3,800 | Accumulations_. 2, 471. 36 3, 675. 28 5, 140. 03 6, 922. 12 9, 090. 31 11, 728. 24 14, 937. 69 18, 842. 8 
Annuity—Total 690.92 | 958. 28 1, 251. 07 1, 574. 80 1, 786. 17 2, 286. 66 2, 912. 40 3, 673. 72 
Employee 240. 92 | 358. 28 501. 07 674. 80 886. 17 1, 143. 33 1, 456. 20 1, 836. 86 
Government 450. 00 600. 00 750. 00 900. 00 900. 00 $1, 143. 33 51, 456. 20 5 1, 836. 86 
4,600 | Accumulations ...--| 3,043.23 | 4,525.75 | 6,329.44 | 8,523.91 | 11,193.82 | 14,442.17! 18,394.30) 23,202.65 
Annuity—Total_- 746. 67 1,041.19 1, 367. 02 1, 730. 95 2, 182. 46 2, 815. 78 3, 586. 34 4, 523. 82 
Employee 206. 67 441. ‘19 617.02 830 95 1, 091. 23 1, 407. 89 1, 793. 17 2, 261. 91 
Government 450. 00 600. 00 750. 00 900.00 | 51,001.23 | $1,407.89 41,793.17 2, 261. 91 
5,600 | Accumulations___-. | 3, 758.08 5, 588. 83 7, 816. 20 10, 526. 14 13, 823. 21 17, 834.58 | 22,715.05 28, 652. 87 
Annuity—Total -| 816. 36 1, 144. 83 1, 523. 92 2, 052. 28 2, 695. 10 3, 477. 20 428.74 5, 586. 44 
Employee 366. 36 544. 83 761. 96 1, 026. 14 - 347. 55 1, 738. 60 2, 214. 37 2, 793 3.22 
Government 450. 00 600. 00 5 761. 96 51,026.14 § 1, 347. 55 5 1, 738. 60 2, 214. 37 5 2, 793. 22 
‘ Total annuity computed by Plan II, guaranteed-minimum annuity. All 


! Fixed emery Be entire period of service or equivalent. 

* Accumulations are figured at 34 percent of salary less $1 a month plus 
interest at 4 percent, on basis of act as amended May 29, 1930. 

3 Employee annuity is figured by factor .0974849 effective Feb. 1, 1940, for 
age annuities and optional 30-year service retirement. Different factors are 
used for disability annuities. Comparable annuities for women would be 
less, because figured by factor .0876271. If employee elects to receive a single 
life annuity witb fetliee to fund of any balance to his credit at time of death, 
annuity would be larger. 


34 


other annuities figured under Plan I which gives larger annuities under con- 
ditions specified. 

§’ Government annuity, 
ing to 1939 amendment. 


equal to employee’s purchasable annuity, accord- 


Source: U, 8. Civil Service Commission, Retirement Division, Actuarial 


Section. 


Social Security 


of the 
f the 
any 5 
nount 
- pur. 
‘idual 
‘cent, 


P sex 


ne for. 


re, by 


, 998. 93 
, 387. 32 


487. 32 
900. 00 


979. 97 
482. 96 
582. 9 
900. 00 


961. 01 
578. 59 


678. 50 
900. 00 


32. 09 
"80. 49 


80), 49 
100. 00 


02. 22 
8. 56 


WO. 28 
99. 28 


72. 35 
6. 14 


18. 07 
8. 07 


2. 48 


and corresponding life expectancy of the annuitant 
and with the election of a forfeiture or nonfor- 
feiture type of annuity. For a man with the 
minimum requirement of 15 years of service (after 
1930) and a salary of $1,260 per year, this formula 
yields a nonforfeiture annuity at retirement age 
70° of $513.92 (table 3); for a woman, $507.45; 
$450 of each amount is the Government allow- 
ance. Since only the purchasable part of the 
annuity increases with the salary grade, the annu- 
ity for a man with 15 years of service and a 
salary of $4,600 would be only $746.67, while for 
one at the $5,600 a year level it would be $816.36. 
On the other hand, a man who had an annual 
salary of $2,000 but who had 30 years’ service 
would be eligible for $1,223.46 at the time of his 
retirement. 

The weighting of the Government annuity, and 
hence of the total annuity, for years of service may 
be seen from the following tabulation of the 
annuities payable to men retiring at age 70, with 
approximately the same amount of accumulations 
for the purchase of annuities, but with varying 
salary and service records: 








Tours Total ac- Total an- Purchas- Govern- 

Annual salary) . pe . cumula- ; lew able an- ment an- 
_— tions ! ened nuity nuity 

$5,600 15 $3, 758. 08 $816. 36 $366. 36 $450 
3,800 a 3, 675. 28 G58. 28 358. 28 600 
2,600 25 3, 355. 92 1, 077. 15 327. 15 750 
2,000 0) 3, 318. 10 1, 223. 46 323. 46 | 900 
1,620 35 3, 358. 25 1, 227. 38 327. 38 900 
1,440 40) 3, 722. 15 1, 262. 85 362. 85 | 900 
! Deductions minus tontine plus interest. 


The increase in the total annuity for years of 
service above 30 is slight, because the Government 
portion of the annuity remains at $900 for all the 
employees cited above with 30 years or more of 
service. However, an amendment effective Janu- 
ary 1, 1940, provides that the Government portion 
of the annuity shall not be less than an amount 
equal to the employee’s purchasable annuity. 
This amendment affects employees with relatively 
large salaries, long service, or both (table 3); for 
example, those with $2,600 salaries if they have 





*The Government annuity is computed similarly for employees in the 
65 and 62-year retirement age groups, but the amount of annuity purchased 
with the employees’ own contributions is smaller because of the greater life 
expectancy at the younger ages. The purchasable annuity is calculated by 
multiplying the accumulations by the following factors: 

62-year group: men, .0796495; women, .0731529; 

65-year group: men, .0854628; women, .0778816; 

70-year group: men, .0974849; women, .0876271. 
If on retirement an employee elects to forfeit to the fund any balance of his 
accumulations to his credit at the time of his death, the annuity is increased. 


Bulletin, April 1941 


had almost 44 years of service or those with 
salaries of $5,600 and a little more than 24 years 
of service. An employee with exactly 30 years of 
service is not affected unless his salary averaged 
$4,954 or more. 

Plan II, the guaranteed-minimum annuity plan, 
allows for each year of service (not exceeding 30) 
one-fortieth of the highest average annual basic 
salary (not exceeding $1,600) received during any 
5 consecutive years of service; in other words, a 
maximum of 30 times $40. It is this plan which 
has given many employees with 30 years or more 
of service and a salary of $1,600 or more for 5 
consecutive years the $1,200 per year which has 
been considered the standard civil-service annuity. 
However, for an employee with the minimum- 
service requirement of 15 years and a salary of 
$1,260, the plan yields only $472.50—less than 
Plan I. 

Plan II is used whenever it will yield a higher 
annuity than Plan I. At the lowest salaries, 
where one-fortieth approaches or is less than the 
$30 Government contribution per year under 
Plan II, Plan I, with its addition of the purchas- 
able annuity, provides more liberal benefits. 
For salaries of $1,600 or more, where the $40 
maximum per year of service applies, Plan I will 
yield more if the purchasable annuity is more 
than one-third of the Government allowance of 
$30 per year of service. However, for salaries of 
$1,440 to $2,000, when the accumulations from 
years of service are so meager as to make the 
purchasable annuity small in comparison with the 
Government allowance, the guaranteed-minimum 
plan yields a larger annuity (table 3). Most 
retirements to date have been under Plan II, 
since the annuity which could be purchased by the 
accumulations from employee contributions since 
1920, usually on only a portion of the employee’s 
Government service, is a relatively small fraction 
of the annuity granted. 

Like the railroad retirement system and many 
private pension plans, the civil-service retirement 
system meets the problems of employees who were 
already in Government service before the estab- 
lishment of the system by the allowance—up to 
$30 under Plan I or up to $40 under Plan I[—for 
each year of service (up to 30 years), whether 
before or after the establishment of the system. 
It makes no provision, however, for the retire- 
ment of employees with a short period of service in 


35 








covered Federal employment, i. e., employees 
already of advanced age when they enter Govern- 
ment service.” The relatively high minimum- 
service requirement for retirement on account of 
age—15 years—and the proportionate weighting 
of the annuity for years of service are in sharp 
contrast to the old-age and survivors insurance 
provisions under the Social Security Act in which 
prior-service credits ' are not provided and the 
increment for years of service is a relatively minor 
fraction of the total annuity. 

The formulas used for age annuities under the 
Civil Service Retirement Act are used in figuring 
disability benefits for employees who are “totally 
disabled * for useful and efficient service in the 
grade or class of position occupied,” but only 5 
years of service, rather than 15, are required. 
Obviously the formulas produce small annuities 
for employees disabled after the minimum length 
of service—about $165 under Plan I for entrants 
after June 30, 1930, with a salary of $1,260, and 
$200 under Plan II, for salaries of $1,600 to 
$3,500. 

It is significant to note that these disability 
benefits are for total disability measured against 
the specific occupations, and must not be confused 
with the permanent-total disability requirements 
“for any gainful work or hire” found in other dis- 
ability retirement systems. 

For employees involuntarily separated from the 
service after 30 years’ employment under a special 
provision of the Independent Offices Appropria- 
tion Act (the so-called Economy Act) effective 
between June 16, 1933, and July 1, 1935, annuities 
were computed as in automatic age retirement but 
reduced by 3% percent until the annuitant reaches 
normal retirement age. 

When applied in involuntary separation of em- 
ployees at least 45 years of age with 15 or more 
years of service who elect annuities to begin at 


1° The possibility of large numbers of employees reaching retirement age 
without 15 years of service is eliminated by age limits for entering the classified 
service, which, however, do not apply to persons with veteran preference. 

1 The old-age and survivors insurance formula, which attempts to meet 
the problem of employees in covered employment before the establfshment of 
old-age fnsurance by an average-wage formula instead of prior-service credits, 
would, in the early years of its operation, contribute toward meeting the 
needs of older workers entering covered employment for the first time. How- 
ever, as the program matures and the period lengthens during which such 
workers could have earned wages in covered employment, the reduction in 
the average wage will reduce the amount of benefits available for workers 
entering covered employment late in life. 

13 Employees disabled by a work-connected accident may choose between 
disability benefits under the Civil Service Retirement Act and benefits pro- 
vided by the Federal Compensation Act of 1916, administered by the United 
States Employees’ Compensation Commission. 


36 


Chart 2.—Annuitants on the roll of the three retirement 
and disability funds administered by the Civil Service 
Commission, and annual value of the roll, fiscal years 
ended 1921-40 


THOUSANDS OF ANNUITANTS MILLIONS OF DOLLARS 
70 




















60 — 4/60 
50 50 
40 " 40 
30 30 








NUMBER OF ANNUITANTS 4 





20 
ANNUAL VALUE OF ROLL 








aS ae 
1935 





a eS 
1930 


@heedentinadend 
1921 1925 


Source: Table 4. 





1940" 


age 55 or at separation, whichever is later, the 
formula yields small annuities not only because 
of the fewer years of service but also because of 
an adjustment for the longer life expectancy at 
the earlier retirement age. For instance, a de- 
ferred annuity of $600 at age 70, based on 15 
years’ service, would yield only $286.68 per year 
at age 55. 

The Civil Service Retirement Act makes no 
general provision for survivors’ benefits, compara- 
ble to those of the old-age and survivors insurance 
program of the Social Security Act." In January 
1940, a provision for joint and survivor annuities 
similar to that of the Railroad Retirement Act 
went into effect. Any employee retiring under 
the age or 30-year-service provisions may elect at 
retirement a lower annuity during his lifetime in 
order that, after his death, his widow or other 
designated beneficiary may receive an annuity 
during her lifetime. The amounts payable de- 
pend on the life expectancy of the employee at 
retirement, as well as of the beneficiary, as deter- 
mined by their age and sex, and also on the choice 
of a survivor’s annuity equal to, or 50 percent of, 
the employee’s annuity. In the first 6 months of 
its operation, approximately 3.9 percent of the 
annuitants retired for age or service elected this 
type of annuity. 

An annuitant who has not elected a joint and 


13 See Bronson, D. C., ‘‘Old-Age and Survivors Insurance in Its Relation 
to Public Employees,” Social Security Bulletin, Vol. 3, No. 6 (May 1940), 
pp. 10-16. 


Social Security 
































atone survivorship annuity may elect a forfeiture or 62,000; the annual value of the roll to $59.9 
ry : ‘ . canal 
es onforfeiture annuity. If he elects a nonforfei- million (table 4). 
n } 
years , ° ° 
ture annuity, any unexpended balance of his Total disbursements for monthly benefits under 
Lars accumulations is payable to his designated bene- _the Civil Service Retirement Act during the 20 
7 ° . . °ne ° 
ficiary or to his estate upon his death. The for- years were $508.3 million (table 2). Disburse- 
i feiture annuity is larger because the annuitant ments of $4.7 million from the Canal Zone retire- 
agrees to forfeit to the fund any balance of his ment and disability fund and of $210,000 from the 
er : ; y ; 
- accumulations at his death. The Government’s Alaska Railroad retirement and disability fund 
share of the annuity is always on a forfeiture basis. increase the total annuity payments to $513.2 
0 When employees die before retirement, lump-sum __ million. 
refunds are made of all their contributions plus Between 1921 and 1940, $95.1 million was 
50 interest. returned to employees leaving the service or to 
: survivors of deceased employees or annuitants 
0 Growth of the Retirement Roll under the civil-service retirement plan, $95.9 mil- 
During the first decade of the operation of the lion under the three plans administered by the 
4 Civil Service Retirement Act, the retirement roll Civil Service Commission. More than half a 
grew slowly (chart 2). At the end of the first million employees withdrew their deposits upon 
year of operation (June 1921) 6,500 retired civil leaving the service and lost the rights which they 
employees were drawing benefits at the rate of | had been accumulating for old-age and disability 
$3.7 million per year. By June 1930 annuitants benefits. A small proportion of these workers re- 
he had increased to 17,800, and the annual amount placed their deposits upon returning to classified 
186 payable, to $13.5 million. After the liberaliza- Federal employment. 
of tion of the retirement law by the 1930 amend- During the 5 fiscal years 1935-36 to 1939-40 
at ments, the increase was more rapid. By June for which data on amounts of refunds are separable 
le- 1940, the number of annuitants had increased to (table 5), more than 75,500 employees who were 
15 
ar , , — _ _ , 
Table 4.—Annuitants on the roll of the three retirement and disability funds administered by the Civil Service 
Commission and annual value of the roll, June 30, 1921-40 
10 
a- Annuitants on the roll 
ne rT PT —e Annual value of the roll 
- ea ee ae . Alaska (in thousands) 
'v nae Total Civil Service Canal Zone Railroad 
ea 
: lost) de 5 
Invol- | | Invol- nvol- 
+t m , | Disa- | untar | Disa- | untar j Re untar | Civil | Canal | 4lasks 
Total | Age bility sone | Total | Age* | bility separa- Total | Age * bility) separa- Totals) Age | Total | service! Zone = 
T tion ? | | tion? | tion ? 
t ary age , aS BEY PARTS a ao pee et Se 25 a 
1921 6,471 5, 947 524 6, 471 5, 947 a ee ban ---|-------]------ FOG) Fe ees 
n 1922.......| 7,576 | 6,667 909 7,576 | 6,667 _ |--------|-eonens |------| 4277 | 4,277 |.-------|-------- 
1923 9,334 | 7.904| 1,340 9,334 | 7,904/ 1,340 |... | S naee eeee eeeeene eetos ee Ee 
r 1924. 10,548 | 8,895 | 1,653 _..| 10,548 | 8,895 | 1,653 | ‘Ree Rees : wpe mee eee | ee i naeeee 
1925... 11,689 | 9,741 | 1,948 11,689 | 9,741 | 1,948 |.....-- SR eee RE BR: Le 4 3 ¢ | See Ameren: 
y 1926......| 12,524} 10,277 | 2,247 12,524 | 10,277 | 2,247 |---...-- -.| NERS DER EMRE ee 
1927 14,119 | 11,353 | 2,766 ees Ue <b 4 | eeeenee eeeeee Mere Sees Aemeees meee ES 10,185 | 10,185 |........|........ 
5 1928... 15,383 | 12,173 | 3,210 |........| 15,388 | 12,173 | 3,210 |........)....... ae AS semi’ Jencoe--]------] 0,900 | 28,200 |......--]--2ss0e 
1929 16,501 | 12,924 3, 577 | 16,501 | 12,924 | 3,577 : feee. ae A EEA SSeS oncact SEED P GEE Uaaccwccsiesatsons 
L 1930... 17,768 | 12,504 3,994 | 1,270 | 17,768 | 12,504) 3,904 S| = ea . | |-------]------ FFF. EE 
‘ 1931 22,650 | 16,329 4, 947 1,374 | 22,650 | 16,329 4,947 | sj == as Ee | —_— ae ae ce FP (a SS 
: 1932 25,724 18,290 6,016 | 1,409 | 25,567 | 18,190 | 5,973) 1,404 157 | 109 43 5 _---.-| 24,632 | 24,425 gd Nee ixeere 
1933 33,083 | 24,189 | 7,344] 1,550 | 32,835 | 24,015 | 7,281 1,539 248 | 174 63 | as aa 32,019 | 31, 691 a 
1934. ____| 45,040 | 34,119 | 9,042 | 1,879 | 44,708 | 33,906 | 8,941 | 1,861 332 | 213] 101 _ 5 eee Ree. 44,691 | 44, 256 _ , 
] ] 1935 49,031 | 37,021 | 9,994 | 2,016 | 48,665 | 36,782 9,886 | 1,997 366 | 239 108 a ee 48, 564 | 48,082 == 
, 1936 51,608 | 38,594 | 10,998 | 2,016 | 51, 206 | 38,331 | 10,877 1, 998 402 | 263 121 {ae a td , 958 | 50,427 531 isitaiibiie alias 
: 1937 53,796 | 39,576 | 12,180 2,040 | 53,306 | 30,241 | 12,044 2,021 458 305 135 18 32 30 | 52,921 | 52, 282 602 $37 
1938 56,685 | 41,118 | 13,486 2,081 | 56, 130 | 40,740 | 13,340 2, 050 507 | 338 139 30 48 40 | 55,620 | 54, 887 682 51 
1939_. 59,022 | 42,471 | 14,481 | 2,070 58,385 | 42,041 | 14,315 | 2,029 578 383 155 40 59 47 | 57,909 | 57,074 776 59 
1940... 62,706 | 45,177 | 15, 471 | 2, 058 62, 027 44, 714 | 15, 204 2,019 611 409 164 38 58 54 60, 766 | 59,879 820 67 





























§ Difference between total and age annuitants represents disability annui- 
tants except for 1 involuntary separation each year. 


Source: U. S. Civil Service Commission, 57th Annual Report, fiscal year 
ended June 90, "1940, pp. 143, 145, 146, tables 18, 20, 22. 


! See footnotes 3 and 4. 
2 After 15 years or more of service and at least 45 years of age. 
3 Includes involuntary separation, 1921-30; voluntary retirement after 30 
} ee service, 1931-40; and involuntary retirement after 30 years’ service, 
4-40. 
‘Includes voluntary and inv oluntary retirement after 30 years’ service and 
voluntary retirement after 25 years’ service. 


Bulletin, April 1941 ss 








Table 5.—Refunds from the three retirement and dis- 
ability funds administered by the Civil Service Com- 
mission, fiscal years 1935-36 through 1939-40 '! 





| | Total 
Number | amount (in 























Average 
Fund and type of refund 

| thousands) amount ° 

on 
CO 101, 147 | $37, 804 |---------- 
To separated employees__. 75,513 | 15, 283 | $202 
Civil Service_......______.- ; 74, 530 15, 023 202 
Canal Zone_..___. eon EE | 607 235 387 
pS” eee 376 25 | 65 

| 

To survivors of deceased employees.....| 314,912 15, 745 1, 056 
Cie Garvie. .............<...+-- 14, 791 15, 581 | 1, 053 
Canal Zone....____- a 103 159 | 1, 542 
ON 4 OS ae 18 5 | 290 
To survivors of deceased annuitants. . _- 310, 722 6, 867 | 640 
EE eee | 10, 621 6, 762 | 637 
Canal Zone... Ot 1, 055 

Alaska Railroad 12 10 | 








1 Data for Alaska Railroad retirement and disability fund cover only 4 
years 1936-37 through 1939-40, complete period of operation. 

? Computed from unrounded data. 

3Num of employees or annuitants with respect to whom payments 
were made, not number of beneficiaries receiving payments. 


Source: Unpublished data from the Actuary of the Retirement Division 
of the Civil Service Commission. See also p. 96, table 4. 


separated from employment withdrew deposits 
exceeding $15 million, or an average of $202. 
Almost 15,000 employees died while in active 
service. Their contributions to the retirement 
fund, paid to their survivors, also exceeded $15 
million, or an average of $1,056. Almost 11,000 
annuitants died with an unexpended balance of 
accumulations in the retirement fund. The 
amount paid to their survivors totaled almost $7 
million, or an average of $640. Table 5 shows 
separately the refunds reported for the three 
systems administered by the Civil Service Com- 
mission. The total amounts paid from the Canal 
Zone and Alaska Railroad retirement funds are 
small, but the variations in average payments are 
significant. The higher salaries of Canal Zone 
employees are reflected in the higher average 
amounts paid with respect to such employees, 
while the short period of service covered by the 
Alaska Railroad Retirement Act is reflected in 
lower average amounts paid with respect to em- 
ployees under that act. 


Characteristics of Annuitants 


The annuitants on the roll June 30, 1940, are a 
cross section of Government employees who have 
retired between 1920 and 1940. Their average 
number of years on the roll was 6.3; the largest 
number of annuitants and the median annuitant 
had been on the roll 6 years. Their ages (averag- 


38 


ing 67.8) varied from 26 for the youngest disability 
annuitant to 120 for the oldest age annuitant, 
Their service averaged 27.3 years; it varied from 5 
years to 64 years; and it began as early as 1868 or 
as recently as 1935. 

The majority of the annuitants were men, and 
in the 65-year retirement age group (table 6), 
More than 57 percent of the total annuitants and 
more than 61 percent of the men on the roll were 
former Post Office Department employees (table 
1). Almost four-fifths of these 35,000 Post Office 
annuitants were letter carriers or post-office clerks, 
laborers, and mechanics, who are automatically 
retired at age 65 if they have had 15 years’ service 
or optionally at age 63 ifthey have had 30 years or 
more of service; another eighth were railway postal 
clerks, who retire at age 62. The next largest 
percentage—12.2—of the total annuitants were 
Navy Department employees, principally navy- 
yard mechanics and laborers in the 62-year retire- 
ment group. Only 8 other departments or estab- 
lishments accounted for as much as | percent of 


Table 6.—Number and percentage distribution of civil- 
service annuitants on the roll, by sex, statutory age of 
retirement, and cause of retirement, June 30, 1940 





Cause of retirement 


Retirement after 
In ve ]- 


Sex and statutory age Total 30 years’ service 


of retirement Disa- 

Age bil se para- 
ility soy 
Volun- Invol- von 
tary’ wuntary? 
Cl , 62,027 | 30, 216 6, 318 8, 180 | 15, 204 2, 019 
Total, men. 54,907 | 27,795 | 5,951 | 7,665 | 11,874 1,712 
ae 11, 234 7, 24 1, 274 511 1, 958 287 
65 years : 34, 270 | 16, 047 3, 990 6, 132 7, 244 857 
70 years na | 9, 493 4,544 687 1, 022 2, 672 568 
Total, women 7,030 | 2,421 367 1 3, 421 307 
62 years_.._. , , 121 67 5 0 1s l 
65 years..._. he 2 047 1, 176 175 183 1, 289 124 
70 years... 3, 962 1, 178 187 332 2, 083 182 
Percentage distribution by cause of retirement 
= ——— 

Total... , 100.0 48.7 10.2; 13.2 24.7 3.2 
Total, men......| 100.0! 506] 108| 13.9] 21.6 3.1 
62 years 100.0 64.1 11.3 4¢ 17.4 2.6 
65 years 100.0 46.8 | 11.7 17.9 21.1 25 
70 years oe 100. 0 47.9 | aon 10.8 28. 1 6.0 
Total, women... 100.0 34.4 5.2 7.3| 48.7 4.4 
62 years binahaed 100.0 55.4 4.1 39 7 
65 years nonce 100.0 39.9 5.9 6.2 43.8 4.2 
70 years putwseseies 100. 0 29.7 4.7 8 2. € 4.6 





1 Within 2 years of retirement age. 

3 Regardless of age; effective 1933-35 only. 

3 After 15 years or more of service and at least 45 years of age 

Source: U. 8S. Civil Service Commission, Retirement Report, fiscal year 
ended June 30, 1940. 


Social Security 


lity 
int. 
n§ 
or 


ind 
6). 


Pre 


ble 


ice 


st 


a 


i en ae 


the total number on the roll, and only 4 additional 
agencies had as many as 100 annuitants. 

The percentage distribution of the annuitants 
by department or establishment does not parallel 
the percentage distribution of employees in the 
classified service (table 1). Compare, for instance, 
the Post Office Department, with 40 percent of the 
classified covered employees and 57 percent of the 
annuitants, and the War Department, with 15 
percent of the employees and 7 percent of the 
annuitants; or the ‘‘all other agencies,” including 
the newer agencies, with 5.3 percent of the classi- 
fied workers and 0.6 percent of the annuitants. 
Such differences may be explained in terms of the 
date at which an agency was established or 
periods of intensive hiring or lay-offs which 
influence the number of qualified employees 
reaching retirement age in future years, as well as 
the different statutory retirement ages for particu- 
lar groups predominating in the various agencies. 

The relationship between statutory retirement 
age, sex, and cause of retirement is shown in table 
6. The differences between men and women in 
distribution by reason for retirement are largely 
influenced by the differences in retirement age for 
their occupational groups. The majority of the 
men—62.3 percent—were in the 65-year statutory 
age group; the majority of the women—56.4 per- 
cent—were in the 70-year age group. Thus for 
the men there is more likelihood than for the 
women that the individual’s state of health will 
permit working until the normal retirement age. 

Almost one-fourth of the 62,000 individuals on 
the roll June 30, 1940, were disability annuitants. 
However, the proportion of disability annuitants 
varies greatly as between men and women and 
among the statutory retirement age groups. The 
higher the normal retirement age, the larger the 
proportion of employees retiring on account of 
the mental or physical disabilities of senescence 
prior to reaching retirement age.'* Among the 
men, the proportion of disability annuitants 
varied from one-sixth for the 62-year group to 
almost three-tenths for the 70-year group. Almost 
half of the women on the roll were retired for 
disability, but less than two-fifths of those in the 
62-year group and only slightly more than two- 
fifths of those in the 65-year group were retired 
for this reason. 





“ See Altmeyer, A. J., ‘‘Social Security for Permanently Disabled Work- 
ers,” Social Security Bulletin, Vol. 4, No. 3 (March 1941), pp. 3-10. 


Bulletin, April 1941 
310125—41——-4 


Similarly, the lower the retirement age, the 
larger the proportion of employees who are able 
to work until retirement age. While less than 
one-half of all annuitants were retired on account 
of age, almost two-thirds of the 62-year age group 
were retired for this cause. One-tenth of the 
annuitants but only one-twentieth of the women 
had taken advantage of the opportunity to retire 
2 years before the regular retirement age which 
is available to employees with 30 years or more of 
service. These voluntary retirements are essen- 
tially age retirements, since all employees covered 
were within 2 years of the statutory retirement 
age. They bring the total age retirements close 
to 60 percent of the total. Only 3 percent of the 
total annuitants represent involuntary separa- 
tions of employees 45 years of age or over with 15 
or more years of service, who elected monthly 
payments instead of cash refunds. However, 13 
percent of all annuitants on the roll June 30, 
1940, had been retired under the temporary pro- 
vision effective 1933-35, for involuntary retire- 
ment of employees with 30 years or more of service, 
regardless of age. These annuitants were largely 
letter carriers and post-office clerks in the 65-year 
group. The table suggests, however, that this 
provision, like the disability provision, was used 
to retire employees whose normal retirement age 
was not adjusted to their individual working 
capacity. 


Average Amount of Annuity 


Under the original act of 1920, which set a maxi- 
mum annuity of $720, the average annuity varied 
from $568 in 1921 to $545 in 1925. After the 
amendment of July 3, 1926, which raised the maxi- 
mum to $999.96, the average annuity rose to $721 
in 1927 and to $759 in 1930. With the present 
annuity formula, in force since 1930, the average 
has been as low as $952 in 1931 and as high as $990 
in 1934. The average as of June 30, 1940, was $965. 

In table 7, the distribution of annuitants on the 
roll as of June 30, 1940, by amount of annuity is 
shown in $100 intervals by cause of retirement. 
The effect of the guaranteed-minimum formula 
is clearly shown; more than one-third of all annui- 
tants and more than nine-tenths of those retiring 
voluntarily with 30 years or more of service receive 
exactly $1,200, the amount yielded under this 
formula for 30 years or more of service at a salary 
of $1,600 or more. 


39 








Table 7.—Number of civil-service annuitants on the 
roll, by amount of annuity and cause of retirement, 
June 30, 1940 









































Cause of retirement 
Retirement after 
Amount of annuity! | Total 30 years’ service Invol- 
Age Disa- | untary 
bility | separa- 
Volun-| Invol- tion ¢ 
tary ? | untary’ 
Total.............| 62,027 | 30,216 | 6,318 | 8,180 15,204 2,019 
41 39 0 0 2 0 
298 160 0 1 133 4 
990 225 1 0 627 137 
1, 666 289 3 0 932 442 
2, 327 647 1 1 1, 258 420 
, 525 1, 682 1 1 1,478 363 
4, 807 2, 905 0 1 1, 652 249 
3, 965 2, 226 1 5 1, 559 174 
3, 834 2, 349 14 21 1,344 106 
3,742 | 2,367 ted 79 1, 167 65 
4,215 2, 752 90 75 1, 248 50 
9, 691 3,412 140 4, 859 1,273 7 
21,943 | 10,638 5,743 | 3,031 2, 529 2 
908 459 255 106 SS 0 
50 44 3 0 3 0 
19 17 1 0 1 0 
4 4 0 0 0 0 
1 0 1 0 0 0 
1 1 0 0 0 0 
Average annuity.....__| $965 | $973 | $1,194 | $1,170 | $803 | $538 
| | | | | 





1 To nearest dollar. 

2 Within 2 years of retirement age. 

+ Regardless of age; effective 1933-35 only. 

4 After 15 years or more of service and at least 45 years of age. 


Source: U. 8S. Civil Service Commission, Retirement Report, fiscal year 
ended June 30, 1940. 


A distribution of annuitants on the roll by years 
of service shows clearly the effect of length of 
service, especially service up to 30 years, on the 
amount of annuity. The average annuity of those 
retired on account of disability after 5-9 years’ 
service is only $282; after 10-14 years, $473. In 
contrast, the average annuity of all types based 
on 25-29 years of service is $1,035, and for the 
three 5-year groups 30-44, $1,167. The distribu- 
tion of length of service by sex and by type of 
annuity (table 8) shows that most classes of annui- 
tants with 25 or more years of service have average 
annuities of $1,000 ormore. Aswould be expected, 
because of the reductions made for annuities 
beginning between age 55 and retirement age, 
the average for employees involuntarily separated 
from the service after age 45 is appreciably lower 
than for other types of annuities. 

While the average annuity for women ($772) is 
22 percent less than the average for men ($990), 
the difference is largely the result of the fact that 
their average service is 16 percent less. For most 
groups, the average annuity for women is only 5 
to 10 percent less than the average for men with 
the same length of service. The benefit formula, 


40 


weighted in favor of lower-salaried employees, 
reduces the effect of the women’s lower average 
salaries. 

Table 8 calls attention to the extremely long 
service of some annuitants. Even in the so-called 
“*30-year-service group,” 37 percent of the men 
and 50 percent of the women who retired volun. 
tarily before retirement age had had 35 years or 
more of service; 2 percent of the men and 8 per- 
cent of the women had worked for the Govern- 
ment 45 years or more. While disability annui- 
tants may retire with as little as 5 years’ service 
and 24 percent had less than 15 years, 22 percent 
of the men and 13 percent of the women had had 
30 years or more of Government service. Although 
most of the annuitants who were separated invol- 
untarily after age 45 had had between 15 and 29 
years of service, more than 11 percent of the men 
and 10 percent of the women in this group 
had had 30 years or more of service. A few had 
worked 45 years or more but had not reached 
the optional retirement age. 

The effect of years of service on the size of 
annuities is understated by the data in table 8, 
since many of these annuitants had service before 
1920, which is reflected only in the Government 
annuity and not in the annuity purchasable with 
the employee’s contributions. Table 3, on the 
other hand, overstates the effect of years of service 
on the size of annuities granted to date, since the 
annuities are figured on a rate of contribution in 
effect only since 1930. 

The increasing range of benefits reflects in 
part the influence of the accumulation of contri- 
butions. The highest annuity granted in 1938 was 
$1,546; in 1939, $1,651; in 1940, $1,900. In spite 
of the addition of a few annuitants at higher annu- 
ities, the average annuity in 1940 is lower than the 
average in recent years because of the retirement 
of a considerable number of low-salaried fourth- 
class postmasters, who first became eligible for 
annuity benefits on February 1, 1940. 


Proposals for Changes 


Some of the limitations of the protection 
provided by the civil-service retirement plan have 
already been mentioned: (1) the exclusion of large 
numbers of Federal workers not protected by any 
special retirement plan; (2) the heavy minimum- 
service requirements for age retirement; (3) the 
limited survivors’ benefits provided; and (4) the 


Social Security 





ees, 


rage 


long 
ulled 
men 
lun- 
$ or 
per- 


nui- 
vice 
cent 
had 
ugh 
vol- 
1 29 
men 
oup 
had 
hed 


> of 
e 8, 
fore 
lent 
vith 
the 
vice 
the 
1 in 


ion 
uve 
rge 
ny 


the 
the 


rity 





frequent dissipation of rights through return of 
deposits when employees leave the service. 

The operation of the latter two factors is now 
being emphasized by the increasing shift of em- 
ployees under the impetus of the defense program. 
In addition to the migration of professional 
employees from State and city to Federal employ- 
ment, defense activities are drawing into the navy 
yards and arsenals of the country many employees 
previously covered by Federal old-age and sur- 
yivors insurance. Many will not remain in 
Federal employment long enough to acquire 
retirement rights under the Civil Service Retire- 
ment Act, while their rights to old-age and sur- 
vivors insurance under the Social Security Act 
diminish or vanish with the passage of time. 


Various proposals to bridge this gulf between the 
various systems are now being studied.” 

The diverse retirement ages provided for differ- 
ent groups of civil-service employees have long 
been recognized as creating substantial complica- 
tions. The establishment of the retirement age 
of 65 under the Social Security and the Railroad 
Retirement Acts challenges the equity of the 
statutory 70-year retirement (68 with 30 years of 
service) for one-third of the Federal employees 

18 In an article on Personnel Administration in the Seventh Decade, Leonard 
D. White, formerly a Civil Service Commissioner, calls attention to the move- 
ment of city and State personnel to the Federal Government and the limita- 
tion on such movement “‘if public retirement systems are widely inaugurated 
which fail to permit the transfer of pension accruals. The anticipated spread 
of pension plans, a necessary step forward, need not curtail freedom of move- 


ment if they are properly constructed, but will unless care is taken.” Public 
Personnel Review, April 1940, pp. 1-9. See also Bronson, op. cit. 


Table 8.—Number of civil-service annuitants on the roll and average annuity, by sex, years of service,and cause of 
retirement, June 30, 1940 





Cause of retirement 
















































































Total Retirement after 30 years’ service eaten 
| i = ‘oo bins voluntary 
Years of service at retirement Age Disability separation # 
| | Voluntary ! Involuntary *# 
SS, renee SMe | 
' _, | Average : Average | a, Average Average | ,; Average Average 
Number | annuity | Number annuity Number annuity | Number annuity Number annuity Number annuity 
| | | 
Men annuitants 
Total 54, 997 $990 27, 795 $990 | 5, 951 $1, 194 7, 665 $1,171 | 11, 874 $834 1,712 $552 
i... 40 | 287 4 BA 940 SRE Sake AR 
10-14 1, 730 475 : 4 PE 1, 730 |) RAS See o> 
15-19 ; 8, 231 623 5, 290 629 Kt oe 2, 272 668 669 424 
20-24 6, 960 836 4, 400 | 855 P Ban 2, 085 865 475 530 
} | | | 
25-29 ; 8, 767 1,049 6, 169 sl _ = | ere Pee 2, 229 1,074 369 684 
34 17, 591 1,171 5, 290 1, 165 | 3,717 1, 193 | 6, 503 1, 169 1, 929 1, 183 152 780 
35-39 : 6, 203 1,174 3, 393 1, 164 1, 403 1, 196 855 1, 182 | 518 1, 183 34 816 
4-44 3, 404 1,171 2, 304 1, 161 | 679 1, 197 279 | 1, 191 | 132 1, 184 10 900 
| 
45-49 959 1, 160 765 1, 152 | 129 | 1, 204 | 26 | 1, 185 37 1, 184 2 791 
50-54. 191 1, 126 163 1,114 23 1, 205 | 2) 1, 200 | 2 1, 200 1 1, 035 
55-50... 20 1,042 20 1, 042 | ee J] as YY tS 2 
60-64... 1 1, 143 l 1, 143 Divscnses | ees _ || BE RRR 
Average service. 27.8 28.2 34.2 32.0 21.8 22.2 
Women annuitants 
sui EERE OIE a Ear ae ee em = ; ———— 
Total 7, 030 772 2, 421 $779 367 $1, 178 515 | $1,149 3, 420 $696 307 | $456 
5-9___. 7 323 : 268 a a 323 Ee RE i" 
10-14_. 698 467 | 6 gs 
15-19 1,975 593 778 573 1, 037 643 160 372 
20-24 1, 169 737 513 | 715 582 791 74 457 
25-29 779 | 886 | 414 | 848 |._..- J. 323 70 42 622 
30-34 1,100} 1,098 204 978 i82| 1, 171 321 1, 147 288 | 1,142 15 664 
35-39 536 | 1,096 | 191 1,016 90} 1,176 | 139} 41,142} 104| 1,159 12 688 
W-44 278 | 1, 116 118 1,048 66 | 1,191 46 1,175 | 45 | 1, 162 3 577 
| | 
549. 138} 1,111 87| 1,068 22} 1,196 | 9| 1,184 19| 1,193 1 732 
50-54 ; 29 1, 063 21 1, 010 7) = 1,205 | 0 < 1 | TD Bae Bes 
55-50... 5 772 | 5 772 | | ae 0 fees 0 
Average service 23.4 Bie 25.5 36.0 34.2 19. 1 20.9 





1 Within 2 years of retirement age. 
? Regardless of age; effective 1933-35 only. 
* After 15 years or more of service and at least 45 years of age. 


Bulletin, April 1941 


Source: U. S. Civil Service Commission, Retirement Report, fiscal year 
ended June 30, 1940. 


41 








covered by the Civil Service Retirement Act. 

In its annual report for the fiscal year ended 
June 30, 1940, the Civil Service Commission 
stated, “The most important recommendation 
heretofore made by the Commission is that for 
a uniform compulsory retirement age of 70 after 
15 years’ service and a uniform optional retire- 
ment age of 60 after 30 years’ service or 62 after 
15 years’ service. The optional provision should 
be available to the Government as well as to the 
employee.”’ Similar proposals, but with optional 
retirement “standardized at age 60 after 15 
or more years of service,’’ were made by a sub- 
committee of the President’s Committee on Civil 
Service Improvement in its report of February 
1941, with endorsement by the Committee, which 
urged favorable consideration by the Congress. 

The subcommittee called attention to the “im. 
portance of the provision of a retirement system 
which will have the effect of assisting to retain in 
the service of the Government able professional 
men, scientists, and administrators, and which 
will at the same time make certain their retire- 
ment when they have passed the height of their 
powers.” Such a provision would offset to some 
extent the present weighting of the benefit formula 
in favor of the lower-paid worker. The subcom- 
mittee points out that the proportion of final pay 
allowable as an annuity under the present retire- 
ment act to annuitants whose rate of remunera- 
tion is more than $2,400 at the time of retirement 
varies from 18 to 25 percent. Believing ‘that 
this proportion is not in accordance with the in- 


42 


terest of the public service in attracting and hold. 
ing the high quality of professional, scientific, and 
administrative employees needed in the Goverp. 
ment service,” the subcommittee recommended 
that an annuity to an employee with 40 years of 
service should be not less than half the highest 
average salary for any 5 consecutive years, with 
a proportional minimum allowance for employees 
having less than 40 years of service. It recom. 
mended also that disability annuities be liberalized 
by the allowance of 10 years’ service credit for all 
employees retired for disability with 5 to 10 years 
of service. To finance these additional benefits it 
was recommended that the employee contribution 
rate of 3% percent be increased to 4's percent, with 
a further increase for employees earning more than 
$3,120 per year. 

In the first 2 months of the 77th Congress, 1941, 
13 bills to amend the Civil Service Retirement Act 
were introduced. Of these, 5 proposed reducing, 
and in general standardizing, the retirement age. 
Others proposed extending coverage to groups 
which are now excluded; providing survivors’ bene- 
fits for widows of employees and of annuitants; 
permitting employees who are separated from the 
service 5 years before becoming eligible for retire- 
ment to retain their retirement rights by continu- 
ing to make contributions until they are eligible 
for an annuity; providing deferred annuities for 
persons separated from the service after 5 years’ 
employment; and liberalizing the law in other 
ways, with or without a corresponding increase in 
employee contributions, 


Social Security 





hold. 
» and 
vern- 
nded 
irs of 
zhest 
with 
Vees 
com- 
lized 
or all 
years 
its it 
ition 
with 
than 


941, 
Act 
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age, 
Ups 
ene- 
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the 
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ible 

for 
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e in 


ity 





PUBLIC ASSISTANCE 


BUREAU OF PUBLIC ASSISTANCE - DIVISIONS OF 
OPERATING STATISTICS AND ANALYSIS anp PROGRAM STATISTICS AND RESEARCH 


Administrative Costs of Special Types of Public Assistance 
by Level of Government, 1939 


Under the Social Security Act, the Federal 
Government makes grants-in-aid for old-age 
assistance, aid to dependent children, and aid to 
the blind, and the States and localities administer 
the programs. In many States the counties or 
other political subdivisions administer the pro- 
grams locally, and State responsibility is limited 
to supervision and the establishment of policies, 
standards, and procedures. In other States the 
programs are administered locally through branch 
offices of the State public assistance agency or 
occasionally directly from the central office. 
Costs of administering these types of public 
assistance, therefore, are incurred at three separate 
levels—Federal, State, and local. Costs incurred 
at the Federal, State, and local levels should not 
be confused with costs borne by the Federal, 
State, and local governments. For example, 
operating costs incurred at the local level may be 
paid from Federal, State, and/or local funds. 

The present analysis of administrative costs is 
directed toward determining (1) the proportions 
of total administrative cost incurred at the 
Federal, State, and local levels, respectively, in 
relation to the functions performed at each level, 
and (2) relative costs incurred for State super- 
vision and local operation in the several States. 
For the latter analysis, State supervisory costs 
are defined to include expenditures incurred at 
the State level for the State public assistance 
agencies which supervise administration by local 
political subdivisions and for those which admin- 
ister programs directly through branch offices. 
The division of costs between State and local 
offices is analyzed further to determine differences 
in this ratio among programs (a) between States 
which administer the programs directly and those 
which supervise local operation, and (b) between 
programs which are administered separately and 
those which are administered with other programs 
on an integrated basis. 


Bulletin, April 1941 


Relative Costs of Federal Administration of 
Grants, State Supervision, and Local Oper- 
ation 


Public assistance under the Social Security Act 
is the joint responsibility of the Federal, State, 
and local governments. At the Federal level, 
administrative expenses are incurred by the Social 
Security Board in executing its responsibilities 
under the Social Security Act. The Board 
authorizes Federal grants to States whose plans 
and administration meet the requirements of the 
Social Security Act. The operation of each State 
plan is reviewed by the Board to ensure continuing 
conformity to the purposes and requirements of 
the Federal-State program. In addition, the 
Board makes technical advisory services available 
to States on request. 

Administration of the public assistance pro- 
visions of the Social Security Act is primarily the 
responsibility of the Bureau of Public Assistance 
of the Social Security Board, which works in 
collaboration with offices charged with special 
aspects of the program, such as legal counsel, 
auditing, personnel, administration, and public 
information. Administrative expenses incurred 


Table 1.—Total cost of administration for special types 
of public assistance, by governmental level, 1939 











Governmental level ! Amount Percent 
All levels $43, 518, 000 100. 0 
Federal | #2, 409, 000 | 5.5 
State _. 7, 506, 000 | 17.3 
Local. _. 33, 603, 000 | 7.2 





1 Not source of funds. 
? Data for fiscai year ended June 30, 1939. 


for public assistance by the central and regional 
offices of the Social Security Board ' amounted in 
1939 to $2.4 million, or 5.5 percent of total ad- 

i Include administrative costs of the Bureau of Public Assistance and 


a proper share of costs of other Bureaus and offices, chargeable to public 
assistance. 


43 








ministrative costs incurred at all levels (table 1). 
The Social Security Act requires that an ap- 
proved State plan * provide for the establishment 
or designation of a single State agency to adminis- 
ter directly or to supervise operation by local 
agencies. States which have delegated responsi- 
bility to local units incur administrative costs for 
supervising local administration. States which 
directly administer public assistance incur costs 
both for operation at the local level and for super- 
§ Data in present and following discussions represent costs for all programs 
administered under plans approved by the Social Security Board in the 


continental United States and for 1 program, aid to the blind in Pennsylvania, 
administered under State law without Federal participation. 


Table 2.—Old-age assistance: Expenditures for admin- 
istration of State and local offices, by State, 1939 


[Data reported by State agencies, corrected to Oct. 25, 1940] 























[In thousands] 
State office ! Local offices 4 
State Total 
Amount | Percent | Amount | Percent 
Total ?___..... $28, 781.3 | $5, 348.1 18.6 |$23, 433.3 81.4 
102.5 25.0 24.4 77.5 75.6 
43, 194.8 627.1 19.6 2, 567.7 80.4 
707.5 82.2 11.6 625. 3 88.4 
236.5 102.2 43. 2 134.3 56.8 
468. 6 58.9 12.6 409.7 87.4 
456.7 129.8 28.4 326.9 71.6 
116.8 34.1 29.2 82.6 70.8 
1, 459. 5 320. 8 22.0 1, 138.8 78.0 
797.6 109.9 13.8 687.7 86.2 
4 §25.4 265. 1 50.5 260. 3 49.5 
429.0 5 57.3 13.3 5371.8 86.7 
4541.6 125. 1 23.1 416.5 76.9 
797.3 182. 0 22.8 615.3 77.2 
4252.4 50.9 20. 2 201.5 79.8 
320. 5 32.7 10. 2 287.7 89.8 
816.0 255. 0 31.3 560.9 68.7 
4 697.6 49.5 7.1 648. 1 92.9 
754. 6 170.5 22.6 584.0 77.4 
137.1 50.4 36.7 86.7 63.3 
4 321.8 77.7 24.1 244.1 75.9 
91.2 18.0 19.8 73.1 80.2 
728.0 50.6 6.9 677.4 93.1 
3, 382. 0 243.3 7.2 | 3,138.7 92.8 
275. 1 35. 6 13.0 239.5 87.0 
132. 2 48.3 36.6 83.8 63.4 
TE 4 1, 331.6 228.9 17.2 1, 102.7 82.8 
. 8) ieeadiceee 708. 6 205. 3 29.0 503. 3 71.0 
TE 4 186.9 53.3 28.5 133. 7 71.5 
Ivania..._._. 2, 444.8 440.9 18.0} 2,003.9 82.0 
South Carolina... .. 232. 5 65.8 28.3 166.7 71.7 
South Dakota___-__-- 203. 0 40.6 20.9 162.3 80.0 
‘Tennessee_____.....- 383. 4 100. 4 26.2 283. 0 73.8 
ietaiidiackacaeihancie 942.2 210.0 22.3 732.2 77.7 
Woshiagiens ‘0o7.5| 145| go2| g29| 708 
See i . ‘ 1 ' 
Weet Viwinia RS 420.4 78.2 18.6 342. 2 81.4 
Wisconsin... ........ 574.9 72.8 12.7 502.0 87.3 
Wyoming.__........ 4.6 10.6 23.8 33.9 76.2 
Other States *._..._. 2, 622.8 452.4 17.3} 2,170.4 82.7 

















1 Data represent expenditures incurred for State office and field supervision 
of branch offices or local agencies. 

3 Data represent er, incurred for branch offices where programs ; 
State-adm , and for where program is administered 
minor civil divisions of 


— 
7 All — - ti... therefore totals may differ slightly from sums of 
rounded am Percentage distributions are based on unrounded data. 
‘ Estimated fr on data for 6-month period. 
§ Distribution between State and local offices estimated. 
* Data represent estimates for 11 States: Alabama, Arkansas, Delaware, 
District of Columbia, Massachusetts, Mississippi, Nevada, New Mexico, 
Rhode Island, Vermont, and Virginia 


44 


vision, at the State level, of local operation. Dyp. 
ing 1939, State agencies of both types expended 
$7.5 million for supervision of local offices. These 
supervisory costs amounted to 17.3 percent of 
total administrative costs incurred at all three 
governmental levels. 

For the most part, costs incurred at the State 
level are incurred for supervising local agencies 
or branch offices of the State agency. Some State 
office costs, however, such as the cost of writing 
and distributing checks, are direct operating costs 
ordinarily incurred at the local level; in many 
States this operating function may be performed 
at the State level because it is more efficiently 
and economically discharged by a central unit. 
In general, State agencies incur expenses for the 


Table 3.—Aid to dependent children: Expenditures for 
administration of State and local offices, by State, 
1939 

[Data reported by State agencies, corrected to Oct. 25, 1940] 
{In thousands] 























| State office ! Local offices ! 
State Total Tr — ney 
| Amount | Percent | Amount | Percent 
| | 
Total ?__......} $10, 776.1 | $1, 706.3 15.8 | $9, 069.8 | 842 
Ee ree sae 26.3 | 16. 2 | 24.3 50.7 75.7 
California. 41, 026.3 193.7 18.9 832. 6 81.1 
Colorado... _. “3 86. 6 | 10.1 11.6 76. 5 88.4 
ss / 138.6 17.1 12.4 121.5 87.6 
Georgia . . i 144.7 | 49.0 33.9 95.7 66.1 
a 65.3 | 16.4 25. 1 48.9 74.9 
a 454. 4 | 73. 4 16. 2 381. 0 83.8 
SSIS 159.1 | § 25.0 15.7 § 134.1 4.3 
Louisiana._____- a 874.4 | 199. 1 | 22.8 675.3 77.2 
Maryland.......__- 361.6 32.7 | 9.0) 328.9 91.0 
] 
Michigan ........__. 4 630.6 32.8 5.2 597.8 04.8 
Minnesota __ __--_- 4 227.7 17.8 | 7.8 | 209. 9 92.2 
A 140.1 31.1 22.2 109. 0 77.8 
Montana........._.. 50.1 19.8 39. 5 30. 4 60.5 
Nebraska... ........ 4105.8 23.8 22. 5 | 82.1 77.5 
New Hampshire __-- 9.0 2.5 28. 0 | 6.5 | 72.0 
New York. iene 1, 342.1 79.8 5.9 1, 262.3 04.1 
North Carolina____- 4143.0 18.5 13. 0 | 124.4 87.0 
North Dakota___.__. 78. 0 33. 6 | 43.1 44.4 56.9 
eee 532.4 82. 5 15.5 449.9 84.5 
Oklahoma........... 188. 5 55.4 29.4 133. 1 70.6 
SSS oa 462.5 21.6 34. 6 40.8 65.4 
Pennsylvania_...__. 1, 373.5 215. 2 15.7 1, 158. 4 3 
South Carolina____- 89.1 25. 0 28. 1 64.1 71.9 
ennessee____.___. 218.4 7.1 26. 1 161.3 73.9 
[a 4105.6 20.0 19.0 85. 6 81.0 
.., 49.1 2.8 31.1 | 6.3 68.9 
Washington. 4188 2 33. 2 17.7 | 155. 0 82.3 
West Virginia._..__. 198. 6 39.1 19.7 159. 5 | 80.3 
bie 236.9 37.6 15.9 199.3 | 841 
Wyoming........... 18. 5 4.4 24.0 14.1 76,0 
Other States *____ 1,480.2] 29.7] 15.2] 1,290.5 | 848 














! Data represent expenditures incurred for State office and field supervision 
of branch offices or local ncies. 

3 Data represent expenditures incurred for branch offices where program 
is State-administered, and for local agencies where program is administered 
by minor civil divisions of State. 

4 All amounts are rounded; therefore totals may differ slightly from sums 
of rounded amounts. Percentage distributions are based on unrounded 


4 Estimated from data for 6-month period. 

5 Distribution between State and local offices estimated. 

* Data represent estimates for 10 States: Alabama, Arkansas, Delaware, 
District of Columbia, Maine, Massachusetts, New Jersey, New Mexico, 
Rhode Island, and Virginia. 


Social Security 


ended 
These 
nt of 
three 


State 
NCies 
State 
iting 
Costs 
nany 
med 
ntly 
unit. 


the 


s for 
tate, 


| 


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Sree | 


SAFSSSA 
ReaccKeae 


Sen For sISk 
AOS Sem maces pa 


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ey 
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following purposes in supervising local offices: 
developing policies and prescribing standards of 
assistance, services, and administration; formulat- 
ing rules and regulations and preparing manuals 
of procedures and methods; providing field and 
consultative services to local agencies for inter- 
pretation of policies, rules, regulations, procedures, 
and methods and for review and supervision of 
local activities; allocating or distributing State 
funds for public assistance among local units; 
and establishing and maintaining statistical and 
financial controls over local operation by means of 
reporting and accounting systems. 

Local agencies or local offices of State agencies 
deal directly with applicants and recipients of 
public assistance. Usually, these agencies are 
responsible for establishing original and continu- 
ing eligibility for public assistance, including the 
determination of amounts of assistance and pro- 
vision of services incident to financial assistance. 
In addition to expenses of the visiting staff, costs 
are incurred for supervision and for stenographic 
and clerical services. Local agencies incur ex- 
penses for performing the following types of activi- 
ties in administering public assistance: receiving 
and investigating applications for public assist- 
ance and determining the amount to be granted 
in accordance with standards, policies, and pro- 
cedures established by the State agency; reviewing 
the continuing eligibility of recipients and deter- 
mining changes in amounts of assistance; providing 
services to applicants and recipients incident to 
financial assistance; establishing and maintaining 
case records, correspondence on cases, statistical 
and financial reports, and records. In 1939 the 
cost incurred for local operation of public assistance 
by agencies in minor civil divisions of the State 
amounted to $33.6 million, or 77.2 percent of the 
total administrative expenses at Federal, State, 
and local levels. 


Relative Costs of State Supervision and Local 
Operation 


Almost 95 percent of total administrative costs 
for public assistance is incurred at the State and 
local levels (table 1). Data for individual States, 
however, indicate considerable variations among 
the States in the ratio of State to local office 
expense. Data for groups of States with common 
characteristics selected for purposes of analysis 
throw considerable light on the specific factors 


Bulletin, April 1941 


which account for these variations among States. 

Actual data on relative costs incurred for 
administration at the State and local levels of 
38 programs for old-age assistance, 31 programs 
for aid to dependent children, and 34 programs 
for aid to the blind in 40 States appear in tables 
2, 3, and 4, respectively. Estimates for the 
remaining programs were based on these data and 
are included in each table in order to provide totals 
for all States. 

In the average State, approximately one-fifth of 
total administrative costs are incurred at the State 
level, but with a wide range among States.—Accord- 
ing to data available for 103 programs, State 


Table 4.—Aid to the blind: Expenditures for adminis- 
tration of State and local offices, by State, 1939 


[Data reported by State agencies, corrected to Oct. 25, 1940] 
{In thousands] 





















State office ! Local offices # 
State Total 
Amount | Percent | Amount Percent 

a $1, 552.3 $452.1 29.1 | $1, 100.2 70.9 
PI a isitiinintiinnini 5.6 1.4 24.2 4.2 75.8 
California..........- 4 237.1 68.5 28.9 168.5 71.1 
OO SSE 12.8 1.5 11.6 11.4 88.4 
Connecticut__.___.- 4.8 1.1 22.5 3.7 77.5 
| 36.0 7.8 21.7 28.2 78.3 
.  aeaee cal 28.7 9.2 32.2 19.5 67.8 
SASS ae : 5.8 2.2 38.3 3.6 61.7 
LS 81.6 42.6 52.1 39. 1 47.9 
A 425.9 17.4 67.1 8.5 32.9 
Ee 46.9 § 22.5 48.0 $24.4 52.0 
Louisiana ; 24.3 5.5 22.7 18.8 77.3 
OE 410.5 5.5 52.6 5.0 47.4 
Maryland_--_- % 22.2 1.6 7.4 20.6 92.6 
[OO aS 433.2 1.7 5.2 31.5 94.8 
Minnesota. - -- 437.0 | 18.2 49.2 18.8 50.8 
Montana.. 8.6 5.7 66. 6 2.9 33.4 
Nebraska- - 47.6 2.4 32.0 5.2 68.0 
New Hampshire _- 3.8 1.4 37.1 2.4 62.9 
New York......... 138.7 17.0 12.2 121.7 87.8 
North Carolina - ---- 458.1 22.1 38.0 36.1 62.0 
North Dakota.._.-_- 4.4 2.4 53.8 2.0 46.2 
SRR 96.4 38.3 39.7 58.2 60.3 
Oklahoma....__._-_- 24.2 11.0 45.2 13.3 54.8 
sss 47.2 2.1 28.5 5.1 71.5 
Pennsylvania §_____- 375.4 84.3 22. 5 291.1 77.5 
South Carolina__.__- 14.3 4.0 28.1 10.3 71.9 
South Dakota-----_- 3.1 9 28.3 2.2 71.7 
Tennessee ian 16.6 4.4 26. 2 12.3 73.8 
. ae 45.4 1.0 18.5 4.4 81.5 
WURscitigscecaic: 434.6 18.0 52.2 16.5 47.8 
Washington___..___- 23.2 5.1 22. 1 18.0 77.9 
West Virginia__--_-_- 27.5 5.0 18.3 22.5 81.7 
Wisconsin..........- 28.1 4.1 14.6 24.0 85.4 
Wyoming. -.........- 4.6 1.1 24.4 3.5 75.6 
Other States 7______- 58.2 15.2 26.1 43.0 73.9 




















| Data represent qeepts incurred for State office and field supervision 
of branch offices or local agencies. 

1 Data represent expenditures incurred for branch offices where program is 
State-administered, and for local agencies where program is administered 
by minor civil divisions of State 

* All amounts are rounded; therefore totals may differ slightly from sums 
= rounded amounts. Percentage distributions are on unrounded 


« Estimated from data for 6-month period 

+ Distribution between State and local offices estimated. 

* Not under Social Security Act. 

’ Data represent estimates for 9 States: Alabama, Arkansas, District of 
Columbia, Massachusetts, Mississippi, New Jersey, New Mexico, Rhode 
Island, and Vermont. 


45 








costs range from 5 to 67 percent of combined 
administrative costs of State and local offices with 
a marked concentration between 15 and 25 per- 
cent. From one-fifth to one-fourth of total 
administrative costs, on the average, are incurred 
for State offices, the median percent being 22.7. 

For 19 programs, State office costs were 35 
percent or more of total costs. The distribution 
of programs according to the percent of State 
office to the combined State and local office costs 
of administering public assistance in 1939 was as 
follows: 


State office costs as percent of total Number of 

ad ministrative costs programs 
MN Sid does nee oes ase 103 
A in cca Ss slo ined tabi ain oo tes ail 22 
ESS ee ee een 40 
ae cial tons totaal hens ieee oe 22 
ee Spence cannes " 9 
NT A ae ac asiccpiesialedicns eagles ah ete eta Allies te 8 
RE eee 2 


The ratio of State to State and local office costs is con- 
siderably higher for aid to the blind than for the other 
two programs.—Nine of the 10 programs with State 
office costs in excess of 45 percent of total adminis- 
trative costs are programs for aid to the blind. 
State office costs generally comprise a higher per- 
cent of State-local costs of administering aid to 
the blind. The distribution of States according to 
the percent of State office to total administrative 
cost for each program was as follows for 1939: 

















Number of States 
State office outs as percent of total | 
administrative costs Aid to 

A». 4 Cpeeent | the blind 

children | 
ee , 38 31 34 
ere | 10 7 5 
| 17 14 9 
I 7 8 7 
35-44.9 3 2 1 
45-54.9. 1 0 7 
eS 0 | 0 2 





In more than half the States, State office expense 
for aid to the blind was more than 25 percent of 
total administrative costs. State office expenses 
for old-age assistance and aid to dependent chil- 
dren, on the other hand, reached this proportion 
in less than one-third of the States. These differ- 
ences among programs are reflected in the median 
percentages of State office to total administrative 
costs, which are 28.4 for aid to the blind and 21.1 


46 


and 19.7 for old-age assistance and aid to depend- 
ent children, respectively. 

The ratio of State to State and local office costs ig 
higher in States which finance almost all local 
operating costs than in other States.—States which 
administer public assistance directly through 
branch offices or which have considerable contro] 
over the direction of personnel of county agencies 
generally expend a larger share of their administra- 
tive costs at the State level. 
appears that States which exercise relatively less 
authority over local operation have lower ratios 
of State to State and local office costs. A distri- 
bution of programs according to the percent of 
State office to total administrative costs and by the 
extent of State financing of local costs for 1939 
was as follows: 


Conversely, it 





Number of programs for 
7 


which local operating 
costs were— 
State office costs as percent of total 

administrative costs Financed | Financed 

with 90 with less 
percent or than 90 per- 

more from cent from 
State funds | State funds 
Total fi 43 
5-14.9 2 » 
15-24.9 29 rr 
25-34.9 21] l 
35-44.9 6 
45-4.9 4 4 
55 and over. . ] 1 





Thus, in States in which local operating costs 
were entirely or largely financed from State funds, 
24.4 percent represented the median percent of 
total administrative costs comprised by State 
office costs. The median percent for other States 
was only 15.7. In the first group of States, State 
office costs were 15 percent or more for all but 2 
of the 60 programs included; in the second group 
of States, this situation obtained for only slightly 
more than half of the 43 programs included. 

Several reasons may account for the higher 
ratio of State office costs in States in which 90 
percent or more of local costs are financed by 
the State agency. The State office usually has 
more authority over local operation of such pro- 
grams and, consequently, expends relatively more 
funds for supervision. Functions ordinarily per- 
formed by local offices frequently are assumed by 
the State office because of economies in centralized 
operation of such functions. For example, prep- 
aration of assistance checks and maintenance of 


Social Security 


end- 


its ig 
local 
hich 
ugh 
trol 
icles 
itra- 
, it 
less 
tios 
stri- 
t of 
the 
939 


—— 


ns for 
ating 


ced 
less 
} per- 
rom 
unds 


necessary accounting records by the State office 
permit economies in machine operation. Cen- 
tralization of this type is more difficult where local 
agencies have considerable autonomy in operation 
of public assistance. It is more common for the 
State office to review individual case decisions 
of local offices when the State finances local 
operating costs entirely or in large measure. The 
cost of such review also raises the ratio of State 
to local office costs. Similarly, centralized statis- 
tical recording and preparation of reports in- 
creases State office costs in relation to local costs. 

State office costs appear higher in relation to total 
costs for administration of aid to the blind by inde- 
pendent agencies.—In the States in which aid to 
the blind is administered or supervised by an 
independent agency, the ratio of State to local 
office costs is higher than for States in which this 
program is administered and supervised by an 
integrated agency.’ Thus, 4 States with inde- 
pendent agencies for aid to the blind at the State 
level had percentages of State to total State-local 
costs of 38.0, 39.7, 52.2, and 52.6 percent as com- 
Agencies jointly administering 2 or more public assistance, relief, and 
related welfare programs with relatively little or no differentiation of staff by 
program. 


pared with the average of 27.1 percent for 30 
States in which the program was administered 
and supervised on an integrated basis. 

When the program for aid to the blind is admin- 
istered in conjunction with other programs, the 
same administrative and field staffs and social 
service, accounting, statistical, and other units 
work on a combination of programs administered 
by the agency; the cost of maintaining the staffs 
and units is divided among all the programs. 
When an independent agency administers aid to 
the blind, it usually maintains and bears the entire 
cost of separate staffs and facilitating units. As a 
result, administrative costs may be greater for an 
independent than for an integrated agency. 

The range among the States in the ratio of State 
to State and local costs and the diverse influences 
affecting the ratios emphasize the need for con- 
sidering the relationship of State to local costs in 
relation to supervisory and facilitating services 
rendered by the State agency. It should not be 
assumed that standards of supervision are equiva- 
lent for two State agencies because their super- 
visory costs bear a similar relationship to local 
operating costs. 


Expenditures per Inhabitant for Public Assistance and 
Federal Work Programs, 1940 


Comparisons among the States of total pay- 
ments to recipients of public assistance and earn- 
ings of persons employed under Federal work 
programs cannot readily be made because of the 
marked differences in the size of State popula- 
tions. To facilitate such comparisons for 1940, 
total expenditures (table 6) are expressed in terms 
of the amount spent per inhabitant for each type 
of assistance and earnings (table 5). These rates 
are useful in considering the relative costs of pro- 
viding assistance and earnings under the public 
assistance and Federal work programs in the 
various States. 

In 1940, expenditures per inhabitant for total 
assistance and earnings ranged from $10.01 in 
Virginia to $35.85 in Colorado, with a median 
rate of $20.08. State rates for the assistance 
programs combined—the three special types of 


Bulletin, April 1941 


public assistance, general relief, and subsistence 
payments by the Farm Security Administration— 
ranged from $1.23 in Mississippi to $18.75 in 
Colorado, with a median rate of $7.37. Expendi- 
ture rates for the various types of work-program 
earnings combined, exclusive of earnings on reg- 
ular Federal construction projects, also differed 
markedly, but the range from $7.65 in Iowa to 
$21.52 in the District of Columbia was not as 
great as that in the combined assistance rates. 
The median State rate for earnings was $13.35. 

Marked differences in State patterns are also 
reflected in the proportion which expenditures 
per inhabitant for assistance comprise of amounts 
spent per inhabitant for total assistance and 
earnings. This ratio varied from 9.6 percent in 
Arkansas to 59.4 percent in California, with a 
median of 36.7 percent. 


47 





Table 5.—Public assistance and Federal work programs: Amount per inhabitant ! of assistance and earnings in the 
continental United States, by State, calendar year 1940? 







































































Assistance to recipients Earnings of persons employed under Federal work programs 
. » Earnin 
Subsistence National Youth | other | ontee 
Special t ent Administration Federal F ar 
State Total # | Se Civilian . -_eo— ederal 
Fo certified Conser- Projects | S8ency | construc. 
Total ce | bythe Farm}; Total vation Out-of- |Adminis-| Projects | tion proj. 
and general Security Ce Student school t aio nanced ects? 
lef 4 Adminis- orps work werk re | from emer- 
tration program program — funds 
i intdbnmonnnatencsen $20.71 $8. 01 $7. 87 $0.14 | $12.70 $1. 64 $0. 20 $0. 50 $9. 64 | $0.72 $3.91 
9 ee 13. 28 1.94 1. 24 7 11. 34 2.48 19 . 53 7. 69 | 45 4.51 
REE 24. 98 10. 32 8.75 1. 57 14. 66 3.71 27 44 9. 92 | 32 427 
tii dis eneiinne-csmassisannt 15. 30 1. 47 1.41 06 13. 83 3.79 16 .52 9.15 . 21 1.98 
California. _................. 28. 80 17.12 16. 83 29 11. 68 96 23 39 9. 65 | 45 5. 56 
.— (“srs 35. 85 18. 75 18. 14 61 17.10 1.89 28 . 55 12. 81 | 1. 57 3.01 
Connecticut................. 16. 92 6.99 6.99 (5) 9.93 7 12 . 43 7. 68 | . 93 4.73 
Delaware._______ Saal 11. 88 3. 39 3. 36 03 8. 49 1.10 12 45 6.74 08 5.27 
District of Columbia. ____.-.- 24. 73 3. 21 OC) ae 21. 52 . 98 24 41 13. 29 | 6. 60 33. 88 
GR Ae RE 17.74 4.24 3. 87 37 13. 50 1. 86 15 46 10. 65 | 38 8.05 
(ARR 12. 12 1.75 1.49 26 10. 37 2.31 20 50 | 7.12 | 24 2 3 
EE 21. 86 7.71 7.27 44 14.15 . 59 . 28 71 11. 42 | l 2.00 
. s = AAAS 26. 97 10. 82 10.81 01 16. 15 1. 37 . 20 . 50 12. 37 | 1.71 1. 58 
Ae TRE 20. 08 7.90 7. 89 ol 12. 18 25 .20 . 43 | 9. 46 84 2.43 
RRR 15. 75 8.10 8.09 01 7. 65 93 .21 53 | 5. 80 . 18 LB 
° EAE AGREE: 18. 49 7. 24 6.90 34 11. 25 1. 65 .29 . 58 8. 41 . 82 1. 62 
ESSERE: 12. 76 2.14 2.07 07 10. 62 1.7 ott 44 | 7. 82 | 40 3. 46 
14. 93 4. 58 4. 53 05 10. 35 214 21 | Mt 7.10 | 6 6.01 
17.07 8. 67 8.61 06 8. 40 1. 65 .16 84 5. 46 29 5.71 
13. 36 5. 04 5. 02 - 02 | 8. 32 1. 02 15 40 5. 46 1. 29 5. 39 
30. 19 13. 50 13. 50 (8) | 16.69 1.37 .18 | 48) M12 | ‘54 9.29 
19. 78 7.51 7.49 . 02 | 12. 27 1. 29 | . 20 48 | 10 08 | . 22 1.63 
24. 25 10. 90 10. 81 .09 13. 35 1.95 . 22 .49 10. 30 . 39 8 
12.08 1.23 1.04 -19 | 10. 85 2. 46 17 | . 52 7. 37 33 4.19 
21. 90 7.00 6. 87 13 | 14.90 2.23 . 20 | . 46 | 11. 69 32 1. 64 
28. 03 9. 34 7. 67 1. 67 | 18. 69 2. 84 . 29 | . 4 13. 76 1. 26 6.77 
23. 41 7.79 7.19 .60| 15.62 1.72 . 26 | .50| 11.90} 1. 24 2.08 
21.70 7.90 7. 86 . 04 13. 80 2. 26 20 | . 48 10. 56 | 30 17. 66 
19. 41 7.90 7. 88 02 | 11. 51 .97 oT 62 | 9. 38 37 17.35 
20. 58 6.03 6. 02 01 | 14. 55 1. 29 15 47 11.72 92 8. 30 
23. 76 4. 28 3.09 1.19 | 19. 48 3. 58 . 20 i | 14. 01 97 3. 36 
23. 69 12. 13 12.12 =| 11. 56 95 .20 . 48 | st 1.11 2.43 
10. 71 2.08 1.97 ll 8. 63 1. 62 . 20 . 51 6. 13 17 2.9 
21. 96 6. 06 5.41 65 15. 90 3. 47 . 39 eC 11, 13 M4 127 
23. 28 & 62 8.61 01 14. 66 | 1.40 .19 39 | 11. 98 70 1. 22 
23. 35 8. 80 8. 50 30 14. 55 3.41 .30 7 9. 26 | &3 1. 34 
19. 16 7. 37 7. 24 13 11. 79 1. 43 .21 . 35 | 9. 36 | 44 4.37 
25. 16 11.00 10. 99 01 14. 16 1. 42 19 48] 1101 1. 06 3.61 
23. 28 8.14 8.14 () 15.14 1.16 18 . 4 12. 01 1. 25 14.71 
16. 22 1. 57 1.44 .13 14. 65 2.21 21 . 51 | 10. 44 1. 28 5. 51 
25. 43 9.91 7.22 2. 69 15. 52 3. 20 41 +66 | 11. 14 12 1.99 
12.79 2.95 2.91 04 9. 84 2. 20 1) . 6 | 6. 66 . 32 5. 43 
12.94 2.76 2.62 14 10. 18 2.08 . 22 . 58 | 7.08 . 22 3. 35 
28. 86 12. 12 11.91 21 16.7 1. 55 . 46 . 67 13. 24 | 82 2. 65 
14. 05 5.17 5.14 03 | 8. 88 .90 . 22 4 | 7. 29 03 1.40 
10. 01 1. 47 1.43 04 | 8. 54 2. 05 . 20 . 50 | 5. 14 | 65 10. 13 
24.71 9. 07 8. 84 2B 15. 64 1. 69 .B 51 11. 45 1. 76 12. 9 
17.13 3. 58 3. 53 05 13. 55 1.95 .19 . 69 | 10. 53 19 1&4 
22. 80 10. 11 10. 08 08 12. 69 1. 50 ‘24 "53 } 10.12 ‘30 4 
18. 76 6. 95 6. 21 74 11. 81 1.95 . 20 47 | &, 57 62 7.93 
1 Computed from unrounded data; based on total population as of Apr. 1, ‘ For detail by program, see the Bulletin, March 1941, p. 39, table 1. 
1940, from the U. 8. Bureau of the Census. 5 Less than 1 cent. 
3 See footnotes to table Federal nstructio jects luded fro tal 
on co n pro exclu m to 
» 3.1. — 


46 Social Security 





















































in the Table 6.—Public assistance and Federal work programs: Assistance and earnings in the continental United States, 
by State, calendar year 1940 ' 
_ {In thousands] 
rnin; Assistance to recipients | Earnings of persons employed under Federal work programs 
ray il eenee ooo : 
‘de! | | 
s | . National Youth Earnin 
’ — 4 yon | Administration oo ta on — <A 
cts 3 State Total? Special types | _P&! . es ey agency] Federal 
Total of public as- | ey ey Total Conser- Projects ——— construc- 
ora" | sistance and | Security vation | student | Out-of- | Adminis- | ¢ om emer-| tion proj- 
. » & ‘ , ’ 
| general relic " [em ~~ a Corps work ao tration ency ects 
tion program un 
$3.01 [a pan ee ae IMD, scan 
: . Total ¢ 5$2, 724, 504 | $1,051, 997 | $1, 033, 742 $18, 255 | $1, 672, 507 | $215, 844 $26, 847 $65, 211 | $1, 269, 188 6 $05, 417 $514, 564 
Ls Alabama | 37,5061 5,499 3, 520 1, 979 32,007 | 7,025 536 | 1,490 21, 775 1, 271 12, 785 
ca ‘Arizona | 12, 470 5, 150 4, 368 782 7, 320 1, 854 132 219 4, 955 160 2, 133 
re ‘Arkansas 29, 840 2. 850 2.737 113 26, 990 7, 316 1, 023 17, 844 419 3, 859 
5. 3 California | 198, 982 118, 294 116, 283 2,011 80, 688 6, 650 1, 597 2, 665 66, 671 3, 105 38, 403 
33. 27 Colorado 40, 281 21, 062 20, 372 690 19, 219 2, 128 319 613 14, 392 1, 767 3, 387 
co Connecticut 28, 917 11, 044 11, 943 1 16, 973 1, 311 208 738 13, 132 1, 584 8, 077 
oo. Delaware 3, 164 908 896 | 7 2, 261 293 31 119 1, 796 1, 405 
ie District of Columbia 16, 395 2, 126 SE iicsccons 14, 269 649 162 271 8, 812 4, 375 22, 468 
2.09 Florida 33, 656 8, O51 7, 340 7il 25, 605 3, 531 288 SO4 20, 207 715 15, 270 
158 Georgia 37, 832 5, 447 4, 632 815 32, 385 7, 201 621 1, 574 22, 248 741 7, 594 
is Idaho 11, 466 4,044 3, 813 231 7, 422 832 145 373 5, 995 77 1, 097 
L 6 Illinois | 212, 064 | 85, 481 85, 369 112 127, 483 10, 807 1, 552 3, 959 97, 687 13, 478 12, 465 
a 7 Indiana. 68, 812 | 27. 090 27, 058 32 41, 722 4, 278 691 1, 460 32, 422 2, 871 8, 341 
6. 01 lowa 40, 000 20, 570 20, 537 33 19, 430 2, 352 544 1, 352 14, 725 457 2, 877 
5. 71 Kansas 33, 332 | 13, 045 2, 433 612 20, 287 2, 973 527 1, 053 15, 155 579 2, 926 
530 Kentucky 36, 312 6, 115 5, 906 209 30, 197 5, 080 475 1, 239 , 265 1, 138 9, 840 
9. 29 Louisiana 35, 281 10, 833 10, 707 126 24, 448 5, 048 506 1, 266 16, 781 847 14, 216 
, Maine 14, 457 | 7, 341 7, 292 49 7, 116 1, 396 135 715 4, 627 243 4, 838 
L@ Maryland 24, 304 9, 165 9, 133 32 15, 139 1, 861 269 7 9, 045 2, 342 9, 825 
"98 Massachusetts 130, 360 58, 286 58, 281 5 72, 074 5, 933 790 2, 066 60, 968 2,317 40, 100 
’ | 
ta Michigan 103, 978 39, 476 39, 366 110 64,502} 6,784 1,042] 2,498 52, 909 1,179 8, 549 
6.77 Minnesota 67,714 | 30, 436 30, 196 240 37, 278 5, 434 609 1, 382 28, 77 1, 080 2, 741 
2 08 Mississippi 26, 399 | 2, 705 2, 201 414 23, 694 5, 377 375 1, 130 16, 098 714 9, 158 
17. 66 Missouri 82, 843 26, 25, 981 483 56, 379 8, 453 742 1, 732 44, 253 1, 199 6, 225 
7 35 Montana 15, 688 5, 228 4, 204 934 10, 460 1, 588 165 304 7, 696 707 3, 786 
8 30 Nebraska 30, 816 10, 261 9, 472 789 20, 555 2, 269 345 656 15, 659 1, 626 2,740 
3. 36 Nevada.... 2, 393 872 867 5 1, 521 249 22 53 1, 164 33 1, 947 
‘ New Hampshire 9, 546 3, 881 3, 871 10 5, 665 479 85 304 4, 613 184 8, 530 
243 New Jersey 85, 554 | 25, 058 25, 035 2B 60, 496 5, 352 609 1, 945 48, 758 3, 832 34, 543 
2 90 New Mexico 12, 642 2, 277 1, 644 633 10, 365 1, 906 108 383 7, 452 516 1, 786 
= New York 319, 172 163, 576 163, 481 95 155, 596 12, 747 2, 682 6, 424 118, 842 14, 901 32, 758 
L 34 North Carolina | 38, 177 7, 386 7, 002 384 30, 791 5,771 707 1, 816 21, 887 610 10, 349 
437 North Dakota 14, 096 3, 802 3, 473 419 10, 204 2, 228 249 404 7, 143 90 814 
3. 61 Ohio 160, 875 59, 505 59, 526 69 101, 280 9, 676 1, 337 2, 687 82, 749 4, 831 8, 414 
1471 Oklahoma 54, 519 | 20, 547 19, 854 693 33, 972 7, 976 692 1, 749 21, 627 1, 928 3, 128 
5 5 Oregon. . 20, 883 8, 029 7, 802 137 12, 854 1, 561 225 382 10, 203 483 4, 760 
199 Pennsylvania 249, 147 109, O11 108, 906 105 140, 136 14, 051 1, 834 4, 757 108, 996 10, 498 35, 718 
s Rhode Island | 16, 610 5, 810 5, 808 2 10, 800 826 132 386 8, § 892 10, 493 
5.43 South Carolina 30, 781 2, 972 2, 724 248 27, 809 4, 192 390 970 19, 830 2, 427 10, 461 
3 35 South Dakota | 16, 353 | 6, 375 4, 646 1,729 9, 978 2, 058 261 420 7, 162 1, 281 
-= Tennessee | 37, 302 8, 613 8, 504 109 28,689} 6,415 s71| 1, 354 19, 412 937 15, 836 
10. 13 Texas | 83, 033 17, 731 16, 812 919 65, 302 13, 352 1, 383 3, 721 45, 431 1,415 21, 473 
12 89 Utah 15, 882 6, 666 6, 552 114 9, 216 855 253 367 7, 287 454 1, 461 
13 Vermont . 5, 049 1, 858 1, 848 10 3, 191 323 80 159 2, 618 ll 502 
: 54 Virginia | 26, 828 3, 043 3, 831 112 22, 885 5, 481 537 1, 352 13, 764 1, 751 27,129 
793 Washington 42, 935 15, 759 15, 360 399 27, 176 2, 939 397 889 19, 888 3, 21, 853 
ve West Virginia 32, 589 | 6, 823 6, 732 91 25, 7 3, 71 356 1, 321 20, 030 355 2, 553 
—— Wisconsin 71, 563 31,712 31, 469 243 39, 851 4,720 764 1, 677 31, 738 952 1, 683 
Wyoming 4, 708 1, 745 | , 559 186 2, 963 488 51 118 2, 150 156 1, 987 
1 See footnotes to table 7. 5 For detail by program, see the Bulletin, March 1941, p. 39, table 1. 
‘Earnings on regular Federal construction projects excluded from total 4 Represents sum of rounded data. 
assistance and earnings. 5 Includes $8,000 not reported by State. 
ity Bulletin, April 1941 49 








Statistics for the United States, February 1941 


Total assistance and earnings less than in Janu- 
ary and considerably below February 1940.—In 
February 1941, total expenditures for public 
assistance and earnings in the continental United 
States amounted to $215.4 million, a decrease of 
3.1 percent from January and 13.3 percent from 
the previous year (table 7). Payments in Febru- 
ary are estimated to have benefited 5.4 million 
households including 15.0 million persons—0.2 and 
0.3 percent less, respectively, than in January 
(table 8). Smaller amounts were expended in 
February 1941 than in February 1940 for all pro- 
grams except the three special types of public 
assistance and the National Youth Administration. 


Federal Work Programs and FSA Payments 


WPA and other emergency Federal agency proj- 
ects decreased from January; FSA, CCC, and NYA 
increased.—Total earnings on projects of the 
Work Projects Administration decreased 9.1 per- 


cent to $94.1 million in February; the number 
employed decreased 0.4 percent to 1.9 million. 
Federal agency projects financed from emergency 
funds declined 1.0 percent and the number em- 
ployed, 5.6 percent. Civilian Conservation Corps 
earnings increased 6.1 percent to $18.2 million 
and the number enrolled, 6.1 percent to 274,000, 
Earnings under the student work program of the 
NYA were 14.7 percent larger than in January, 
and the number employed, 3.6 percent greater; 
the out-of-school work program rose 16.6 percent 
in earnings and 15.0 percent in employment. 
Subsistence payments by the Farm 
Administration increased 11.1 percent. 
Food stamp plan.—Data on the food stamp 
plan administered by the U. S. Department of 
Agriculture are presented in table 9. 


Security 


Special Types of Public Assistance 


Total payments for each program continued to 


Chart 1.—Public assistance and Federal work programs: Payments to recipients and earnings of persons employed 
in the continental United States, January 1933-February 1941 

























































MILLIONS OF DOLLARS MILLIONS OF DOLLARS 
350 —_—_-—_-—_ - 350 
| 
300: —-—— -—_,\— ¥ : 300 
250: 1250 
SPECIAL 
200\— + — | 
CIVIL WORKS aS oe 
PROSE | 
150: Ye 1150 
va SZ 
>, SO 
100- ss AN ABRs see SSS 100 
50 ot St na 7 ‘es 
> ae ee 
re) 


1933 1934 1935 1936 


50 


1938 1939 1940 1941 


Social Security 


nber 
lion, 
ency 
em- 
Orps 
llion 
000. 
the 
ary, 
ter; 
cent 
ent. 
rity 


imp 
t of 


l to 


ved 


ARS 
50 


rise in February with largest increase for aid to 
dependent children.—In February, payments for 
the three special types of public assistance in the 
continental United States, Alaska, and Hawaii 
totaled $58.2 million, an increase of 2.4 percent 
from January and 14.7 percent from February 
1940. Payments for aid to dependent children 
increased 7.3 percent over the amount for Janu- 
ary; old-age assistance was greater by 1.1 percent 
and aid to the blind, by 0.1 percent. Of total 
payments to recipients, more than 98 percent— 
$57.2 million—was expended in States with plans 
approved by the Social Security Board. The re- 
maining $1.0 million represented payments under 
State laws without Federal participation. 

In 43 States with plans approved by the Social 
Security Board and making payments for the 
month, aid to dependent children totaling $12.9 
million was paid to 371,000 families in behalf of 
899,000 children. These totals were larger than 


in the previous month by 7.5 percent for payments 
and 1.8 percent for both families and children 
(table 12). A plan for aid to dependent children 
in Mississippi was approved by the Social Security 
Board as of January 1, 1941, but no payments 
were made for January or February. 

In February, old-age assistance payments a- 
mounted to $43.1 million, paid to 2.1 million recip- 
ients. The 1.1-percent increase from January in 
payments for old-age assistance was accompanied 
by a rise of 0.3 percent in the number of recipients 
(table 11). In 43 States with plans for aid to the 
blind approved by the Social Security Board, 
increases from January of 0.3 percent in the 
number of recipients and 0.4 percent in the amount 
of payments resulted in totals of 49,000 recipients 
and $1.2 million in February (table 13). 

In States with plans approved by the Social 
Security Board, the number of recipients of old-age 
assistance in February 1941 was 8.0 percent 


Table 7.—Public assistance and Federal work programs: Assistance and earnings in the continental United States, 
by month, February 1940-February 1941! 


{In thousands] 

















note , . Earnings of persons employed under Federal work 
Assistance to recipients . la taanaaatis arenas 6 
aah 1 ty. a Earnin, 
Special types of public asst Subsistence Sete Tem, oxner Fea} on eeu 
Year and mont! Total ? ance payments Civilian : —— Work | eral agency construc 
General | °ertified by | Conser- |—— ——| Projects | Projects tion 
slief 4 the Farm vation Out-of- Adminis- | financed rojects !! 
Old-age | Aid to de- Aidt — Security Corps’ Student 2. | ‘tration * from emer- | ? 
assist- pendent th blind Administra- work poe room gency 
ance children . tion 5 program program funds !° 
194¢ 
February $248, 557 $38, 525 $10, 513 $1, 783 $40, 422 $2, 293 $19, 605 $3, 114 $6, 138 $115, 032 $11, 132 $24, 075 
March 253, 749 38, 322 10,72 1, 793 39, ORS 2, 805 17, 479 3, 266 6, 251 124, 363 9, 664 25, 243 
April 247, 888 38, 493 10, 839 1, 800 36, 680 2, 500 18, 051 3, 370 5, 932 119, 959 10, 264 30, 088 
May 230. 265 38, 661 10, 892 1, 803 34, 273 2,144 17, 908 3, 427 5, 554 114, 339 10, 264 34, 038 
June 218, 913 39, 200 10, 982 1,822 31, 376 1,516 15,872 | 2,314 5,7) 100, 419 | 9,7 36, 016 
July 212,067 | 39, 643 11, 090 1,818 | 32,155 637 | 18, 137 | 2 3, 407 97, 086 | 8, 092 39, 176 
August 213, 497 39, 043 11, 223 1,832 31, 659 940 | 19,022 4 4, 759 97,333 | 6, 782 43, 517 
September 40, 034 11,328 1,829 28, 505 | 732 | 16,828 106 4, 822 | 93, 507 | 5, 528 46, 833 
October 40, 864 11, 558 1, 847 | 29, 226 } 811 18, 479 2, 236 4,911 | 101, 784 | 4, 483 55, 904 
November 41,306 11,718 1, 847 28, 911 831 |) 18,725 3, 064 5, 450 | 93, 312 | 3, 898 69, 010 
December 41, 855 11, 989 1, 861 29, 866 1, 037 | 16, 314 | 3, 109 6, 463 | 102, 285 2, 980 85, 897 
1941 | | 

January 222,282 42, 521 12, 205 1,862 | 30,561 1,455 | 17,110 2, 757 7,901 | 103,514 2, 286 103, 028 
February 215,435 42,998 13, 191 1,865 | 28,893 | 1,617 | 18,152] 3, 161 9, 216 94, 080 2, 262 113, 377 








' Data are partly estimated and subject to revision. Exclude cost of ad- 
ministration and of materials, equipment, and other items incident to opera- 
tion of work programs. For January 1933-January 1940, see the Bulletin, 
February 1941, pp. 66-68 

? Data exclude earnings on regular Federal construction projects. See 
footnote 11. 

} Data represent payments from Federal, State, and local funds for programs 
administered under State plans approved by the Social Security 
Board and from State and local funds for programs administered under 
State laws without Federal participation. Exclude cost of hospitalization 
and burial and, beginning with September 1940, of medical care. 

‘ Data exclude cost of hospitalization and burial and, beginning with 
September 1940, of medical care. 

* Data from the FSA; represent net amount of emergency grant vouchers 
certified to cases and value of commodities purchased by the FSA and dis- 
tributed during month. 

* Data represent earnings of persons certified as in need and earnings of 
all other persons employed on projects operated under specified programs. 
Data for the CCC include earnings of enrolled persons caly. 

’ Data estimated by the CCC by multiplying average monthly number 


Bulletin, April 1941 


of persons enrolled by average of $66.25 for each month. Average amount is 
based on amount of obligations incurred for cash allowances, for clothing, 
shelter, subsistence, and medical care of persons enrolled, and for certain 
other items. é 

* Data from the N YA; represent earnings during all pay-roll periods ended 
during month. 

* Data from the WPA, Division of Statistics; represent earnings of persons 
employed on projects operated by the W PA and earnings of persons employed 
on Federal agency projects financed by transfer of WPA funds; cover all 
pay-roll periods ended during month. 

1° Data from the Bureau of Labor Statistics, Division of Construction and 
Public Employment; represent earnings on projects of Federal agencies, 
other than the CCC, NYA, and WPA, financed in whole or in part from 
emergency Federal funds; cover all pay-roll periods ended during month 
ended on 15th calendar day of specified month. 

1! Excluded from total; data from the Bureau of Labor Statistics, Division 
of Construction and Public Employment. Represent earnings on construc- 
tion projects financed in whole or in part from regular Federal funds; cover 
all pay-roll periods ended during month ended on 15th calendar day of 
specified month. 





Table 9.—Food stamp plan: Number of areas included 
and participants, and value of surplus-food stamps 
issued in the continental United States, by month, 
February 1940 and August 1940-February 1941} 


greater than in February 1940. The numbers of 
families and children receiving aid to dependent 
children increased 17.2 and 17.4 percent, respec- 
tively; and recipients of aid to the blind, 6.6 per- 

















cent. Payments were greater by 12.1 percent for xumbe is, aaa oat ot 
old-age assistance, 26.8 percent for aid to depend- none teres |——__—_—- stamp 
. . . 2g -ersons Sssue 
ent children, and 7.2 percent for aid to the blind. —__ | * 5 Ge | teem | 
: 1940 
General Relief Pie ciicncescscesccsee- 38 | 304, 398 852,900 | $1, 745, 367 
Contra-seasonal decline in February decreased Quertigg- oon | Sosorr | ore io | Seon 
total payments to less than three-fourths the total in ee ~oreneon* a 2 | gaassi | 2 B41, 100 8 7a2 Se 
February 1940.—Payments for general relief from December... ....--.---------- 281 | 921,025 | 2,821,600 | 6, 567, 08 
eae 1941 
State and local funds to 1.2 million casesamounted january ses | 901,002) 2906,700| 7,007.00 
| 265 | 986,363 | 3, 109, 300 7, 201, 681 





to $28.9 million in February, a decrease of 5.5 
percent from totals for January (table 7). In 41 ! Data do nee inctade getoens poets eeeapadittes under direct distribu’ 
tion program of the Surplus Marketing Administration or value of such ° 
States, the total number of cases and the amount __ moulties. eee, 
° 2 An area represents a city, county, or group of counties. 
of payments in February were 2.2 and 5.3 percent ? Includes recipients of three special types of public assistance and of sub- 
P ‘ sistence payments from the FSA; recipients of, and those eligible for, general 
less, respectively, than in January (table 14). relief; persons certified as in need of relief and employed on or awaiting assign- 
° ry: ° ment to projects financed by the WPA. Includes for 1 area (Shawnee, Okla.) 
In the continental United States, total expendi- some low-income families having weekly income of less than $19.50 who have 
P been eligible to participate since October 1939. 
tures in February 1941 were smaller by 28.5 per- ‘ Preliminary. 
cent than in February 1940 (table 7). — U. 8. Department of Agriculture, Surplus Marketing Administra- 
Table 8.—Public assistance and Federal work programs: Recipients of assistance and persons employed in the con- 
tinental United States, by month, February 1940-February 1941 ' 
{In thousands] 























| Estimated un- 
| —, Recipients of assistance Persons employed under Federal work programs * 
| | . Persons 
Special types of public | B's pu National Youth Other employed 
3 assistance ! pm mg Administration * - Federal | on regu- 
Year and month — | Persons ————- ————| Cases payments | Civilian ————— ~ A. - vas i 
| House- | in these | Aid to depend- | receiving were certi- | Conser- ee | ceed | eee 
| holds | house- Old rest ae general fied by vation | . Out-of- dmin- | Bnanced | struction 
-age entchildren | Aid to , 7 | Student . istra- from projects !! 
holds relief‘ | the Farm | Corps . school 
assist- she | the | Securi work k tion * emer- 
; blind - rity program wee gency 
| ance | Fami- | Chil- | | Adminis- program funds ! 
| lies | dren | tration § —— 
1940 | 
February... .--- | 6,221 18,024 | 1,927 329 792 | 70| 1,672 115 296 456 336 2, 203 93 203 
PE cinnnamaicns | 6,188 | 17,912 1,932 334 804 | 7 1, 612 119 264 473 335 2, 204 RS 221 
RETA 5,981 17,134 | 1,942 338 | 814 | 71 1, 527 87 272 482 321 2, 125 B5 254 
ee 5,741 16, 270 1,954 342 | 823 | 71 1,442 7 270 477 206 1, 963 s4 2M 
Se 5, 383 15,129 | 1,967 346 | = 831 | 72 | 1, 355 60 240 313 269 1, 734 81 312 
ee sestanden wesw | §,058 14,340 | 1,986 349 | 840) 7 1, 362 31 274 (12) 196 1, 639 68 329 
FS eee | 5,100} 14,484! 2,001 353 | 849 | 7 1,342 43 287 1 239 1, 684 52 343 
September. _- | 4,992| 14,065) 2016; 357/ 85 7 1, 261 35 254 24 238 1; 673 43 389 
ctober---...._- | §,202/ 14,442 | 2,034 360 | = 867 | 72 1, 230 34 279 352 232 1,743 34 454 
November..__-_- | 5,279 | 14,585 | 2,051 364 874 73| 1,213 36 283 439 262 1,771 29 612 
mber....... | 5,364 | 14,813 | 2,066 370 | 891 73 1, 239 44 246 44 326 1, 826 23 710 
1941 | | | 
January -_....__- | 5,448) 15,073 | 2,075 376 908 73 1, 257 57 258 442 419 1, 858 18 718 
February ____-_. | 5,461 | 15,069 | 2,081 383 924 73 1, 229 54 274 458 482 1,850 17 794 





! Data are partly estimated and subject to revision. For January 1933- ’ Data are averages computed by the CCC from reports on number of 
Jopuery 1068 see the Bulletin, February 1941, pp. 68-70. gemene enrolled on 10th, 20th, and last day of each month, except for the 
1 Estimated by the Work Projects Administration and the Social Security ndian Division for which averages are computed from daily reports 
oe, persons employed on regular Federal construction proj- 8 = from the NYA; represent number of persons employed during 

b tnote 11. month. 





+ Data represent recipients assisted from Federal, State, and local funds 
for programs administered under State ly = approved by the Social Security 
Board and from State and local funds for programs administered under 
State laws without Federal participation. Exclude recipients of hospitaliza- 
tion anever burial only and, beginning with September 1940, of medical 
care only. 

‘ Data represent number aided during month. Exclude cases receiving 

—— ote burial only and, beginning with September 1940, 
care only. 

5 Data from the FSA; represent net number of emergency grant vouchers 
certified to cases and number of cases receiving commodities purchased by 
the FSA and distributed during month. Ordinarily only 1 grant voucher 
per case is certified per month. 

* Data represent persons certified as in need and all other 
on projects under specified pr 8; exclude 
ployees. Data for the CCC include enrolled persons only. 


rsons employed 
ministrative em- 


52 


* Data from the WPA, Division of Statistics; represent average weekly 
number of persons employed during ‘month on projects operated by the 
W PA and persons employed on Federal agency projects financed by transfer 
of WPA funds. 

10 Data from the Bureau of Labor Statistics, Division of Construction and 
Public Employment; represent average weekly number of persons employed 
during month ended on 15th calendar day of specified month on projects 
of Federal agencies, other than the CCC, NYA, and WPA, financed in 
whole or in part from emergency Federal funds. 

11 Excluded from estimated unduplicated total; data from the Bureau of 
Labor Statistics, Division of Construction and Public Employment. Rep- 
resent average weekly number of persons employed during month ended 
on 15th calendar day of specified month on projects financed in whole or in 
part from regular Federal funds. 

12 Less than 500 persons. 


Social Security 


ided Chart 2.—Special types of public assistance and general relief: Index of payments to recipients in the continental 
mps United States, January 1933-February 1941 


nth, [Average month 1936=100] 
INDEX NUMBER ae INDEX wi500 


— 500 
b of _ 


d CiVIL WORKS PROGRAM WPA PROGRAM 
IN OPERATION | | IN OPERATION 
i ee | 



















| 
400 





400;— 











| | gt 
_—— eo OLD-AGE ASSISTANCE ~ 3 
ant 





300 





- 300+— 


bu* 
ym* 





ub- 
Tal 
mn- 
ve 200r- 2 7 | | JS a 
| 7 , | 

P 4 Ps es nea 

id 

-_ eS \~ aio To THE BLIND 


| 


| 
GENERAL RELIEF a 


A -- 


a 
4 7 Ned 


/ +“ AID TO DEPENDENT CHILDREN 














200 








ra: 











| | 


100 : : 100 


























partir tis phar tdoatss tact beatae dee tor tar tintaatantir ter tas tarts tis ptar tis tistae tists nts potsstsstos 
1933 1934 1935 1936 1937 1938 1939 ‘940 1941 


Table 10.—Special types of public assistance: Recipients and payments to recipients in States with plans approved 
by the Social Security Board, by month, February 1940-February 1941! 


[Data reported by State agencies, corrected to Mar. 15, 1941] 





Number of recipients ? Amount of payments to recipients * 











| 
Aid to dependent j ‘ 
Aid to 




















Year and month : | 
rn children : ; 
| Old-age . Aidto | . | Old-age Aid to 
assistance =——————-———-——| the blind | Total | assistance | dependent the blind 
| | | children 

Families Children | 

1940 
February 1, 929, 922 315, 758 763, 076 | 46,269 | $49,876,085 | $38,583,009 | $10,207,883 | $1,085, 103 
March . 1, 935, 269 | 320, 654 | 774, 566 46,502 | 49, 886, 543 38, 381, 032 10, 413, 612 1, 091, 899 
April. e | 1, 944, 978 | 325, 345 | 784, 877 46,846 | 50,192, 251 38, 552, 917 10, 539, 353 1, 009, 981 
May. 1, 956, 726 | 329, 192 | 793, 303 47,159 | 50, 418, 676 38, 722, 890 10, 589, 750 1, 106, 036 
June . - 1, 970, 454 333,017 | 801, 750 47,550 | 51, 067,838 39, 263, 252 | 10, 686, 141 1, 118, 445 
July sal 1, 989, 290 | 336, 288 | 811,170 | 47,812 51, 617, 258 39, 706, 938 10, 791, 455 1, 118, 865 
August 2,004,447 | 339, 645 820, 556 48,102 | 52,056,875 40, 007, 939 10, 920, 904 1, 128, 032 
September .. call 2, 019, 562 | 343, 366 829, 052 | 48,301 | 52, 253, 682 40, 099, 450 11, 028, 971 1, 125, 261 
October 2,087,344 | 346,547 | 836, 288 | 48,548 | 53,322,288 | 40, 930, 351 11, 255, 283 1, 136, 654 
November a | 2, 054, 345 352, 146 | 848, 455 | 48,836 | 53,970, 289 41, 372, 613 11, 451, 901 1, 145, 775 
December ‘ ‘ 2, 069, 670 358, 427 865, 242 | 49,015 54, 788, 732 41,921,989 | 11,716, 506 1, 150, 237 

i | | | 
1941 | 
January . 2, 078, 208 364, 334 882, 670 49, 104 55, 764, 667 42,587,790 | 12,024, 648 1, 152, 229 
February ; = 2, 084, 743 371, 005 | 898, 544 49, 249 7, 150, 591 43, 064, 669 | 12, 928, 937 | 1, 156, 985 
! Data relate to programs administered under State plans approved by the thereafter recipients of money payments and/or assistance in kind, Ex- 
Social Security Board and programs under State laws without Federal cludes recipients of hospitalization and/or burial only. 

participation administered concurrently with similar programs under ap- 3 Represents obligations incurred for month from Federal, State, and loca] 
proved plans. For February 1936-December 1937, see the Bulletin, July funds; for February- August 1940 represents money payments, assistance in 
1939, p. 52; for January 1938-January 1940, see the Bulletin, February 1941, p. 74. kind, and payments for medica] care, and for September 1940 and there- 
2 For February-August 1940 represents recipients of money payments after money payments and assistance in kind. Excludes cost of adminis- 

assistance in kind, and/or medical care, and for September 1940 and tration, hospitalization, and burial. 


Bulletin, April 1941 = 








Table 11.—Old-age assistance in States with plans approved by the Social Security Board, by State, February 194] 


[Data reported by State agencies, corrected to Mar. 15, 1941] 
































| 
Percentage change from— Number of 
| I 2 ‘ recipients 
7 | Amount of Average n per 1,000 
Social Security Board region and State va ow hy | payments to | payment per January 1941 in— February 1940 in estimated 
reciplents recipients ? recipient (————— ——- —'- population 
‘ , bo years and 
Numberof Amountof | Numberof Amount of over! 
recipients payments recipients payments 
a _...| 2,084,743 | $43, 064, 660 $20. 66 +0.3 +1.1 148.0 ‘4121 tom 
Region I: 
Connecticut ___- 17, 478 444, 652 25. 44 —.1 —9.7 +3.4 +29 137 
Maine ean 12, 903 268, 445 20. 80 —1.4 —1.4 —8.2 —8.0 162 
Massachusetts. _. 86, 693 2, 526, 536 | 29.14 —.3 +.5 +4. 2 +5. 1 we 
New Hampshire 6, 740 144, 818 21. 49 +1.0 +1.5 +33. 2 +37 Ml 
i etncnddunieciacasbas 6, 932 139, 121 | 20. 07 | —.6 4 +3.1 7 1” 
aera 5, 830 96, 336 16. 52 +12.5 +12.2 +4.9 +9.9 7 
Region II: l 
Ee ee ee 121, 453 3, 025, 935 | 24.91 | +2 —.4 +5.0 4+7.9 133 
Region III: 
Delaware... . 2, 452 28, 009 | 11. 42 | —1.5 | —1.5 (6 —1.4 118 
New Jersey _.___. 31, 260 662, 287 21.19 —.2 +44 +3.3 +7.2 112 
Pennsylvania... .. 100, 380 2, 202, 115 21.94 | +.1 | +.4 +8.6 +9.8 149 
Region IV: | 
District of Columbia 3, 445 87,951 25. 53 | —.1 +.1 +3.7 $5.3 8B 
Maryland 18, 107 322, 447 17.81 | —.3 —.1] —1.5 4+. 6 148 
North Carolina 36, 918 374, 529 | 10. 14 | —.2 (? +5.5 +6.7 $248 
Virginia. 19, 841 197, 232 9.94 +.3 +1 +20.4 +-23.1 130 
West Virginia. __. 18, 563 262, 528 14.14 | +.3 +.9 +7.1 +18. 7 5218 
Region V: 
Kentucky. .._.-.- 54, 019 482, 759 8.94 —.2 —.1 +19. +23. 4 DA 
Michigan... _._- ' . icacioe 79, 738 | 1, 343, 913 16. 85 +1.3 +1.6 +5.2 +7. 5 242 
Ohio . | 135, 099 3,115,114 23. 06 +4 +.7 +88 4.9 8 253 
Region VI: | 
Illinois 143, 482 | 3, 208, 702 22. 36 +.5 +1.2 +3.8 $ 264 
Indiana | 67,149 | 1, 224, 364 18. 23 —.2 +.2 +1.8 2 25 
Wisconsin | 53, 604 1, 213, 560 22. 64 +.2 +.4 +6.9 +11.2 m 
Region VII: | 
Alabama 20, 258 | 185, 584 9. 16 +.2 —.2 9.2 $171 
Florida . ? 37, 624 | 477, 606 12. 69 | —.4) +.2 +8, 4 +17.0 290 
Georgia aa 5 | 42, 009 349, 125 | 8.31 +23 +27 +55.9 +618 $ OR] 
Mississippi... - ‘ | 25, 701 222, 090 8. 64 +.5 +.8 +294 +45.8 2% 
South Carolina 17, 153 134, 092 | 7.82 -.9 ~1.6 10.5 —124 5245 
‘Tennessee 40, 196 | 406, 673 10.12 +.1 +.1 8 4 5 286 
Region VIII: 
Iowa -“ 56, 520 | 1,174, 611 20.78 ( +. 1 +44 +7. 1 249 
Minnesota ; ; 62, 842 | 1, 331, 635 21.19 —.1 ( —.6 +1. 6 296 
Nebraska SAE EET 28, 564 | 553, 508 19. 38 (*) +.3 4 +7 ong 
North Dakota 9, 038 | 152, 623 16.89 +.3 7 1.7 —1.2 236 
South Dakota. ._....... 14,913 | 286, 749 | 19. 23 | —.1/ —.2 +3.6 +4.4 343 
Region IX: 
Arkansas _-. 25, 484 | 198, 668 7.80 +.2 —.2 +41.0 +83 2 $206 
Kansas ___- 28, 145 571, 121 20. 29 (7) +.6 +7.1 +11.4 $233 
Missouri... __- 109, 238 1, 950, 256 17.85 +1 +.1 +32.0 +43. 3 336 
Oklahoma. ; ; 75, 381 1, 348, 275 17. 89 +.1 +.2| +6. € +8. 4 53 
Region X: | 
Louisiana____.._-- ; 34, 054 456, 037 | 13. 05 +1.3 +29 +11.1 +.4 5356 
New Mexico..__.. 4,921 86, 187 17. 51 +.7 +21 +16.8 +46.7 § 285 
ae 121, 739 1, 710, 788 | 14.05 +.7 +1.7 +2.1 +57. 0 353 
Region XI 
a &,! | 240, 860 | 28.04 | + +.5 +9. 5 4+13.8 357 
Colorado. . .... * 41, 830 61, 701, 723 40. 68 —.1 +17.2 +3.9 +7.1 * 460 
ST 9, 164 , 241 22. 51 + +.8 +4.3 +8.8 229 
Montana -| 12, 261 241,842 19.72 (7) +1.2 +.2 +9. f 350 
Sa : | 13, 768 363, 959 26. 44 +.6 +17.6 (? +249 456 
SATS ee! 3, 469 83, 282 24. 01 2 +.6 +3.2 +5 5 298 
Region XII: | | 
California... . a eee 152, 614 | 5, 774, 867 | 37.84 +.6 +.5 +12.4 +11.9 278 
a a 2, 299 | 61, 120 26. 50 —.2 —.2 +.9 +.8 343 
| aati 3 | 19,945 | 426, 656 21. 39 +.9 +1.1 —1.5 1.2 215 
Washington. _..... - 40, 676 929, 97 2. 86 +.6 +.9 +4.2 +8. 2 235 
Territories: 
i iis dae n adil 1, 5463 44, 313 28. 35 +.2 +.4) +15.9 +17.3 381 
Sc laltins sininanicathineinohenisttienditichinans 1, 798 22, 849 12.71 -. —.8 +4.9 +15.0 5140 
assistance in kind; ‘Comparison for 50 States; excludes Delaware for which data on both 


1 Represents recipients of ny | payments and/or 
excludes recipients of medical care, hospitalization, and/or burial only. 

1 Re nts obligations incurred for month from Federal, State, and local 
funds for money payments and assistance in kind; excludes cost of Administra- 
tion and of medical care, hospitalization, and burial. Allowances for medical 
care and hospitalization included in money payments are not excluded. 

3 Population 65 years and over as of Apr. 1, 1940, estimated from 5-percent 
sample by the U. 8. Bureau of the Census. 


recipients and payments are not comparable. 

5 Adjusted for payments covering 2 or more eligible individuals 

* Comparable data not available 

’ Decrease of less than 0.05 percent. 

* Increase of less than 0.05 percent. 

* Includes $146,351 incurred for payments to 3,592 persons 60 but under 65 
years. Rate per 1,000 excludes these recipients. 


Social Security 


y 194] 


——— 


ber of 
ents 
1,000 
lated 
lation 
rs and 
or’ 


137 


14] 
127 
171 


133 
118 


112 
149 


Table 12.—Aid to dependent children in States with plans approved by the Social Security Board, by State, 
February 1941 


[Data reported by State agencies, corrected to Mar. 15, 1941] 

































































Number of | Percentage change from— 
recipients ! 
Amount of| Average January 1941 in— February 1940 in— 
Social Security Board region and State pey — os ” a. ee | 
~omiline (Children 2| recipients ?| family Number of Number of 
Families |Children? recipients | Amount recipients Amount 
ee of pay- of pay- 
ments ments 
Pesnties | Children | Families | Children 
Total 371,005 | 4 898, 544 |$12, 928,937 | $34. 85 | +1.8 +1.8 +7.5 | 5417.2 | | $+17.4| $+26.8 
Region I: | | 
Maine 1, 589 4, 012 62, 546 39. 36 —.6 —.6 | —.7| +107] +4108 +14.1 
Massachusetts 12,757 | 431, 568 750, 316 58. 82 +1.1 +10} 41.1 +114) +82 +9.0 
New Hampshire 605 1, 503 27, 373 45. 24 -1.6 —1.4 ~-11 —4.0| 7.5 +1.4 
Rhode Island 1, 285 3, 661 58, 772 45.74 —1.0 —1.1 1.4 +9.8 +15.9 +9. 2 
Vermont 621 1, 721 | 20, 134 32. 42 —.§ —i.1 | —.8 +23. 5 +16.8 +126. 5 
Region IT: . ES “a <1 
New York 34, 127 67,069 | 1,598,376 | 46.84 -.5 | —.5 | —.2 —§) wht =i? 
Region ITI | 
Delaware 595 | 41,657 20, 250 34. 03 +2.4 +3.0 +3.5 +16.9| +241 +24. 2 
= 11,126 | 25,157 | 349, 733 31.43| —.5 =A, mal +1.8| +444 +5.5 
Pennsylvania 59, 323 148,496 | 2,812, 441 47. 41 +10.7 +11.9 +43. 5 +84. 7 +102. 4 +147.8 
ion IV | 
Ree istrict of Columbia 939 2, 838 | 35, 521 37. 83 —.4] +.5 | LBs +4.8 +6.7 +4.7 
Maryland 7, 002 18,755 | 218,890| 31.26 | —.6 | —1.2 | —1,1] —5.8 | —6.2 | —6.7 
North Carolina 9, 752 3,586 | 163, 860 16. 80 +.2 —.5 | +.3| +136] 7.9) +19.8 
Virginia | 4, 078 2, 230 82, 366 | 20. 20 +2.3 +2.2 +1.5 +80.4 |) +67.3 | 76.4 
West Virginia | 8, 793 23, 777 207, 411 23. 59 +1.5 +1.1 +2.0 | +19. 4 | +15.0 | +32.9 
ion V | | | | 
a | 20,206 | ¢ 48, 345 822, 123 40. 69 —.6 —.9 —.6 +17.7) +12.6 | +22. 1 
Ohio 11, 461 #31, 078 456, 551 39. 84 | +1,2 | +1.0 +1.3 +15. 2 +11.7 +19.4 
Region VI | 
Indiana 17, 263 35, 397 493, 375 28. 58 | —.4 —.6 —.2 +.8 +.6 +3.7 
Wisconsin 12,680 | * 28,825 479, 495 | 37. 82 | 3 +.3 +.3 +4.4 | +3.9 +6. 2 
Region Vil } | 
Alabama ‘ 5, 890 17, 076 80,615 | 13. 69 +.2 —1.2 | (7) +4.5 +3.0 -.3 
Florida *4,320 | * 10,839 * 95, 384 22. 08 —.3 | +.2 | +. +8.5 +5. 1 +13.7 
Georgia 4, 938 12, 421 108, 204 | 21. 93 +2. 4 | +1.8 +2.7 | +27.2 | +23. 2 +38. 4 
Mississippi (*) (¥) (*) | oda : 
South Carolina 3, 110 9, 213 51, 981 16.71 +1.8 +1.6 +4.0} 41.7 +.5 | +5.6 
Tennessee 14, 392 36, 271 266, 910 18. 55 +.1 +.1 } +.2 +5. 5 +3.0 +6. 2 
Region VIII: 
Minnesota j 9, 343 | 422, 149 323, 551 34. 63 +.9 | +.7 +.9 +9.7 | +8.0 | +8.4 
Nebraska 105,773 | 1° 12, 880 182, 000 | $1. 53 +.5 +.9 +.7 +9. 2 | +8. 5 | +9. 2 
North Dakota 2, 455 4 6, 798 76, 332 | 31. 09 (11) | +.1 (1!) +6. 6 +6.1 | +5.3 
South Dakota * 1, 065 § 2, 567 § 28, 135 | 26. 42 +7.4 +15. 6 +21.5 (*2) (#2) (#2) 
Region IX: | 
Arkansas 6, 296 | 16, 011 6, 304 13. 71 +.7 +.9 +.8 +57.8 | +48. 1 + 166.0 
Kansas 6,532 | 15, 346 197, 327 30. 21 1.3 +.3 +.8 | +4.9 | 7.5 +9.4 
Missouri | 13,230 30, 945 304, 337 29. 81 +.4 ( +.2} 431.6] +30.4 +63. 7 
Oklahoma |} 19,256 43, 905 283, 680 14. 73 —.2 | =.3 (*) +9.0 | +8. 1 +31.0 
Region X: | | | 
Louisiana | 15, 269 40, 655 404, 610 26. 50 +2.1 —.7 +4.1 421.9] +15.5 +23. 6 
New Mexico | 2, 004 5, 960 | 55, 225 | 26. 37 +1.0 +.6 +13) 419.2) +165) +25.5 
Region XI | | 
Arizona | 2,462 6, 492 80,068 | 32.52) —1.6 -9.9| -13/ -14] 62 —.5 
Colorado 6, 288 15, 494 192, 183 | 30. 56 —.7 | +.2 +.2 | +16. 0 | +15. 3 | +16.4 
Idaho 2, 987 ‘7,481 89, 005 29. 80 +.6 +.8 +.9 | +8.0; +114 +15.5 
Montana 2, 566 6, 272 74, 952 29. 21 +1.7 +2.0 +2.7; +11.5/) +12.7 +15.9 
Utah 3, 869 10, 037 146, 193 37.79 +1.3 +1.4 +1.5 | +19.0; +27.5 +30. 1 
Wyoming 734 1, 826 23, 602 32. 16 +1.1 -.1 +.3 | 2.7 | 28/ +37 
Region XII | | | 
California 15,710 | 437,609 742, 782 47. 28 +.3 —.2 | +.6 +6.4 +4.3 +12.6 
Oregon 2, 000 13 4, 690 80, 798 40. 40 +1.5 +1.4 | +1.9 +3.6 +3.8 7.1 
Washington 4,992 | 411,825 160, 061 32. 06 | (#1) —.2 +.1] +3.5 +5.8 +9.3 
Territory | 
Hawaii 1, 232 4,017 45, 075 36. 59 —.5 —1.3 |} —2.0 +17.0 +12. 2 +26.7 










' Represents recipients of money payments and/or assistance in kind; 
excludes recipients of medical care, hospitalization, and/or burial only. 

? Data on number of children per 1,000 population under 16 years are not 
included, because population data for that age group as of Apr. 1, 1940, are 
not available 

Represents obligations incurred for month from Federal, State, and local 
funds for money payments and assistance in kind; excludes cost of adminis- 
tration and of medical care, hospitalization, and burial. Allowances for 
medical care and hospitalization included in money payments are not 
excluded. 

‘ Includes an unknown number of children 16 years and over. 

' Comparison for 42 States; excludes South Dakota which did not have an 
approved plan for February 1940 


Bulletin, April 1941 


* Includes approximately 2,940 children 16 years and over. 
’ Increase of less than 0 05 percent. 

* Includes aid to dependent children administered under State law without 
Federal participation. 

* Federal funds available, but no payments were made under approved 
plan for February. 

10 In addition, in 68 counties payments amounting to $13,708 were made 
from local funds without Federal participation to 810 families in behalf of 
1,770 children under the State mothers’-pension law; some of these families 
also received aid under State plan approved by the Social Security Board. 

1! Decrease of less than 0.05 percent. 

12 No approved plan for February 1940. 

18 Includes 602 children 16 years and over. 


55 





Table 13.—Aid to the blind in States with plans approved by the Social Secr--ity Board, by State, February 194) 
[Data reported by State agencies, corrected to Mar. 15, 1941] 
























































Percentage change from— 
7 Amount of Average . a ; | Number of 
Social Security Board region and State | Number of payments to | payment per January 1941 in— February 1940 in— recipients 
recipients recipients ? recipient — -————— pt. J 
Number of Amount of Number of Amount of — 
recipients payments recipients payments 
silicate i-——— 
EE eee ae a 49, 249 $1, 156, 985 $23. 49 +0.3 +0.4 4+6.6 447.2) 4 
n I: —  — 
Connecticut ________. niiiiaennnamices $216 5 5, 350 24. 77 +1.4 —8.4 —14.0 —1.5 | 13 
SR anaanencosucnscchwnswssces 1, 104 24, 942 22. 59 —2.0 —2.1 —11.0 —11.9 130 
"SSSR 1, 157 27, 260 23. —1.0 —.8 —1.0 +1.5 | n 
New (“| SaraRESTEa 32 7,414 23. 10 +1.6 +3.1 -.9 +11 65 
ee 74 1,417 19. 15 (6) (*) (6) (*) 10 
leis canincceramcacsonnind 145 3, 125 21. 55 —14 —21 —5.8 —2.8 | rm) 
Resin II | 
Ey a 2, 870 72, 863 25. 39 +.1 -.1 +3.6 +6.3 
Region III a 
R pow Seraay inenetideddimandaniabaeian 750 17. 699 23. 60 +.8 +1.3 +13. 0 +15. 3 | 18 
n ; | 
District of Columbia--____.._.___- 223 6, 295 28. 23 +.5 +4.2 +7.2 +17. 5 u 
ed ct ainkinacinimannaas 679 14, 698 21. 65 —.4 +.1 +1.6 | +4.8 7 
North Carolina..................... 1, 893 28, 332 14. 97 -.1 +.1 —4.8 | 4.8 53 
Vv ale ith ccnciairettmiindinainida leit 1, 036 13, 053 12. 60 +.8 +.6 +3.5 | +2.8 39 
eam eet 841 14, 989 17. 82 +.5 +11 +4.7 | +14.2 “4 
Region V: 
Ee ae 1, 150 27, 132 23. 59 +2.4 +2.8 +51.5 +48.7 2 
thence docinudnoncimasniend 4, 047 80, 513 19. 89 +.5 +1.2 +3. +5.6 | 59 
Region VI: 
EE eee 2, 403 49, 428 20. 57 -.1 +.3 —2.2 | —.6 70 
nancies eieumaimmdinis 2,014 47, 137 23. 40 —.2 —.2 +.1 | +1.7 64 
Region VII 
areata nina cane aiken nied 613 5, 511 8. 99 (’) +1.4 +7.7 | +8. 2 
TS ee 5 2, 467 5 33, 137 13. 43 —.3 +.4 +14. 4 | +23. 3 5 130 
Geo <8 RE RTS IER 1, 391 14, 910 10. 72 +2.4 +2.9 +27. 4 | +36. 7 45 
cin tmnnnisicdinndauy 8, 305 8. 44 +2.2 +2.7 +43.4 +63 5 
South Carolina 758 7, 972 10. 52 —.4 —1.1 +1.3 +3.2 #0 
RE eae 1, 650 8, 386 11.14 +.1 +.2 +3.0 +3.9 87 
Region VIII: 
1, 517 36, 255 23. 90 +.6 +.8 +5.0 | +-7.2 7 
.—— “<$s§§- | | SS IpGRtes 969 25, 610 26. 43 +.8 +.8 +8. 5 +6. 6 35 
Nebraska_____. é 57 514, 561 20. 57 +.1 +.5 +68 +11.6 54 
TT 229 4, 942 21. 58 —.4 —.2 +60, 1 +65. 4 w 
Ss iscntininininacmwhuniaae 265 4, 559 17. 20 +2.3 +2.6 +142 +14. 7 41 
Region IX: 
a 1, 112 10, 307 9. 27 +.5 +.6 +66, 7 +138. 6 57 
ee 1, 394 29, 903 21. 45 +.7 +16 +16. 5 +21.9 1 
i RS ae 2,171 34, 331 | 15. 81 —.6 —.5 +.4 +4.6 93 
Region X: | | 
Louisiana. --______.  cicaeaaia i leigeheditaiatias 1, 185 19, 818 16.7 +1.0) +2.8 +15. 2 | +141 50 
New Mexico........_._. eumeaalapees 225 4, 288 | 19. 06 +14) +2.8 +5.6 | +20. 4 42 
Region XI: 
eee © 384 10, 455 27. 23 | +.8 +1.2 +14.6 +21.1 7 
Va IE AIS 606 16, 845 27. 80 +1.2 +1.2 (*) —4.3 54 
RSS Rs 279 6, 262 22. 44 +.7 +.2 —1.4 +29 53 
Montana havtitaianddahanaieiead 228 4, 879 21. 40 +3.6 +4.6 +28. 8 +32.4 41 
as ee 187 4,754 25. 42 —1.6 +.5 —9.7 -—12.0 4 
Wyoming-_-_..____. eianieataiaalsals 144 3, 932 27. 31 +.7 +.1 —4.0 | —5.1 57 
Region XII: 
ee ee , 7, 236 350, 342 | 48. 08 (% (*) +4.2 +4. 2 105 
Oregon... . was . a 457 11, 411 | 24. 97 +.2/ +.1 +1.6 | + 42 
ws aR een: 1, 048 32, 593 31. 10 +.3 | +.3 +1.1 +3.3 60 
Territory: | 
a a 69 1,070 15. 51 (®) (®) (®) (*) 16 
! Represents ayn po of money payments and/or assistance in kind; ex- ‘ Comparison for 42 States; excludes Colorado for which data on both re 
cludes recipients of medical care, hospitalization, and/or burial only. cipients and payments are not comparable. 
2 Represents obligations incurred for month from Federal, State, and local 5 Includes aid to the blind administered under State law without Federal 
funds for money payments and assistance in kind; excludes cost of adminis- participation. 
tration and of medical care, hospitalization, and burial. Allowances for * Figures too small for comparison. 
medical care and hospitalization included in money payments are not 7 No change. 
excluded. * Comparable data not available, 
§ Total population as of Apr. 1, 1940, from the U. S. Bureau of the Census. * Increase of less than 0.05 percent. 


56 Social Security 








413 





Table 14.—General relief in the continental United States, by State, February 1941 


[Data reported by State agencies, corrected to Mar. 25, 1941] 












































Percentage change from— 
Number of 
Amount of Average = 
State a. am payments payment January 1941 in February 
to cases ? per case 1940 in 
relief ! amount of 
Number of | Amount of ayments 
cases payments | P@ym 
Total for continental United States 4 1, 229, 000 RS CN Lae ie! Se LE oe 
Total for 41 States ‘ 1, 105, 711 26, 941, 888 $24. 37 —2.2 —5.3 § —25.1 
Alabama 2, 356 21, 061 8. 94 +1.7 +1.9 —9.2 
Arizona 3, 079 47, 945 15. 57 —2.8 —.8 +7.7 
Arkansas. - 4, 392 25, 108 5.7: —.3 —1.3 +38. 5 
California 84, 026 2, 373, 339 28. 25 —5.7 —6.7 —47.5 
Colorado * 15, 181 196, 677 12. 96 —3.3 —5.3 —.2 
Connecticut 12, 962 355, 253 27. 41 —2.5 —5.5 —31.1 
Delaware. - 1, 087 23, 272 21. 41 —3.3 —9.4 —43.0 
District of Columbia 2, 157 53, 642 24. 87 +4.3 +3.2 —9.1 
Florida 7, 975 57,417 7.20 —I1L4 —3.9 —10.1 
ETE asa hr nesiccllaiaSemiaiia bien ieseaiellicnaiaiec saa 6, 473 , 6. 52 —5.8 —5.5 +1.6 
Idaho 2, 335 35, 15. 33 —1.7 —.8 +4.7 
Illinois 147, 193 3, 411, 677 23. 18 —2.4 —2.4 —11.1 
Indiana’ 43, 090 620, 6 14. 40 —3.2 —9.2 —24.2 
lowa..-- 27, 048 434, 214 16. 05 —1.1 —6.0 —20.7 
Kansas : he 16, 290 255, 191 15. 67 +1.9 +5.4 — 26.8 
Kentucky puawinietl § 6, 000 5 56, 000 ee. eee Se sl ieiicnindedomeninanai 
Louisiana ; " 2 11, 575 179, 828 15. 54 +3.8 +4.8 +1.2 
Maine. . 9, 568 200, 262 20. 93 —5.1 —12.0 —24.4 
Maryland ae ‘aa onbielh 8, 665 192, 510 22. 22 -.1 —.4 —15.8 
Massachusetts . stdlintimiiatiiinadndds aia 49, 894 1, 297, 319 26. 00 —5.4 —11.0 (%) 
Michigan 50, 329 1, 099, 308 21. 84 —2.1 —8.1 —26.3 
Minnesota 33, 705 798, 128 23. 68 —3.2 —1L2 —26.4 
Mississippi 916 2, 2. 93 +1.4 -18 —40.3 
Missouri 24, 669 351, 089 14, 23 —14 —4.0 —18.2 
Montana 4, 137 64, 328 15. 55 —10.7 —10.2 —-.1 
Nebraska 10, 050 120, 679 12. 01 +1.9 +1.2 —7.8 
Nevada 502 7, 702 15. 34 —9.1 —2.6 —2.7 
New Hampshire 8 6, 500 J  ),2e Ss ae . ae Ses See 
New Jersey ’ 37, 649 889, 956 23. 64 —1.3 —5.1 —35.7 
New Mexico ! 1, 837 15, 751 8. 57 +4.7 14.0 +15. 5 
New York 11 236, 482 8, 917, 367 37.71 —.4 —1.0 —9.7 
North Carolina 5, 644 36, 355 6.44 —.4 —6.9 () 
North Dakota 3, 736 50, 748 13. 58 —8.9 —9.8 +.6 
Ohio 76, 151 1, 382, 400 18.15 —.8 —5.0 —32.3 
Oklahoma 1212, 116 55, 306 (33) (12) —8.1 —39.3 
Oregon 8, 887 141, 191 15. 89 —8.8 —7.7 —15.2 
Pennsylvania 152, 455 3, 408, 498 22. 36 —2.2 —14.9 —43.5 
Rhode Island '3 4, 962 168, 458 33. 95 —5.6 —22.4 —43.6 
South Carolina 2, 132 17, 474 8. 20 —.2 —2.4 —-L0 
South Dakota 5, 128 71, 758 13. 99 +2.7 +1.9 +9. 2 
Tennessee § 3, 400 |) ° | eee SEE ere, Eee 
Texas 11, 050 92, 73 8. 39 —.9 —2.0 —19.7 
Utah 5, 283 118, 007 22. 34 —3.7 —4.8 —15.5 
Vermont 2, 367 39, 266 16. 59 —6.4 —14.4 —15.9 
Virginia 6, 074 58, 914 9. 70 +3.8 +7.3 —32.4 
Washington 15, 965 253, 932 15. 91 —8.2 —9.3 —17.5 
West Virginia 12, 131 108, 325 | 8. 93 +2.3 +3.9 —21.2 
Wisconsin 37, 505 755, 503 | 20.14 —-18 —11.9 —30.3 
Wyoming 1, 501 23, 693 | 15. 78 | +3.9 +8.4 —11.8 








! Represents cases receiving money payments and/or assistance in kind; 
excludes cases of medical care, hospitalization, and/or burial only. 

’ Represents obligations incurred during month from State and local funds 
for money payments and assistance in kind; excludes payments for medical 
care, hospitalization, and burial. Allowances for medical care and hospitaliza- 
tion included in money payments are not excluded. Also excludes cost of 
administration, of materials, equipment, and other items incident to opera- 
tion of work-relief programs, and of special programs. 

? Partly estimated. Does not represent sum of State figures because totals 
are estimated to exclude all cases receiving medical care, hospitalization, and/or 
burial only, and total payments for these services. 

‘Excludes Kentucky, New Hampshire, and Tennessee for which figures 
are estimated; Colorado, Indiana, New Jersey, and Rhode Island for which 
data include cases receiving medical care, hospitalization, and/or burial 
only; and Oklahoma (see footnote 12). 

' Comparison for 39 States. In addition to States mentioned in footnote 4, 
Massachusetts and North Carolina are also excluded because comparable 
data are not available. 


Bulletin, April 1941 


6 Includes unknown number of cases receiving medical care only and total 
payments for this service. 

7 Includes unknown number of cases receiving medical care, hospitaliza- 
tion, and/or burial only, and total payments for these services. 

5 Estimated. 

* Comparable data not available. 

o. a program only; does not include program administered by local 
officials. 

11 Includes cases receiving medical care only; number believed by State 
agency to be insignificant. f 

12 Includes 5,266 cases aided under program administered by State board 
of public welfare, and 6,850 cases aided by county commissioners; duplication 
in cases aided believed to be large; average per case and percentage change in 
number of cases cannot be computed. 

13 State unemployment relief program only. Includes unknown number 
of cases receiving medical care and/or hospitalization only, and total payments 
for these services. It is estimated that, in addition, 2,800 cases received 
$51,000 from local relief officials. 


57 








Statistics by States, January 1941 


Total expenditures greater than in December in in December in 33 States (table 15). Increases 
two-thirds of the States——In January 1941 total occurred in earnings of persons employed op 
payments to recipients of public assistance and WPA projects in 26 States. Total earnings of 
earnings under the several Federal work programs __ persons enrolled in the CCC increased in 38 States, 
in the continental United States were greater than Obligations incurred for general relief increased 


Table 15.—Public assistance and Federal work programs: Assistance and earnings in the continental United States, 
by State, January 1941! 


{In thousands] 


























Assistance to recipients Earnings of persons employed under Federal work 
programs 
| National Youth Ot —— - 
Special types of public assistance Subsistence Nationa! *0 ther | on regular 
State | Total | Smaealite wines payments Civili counenaemeubnanet —_ Federal | Federal 
a certified by | ©iVilian W ork agency | construc- 
General Sarr, | ©onser- Projects | projects tion 
Aidto | 3 relief ——_ vation Student Out-of- | Adminis-| financed | projects 
Se. dependent Pan Ae Adeninio- Corps wast — tration from : 
hee children tration program program , 4 y 
| | 
Total... ....-|"$222, 262 | $42,521 | — $12, 295 | $1, 862 | 3 $30. 561 $1,455 | $17,110} $2,757 | $7,901 | $103,514 2$2,286 | $103, 028 
Alabama.._.__. ‘ 3, 241 | 186 | Sl 5 21 164 628 6l 160 1, 889 4 1, 357 
Arizona.___.___- 1, 047 240 | 81 10 | 48 131 123 13 25 373 434 
Arkansas_- 2, 949 199 | 86 | 10 | 25 6 | 734 36 160 1, 693 ‘ 1, 3R8 
California... _____- | 16,249 5, 745 | 739 350 | 2, 545 217 456 159 383 5, 601 54 7, 808 
Colorado OTT 3, 580 1, 452 192 | 17 | 5 208 19 193 31 64 1, 354 ( Ree 
Connecticut _ _ _ ._. 2, 074 492 61 6 | 376 (*) 60 21 79 O76 1, 005 
Delaware________. ‘ 260 2 20 j 26 (4) 19 4 14 149 198 
District of Columbia 1, 127 &8 36 6 52 §l 17 27 721 2 2, 405 
Florida 2, 864 | 476 95 | 33 | 60 4 254 29 74 1, 747 62 4, 095 
Georgia. ___. 3, 237 340 | a 14 45 &3 581 61 184 1,81 1, 976 
Idaho . 1, 07 205 | 88 | 6 36 24 68 15 33 600 53 
Illinois......_. 16, 708 3,170 | 169 | 232 3, 495 13 774 1M 522 7, 762 $17 2, 406 
Indiana. .__... 5, 656 1, 222 | 494 | 49 ¢ 683 4 317 76 208 2, 57¢ 2 2 R68 
erie Eee 3, 526 1, 173 | 66 36 462 3 178 55 190 1, 360 137 
Kansas... _- : 2,799 568 196 | 29 242 | 33 242 6 92 1, 339 ? 1, 609 
Kentucky 3, 076 483 716 | 53 8 480 48 162 1, 80 2 1, 682 
Louisiana 3, 005 | 443 389 19 172 16 416 58 104 1,478 5, 513 
Maine : shies 1, 17 272 63 25 228 5 112 5 62 “4 567 
Maryland._..____. : 1, 731 323 221 | 15 193 2 117 7 61 720 52 6, 687 
Massachusetts. __- 10, 634 | 2, 513 742 27 | 1, 457 (4) 354 81 281 5, 129 5 6, 993 
Michigan. _. 8, 607 1, 322 827 | 26 1, 196 10 490 101 331 4, 204 1 ag! 
Minnesota... 5, 943 1, 332 | 321 | 25 | 808 31 473 64 172 2,712 5 1% 
Mississippi. . | 2,433 220 | 71] 8 | 3 22 473 43 116 1, Sat 1, 586 
Missouri 7, 210 1,949 394 79 366 30 725 76 211 3, 207 83 1, 465 
Montana. --___- 1, 233 239 73 5 72 | 31 123 16 32 640 2 118 
Nebraska__.___. 2, 643 552 181 14 =| | 118 187 37 s4 1, 292 59 91 
Nevada. _. 195 61 3 (‘) 1 21 2 4 95 ‘ 119 
New Hampshire __ 785 143 23 7 17 2 1 33 Q 2s sO ‘ 1, 145 
New Jersey __..._- | 6, 817 659 350 17 6 937 1 267 60 273 4, 165 SS 4, 502 
New Mexico .. 1, 138 M 55 4 514 2 206 12 33 fis 63 0 
New York. _ 25, 325 3, 038 | 1, 601 73 9, 006 8 S41 275 RA7 9, 372 224 5, 368 
North Carolina. __- 3, 360 | 375 | 163 | 28 | 39 47 481 -3 206 1, 04 3 2, 461 
North Dakota..........| 1,279 152 76 | 5 | 56 | 28 192 20 48 701 i 10 
Ohio sabeal petaiaiedll 12, 135 3, 095 450 | 80 1, 455 6 | 714 | 135 314 5, 613 273 1,14 
Oklahoma. -...........- | 4,371 1, 346 | 24 35 60 | 20 | 654 70 195 1, 693 14 521 
SIRS | 1,726 | 422 | 79 il 153 | 16 | 124 36 46 837 2 468 
Pennsylvania. - ee -| 18, 778 2, 194 | 1, 961 400 4, 004 10 1, 124 190 54 8, 186 115 6, 334 
Rhode Island...._____ “| 1,249 140 60 | 1 *217 | 49 13 48 700 21 2, 008 
South Carolina... _.____| 2,614 | 136 | 50 | 8 18 37 348 41 05 1, 672 209 2, 664 
South Dakota____. | 1,416 | 287 23 4 | 72 123 164 ri 41 673 2 37 
| 
Tennessee... . _. 3, 088 406 | 266 18 | 724 4 | 584 57 159 1, 527 43 3, 738 
REC ee 7, 668 1, 682 | ) 95 90 | 1, 120 145 440 4, 064 31 7, 165 
Utah... piabedieuecl 1, 423 309 | 144 | - 5 124 | 7 58 23 39 690 24 lll 
Bis nttcckcicconn 430 | 86 | 20 | 3 | 46 | 1 | 2 8 | 17 227 7 
i “ws ERS 2, 068 197 | 81 13 | 55 | 6 506 47 | 148 1, 008 7 7, 101 
Washington _........... 3, 325 922 | 160 32 280 20 196 41 87 1, 536 51 3, 268 
West Virginia..........- 2,815 | 260 | 203 | 15 | 104 8 | 321 38 136 1, 717 13 166 
NG Sic nsscsatencictace | 5, 967 | 1, 209 | 478 47 | 857 | 33 | 393 77 219 2, 645 9 109 
Wyoming...._-........- | 359 | 83 24 | 4 22 | 12 | 34 4 15 157 4 186 
1 See footnotes to table 7. ? Estimated. 
? Includes less than $500 not reported by State. * State program only; does not include payments made under program 
3 Partly estimated; does not represent total of State figures, because total administered by local officials. 
payments for medical care, hospitalization, and burial are excluded. * State unemployment relief program only. Includes total payments for 
4 Less than $500. medical care and hospitalization. In addition, $546,000 estimated as expende 
5 Includes total payments for medical car by local relief officials. 


* Includes total payments for medical ane, hospitalization, and burial. 


58 Social Security 





from December in 32 States and subsistence pay- 
ments by the FSA in 31 States. Small increases 
in the amount of obligations incurred for payments 


Earnings under the out-of-school work program 
of the NYA were greater than in December in all 
but one State, but earnings under the student 














2&SeES 
lon | torecipients of old-age assistance were reported by work program decreased in 47 States. Earnings 
s of 33 States; to families and children receiving aid to of employees on other Federal agency projects 
ates dependent children, by 35 States; and to recipients _ financed from emergency funds declined in 26 
ased of aid to the blind, by 27 States. States. 
Table 16.—Public assistance and Federal work programs: Recipients of assistance and persons employed in the 
=em, continental United States, by State, January 1941! 
Recipients of assistance Persons employed under Federal work programs 
— 
cg. niles  pubite Pan Cases for National Youth Other Ra A 
a (SS which sub- Administration Sheen ae Saline 
State Cases | — PaY- | Civilian —| Work | agency | Federal 
nings nat on dieiaiiies receiving | ™ tified by | Conser- Projects | projects | construc- 
‘gular “aioe aa T general | “tr Fe 'Y | vation | gingent | Out-of- | Adminis-| financed |tion proj- 
— Old-age ae the x relief ‘Geemate | Corps : ee school tration |fromemerj ects 
; ‘. tance ba ? | - : | 2 
—y seer at ; blind Adminis- | program ie ae 
jects Families Children tration 
Total 2, 074, 933 376, 151 9O8, 205 | 73,347 | ? 1, 257, 000 57, 431 258, 263 442, 025 419, 185 |1, 858,069 | 3 18, 027 717, 996 
> Alabama 20, 215 5, 881 17, 285 613 2, 316 6, 568 9, 476 11, 537 9, 338 40, 776 354 11, 997 
3, 028 Arizona 8, 548 2, 502 7, 202 381 | 3, 169 5, 916 1, 854 1, 905 1417 | 6,428 | 25 3, 080 
st Arkansas 25, 442 6, 255 5,865 | 1, 106 | 4, 406 | 231 11, 080 | 7, 746 11, 208 39, 632 12 10, 162 
1, 357 California 740 15. 666 37,666 | 7,285 | 89, 093 | 10, 167 | 6,887 | 19, 674 20, 262 | 80, 819 | 388 50, 871 
434 Colorado 41, 84 6, 331 15, 469 99 415, 701 861 | 2, 906 4, 783 3, 335 21, 855 344 3, 184 
1, 388 Connecticut 17, 493 1, 355 3, O84 213 13, 205 2 | 909 3, 037 3,794 | 13, 964 | 22 7, 391 
7, 898 Delaware 2, 490 581 1, 609 1, 124 9 | 292 591 879 | 2,715 | 1, 769 
" 988 District of Columbia 5, 449 943 2, 825 222 2, 069 773 1, 660 1,502 | 10,504] 1,029 13, 802 
1. 008 Florida 87, TRE 4, 334 10,822 | 2,474 9, 003 | 112 | 4,204 5, 143 4, 339 34, 426 666 33, 083 
198 Georgia 11, O82 4, 821 12, 199 1, 359 6, 873 | 1, 806 8, 766 11, 713 9, 989 42, 092 | 102 17, 657 
? £ | 
eo Idaho , 12 2, 969 7, 425 27 2, 376 | 686 1, 024 2, 460 1, 487 9, 930 | 17 527 
1. 976 Illinois 142, 702 7,454 16, 579 7, 659 150, 756 | 72 11, 684 | 24, 794 24, 246 127, 329 | 2, 409 15, 423 
Indiana 67, 278 17, 331 35,594 | 2,40 44, 496 161 | 4, 782 12, 140 11, 186 47, 050 | 232 17, 643 
53 lowa WH, 407 3, S81 8, 184 1, 508 | 27, 339 | 144 | 2, 679 8, 149 11, 250 25, 838 | 33 1, 575 
2, 406 Kansas 2m 149 6.514 15, 301 1, 384 15, 990 | 1, 973 | 3, 657 9, 637 4,760 | 26,874 16 10, 934 
2 868 Kentucky 4, 134 6370 61. 200 65,700 | 89 7, 240 9, 423 9, 968 38, 727 | 227 11, 361 
"137 Louisiana 4, 511 14, 958 40, 954 1, 173 11, 148 552 6, 273 8, 599 5,607 | 30,728 | l 41, 572 
1, 6090 Maine 13, ORE 1, 508 4, 036 1, 126 10, (86 169 | 1, 681 2, 062 2, 642 7, 488 | l 4, 681 
1, AR2 Maryland 8, 159 7, 046 18, 975 682 8, 676 94 1, 760 3, 888 3, 912 12, 382 601 30, 704 
5, 513 Massachusetts 86, 926 12, 612 31, 253 1, 169 52, 753 13 5, 341 11, 982 15, 181 80, 938 | 417 42, 746 
567 
} po Michigan 78, 721 20, 329 48, 773 1, 123 51, 417 | 431 7, 401 15, 179 14, 875 68, 261 106 8, 942 
5, 993 Minnesota 62, 918 9, 260 21, 901 961 34, 825 | 1, 576 7, 144 10, 042 10, 084 47, 837 64 2, 131 
Mississippi 25, 564 6104 6 162 963 903 580 7, 140 | 8, 188 6, 626 37, 740 | 26 15, 544 
ag1 Missouri 109, 140 13, 179 30, 944 | 63, 200 25, O11 | 1, 686 10, 941 13, 107 13, 342 62, 670 792 16, 134 
196 Montana 12, 206 2, 522 6, 149 220 4, 633 1, 41 1, 859 2, 943 1, 706 11, 201 | 15 979 
586 Nebraska 28, 550) 5, 747 12, 767 707 9, 860 4, 592 2, 821 6, 131 4,898 | 24,273 666 1, 012 
"465 Nevada 2, 303 103 256 13 552 17 316 287 | 264 | 1, 751 3 837 
118 New Hampshir 6, 673 615 1, 425 316 6, 956 36 44s 1, 302 1, 346 | 6, 910 | 2 7, 188 
91 New Jersey 41, 327 11, 181 25, 250 744 38, 154 25 4, 030 9, 586 13, 816 62, 864 514 27, 239 
119 New Mexico 4 889 2, 074 5, 927 222 71,754 72 3, 117 1, 932 1, 837 11, 630 | 408 926 
i New York 121, 217 34, 284 67, 382 2, 867 § 237, 375 302 12, 695 41, 233 39, 418 138, 267 | 1, 755 32, 940 
90 North Carolina 16, GSS 9, 736 23, 716 1, 804 5, 669 | 430 7, 263 11, 481 12, 043 44, 595 | 32 25, 499 
North Dakota 9, O11 2, 456 6, 794 230 , 102 1, 370 2, 894 3, 882 2,211 | 13, 267 | 8 140 
368 Ohio 134, 548 11, 330 30, 781 4 027 76, 775 269 | 10, 774 20, 564 16, 443 105, 970 | 2, 108 8, 192 
461 Oklahoma 75, 310 19, 287 44,084 | 2,184 * 12, 164 731 | 9, 879 13, 170 9,878 | 42,806 | 156 5, 001 
10 Oregon 19, 759 1, 970 4, 625 16 9, 744 461 | 1, 868 | 4, 967 2, 345 12, 877 | 22 3, 386 
14 Pennsylvania 100, 302 53, 596 132, 645 | 13, 439 155, 893 353 | 16,971 | 30,317 30,716 | 135, 202 933 38, 200 
52] Rhode Island 6, 974 1, 208 3, 703 70 0 5, 254 5 742 1, 748 2,878 | 11,176 173 12, 419 
468 South Carolina 17, 304 3, O56 9, 069 761 2, 137 858 5, 247 7, 584 6,325 | 33,883 1, 660 24, 630 
364 South Dakota 14, 926 w2 2, 221 259 5, 128 6, 893 2, 474 5, 516 2, 060 13, 124 1] 492 
0oR8 | 
664 Tennessee 40. 173 14.379 36, 232 1,649 63, 300 R1 8, 816 11, 103 10, 615 35, 190 416 23, 959 
37 Texas 120, 863 AS 6 230 11, 153 2, 001 16, 903 21, 398 25, O84 92, 915 | 368 54, 939 
Utah 13, 692 3, 820 9, 899 190 5, 486 248 SSO) 3, 719 2,044 | 10, 927 | 193 899 
738 Vermont 5, 183 624 1, 740 147 2. 530 29 332 1, 161 755 4, 200 |... 103 
165 Virginia 19, 782 3, 987 11,963 | 1,028 5, 850 87 7, 645 8, 085 8, 858 23, 351 66 51, 896 
11 Washington 40, 419 4, 993 11, 851 1, 045 17, 382 f44 2, 948 6, 076 4,320 | 24,604 343 20, 189 
7 West Virginia 18, 515 8, 667 23, 519 837 11, 854 101 4, 846 6, 982 6, 579 32, 045 180 1, 547 
101 Wisconsin 53, 485 12, 646 28,742 | 2,017 38, 210 1, 419 5, 938 12, 681 10,615 | 45, 156 67 957 
268 Wyoming 3, 461 726 1, 828 143 1, 445 468 513 738 902 | 2, 792 43 1,514 
166 
109 
186 ! See footnotes to table 8 * Includes cases receiving medical care only; number believed by State 
? Partly estimated; does not represent total of State figures, because data agency to be insignificant. 
_ are estimated to exclude all cases receiving medical care, hospitalization, * Represents 5,309 cases aided under program administered by State Board 
and/or burial only of Public Welfare, and 6,855 cases aided by county commissioners; amount 
mn ‘Includes 1 person not reported by State. of duplication in cases believed to be large. _ 
‘ Includes an unknown number of cases receiving medical care only. 10 State unemployment relief program only; includes an unknown number 
for ‘Includes an unknown number of cases receiving medical care, hospitali of cases receiving medical care and/or hospitalization only. In addition, 
ed zation, and/or burial only. 2,800 cases estimated to have been aided by local relief officials. 


* Estimated 
’ State program only; does not include an unknown number of cases aided 
by local officials 


Bulletin, April 1911 


59 








Statistics for Urban Areas, January 1941 


Total expenditures in January 1941 slightly above 
December but considerably below January 1940.— 
In January 1941, total expenditures for public and 
private aid in 116 urban areas in the United States 
amounted to $87.9 million, an increase of 0.9 per- 
cent over the December totals but a decrease of 
6.7 percent from expenditures for January 1940 
(tables 17 and18). Of the total amount expended, 
$42.5 million, or 48.3 percent, represented earn- 
ings of persons employed on projects operated by 
the WPA; $22.5 million or 25.6 percent, payments 
to recipients of the special types of public assist- 
ance; and $22.1 million or 25.1 percent, general 
relief from public funds. Private assistance 
amounted to $880,000, only 1.0 percent of total 
payments. None of the programs increased 
significantly from the previous month. 

The largest decrease from January 1940—in 


Table 17.—Public and private assistance and earnings 
of persons employed on projects operated by the 
Work Projects Administration in 116 urban areas, 
January 1941 

[Corrected to Mar. 20, 1941] 















































Percentage Percentage dis- 
| change from—{ _—tributon 
Type of funds | Amount! | | | De 
| |Decem-) Janu- | Jan- | m- Janu- 
| ber | ary | uary) ber | 2°y 
1940 | 1940 | 1941 | 1940 1940 
| | =e 
ees _...|$87, 963, 283 | +0.9 6.7 |100.0 100.0 | 100.0 
Publie....................-| 86,983,340 | +1.1 | -6.7/ 99.0 988) 99.0 
Special types Ral public 
assistance ?__.______- | 22, 474, 443 +1.6 +12.0 | 25.6 | 25.4) 21.3 
eaten omeaiaal | 15, 876, 686 | +1.4 |+11.1 | 18.1) 180) 15.2 
Aid to dependent chil | | 
AS i a 5, 809, 334 | +2.4 ” 4) 6.6 65) 5.3 
Aid to the biind 1 niall a8, 423 | (3) 49/ .9/ .9 8 
General relief ¢.- ......|°22, 054, 465 +2.0 3 | 25.1 | 24.8 | 29.4 
WPA earnings *.___-_.___- | 42, 454,432) +.4 | 6.6 | 48.3 48.6) 48.3 
SS aS | $879,943 9-142 9-84) 10, 12) «1.0 





1 Excludes cost of administration, of materials, equipment, and other items 
incident to operation of work programs, and of transient care. Data for as- 
sistance programs include obligations incurred for burials, in addition to 
obligations incurred for money payments, assistance in kind, medical care, 
and hospitalization. 

2 Includes data for areas in States with plans approved by the Social Se- 
curity Act Board and for areas in States not participating under the Social Se- 

yA 
4 of less than 0.05 percent. 

4 Includes direct and work relief and statutory aid to veterans administered 
on basis of need. 

5 Includes $5,275 administered by private agencies. 

* Data from the WPA, Division of Statistics; re pees earnings of persons 
employed o. Ae rated by the WPA wit. hese areas and cover all 
oie perio ended during month. Data are not available for these areas 
owning of persons employed on projects other than those operated by the 


? Includes direct and work relief and aid to veterans. 

* Includes $1,801 administered by public agencies. Includes estimate of 
$134,049 of which $129,485 ~~ expenditures of agencies for which 
monthly ry are not avail 

* Based on data from agencies reporting monthly. 


60 


Chart 3.—Payments to recipients of the special types 
of public assistance in 116 urban areas, Jan uary 1929. 


Ltt tt 


—— OF DOLLARS 
| 












































om1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 


terms both of the actual amount and the percent- 
age (20.3 percent)—was in obligations incurred 
for general relief from public funds. A decrease 
of 6.6 percent was reported in earnings on projects 
operated by the WPA. Assistance payments 
from private funds also were less than in the pre- 
vious year. Total payments for the special types 
of public assistance, on the other hand, were 12.0 
percent larger in January 1941. Monthly assist- 
ance payments for old-age assistance were 11.1 
percent greater; for aid to dependent children, 
15.4 percent; and for aid to the blind, 4.9 percent. 

The change from December in aggregate expend- 
itures for all areas combined reflects increases in 
total payments in 60, and decreases in 56, of the 
116 urban areas. In 25 areas increases from De- 
cember were 10 percent or more. Significant 
decreases were reported for 18 areas. 


General Relief Operations of Public Agencies in 

Selected Large Cities 

Beginning with this issue, publication in the 
Bulletin of monthly data on general relief opera- 
tions in selected large cities will be discontinued. 
In the future, detailed analysis of these data will 
be published in the Bulletin semiannually. 
Monthly data are available in a release entitled 
“Comparative Statistics of General Relief Oper- 
ations of Public Agencies in Selected Large Cities.” 


Social Security 








types 
+1929. | 











194) 


ent- 
rred 
ease 
ects 
ents 
pre- 
rpes 
12.0 
sist- 
(1.1 
ren, 
ant. 
nd- 
; in 
the 
Je- 
ant 


rill 


Table 18.—Public and private assistance and earnings of persons employed on projects operated by the 
Work Projects Administration, by urban area, January 1941 


[Corrected to Mar. 20, 1941] 


















































; ro 
Public funds oop: n total 
. from— 
State and urban area | Area included Total! private 
Aid to Aid to , De- | Janu- 
Total Ba dependent! the —- al aan S ‘ cember| ary 
| . children ?| blind ? ng 1940 | 1940 
————— 
labama: B 
Birmingham - | County. $463, 381 | $462, 898 $22, 614 $22, 499 $873 $6,406 | $410, 506 $483 | +22.3/) +10.6 
Mobile. - hk ica 129,243 | 128, 936 7, 203 1, 956 137 897 | 118,743 307; -97] -68 
fornia: | 
a |____do 5, 614,057 | 5,587,525 | 2,346,650 | 256,803 | 166,038 | 1, 105,712 | 1,712, 322 26,532} —.2| —10.1 
Oakland do 1, 192, 221 | 1, 189, 491 327, 663 51,304 | 24,999 37, 988 647, 537 2,730 | +14.2) —16.2 
Sacramento... do ae 302, 034 300, 058 142, 462 21, 677 7, 462 35, 449 93, 008 1, 976 +4.4 —11.3 
San Diego -do 608, 650 | 607, 199 , 994 32, 464 | 13, 199 59,239 | 202, 303 1,451 | —3.1| —144 
San Francisco - do 1, 491, 733 | 1, 471,020 437, 025 58,666 | 26,829 211, 517 736, 983 20, 713 —2.6 —19.8 
Colorado: Denver ..| do .-| 894,828 | 891,510] 401, 456 63,398 | 4,079 70,907 | 351, 670 3,318 | +10.3) +1.8 
cticut | 
"eet... | City | 181,372| 178,687| 37,576 6, 276 759 | ¢31,305| 102, 71 2,685 | +19.0| —7.9 
Hartford ‘ | do | 250,494 238, 736 58, 794 6, 908 946 6 91, 224 y 11, 758 +2. 2 —11.2 
New Britain---- do pall 51, 373 51, 143 13, 534 2, 448 94 6 5, 260 29, 807 —11.0 —33. 1 
New Haven. -....-.-.-.. do | 257,070 254, 115 57, 768 7, 648 1, 068 6 57, 308 130, 323 2,955 | +3.9 —13.7 
Delaware: Wilmington... County |} 173,711 169, 871 17, 800 BAUD Liscsnnues 23, 794 116, 136 3,840 | —7.1 —.4 
Dist. of Col.: Washington City | 800, 083 780, 586 88, 936 35, 920 6, 040 52, 453 597, 237 $19,497 | —12.0| +13.6 
lorida | 
ag County .. | 335,305 | 334, 255 48, 438 9,512} 3,254 6,173 | 266,878 1,05} —5.6)] 9.1 
Miami-....- do__.. 140, 096 132, 177 38, 631 12, 092 2, 535 6, 137 72, 782 7,919 —3.2 -.8 
Georgia: Atlanta do.’.. | 523, 329 516, 400 38, 336 23, 034 2, 599 25, 907 426, 524 6,929 | +5.2) +29.0 
Illinois: 
Chicago 7 __ ear | 8,061, 734 | 7,975,856 | 1, 281, 653 78,604 | 69,936 | 2,449,812 | 4,095, 851 85, 87: +3.2 —2.0 
Springfield do 266, 359 263, 846 57, 223 2, 565 4, 451 54, 666 144, 941 2, 513 +.4 —2.8 
Indiana: 
Evansville do , 256,716 | 255,816 43, 349 23, 564 1, 659 64, = 123, 165 900 —3.9 —13.5 
Fort Wayne do -| 190, 662 188, 460 45, 506 21, 188 1, 425 30, 610 89, 731 2, 202 —2.4 —19.0 
Indianapolis... ..do | 772,281 764, 557 137, 754 70, 340 6, 897 95, 886 453, 680 7,724 | +26.5 —4.2 
South Bend. do 207, 127 206, 550 40, 795 20,729 | 1,025 40, rn 103, 433 577 —2.9 —20.2 
Terre Haute RSE | 349, 574 348, 304 59, 494 24, 011 2, 206 31, 474 231, 209 $1,180 | +343 +16.2 
lowa: 
P Des Moines do 497,279 | 496, 139 99, 449 3, 657 5, 882 79, 281 307, 870 1, 140 —1.0 +.3 
Sioux City -. ..do 205, 391 | 204, 632 48, 511 4,079 1, 937 64, 273 85, 832 759 | +65.0 —4.9 
Kansas: 
Kansas City do | 306,883 | 306,620 36, 650 16, 431 2,177 26, 007 225, 355 263 | +21.1 +10.9 
Topeka do 130, 374 129, 179 21, 639 8, 269 1, 259 11, 619 86, 393 1,195 | —20.9 (4) 
Wichita. . do.. | 219,120 | 218,165 | 46,805 18, 978 2,179 66, 593 83, 610 955| -18| +169 
Kentucky: Louisville ..do 353,628 | 348,161 | 41, 874 | 31, 699 258, 573 5, 467 | +20.3 +76. 4 
Louisiana: | | 
New Orleans Parish 969, 887 | 950, 895 $1, 268 122, 202 6, 834 52, 107 697, 484 69, 992 +42 —5.6 
Shreveport a 69, 964 69, 820 21, 127 19, 797 827 10, 996 17, 073 144 —.4 +20. 1 
Maine: Portland City 101, 586 99, 957 18,7 4, 668 1, 227 6 18, 558 56, 710 1,629; —6.3 —.2 
Maryland: Baltimore do 680, 122 666, 155 163, 215 128, 901 9, 415 167, 533 197, 091 13, 967 —4.7 —13.7 
Massachusetts: | 
Boston ..do 2, 554, 596 | 2, 478, 827 485, 033 273, 110 8, 002 440, 991 | 1, 271, 691 75, 769 | —14.0 —12.9 
Brockton do... 204, 001 201, 590 , 146 8, 146 398 38, 701 199 2, 411 —4.2 —7.6 
Cambridge do.. 328, 566 325, 076 |, 000 27, 378 925 79, 515 167, 258 3,490 | +21.8 +16.7 
Fall River .do | 265, 697 265, 567 60, 259 13, 010 818 64, 771 126, 709 130 —15 —11.7 
Lawrence do.. | 168,704 167, 288 48, 260 6, 270 591 * 35, 768 76, 399 1,416 | —18.4 —22.4 
Lowell. = 304, 216 301, 942 72, 571 16, 008 948 55, 456 156, 959 2,274 | —16.5 — 28.4 
Lynn do | 267,046 263, 878 80, 207 12, 389 807 59, 099 111, 376 3, 168 +2.0 —7.5 
Malden do 167, 386 167, 353 34, 605 7, 038 352 35, 833 89, 525 33 | +29.5 | +32.5 
New Bedford do 241, 579 240, 301 81, 781 12, 882 1, 084 36, 369 108, 185 1, 278 —7.3 —14.3 
Newton. . do 98, 394 96, 891 21,013 9, 615 152 23, 628 42, 483 1, 503 | +19.0 —11.4 
Springfield do 347, 712 345, 268 89, 100 23, 905 927 80, 319 151,017 2, 444 +6. 6 —8.3 
Mi aoa” od piMiicasenes | 412,777 408, 259 102, 834 29, 370 717 121, 842 153, 496 4, 518 +8.7 —8.8 
Michigan: 
Detroit .__.. County 3, 155,311 | 3, 140, 526 263, 211 379, 645 5, 834 876, 333 | 1,615, 503 6 14, 785 +1.4 —9.5 
Flint do 386, 382 386, 224 55, 743 29, 549 639 44, 706 255, 587 158 | +21.5 +15.5 
Grand Rapids do | 887, 464 386, 894 106, 239 30, 764 2, 090 64, 899 182, 902 570 -. —I1L1 
Pontiac .do. | 245, 007 244, 854 §2, 429 26, 913 1, 358 27,715 136, 439 153 | +14.3 —23.4 
Mi Saginaw do... ‘ 182, 081 181, 46 29, 876 18, 762 808 31, 005 101, 195 435 | +28.3 —19.2 
Minnesota: | 
Duluth_. — ii 605, 170 600, 826 99, 817 38, 325 2, 772 152, 237 307, 675 4, 344 +.9 —18.5 
Minneapolis .do ...-| 1,361, 463 | 1, 354, 260 287, 505 56, 667 5, 986 309, 858 694, 244 7, 203 +3.1 —3.3 
Mi St. Paul do .-| 650,027 645, 896 110, 092 29, 262 3, 436 209, 678 293, 428 4,131 —8.4 —11.6 
Missouri: 
Kansas City do | 729, 785 717, 671 210, 519 28,087 | °9, 257 106, 786 363, 022 12,114 | +13.9| —17.6 
_ St. Louis City and county 1, 461, 292 | 1, 436, 788 294, 108 92, 132 | ° 15, 102 143, 872 891, 574 24, 504 +7.0 +51.4 
ichentie: Omaha County ..-.-| 482,208; 471,741 92, 538 6 42, 086 2, 638 29, 285 305, 194 10, 557 —.3 +13.8 
ew Jersey: | 
Jersey City.. City... | 270, 7 270, 241 28, 276 27, 079 1, 135 79, 603 134, 148 § 459 +.4 —26.5 
Newark SE | 928, 762 925, 646 68, 268 67, 609 2, 716 302, 703 484, 350 3, 116 +6. 1 —16.3 
Trenton..__. y eRe | 181,157 | 178,911! 17, 930 14, 266 8 24, 592 121, 270 $2,246! +5.1 +19. 2 
See footnotes at end of table; 
Bulletin, April 1941 61 





Table 18.—Public and private assistance and earnings of persons employed on projects operated by the 
Work Projects Administration, by urban area, January 1941—Continued 


[Corrected to Mar. 20, 1941] 





























—es 
Percen 
Public funds change ay 
: from— 
State and urban area Area included Total: ———— eat ~ommeiietitjeeee 
| Aid to Aid to . . | De- 
Old-age | General WPA | € Janu- 
Total a dependent, the rp : Ae cembe . 
assistance | Children? | blind? | Telief! ‘etl 1940 00 
nen nn oan Sails! (iia eee eneee ae eee ee eee meee 
New York: | 
Albany-....._- oe CEE $148, 253 | $146,532 | $16, 901 | $864 | 1 $62,053 $61, 166 $1,721 | +15.7] 93 
Buffalo___.___. . ! County....... 1, 134, 847 | 1, 121, 598 124, 973 | 3, 857 | 87, 251 344, S41 13, 249 1.4 ~213 
New Rochelle _- ASRS 83, 699 83, 100 | 13, 516 | 0 | 54, 768 | 6, 477 509 $3.9] ~943 
New York ___. ~--+--++|-----0...._.......]16, 353, 637 |16, 142, 444 | 1, 614, 595 44,671 | 6,370,304 | 7,016,919 | © 211, 193 31. Gee 
Ni Falls.- ei A “ERSTE S 82, 857 81, 942 | 10 375 137 50), 001 13, 251 915 +.6] ~4 3 
Rochester... -.d0...........] 643,300 | 639,988 | 142, 337 2,636 | 328, 581 123, 469 3, 312 +9) ~134 
Syracuse.__._ _- ..| County -. a 480, 600 476, 409 | 82, 776 1, 799 222, 496 147, 04 4, 191 +10.0} —177 
Utica........ City............} 145,531 142, 708 33, 354 | 459 | 56, 478 40, 338 2, 82 +.9] -149 
Yonkers... ee .do...........| 289,870 238, 343 | 21, 110 555 96, 722 101, 141 1,527] +7.1] —se 
North Carolina: ae 
Asheville... _.. ....-| County... .-| 108,351 108, 351 | 14, 701 7 707 2, 273 83, 274 9] ~10.2 
Charlotte ____- ee UE aS 122, 642 121, 879 17, 333 | 8, 105 1, 266 6, 003 89, 172 763 | +12.8] +4365 
Greensboro. . Raia — ~ sila 92, 133 92, 059 17, 592 | 9, 433 1,049 1, 605 62, 380 ‘74 1.3 +5.0 
on Winston-Salem ___- “<= = 149, 873 148,711 | 15, 169 7,514 | 821 | 10, 057 115, 150 1,162 | +26.3] +299 
io: | | : 
Akron... _. do... -| 671,412 | 668,720} 92,716] 14,243] 1,968 99, 251 460), 542 2, 692 3) —m6 
Canton..___. one | | SES 278, 763 278, 493 100, 171 13, 860 1, 933 28, 415 134, 114 70 1.4] -128 
Cincinnati __- : do. aie 969, 336 953, 803 225, 746 41, 426 | 5), 124 246, 060 435, 447 15, 533 14] 42] 
Cleveland... ..do ond 2, 312, 982 | 2, 273, 234 259, 299 107, 022 8, 997 604, 201 | 1,293, 715 30, 748 6.3] —216 
Columbus. do = ‘ 660, 624 658, 478 197, 646 22, 234 6,616 116, 904 315, O78 2, 14 6.5) —120 
Dayton do ; 436, 802 434,977 | 144,477 14,424 | 2,525 74, 330 199, 221 1, 82 $4) —110 
Springfield _ _ . ee eee 120, 570 119, 590 | 54, 112 5, 230 1, 287 7, 007 51, 954 GR) 20} —128 
Toledo __. do bed 701, 527 700,939 | 149,377 18, 135 4 604 102, 372 426, 451 6 588 +7 ~§.7 
Youngstown____- ae ~ a4 331, 186 | 330,712 y 16, 106 3, 544 39, 216 213, 573 474 .7 +47 
Oklahoma: Tulsa SS = 217,087 | 210, 296 21, 746 2. 849 6 5, 952 8A, 3U 6, 791 +5 4 +94 
Oregon: Portland | do | 550,642) 548,772 | 24, 483 4, 791 * 92, 983 259, 891 1, 870 +18 —3.6 
Pennsylvania: 
Allentown do | 150,038 149, 402 | 25, 140 15,681 | 6,163 17, 043 85, 375 f l —19.2 
Altoona. _.___. --dO...........| 262,626 | 262, 541 32, 706 31,727 | 7,060 37, 161 153, 887 5 9 2 
Bethlehem -_. - ..do Eres. 176, 942 176, 202 25, 636 | 15,357 | 5, 625 19, 543 110, 041 $ 7.1 -15.3 
Chester... __- ..| do : 190,032 | 187,941 33.503 | 25.370| 8 389 17.003 | 103, 696 2,09 21) —189 
Erie... - | do... ‘ 247, 683 247, 524 52,050 | 33, 038 8, O57 | 36, 672 117, 707 ) 19.3} —29.8 
Johnstown ; ....do 2 300, 576 300, 119 36, 335 | 41,915 7, 686 | 43, 686 170, 497 157 —7,3 
Philadelphia do.. ; | 4,212,551 | 4,166,560 | 528. 730 552, 283 75, 687 | 1,442,573 | 1, 569, 287 6 45, 99 $145 -73 
Pittsburgh do | 2,693, 398 | 2.676.770 | 301. 287 296,395 | 39,106 | 809,785 | 1,230, 197 623 | +56) 52 
Reading --_- ‘| .do . | 314, O84 313, 927 | 45, 284 | 23,977 | 9,801 47, 686 187, 179 #1, 057 29.5) —20.8 
Scranton _- | .do | 800, 850 797, 835 75, 310 | 78, 426 12, 368 316, 048 315, 683 $3.0 4 —7.0 
Wilkes-Barre. ____. .| .do.. -.| 1,008,170 | 1,006,915 88, ORS 138, 687 16, 949 325, 127 437, 167 1,2 16.9) —215 
Rhode Island: Providence | City | 489,973 | 483,575 64, 210 | 22, 493 | 72 150, 438 245, 708 6, 398 145 —~49 
South Carolina: Charleston | County | 148,270 | 147, 603 8, 354 | 4, 580 | 679 2, 606 131, 384 667 23.5 —16.1 
Tennessee: | 
Knoxville... _- ' oa do anil 160, 185 | 160, 185 18, 005 | 20, 993 | 707 2, 270 118, 120 25. 5 —18,7 
Memphis. . , . do | 253, 338 247, 682 51, 090 25, 398 3, 185 1, 356 166, 653 5. Bt 10.1 +.8 
Nashville... _- | do .-| 233,352 | 231,629 41,919 27,663 | 2.661 2,465 | 156,921 1, 723 +14) —IL5 
Texas: 
Dallas... ___- ‘ do.. ‘ 310, 727 | 306, 115 | 113, 146 | 689 13, 955 178, 325 4,612 | +16.8 | +4140 
El Paso.......- | do 60, 473 | 59, 641 | 11, 163 93 48, 385 832 25 —32.1 
Fort Worth do : 301,408 | 300,711 | 76, 383 : 10, 374 213, 954 607 +5.0 +5.0 
Houston... _. | do | 348,195 | 343,802 | 89, 027 | 23, 599 231, 176 4, 393 10.8 | +194 
San Antonio __do _....| 413,987 | 409,082 | 85.099 323. 983 4905 | +36.8| +4252 
Utah: Salt Lake City dl | 468, 794 466, 525 | 111, 938 56, 038 1, 581 68, 737 228, 231 $122, 289 +5.0 2.1 
Virginia: | | 
Norfolk... accoascwaaact CMucactacceust eee! ante 10, 534 5,779 875 2, 138 69, 448 6 852 7.2| +122 
Richmond....___.. ei --d0...........| 213,734 | 206,120 15, 741 9, 307 1,171 13, 335 166, 566 17,614 | +118) +441 
Roanoke... cemeeciaul a 37, 173 37,173 5, 169 3, 579 456 1, 566 26, 403 5.2) +486 
Washington: 
itenmcdaced nai MEIN a. cccarcicaines 686, 679 680, 712 255, 305 40, 095 8.744 107, 365 269, 203 65, 67 8.7 —15.7 
Tacoma... me do Pes 299, 293 299, 293 103, 406 17, 326 2, 597 26, 731 149, 233 |_. 15.4 —30.4 
West Virginia: Huntington. __. WEE i 135, 486 134, 885 12, 420 6, 879 938 6, 089 108, 559 601 +6. 7 +12.9 
Wisconsin: 
Kenosha... _- Sa ‘ 144, 962 144, 896 30, 273 17, 204 1, 317 33, 554 62, 548 66 14.1 —-4.5 
Madison ‘ do ; 238, 115 237,710 52, 687 28, 119 1, 551 38, 060 117, 293 4) +1.7 —IL1 
Milwaukee ___- ~~ = 1, 860,876 | 1,849, 920 250), 836 114, 962 9, 632 447,047 1,027, 443 10, 956 2.3 —4.2 
Racine... ...... || SRE STS 139, 023 138, 320 32, 144 20, 677 val 26, 076 58, 432 703 19.1 —25.2 
i Excludes cost of administration, of materials, equipment, and other items pay-roll periods ended during month. Data are not available for these areas 
incident to operation of work programs, and of transient care. Data for for earnings of persons employed on projects other than those operated by 
assistance programs include obligations incurred for burials, in addition to the WPA. 
obligations incurred for money payments, assistance in kind, medical care, 5 Includes direct and work relief and aid to veterans 
and hospitalization. * Includes estimate. 
2 Includes data for areas in States with plans approved by the Social Secu- ? Includes Fulton and DeKalb Counties. 
rity Board and for areas in States not participating under the Social Security * Decrease of less than 0.05 percent. 
Act. * Estimated. 
3 Includes direct and work relief and statutory aid to veterans administered '¢ Data for county. 
on basis of need. 1! Increase of less than 0.05 percent. 
‘ Data from the WPA, Division of Statistics; represent earnings of persons 1? Incomplete, since data are not obtainable for | relief program : 
employed on projects operated by the WPA within these areas and cover all 1 Data for city of Richmond and for Chesterfield and Henrico Counties 


+ Social Security 








—19.2 


ae 
Ber. 
So oe 


! 
Bet, 


! | F | j 
+s sinl 
ee ee | ~ © ow 


+140 
—32.1 
+5.0 
+19.4 
+25. 2 

2.1 


+12.2 
+H.1 
+48. 6 


—15.7 
—w.4 
+12.9 
—24.5 
—IL1 

—4.2 
—25.2 


e areas 
ted by 


inties. 





EMPLOYMENT SECURITY 


BUREAU OF EMPLOYMENT SECURITY « RESEARCH AND STATISTICS DIVISION 


Operations of the Employment Security Program 


Labor-Market Developments 


The completion of major military construction 
projects in many sections of the country has 
caused a marked shift to industrial and resi- 
dential building, accompanied by the beginning 
of production in newly built plants. The demand 
for construction workers has declined somewhat, 
and ample reserves of skilled construction workers 
are reported available in many States to meet 
any spring demand for work on public and private 
residential developments, factories, and additional 
defense projects. Employment in manufacturing 
reached record levels despite delays in receipt of 
raw materials and increasing shortages of space, 
machinery, and key skilled workers. Completion 
of expansion programs in plants with defense 
orders has resulted in a gradual upswing in the 
demand for production workers in many fields. 
Consumer-goods industries have also added large 
numbers of workers. 

Employment increases in munitions and air- 
craft plants, shipyards, machine shops, textile 
mills, garment factories, and in many other 
industries have been accompanied by further 
reductions in the number of available skilled 
workers. There have been no significant addi- 
tions to the supply of skilled metal workers, 
machinists, and tool and die makers, occupations 
in which shortages have contributed to delays in 
production for several months. Development of 
general stringencies in other occupations and 
more widespread local shortages in other skilled 
occupations appear likely. Although many of 
the shortages probably still result from relatively 
low wages, rather than from a deficiency of com- 
petent workers, offers of higher wages appear to 
be less effective than heretofore in producing 
needed workers. Many of the thousands of 
trained workers who will be sought during the 
spring and summer by aircraft plants, shipyards, 
machine shops, machine-tool concerns, textile 
mills, garment and shoe factories, and a variety 
of other types of establishments may not be avail- 
able, unless rapid changes occur in training, up- 
grading, and simplifying production processes. 


Bulletin, April 1941 
310125—41——_-5 


Evidence of such developments is limited. More 
vocational training courses have been started, 
training facilities have been set up in new areas, 
and enrollment in established courses has increased 
considerably; but the reported numbers of en- 
rollees and graduates of such courses appear to be 
on a scale much smaller than estimated needs in 
fields in which stringencies are becoming serious. 
More employers are attempting to solve their 
labor-supply problems by simplifying skilled oper- 
ations to permit the hiring of larger numbers of 
unskilled workers, by in-service training and up- 
grading, and by less rigid physical and personal 
specifications for new workers. 

Not for some time will it be possible to measure 
the significance of the movement of farm workers 
to the factories. There are many indications, 
however, that agricultural areas need more hands 
for spring planting than are available, either 
because farm workers have already gone to the 
cities or because some are holding out for higher 
wages. 

The hiring of women for jobs usually performed 
only by men appears to have increased very 
slightly ; the employment of skilled Negro workers 
in plants which have hitherto hired skilled white 
workers exclusively has been increasingly reported. 
Public employment offices in many sections, how- 
ever, report continued discrimination against com- 
petent workers because of race, nationality, or sex. 


Review of the Month 


In each of the past 3 years the daily rate of 
placements has been the same in February as in 
January, while that of compensable claims and of 
payments has been higher. This year these pat- 
terns were altered as the result of the increasing 
influence of the defense program on the volume 
of employment, which reached the highest Feb- 
ruary level on record. The fact that compensable 
claims did not increase this year is probably 
attributable to reemployment during February of 
many workers who filed claims in January. Bene- 
fit payments declined 12 percent from January 
to $34.6 million, which was 22 percent lower than 


63 








Chart 1.—Placements of men and women by public 
employment offices, January 1939-February 1941 


THOUSANDS OF PLACEMENTS 
500 T — 











400 





300 


200 








100 











pitirtiar tii) 


pitir tir try 


1940 1941 


petirrtir tis 
1939 





° 


in February 1940. An average of 806,000 indi- 
viduals received benefit payments during the 
month, a 2.4-percent decline from January 1941 
and an 18-percent decrease from February 1940. 
A minimum of 910,000 workers received at least 
one payment during February 1941. 

The activities of the public employment offices 
during February continued to reflect the increasing 
labor needs of the expanding defense program. 
Although the shorter work month resulted in a 5.1- 
percent decline—to 345,000—in the number of 
placements, the daily rate of placements was 8 
percent higher than in January. Moreover, 
placements made in February 1941 were 70 percent 
higher than in February 1940 and 90 percent 
higher than in February 1939. Total placements 
in January and February 1941 were 67 percent 
higher than the corresponding 2-month period of 
1940. As in the previous month, more than 
two-thirds of the jobs filled in February were 
expected to last longer than a month, an appre- 
ciably higher proportion than the figure for 
February 1940. Despite the sharp decline in 
applications for work, registrants in active files 
of public employment offices at the end of Febru- 
ary numbered 5.1 million, practically the same as 
on January 31, 1941. 


Placement Activities 


Although the total number of placements de- 
clined in the country as a whole, 18 States reported 
more placements in February than in January 
(table 1). Outstanding gains were reported by 
Louisiana, Missouri, New Mexico, North Carolina, 
Virginia, and West Virginia. Sharp declines in 


64 


Florida and South Carolina reflected the curtaij. 
ment of large-scale placements on military projects, 
All but 3 States filled more jobs during the first 2 
months of 1941 than in the same period last year. 
Placements from two to five times as numerous 
as those last year were made in January and 
February this year in Arkansas, Florida, Kansas, 
Missouri, North Carolina, Rhode Island, South 
Carolina, Tennessee, Virginia, and Wyoming. 
North Carolina, where cantonment construction 
has been especially heavy, led all other States, 
with more than 45,000 regular placements in the 
first 2 months of 1941. Texas had 41,000 and 
New York 37,000 regular placements. 

The largest proportions of regular placements— 
all more than 90 percent—were reported by North 
Carolina, South Carolina, and Wyoming. Be- 
tween 80 and 85 percent of all placements in 
Florida, Louisiana, Mississippi, Missouri, New 
Mexico, Rhode Island, and Tennessee were also 
expected to last longer than a month. In Arkan- 
sas, the District of Columbia, Oklahoma, North 
Dakota, South Dakota, and Utah, however, less 
than half the placements made in January and 
February were of a regular nature. The District 
of Columbia makes many placements in domestiec- 
service occupations, and offices in the other juris- 
dictions fill many short-time agricultural jobs. 
Supplementary placements totaled 67,000, a 
decline of 27 percent from January but nearly 
three times the number in February 1940. 

Except for Rhode Island, every State reported 
a decline in February in applications for jobs; the 
1.4 million received during the month represented 
a decrease of 25 percent from January. The num- 
ber of registrants in State active files totaled 5.1 
million, practically the same number as on Janu- 


Chart 2.—Active file of men and women registrants at 
public employment offices as of end of month, Janu- 
ary 1939-February 1941 


MILLIONS OF REGISTRANTS 
8 ——____—_ - 











seen 
1939 1940 194! 


otterbertir tir tis tirtiiiis 





Social Security 





) 


tail- ary 31 but fewer than in any February since the _ lower than a year ago, and reductions of 30 per- 



























































: ere - . 
acts, establishment of the United States Employment cent or more were shown in Alabama, Arkansas, 
st 2 Service. In Oklahoma and Washington, the num- Connecticut, Hawaii, Maryland, Michigan, South 
ear, bers of job seekers were 49 percent and 58 percent Carolina, Vermont, and Wyoming. Of the 12 
rous io ie : ‘ » 
and Table 1.—Placement activities of public employment offices for all registrants, by State, February 1941 

[Data reported by State agencies, corrected to Mar. 22, 1941] 
Sas, } 
uth Complete placements | ~~ Active file 
Ing. ; sctemiueaniiel - = = } | = etal ociicmmnpasieiatibiiomeinata 
tion ' February 1941 January-February 1941 
—_— — ———__——--= —— Sup- Percentage 
ites, i , ple- a change from- 
Social Security Board Percentage Total Regular ment- Percent- 
the region and State | change from ary age Number 
a ee es _ place- Number change as of Feb ‘came te 
and } ea Regular ments | * from 28, 1941 
yt Pe (over 1 Percentage} . January | “” 
Janu- ‘eb- | month); change ie er- | 1941 91 |Feb ‘ 
ary ruary | — from Janu-| — cent of | > - 
[S— 1941 1940 | ary-Feb- | total 
| ruary 1940 
rth | ae eee Gee ako ee ‘ o-= so 
| ] | 
Be- Total. | 344,576 | —5.1 | +69.5 | 238,379 | 707,739 +66.8 | 481,855 68.1 | 67, 132 |1, 371, 429 —24.9 |5,095, 429 (') —13.9 
Ps | = | —ESE — ———V————— SS = —— SS 
S in Region I: } 
r Connecticut | 7, 269 +3.9| +98.3) 5,758] 14, 265 +85.7 | 10,737 | 75.3 63 | 23,263) —183] 57,328) +3.7| —29.7 
\ew Maine 1,975 +9.4 +56.7 1, 526 3, 780 +47.0 2, 790 73.8 6 9, 372 —15.0 33, 793 +2.0 —2.8 
Massachusetts 6, 268 +2.6 | +112.1 5, 154 12, 377 +85. 3 9, 504 76.8 69 47,910 —2.1 217, 186 +7.9 +26.1 
also New Hampshire 1, 725 +-3.7 +9.8 1, 428 3, 388 +1.7 2, 654 78.3 170 5, 236 —36.5 16, 263 | —15.1 —14.1 
; Rhode Island 1, 708 2 | +222.9 1, 456 3, 412 +176.9 2, 866 84.0 3 10, 094 +2.5 35, 991 | +39. 4 —22.5 
an- Vermont 758 | —14.2] +20.5 433 1, 641 434.5 980 | 59.7 9 2, 584 —15.5 12, 380 —-.5| —34.1 
| Region II 
rth ; New York 32, 762 —3.3 +75. 4 17, 994 66, 637 +74.7 37, 164 55.8 1, 802 145, 446 — 28.0 507, 110 —2.6 —17.4 
Region III: 
less Delaware 1, 237 $2.6] +87.1 787 | 2,442 +66. 7 1, 318 54.0 13 3, 717 —28.1 11, 563 3.7 | —26.7 
New Jersey 11, 35% —8.9 +25.8 7, 443 23, 822 +36. 5 15, 481 65.0 24 44,019 —35.2 207, 790 -.7 —28.8 
und Pennsylvania 13, 619 | ~9.9} +525] 10,085 | 28,736 +54.8| 20,582] 71.6 868 | 119,223}; —16.1| 388,476] -—.8| —7.8 
. Region IV 
rict Dist. of Col | 4, 266 14.2 +68. 9 2, 002 9, 238 +61.0 4,177 45.2 1 12, 066 — 29. 6 29, 431 +2.3 —25. 5 
. Maryland | 4,384) -—6.4| +844 3, 143 9, 068 +72.9 6, 330 69.8 2 19, 923 —14.4 50,606 | —2.8| —32.2 
lic- North Carolina 29,620 | +52.6 | +482.6 | 27,745 | 49,024 +382.3 | 45, 260 92.3) 7,854} 45,745 —31.9 | 105,463 | —5.9 +.5 
. Virginia 9, 807 ee 35.1 | +196.1 7,917 17, 066 +140.6 13, 269 77.8 95 20,714 —4,8 47, 488 +.7 —20.7 
ris- West Virginia 3,268 | +22.3] +60.5 2, 401 5, 940 +48. 8 4,078 68. 6 298 | 18,731 —17.6 65,624} +3.4) —15.2 
bs } Region V 
DS. Kentucky 2, 567 — 26.1 +63. 2 1, S88 6, 042 +91.9 4, 624 76.5 136 19, 745 —26.2 92, 297 +3.8 +4. 2 
Michigan 9, 49 —4.1 +35. 8 6, 561 19, 506 +35. 8 13, 322 68.3 173 64, 638 —18.9 148, 123 +9.1 —31.2 
a Ohio 15, 846 —6.6 | +67.2 9,747 | 32,803 +65.2 | 19,799 60.4 330 66, 421 —18.7 | 310,134] +1.3 +8.4 
ly Region VI: | 
rly Illinois | 16, 406 3.7] +61.0] 10,373 | 33,438 +48.9 | 21, 302 63.7 833 74, 279 —18.4 | 231,971 | +5.3 |] +29.2 
Indiana 7,979 | —16.6] +42.3 5,480 | 17, 550 +53.3 | 12,415 70.7 503 31,938 | —31.8| 167,506 | +5.7 —6.4 
Wisconsin 6,029 | 11.4] +388 3, 870 2, 838 +38. 8 8, 070 62.9 209 23,413 | —35.9| 115,818 | +4.6| —27.6 
t d Region VII | | 
e Alabama 3,120 | —17.3 +8.8 | 2,276 6, 893 +16.3 5, 218 75.7 | 154 18,781 | —25.5 93,640 | +5.8| —33.0 
the Florida. . 6, 885 | 37.9 | +144.4 | 5,416 | 17,976 | +167.6 | 15, 206 85.1 102 23,845) —15.7 78,964 | +5.3]) +22.0 
e Georgia 6, 489 21.0} +6.3 4,446 | 14,705 +24.8 | 10,577 71.9 71 22, 750 —28.2] 133,192 | -—6.6| —27.0 
d Mississippi 2, 261 | -.5 —2.9 1, 854 4, 533 —9.3 3, 650 80. 5 123 13, 500 —31.8 58,388 | —4.1 —8.0 
Le South Carolina 6, 082 | 5.4 | +115.8 |} 5,207] 18,340 +272.8 | 16,835 91.8 156 12, 267 —47.5 45,779 | —87)| —35.6 
Tennessee | 6,726 19.4 | +108.9 5,489 | 15,071 +120. 3 12, 194 80.9 | 8,155 18, 691 —25.0 | 120,280] +3.3) —15.3 
m- | Region VIII: 
51 lowa 5, 042 +3.4]} +11.2] 2,891 9, 916 +.4 5, 624 56.7 765 | 16,861 —35. 5 76,316 | —3.6| —23.7 
° Minnesota 3, 91! —2.7 +25.3 2, 368 7, 930 +22.0 4, 785 60.3 | 170 | 23,499 — 28. 6 111,017 —1.3 —25.7 
Nebraska 1, 497 —4.8| +14.5 858 3, 069 +7.5 1, 700 55.4 | 29 9, 568 —21.3 ,086 | +4.8 +9.5 
1u- North Dakota 1,059 | —25.3| +27.7 602 | 2,477 $36.6] 1.236] 49.9 21 5,80} —11.6 ‘ +13.9| +3.6 
South Dakota 734 17.9 | +27.0] 334 1, 628 | +23. 9 677 41.6 17 3, 344 —25.7 23,300} +1.1] —26.4 
Region IX: 
at Arkansas. | 4,741 | —25.4 | +167.1 2,088 | 11,100 +172.4 5, 508 49.6 | 4,767 10, 041 — 36.3 40, 193 +.2] —30.0 
Kansas___ | 4,528 | 22.3 +99, 7 2,253 | 10,359 +120. 4 6, 147 59.3 183 18, 980 —17.6 61, 129 —.5 +1.9 
tu Missouri. | 17,172 +48.0 | +237.8 | 15,117 | 28,771 +174.9 | 24, 243 84.3 495 48, 667 —2%6.6 | 196,149} —3.1 +2.9 
Oklahoma 3,013] +4.0 +2.7 1, 438 5,910 —.3 2, 824 47.8 760 19, 379 —18.4 46,680} +8.5| —48.6 
Region X 
Louisiana 7,709 | +48.4 ] +109.4 6, 733 12, 903 +-74.6 11, 002 85.3 6, 898 30, 572 6.4 121, 763 +.2 +25. 4 
New Mexico 1,919 +89.6 | +128.4 1, 646 2, 931 +56. 4 2, 336 79.7 326 6, 874 —19.9 30, 390 +6.3 —13.5 
Texas ss 30, 269 24.2 +23. 8 16, 880 70, 206 +38.3 41, 069 58.5 | 17,220 62, 708 —39.8 247, 704 —3.7 —7.9 
Region XI: | 
Arizona____. | 2,308 8.3 +4 1, 449 4, 824 —13.1 3, 072 63.7 | 5,931 5, 268 —28. 5 19,000 | —1.4] —253 
| Colorado... 1, O87 21. ¢ 4.7 1, 133 4, 520 +5.0 2, 364 52.3 58 14, 759 —19.5 62,364 | +7.0 —6.4 
Idaho ; 1, 161 +5.2 +4.6 710 2, 264 +11.1 1, 335 59.0 168 7, 438 —29.8 20, 829 +3.3 +30. 1 
Montana. 761) +411.2 +18.7 510 1, 445 +13. 2 936 64.8 139 5, 231 —21.2 24,012} +45) —22.9 
Utah | 916 36.9 +83. 6 525 2, 367 +50.0 1,019 43.0 52 6, 477 —29.6 22,858 | —2.9] —12.3 
Wyoming. | 1,713 1.9 | +459.8 1, 5A7 3, 460 +383. 2 3, 142 90.8 2 2,817 —52.0 7, 759 —.6| —31.8 
Region XII: 
California 22, 034 8.2 +50.7 13,062 | 46,031 +.8 | 26, 557 57.7 | 3,891 107, 398 —24.2 412, 962 —4.8 4.8 
Nevada__. O4s $15.5] +35.0 | 570 1, 769 +13.7 1,012} 57.2 97 2, 287 —26.5 6,162 | +1.6 —7.2 
Oregon | 5,454 1.2] +105.3 | 3,824 10, 979 +68. 2 6,864 |} 62.5 908 18, 091 —22.4 41, 644 —2.0 —17.8 
J Washington 4,317 12.3 —1.0 2, 887 9, 240 +4.2; 5,871} 63.5} 1,878 24, 186 —30.8 §2,953 | —25.1 —57.8 
Territories | | 
Alaska 478 | +13.5| +19.2 244 899 | +4.6 | 455 | 50.6 17 | 778} -15.8| 1,977] +26] —22.9 
Hawaii 42 25.7 +49. 5 711 2, 210 +53.8 1,585 | 71.7 18 2,075 —1.9) 6,907) —7.2| —33.1 
} 














' Increase of less than 0.05 percent. 


ity Bulletin, April 1941 65 








States with greater numbers of registrants this and 128,000 by women (table 2). Placements of 
February than last, Idaho, Illinois, Louisiana, and men were double the number made in February 
Massachusetts showed the largest increases, 25 1940, while placements of women increased by 
percent or more. one-third. These respective increases were equiy- 

Among all placements completed by public em- _ alent to those shown in the previous month: the 
ployment offices, 217,000 jobs were filled by men __ sharper increase in placements of men reflects the 


Table 2.—Placement activities of public employment offices for men and women, by State, February 1941 
[Data reported by State agencies, corrected to Mar. 22, 1941] 

































































| 
Men | Women 
Complete placements Active file | Complete placements Active file 
| 
Social Security Board region es a 
and State Percent- applica Percent- | Percent- A. 4 Percent- 
age Regular | tions | Number age age Regular | tions | Number| _,28¢ 
Number a (over 1 | received |as of Feb.| “8®8° | Number | °P8™8° | (over | received las of Feb.| Change 
rom month) | 28, 1941 from | from | month) | | 98 1941 from 
February ee Feb. 29, February : Feb. 29, 
1940 1940 | 1940 } 1940 
EE ae 217,008 | +101.1 | 162,836 | 985, 150 3, 755, 452 —16.0 | 127, 568 | 433.7 | 75,543 | 386,279 1,339,977 7.4 
Region I: a 
Connecticut - . .. _- 4,722 | +111.8 3, 993 15, 852 38, 308 —32.5 2, 547 | 77.4 1, 765 7,411 19, 015 —2B.3 
Maine. -.......--- 1, 207 +00. 7 951 7, 349 26, 418 —2.5 768 | +225 575 2, 023 7, 375 —4.0 
Massachusetts -... 3,310 | +119.1 796 32,660 | 140, 863 +27.7 2,958 | +1048) 2,358 15, 250 76, 323 +23.2 
New Hampshire.______.- 1,333 +12.3 1,141 3, 860 11, 283 —16.4 392 +2.1 | 287 1, 376 4, 980 —8.4 
Rhode Island - - 912} +309.0 791 6,274 | 22,992 —16.0 796 | +160.1 665 3, 820 12, 999 —31.8 
a Lenina 407 +241 246 2, 028 9,372 | —31.2 351 +16.6 187 556 3, 008 —41.6 
New York........ 13,890] 461.6] 9,223 | 94,861 | 346,963 / -203| 18,923/ +87.1| 8,771 | 50,605| 160,147) 104 
Region b4 j 
Delaware. ---- 549 | +165.2 474 2, 549 8,057 | —30.3 688 +51.5 | 313 1,168 | 3,506 —17.2 
New Jersey - .--- 4, 693 +12.8 3, 676 27,587 | 136, 222 —31.0 6, 663 +37.0 3,767 | 16,432) 71,568 —24.5 
1 a 7, 040 +66. 4 5,637 | 86,117 | 289, 553 —10.8 6, 579 +39.9 |) 4,448 33,106 | 98,923 +2.0 
: j 
District of Columbia 1, 524 +74.8 854 7,360 19, 368 —2%6.3 2, 742 +65.8 | 1,148 4, 706 10, 063 —2.7 
eee tiidrieeenene 2,862 | +1023 2,140 13, 656 35, 926 —37.2 1,522} +58.0 1, 003 6,267 | 14, 680 —16.0 
N Carolina. .._- 26, 989 +827.4 26, 014 37, 685 79, 544 +8.8 | 2, 631 +21.0 1, 731 8, 060 25, 919 —18.5 
a 7,000 | +299.1 6, 067 14, 922 33, 453 —2A.8 | 2, 807 +80. 2 1, 85 5, 792 14, 035 —8.8 
wes ss 1,825 | +118.3 1, 565 14, 385 4,427) —16.6)/ 1,443 +20. 2 836 4, 346 11, 197 —7.7 
mv: | 
Kentucky _-...__-.. 1,649 | +113.6 1, 318 15, 309 73, 919 +4.5 | 918 +14.6 570 2, 436 18, 378 +3.2 
Deatnscninkinbinas 5, 622 +49. 8 4, 084 46,985 | 114,877 | 32.2 3, 927 +19.7 2, 477 17, 653 33, 246 —27.4 
hg bitoedions 8,138 | +105.2 5, 348 45, 596 | 227, 744 | +2.9 | 7,708 | +39.9 4, 399 20,825 | 82,390 +27.3 
Region : } 
Sa --| 9,665 |} +129.8 6,278 | 53,488 | 171,678 +30.9 | 6,741 | +12.6 4,095 | 20,791 60, 293 +24.8 
i inedeancnnsonte 4, 046 +95. 1 2, 926 21, 925 122,471 | —11.8 3,933 | +11.4 2, 554 10, 013 45, 035 +12.6 
Wisconsin. .......... 3, 351 +64. 5 2,122; 15,502 88,375 —31.9 2,678 | +16.0 1, 748 7,911 27, 443 —8.8 
Region VII: } 
Alabama. ... 1, 673 —10.0 1,124 15,587 | 74,846 | —34.4 1,447 | +43.6 1, 152 5, 194 18, 794 —2%6.8 
Florida... .......- 5,376 | +225.2 4, 368 18, 215 57,892; +20.4/ 1,509; +29.6 1, 048 5, 630 21, 072 +-26.7 
Gocrgia laces 4, 484 +8.8 2, 895 14,979 | 93,456/ —31.0 2, 005 +1.0 1, 551 7,771 39, 736 —15.5 
M sippl ie ai ninenmceeie 1, 352 —6.6 1, 004 9, 664 45,331 | 15.1 | 909 +3.3 760 3, 836 13, 057 +29.7 
South Carolina. ._...__. 4,830 | +130.8 4, 309 8, 836 33,791 | —40.0 1, 252 +72.4 gus 3, 431 11, 988 —18.4 
peraemee... 4,273 | +189.5 3,773 13, 139 85,151 | —19.6 2,453 | +40.7 1,716 5, 552 35, 138 —29 
Region | 
Iowa... _.- a 2,902 +21.4 | 1,740 | 11,978 58, 695 —23.8 2, 140 | —.1 1, 151 4, 883 17, 621 —3.1 
CC ee 1, 746 +32.7 1, 093 | 16,571 | 87,02, —24.9 2,165 | +19.9 1, 275 6, 928 23, 985 —23.4 
Nebraska... ...... 897 +17.6 479 7, 330 39, 138 +11.2 600 +10.3 379 2, 238 8, 48 +27 
Se 402) +426 267 | 4,348 | 23,806 | (1) 657 | +201 335 | 1,472; 6, 791 +19.0 
South Dakota --___. 323} -+47.1 151 | 2,480] 17,880}  -—27.7 406 | +144 | 183 | 864 5, 420 —21.5 
Region IX: 
Arkansas... ........ 3,002 | +273.4 1, 226 7, 778 31, 883 —31.2 1, 739 +79.1 862 2, 263 8, 310 —25.2 
RE 2,978 | +124.6 1, 490 14,850 | 49,170 —1.1 1, 550 +64. 7 763 4, 130 11,959 +16.1 
Rininadiiihielinsins 14,156 | +487.4 13, 066 36,902 | 151,592 +5.7 3, 016 +128] 2,051 | 11,765 | 44,557 —5.7 
Seabee ss ataaaleiinepes , 335 —8.1 558 15,371 | 37,884 | —49.0 1,678 | +13.4 | 880 4, 008 8, 796 —46.4 
° | | | 
Es lcinctincieianea 785 | +241.1 5, 347 25,043 | 102,178 +29.3 1,924 —3.1 1, 386 5, 529 19, 585 +8.5 
New Mexico... 1,516 | +223.9 1,374 5,921) 26.360) —11.3 403 +8.3 | 272 953 4, 030 —25.5 
T | Seeeemeneenneen ‘ +34.6 | 12,000 48, 264 | 198, 200 —3.4 | 8,906) +3.9 | 4,781 14, 444 49, 504 —22.6 
Region ° | 
Arizona........ 1,440 —1.6 1,045 3,910 | 15,306 —2.0 | 868 +4.0 | 404) 1,358 3, 604 —11.2 
Sl idimncnankwcescacaes 904 —17.4 | 519 | 1,201 | 47,568 —12.4 993 +12.4 | 614 3, 468 14, 796 +19.9 
| a 617 $15.5 375 6,342 | 18,709; +30.4 5A4 —5.6 | 335 1, 096 2, 120 +27.5 
Montana. -_......-- = 435 —2.9 313 4,248 | 20,407 —21.9 326 | +68.9 197 G83 3, 605 —27.8 
ee ceo sl 618 | +197.1 365 5,166 | 19,014) —125 208 +24 160 1,311 3, 844 —11.3 
Wyoming... ......-- ; 1,509 | +750.5 1,516 | 2,256 6, 405 —31.9 114 | —3.4 | 51 561 1, 354 —31.3 
Region XII 
Gpitornia sece----------] 12,9000] 466.2] 8,051 | 72,105 | 276,2% |) —31.8 9,035! +34.7/ 5,011 | 35,203 136,738 —5.1 
ss FERRITE - 662 +29.3 459 | 1, 757 4, 878 —9.5 286 +50. 5 | 111 530 1, 284 +3.0 
sees 4,352 | +124.9 3,142 | 14, 686 33, 456 —18.9 1, 104 +529 682 3, 405 8, 188 —13.4 
Te ---- alien 2, 967 —3.1 | 2,082) 18,069 41, 025 —59.8 1,350 +4.0 805 6, 117 11, 928 —49.3 
tories: | 
alicia buiipctninintedeeninoee 414 +15.0 217 677 1, 764 —2%4.4 64 @) 27 101 213 —7.4 
LRAT 830 | +53.1 655 | 1,457 4, 508 —40. 2 | 112} +27.3 56 618 2, 399 —14.1 
! Decrease of less than 0.05 percent. 1 Not computed, because less than 50 placements in February 1940 


6 Social Security 





of 
ry 
iv- 
he 
he 


OO e wow 


i lee |) ee orn “M@Bao-w oon -_ 


eS 





large-scale expansion in construction in connection 
with the defense program. Placements of men 
were higher than in February 1940 in all but 7 
States and for women in all but 4. Placements of 
men were from three to nine times as numerous as 
in February 1940 in Arkansas, Florida, Louisiana, 
Missouri, New Mexico, North Carolina, Rhode 
Island, Virginia, and Wyoming; in 13 other States, 
they were more than doubled. Placements of 
women were more than double the number in 
February 1940 in Massachusetts and Rhode 
Island, and increased more than 50 percent in 12 
other States. Placements of women exceeded 
those of men in Delaware, the District of Colum- 
bia, Minnesota, New Jersey, New York, North 
Dakota, Oklahoma, and South Dakota primarily 
as a result of the large volume of service place- 
ments in these States. Three-fourths of the jobs 
filled by men and more than half of the jobs filled 
by women were expected to last longer than a 
month. 

During February, 985,000 applications were filed 
by men, a 6.6-percent increase over February 1940, 
while the 386,000 filed by women represented an 
increase of 4.6 percent. The increases probably 
reflect the more intensive efforts made this year 
by the public employment offices to meet the labor 
needs of the defense program. At the end of 
February, the active file of men was 16 percent 
lower than in February 1940, while the number of 
women registrants was 7.4 percent less. The 
number of male job seekers registered this Febru- 
ary was less in all but 10 States, and the number of 
women, in all but 15. 


Chart 3.—Average weekly number of claimants drawing 
benefits, by month, January 1939-February 1941 


THOUSANDS OF CLAIMANTS 
1500r 











| | i ee Pee oe corey eee, ee 
1939 1940 1941 





! Benefits not payable in Illinois and Montana until July 1939 


Bulletin, April 1941 


Registrants in Selected Defense Occupations 


A count of workers registered in public employ- 
ment offices in selected defense occupations has 
been made monthly since July 1940. The data 
for February, summarized by State and oc- 
cupational group,' are presented for the first 
time in this issue of the Bulletin. The nature of 
the count was revised several times during the 
first 6-month period in order to increase the use- 
fulness of the survey. The series prior to January 
1941 is therefore not comparable with the present 
data. This count of registrations is made only 
on the basis of the primary skill of the job seekers. 
The occupational classification of applicants in- 
cluded in this count is based on the primary 
classifications assigned to them.? The occupa- 
tional classifications are based strictly on the job 
classifications contained in the Dictionary of 
Occupational Titles used by the United States 
Employment Service. 

The occupations selected were chosen primarily 
for two reasons: either because there is increased 
evidence of local shortage or dwindling supplies of 
such workers, or because, even though supplies 
appear to be ample at the time, the occupation is 
considered essential to defense industries. Selec- 
tion on the basis of the first category is exem- 
plified by the inclusion of all-round machinists; the 
second, by the inclusion of automobile mechanics. 

On February 21, 357,000 workers with primary 
skills in a selected list of technical, skilled, and 
semiskilled defense occupations were registered at 
public employment offices (table 3). This number 
was an increase of 5,700 workers or 1.6 percent 
over the number registered in the same occupations 
a month earlier. Most of the increase was attrib- 
utable to the larger number of registrants from 
the building trades. The largest percentage 
increase—6.8 percent—occurred in the group of 
shipbuilding occupations. Only two groups showed 
declines from the previous month: textile, garment, 
and related occupations and occupations essential 
to the manufacture of instruments, optical goods, 
watches, and clocks. 

A little more than three-fourths of all registrants 
were qualified and immediately available for 


1 For detail on 396 occupations see monthly release issued by the Bureau of 
Employment Security entitled Labor Supply Available at Public Employ- 
ment Offices in Selected Defense Occupations. 

* The primary occupational classification is the title and code of an occupa- 
tion for which an applicant has been found to be best suited on the basis of 
qualifications, availability for referral, and existing job opportunities. 


67 








referral, but the other fourth was divided almost 
equally between those who needed further training 
before being fully qualified for jobs for which they 
were registered and those who for one reason or 
another could not be considered either available 
or qualified. 

More than one-half the registrants were con- 
centrated in the Middle Atlantic and Great Lakes 
regions. The largest number was in New York, 
where construction trades accounted for well over 
half the 53,000 registrants. Almost one-third of 
the total registrants were in five other States— 
California, Illinois, Michigan, Ohio, and Pennsyl- 


vania—each of which had between 21,000 and 
25,000 applicants registered in defense occupations. 

Construction and metal-trades workers pre. 
dominated in all States and accounted for three. 
fourths of the registrants with defense skills for 
the country asa whole. In all except five States— 
Illinois, Indiana, Michigan, Ohio, and Pennsyl- 
vania—the number of registrants in construction 
occupations outnumbered those in metal trades, 
sometimes by more than 4 to 1. As might be 
expected, the excess of construction workers over 
metal-trades workers generally decreased, the more 
industrialized the State. 


Table 3.—Primary registrations of job seekers in selected occupations, by occupational group and State,! 
Feb. 21, 1941 


{Data reported by State agencies, corrected to Mar. 13, 1941] 





























| } } | P | 
Miscella- } » Instrument Ship and | ~. 
Aircraft 144 Electrical | : ¥ a_| Textile, 

State Total yang manufac- | Automobile! —e equipment — | Metal — — arment, | Miscella- 

° turing and| service r | manufac- goods, ,| trades ng |} and neous 

— service tion turing — | boilermak- me 
| clor } ing 
Total, Jan. 25,1941_| 351, 291 11, 156 2, 248 21, 878 | 159, 439 6, 190 | 1, 002 101, 846 | 6, 625 29, 325 11, 582 
Total, Feb. 21,1941.| 357,006 11, 484 2, 304 22, 156 164, 247 6, 310 939 102, 752 | 7,079 | 27,925 11, 810 
6, 712 99 9 314 2,901 | 68 3 1,414 103 1, 568 233 
24 3 116 427 | 17 3 220 1 | 10 25 
5, 213 82 16 379 3, 801 | 45 3 671 | 37 | 27 152 
23, 387 1, 244 On6 2, 047 10, 428 494 | 80 | 5, 705 820 451 1, 132 
4 223 15 47 2, 309 69 16 | 927 | 81 14 108 
3, 637 136 19 150 | 1, 484 32 | 6 | 1, 194 | 75 a7 65 
965 15 3 40 497 | 9 | 3 304 46 23 25 
1, 541 107 10 78 1,079 23 | 6 | 166 15 32 25 
5, 162 209 14 254 3,7 65 25 | 564 | 108 83 120 
9, 809 195 17 530 3, 886 ill i8 1, 151 | 53 3, 602 246 
1,758 27 3 212 1, 134 18 5 292 12 0 55 
23, 072 1, 190 52 1, 220 8, 048 | 551 102 | 9, 871 264 629 1, 145 
14, 322 559 31 854 4, 790 | 385 52 6, 793 212 158 488 
4, 327 74 10 337 2, 632 59 3 995 81 36 100 
4, 783 121 38 616 2, 555 93 10 1, 127 69 18 136 
4, 880 97 7 436 2, 594 143 | 9 1, 210 66 28 190 
5, 831 142 13 | 338 4,077 59 | 4 917 | ww BS ” 
3, 829 58 1 235 2, 186 45 7 553 153 17 4 
1, 925 40 22 of 1, 069 | 18 | 3 427 51 160 41 
7, 184 198 13 429 2, 836 | 97 | 28 1, 634 122 1, 612 215 
21, 188 374 52 756 5, 304 | 361 61 13, 256 203 271 550 
7, 730 231 10 789 | 4, 401 108 | 5 1, 754 77 76 209 
1,855 40 3 135 | 1, 215 16 1 257 38 113 37 
9, 704 417 39 893 | 4, 986 | 190 | 38 2, 546 189 111 295 
j On 7 

1910 + 13 315 O05 | a2 | ‘ 423 | i 5 m 
382 11 0 52 206 4 | 1 86 5 1 13 
1, 183 20 3 64 481 13 | 1 189 12 4 36 
14, 642 746 38 498 5, 581 | 267 | 40 3, 372 417 3, 223 - 
1, 134 42 1 130 760 | 6 | 1 125 | 7 MA 
52, 638 1, 780 290 2, 248 27, 537 | 953 201 10, 982 | 1, 571 4, 742 2, 334 
7, 265 66 3 216 4, 495 25 2 | 508 | 48 1, 785 117 
1, 605 31 3 304 1, 004 | 15 4 | 213 | 10 2 19 
23, 504 670 64 1, 202 7, 643 522 33 | 11, 608 | 464 557 741 
4, 747 112 13 462 2, 868 61 6 990 | 113 { 88 
n 3, 225 105 13 397 1, 682 | 39 | 4 706 68 82 129 
a -- ia 25, 215 750 93 1, 251 8, 782 623 | 59 9, 052 614 3, 204 697 
= 2, 908 67 4 102 753 56 1! 692 30 1, 143 50 
South Carolina_____- 2, 213 31 1 78 1, 204 | 9 1 186 | 12 661 30 
th Dakota__.....___- 1, 482 “ 3 240 907 | 30 | 0} 233 8 0 17 
Tennessee.......___. 5, 474 87 17 292 2, 800 | 69 | 6 | 1, 161 65 | 711 ons 
AES NNR 12, 948 329 109 1, 120 7, 926 | 181 | 23 | 2, 464 271 265 260 
Sees FS A Poss 7 3 a4 | > } 4 * 153 25 
Virginia .----- ~~ 2, 051 57 ‘ 107 1,081 | 11 | 8 282 | 55 403 43 
Washington. 1, 926 38 214 225 838 | 39 | l 453 40 7 71 
West Virginia. - 2,814 64 13 153 1,417 | 86 | 5 779 52 69 176 
Wisconsin ._. 8, 846 29 12 542 3, 873 114 15 3, 424 | 150 152 315 
EE 400 ll 0 53 | 254 5 0 | 67 2 0 8 

















' Alaska and Hawaii not included, because no count made. 


Social Security 





—  ——_ a, te ee 


ind 


re- 
Be- 
for 


yl- 
on 


De 
er 


~ & 


ee | ae 





Although 396 occupations were included in the 
selected list, 84 percent of the total number of 
registrants were concentrated in 62 occupations, in 
each of which there were more than 1,000 regis- 
trations. About half the surveyed occupations 
had less than 100 registrants; fewer than 10 work- 
ers were registered in many of these, and there 
were a number of occupations in which no workers 
were registered. The occupations with few regis- 
trants were chiefly among those essential to air- 
craft, machine-shop work, and shipbuilding. 


Insurance Activities 


Claims received.—The 4 million continued claims 
received in February represented a decline of 18 
percent from January and 30 percent from Febru- 
ary 1940 (table 4). Decreases from January were 
reported by 44 States. The sharpest reduction— 
35 percent—occurred in New Hampshire, where 
employment in the shoe industry is at its seasonal 
peak; declines of more than 25 percent were re- 
ported by Illinois, New York, Rhode Island, South 
Carolina, Vermont, Virginia, and Wisconsin. 
Larger numbers of claims, on the other hand, were 
received in 7 States —Alaska, Arkansas, Delaware, 
Hawaii, Montana, North Dakota, and Wyoming. 
Compensable continued claims received in Febru- 
ary were 12 percent less in number than in Janu- 
ary. Last year such claims increased 5.4 percent 
from January to February in spite of the lesser 
number of working days in February. As ex- 
pected, continued claims filed to meet waiting- 


Chart 4.—Number of waiting-period and compensable 
continued claims received, for weeks ended in Janu- 
ary 1940-February 1941 


THOUSANDS OF CLAIMS 























~ 
| 

1500) 
| 

1000}/———y 
| » 

500 _\nTinns PERIOD ss eee 
a . r~ | 
Pe 
wT et baa 6 2 kee ee eee 

1940 194) 


Bulletin, April 1941 


Chart 5.—Number of weeks compensated, by type of 
unemployment, for weeks ended January 1940- 
February 1941 


THOUSANDS OF WEEKS 
1500 

















500 


PARTIAL AND PART-TOTAL 
| 








ae os Oe ee ee ee ee ee ee oe ee 
JF M AMS J A SONOS F MAM ST 
1940 1941 





period requirements declined more sharply from 
January than did compensable claims, because of 
the slackening in the filing of claims initiating new 
benefit years. Waiting-period claims, which rep- 
resent uncompensated weeks of unemployment, 
comprised 19 percent of all continued claims this 
month, in contrast to 23 percent in February 1940. 
The lower proportion this year is largely attrib- 
utable to the fact that fewer claimants have initi- 
ated benefit years this year and also because claim- 
ants are being reemployed before completing 
their waiting periods. 

The expansion of defense activities in February 
was reflected also in the 6-percent decline to 1 
million in the weekly average of continued claims 
for all types of unemployment (table 5). De- 
creases from January were reported by 28 States, 
including nearly all important industrial States. 
Only 970,000 persons filed claims for benefits in 
the last week of February, the lowest weekly 
number since the last week in December 1940. 

The weekly average of continued claims for 
total unemployment was 933,000 in February—a 
decline of 4.1 percent from January. Receipts 
for this type of claim comprised 91 percent of all 
claim receipts. As for claims for all types of 
unemployment, the 887,000 claims filed during the 
week ended February 22 represented the low for 
the month and the lowest weekly average since 
the last week of December. 

Benefit payments.—Partly because of the con- 
centration of defense contracts in States east of 
the Mississippi, there was a distinct geographic 
pattern with respect to changes in benefit dis- 
bursements. All but three States in this area 





69 








reported reduced benefit payments in February, 1941 totaled nearly $74 million, 13 percent less 
whereas only six States west of the Mississippi than in the corresponding period of 1940. Re. 
showed declines (table 4). ductions of more than 40 percent were shown for 

Benefit payments during the first 2 months of | Connecticut, Hawaii, Maryland, Rhode Island, 


Table 4.—Continued claims received, weeks compensated, and benefits paid, by State, February 1941 


[Data reported by State agencies, corrected to Mar. 22, 1941] 
































| Continued claims ! Weeks compensated | Benefits paid 
| | Per- | Per- Type of unemployment Per- Type of unemployment 
Social Security Board cent- = PELE: Se 3 ca cent- _ bb aeeahs.: 
region and State age | Compen- age ' i? 
Number | change a Number ‘change Partial | | Amount ? | change | Partial | 
from from Total | 204 part- Partial from Total | 224 part- | Partial 
Jan- | | Jan- | total com-| only ? Jan- | _— total com-| only 3 
uary uary | bined ? uary | | bined? | 
Total. .... 4,046,747 | —17.9 |3, 289,123 3, » 261, 454 | —12.7 2,982,042 279, 412 $34, 610,683 | —11.9 $32, 687,943 $1, 808, 161 
Region I: | | | | 
Connecticut__. | 46,568 | -—3.9 33, 233 33,154 | +14.5 | 30,798 2, 356 (*) 337,391 | +21.2 322,114 14, 933 (4 
aine_.. pan 23, 951 | —20.2 | 21, 663 | 22,178 | —33.7 | 18, 187 3,991 | 2,383 148,615 | —31.0 124, 685 23,930 | $14. 535 
Massachusetts......| 174, 862 —20.2 | 153,937 | 154,289 | —24.6 | 140,234 14,055 | 13,055 | 1,588,288 | —21.1 1, 512, 044 74,884 | 68 35] 
New Hampshire 12,454 | —34.9 10, 667 10,931 | —25.4 | 8, 893 2, 038 (*) 92,453 | —21.5 82, 458 9, 995 (4 
Rhode Island 26,976 | —26.0 24,728 | 24,728 | —21.0 | 21,067 3,661} (4) | 260,409 | —17.5 242, 390 | 18, 019 (4 
Vermont... E 11,122 | —30.1 8,813 | 8, 738 —5.4 8, 204 534 390 | 84, 553 —5.7 81, 400 106 2 058 
Region IT: 
New York... .. 606,434 | —25.2 | 509,829 519,496 | —24.9 | 519, 496 () } (3) 6, 187,529 | —24.3 | 6,187, 529 
Region IIT: } 
Delaware ____- ; 12,514 | +14.6 10, 408 10,301 | +30.2 8, 253 | 2,048 | 1,888 82,253 | +34.2 11,711 10, 719 
New Jersey... ....- 168,719 | —19.6 | 129,246 129,454 —2.9 | 129, 454 | (2) () 1, 214, 257 —3.6 1, ( 
Pennsylvania_......| 319,297 | —20.6 | 227,314 | 226,557 | —17.3 | 226, 557 (2) (2) 2,435,032 | -17.7|) 2 
Region IV: | | 
Dist. of Columbia_- 25,672} —1.9] 21,908| 20,805) +61] 19,555 1, 250 (*) 251,313 |} +6.4 236, 565 14, 158 (4 
Maryland_._. 38,272 | —24.9 | 34,361 | 31,373 | —25.7 | 27, 378 3, 995 3, 864 268,118 | —23.9 245, 884 22, 210 21, 348 
North Carolina e 61,291 | —21.9 47,960 | 47,387 —24.5 44, 370 3, 017 2, 597 215,988 | —26.8 206, 747 > 146 7. 188 
Virginia___- cael 34, 374 | — 26.0 31, 545 | 30,960 —28.0 27, 462 3, 498 2, 346 | 248, 271 | —27.1 227, 557 20, 58 13, 346 
w + Virginia_. aig 32, 657 | —21.3 25,727! 24,917 | —16.0 23, 894 $1,023) (4) 213,697 | —16.2 203, 698 » 999 (4 
Region V 
Kentucky... amen 21,234 | —24.1 17, 347 33,782 —21.3 28, 238 5,544) (4 243,374 —19.9 216, 887 25, 855 ‘ 
Michigan _. . --c-| 122,453 —2.9 102, 042 101,299 | —2.3 95, 058 6, 241 (‘) 1, 153, 275 —4.1 1, 118, 635 4, O40 ‘ 
Ohio. a-------| 200,775 | —20.9 | 149,754 149,723 | —21.9 130, 066 19, 657 (4 1, 424,844 | ~—20.7 1, 322, 644 M. 17¢ (4 
Region VI: | 
Illinois. a-------| 225,842 | —31.6 | 200,157 | 208,032 | —26.2/ 158,672 49,360 | 34,992 | 2,496,167 | —22.6 | 2,125,921 7, 4) 233.711 
“Sasa 77,826 | —16.4 62, 038 61,878 | —6.0 52, 198 9, 680 (*) 613, 592 —2 1 558, 829 54, 382 (4 
Wisconsin........... 47,714 | —30.2 32, 572 32, 600 —9.7 29, 413 3, 187 1, 679 338,548 | —10.8 317, 643 *), GOS 9. 649 
Region VII: 
Alabama..__. cas 54,221 | —16.0 40, 945 39,738 | —14.8 36, 705 3, 033 801 265,655 | —13.9 249, 811 15, 630 3. 332 
Florida_...__- panene 36, 534 | —22.9 28, 606 28,271 | —21.3 23, 454 4,817) (4) 278, 986 | —20.6 249, 106 20. RRO (*) 
Georgia. = 50, 555 —1.8 38,310 | 37,511 +2.3 35, 228 2, 283 1, 420 240, 075 —1.9 231, 556 & 519 5. 378 
Mississippi... --| 28,614) —11.7| 24,496 23,520; —3.1 21, 835 1, 685 952 152,569 —3.4 143, 396 9, 136 5, 107 
South Carolina... 24,546 | —30.7 19, 323 18,843 —26.8 16, 159 2, 684 1, 200 122,279 | —27.5 110,014 12, 211 5,111 
Tennessee ___ ‘ 68,547 | —23.1 56, 110 47,948 —28.0 44, 127 3, 821 1, 485 344,305 | —26.9 327, 018 17, 287 5 756 
Region VIII: 
(aaa - 72, 180 —1.8 51, 804 | 51,030 | +27.1 45, 387 5, 643 1, 247 460,740 | +25.7 427,315 32, 823 6, 062 
Minnesota. - -_- 130,378 | —6.7 | 111,824 | 109,373 | +15.8 | 102,789 6, 584 (*) 1, 141,049 | +16.1 1, 087, 762 52, 945 (4 
Nebraska. -. 29, 591 —4.9 | 25,584| 25,197 | +15.3 22, 961 2,236 | 1,408 230, 570 | +14.8 213, 998 16, 521 10, 328 
North Dakota. 12,560 +4.2/ 10,488 9, 241 | +22.5 8, 436 805 | 546 89, 285 | +20.2 82, 710 6, 438 4, 239 
South Dakota__. 7,681 | —13.6 6, 925 6, 921 +6. 2 6, 616 305 (*) 50, 730 +3.9 48, 882 1 848 (4 
Region IX: 
Arkansas_._. 5 44, 537 +.1 33,893 | 33,893 | +9.2 31, 690 2, 203 88 199, 126 +6. 2 190, 664 8 431 404 
Kansas... 36, 383 —4.0 24, 010 23,902 | +15.9 21, 055 2, 847 1, 886 208,038 +13.6 189, 939 18, 0090 11, 285 
Missouri __.- AEE 91,820 | —20.9 61, 521 64,077 | +2.8 57, 033 7, 044 1, 853 540, 622 +1.2 M4, 482 36, 121 7, 320 
Oklahoma...-- ..-| 43,739) —4.9 33, 093 32,398 | +3.6 27, 088 5, 310 875 286, 246 —.2 253, 982 32, 264 3, 861 
Region X: 
Louisiana 67,698 | —18.6 55, 702 55,449 | —15.0 50, 407 5, 042 (4 492,329 | —15.0 456, 784 34 R05 ‘ 
New Mexico 13,640 | —10.5 11,618 | 11,071 +2.{ 10, 455 616 251 6, 552 +.3 91, 926 4, 2% 1, 762 
Texas... 111,773 | —13.9| 97,990| 72072|-11.2| 62140; 9,932) ¢ 546,773 | —13.7| 496,743 199 
Region XI: } 
Arizona --_. 10,671 | —14.0 8,078 | 8,041) —9.4 7, 606 435 25 85,152 | —9.8 81, 831 3, 321 164 
Colorado... 37, 539 —3.8 32, 300 31, 136 +2.7 28, 519 2,617 | 1,272 306, 591 +1.1 286, 243 20), 218 9, 446 
Idaho. _.._- ‘ 31, 967 —8.9 27, 160 27,174 | +26.3 25, 868 1, 306 (*) 314, 596 | +27.3 304, 101 10, 483 ‘ 
Montana..... 46, 935 | 7.2) 41,236 | 39,540 | +36.8 39, 540 (2) Q 437, 567 | +35.8 437, 507 ( (2 
as ° 17,302 | —22.1 | 15, 476 | 15,480 | —15.8 13, 896 1, 584 319 169,645 > —15.1 158, 792 | 10, BS 2, 247 
Wyoming. 11,263 | +8.4 | 8,925 | 8,957 | +45.4 7, 747 1, 210 638 115,836 | +50.4 104, 640 11, 196 5, 029 
Region XII: 
California. 498,205 | —10.2 | 434,912 432, 286 f — 8 | 375, 280 57,006 40,942 | 6,005, 199 —4.0 5,484,853 | 514,922 | 361,473 
Nevada. . 12,671 | —6.7 | 11,322 10, 713 | +5 4 9, 691 1, 022 359 139, 791 +42 | 129, O41 | 10, 750 3, 514 
Oregon... ‘ 57,112 | —13.8 | 41,544 35, 020 | 433.0 31, 700 3, 320 2, 209 421,442 | +27.6 304, 322 | 2, ON 17, 300 
Washington... __| 88, 189 | —16.0 74,048 | 74,134) +3.8 66, 197 7, 937 (‘) 909, 676 $2.5 841, 619 | 68, 057 ‘ 
Territories: | | 
Alaska... pemainais 5,270 | +53.5 3, 430 | 3,025 | +48.7 2, 832 193 0 2,969 | +47.1 40, 910 2.059 0 
STS 4,529 | +54.6 3,111 2,911 | +66.9 2, 154 757 755 18,323 | +31.8 14, 592 | 731 4, 722 
1 Waiting-period claims are represented by difference between total num- ‘ Data for partial unemployment included with data for part-total unem- 
ber and number of compensable claims. ployment. 
2 Benefits for partial and part-total unemployment are not provided by § Payments for partial and part-total unemployment are made for benefit 
State law in Montana, New Jersey, New York, and Pennsylvania. periods of 1 quarter. Number of weeks represented by each such payment 
‘Includes supplemental payments, not classified by type of unemploy- ~ determined by dividing payment by claimant's benefit for total unem- 
ment. ployment. 


Social Security 


70 





- less 

Re- 
n for 
and 


artia) 
nly? 


(4 
4, 535 
8, 35] 


ia) 
a 
2, 058 


062 
239 
404 


320 
“61 





Table 5.—Continued claims received for all types of 
unemployment,' by State, for weeks ended in Febru- 


ary 1941 
[Data reported by State agencies, corrected to Mar. 21, 1941] 


[In thousands] 





Weekly average Number for week ended— 


Social Security Per- 
Board region and centage | | 
State Num- | | Feb Feb.8 | Feb.15 | Feb- 
her change eb.1 | Feb. § eb. 15 | “59 
from | | 
January | 
= —_ —— —— ———— 
Types of unemploy- 
ment: 
All types--- 1,025.1 —6.2| 1,073.7 | 1,052.6 | 1,003.7 | 970.4 
Total only 933. 2 4.1 973.6 | 957.8 914.5 | 887.1 
Partial and part 
total_. 91.9 — 23.1 100.1 04.8 89.2 83.3 
All types 
Region I: 
Connecticut 11.5 +13. 2 10.7 11.3 12.7 11.4 
Maine 5 6.2 — 25.7 6.9 6.6 6.2 5.2 
Massachusetts 44.5 —15.8 47.2 5.6 43.6 41.8 
New Hampshire 3.3 —27.9 3.6 3.7 3.1 2.9 
Rhode Island 7.2 —9.9 7.8 7.7 6.8 6.6 
Vermont. . 2.9 17.1 3.2 2.8 2.9 2.6 
Region II: | 
New York ? 158.7 —10.8 169.9 162.5 | 152.8 | 149.5 
Region IIT: 
Delaware 3.1 736.2 2.9 3.0 3.3 3.2 
New Jersey ? 44.1 —2.2 47.7 44.5 43.1 41.0 
Pennsylvania ? 80.3 —12.7 83.3 80.7 77.5 79.8 
Region IV: 
Dist. of Columbia 6.3 +24.0 6.3 6.4 6.4 6.3 
Maryland 9.9 —13.6 10.3 9.9 9.8 9.4 
North Carolina 15.4 18.8 16.3 14.2 16.4) 14.6 
Virginia 8.6 —21.8 8.9 9.5 8.6 7.5 
West Virginia 8.3 9.1 8.8 8.6 8.4 7.4 
Region V: 
Kentucky 5.3 8.1 1.6 5.3 5.8 4.6 
Michigan 31.4 +11.7 32.6 32.0 31.0 30.1 
Ohio 52.0 1.2 55.8 55.4 50.0 46.8 
Region VI: | 
Illinois 59. 4 18.7 63.7 61.8 55.9 56.1 
Indiana 18.7 11.9 17.5 19.5 16 20.9 
Wisconsin 2.6 16.5 14.2 13.1 2.1 11.1 
Region VII: 
Alabama 13.1 9.9 13.2 13.4 14.0 11.8 
Florida 9.1 18.8 8.8 9.6 4 9.7 
Georgia 12.4 11.4 11.7 13.3 12.4 12.3 
Mississippi 7.1 +1.9 7.4 7.3 7.1 6.5 
South Carolina 6.3 23.4 6.8 6.6 6.3 5.4 
Tennessee 17.5 16.8 18.2 18.6 16.2 17.0 
Region VIIT: 
Iowa 18.3 +16.2 18.4 18.4 18.4 17.9 
Minnesota 12.3 +17.0 31.8 32.2 32.5 32.6 
Nebraska 7.2 +-8.7 7.5 7.9 7.3 6.1 
North Dakota 3.1 +22.4 3.2 3 3.1 3.0 
South Dakota 1.9 —1.1 2.1 2.0 1.9 1.6 
Region IX: 
Arkansas 10.8 +9.5 10.4 11.1 11.1 10.8 
Kansas 3 119.0 9.8 8.7 06 9.2 
Missouri 24.1 —3.6 25.3 26.8 23.5| 2.6 
Oklahoma 10.8 7 9 10.7 | 11.3 10.9 10.2 
Region X: } 
Louisiana 16.8 —10.2 17.6 | 17.9 17.9 13.8 
New Mexico 14 43.6 2.8 3.5 3.4 2.9 
Texas 27.6 3.7 3.8 2.5 2.0 25.1 
Region XI: 
(rizona 2.6 5.2 2.8 2.7 2.6 2.3 
Colorado 0.0 4.0 8.8 9.9 9.0 8.2 
Idaho 8.1 g.8 8.6 7 8.0 7.1 
Montana ? 11.1 19.9 11.4 11.7 11.6 9.6 
Utah 4.5 8.0 4.8 4.7 4.4 4.1 
Wyoming 2.7 19.2 2.8 2 a7 2.3 
Region XII: 
California 123.8 +-1.0 130.6 122.5 118.7 | 123.4 
Nevada 1.2 +-12.9 3.4 3.3 3.1 2.8 
Oregon 14.6 $1.5 16.0 15.6 14.7) 12.3 
_ Washington 22.4 5.5 23.9 24.2 21.0) 2.5 
lerritories 
Alaska 1.3 4+83.8 1.0 1.0 1.6 1.5 


Hawaii 1.0 +-70.0 9 1.0 1.1 1.0 





Represents claims for total, partial, and — unemployment. 
* Does not provide benefits for partial and part-total unemployment. 


Bulletin, April 1941 


310125—41 4 


and Wyoming. The 9 States reporting higher dis- 
bursements were California, the District of Colum- 
bia, Idaho, Louisiana, Minnesota, Nevada, North 
Dakota, Oregon, and South Dakota. Modifica- 
tions of benefit provisions have been responsible 
for some of these increases. Of the 31 States 
which have paid benefits throughout January and 
February in each of the last 3 years, 20 States 
paid less benefits in 1941 than in the corresponding 
months of any previous year. On the other hand, 
California, the District of Columbia, and Minne- 
sota paid more in the first 2 months of 1941 than 
in any previous corresponding period. 

Weeks compensated.—Unemployed workers re- 
ceived compensation for approximately 3.3 million 
weeks of unemployment during February, of which 
almost 3 million or 91 percent represented weeks 
of total unemployment (table 4). The number of 
weeks of partial and part-total unemployment 
compensated in February totaled more than 
279,000, a decrease of 29 percent from January. 
Decreases were shown in 31 of the 47 States which 
issue such payments. Delaware, Hawaii, and 
Illinois were the only agencies in which a fifth or 
more of all weeks compensated were for partial 
and part-total unemployment. 

Average number of claimants.—The decline in 
the average number of benefit recipients, though 
slight, was especially significant (table 6), because 
normally a rise occurs after claimants serve re- 
quired waiting periods in January. All but 4 of 
the 21 States reporting fewer benefit recipients in 
February were east of the Mississippi. The sbarp- 
est reductions occurred in Maine, New Hamp- 
shire, and Tennessee, where decreases ranged from 
23 to 26 percent. In addition, declines of more 
than 10 percent were reported by Florida, Llinois, 
Maryland, Massachusetts, New York, North 
Carolina, South Carolina, and Virginia. On the 
other hand, more benefit recipients were reported 
in 30 States, most of which were concentrated in 
the western United States. Increases of more than 
50 percent were reported by Hawaii, Montana, 
Oregon, and Wyoming. 


Status of Funds 


Collections deposited in State clearing accounts 
during February approximated $89 million, bring- 
ing deposits in 1941 to more than $218 million. 
For comparable States, collections for January- 


71 








Table 6.—Average weekly number of claimants receiving 
benefits, number receiving first payments, and num- 
ber exhausting benefit rights, by State, February 1941 


[Data reported by State agencies, corrected to Mar. 21, 1941) 



































Claimants Claimants Claimants 
receiving receiving first exhausting bene- 
benefits ! payments fit rights 
Social Security ; 
— Aver- | Per- Per- Per- 
age centage Num- centage Num- centage 
weekly | change | “},¢ change | “be | change 
| num- | from . from T | from 
ber | January January | January 
Total_____. -/806, 364) —24 ete }?—12.9 3170,869 | #—11.2 
'] | 
Region I: | 
Connecticut.....| 7,850) +244 4, 156 +.3 1, 867 +11.3 
Maine........... 5,723 | —26.3 936 | —41.9| 41,307 —19.5 
Massachusetts.._| 38, 951 —14.3 | 11,403 —33.0 6, 629 —17.3 
New Hampshire} 2,716 | —23.9 733 | —23.4 837 —6.8 
Rhode Island_...| 6, 607 +.6 1,844 | —31.8) 1,918 —15.7 
Vesmnast ee tseeaiied 2, 122 +6.5 1, 165 —9.4 | 204 —34.2 
n II: 
ew York..._._- 133,503 | —11.0| 35,104) —27.5 | «98, 272 |} —20.7 
Region III: 
Delaware_____..- 2,476 | +48.4 1,632 | +35.9 608 +15.4 
New Jersey_.....| 32,082 | +16.4| 15,789 | -—27.6 9, 370 +18. 5 
Pennsylvania____| 56, 578 —5.3 | 33,606 —6.2 17, 843 —2W.3 
Region IV: | 
Dist. of Col... 5,005 | +31.7 2,005 | +45.6 624 | —.3 
ee 7, 7 —16.9 1,949 | —25.7/| 2,045 | —6.3 
North Carolina_-| 11, 972 —12.7 3,647 | —30.6 | 42.007 —14.1 
Virginia... ....- 7,923; —188/ 2,436| —30.4 | , 1,627 —19.1 
West Virginia..__| 6,137 | -—-7.5| 2,062 —7.4 |} 41,306 —13.2 
Region V: | | 
entucky. ...... 8, 702 —7.7 2,675; +.6/ 1,416 —33.1 
ichigan........| 24,485 | +18.9| 10,155 | —25.6 3, 471 —24.6 
Ee RR 38,408 | —5.7| 12,749| —16.1/) 47,063 | —13.5 
ion VI: | 
SS 54,976 | —11.8| 13,492 | —37.6| 11,678 ~3.8 
Indiana... __- 14,158} —7.3 () |. | @& 
Wisconsin _ _-.._. 8, 273 +8.6 g) | i 
Region VII: | 
Alabama. -..... 9,809) -5.6) 3,644) +16.9/ 1,565 —15.6 
Florida.--_--.--. 7,067 | —14.9)| 2,563) —44.5 1, 263 —27.0 
Georgia__.......- 8, 860 +8.7|) 4,157/ +27.5| 3,499) +19.7 
Miss sippi iad 5,7 +65!) 2,235) -—19.4)| 1,007 —2.7 
South Carolina..| 4,924 | —15.8| 1,944 | —148! ¢909| -—20.7 
Tennessee... ... 11,925 | —225|) 4,477) -126/ 42,165) —220 
Region VIII 
Re ideibeebinnnae 11,852 +39.5 7,176; —4.2 1, 828 +31.6 
Minnesota. 26,112 | +39.6| 11,774) +18] 3,501 —21.7 
Ne ae 6,148 | +35.4 2,458 | —18.7 | 670 —25.1 
North Dakota_..| 2, 265 +47.9 1,128 | +31.8 308 —6.7 
South Dakota...| 1,658 | +16.8 388 | —42.8 $230, +39.3 
Region IX: | 
Arkansas. _.... 8,062 | +121 4,431 | +5.6 1, 380 —6.3 
Kansas__....... | §,897 +34.8 3, 909 +19.9 1, 835 | +4.7 
Missouri___. | 14,927 +62) 11,273 | +148 6, 261 +53. 3 
Oklahoma. -_-- |} 8,002; +17.1 4, 334 —8.9 2, 655 +4.7 
Region X: 
Louisiana____.- | 13, 769 —8.5 |} 5,233) -10.0| 3,458 —24.1 
New Mexico 2, 77 +18. 2 1,031) 9.0) 414 —21.9 
ee 17,496 | 6.7 8, 411 —4.4 3, 907 —21.1 
Region XI: | | 
Arizona____._-- | 1,923; —43 848 —47 631 +26. 4 
Colorado. 7,469 | +15.4 3,018 | —I1L8 1,179 4 
daho........-- 5,819 | +21.1 3,068 | +43.6 06 —41.2 
Montana. --.-- 9,197 | +53.2 3,349 | 6.6 4 863 +13.4 
Ee, +.6 974 | —47.0 1, 040 +13.5 
be -------| 2,000| +514] 880 | +38. 4 395 +3.1 
n : | 
California _. 100, 919 —7.7 | 41,010 | 419.3 | 15,346 | +4.3 
Nevada.____- | 2,484 +8.7/ 1,038 —3.2 | 476 +27.3 
Oregon...___. | $526) +532) 5,30] —36.8 (6) 
Washington. - 18,914 +15.5| 8,051| —16.6 2.611 —18.0 
Territories: 
Alaska ___. 696 +418 406 | +59.2 70 +27.3 
Hawaii___._- 627 | +77.1 593 | +114.1 205 +55. 3 





1 Represents average number of weeks of unemployment compensated 
during weeks ended within month. 

1 Excludes Indiana and Wisconsin. 

3 Excludes Indiana, Oregon, and Wisconsin. 

‘ = er claimants exhausting benefit rights under uniform-duration 
provisions of State law. 

5 Data not comparable. 

* Data not reported. 


72 


February were only $2 million above collections 
for the first 2 months of 1940, despite the higher 
level of employment and pay rolls during the last 
quarter of 1940. The increase was not as large 
as might be expected, partly because in nearly al] 
States wages earned from a single employer jn 
excess of $3,000 a year are no longer liable for cop. 
tribution and because a number of States shifted 
from a monthly to a quarterly collection basis. 
Increases of more than 45 percent, however, were 
reported by Alaska and New Hampshire, and in 
Connecticut, Michigan, and Mississippi collections 
increased from 20 to 25 percent. The sharp 
increase in New Hampshire is primarily attribut- 
able to receipt of contributions from employers 
who report on a semiannual basis, while the gains 
in Connecticut and Michigan reflect the sharp 
advances in industrial employment resulting from 
the defense program. Operation of the experience- 
rating plan contributed to the reduction of 36 
percent in Nebraska. Total funds available for 
benefit payments increased more than $51 million 
from January and amounted to nearly $2 billion 
at the end of February. 


Interstate Claims, Fourth Quarter 1940 

There is little evidence to date of the effect of 
the defense program on the movement of inter- 
state workers into areas where defense contracts 
have been heaviest. The trend of data for weeks 
compensated on interstate claims received as 
liable State and claims forwarded as agent State 
shows no marked variation between States with 
large defense contracts and those least affected 
by contract awards. Any consideration of the 
effect of the defense program on interstate migra- 
tion, as analyzed from data on interstate pay- 
ments, must take into account several factors. 
For example, if claimants are willing to migrate 
in search of defense jobs prior to exhaustion of 
benefit rights in the State of residence, States where 
job opportunities are thought to exist would have 
a relatively increased number of claims to forward 
as agent State. Similarly, if claimants who 
migrate to industrial States for seasonal work 
stay on in anticipation of defense employment, 
claims that would ordinarily be drawn on the 
liable State after these workers return home would 
now be filed as intrastate payments. On the 
other hand, there is a strong possibility that inter- 


Social Security 





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state migration will be reduced to a minimum 
as more jobs become available at home. 

Of the more than 9 million weeks of unemploy- 
ment compensated for the country as a whole in 
the fourth quarter of 1940, 479,000 or 5.3 percent 
were accounted for by claimants seeking compen- 
sation for work performed in a State outside the 
one in which they filed their claims. This propor- 
tion was larger than in any of the first 3 quarters of 
1940, when the proportions were 4.2 percent, 3.7 
percent, and 3.9 percent, respectively. 

The number of weeks compensated on interstate 
claims in the fourth quarter declined below a half 
million for the first time in 1940, however, with 
almost half the States reporting the lowest volumes 
of the year. Decreases from the previous quarter 
in liable weeks compensated were noted in 31 
States, with concentrations in the New England 


and New York, Great Lakes, Southeast and Gulf, 
and Southwest areas. The sharpest reductions of 
79 percent and 55 percent were shown for Alaska 
and Michigan, respectively; decreases ranging 
from 25 percent to 45 percent were reported in 
Florida, Massachusetts, Maryland, New York, 
Tennessee, and West Virginia. On the other 
hand, nearly all States in the West North Central 
and Pacific Coast areas reported increases in 
claims received as liable State. Major expansions 
occurred in the District of Columbia, Idaho, and 
California, the increases in the latter 2 States fol- 
lowing almost equally sharp declines in the 
previous quarter. 

The patterns displayed in previous quarters of 
the year prevailed again during the fourth quarter, 
as neighboring States transmitted most of the 
interstate claims compensated by adjacent States. 


Table 7.—Collections deposited in State clearing accounts, January-February 1941, and funds available for benefits 
as of Feb. 28, 1941, by State 


{Data reported by State agencies, corrected to Mar. 20, 1941) 


{Amounts in thousands] 























: | 
Collections deposited | ‘Transfers to | ! Collections deposited Transfers to 
————) railroad un- Funds een railroad un- Fusts 

a ae 7 . available for |) onic) Gannrity available for 

Social Security Board Percentage employment benefits as || Social Security Board Percentage employment benefits as 

region and State January | insurance | —* 4 i] region and State January- insurance 
February | Change from | gecount, as ot | Feb. 28, | February | “2ange from | , count, as of | °! Feb. 28, 
1941: |, January~ | Feb. 28, 1941| 941" 1941 | January~ | Feb. 28, 1941| 41? 
< February 1940 9 February 1940; a 
Total $218, 092 +0.8 $103, 174 $1, 056, 366 Region VII—Contd. | 

, - —_——— | -_ —_-———. ~—_ Carolina. $1, 342 +" $691 — = 

Region I: ennessee___. 2, 5 1, 527 15, 
Connecticut 6, 108 +- 24.8 | 789 | 47, 876 || Region VIII: 

Maine... - 1, 054 —1.5 255 4,711 || lowa--. ‘ 1, 731 | —13.9 2, 122 17, 542 
Massachusetts 10, 002 —3.3 2, 313 84,582 || Minnesota. --_-- 2, 474 | —32.0 2,517 24, 298 
New Hampshire 976 +45.3 238 6, 775 Nebraska. - -_--- 638 | —35.8 1, 682 9, 557 
Rhode Island 2, 692 +2.6 152 13,768 || North Dakota... 92 | @) 577 2,043 

tT 424 ( 327 3, 474 |} one Drees. % 275 | —6.5 403 3, 322 
gion II: | Region : 

New York 31, 022 +1.2 6, 858 221,716 || Arkansas 871 —3.9 1, 088 | 7,039 

Region III Kansas... 1, 203 | —1.2 2, 725 | 14, 696 
Delaware 584 —9.9 461 7,405 || Missouri 5, 622 | +9.0 4,871 | 62, 654 
New Jersey 13, 057 +7.3 4, 269 141,425 || Oklahoma 1, 517 | —10.3 1,001 17, 707 
Pennsylvania 21, 060 —8.6 6, 699 147,523 || Region X: 

Region IV: || Louisiana... 2, 215 | (O) 1, 180 18, 718 
Districtof Columbia 1, 345 (0) 790 20,610 || New Mexico. } 352 | +2.7 515 2 
Maryland 3, 509 +3.5 1, 195 24,049 || Texas 3, 841 | () 4,227 57,458 
North Carolina 2, 217 +7.6 1, 103 26,142 || Region XI: } 

Virginia 2, 787 +5.0 2, 454 21, 519 Arizona 533 —4.2 338 3, 488 
West Virginia 1, 726 —8.5 1, 002 | 20, 297 Colorado... ..- | 1, 142 —10.8 1, 528 10, 516 

Region V: | Idaho... P 536 +4.4 373 2, 696 
Kentucky 2, 807 4+1.2 2, 467 32, 195 Montana. __- 1 750 +9.7 1, 186 5, 426 
Michigan 15,016 +24.5 1, 932 82, 708 Utah_. | 749 +7.0 517 4,341 

— i 15, 620 —1.0 8, 535 | 174, 00 wre . 310 +5.0 602 2, 220 
egion VI: | Region : 

Illinois 17, 588 —7.8 | 13, M41 201, 807 California 19, 171 | —3.0 7, 804 163, 862 
Indiana 6, O88 +15.8 3, 190 48, 820 Nevada. - ; 251 | 10.4 357 1, 178 
Wisconsin 1, 629 —8.4 1, 964 58, 042 Oregon.._. 1, 706 | +1.8 590 11,071 
~_—— VI: } oon | 2,817 +19 1, 675 23, 425 
ama 2,812 4+-12.4 |. | 19,411 || Territories: } | 
Florida 1, 45 +11.2 1, 509 13,401 || Alaska. . 147 | +46. 9 13 | 1, 248 
el ; 2, 042 —5.0 27,166 || Hawaii --. 463 | —.2 80 7,040 
Mississippi 834 420.9 642 4, 539 || | 








! Represents contributions plus such penalties and interest collected from 
employers and contributions from employees as are available for benefit 
— Figures are adjusted for refunds of contributions and for dis- 

onored contribution checks. Employer contributions of 2.7 percent of 
taxable wages are collected in all States except Michigan, where rate is 3 
percent. As of January 1941, modified rates became effective under the 
experience-rating provisions of 15 State laws. Employee contributions of 
1.5 percent of taxable wages are collected in Rhode Island and of 1 percent in 
Alabama, California, Kentucky, and New Jersey. Contributions are col- 


Bulletin, April 1941 


lected on monthly basis in North Carolina, West Virginia, and Wisconsin. 
All other States collect, either wholly or in part, on quarterly basis. 

? Represents sum of balances at end of month in State clearing account, 
benefit-payment account, and unemployment trust fund account maintained 
in the U. 8. Treasury. Figures are adjusted for transfers to railroad unem- 
ployment insurance account. ; 

3 Not computed because data for States that shifted either wholly or in part 
from a — to a quarterly contribution basis during 1940 or 1941 are not 
comparable. 


73 








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75 





Even among States receiving high proportions of 
claims from adjacent States, however, the propor- 
tions were somewhat reduced from the July—Sep- 
tember period. At least three-fourths of the 
weeks of unemployment compensated by Nevada, 
New Hampshire, and Oregon were forwarded from 
adjacent States, and 27 other States made more 
than half of their payments to contiguous States. 
All but 5 States which received more than 60 
percent of their claims from adjacent States in the 
previous quarter repeated the pattern in the fourth 
quarter. In some instances, claims for approxi- 
mately half of all weeks compensated were for- 
warded by a single State bordering the liable 
State. As in the previous quarter, adjoining 
States forwarded a relatively small portion of the 
interstate claims compensated by California, 
Colorado, the District of Columbia, Florida, 
Maine, Montana, and Utah. 

Extensive migration among covered workers 
continued to be evident during the fourth quarter. 
Claimants in every State and Territory received 
benefits from California, Illinois, and New York 
for work performed in those States. Similarly, 
Florida, Michigan, Ohio, and Pennsylvania com- 
pensated claims originating in all but one juris- 
diction in the continental United States. With 
the exception of Florida, which offers primarily 
resort-job opportunities, these States have diver- 
sified industrial patterns and regularly attract 
workers from all sections of the country. Nearly 
every State received interstate claims from at 
least 30 agent jurisdictions. 

While the large industrial States pay substan- 
tial benefits to out-of-State claimants, they also 
act as agent States for many claimants. As agent 
State, California transmitted claims to 50 juris- 
dictions, and Illinois, Michigan, New York, and 
Ohio sent claims to at least 48 jurisdictions. The 
majority of the States forwarded their claims to 
nearby States, but there were several notable ex- 
ceptions. Between 10 and 17 percent of the weeks 
of unemployment compensated on interstate claims 
in Illinois, Indiana, Michigan, New York, and 
Ohio were forwarded by California. Similarly, 
Florida acted as agent State for 18 percent of the 
weeks compensated on interstate claims in New 
York, 15 percent in New Jersey, 6 percent in Ohio, 
and 5 percent in Michigan. 

A majority of the States transmitted more 
claims as agent State than they compensated as 


76 


liable State, an indication that in most States the 
influx of claimant workers is greater than the 
movement of native workers to other States, 
More than a third of all interstate claims were 
compensated by California, New York, and []lj- 
nois. Alaska, Montana, and Wyoming compen- 
sated more than twice as many claims as they 
transmitted, and Illinois and New York compen. 
sated almost twice the number transmitted. On 
the other hand, Florida, Hawaii, Oregon, and 
Wisconsin forwarded between two and three times 
the volumes of claims compensated as liable State. 
In Wisconsin, this marks the fourth time in as 
many quarters that this proportion has been at 
least equaled, principally because of the steady 
migration of workers who return to draw benefits 
after employment in the highly industrialized 
sections of northern Illinois. 

A comparison of the fluctuations in the level of 
out-of-State and resident unemployment is af- 
forded by an analysis of the volume of weeks com- 
pensated on interstate and intrastate claims 
throughout the year. After remaining at virtually 
the same level during the first three quarters of 
1940, the number of weeks compensated on inter- 
state claims declined 14 percent in October- 
December from the previous quarter. On the 
other hand, the volume of weeks compensated on 
intrastate unemployment varied considerably from 
quarter to quarter, with a decline about three times 
as sharp during October-December as for inter- 
state claims. These movements evidence the rela- 
tive stability of interstate employment, indicating 
that out-of-State workers are attracted in large 
part to seasonal industries. 

Despite the limitation in using an ‘average’ 
payment, it is of interest to note that the average 
check for a week of total unemployment compen- 
sated on interstate claims during this quarter 
approximated $11.38 in contrast to $10.70 for a 
week of intrastate total unemployment. Inter- 
state payments averaged higher not only for the 
country as a whole but for virtually every State, 
in about the same proportion as the over-all aver- 
ages. The larger average benefit check is prima- 
rily accounted for by the fact that a majority of 
interstate workers are men, and most are engaged 
in manufacturing and construction, whereas the 
average for intrastate workers is weighted by the 
lower earnings of women, as well as of lower-paid 
workers in trade and service. 


Social Security 





the 
the 
tes, 
vere 
Ili. 
en- 





Characteristics of Placements, Fourth Quarter 
1940 

Public employment offices continued to play an 
increasingly important role in meeting labor needs 
of employers during the fourth quarter of 1940. 
Placements during October-December numbered 
1,150,000, a gain of 16 percent over the previous 
quarter and of 25 percent over the corresponding 
quarter of 1939. More jobs were filled in private 
employment in October-December 1940 than in 
any other quarter on record. It should be noted 
that each month of 1940 established a new high 
over the corresponding months of previous years. 

If construction placements, which showed an 
exceptional gain, are excluded from the totals, the 
increase would be 8.7 percent over the third quar- 
ter of 1940 and 17.1 percent over the fourth quarter 
of 1939. Similarly, the relative gain from the 
third to the fourth quarter would be approximately 
the same in 1940 as in 1939. 

Placements by industry.—The effect of the de- 
fense program was particularly evident in the very 
large increase in construction placements. Such 
placements, many of which were made in connec- 
tion with building army camps, airports, and ord- 
nance plants, increased to 241,000, an expansion 
of 55 percent over July-September and of 66 per- 
cent over October-December 1939. Whereas con- 
struction placements decreased in 1939 from 24 
percent of all placements in the third quarter to 16 
percent in the fourth quarter, a reversal from 16 
percent to 21 percent occurred for the same periods 
in 1940. This change obviously affected the rela- 
tive importance of all other groups. 

The unusual increase in construction placements 
in the fourth quarter was accompanied by a some- 
what less sharp expansion of placements in trade, 
reflecting largely the filling of jobs created by 
Christmas needs in the distributive industries. 
Placements in wholesale and retail trade were 40 
percent greater than in the previous quarter and 
59 percent greater than in the fourth quarter of 
1939. Although placements in manufacturing 
increased over the previous quarter, they were 
substantially higher than in the same period a 
year ago, the changes amounting to 8.4 percent 
and 26 percent, respectively. 

Construction provided the largest field for job 
opportunities in the fourth quarter for the first 
time in 1940, accounting for 21 percent of all 
placements made. Placements in domestic serv- 


Bulletin, April 1941 


ice, which previously held first place in 1940, de- 
clined in relative importance from almost 29 per- 
cent in the first quarter of 1940 to approximately 
20 percent in the last quarter. Manufacturing 
and trade accounted for 19 percent and 18 percent 
of the total, respectively. Although only 7 per- 


Table 9.—Complete placements of men and women, by 
industry and race, October-December 1940 


[Data reported by State agencies, corrected to Feb. 25, 1941] 
































] 
| Total Men Women 
Percent-| 
age | 
Industry change 
Number} £°™ | ‘Total | White| Total | White 
Septem-| 
| r | 
| 1940 | 
} 
= = | — 
Total__. I, 149, 990! +16. 0/720, 874) 587, 550/420, 116 340, 856 
Agriculture, forestry, and | 
ae : 76, 501 —33. 1| 68,906) 58,404) 7,505) 5,838 
| EES Re — 6, 191 —5.8| 6,073) 5,637 118 116 
Construction.............| 241, 368 +55. 0)/240, 101/185, 485) 1,267! 1,228 
Manufacturing... _._- | 217, 142 -+8. 4) 142, 498/129, 775) 74, 644! 70, 900 
Transportation, commu- | 
nication, and other pub- 
jl RP neenes 27, 878 +21. 6) 26,400) 21,638) 1,478) 1,453 
Wholesale and retail trade_| 209, 420 +39. 7| 99,745) 83, 724,109, 675 105, 623 
Finance, insurance, and j 
ont epeeee......~........ 8, 250 +9.4) 5,123) 4,087] 3,127) 2,948 
Service industries_........| 361, 302 +8. 6/130, 221) 97, 085 231, 081 152, 622 
Domestic service.......| 234, 840 +8. 9) 45, 253) 30, 134 189, 587,114, 660 
Regular Government | 
agencies. ____. 28, 371 +48. 5) 24, 939) 21,729 3,432) 3,305 
Government relief proj- | | 
ee 9, 459 +5.2| 6,857) 6,095) 2,602) 2,484 
Other service. ___- -| 88,632 —.3) 53,172, 39,127) 35, 460, 32,173 
Establishments not else- | | 
where classified. .....___| 1,938 +37.4) 1,807) 1,72 | 131) 128 





cent of all placements were made in agriculture, 
forestry, and fishery, it should be recognized that 
such placements represent only a part of the 
service rendered in this field, since most of the 
jobs filled in farm work are usually classified as 
supplementary placements. During October- 
December, approximately 477,000 supplementary 
farm placements were made in addition to 77,000 
complete agricultural placements. 

Placements by occupation.—The largest relative 
gains in placements during the fourth quarter 
occurred in the unskilled, skilled, and clerical and 
sales occupational groups. Placements of un- 
skilled registrants numbered 329,000, increasing in 
relative importance from 25 percent of all jobs 
filled in the third quarter to 29 percent in the 
fourth quarter. Similarly, placements in skilled 
and related occupations numbered 125,000, com- 

* Comparison between periods prior to July 1940 aad subsequent periods 


is not valid for most occupational groups because of the change in occupa- 
tional classification effective at that time. 


77 








prising 11 percent of all placements as compared 
with 9 percent in July-September. The increase 
in the skilled group during the fourth quarter 
was primarily due to the demand for construction 
workers in army cantonments and was particu- 
larly pronounced in Arkansas, Florida, Ken- 
tucky, Louisiana, North Carolina, Vermont, and 
Wyoming. 

The only other occupational category to show 
an increase in the relative proportion of place- 
ments completed by public employment offices 
was the clerical and sales group, which accounted 
for 159,000, or 14 percent of all jobs filled. Al- 
though more placements—333,000—were made in 
service pursuits than in any other occupational 
group, their relative importance as a source of job 
opportunity declined slightly. Placements in the 
semiskilled group declined to 109,000, or about 
10 percent of the total, and those in agriculture, 
forestry, and fishery, which comprised 12 percent 
of placements in July-September, decreased to 
82,000, only 7 percent of the total. 

Reflecting holiday labor needs in the distribu- 
tive industries, placements in clerical and sales 
jobs experienced the sharpest increase—65 per- 
cent—over the previous quarter. Placements in 
the skilled crafts and in the unskilled categories 
expanded 43 percent and 34 percent, respectively. 
Although declining relatively, service placements 
increased 7 percent over the third quarter. By 
far the sharpest decline from the third quarter was 
shown for placements in the professional and 
managerial category, which declined to almost 
half the July-September volume. Of signifi- 
cance also was the decline of 3 percent from the 
third quarter in the number of semiskilled 
workers placed. 

Placements of men and women.—Placements of 
men during the 3-month period numbered 721,000, 
and those of women 429,000. Jobs filled by men 
in this quarter comprised 63 percent of all place- 
ments as compared with 59 percent in the corre- 
sponding period of 1939; the increase mainly 
reflected the larger volume of placements in 
construction. Each of the first 3 quarters of 1940, 
however, showed an increase in the proportion of 
placements of women over the corresponding 
quarters of last year. Placements of men showed 
a 32-percent gain over October-December 1939, 
while placements of women increased only 15 
percent. 


78 


Table 10.—Complete placements of men and women, by 
occupation and race, October-December 1940 


[Data reported by State agencies, corrected to Mar. 1, 1941] 





Le 





Total Men Women 
| Percent-| | 
| age | 
Occupation change | 
Num- from a res _ j 
ber i | Total | White Total | White 
| Sep- | 
tember | | | 
1940 
Total_.._. 1, 149, 990 +16.0 720,874 587,559 429,116 340, asa 
Professional and man- 
agerial.__- 9, 442 44.0 7, 384 7,307 2,058; 1,976 
Clerical and sales 158, 871 +64.5) 58,447 57,925 100, 424) 100, 076% 
Service 332, 952 +6.7) 95,764 61,459 237,188) 158, 269 
Agricultural, fishery, | 
forestry, and kin- 
dred $2, 184 —29.3) 73,406 60,220) 8,778) 7,05) 
Skilled 124, 625 +43.2 117,836 114, 830 6, 7389 6, 309 
Semiskilled 109, 007 —2.8 76,737) 70,625, 32,270) 30,824 
Unskilled 328, 757 +33. 8 290,966 214,869 37,791 33,021 
Unspecified 4,152 —10.3 334 324 3,818 3.339 
B , -_? " 
The more industrialized States generally 


reported a relatively greater number of placements 
of women, reflecting the gain in placements of 
domestic servants, although such placements 
declined relatively in each quarter of the year. 
In New Jersey and New York, placements of 
women exceeded those of men in each of the four 
quarters of 1940; and in Delaware, the District 
of Columbia, Illinois, and West Virginia, place- 
ments of women exceeded those of men for the 
year as a whole. 

Age of persons placed. 
dominated the trend of placements in the various 
age groups during 1940. Placements of junior 
registrants during the fourth quarter gained in 
relative importance, largely because of employ- 
ment in the Christmas trade. Although the 
number of placements in the younger and older 
age groups—i. e., under 25 and 55 and over——each 
increased approximately 25 percent 
October-December quarter of a year ago, their 
proportion of all placements remained the same 
in both periods. 

The greatest concentration of placements of 
men was in the age groups below 35, which 
accounted for 62 percent of all placements of 
men. The most marked change in the age dis- 
tribution of placements for men occurred among 
the youngest registrants. As in 1939, the age 
group of men 20 years of age and under accounted 
for only 11 percent of all male placements in the 
first quarter of 1940 but increased to 17 percent 
in the fourth quarter. All other age groups 


Seasonal influences 


over the 


Social Security 





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remained relatively the same or showed moderate 
declines. 

Placements of women showed even greater con- 
centration in the younger age groups than did those 
of men. ‘Twenty-five percent of the placements 
of women were of registrants under 21, and 42 
percent of the female placements were of women 
less than 25 years old, in contrast to 17 percent 
and 33 percent, respectively, for men. Similar 
to the trend for men, the proportion of place- 
ments of women under 21 years increased over the 
year, while practically all the other age intervals 
showed relative declines. 

Duration of jobs filled——During the fourth 
quarter, public employment offices made approxi- 
mately as many placements with private employers 
on jobs expected to last more than a month 
(regular placements) as they did for jobs of shorter 
duration. In terms of occupations, more regular 
jobs were filled in semiskilled occupations than 
in any other occupational group; fully 78 percent 
of all private placements in that category were 
expected to last longer than a month, approxi- 
mately the same proportion as in the previous 
quarter. Only a slightly smaller proportion of 
placements in the skilled crafts was expected to 
last more than a month. The proportion of 
regular jobs in this category, however, increased 
from 66 percent in the third quarter to 71 percent 
in the fourth quarter, probably in part as a 
reflection of the increasing desire of employers to 
recruit skilled workers for longer periods in antici- 


Table 11.—Complete placements of men and women, by 
age and race, October-December 1940 





[Data re ported l y State agencies, corrected to Feb. 19, 1941] 
Total Men Women 
Percent 
Age (year ingé | | 
- = Total | White | Total | White 
ber July | 
t } er 
40 

Total 1, 149, OO +16.0 720,874) 587,559 429,116) 340, 856 

Under 21 226, 738 +21.2 119,817) 103,125) 106,921) 95, 731 
21-24 10 13.6) 120,587) 97,823) 75,044) 60,954 
25-29 178, 820 13.4) 117,782) 92,443) 61,047) 45,274 
30-34 137, 24 15.0, 90,082) 70,846) 47,161) 33,774 
35-39 114, 630 18.1 73,094) 57,612) 41,536) 29,743 
40-44 103, 970 16.5| 66,626) 53,521) 37,344) 27,301 
45-49 79, 104 +15.9) 52,526) 43,394) 26,578) 20,786 
50-54 5, 457 +14.4, 38,159) 32,314) 18,298 14,574 
55-59 33, 535 12.2} 24,217) 20,992 9, 318 7, 754 
60-4 16, 661 12.7, 12,295) 10,910 4, 366 3, 668 
65 and over 7, O7¢ 11.0 5, 589 4, 517 1, 487 1, 288 
Unspecified 11 1.7 100 62 16 9 





Bulletin, April 1941 


pation of labor stringencies. Similarly, the pro- 
portion of regular placements in the professional 
and managerial occupations increased from 54 
percent to 61 percent. In every other occupa- 
tional group, the number of temporary placements 
exceeded those of longer duration. The largest 
proportion of temporary placements was made in 
agriculture, forestry, and fishery, and in clerical 
and sales work, in which 68 percent and 61 percent, 
respectively, were for 30 days or less. 


State Amendments 

Some 200 bills relating to employment security 
were introduced in 43 jurisdictions during March, 
and one or more bills were enacted into law in 
each of the following 19 States: Arizona, Arkan- 
sas, Colorado, Georgia, Idaho, Indiana, Iowa, 
Maine, Montana, Nevada, New York, North 
Carolina, North Dakota, Oregon, South Dakota, 
Utah, Vermont, Washington, and West Virginia. 
The amendments deal with almost every phase of 
unemployment compensation, including coverage, 
benefits, eligibility, disqualifications, contributions, 
experience rating, and administration. 

Coverage.—Coverage in terms of number of 
workers was changed in only one State, Wash- 
ington, which extended coverage, effective July 1, 
1941, from employers of eight or more workers to 
employers of one or more. In Arkansas the 
period during which employment of the required 
number of workers (one or more) shall occur, was 
reduced from 20 weeks to 10 weeks in 1941 and to 
10 days in 1942 and thereafter. Three States— 
Arizona, Georgia, and North Dakota—extended 
coverage to employers not otherwise subject to 
the State law but covered by the Federal Unem- 
ployment Tax Act. Oregon enacted a provision 
authorizing employers to elect coverage for 
services covered by the Federal act. Indiana and 
North Carolina repealed common-control coverage 
provisions. 

Ten States adopted employment exclusions 
which substantially conform to the Federal exclu- 
sions: Arizona, Arkansas, Colorado, Indiana, 
Nevada, North Carolina, North Dakota, Oregon, 
South Dakota, and Utah. The deadline for 
application for coverage termination was post- 
poned in Arizona, Arkansas, New York, North 
Carolina, North Dakota, South Dakota, and 
Washington. 

Benefits —Benefit provisions were amended in 


79 








many States. Georgia, one of the few remaining 
States with a long base period—8 or more quar- 
ters—adopted the standard 4-quarter individual 
base period and changed its benefit year to begin 
with the filing of a valid claim rather than with 
the first compensable week. Arkansas changed 
its base period from 4 of the last 6 quarters pre- 
ceding the benefit year to a calendar year, and 
adopted a uniform benefit year beginning with 
July 1 instead of with the filing of a valid claim. 

The benefit formula was amended in several 
States. North Dakota changed the weekly bene- 
fit rate from 50 percent of the full-time weekly 
wage to %. of total wages in the quarter of highest 
earnings in the base period. Georgia abandoned 
the formula of 50 percent of full-time weekly wage 
for a weighted schedule based on high-quarter 
earnings. The effect of the Georgia amendment 
is to weight benefits in favor of the low-wage 
groups. Oregon increased the weekly benefit rate 
from M» to 6 percent of high-quarter earnings; 
Utah, from %, to % of such earnings. The 
maximum weekly benefit amount was increased 
in three States: Georgia, from $15 to $18; Indiana, 
from $15 to $16; and Utah, from $16 to $20. The 
minimum was increased in five States: Maine, 
from $3 to $5; North Carolina, from $1.50 to $3; 
Oregon, from $7 to $10; South Dakota, from $3 
to $7; and West Virginia, from $3 to $6. Arizona 
and Georgia changed from the lesser of $5 or 
% of the full-time weekly wage to a flat $5 for 
Arizona and $4 for Georgia. 

Benefit duration was liberalized in five States. 
Georgia repealed the \% earnings limitation to 
provide a flat duration of 16 weeks; Utah repealed 
its \ earnings limitation to establish a flat dura- 
tion of 20 weeks. Indiana lengthened duration 
from 15 to 16 weeks but retained the 16-percent 
wage-credit maximum; Vermont increased dura- 
tion from 14 to 15 weeks, without change in the 
¥-earnings limitation; and West Virginia, from 14 
to 16 weeks, flat duration. On the other hand, 
Maine and South Dakota, which pay benefits on 
the basis of annual earnings, reduced benefit 
duration for the low-wage groups (shown in 
benefit schedules). Arkansas changed from a 
benefit duration equal to 16 times the weekly 
benefit amount or \ of uncharged wage credits to 
a duration of the lesser of (1) four times the weekly 
benefit amount times the number of base-period 
quarters for which wage credits equal at least \ 


80 


of the high quarter's wages and (2) \ of base- 
period wage credits. 

Partial-benefit provisions were amended in four 
States. Arkansas established partial benefits to 
equal the difference between the weekly benefit 
amount and wages in excess of $3, instead of the 
difference between weekly benefit amount and % of 
wages, as under its old provision. Arizona 
amended partial benefits to equal the difference 
between the weekly benefit amount and earnings 
in excess of $3. It formerly computed partial 
benefits as the difference between earnings and $2 
more than the weekly benefit amount. Utah 
repealed a provision for disregarding odd-job 
earnings of $3 or less in calculating partial benefits, 
West Virginia discarded a quarterly plan for 
paying partial benefits in favor of a pay-period 
plan, which provides benefits for any period of 
less than 50 percent of the normal-shift expectancy 
(i. e., less than the normal full-time work), and 
payment on the basis of a table contained in the 
law. 

Waiting period.—The waiting period was short- 
ened in 13 States. Arkansas changed from a wait- 
ing period of 2 weeks in 13 preceding claim for 
benefits, to 1 week within the benefit year; 
Arizona, from 2 weeks in 13, with a maximum of 
5 weeks in 65, to 1 week within the benefit year; 
Georgia, from 2 weeks in 13, with a maximum of 3 
additional weeks within the benefit year, to 2 
weeks within the benefit year; Idaho, from 2 weeks 
in 13 within the benefit year, to 2 weeks within 
the benefit year; Indiana, from 2 weeks to 1 week 
in 13 weeks preceding the benefit period; Maine, 
from 2 weeks total or partial to 1 week total or 2 
weeks partial; Montana, from 2 weeks in 13, but 
not more than 2 additional weeks in the benefit 
year, to 2 weeks in the benefit year, and | addi- 
tional waiting period in the benefit year after 
reemployment for at least 13 weeks or after any 
reemployment by the former employer; North 
Carolina and Utah, from 2 weeks to 1 week; 
Oregon, South Dakota, and Vermont, from 3 
weeks to 2 weeks; West Virginia, from 3 weeks to 
1 week. 

Wage qualifications.—Four States made substan- 
tial changes in the qualifying-wage requirement. 
Arkansas changed from a requirement of 16 times 
the weekly benefit amount earned in 3 quarters to 
22 times the weekly benefit amount earned in the 
base period, unless Congress sets a higher mini- 


Social Security 





ce 


- 


~wTwewwewe FP we 


we 





mum, in which case the qualifying wage is to be 
increased accordingly. Georgia substituted for 
the former requirement of 16 times the weekly 
benefit amount in 3 quarters a schedule with 
amounts varying from $100 (25 times the mini- 
mum weekly benefit amount) to $720 (40 times 
the maximum weekly benefit amount). Utah 
changed from 36 times the weekly benefit amount 
minus $36 to a flat 30 times the weekly benefit 
amount. Nevada provides instead of the former 
flat $200 a requirement of $200 or twice the square 
of the weekly benefit amount, whichever is greater, 
and including earnings of 5 times the weekly bene- 
fit amount in some quarter other than that of 
highest earnings. 

Disqualifications.—Disqualifications were ex- 
tensively amended and in many cases made more 
stringent, particularly with respect to voluntary 
leaving, discharge for misconduct, and refusal of 
suitable work. Arkansas amended the _ labor- 
dispute disqualification to provide that it shall 
not apply where the employer violates a trade 
agreement or any State or Federal labor law or 
where employees are protesting wages, hours, or 
working conditions which are substandard for the 
industry and locality; also to eliminate the labor- 
dispute disqualification in cases where the unem- 
ployment is due to a lock-out. Disqualification 
for fraudulent claims for the month the claim is 
made and 5 additional months is provided, and 
disqualifications for receipt of wages in lieu of 
notice and workmen’s compensation are repealed. 
Arizona changed disqualifications for voluntary 
leaving and discharge for misconduct from up to 
5 weeks to a flat 4-week period, in addition to 
the week of separation, and reduced benefit dura- 
tion by 4 weeks in each case. The disqualifica- 
tions for receipt of workmen’s compensation and 
wages in lieu of notice are repealed. Georgia 
increased the period of disqualification for volun- 
tary leaving and work refusal from up to 5 weeks 
to 2-8 weeks, in addition to the week of separation, 
and for discharge for misconduct from up to 6 
weeks to 3-10 weeks, in addition to the week of 
discharge; for each of these causes benefit dura- 
tion is to be reduced by the number of weeks of 
disqualification imposed. 

Idaho imposed a reduction in benefit duration for 
each week of disqualification for refusal of suitable 
work. Indiana specified that disqualification for 
voluntary leaving or discharge for misconduct 


Bulletin, April 1941 


should take effect at the end of any period for which 
the individual receives dismissal wages; provided 
cancelation of all prior wage credits in case of 
misrepresentation to obtain benefits; and added 
disqualification for receipt of back payments under 
the National Labor Relations Act. Maine pro- 
vided disqualification for any week for which an 
individual files a fraudulent benefit claim, and 
reduced benefit duration by the number of weeks 
he is disqualified. Montana disqualified an indi- 
vidual from the receipt of benefits under any 
State act similar to title II of the Federal Social 
Security Act or benefits under another unemploy- 
ment insurance system, and provided cancelation 
of all wage credits of a woman who has left 
work to marry. Nevada increased the maximum 
period of disqualification for voluntary leaving, 
discharge for misconduct, and refusal of suitable 
work, from 5 to 15 weeks in the benefit year, in 
addition to the week of occurrence; amended the 
labor-dispute disqualification to repeal “stoppage 
of work” clause; and added certain miscellaneous 
disqualifications. 

North Carolina lengthened the period of dis- 
qualification for voluntary leaving and refusal of 
suitable work from 1—5 weeks to 4-7 weeks, in 
addition to the week of separation, and for dis- 
charge for misconduct from 1-9 weeks to 5-10 
weeks, in addition to the week of discharge, and 
provided for reduction of benefit duration in each 
case by the number of disqualification weeks, 
except any week the individual obtains reemploy- 
ment; certain miscellaneous disqualifications were 
also repealed. 

North Dakota added disqualifications for dis- 
ciplinary suspension and for unemployment due to 
marriage and school attendance, and amended the 
disqualification for labor dispute so as not to 
apply to individuals financing a labor dispute. 
Oregon and Utah added disqualification because 
of quitting work to marry. Utah also provided 
disqualification for school attendance and for 
receipt of benefits under another State or Federal 
unemployment compensation law. Washington 
increased disqualification for voluntary leaving 
from 2 weeks to 2—5 weeks, in addition to the week 
of leaving; provided disqualification of from 2-5 
weeks for suspension for misconduct, and of 26 
weeks for misrepresentation to obtain benefits; 
and added certain miscellaneous causes for dis- 
qualification, including marriage. 


81 








West Virginia lengthened the disqualification 
period for voluntary leaving and discharge for mis- 
conduct; added a provision to reduce benefit 
duration by the number of weeks of disqualifica- 
tion imposed; and amended the labor-dispute 
disqualification to specify that it shall not apply in 
cases in which the strike is protesting, or a lock-out 
attempts to force acceptance of, wages or working 
conditions substantially less favorable than those 
prevailing in the locality and industry, or cases in 
which the right to collective bargaining has been 
denied. 

Contributions.—Following the pattern of the 
Federal Unemployment Tax Act, eight States 
adopted the $3,000 wage limitation: Arizona, 
Arkansas, Georgia, Indiana, Montana, North 
Carolina, North Dakota, and Utah. The “wages 
paid” basis for contributions was adopted in all 
these States except Arkansas, and also in South 
Dakota and West Virginia. Interest rate on 
delinquent contributions was reduced from 1 per- 
cent to 0.5 percent in Indiana and North Carolina, 
and the deadline for refund of erroneously collected 
contributions was extended from 1 to 3 years in 
Arizona and Arkansas, and from 1 to 4 years in 
Georgia. Collection methods were strengthened 
in Arizona, Arkansas, Nevada, North Carolina, 
Utah, and Washington. Arizona and Arkansas 
adopted provisions for making contributions a lien 
on property of the delinquent employer, and 
authorized arbitrary and jeopardy assessments 
under certain conditions. In Arizona a penalty 
in connection with arbitrary assessments was 
prescribed equal to 10 percent of contributions 
involved, or 25 percent in case of fraud. Idaho 
provided additional interest penalties for de- 
linquency. Nevada and North Carolina author- 
ized jeopardy assessments. 

Experience rating—Utah repealed experience 
rating but provided for a study and report to be 
made by January 1943. Georgia—previously 
without experience rating—adopted a plan for the 
reserve-ratio type with rates varying from 1 to 
2.7 percent; no employer’s rate is to be less than 
2.7 percent if the balance in the fund is less than 
2% times the highest annual benefits paid in 5 
preceding years or $12.5 million, whichever is 
greater. Arizona posponed experience rating until 
January 1942; provided that all contributions 
instead of those exceeding 1 percent of annual 
pay roll—shall be credited to the employer’s 





account, and that benefits shall be charged againgt 
all base-period employers in proportion to wages 
paid by them, instead of against most recent 
employers only; and postponed for 2 years— 
until 1943—application of the provision for jn. 
creasing rates above 2.7 percent. Indiana lowered 
rates, reduced reserve requirements, and _post- 
poned for 2 years application of the provision for 
increasing rates. This latter provision was re- 
pealed altogether in West Virginia. Nevada post- 
poned experience rating for 2 years—until January 
1944. North Carolina changed from a nonauto- 
matic to an automatic employer-reserve type with 
partial-pooled account. Conversely, South Da- 
kota switched from an automatic modified em- 
ployer-reserve to a nonautomatic employer-reserye 
type, with provision for transfer of an amount not 
in excess of 0.5 percent of the previous year’s 
pay roll to the pooled account, in case the balance 
in the fund falls below $50,000. 

Oregon amended its law to require 3 years of 
benefit experience (instead of only 1 year) and to 
provide for rate modification on the basis of the 
condition of the fund. No rate is to be increased 
beyond 2.7 percent if the fund exceeds 6 percent 
of the average annual pay rolls for the preceding 
5 years, or be reduced below 2.7 percent if the 
fund is less than 3 percent of such average annual 
pay rolls. Washington extends the time for 
reporting on a study of experience rating, from 
January 1941 to January 1943. 

Administration. —-Several States 
employment security administration. 
merged the unemployment 
employment service sections of the Unemploy- 
ment Compensation Division into an Employment 
Service Division. 

Nevada replaced its Division of Unemployment 
Compensation (under direction of the Labor Com- 
missioner) by an independent Employment Secu- 
rity Department, to be administered by an execu- 
tive director appointed by the Governor, and 
substituted a nine-member Employment Security 
Council for the former State Advisory Council. 

North Carolin. substituted an unemployment 
compensation commission of seven appointive 
members for its former commissien of two ap- 
pointive members and one ex officio member— 
the Labor Commissioner—and abolished the 
State Advisory Council. Indiana changed the 
name of the Unemployment Compensation Divi- 


reorganized 
Arkansas 
compensation and 


Social Security 








sion to Employment Security Division, and in 
Utah the Department of Placement and Unem- 
ployment Insurance was renamed the Depart- 
ment of Employment Security (in the Industrial 
Commission as formerly). Idaho created an 
advisory council of three to eleven members, and 
Washington a State advisory council of an equal 
number of employers and employees, and of such 
number of members representing the public as the 
Commissioner may designate. The Commis- 
sioner may also appoint industry or other special 
councils. 

Benefit claims and appeals procedures were 
amended or revised in Arizona, Arkansas, Idaho, 
Indiana, Nevada, North Carolina, North Dakota, 
Oregon, Utah, and Washington. Fifteen States 


provided additional safeguards for their unem- 
ployment compensation and administration funds, 
including a provision calling for the replacement 
of lost or improperly expended administration 
funds: Arizona, Arkansas, Georgia, Idaho, In- 
diana, Maine, Montana, Nevada, North Carolina, 
North Dakota, Oregon, South Dakota, Utah, 
Washington, and West Virginia. 

Preserving benefit rights of persons in military 
service.—Thirteen States adopted provisions for 
preserving and protecting benefit rights of persons 
entering the military or naval service of the United 
States: Arizona, Arkansas, Georgia, Indiana, 
Maine, Montana, Nevada, North Carolina, North 
Dakota, Oregon, South Dakota, Utah, and Wash- 
ington. 


Railroad Unemployment Insurance* 


In February 1941 the regional offices of the 
Railroad Retirement Board received 5,854 applica- 
tions for certificate of benefit rights, or an average 
of 1,464 per week (table 1). This average, which 
is only about one-half that for January, is the 
lowest since June 1940. Applications declined 
continuously in February from nearly 2,000 in the 
first week to less than 1,100 in the last. Since 
applications are submitted only once during a 
benefit year and usually during the earlier months, 
it is to be expected that the number in the second 


*Prepared by the Bureau of Research and Information Service, Railroad 
Retirement Board, in collaboration with the Bureau of Research and Sta- 


tistics, Social Security Board 


half of the benefit year will be low and steadily 
declining. 

By the end of February applications based on 
1939 wages numbered 163,658. Certificates of 
benefit rights were issued to 159,389 eligible appli- 
cants, and 3,480 employees were held ineligible 
because they earned less than $150 in the base 
year. At the end of February, 789 applications 
were still in the process of adjudication. 

The number of unemployment insurance claims 
received in February was 133,306; the average of 
33,327 per week was about 6,400 less than the fig- 
ure for the preceding month. This reduction in 
the claims load, for the first time since October 


Table 1.—Railroad unemployment insurance: Applications for certificate of benefit rights and claims received, and 
benefit payments certified, by specified period, 1940-41 and 1939-40 ' 





1940-41 1939-40 





Benefit payments Benefit payments 














— Claims |——— — Claims — 
Number Amount Number Amount 
Middle of November- February 61, 661 517, 760 2 449, 457 2 $8, 520, 556 58, 518 478, 662 350, 964 $5, 306, 735 
February 5, 854 133, 306 125, 803 2, 457, 134 9,117 137, 954 111, 800 | 1, 690, 429 
ist week A, 983 32, 007 | 33, 565 645, 687 2, 293 37, 128 | 29, 873 461, 138 
2d week 1, 501 36, 281 | 33, 483 | 655, 762 1, 978 33, 176 | 27, 062 403, 090 
3d week 1, 283 32, 009 29,714 579, 896 | 1, 780 32, 263 | 25, 720 387, 895 
ith week 1, 087 33, 009 29, 041 575, 789 | 3, 066 | 35, 387 29, 145 | 438, 306 
' | 

Weekly average | 7 
Middle of November- December 6, 324 32, 206 23, 802 435, 043 5, 058 27, 498 | 18, 127 275, 573 
January 2, 885 39, 752 39, 362 754, 649 3, 499 37, 058 | 28, 069 | 421, 824 
February 1, 464 33, 327 | 31, 451 614, 283 2, 280 | 34, 489 | 27, 950 | 422, 607 

j 
' Data begins as of middle of November, because Nov. 16, 1940, was Ist ? Net figures, corrected for underpayments and recovery of overpayments 
lay for processing claims under amended act. through end of February. 


Bulletin, April 1941 


83 





1940, is related to the rise in railroad employment 
in February following the continuous decline in 
the 3 preceding months. According to the compi- 
lations of the Interstate Commerce Commission, 
employment on class I railroads rose by about 
11,400 from the middle of January to the middle 
of February; there was a seasonal upturn in main- 
tenance-of-way employment and more than a 
seasonal increase in shop employment. 

In February 1941 the number of claims was 3 
percent less than in February 1940, although in 
the period from the middle of November 1940 
through January 1941 claims receipts exceeded 
those for the corresponding period of the preceding 
year. These differences in the volume of claims 
reflect mainly the differences in the movement of 
employment in the 2 years for shops and mainte- 
nance of way. In 1939-40 a high peak of shop 
employment in November was followed by a con- 
tinuous decline until the following April; in 1940 
41 shop employment reached an equally high level 
in October, declined slightly until the following 
January, and increased in February to a point 
higher than in October 1940. For maintenance of 
way, the drop in November and December 1940 
from the summer peak was sharper than in 1939, 
but in the following January and February employ- 
ment regained in part the normal seasonal level. 

The number of claims processed in February 
was 147,530. The excess over receipts for the 
month is accounted for only in part by a reduction 
in the number awaiting processing from about 
12,150 at the beginning of the month to about 


6,900 at the end. Included in the number of 
adjudications are also 8,976 reprocessed claims, 
nearly all of which were previously held ineffectiye 
because of the failure to submit the application for 
employment service required for registration with 
the Board’s employment offices. 

Of the 125,803 claims certified in February 
for benefit payment, 8,533 also carried Waiting- 
period credit and 226 were delayed benefit cer- 
tifications made under the original law. For 
both these groups benefits were payable only for 
each day of unemployment in excess of 7, while 
on the balance of claims, benefits were certified 
for each day of unemployment in excess of 4. In 
addition, 456 claims for registration periods with 
7 days of unemployment were certified for waiting 
period under the amended act, and 106 for half 
months with 8 or more days of unemployment for 
waiting-period credit under the original law. 

The total amount of benefits certified in Febru- 
ary was about $2.5 million, of which only $3,200 
applied to claims adjudicated under the act prior 
to amendment. The benefits for the 8,533 claims 
with waiting-period credit amounted to approxi- 
mately $119,000, or an average of $13.93 per 
registration period with a maximum of 7 
pensable days (table 2). This average was some- 
what lower than in January, reflecting a reduction 
in the average daily benefit amount. For the 
117,044 claims with a maximum of 10 compensable 
days, benefits totaled over $2.3 million, 
average of $19.95, practically the same as the 
average for the preceding month. An examination 


com- 


an 





Table 2.—Railroad unemployment insurance: Number of benefit certifications, average benefit, and average number 
of compensable days, under amended act, by specified period, November 1940-February 1941 ' 





i 
' 
| Certifications with | Certifications with 8-13 days 





























: Certifications with 5-7 days 
All certifications ja ag —— | of unemployment | of unemployment 
| | 
Type of certification and l : haar a. l eel ee ee , ee Peet 
period | Average | | | | Average | pp... Average 
Average | Average | number oe Average | root Average | number | repeat Average | number 
| Number | benefit daily | ofcom- | jcrtig- | , daily certifi- | ,@aily ofcom- | cortiq. | daily | of com- 
payment! benefit | oy cations | benefit | cations benefit — cations | benefit — 
| | ! | ' Gays 
Certifications for first registra- | . 
tion period:? 
Nov. 16, 1940-Jan. 3, 1941 43, 995 $14. 06 | $2. 36 5. 96 8 | $2. 35 33.2 $2. 41 | 3.91 
Jan. 4-31__.._. 22,064 | 14. 47 | 2.60 5. 58 6 | 2. 55 41.4 2.71 3. 59 | 
Feb. I aa Pa sie 8, 533 13. 93 2.47 5. 65 .3 247 40.7 2.47 | 3.69 | 
Certifications for subsequent | 
“Wow, 1840an. 2 | 
‘ov. 16, 1 Jan.3,1941__| 112,374 20. 26 2. 33 8.72 69.4 | 2. 32 | 24.1 2. 34 | 6.85 | 6.5 $2. 55 2.08 
Jan. 4-3 ham -| 134, 886 19. 96 2.31 | 8. 65 67.5 | 2. 30 25.8 2. 35 | 6. 81 6.7 2. 46 204 
—. -| 117,044 | — 19.95 2.31 8. 63 67.8; 231) 2468) 2.33 | 6. 84 | 7.4 2. 42 2.05 
| 








4 Benefits are payable for each day of unemployment in excess of 7 for first 


1 Data based on 20-percent sample, except number of certifications and 
registration period and in excess of 4 for subsequent registration periods 


average benefit per certification. 


Social Security 


84 





- of 
ms, 
tive 

for 


ith 
Ary 


er- 
‘or 
for 
ile 
ed 
In 
th 
ny 
lf 


or 





of the averages for the three groups of certifica- 
tions of this type shows that there were no signifi- 
cant changes from January either in the daily 
benefit amounts or in the number of days of un- 
employment in the registration period. 

Of the certifications in February, 3,269 were 
final certifications for the benefit year ending 
June 30, 1941, because of exhaustion of benefit 
rights. The cumulative total of exhaustions by 
the end of February was 6,674. Each of these 
individuals received 100 daily benefit amounts, 
partly under the provisions of the original law for 
unemployment in half months begun between July 
1 and October 31, 1940, and partly under the pro- 
visions of the amended act for unemployment in 
registration periods begun on and after November 
1. The earliest cases of exhaustion—for persons 
continuously unemployed since the middle of 
June—occurred in the last week in December. 

By the end of February, 107,624 individuals 
had had one or more benefit payments certified 
under the amended act, an increase of more than 


Bulletin, April 1941 


10,100 over the number at the end of January. 
Almost 42,000 of these workers had also received, 
under the unamended law, benefits for unemploy- 
ment in July-October 1940. It is estimated that 
benefits for the period July-October 1940 were 
paid to about 17,000 on the basis of compensation 
credited for 1938, and to 24,900 on the basis of 
1939 wages. For the remaining 65,700 individuals 
benefits in the fiscal year 1940-41 were certified 
only under the amended act. 


Employment Service 

In February the employment service operated 
by the Railroad Retirement Board received orders 
for 2,514 openings, evenly divided between the 
railroad and other industries. During the month 
536 openings were canceled before placements 
could be made. Altogether 2,357 applicants for 
employment service were referred to available 
vacancies, and 701 placements were made. The 
weekly average of placements in February was 175, 
compared with 200 in January and 179 in 
December. 


85 





OLD-AGE AND SURVIVORS INSURANCE 


BUREAU OF OLD-AGE AND SURVIVORS INSURANCE e 


ANALYSIS DIVISION 


Operations Under the Social Security Act 


Family Classification of Workers and Bene- 
ficiaries Represented in Claims Allowed, 
January—December 1940 


A summary of information now available rela- 
tive to claims allowed under the old-age and sur- 
vivors insurance program during the entire year 
of 1940 is here presented.' 

During the year, claims for monthly benefits 
were allowed for 132,335 retired workers and for 
122,649 family members—wives, widows, children, 
or aged parents. About 53 percent of the former 
represent retired workers whose claims were al- 
lowed in the last 6 months of the year and about 62 
percent of the latter represent family members 
whose claims were allowed in the same period. 
The relatively larger increase in number of claims 
allowed for family members during the last 6 
months of the year as compared with those al- 
lowed for retired workers was anticipated because 
of special conditions affecting the numbers and 
types of claims allowed during the first 6 months. 
As noted in previous issues, claims allowed in that 
period for retired workers included a large number 
for individuals who retired prior to January 1, 
1940. The number of claims allowed in the first 
6 months to family members surviving deceased 


1 For data on the family classification of beneficiaries whose claims were 
allowed in the first half of 1940, see the January 1941 Bulletin, pp. 68-73. 


Table 1.—Number of workers on whose wages claims for 
primary benefits were allowed, by sex of worker and 
family classification of beneficiaries, January-Decem- 
ber 1940 ' 





Workers 











with 1 or ae 
Sex and marital status of worker | Total ym | children 
and entitlement of wife | workers entitled | entitled 
| to child’s | — 
benefits ; 
Total____. 132, 335 5, 894 126, 441 
ee eee 117, 429 5, 890 111, 539 
farried: 
Wife entitled to wife’s benefits 31, 805 52 31, 753 
Wife not entitled to wife’s bene- 
AA . 56, 164 5, 259 | 50, 905 
Other ? or unknown marital statu 29, 460 | 579 28, 881 
ahs ce eenacenwan 14, 906 | 4 14, 902 


| 





1 Data relate to initial entitlements only. See the January 1941 Bulletin, 
p. 68. 
* Single, widowed, or divorced. 


86 


workers was more affected by lags in filing claims 
and time required for administrative processes 
than the number of such claims allowed in the 
last 6 months. The increased proportion of wife’s 
benefits allowed in the last 6 months is largely 
accounted for by the entitlement to primary bene- 
fits in that period of an increased proportion of 
older workers who are more likely than those at 
younger ages to have wives aged 65 or over. 
(See the March Bulletin, pp. 76-79, for age dis- 
tribution of beneficiaries.) 

Entitlement of a retired worker to a primary 
benefit and any entitlements of his dependents to 
wife’s or child’s benefits having the same date of 
entitlement as his primary benefit are considered 
initial entitlements with respect to the wages of 
the retired worker. Entitlements of his depend- 
ents to wife’s or child’s benefits based on his wages 
but having later dates of entitlement than his pri- 
mary benefit are known as subsequent entitle- 
ments with respect to the wages of the retired 
worker. Correspondingly, entitlements to sur- 
vivors monthly benefits which have the earliest 
date of entitlement of any survivors benefits based 
on his wages are considered initial entitlements 
with respect to the wages of a deceased worker; 
entitlements to survivors monthly benefits having 
later dates of entitlement than such earliest date 
are known as subsequent entitlements with respect 
to the wages of the deceased worker. Lump-sum 
death payments are always initial entitlements; 
if a lump-sum death payment has been allowed 
with respect to the wages of a deceased worker, all 
monthly survivors benefits which may be allowed 
with respect to that worker’s wages represent sub- 
sequent entitlements. 

Among the 122,649 family members for whom 
monthly benefits were allowed in 1940, there were 
118,907 who were initially entitled and 3,742 who 
were subsequently entitled to such benefits. The 
number of individuals who were subsequently 
entitled to benefits comprised a considerably 
larger proportion of family members whose 
claims were allowed in the latter half of the year 
than of those whose claims were allowed in the 


Social Security 








first half. Such an increase would obviously be 
expected, as the current subsequent entitlements 
arise with respect to the workers represented by 
cumulative initial entitlements. This increase in 
subsequent entitlements accounts for a small part 
of the increase noted above in number of claims 
allowed to family members in the last 6 months 
of the year. The distribution by entitlement of 
all family members whose claims were allowed 
during the year is as follows: 





Number of beneficiaries 


Type of beneficiary (excluding 


primary Salley Subse- 

Total —— quently 

| entitled 
Total 122,649 | 118, 907 | 3, 742 
Wife 34, 555 31, 805 2. 750 
Child of primary beneficiary &, 249 8. 204 45 
Child of deceased worker 51, 133 | 50, 730 | 403 
Widow aged 65 or over 4, 600 | 4, 243 357 

Widow with 1 or more child bene- | 

ficiaries in her care 23, 260 23, 109 | 151 
Parent 852 816 36 





The data in tables 1-4 relate only to initial en- 
titlements within the year. The various charac- 
teristics of the workers relate to date of entitle- 
ment to primary benefits (table 1) or to date of 
death of the worker (table 2). 

A distribution according to the entitlement of 
their dependents to benefits of the 132,335 workers 
whose claims for primary benefits were allowed 
during the year is presented in table 1. A sig- 
nificant fact to be noted in comparing the distri- 
bution for the entire year with that for the first 


Table 2.—Number of deceased workers on whose wages 
claims for monthly benefits or lump-sum payments 
were allowed, by sex of worker and family classification 
of beneficiaries, January-December 1940 ! 


























| Workers with 
neither children 
Workers} Workers} nor ents en- 
| | with 1 | with 1 | titled to benefits 
Sex and marital status of | ,, | OF more | or more 
worker and entitlement | T otal | children| parents , 
of widow workers | entitled | entitled) yw), | With 
to to widow lump- 
| aes pars only sum 
| benefits nefits pay- 
entitled ment 
allowed 
| | 
Total................] 94,153 | 27,009] 744] 4,330] 61,080 
Male, total | 84,674 | 27, 481 544 4,330 | 52,319 
Married: | 
Widow entitled to 
widow’s benefits 4, 243 | 6 | 4, 237 |.. 
Widow entitled to | 
widow’s current bene- | | 
fits 23,109 | 23,016 193 
Widow not entitled to | | j 
widow’s or widow's | | 
current benefits 37, 971 2, 540 35, 431 
Other 4 or unknown mari- 
tal status 19, 351 | 1,919 544 |..... 16, 888 
Female, total 9, 479 | 518 9 ETS ‘ 8, 761 











! Data relate to initial entitlements only. 

2 Represent widows of deceased primary beneficiaries having 1 or more 
children entitled to child’s benefits prior to death of primary beneficiary. 

3 Single, widowed, or divorced. 


6 months is the increase during the year in the 
proportion of retired workers having wives initially 
entitled to a wife’s benefit. This fact has been 
previously explained as resulting from the inclu- 
sion of a larger proportion of older workers among 
claims allowed in the last 6 months. Including 
both initial and subsequent entitlements to wife’s 
benefits, 39 percent of the male married workers 
whose claims were allowed during the year had 


Table 3.—Number of workers on whose wages claims for child’s benefits were allowed, by sex of worker, family 
classification of beneficiaries, and number of child beneficiaries, January-December 1940 ! 





Number of workers with— | 




















| Total 
. sah ilk wate ; : Ate : Total | 5 or child 
Characteristics of worker and entitlement of wife or widow workers | 1 child 2 child | 3 child 4 child more benefi- 
| benefi- | benefi- benefi- benefi- child ciaries 
ciary ciaries ciaries | ciaries benefi- 
| ciaries 
All worker 33, 893 17, 605 9, 634 4, 733 1,775 | 146 | 58, 934 
Workers entitled to primary benefits, total j, 804 3, 838 | 1, 858 | 156 32 10 8, 204 
Male, total 5, 890 3, 834 | 1, 85! 156 | 32 10 8, 200 
Married 
Wife entitled to wife's benefits 52 52 0 0 0 | 0 52 
Wife not entitled to wife's benefits 259 3, 371 1, 704 143 31 10 7, 386 
; Other ? or unknown marital status 79 411 154 13 | 1 0 762 
Female, total 4 0 | 0} 0 0 4 
Deceased workers, total 27, 999 13, 767 7, 776 4, 577 | 1, 743 136 50, 730 
Male, total. 27, 481 13, 398 7, 676 4, 549 | 1, 723 135 49, 991 
Married | 
Widow entitled to widow’s or widow’s current benefits_. 23, 022 11, 573 6, 936 4, 132 | 279 | 102 39, 479 
Widow not entitled to widow's or widow’s current benefits_. 2, 540 666 | 283 241 1, 328 22 i 
: Other ? or unknown marital status : 1,919 1, 159 457 176 | 116 | ll 3, 126 
Female, total 518 369 | 100 28 | 20 | 1 
| | 
| 
Data relate to initial entitlements only. ?Single, widowed, or divorced. 
87 


Bulletin, April 1941 





Table 4.—Number of workers on whose wages claims for 
monthly benefits were allowed, number of benefici- 
aries represented, and monthly amount of benefits, 
by sex of worker and family ciassification of bene- 
ficiaries, January-December 1940 ' 




















Characteristics of worker | Number | Number | Monthly ———- 
and family classification of of of bene- | amount of! i Gunt 
benefi workers ficiaries | benefits ? per family 

All workers and bene- | | 
TES | 165,408 | 251, 242 |$4, 662, 454 $28. 19 
Workers entitled to primary | | 
benefits, and their de- | | 
ndents: | 
Male worker: } 
Worker only____- } 79, 786 79, 786 | 1,828, 205 22. 91 
Worker and wife 31, 753 63, 506 | 1, 159, 322 36. 51 
Worker and 1 or more | | 
children | 13,986 | 215,332 36. 88 
Worker, wile, andl child. 52 | 156 | 2, 590 49. 81 
Female worker | 
Worker onl ioe 14, 902 | 14, 902 273, 753 | 18. 37 
Worker and 1 child 4) 8) 79 19. 75 
Survivors of deceased 
workers: 
Male worker: | 
Widow only -.. 4, 330 | 4, 330 | 87,781 | 20. 27 
Widow and 1 or more | | 
children__........_- : 23,022; 62,501 952,790 41. 39 
1 or more children_-___- 4, 459 | 10, 512 124, 992 28. 03 
Either or both parents 544 | 592 7, 866 14. 46 
Female worker: 
1 or more children ‘ 518 | 739 | 6, 904 13. 33 
Either or both parents 200 | 224 | 2, 840 | 14. 20 





! Data relate to initial entitlements only. 

4 Represents monthly amount payable without adjustments required by 
sec. 203 (subsecs. d, e, g, and h) or sec. 907 of the Social Security Act Amend- 
ments of 1939. 


wives entitled to wife’s benefits during the year, 
It is to be expected that there will be many sub- 
sequent entitlements of wives of the remaining 
male married primary beneficiaries as more wives 
attain the age of 65. 

A corresponding distribution of deceased workers 
with respect to whose wages claims for monthly 
benefits or lump-sum payments were allowed 
during the year is presented in table 2. The most 
significant difference between the distribution for 
the entire year and that for the first half is the 
anticipated increase in the proportion of deceased 
workers survived by aged widows entitled to bene- 
fits. An initial entitlement to a widow’s current 
benefit only occurred with respect to 93 deceased 
workers. These were workers who had _ been 
entitled to primary benefits during the year and 
who also had had one or more children entitled 
to child’s benefits. Since the subsequent death of 
such a worker does not affect the entitlement of 
the children to child’s benefits, the entitlement of 
his widow to widow’s current benefits may con- 
stitute the only initial entitlement to survivors 
benefits with respect to his wages. 





Table 5.—Number and amount of monthly benefits in force ' in each payment status * and actions effected during 
the month, by type of benefit, February 1941 


[Data corrected to Mar. 11, 1941] 




















Total | Primary Wife's Child’s | Widow’s Widow’s current Parent’s 
Status of benefit and ——|— |__| - —— 
action } Num N iN Nt Ni 
| Number} Amount | Number| Amount | * coe Amount . my Amount | * yy Amount * —y Amount | "2" | Amount 
} 
In force as of Jan. 31, 1941___.| 267,367 |$4,933,837 | 138, 156 $3,136, 332 | 35, 734 |$433, 989 | 62,707 $763,553 | 5,313 $108,051 | 24,490 79, 312 967 $12, 600 
In current-payment sta | 
__ ee eee 244, 286 |4, 461, 159 | 122, 390 |2, 765, 869 | 32,586 | 394,910 | 60, 531 | 739,101 | 5,195 | 105,285 | 22,626 | 443, 495 958 12, 499 
_ = aren payment | | | 
neadegeasesccces 2, 057 49, 299 | 1,615 42, 365 228 3, 004 73 818 100 2, 332 uM 610 7 80 
In oa EES -payment | | 
i aibeddtidenibinn aka al 21,024 | 423,379 14,151 328,098 | 2,920 35, 985 2,103 | 23,634 18 444 1, 830 35, 207 2 21 
Actions during February | | | 
Claims allowed______- 25,012 | 446,455 | 11,062 | 248,676 | 3,382 40,408 | 6,848 | 84,453 901 18,346 | 2,715! 53, 167 104 1, 405 
Entitlements _termi- | 
re -| 1,910 33, 346 741 17, 335 379 4, 590 561 6, 975 9 182 210 4, 138 10 126 
Net adjustments ‘..____| —84 —808 | —30 | — 396 —7 | —71 —41| —277 1 2 -7 —92 . 
In force as of Feb. 28, 1941___| 200,385 5,346,138 | 148,447 (3,367,277 | 38, 730 469,736 68,953 | 840,754 6,206 | 126,243 26,088 528,249 | 1,061 13, 879 
In I eetandene sta- 
PELE EE | 265, 796 (4,842,305 | 131,814 |2,975,519 | 35,346 | 427,578 66, 591 813,941 | 6,080 | 123,348 | 24,915 488,172 | 1,050 13, 747 
In deferred -payment | | | 
aaa eat 2, 258 53, 267 1,734 45, 248 | 267 3, 649 101 | 1,078 103 2, 366 45 830 s 96 
In conditional -payment | . | 
ieee ntioinasiniswainee | 22,331 | 450, 566 14,899 | 346,510 | 3,117 | 38,509 | 2,261 | 25,735 23 529 | 2,028 | 39, 247 3 36 








fit—beneficiary’s death, marriage, adoption, or attainment of age 18; widow's 
benefit—beneficiary’s death, remarriage, or entitlement to equal or larger 
primary benefit; widow’s current benefit—beneficiary’s death, remarriage, 
entitlement to widow’s benefit or to equal or larger primary bene fit, or ter- 
mination of entitlement of last entitled child; parent’s benefit—beneficiary’s 
death, marriage, or entitlement to other equal or larger monthly benefit. 

‘ Adjustments in amount of monthly benefit may result from entitlement of 
an additional beneficiary or termination of entitlement of an existing bene- 


! Represents total claims allowed, after adjustment for subsequent changes 
in number and amount of benefits (see footnote 4) and terminations (see 
——— 3), cumulative from January 1940, when monthly benefits were first 


payable. 

1 Benefit in current-payment status is subject to no deduction from current 
month’s benefit or only to deduction of fixed amount which is less than 
current month’s benefit; benefit in deferred-payment status is subject to 
deduction of fixed amount which equals or exceeds current month’s benefit; : 
benefit in conditional-payment status is subject to deduction of entire benefit ficiary when maximum provisions of sec. 203 (a) of amended act are effective 
for current and each subsequent month for indefinite period. or from termination of entitlement of an existing beneficiary when minimum 

’ Terminations may be for following reasons: primary benefit—benefici- a of sec. 203 (b) consequently becomes effective; adjustments in num- 
ary’s death; wife’s benefit—beneficiary’s death, death of husband, divorce, r or amount may also result from actions not otherwise classified. 
or entitlement of beneficiary to equal or larger primary benefit; chiid’s bene- 


88 Social Security 





en 


ng 





Table 6.—Monthly benefits and lump-sum death pay- 
ments certified, by type of payment, February 1941 








| pe 5 dis- 
Amount certified | Percentage dis 











tribution 
Number oo ld ee a 
Type of payment of bene- | 
ficiaries | avers | Bene- 
Total . age fici- Amount 
| aries 
ape il | 
Monthly — I 267,938 |2$5, 350, 550 |2$20. 00 | 100.0 100.0 
132,656 | 3,182,988 | 23.99] 49.5 59. 4 
He ipplementary 43, 329 574, 465 16.2 10.8 
Wife’s.__. 35, 584 465, 015 13. 07 13.3 8.7 
Child’s 7,745 109,450 | 14.13) 2.9} 2.1 
Survivors .. 91, 953 1, 602, 097 | 34.3 29.8 
Widow’s 6, 025 151, 77 | 25.19 | 22.3 15.7 
Widow's current 25, 268 589,707 | 23.34 | 2.2 2.8 
Child’s 59, 606 842, 292 14.13 | 9.4 11.0 
Parent’s 1, 054 18, 321 17. 38 | 4) 3 
<<< | _ _ | - 
Lump-sum death pay- 
ments. -- * 9, 058 1, 224,977 |... } 
Under 1939 amend- 
ments ? 48, 495 1, 199, 244 | 141.17 
Under 1935 act § . 4 563 25, 733 45. 71 





| Distribution by type of benefit partly estimated. 

? Includes retroactive payments 

i Payable with respect to workers who died after Dec. 31, 1939, in cases 
where no survivor could be entitled to monthly benefits for month in which 
worker died. 

‘ Represents number of deceased workers on whose wages payments were 


ased. ‘ : 
‘Payable with respect to workers who died prior to Jan. 1, 1940. 


An analysis of the workers whose children were 
entitled to child’s benefits in terms of the number 
of children so entitled is presented in table 3. 

The family groupings of beneficiaries, including 
retired workers and members of their families 
who are entitled to monthly benefits and the 
survivors of deceased workers who are similarly 
entitled, are shown in table 4. The average 
monthly amount of benefit allowed per family 
varies somewhat from that allowed in the first 
6 months for each class of family. (See the 
January Bulletin, p. 71 Such variations do not 
seem to indicate any particular trend. The only 
large variation, that in the average family benefit 
for families consisting of a retired female worker 
and child, is insignificant in view of the small 
number of families in this group. 


Monthly Benefits in Force and Payments 
Certified, February 1941 


The number and amount of monthly benefits 
in force at the beginning and end of February, by 
type of benefit and payment status are given in 
table 5, together with changes in the number and 
amount of each type of benefit in force resulting 
from actions effected during the month. The data 
are preliminary inasmuch as they do not include 
changes in number and amount of benefits in force 
effected during the month but recorded after the 
correction date shown on the table. The inci- 


Bulletin, April 1941 


dence of deductions required under sections 203 
or 907 of the amended act is indicated by the 
division according to payment status of benefits 
in force. 

Table 6 gives the number of beneficiaries for 
whom monthly benefit payments were certified 
during February, the corresponding amount certi- 


Table 7.—Weekly average of employee accounts estab- 
lished and employer identification numbers assigned, 
by State, February 1941! 






































Employer identifi- 
Employee accounts cation numbers 
Social ae) Board region 
and State 
Average —_ Average —— 
number | tribution | 2Y™Der | tribution 
Re ee 100.0 7, 806 100.0 
Region I: 
eer re 1, 554 1.5 153 2.0 
a ee 549 5 61 .8 
0 0 SS 3, 372 3.3 315 4.0 
New Hampshire. __-_-.-..-.---- 297 3 32 4 
(EE 608 .6 38 5 
_.... aes 168 .2 16 2 
Region II: 
a err 10, 235 10. 2 1, 306 16.9 
Region III: 
SE Ee -ciplacadal 206 2 22 A 
i. ae .--| 2,740 2.7 502 6.4 
ll. SS | 5, 938 5.8 259 3.3 
Region IV: | 
District of Columbia-._-------- 755 | 7 10 1 
gr Se 1, 517 1.5 16 a 
North Carolina... 5, 300 5.2 85 L1 
(ee 3, 192 3.1 230 9 
West Virginia_____- wa EY 1, 696 SY 97 1.2 
Region V: 
Kentucky... 2, 680 2.6 127 1.6 
Michigan. ecdtcabsuaiata 3, 832 3.8 461 5.9 
Ohio a P | 4, 694 4.6 394 5.0 
Region VI: 
Ilinois____- —— 5, 174 §.1 422 5.4 
Indiana 2, 390 2.4) 152 1.9 
Wisconsin _- 1, 651 .6 | 124 1.6 
Region VII: 
Alabama. -.. 2, 430 | 2.4 76 1.0 
Florida sea | 1, 892 | 1.9 200 2.6 
Georgia... ian 2, 802 | 2.8 130 7 
Mississippi ‘ | 1, 335 1.3 40 5 
South Carolina. | 1, 949 | 1.9 | 63 .8 
Tennessee } 3,7 3.7 | 105 1.3 
Region VILI: | | 
Iowa "= 1, 386 1.4 | 7 9 
Minnesota... ____. 1, 196 1.2 87 L1 
Nebraska________ 688 et 68 9 
North Dakota. . | 225 ep 7 a 
South Dakota 212 2] 11 a 
Region IX: 
Arkansas _ - | 1, 516 1.5 115 1.5 
i ee 1, 131 1.1 | 136 ® 
Missouri___.__. : | 8,364 3.3 | 166 2.1 
Oklahoma. .._.... | 1, 184 1.2 130 Lu 
Region X: } 
Louisiana. _- = 2, 264 2.2 27 3 
New Mexico ; 525 5] 34 .4 
Texas = ‘ 5, 518 5.4 402 5.2 
Region XI: | 
Arizona 442 | if 20 x 
Colorado.......... : 719 | 9 109 1.4 
Idaho a : —— 74 | 3 30 .4 
Montana. _.. en | 293 .3 14 .2 
Utah_. 226 a7 38 5 
Wyoming | 139 - 28 4 
Region XII: 
California_. imal 5, 199 6.1 558 7.1 
Nevada... : 74 ‘a 18 on 
Oregon. _. ; geal 918 .9 100 1.8 
Washington _ : 1, 192 1.2 165 2.1 
Territories: | 
Alaska 33 | (2) 14 -2 
Hawaii___. 238 | .2 21 3 
| 
1 Average relates to 4 weeks, Feb. 1-28, 1941. 
? Less than 0.05 percent. 
89 








fied, and the average payment certified for each 
beneficiary, by type of benefit. Also given is the 
amount of lump-sum death payments certified 
during the month, the number of deceased workers 
on whose wages such payments were based, and 
the average lump-sum amount certified with 
respect to each deceased worker. The number of 
individuals for whom monthly benefits were certi- 
fied during February exceeds the number in 
current-payment status as of the end of February. 
This difference can be largely accounted for by 
the fact that certification of regular monthly 
benefit payments for any month is spread over 
the first 3 weeks of the month though such pay- 
ments are not actually due until the end of the 
month. Changes in status, such as terminations 
of entitlement or suspensions of payment, which 
become effective during the month but after 
certification of the current month’s benefit are 


Operations Under the Railroad Retirement 


In February benefit payments certified under 
the Railroad Retirement Act amounted to $10.2 
million (table 1)—1.3 percent more than in Jan- 
uary and 2.0 percent more than the average for 
the first 7 months of the current fiscal year. The 
increase resulted principally from a relatively 
large increase in the number of new certifications 
of employee annuities. The monthly decline of 
pension payments to former carrier pensioners 
was less than usual because, as a result of a cover- 
age decision, several new pensions were certified 
retroactively to July 1, 1937. Payments of lump- 
sum death benefits were considerably less in 
February than in January. 

Total net payments for the first 8 months of 
the current fiscal year amounted to $80.3 million, 
compared with $75.0 million for the corresponding 
8 months of the previous fiscal year. Total pay- 
ments on employee annuities for the corresponding 
periods amounted to $61.9 million and $55.1 
million, respectively. Such payments for the 
past 8 months accounted for 77.1 percent of total 
payments for all classes of benefits. 

At the end of February the number of annuities 


*Prepared by the Bureau of Research and Information Service, Railroad 
Retirement Board, in collaboration with the Bureau of Research and Statis- 
ties, Social Security Board. 


90 


reflected in table 5 but not in table 6. Amounts 
certified for payment during the month in some 
cases include retroactive payments. 


Employee Accounts Established and Employer 
Identification Numbers Assigned 

The weekly average of employee accounts 
established declined more slowly in February than 
in January, 6.3 percent as compared with 124 
percent. Connecticut, New York, and New Jersey 
were the only States showing fairly large increases, 

A sizable gain—40.5 percent—in the weekly 
average of employer identification numbers as- 
signed in February followed a 5.7-percent increase 
in January. All but 12 States participated in the 
upward movement in February. This increase 
reflected, for the most part, the continued growth 
in the number of new firms coming into existence, 
probably as a result of the defense program. 


Act*® 


and pensions in force exceeded 150,000 for the 
first time since the beginning of Board operations 
(table 2). The number of new certifications of em- 
ployee annuities in February—2,124—was larger 
than for any month since February a year ago 
and 566 more than the number certified in Jan- 
uary. This increase was due in part to the large 
number of certifications of annuities to begin 
retroactively in January, which is the peak month 
for retirements in the railroad retirement system. 
More than 30 percent of the employee annuities 
initially certified in February were for annuities to 
begin in January. Because of the large number 
of new certifications the increase in the number of 
employee annuities in force was larger in February 
than in any other month since July 1940. 

The number of pensions in force decreased by 
415 during February—the net result of 436 deaths 
reported during February, 11 certifications, and 
other minor adjustments. The combined result of 
initial certifications, terminations, and adjust- 
ments for all classes of benefits was an increase 
from January of 979 in the total number of annui- 
ties and pensions in force. 

The average monthly payment on employee 
annuities initially certified in February, including 
those subject to recertification, was $66.73. Of 


Social Security 





Ta 


Net 


Ce 
end 


mil 


o> 


=a = 


un ts 
Ome 


over 


the 
ns 
m- 
rer 
go 
in- 
ge 
rin 
th 


— Ss 








Table 1.—Railroad retirement: Net benefit payments certified to the Secretary of the Treasury, by class of payment 
and by specified period, 1936-41 ' 

















| | Pensions to 
ad ; pease Employee | -,-| Survivor | Death-bene-| Lump-sum 
Period and administrative action | Total payments annuities /"pensioners | annuities fit annuities | death benefits 
| pensioners 
—_—_———— , i ai a | ne ee a ee 
, fit payments 
Net Semmulative through February 1941 2 $388, 629, 838 $273, 218, 029 $105, 301, 558 $2, 820, 789 $2, 168, 063 $5, 121, 390 
iscal year: 

Fee a6 37 | 4,514,617 | 4,409,019 |... 36, 751 68,846 |... as 
1937-38 82, 654, 660 46, 930, 329 34, 701, 617 388, 479 599, 217 35, 017 
1938-39 ; 107, 131, 438 75, 418, 986 28, 887, 973 787, 240 716, 261 1, 320, 976 
1939-40 114, 025, 141 84, 529, 592 25, 975, 863 912, 895 495, 200 2, 111, 590 
1940-41 (through February 80, 303, 981 61, 930, 101 15, 736, 104 695, 422 288, 538 1, 653, 815 

January 1941 10, 079, 263 7, 826, 200 1, 912, 547 86, 873 32, 847 220, 793 
In-force payments 9, 491, 080 7, 449, 848 1, 933, 095 84, 074 24, | = naman 
Retroactive payments 440, 947 427, 947 939 3, 073 8, 987 ice 
Lump-sum death-benefit payments 221, 330 . ; caiinan 221, 330 
Cancelations and repayments (deduct) 74, 095 51, 595 21, 488 275 201 536 

1, 907, 790 90, 203 33, 925 187, 371 

February 1941 10, 210, 734 7, 991, 443 

In-force payments 9, 564, 913 7, 545, 709 1, 909, 950 85, 256 23, 997 |. 

Retroactive payments Bmp 548, 043 505, 848 26, 966 | 5, 136 10, 092 |_ 

Lump-sum death-bengfit payments 187, 711 | 4 cute aie 187, 711 

Cancelations and repayments (deduct) ; 89, 934 60,114 | 29, 125 | 190 164 339 
' { | 














‘For definitions of classes of payments see the Bulletin, July 1939, p. 7. 
Cents are omitted in all figures. Data relate to months ended on 20th cal 


endar day. : 
!Total benefit payments certified to the Secretary of the Treasury are $9.0 


million more than total benefit payments issued by disbursing officer as 


these annuities 24 percent were subject to recer- 
tification. The average payment will probably 
increase from 2 to 2% percent when the annuities 
subject to recertification are finally recertified. 
For all employee annuities in force at the end 
of February, including those subject to recertifi- 
cation, the monthly average was $65.70. For 
pensions, it was $58.81; for survivor annuities, 
$32.69; and for death-benefit annuities, $35.66. 
The number of lump-sum death benefits initially 
certified in February was 848—135 less than in 


shown on p. 103, table 6. This difference results almost entirely from 
payments for annuities and pensions in force at end of month which are cer- 
tified to the Secretary of the Treasury during month and for which checks 
are not drawn by disbursing officer until first of following month. 


January. The average payment for February 
certifications was $219.81, compared with an 
average of $223.63 for those certified in January. 
The decrease in the average payment reflects a 
temporary month-to-month fluctuation. Gener- 
ally, the average tends to increase as employees 
accumulate creditable earnings upon which the 
amount payable is calculated. The average since 
the beginning of the present fiscal year has 
amounted to $205.55, compared with $144.30 for 
the corresponding period of the preceding year. 


Table 2.—Railroad retirement: Number of annuities and pensions in force and monthly amount payable as of 
Feb. 28, 1941! 





Pensions to former Death-benefit 


Survivor annuities | 











otal Employee annuities carrier pensioners annuities ? 
Period and administrative action = ~ —— —s ‘ieee a: a | 
. Monthly . Monthly ' Monthly | ,,; Monthly | 4, Monthly 
Number amount Number | ‘amount Number | ‘amount | Number amount | Number amount 
In force as of Jan. 31, 1941 149, 622 | $9, 491, 080 113,493 | $7, 449, 848 32, 892 | $1, 933, 095 2, 563 $84, 074 674 | $24,062 
During February 194! 
Initial certifications 2, 264 146, 411 2, 124 141, 744 11 583 49 1, 298 80 | 2, 783 
Terminations by death (deduct 1, 291 77, 624 770 | 50, 103 436 24, 522 4 149 81 | 2, 849 
Net adjustments ! +6 +5, 046 —4 | +4, 220 +10 +793 0 +32 0 0 
Cumulative through February 1941 
Initial certifications 194, 687 | 11, 614, 397 138, 146 8, 524, 947 48, 536 2, 809, 684 2, 762 89, 537 5, 243 190, 227 
Terminations by death (deduct 43, 624 2, 549, 593 22, 864 1, 478, 716 16, 039 899, O86 151 4, 854 4, 570 166, 935 
Net adjustments ? —462 +500, 109 — 439 +499, 478 —20 —647 —3 +573 0 +705 
In force as of Feb. 28, 104 150, 601 9, 564, 913 114, 843 7, 545, 709 32, 477 1, 909, 950 2, 608 85, 256 673 | 23, 997 





' Figures (cents omitted) based on month ended on 20th calendar day in 
which annuity or pension was first certified or terminated upon notice of 
death, or in which other administrative action was taken by the Board 
rather than on month in which annuity or pension began to accrue, beneficiary 
lied, or administrative action was effective. In-force payments as of end of 
month reflect administrative action through the 20th. Correction for a claim 
certified or terminated in error or for an incorrect amount is made in figures 
for month in which error was discovered and not in which error was made 

1In a few cases payments are made to more than 1 survivor on account of 


Bulletin, April 1941 


death of 1 individual; such payments are here counted as single items. 
Terminations include those by death and by expiration of 12-month period 
for which death-benefit annuities are payable. Practically all terminations 
are of latter type. 

3 Obtained by adding reinstatements of suspended payments and sub- 
tracting terminations for reasons other than death (suspensions, returns to 
service, and commuted lump-sum payments). Recertifications, which are 
included in net adjustments, ordinarily result in additions to amount payable 
but do not affect number of cases adjusted. 


91 








SOCIAL 


AND ECONOMIC DATA 


BUREAU OF RESEARCH AND STATISTICS 


Payments Under Selected Social Insurance 
and Related Programs 


With this issue, the Bulletin expands the social 
insurance series to include payments and bene- 
ficiaries under three retirement programs admin- 
istered by the Civil Service Commission, covering 
employees in the Federal civil service, the Canal 
Zone, and the Alaska Railroad.' Since the total 
payments under these three programs aggregate 
$6 million per month ($71.1 million in 1940), they 
represent an addition of about 10 percent in the 
total figures being reported. Additional pay- 
ments are made to retired public employees under 
several other contributory Federal plans’ but 
their inclusion here would affect total payments 


1 For history, provisions, and coverage of these systems, see pp. 29-42. 
3 See footnote 3, p. 31. 


very slightly since the three retirement systems 
administered by the Civil Service Commission 
represent more than 95 percent of the coverage 
of the contributory retirement systems for Federa] 
employees. 

With the inclusion of monthly data on the 
civil-service retirement funds (table 1 and chart 
1), payments under the selected programs amount 
te $765.8 million for the calendar year 1940, $64.8 
million for January, and $59.9 million for February 
1941. The decline of 7.7 percent from January 
to February is principally in unemployment com- 
pensation payments, which represent more than 
60 percent of the aggregate payments. Lump- 
sum payments under some of the programs de- 


Chart 1.—Payments under selected social insurance and retirement programs, January 1938-February 1941 


MILLIONS OF DOLLARS 
80 cana 3 | - 
















4 A A 
ZA A, 
7 ty oS 
SSASLISAALL 
y a Y 44 
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SSAA, 4 


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IAAL SIA, 

AA, BMALLALLA 

SSO 


20 








————— 


SS 


~ SLAs Ap pe ee + eee SLL CAAA PAA A A pf AAA Appx pe AAA 


CMA A Mh he MMMM ACA AA Me 


MILLIONS OF DOLLARS 
80 


ig Af OA tt ~ pe _ 60 





AR ES 












LA 14 0 
i Lk LA aA ALE | 
ZR ai ROAD SHE | 

jij INSURANCE 'Z 

tty. 
Ze tig 4 | 

ae | 2 0 

i 6 


194! 


Social Security 





Stems 
ission 
erage 
era] 


1 the 
chart 
lount 
$64.8 
‘uary 
uary 
com- 
than 

imp- 

- de- 


41 


ARS 
10 





clined also, largely because of the smaller number 
of working days in February. 

Another change inaugurated at this time is a 
reclassification of the payments under the various 
retirement programs by type of benefit rather 
than by program. Monthly payments under the 
old-age and survivors insurance program of the 
Social Security Act are separated into survivors 
payments and retirement payments, including in 
the latter supplementary payments to wives and 
children of primary beneficiaries. The reorganized 
table 1 shows the similarities and the differences 
in types of benefits as well as the current level 
of payments provided by the old-age and sur- 
vivors insurance title of the Social Security Act, 
by the Railroad Retirement Act, and by the three 


retirement acts administered by the Civil Service 
Commission. 

No change has been made in chart 2 presenting 
income payments. Annuities and refunds under 
the Civil Service Retirement Act and under all 
other Federal, State, and local retirement systems 
are included as “other labor income” under 
“compensation of employees.’”’ The small seg- 
ment on the chart labeled social insurance benefits 
represents only four programs—under the Social 
Security Act, the State unemployment compensa- 
tion laws, the Railroad Retirement Act, and the 
Railroad Unemployment Insurance Act. 

While the monthly old-age insurance payments 
under the Social Security Act are dwarfed by the 
payments under the older retirement systems, 


Table 1.—Payments under selected social insurance and retirement programs, by specified period, 1936-41 ' 


{In thousands] 





Retirement and survivors insurance payments | 


Unemployment insurance 








payments 
M 7" * iat canis Refund s 7a 
Monthly retirement pay- . . eee efunds | | 
ments? Survivor payment: | under | 
- the | 
| Civil- } Under Under 
Monthly pay- = mente | Service | State Rail- 
Year and mont! Total ments Lump-sum payment: Com- unem- road 
Under | UDder | under se mission | ploy- | Unem- 
otal the the the ; | toem- | Total ment ploy- 
Phere Rail : es Inder Under — loyees | com- | ment 
Social ceed & ivi. 1 nee r the t ho r the t ne T | jeaving | | pensa- | Insur- 
cocu- | Retire ” Rail- | gui Rail- “vil. | Service § | tion ance 
rity Com- | Social Social Civil- 
+ ment : - road eee road tt | laws * Act? 
Act! mission; Secu- | : Secu -, | Service 
Act 4 rity Retire- rity Retire- Cem: 
y ment J ment eps } 
Act Act 4 Act Act mission § 
i | | 
| ' | 
—— I | wee - 
Calendar year | 
1936 $79,176 | $56, 377 $683 | $51, 630 $2 $4,062 | $2,864 $131 $131 
1937 105, 429 19, 818 40, 001 53, 694 444 $1, 278 4,401 | 3,479| 2,132 2, 132 ee 
1938 569, 367 | 169, 640 96,749 | 56,118 1,401 10, 478 $290 4,604 | 3,326 | 396,401 | 396,401 |__..___.. 
1939 626, 269 | 187, 836 107,282 | 58, 331 1, 450 13, 895 1, 926 4, 952 2,846 | 435,587 | 429,820 | $5, 767 
1940 765,808 | 226,532 | $21,242 | 114,168 | 62,019 $7, 617 1, 446 11, 734 2, 496 5, 810 3,277 | 535,999 | 520,110 | 15,889 
1940 
January 58, 040 15. 866 76 9, 141 5, OO1 0 113 916 164 455 197 42, 886 41, 066 1, 820 
February. 62, 394 16, 049 216 9, 209 5, 019 35 114 743 198 425 197 | 46,148 | 44,351 1, 797 
March 66, 429 17, 208 736 9, 310 h, 057 179 114 1,071 | 178 563 | 265 | 48, 056 47,142 | 1,814 
April 61, 925 17, 775 933 9, 483 5, 071 355 123 1, 033 258 519 | 278 | 43,872 | 42,292 | 1, 580 
May 74,201 | 17,854 1, 216 9, 386 5, 137 409 123 991 222 370 | 276 | 56,071 | 54,897 | 1,174 
June 73, 615 18, 880 1, 673 9, 420 5, 197 493 120 1,011 | 230 | 536 | 240 54,495 | 53, 637 858 
July 75.975 | 19,254 2,025| 9,508 5,249 687 120 973 | 190 | 502} 268] 56,453 | 55,750 703 
August 72, 751 19, 723 2, 339 9, 639 5, 238 790 118 857 183 550 338 52,690 | 61,701 989 
September 58, 366 20, 472 2, 681 9, 696 5, 254 952 121 1,100 | 253 | 415 | 273 | 37,621 | 36, 595 | 1, 026 
October 44, 695 21, 187 2, 977 9, 753 5, 246 1, 132 132 1, 118 236 | 593 327 33,181 | 32,231 | 950 
November 1, 633 20, 968 3, 066 9, 738 5, 262 1, 196 124 939 178 | 465 332 | 30,333 29, 561 77: 
December 4,875 21, 206 3, 304 9, 605 5, 288 1, 230 124 982 206 417 286 33, 293 30, 887 | 2, 406 
1941 | 
> | | 
January 64, 840 21, 929 3, 603 9, 739 5, 312 1, 393 120 1, 063 221 478 | 266 42,645 | 39,270 | 3, 375 
February 59, 859 22, 532 3, 757 9, 899 5, 307 1, 602 124 1, 225 | 187 431 | 259 37,068 | 34,611 | 2, 457 





' Payments to individual beneficiaries under programs; data exclude cost of 
eiectretion. For detailed data see tables in program sections of the 

ulletin. 

? Represent old-age retirement benefits under all acts and disability retire- 
ment nefits under Railroad Retirement and Civil Service Retirement 
Acts; see p. 39. 

4 Amounts, including retroactive payments, certified to the Secretary of 
the Treasury for payment; represent primary benefits, wife’s benefits, and 
benefits to children of primary beneficiaries; partly estimated. 

‘ Amounts, including retroactive payments, certified to the Secretary of 
the Treasury for payment, minus cancelations, during month ended on 20th 
calendar day. 

§ Principally payments under civil-service retirement and disability fund 
but include also payments under Canal Zone retirement and disability fund 
and Alaska Railroad retirement and disability fund. Data for calendar 


Bulletin, April 1941 


years 1936-39 estimated on basis of data for fiscal years. Include accrued 
annuities to date of death, paid to survivors. 

¢ Amounts, including retroactive payments, certified to the Secretary of 
the Treasury for payment; represent widow’s benefits, widow’s current 
benefits, parent’s benefits, and orphan’s benefits; partly estimated. 

7 Amounts, including retroactive payments, certified to the Secretary of 
Treasury for payment; represent payments 1937-August 1939 at age 65, pay- 
ments 1937-41 with respect to deaths of covered workers prior to Jan. 1, 1940, 
and payments beginning January 1940 with respect to deaths of covered work- 
ers after Dec. 31, 1939. 

* Amount of checks issued, as reported by State agencies to the Bureau of 
Employment Security. 

* Amounts certified by regional offices of the Railroad Retirement Board 
to disbursing officers of the Treasury in the same city. 


93 


. 





survivor payments are greatest under the Social 
Security Act. As amended in 1939, it provides 
monthly benefits for certain survivors (orphans, 


widows with children, or dependent parents) of 


workers who died before retirement age as well 
as for widows and children of aged annuitants. 
In contrast, the Railroad Retirement Act provides 
only the following types of survivors benefits: (1) 
short-time survivors benefits to a designated 
beneficiary or to the dependent next of kin of an 
annuitant under the 1935 act, equal to one-half 
the regular monthly payment and payable for 12 
*months only, and (2) lifetime benefits to the sur- 
viving spouse of an annuitant who elected a 
smaller annuity during his own lifetime. Similar 
provisions for joint and survivor annuities have 
been provided under the Civil Service Retirement 
Act, effective January 1, 1940; as yet no survivor 
annuities are payable. 


The monthly retirement payments under the 
Railroad Retirement Act and the three retirement 
acts administered by the Civil Service Commis. 
sion include certain payments for disability, op 
quite different bases. Under the Civil Service 
Retirement Act, employees may be retired if they 
are “totally disabled for useful and efficient service 
in the grade or class of position occupied by the 
employee,’”’ with no limitation on age and a re. 
quirement of only 5 years of service. One-fourth 
of the annuitants currently on the roll are disability 
annuitants (table 3); their annuities at the end of 
the last fiscal year were one-fifth of the total 
annuities payable.* Under the Railroad Retire. 
ment Act of 1937, disability retirement is limited 
to employees “totally and permanently disabled 
for regular employment for hire,” with a require- 
ment of 30 years of service, or 60 years of age (and 


3 For further discussion of civil-service disability annuitants, see pp. 36, 39. 


Table 2.—Individuals receiving payments under selected social insurance and retirement programs, by month, 


January 1940-February 1941 


{In thousands] 





Retirement and survivors insurance beneficiaries 





Monthly retirement bene- 


Survivor beneficiaries 


Unemployment insur 
ance beneficiaries 


—a meg wm me © Sf = hlU6chl!.lUwOlUCCUeD 

















ficiaries Separated 
a aa —_ employees 
receiving 
Monthly bene- , ee oor ee refunds Under Under 
Year and_month ficiaries Lump-sum beneficiaries * under State the 
J eg EEE ea eas under the | unemploy-!| Railroad 
Under | te | te | | ae] eee, | ee 
; Railroad | Civil | Under : Under | Ved |, | — 
entles | tire- Service a the “ae the the | mission * — —" 
‘Acti | ment Com- Social | Railroad) gooigy | Railroad | Civil 
| Act? | mission?! « so, | Retire- | o - Retire- Service 
| } | Security me Security nt Cc 
Act ent Act’? | men Com- 
Act! Act mission * 
| ; : - 
| | | | | 
3.7 136.6 60.6 | 0 | 2.8 8.9 | 1.0 0.4 1.5 874.8 57.0 
7.1 137.6 60.7 | 1.3 2.8 | 7.2 | 1.2 -4 1.2 985 52.8 
27.0 138.4 | 60.8 | 5.6 2.8 9.5 | 1.0 | 5 1.8 1, 095. 2 57.4 
39.7| 130.3} 61.2) 130) 3.0 8.6 | 14 ‘5 15 | 960.7 50.9 
53.7 | 140.2 | 61.9 | 18.8 | 3.0 8.8 | 1.3 | ua 1.3 1, 201.0 35.0 
69.6 | 141.2 62.7 | 27.1 3.1 | 8.2 | 1.2 5 1.3] 1,268.6 31.4 
86.3 142.1 63.5 34.5 3.1 | 7.6 | 1.0 5 1.2 1, 220.0 22.3 
101.6} 143.0) 63.8 41.8 3.1 | 6.7 | 1.0 5 16/ 1121.8 31.1 
115.6 | 143.9 | 64.4 | 49.3 3.2 | 8.6 | 1.3 .4 1.6 | 875.4 37.8 
130. 9 144.9 64.6 59.1 3.2 | 8.6 1.1 .6 1.7 | 698. 1 28.9 
140.7 145.6 | 65.0 66.7 3.2 | ae u sa 1.5 | 676. 1 20.3 
150.6 146.0 | 65.2 | 75.1 3.3 | 7.3 1.0 6 | 1.6 | 666. f 73.7 
} | 
164.8 146. 4 | 65.5 83.3 3.3 7.8 1.0 9 1.7 825. 7 77.6 
175.0 147.3 | 65. 5 92.9 3.3 | 9.1 8 5 1.7 806. 4 63.2 














receiving both survivor and death-benefit annuities are counted twice, but 
2 or more individuals sharing 1 death-benefit annuity are counted as 1. 

* Number of deceased wage earners with respect to whose wage records 
payments were made to survivors. 

7 Represent deceased wage earners whose survivors received payments 
under either 1935 or 1939 act. 

§ See footnote 3 for programs covered. Represent survivors of employees 
who died before retirement age and of annuitants with unexpended balances. 
* See footnote 3 for programs covered. ; 

10 Represent average number of weeks of unemployment compensated in 
calendar weeks ended within month. 

1! Number of individuals receiving benefits during second and third weeks 
of month for days of unemployment in registration periods of 15 consecutive 
days through November 1940 and of 14 days thereaiter. 


1 Primary beneficiaries and their wives and children, for whom monthly 
benefits were certified to the Secretary of the Treasury during month. Dis- 
tribution by type of benefit estimated for each month of 1940. 

2 Employee annuitants and pensioners on roll at end of month; include dis- 
ability annuitants (see p. 94). 

3 Annuitants under Civil Service, Canai Zone, and Alaska Railroad Retire- 
ment Acts; represents age and disability retirements, voluntary and in- 
voluntary retirements after 30 years’ service, and involuntary separations 
after not less than 15 years’ service. 

4 Widows, parents, and orphans for whom monthly benefits were certified 
to the Secretary of the Treasury during month. Distribution by type of 
benefit estimated for each month of 1940. 

5 Widows receiving survivors benefits under joint and survivor elections 
and next of kin receiving death-benefit annuities for 12 months. Widows 


Social Security 


94 





vice 
’ the 
L re- 
urth 
ility 
d of 
otal 
tire- 
ited 
dled 
ire- 
and 


6, 39. 


ith, 


ur 


sd 


nt 
ce 


os | fe” emer e” 


NOD Sn OoOe & 


wo 


a reduction in annuity for each month that they 
are under age 65). Even so, 18 percent of the 
employee annuitants as of June 30, 1940, were 
disability annuitants, and their annuities were 18 
percent of the annuities payable. The disability 
annuitants and their annuities amounted to 13 
and 14 percent, respectively, of employee annui- 
ties plus pensions. Obviously, some of the pen- 
sioners taken over from the pension rolls of the 
railroads had been retired for disability; therefore 
these latter figures are an understatement of the 
importance of disability retirement under the 
Railroad Retirement Act. 

Lump-sum payments also are on different 
bases under the three retirement systems included 
in the series. Lump-sum death payments under 
the Social Security Act are in effect a burial benefit 
in cases in which no survivor is currently eligible 
for monthly benefits. Under the Railroad Retire- 
ment Act they represent a return of deposits, 
calculated as 4 percent of wages in covered em- 
ployment after December 31, 1936. Actually, the 
employees contributed 2% percent of their wages 
in 1937-39 and 3 percent since 1939. Under the 
civil-service acts, lump-sum death payments are a 
direct return of deposits (with interest) to survi- 
vors of employees in active service and of un- 


Table 3.—Annuitants on the roll of the three retirement a 
Commission, and annuity payments, by 


expended balances of deposits to survivors of 
annuitants who died before drawing their full 
deposits in the purchasable portion of their 
annuities. In spite of the limited scope of the 
lump-sum payments under the Social Security 
Act, lump-sum payments are largest under that 
act because of its coverage of over 30 million 
workers. 

Tables 1 and 2 include data on refunds under 
the civil-service retirement acts to employees 
leaving the Federal service. These payments are 
of a different character from the other payments 
included in table 1 for they are not payments for 
the risk insured against—in this case, old-age or 
disability retirement. Such refunds are not pro- 
vided under the other retirement programs. 
Under the Social Security Act, workers who leave 
covered employment retain their wage credits, to 
which can be added any future wage credits in 
subsequent covered employment. If fully and 
currently insured, they have rights to survivors 
benefits as long as the insured status lasts in ac- 
cordance with the provisions of the law. If fully 
insured, they retain some rights to retirement 
benefits indefinitely. Under the Railroad Retire- 
ment Act, workers who leave covered employ- 
ment retain their wage credits—no matter how 


nd disability systems administered by the Civil Service 
month, January 1940-February 1941 





Annuitants on the roll 


Tota Civil service ? 


Year and 
month 
Dis- | onary Dis- | ontary 
bi untary | + i ahil. } 
Ag rr : separa- otal Age ‘ = separa- 
tion ? ’ tion? 
1940 total 
January 60,601 43,389 | 15,139 2,073 | 59,941 | 42,042 | 14,966 | 2,033 
February 60,709 | 43,467 | 15,176 | 2,066 | 60,045 | 43,017 | 15,002] 2,026 | 
March 60,848 | 43,546 | 15, 239 2,063 | 60,180 | 43,093 | 15,064 | 2,023 | 
April 61. 240 | 43.896 | 15, 280 2,064 60,570 | 43, 441 15,105 | 2,024 
May 61, 904 44, 508 15, 342 2,054 | 61,226 | 44,046 | 15, 166 2,014 | 
June 62,706 | 45,177 | 15, 471 2,058 | 62,027 | 44,714 | 15, 204 2,019 | 
July 63,471 | 45,736 | 15, 674 2,061 | 62,781 | 45,265 | 15, 494 2, 022 
August 63,802 | 45,936 | 15, 799 2.067 | 63,104 | 45,464 | 15,612 | 2,028 
September 64,376 | 46,288 16,010 2,078 | 63,667 | 45,812 | 15,816 2, 039 
October 64.623 | 46.450 | 16,108 2,065 | 63,918 | 45,975 | 15,917 | 2,026 | 
November. 64, O04 46,632 16, 261 2,071 | 64,247 | 46,152 | 16,063 | 2,032 | 
December it 1s 1 i 16. 384 2.079 64, 525 46, 301 16, 184 2, 040 
1941 
January 65, 547 | 47,007 | 16, 453 2,087 | 64,815 | 46,516 | 16, 251 2, 048 
February 65,510 46,948 | 16,483 | 2,079 | 64,782 | 46,458 | 16,283 | 2,041 


Annuity payments * 
(in thousands) 


Saseae a : Alaska 
Canal Zone Railroad 
: Invol- Bera | 

Dis- ‘ Civil | Alaska 

Total Age §; abil- — Totalt|Age’) Total | serv- | anes Rail- 

ity , : | ice | 4“ | road 

| | 
$62,019 ($61,100 | $839 | $50 
595 | 395| 161 39| 65| 52| 5,001) 4,928/ 67 | 6 
597 | 397] 161 | 39 67 | 53 | 5,019) 4,947) 67 | 5 
| 600 399 | 162 | 39 68 54 5, 057 4,981 | 69 | 7 
| 602] 401) 162 39/| 68] 54| 5,071 | 4,997 | 68 | 6 
610 | 408 | 163 39/ 68| 54/| 5,137] 5,062 69 6 
611 | 409| 164 38 68 | 54] 5,197 | 5,122 69 | 6 
| 619 | 414] 167 38 71 | 57) 5,249) 5,169 71 gy 
| 627 | 416] 173 | 38 71 | 56| 5,238) 5, 160 72 6 
| 636 | 419] 179 38 73| 57| 5,254) 5,174) 71 4 
| 632| 418| 176 38 73| 57| 5,246] 5,168)  72| 6 
641 | 421 | 182 38 76| 59| 5,262] 5183] 72} 7 
648 | 426 | 184 38 75| 68! 5,288) 5,209| 72 7 
| 
| ; Aa 

657 | 433 | 186 38 75 | 58| 5,312] 5,233 73 6 
73 6 


651 | 430 184 37 77 60 5,307 | 5, 228 





' See footnotes 4, 5, and 7. 

* After 15 years or more of service and at least 45 years of age. 

‘ Includes persons whose annuities were suspended under national defense 
act of June 28, 1940, because of reemployment in Army or Navy Department. 

‘Includes voluntary and involuntary retirement after 30 years’ service. 

‘Includes voluntary and involuntary retirement after 30 years’ service and 
voluntary retirement after 25 years’ service. 


Bulletin, April 1941 
310125—41——7 


¢ Difference between total and age annuitants represents disability annui- 
tants except for 1 involuntary separation each month. 

7 Includes voluntary retirements after 30 years’ service. 

§ Net pone. including retroactive payments, adjusted for cancela- 
tions and refunds during period; include amounts of accrued annuities paid 
to estates of deceased annuitants. 








small—until they reach retirement age, when the 
credits will yield an annuity or a commuted lump- 
sum payment. 

While an average of 1,500 employees withdrew 
deposits of $270,000 per month in 1940 and 1941 
under the three retirement acts administered by 
the Civil Service Commission, the amount with- 
drawn is a negligible item in the total payments 
presented in table 1—only 0.4 percent in Febru- 
ary 1941. In table 4, these refunds to separated 
employees are presented in some detail, together 
with lump-sum payments to survivors of deceased 
employees or of deceased annuitants. 

The continuous growth in the obligations of the 


retirement systems is revealed more clearly jp 
terms of monthly beneficiaries (table 2) than of 
benefit payments. In comparison with February 
1940, the number of annuitants in February 194] 
under the civil-service retirement acts increased 
7.9 percent; under the Railroad Retirement Act, 
7.3 percent; and under the Social Security Act. 
where monthly payments began in January 1940. 
more than 3,000 percent. When comparisons are 
made of the numbers of annuitants under the pro- 
grams, it should be remembered that the data for 
the different systems are on different bases. The 
count of monthly beneficiaries under the Social 
Security Act includes wives and children of pri- 


Table 4.—Refunds from the three retirement and disability funds administered by the Civil Service Commission, 
by type of refund and specified period, 1920-40 


[Amounts in thousands] 





, : al Accumulated de- Unexpended bal- 
Total Refunds to sepa- juctions of de- ance leceased 
rated employees . “~ Bast ese 
Fund and period ceased employees eae 
Number Amount | Number Amount Number Amount Number Amount 
Civil service 
Cumulative through February 1941_- : a 600, 933 $101, 200 532, 179 : 51, 703 
Fiscal year: 
1920-21 through 1934-35... 484, O81 57, 767 445, 384 14, 209 2 4, 488 : 
1935-36__...... 16, 870 6, 466 11, 892 $2, 597 3, 111 $2, 703 1, Se $1, 166 
1936-37 19, 463 7, 228 14, 403 3, O59 2, 976 2, 866 2, ON4 1, 303 
1937-38 23, 556 &, 322 18, 252 3, 783 3, 021 3, 135 243 1, 404 
1938-39 19, 913 7, 287 14, 800 2, 727 2. 871 3, 155 242 1, 405 
1939-40 20, 140 &, 063 15, 183 2, 857 2, 812 3, 723 145 1, 483 
1940-41 through February-. 16, 910 6, 067 12, 265 2, 272 2, 703 2, 672 He 1123 
1941 
January 2, 590 731 1, 659 257 ert) 9 7 13 
February -. 2,115 665 1, 639 251 265 278 211 1% 
Canal Zone 
Cumulative through February 1941_- 1, 638 851 1, 327 79 2 
Fiscal year: 
1931-32 through 1934-35 529 244 448 5S 
1 — al cali aol ini itinlalin inde 132 76 us 35 24 3 8 
1936-37 116 81 4 37 14 27 18 17 
1937-38 204 120 168 73 il 19 2 28 
1938-39 . 168 109 131 55 26 sy l 15 
1939-40 et 179 102 126 36 2s 11 2 26 
1940-41 through February ---- 310 119 272 69 18 0 2 20 
1941 
January - -. 34 9 33 6 } 
EE Re ee ee 49 25 42 8 4 12 5 
Alaska Railroad 
Cumulative through February 1941_- 455 53 419 33 21 7 5 13 
Fiscal year . 
1936-37 4 (*) 2 ‘ 2 ‘ 
1937-38 _ - 218 s 213 7 2 ‘ 3 l 
1938-39 _ - 97 ll 90 7 5 2 2 2 
1939-40___..._. 87 21 71 11 9 4 7 ‘ 
1940-41 through February -..- 49 13 43 . 3 2 3 
1941 | 
0 ere Saini patna aii och ne aides 15 3 i4 3 l (*) 
SE a Ee ee ee aoe eee ore Sees | 6 (*) 6 (*) — 





' Exclude accrued annuities paid to estates of deceased annuitants. 
3 Not available. 

3 1930-31 through 1934-35 only. 

4 Less than $500. 


96 


Source: Unpublished data from the Actuary of the Retirement Division 


of the Civil Service Commission. 


Social Security 





-_ = ae he 


rh 


y in 
n of 
uary 
194] 
ased 
Act, 
Act, 
940, 
are 
pro- 
. for 
The 
cial 
pri- 


ion, 


bal- 


sed 


, 166 


, 405 
48 


l 
l 
1, 404 
|, 123 


on 


ty 


mary annuitants who receive supplementary bene- 
fit checks. The count of beneficiaries under the 
railroad retirement and civil-service retirement 
systems is in terms of retired workers, since no 
supplementary benefits are provided. The count 
of survivor beneficiaries under the Social Security 
Act is increased by the presence of more than one 
beneficiary in many families—for example, a 
widow and child or children, two or more orphans, 
or two parents. 

Like the amount of lump-sum payments, the 
number of lump-sum beneficiaries under the various 
programs fluctuates with the number of working 
days in the month and with administrative factors. 

Though the unemployment insurance benefici- 
aries as well as payments decreased from January 
to February, the decrease in beneficiaries was much 
less than in payments. Unemployment benefits 
paid by State unemployment compensation agen- 
cies were 11.9 percent less in February than in 
January ; those under the Railroad Unemployment 
Insurance Act were 27.2 percent less.‘ The cor- 
responding figures for decline in beneficiaries are 


2.3 and 18.6 percent. Since the data for benefici- 


aries are the average for the weeks ended in the 
month under the State reporting program and the 
number in the middle weeks under the railroad 
system, these data are much less affected by the 
length of the month than are payments for weeks 
of unemployment on a calendar-month basis. 

The annuity payments under the three civil- 
service retirement acts are analyzed for each 
month since January 1940 by program, and the 
beneficiaries by program and reason for retirement 
(table 3). This table will be brought up to date 
semiannually. At the end of February 1941, the 
civil-service annuitants represented 98.9 percent of 
the number on the roll for the three systems; their 
payments in 1940 were 98.5 percent of the aggre- 
gate payments. The numbers on the roll include 
234 employees of the War and Navy Departments 
whose annuities have been suspended under the 
national defense act of June 28, 1940, because they 
have returned to work.® 





‘ For discussion of reasons for these declines, see pp. 63 and 83. 

§ Regular Ceductions from salary during the period of reemployment may 
be used as credit for additional service in the computation of any annuity 
awarded thereafter or may be refunded with interest upon separation from 
the service. 


Chart 2.—Index of income payments in the continental United States, January 1929=February 1941 ! 


INDEX NUMBER 


[Total payments in average month 1929100] 


INDEX NUMBER 





a a | ~ — 




















40 I wo 





20 

























oz 
1929 1930 1931 


Source: U.S. Department of Commerce, National Income Division. 
































































a i ia ] ee = T SS ee ~ | 2 1@) 

| | | 
| | | 

| | j | 

100 

' | | 

TO | PAYMENTS TO SOCIAL INSURANCE } 
VETERANS | “4 BENEFITS / | 
iby Uy if lie 

DIVIDENDS & INTEREST {80 

DIRECT RELIEF m, 

» _ | 
WORK RELIEF —AMAMABRES ABE SIS SE 

1——— “£4 ENTREPRENEURIAL INCOME f= 60 
| 
| 
| 

40 

Ce cay vscnees 
SATION OF EMPLOYEES ¥% aie — 20 
RS be Laibamanonac boat RRS 0 
1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 
1 Compensation of employees, entrepreneurial income, and dividends and interest adjusted for seasonal variation. 
97 


Bulletin, April 1941 








Financial and Economic Data 


Receipts and Expenditures 

During February, always a high month for 
receipts under the Federal Insurance Contribu- 
tions Act and the Federal Unemployment Tax 
Act, Federal social security taxes amounted to 
$188 million, or 28 percent of total Federal re- 
ceipts as compared with 39 percent last February 
and 37 percent in February 1939 (table 1). Re- 


ceipts for the first 8 months of the current fiscal 
year accounted for 14 percent of total Federal] 
receipts, in contrast to 15 percent and 13 percent 
for the corresponding 8 months of 1940 and 1939, 
respectively. This ratio has declined since 1940, 
because other receipts, especially excise tame 
including special defense levies, have increased 
faster than social security receipts. 


Table 1.—Social security and total Federal receipts, expenditures, and public debt, by specified period, 1936-4] 


{In millions} 





General and special accounts 


Public deb 








Receipts of Federal 








Expenditures ‘ of Federal Government 


Government 
Under the Trust 
| Under the Social | Railroad Re- ti Old- 
Security Act tirement ome "* Change age 
, | Rail- Board Excess | * eons in and Un- | Rail- 
Period | sed Se ae Seer receipts -ooeints Bene ral survi-| em- | road 
+ :2) | retire- * (+) or (4) oy fund | ota) .YOrs | Ploy- | retire-| All 
Social | ment u Admi Net ap- | \expend- expend- balance insur-| ment ment | other 
;, Secu- d ; Admin- propria- ’ | athar| scures - ance trust ac- 
| Total rity | A other Total | istra- | tions and Ad- a other (—) v= trust fund * count 
taxes ? ploy- tive | transfers | jinis-| rail- , fund 
} expenses, to old- = 
| ment j yj trative) road 
taxes # —— io! ee sti 
i grants survivors penses® ment 
to ee = account 
| States *) trust 
| fund 
Fiscal year 
1936-37 $5,294) $252) (*) |$5,042'$8, 442 $183 $265 $1 $7,993 —$3,149 +$374 —$128 $36,425 $267) $312 $35, 846 
1937-38... ... .- 6,242, 604, $150 5,488) 7,626 291 387 3, $146 6,799) —1,384) +306 338 37, 165 662 872 $66 | 35, 565 
1938-39... - 5, 668 631/ 109 4,928 9, 210 342 503 *3 107, 8,255, —3,542 +890 +622 40,440 1,177 1,267 67| 37,929 
P op seems -| 5,925 712 138) 5, 087) 9, 537) 379 10 539 ‘8 121, 8,490 —3,612 +137 are 42,968 1,738 1,710 79, 39,441 
mon en | | 
February 1939_| 3,653. 475 sal 3, 096! 5, 859 232 292 2 89 5,244. —2, 207 +40 +1,128 39,859 044, 1,18 77| 37,653 
February 1940- 3, 503 535 65 2,903 6,128 265 268 5 97 5,493 —2, 626 +211 —488 42,365 1,435 1,640 77| 39, 213 
February 1941. | 4, 281) 582 76| 3,623 7,802 310 475 $4 106 6,907 —3, 521 +209 —190 46,090 2,002 2,087 85 41, 91C 
| 
1940 = | | 
February - .------ 444 172 6 26 668 38}.... -| (% 10 «6620 —224 +36 +67 42,365 1,435) 1,640 77\ 39, 213 
i idtneanened 934 3 27) 904) 956, 27 10 135 1 = 793 —22 +11 +164 42,540 1,570, 1,622 77| 39, 271 
CO 304| 39 (*) =| (265) 783) . (*) 20; 716) —479 +58 —303) 42,658) 1,565) 1,640 77\ 39, 37 
—_— Ee | 400 131) 6, 263) 647) = 1 4 614 —247 —83 —181, 42,808, 1,565 1,721 77, 39,445 
June-.-. | 784) 4 28; 752) 1,022 11 10 136 1}... 874 —238 —60, —139) 42,968) 1,738) 1,710 79, 39, 441 
- SESS | 367 39 1) 327, 854) ey 36) (*) 20 734 —487 +51 +367| 43,771, 1,733 1,723 79) 40, 236 
August __. 566 132) 7; 427; 825) w 119 1 230 645 —259 +320 +196 43,905 1,728 1,808 85) 40, 284 
September -| Til 3 26 683 760) 17) 1 l 10 731 —49 —158 —39| 44,073) 1,876 1,790 85) 40, 322 
ber... | 365, 37) () 328| 901 57) 32) (*) -| 812) —536 24) 495) 44,137) 1,871 1,821) 85; 40, 360 
November. | 485) 133) 5 347| 940, 7| 123 1 20 750, —455 216) —103) 44,273, 1,866, 1,934 85) 40, 388 
mber- y 4, 31,706) 1,173 19 1) ® |. 1,153) —432 —209) +4111, 45,025) 2016, 1,945 85. 40,979 
1941 | | | | | 
0 372 46) 1; 325) 1,142) 53, 32; (*) 10) 1,047 —771 +15 +97) 45,877 2,006 1,974 85 41,812 
February .....--. 674,188 5 481) 1, 208 30) 132 1 20 1,025 —534 —3 324) 46,090 2,002 2,087 85) 41, 916 
! | ' ' 





! Beginning July 1940, appropriations to old-age and survivers insurance 
trust fund minus reimbursements to the Treasury for administrative expenses 
are excluded from net receipts and expenditures of general and special ac- 
counts of the . ‘These net appropriations are included here in both 
total receipts and expenditures for 4 -—-_ with previous months. 

2 Represent collections under the Federal Insurance Contributions Act 
and the Federal Unemployment Tax Act. 

3 Represent total collections under the Carriers Taxing Act and 10 percent 
of collections under the Railroad Unemployment Insurance Act (see table 2, 


footnote 5). 
¥ —~ public-debt retirement. Based on checks cashed and returned 
‘ Exclude funds for vocational rehabilitation program of the Office of Edu- 
cation and for disease and sanitation investigations of the Public Health 


Service (see table 3, footnote 1); also exclude grants to States for employ- 
ment service administration under the Wagner-Peyser Act. Such grants 


98 


are included in “all other.” Also exclude administrative expenses incurred 
by the Treasury prior to July 1940 in administration of title LI of the Social 
Security Act and the Federal Insurance Contributions Act. 

* Include expenditures for administration of railroad unemployment in- 
surance, amounting to $500,000 in 1938-39, $5.0 million in 1930-40, and $2.2 
million in 8 months ended February 1941. 

? Include all trust accounts, increment resulting from reduction in weight 
of gold dollar, expenditures chargeable against increment on gold (other than 
retirement of national bank notes), and receipts from seigniorage. 

§ Beginning July 1939, contains separate book account for railroad unem- 
a) roy account and for each State employment security agency. 

ss than $500 

1° Transfers shown here for March and June 1940 exclude amounts reim- 
bursed to the Treasury for administrative expenses. 


Source: Compiled from data in the Daily Statement of the U. 8, Treasury. 


Social Security 


oe ee & & tee 


eet Ot A FE tee, Geet Geet Ged Se, Oe 


bat aan 6c eee ee 


ee SS a 


iscal 
leral 
‘cent 
939 
940 


’ 


4] 


All 
ther 


| 


a eee ad 
& £88 


s =e” 
=r 
Pes 
mw 


ght 


Federal expenditures under the Social Security 
Act in February totaled $162 million, $30 million 
of which represented administrative expenditures 
and grants to States, and $132 million the net 
appropriations to the old-age and survivors insur- 
ance trust fund. 

Total Federal expenditures, including expendi- 


Table 2.—Social insurance taxes under selected pro- 
grams, by specified period, 1936-41 


[In thousands] 























Old-age and sur- Unemployment insurance 
vivors insurance 
_ | i c 
: Taxes | | — i 
Period Fe 1 on State un- | Federal 
Federal | carriers | employ- | unem- | Ploy: 
insurance ond ment ploy- ment 
—T their | contribu-| ment | 'SUr 
ons : ance 
employ- tions ? tax ‘ contri- 
— butions 
Cumulative through 
February 1941 $2, 339, 577 $453, 223 |$3, 332,805 ($442,325 | $83, 257 
| 
Fiscal year: | 
1936-37 194, 346 345 | (*) |? 57, 751 5 
1937-38 514, 406 | 150,132 | (*) De Teanceceds 
1938-39. _ 530,358 | 109,257 | 803, 007 | 100, 869 
1939-40 604, 694 | 120,967 | 853,955 | 107, 523 49, 167 
§ months ended: 
February 1939 388, 694 81,663 | 502,965 86, 531 ; 
February 1940 441, 213 63, 100 637, 341 93, 375 17, 054 
February 1941 495, 773 72, 522 639, 378 | 86,079 34, 090 
1940 
February. - . 115, 227 5, 405 95,118 | 57,043 | O49 
March... . 2,254 | 25, 406 9, 074 1,213 | 15,934 
April... 35, 843 328 | 100,033 | 3,022 17 
May..... 22,489 | 5,778 96,972 | 8,804 1, 378 
June... .. 2, 805 26, 356 | 10, 535 1, 020 14, 783 
a 38, 064 529 | 104, 497 5O4 12 
August..._- 123, 829 7, 052 | 95, 623 8, 132 1, 180 
September - - 2,759 | 24, 587 | 7, 861 584 | 15,065 
ber 34, 500 366 115,721 | 2,747 } 22 
November 125, 124 4, 804 85,117 | 7,998 | 868 
December 3, 141 29, 166 12, 464 | 558 16, 331 
1941 | 
January 33, 923 604 129, 532 | 12,082 44 
February - - - - 134, 433 5,414 | 88,562 | 53,475 569 
! Tax effective Jan. 1, 1937, based on wages for employment as defined in 
Internal Revenue Code (ch. 9, subch. A, sec. 1426), payable by employers and 
employees. 


1 Tax effective Mar. 1, 1936, based on wages for employment as defined in 
Carriers Taxing Act, payable by carriers and employees. 

‘Represent contributions plus penalties and interest collected from em- 
ployers and contributions from employees, deposited in State clearing ac- 
counts. For differences in State rates, see p. 73, table 7, footnote 1. Includes 
contributions based on wages from railroad industry prior to July 1, 1939. 
Subsequent transfers from State accounts to culvend Gaaneieeunns insur- 
ance account in unemployment trust fund, amounting to $103.2 million as of 
Feb. 28, 1941, are not deducted. Figures reported by State agencies are cor- 
rected as of Mar. 31, 1941. 

‘ Tax effective Jan. 1, 1936, based on wages for employment as defined in 
Internal Revenue Code (ch. 9, subch. C, sec. 1607) payable by employers 
only. Amounts represent Federal tax collections after deduction for amounts 
paid into State unemployment funds on covered wages earned in previous 
calendar year. 

' Tax effective July 1, 1939, based on wages for employment as defined in 
Railroad Unemployment Insurance Act, payable by employers only. Com- 
puted from data in Daily Statement of the U. 8. Treasury. Represents 10 
percent which is deposited with the Treasury and appropriated to railroad 
unemployment insurance administration fund for expenses of the Railroad 
Retirement Board in administering act; and remaining 90 percent which is 
deposited in railroad unemployment insurance account in unemployment 
trust fund and is not included in receipts of general and specia! accounts of 
the Treasury. Amounts therefore differ from figures on p. 98, table 1, which 
represent only the 10 percent deposited with the Treasury. 

§ Not available. 

‘Includes $40.6 million subsequently refunded to States which did not 
collect taxes on 1936 pay rolls and in which employers paid full tax to Federal 
Government. 


Bulletin, April 1941 


tures from trust accounts, exceeded total Federal 
receipts during the month by $537 million. This 
excess was reflected in a decrease of $324 million 
in the general fund balance, and an increase of 
$213 million in the public debt. Approximately 
53 percent of the rise in the public debt represents 
an increase in the holdings of the unemployment 
trust fund. The sale of United States Savings 
Bonds accounts for most of the remaining increase. 


Table 3.—Federal appropriations and expenditures for 
administrative expenses and grants to States under 
the Social Security Act, by specified period, 1939-41 ' 


{In thousands] 





| Fiscal year 1939-40 | Fiscal year 1940-41 





Expendi- Expendi- 

Appro- tures Appro- tures 

| pria- through an through 
tions ? Febru- tions * Febru- 

ary * ary * 


Item 





Total, administrative ex- 
penses and grants to States_| $383, 844 | $264,946 | $440,894 | $310, 208 


























Administrative expenses - --.---- 25, 188 13, 870 27, 604 21, 044 
Federal Security Agency, Social 
Seourkty Board ©. ...........- 24, 750 13, 621 27, 220 17, 150 
Department of Labor, Chil- 
=e 338 207 364 233 
Department of Commerce, 
Bureau of the Census-------__| 100 41 110 76 
Department of the Treasury *._| (®) (*) (*) 3, 585 
Grants to States... .... _......| 358, 655 | 251,076 | 413,200 | 289, 164 
Federal Security Agency.......| 349,000 | 244,491 | 402,000} 281, 237 
Social Security Board ---- | 339,500 | 237,793 | 391,000 273, 530 
Old-age assistance ---_- . __- 225, 000 160, 688 245, 000 177, 509 
Aid to dependent children 45, 000 30, 467 75, 000 43, 649 
Aid to the blind. -____--- 8, 000 4, 365 10, 000 4, 933 
Unemployment compensa- 
tion administration - - -_- 61,500 | 7 42,273 61, 000 1 47, 439 
Public Health Service: 
Public-health work.......| 9,500} 6,698 | 11,000 7, 707 
Department of Labor, Chil- 
dren’s Bureau... ..--- 9, 655 6, 585 11, 200 7, 927 





Maternal and child-health | 


services -.. = ---| 4,800 3, 227 5, 820 4,012 
Services for crippled children _| 3, 350 2, 280 3, 870 2, 795 
| 1, 505 1, 078 1, 510 1, 120 











Child-welfare services ._- -- - | ; 





1 Exclude some funds appropriated and expended under the Social Secu- 
rity Act, because they are not separated from other Federal funds for similar 
purposes. Such is the case with funds for vocational rehabilitation for which 
$111,500 was appropriated in 1939-40 and $113,000 in 1940-41 for administra- 
tion in the Office of Education, and $1,938,000 in 1939-40 and $2 million in 
1940-41 for grants to States. For disease and sanitation investigations of the 
Public Health Service, appropriations were $1,640,000 in 1939-40 and $1,625,000 
in 1940-41 in addition to grants to States shown in this table. 

2 Exclude unexpended balance of appropriations for previous fiscal year. 
Appropriations for 1939-40 include additional appropriations of $17.3 million 
approved Aug. 9, 1939. 

3 Based on checks cashed and returned to the Treasury. inttoieserpentt 
tures from reappropriated balance of appropriations for previous year. 

4 Includes amounts expended by the Board in administration of title II of 
the act, reimbursed to general fund of the Treasury. 

5’ Represents amounts expended by the Treasury in administration of title 
II of the Social Security Act and the Federal Insurance Contributions Act 
reimbursed to general fund of the Treasury. 

* Not available, 

7 Includes grants certified by the Social Security Board to States for em- 
ployment service administration to meet requirements of unemployment 
compensation program. Excludes grants to States for employment service 
administration under the Wagner-Peyser Act, for which $3.5 million was 
appropriated in 1939-40 and $3 million in 1940-41. 


Source: Various Federal appropriation acts (appropriations); Daily State- 
ment of the U. 8S. Treasury (expenditures). 


99 








Social Insurance Tax Collections 

State unemployment contributions, as well as 
Federal insurance contributions, reached a new 
high for the first 2 months of a quarter as com- 
pared with the first 2 months of other quarters 
(table 2). Federal insurance contributions in 
February, representing the major portion of the 
taxes paid on covered pay rolls of the last quarter 
of 1940, reflect not only the increased employ- 
ment and pay rolls in defense manufacturing but 
also the unusually well sustained level of construc- 
tion activity, the more-than-seasonal increases in 
employment in retail and wholesale trade associ- 
ated with the Christmas holiday, and Christmas 
bonuses. No estimates are available of the 
amount of bonuses included in taxed pay rolls. 
It seems probable, however, that while bonuses are 
concentrated in a single quarter they form only a 
small part of the total taxable pay roll during that 
quarter, since they are paid to relatively few of the 
persons with taxable wages and salaries, and since 
the earnings of many of these persons are taxed in 


Chart 1.—Estimates of unemploym 


—— OF PERSONS 


the earlier part of the year up to the $3,000 limit. 

The four unemployment estimates shown jp 
chart 1 increased in January, primarily as a result 
of the post-Christmas lay-offs in trade and 
distribution. 

During February $53.5 million was received | 
under the Federal Unemployment Tax Act. | 
Total receipts during January and February, 
representing the major portion of annual Federa] | 
unemployment tax collections based on 1940 pay 
rolls, amounted to $65.6 million as compared with 
$70.7 million in the corresponding months of the 
previous year. The decline of $5.1 million resulted, 
in part, from the fact that 1940 taxable pay rolls 
excluded amounts of salaries and wages in excess 
of $3,000, whereas 1939 taxable pay rolls included 
the total amounts of wages and salaries in covered 
employment. The decline is exaggerated because 
in 1940 a few States did not tax such wages under 
their State laws, and the full 3-percent tax on 
amounts over $3,000 was turned over to the 
Federal Government. 


ent, January 1929-January 1941 


MILLIONS OF PERSONS 



























































| 18 
| | i 
16 = —16 j 
14 }——_____ — 14 
| 
12 ' r ra —12 
r ¢ 
{ 
| ~ + 
10 i 4] 10 j 
| ’ 
8 : Lp 8 
ae Ax 
6 po tohon 6 
: y 
4P “a-Ws-- = ~—Ss«937 ~REGISTRATION OF UNEMPLOYMENT = > . ;4 
\ / fl ——-—— ALEXANDER HAMILTON INSTITUTE 
- \é sccccccsceers AMERICAN FEDERATION OF LABOR 
ol ’ _ meee NATIONAL INDUSTRIAL CONFERENCE BOARD | | _ - 
. | ROBERT NATHAN ESTIMATES 
a oe | a 1940 CENSUS | 
ia 
O | ran L oe La RE SRS eC Se) Aer met Aer De Pe ee ee eT A r i 0 
1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 
t Revised to date. 
*Preliminary. Includes, for week Mar. 24-30, 1940, 5.1 million persons enumerated as seeking work and 2.4 million enumerated as on public emergency 


work. See Census Release, Series P-4, No. 3, Feb. 8, 1941. 


100 


Social Security 





wr 


ency 


rity 





Appropriations and Expenditures 


Total expenditures for administration and 
grants to States under the Social Security Act for 
the first 8 months of the current fiscal year were 17 
percent higher than for the corresponding months 
of 1939-40. Expenditures for each of the grants- 
in-aid programs increased (table 3). The largest 
percentage increase related to aid to dependent 
children; larger appropriations were made for this 
program in the current fiscal year. Grants for un- 
employment compensation administration for the 
first 8 months of the current fiscal year totaled 
$5.2 million more than for the corresponding 
period in 1939-40, whereas appropriations for the 
year 1940-41 are $500,000 less than those for 
1939-40. The reasons for the increased grants 
were presented in March to the House Committee 
on Appropriations, which recommended a de- 
ficiency appropriation for such expenditures, as 
indicated below. 

Deficiency Appropriations 

On March 6, 1941, the Committee on Appropri- 
ations of the House of Representatives submitted 
a report on the First Deficiency Appropriation 
Bill, fiscal year 1941 (H. R. 3836), in which it 
recommended a deficiency appropriation of $3 
million for the Social Security Board for grants 
to States for unemployment compensation ad- 
ministration. This amount is $500,000 less than 
the deficiency appropriation recommended by the 
Bureau of the Budget. 

The Committee report states that the appropri- 
ation for the current fiscal year, for this program, 
amounting to $61 million, is insufficient to meet 
the estimated needs of the State budgets through 
the fourth quarter of the fiscal year. The supple- 
mentary appropriation is required mainly because 
of the increasing number of persons covered by the 
State unemployment compensation laws, the large 
turn-over in employment, and increased place- 
ments and labor-market services in connection 
with the defense program. 

The bill also contains a deficiency appropria- 
tion of $103,000 for grants to States for public 
employment offices under the Wagner-Peyser Act 
for the fiscal year 1941; the Bureau of the Budget 
estimated $120,000 as necessary. 

The Urgent Deficiency Appropriation Act, 1941, 
approved March 1, 1941, includes an appropria- 
tion of $525,000 to the Public Health Service for 


Bulletin, April 1941 


Table 4.—Federal grants to States for public assistance ' 
and administration of unemployment compensation 
laws and State employment services:? Advances 
certified * by the Social Security Board to the Secre- 
tary of the Treasury, by specified period of fiscal year 
1940-41, as of Mar. 31, 1941 


{In thousands] 



































—s oe Employment 
Public assistance security 
January-March 1941 January-June 1941 
State ~ 5 
Aid to Under the} Underthe 
Old-age | depend- | Aid to Social | Wagner- 
assistance ent the blind | Security | Peyser 
children Act Act 
Total $66, 173.8 |$15, 683.2 | $1, 804.2 |$19, 385.8 $953. 9 
Alabama en 322. 1 144.7 9.0 161.3 16.2 
Alaska... . 68. 5 (4) (4) 25. 5 4.2 
Arizona 370. 4 133.4 16.3 69.3 3.3 
Arkansas ~ 280. 6 118. 4 16.9 124.1 11.2 
California. ___. 9, 218.5 903. 9 473.2 1, 876.8 57.4 
Colorado ne 1, 827.8 287.2 33.9 116. 6 6.7 
Connecticut ; ee 745.7 (4) 7.4 351.4 8.8 
Delaware ao 45.9 33.4 (4) 87.5 3.8 
District of Columbia. 137.5 60.9 10.8 80.9 (5) 
Florida 775.6 135.1 55.7 152.0 9.1 
Georgia : 650.8 160.9 28. 6 220.9 18.8 
Hawaii 40.5 77.9 2.3 30.9 3.8 
Idaho. ; 326.9 137.4 10.9 106.3 3.1 
Illinois 4, 793.1 (4) (4) 1, 163.0 46.2 
Indiana 1, 899, 2 734. 7 79.5 452.7 20.5 
Iowa 1, 836.8 | (4) 56.9 154.8 17.5 
Kansas 893.4 287.0 53.8 116.5 16.0 
Kentucky 728.0 | (*) (*) 202. 7 17.1 
Louisiana 729. 4 | 582. 1 35.1 301.1 21.2 
Maine 422.7 | 79. 2 39.4 112.8 4.8 
Maryland 467.5 | 362.9 23.1 194.9 10.0 
Massachusetts e 3, 819. 2 | 700. 1 44.9 1, 252. 6 43.2 
Michigan 1,941.9) 1 047.6 40.4 1, 118.6 50.0 
Minnesota 2, 105. 4 | 470.8 41.8 330. 1 15.6 
Mississippi 335.9 | 7.5 14.0 157.1 20.3 
Missouri 2, 976.9 | 610.8 (4) 140.7 3.5 
Montana 382.8 114.6 8.5 69.9 0 
Nebraska. . 867.1 | 285. 3 24.5 96.8 9.2 
Nevada 98.1 | (4) (*) 67.6 4.2 
New Hampshire. _-. 219.3 40.1 12.8 84.9 2.8 
New Jersey 7 997.3 | 500. 1 33.7 734. 2 26.6 
New Mexico 135.7 99.9 7.5 45.3 2.6 
New York 4, 500.2 | 1, 661.8 113.5 3, 464.7 127.0 
North Carolina___. 593. 7 | 265. 7 48.0 442.8 35.4 
North Dakota 239.2 | 125. 4 9.4 71.5 6.9 
Ohio | 4,777.6 | 401.6 110.3 846. 1 42.7 
Oklahoma | 2,104.0] 449.2 78.6 241.2 24.6 
Oregon 602. 3 79.6 16. 4 297.3 10.1 
Pennsylvania 3,317.5 | 2,351.9 (4) 1, 515.6 69.2 
Rhode Island 224. 4 | 82.8 2.3 185.7 4.4 
South Carolina 253.6 | 68. 4 16.9 137.1 10.5 
South Dakota 455. 5 | 46.3 7.3 54.2 7.0 
Tennessee | 615.8 396. 7 28.0 225. 4 17.9 
Texas | 277.5) @® | @& 564.3 47.3 
Utah | 579.3 | 187.7 | 8.3 77.5 3.1 
Vermont | 151.8 | 30.7 | 5.7 58.8 2.5 
Virginia 331.0 155.8 20.8 221.4 14.9 
Washington 1, 743.0 | 256. 1 49.4 246. 2 19.6 
West Virginia 415.6 391.7 26.5 222. 2 11.2 
Wisconsin | 1,901.8 577.7 | 76.3 | 269. 8 | 19.3 
W yoming 128. 6 38.4 5.8 43.8 | 2.5 





1 Figures not comparable with those on amount of obligations incurred for 
payments to recipients, which represent payments from Federal, State, and 
local funds and exclude administrative expense. 

2 Exclude State and local appropriations to employment service. 

3 Advances are certified for specified period of operation which is not 
necessarily period in which certification is made. For certifications for first 
and second quarters, 1940-41, as of Dec. 31,1940, see the Bulletin, January 1941, 
p. 89. Amounts for public assistance unchanged as of Mar. 31, 1941. Em- 
ployment security advances certified under the Social Security Act for 
Missouri increased to $749,325, and for Utah to $137,372; employment security 
advances certified under the Wagner-Peyser Act for Tennessee increased to 
$35,671, for July-December 1940. 

‘ No plan approved by the Social Security Board. 

5’ Not available because funds for the District of Columbia employment 
service are included in funds of the Federal Bureau of Employment Security 
which maintains it. 


Source: Social Security Board, Bureau of Accounts and Audits. 


101 





emergency health and sanitation activities in the 
fiscal year 1940-41, “‘For all expenses necessary to 
enable the Surgeon General of the Public Health 
Service to assist State and local health authorities 
in health and sanitation activities (1) in areas ad- 
joining military and naval reservations, (2) in 
areas where there are concentrations of military 
and naval forces, (3) in areas adjoining Govern- 
ment and private industrial plants engaged in 
defense work, and (4) in private industrial plants 
engaged in defense work; and to provide emergency 
health and sanitation services in Government 
industrial plants engaged in defense work and in 
areas adjoining United States military and naval 
reservations outside of the United States. _ 


Old-Age and Survivors Insurance Trust Fund 


Total assets of the old-age and survivors in- 
surance trust fund amounted to $2,183.8 million 
at the end of February (table 4). Of this total, 
$2,001.5 million represented investments; $14.1 
million, cash with the disbursing officer; and $168.2 
million, credit to the fund account. Most of the 


amounts appropriated to the fund during the 
month were held to the credit of the fund account 
pending the quarterly investment in special 
Treasury notes. 

No new investments were acquired by the fund 
during February, but an additional $5 million of 
3-percent special Treasury notes was redeemed 
during the month and made available to the dis- 
bursing officer for benefit payments. Accrued 
interest on these notes, amounting to $96,000, was 
credited to the fund. 

The rise in benefit payments has been con- 
tinuous since January 1940, when monthly bene- 
fits were first payable, with the exception of 
November. This rise continued in February, 
when checks cashed for benefit payments amounted 
to $5.9 million, as compared with $5.4 million in 
January 1941 and $1.0 million in February 1940. 


Railroad Retirement Account 


Twenty million dollars was transferred from 
the appropriation account to the trust fund in 
February, and the same amount was transferred 


Table 5.—Status of the old-age and survivors insurance trust fund, by specified period, 1936-41 


{In thousands] 

















Receipts Expenditures Asset 
| Contri- Reim- Special Treasury Cash — 
Period butions ee Benefit burse- notes acquired § with dis- Py “+ Total 
| appro- eral fond Interest ~— ment for ce os = bursing§ . eaten > assets at 
priated $e trust received?) _! . a adminis- officer at r ee of, «end of 
to trust othe , trative | . 2\4-per- | end of **e@Dd Of eriod 
fund ! fund ? expenses | *Percent cent period | Period 
Cumulative through February 1941 $493, 359 |’ $1, 705, 000 | $87,746 | $71,800 | $30,393 $1,354,600 $646, 900 $14,101 | $168,221 $2, 183,822 
Fiscal year: | | 
| aa 265, 000 | 2, 262 27 . 267, 100 73 62 267, 235 
-_ Sas 387, 000 15, 412 | 5, 404 | =— 395, 200 1, 931 13, 012 777, 243 
1938-39. - 503,000 | 26,951 | 13,892 | 14, 900 3, 036 66 | 1, 180, 302 
i i 7 550,000 | 42, 489 | 15,805 | 12,288 | 236,000 324, 90 6, 088 00 | 1,744, 698 
8 months ended: 
cs seis ip nist intently akeee BRED Reacoccéoce 7,910 |_. | 282, 000 4,019 181,014 | 1, 129,333 
February 1940__ ED A AES ee ee 5 ) a 7, 583 |_. | 258, 000 . 5, 450 282, 069 | 1,722,720 
February 1941..............-- 493, 359 ioe 632 36, 762 | 18,105 | —58,600 | 322,000 14, 101 168, 221 | 2, 183, 822 
| 
| 
967 5, 450 282, 069 | 1, 722, 72 
132 1,283 | 6, 183 —6,000 | 141,000 3,045 | 142,142 | 1,715,387 
116 1,998 |_. — 5, 000 6, 047 142, 259 | 1,713, 505 
- a 2,311 — 5 = 3, 735 142, 259 | 1,711, 14 
42, 240 | 2, 630 | 6, 106 —11, 000 183, 900 6, 098 OO 1,744,688 
10 3,117 | 2, 221 — 5, 000 7, 979 36,354 1, 777, 434 
17 3, 565 | 2, 221 — 5,000 | 9, 413 155, 56 1, 893, 078 
77 | 3, 878 | 2, 221 —11, 500 159, 000 10, 370 3,848 | 1, 889,817 
42 4,942 | 2, 407 — 5, 000 10, 426 $5, OS 1, 917, 011 
54) 4,783 | 2,407; —5,000 10,640 | 158,760 | 2,035, 000 
171 | 5, 169 | 2,438 | —12,100 163, 000 10, 416 789 | 2, 030, 706 
| | 
164 | 5, 422 2, 095 — 10, 000 14, 992 ‘ 2, 057, 27 
06 5, 887 2, 095 — 5, 000 14, 101 8, 22 2, 183, 822 











1 Beginning July 1940, trust fund ap 
the Federal Insurance Contributions 
? For fiscal year 1936-37, $265 million was ap 
er} for 1938-39, $369 million plus addition 


million. 


al 


rn equal taxes collected under 


cogeiates: for 1937-38, $500 
$30 million made available 
940 Treasury Department Appropriation Act; and for 1939-40, $550 


3 Interest on investments held is credited annually in June; on invest- 
ments redeemed, in month of redemption. 


102 


4 Based on checks cashed and returned to the Treasury. 


5 Minus figures represent notes redeemed. 

* Prior to July 1940, includes balance of appropriation availabl 

? Excludes $1.0 million made available for investment fro 
credit of fund account. 


Source: Compiled from data in the Daily Statement of the U. 8. 


for transfer. 
m samounts,to 


Treasury. 


Social Security 


the from the trust fund to the disbursing officer for ary in many States, seasonal declines in certain 
unt benefit payments (table 5). Benefit payments types of industries, and the high rate of turn-over 
cial amounted to $10.2 million in February. Total and distortion of seasonal employment patterns 
assets at the end of February, which include cash in connection with defense activity. 
und balances, Treasury notes, and the balance in the In addition to the State withdrawals for bene- 
n of appropriation account, were $124.9 million. fit payments, $2.5 million was withdrawn from 
med Unemployment Trust Fund the Kentucky account for transfer to the railroad 
dis- State deposits in the unemployment trust fund unemployment insurance account. Deposits in 
bans of $145.6 million in February raised deposits for this account by the Railroad Retirement Board 
— the first 2 months of the quarter to $213.8 mil- during February amounted to $512,000, while 


benefit payments totaled $2.7 million. 


lion (table 6). This latter amount was higher 




















-On- - 
, than deposits in the first 2 months of any previous Total assets of the unemployment trust fund 
an “ “71° 
quarter except January-February 1940, when amounted to $2,100.7 million as of February 28, 
. . - “Whe ° *11° 
| deposits reached a record high of $215.8 million. an increase of $105.6 million from the January 
1 _ % p cs — E ene 
ne State withdrawals for benefit payments increased total. Investments increased to $113.0 million 
ite ; ss * , iy a : 
in February for the third successive month. The during the month, bringing the total investments 
1 in ’ : : . , vane 
140 rise in withdrawals for benefits resulted in part to $2,087.3 million; cash held at the end of the 
i | from the beginning of new benefit years in Janu- month amounted to $13.4 million. 
| 
om Table 6.—Status of the railroad retirement account, by specified period, 1936-41 
| in {In thousands] 
Tred j cid 
‘. — Trust fund account Account of disbursing officer 
| 
| | a | 
| 3-percent Treasury . 
Balance notes Cash Total 
oe Period at end of Trans Cancel- | a Sees | | b ecsots 
— Amount period ts “i ee | Deposits nant | . Cas at end of 
at be- after ong ny Interest | Net bal- — | from — a period 
= ginning | transfers | received | ance of | > |) = | at end of | 
of period | to trust prmtton pon sn |" yur- Balance | deposits | fund | ments period 
fund account ments | | chases | at end of | with dis- | | 
al account over | Period | bursing | 
s at sales | Officer | 
of 7 
od ls . ~ “re i i i ie i i ee 
Cumulative through Feb- | | | | | 
ruary 1941 $512,892 2 $18,350 * $485,542 $150 $5, 895 | $85, 400 $85, 400 4 $107 | $406,084 | $379, 664 | § $21,025 $124, 882 
}, 822 Fiscal year | | | | | 
1936-37 46, 620 36,622 | 39,998 ) a Eee 10, 000 4,070 | 5,930) 42, 552 
a. 1937-38 141, 894 94} 141,800 25| 1,411 | 66,200| 66,200| 4140 | 76,900| 76,421) 41,015| 67,449 
t- 1938-39__ 118, 344 11,250 | 107,094 04 | 2, 202 | 1,000 | 67, 200 | 1,956 | 106,574 | 105, 665 | 1,924 82,329 
263 1939-40... 131, 400 10,750 | 120, 650 20 | 2,283 12,200 | 79, 400 | 98 | 112,610 | 113,241} 1,202/ 91,540 
, 302 8 months ended | i | | | | 
698 February 1939 118, 344 29,344 | 89,000 72 os 11,000 | 77, 200 212 | 78,000} 69,256| 9,758 | 116,514 
i February 1940 131, 400 34,250 | 97,150 12 | on 10, 000 77, 200 Ss 89,110 | 74,423 16, 610 128, 068 
= February 1941 133, 350 2 18, 350 106, 000 9 | ini 6, 000 85, 400 107 100, 000 80, 267 21, 025 124, 882 
S22 1940 | 

February 44, 250 34, 250 10, 000 | eee ‘ 0| 77,200 s 10, 000 | 9,643 | 16,610 | 128,068 
om March 34, 250 34, 250 | 0 SD Racwousevaidcaal 0 | 77,200 | 10 | 0 9, 548 | 7,062 | 118,522 
720 April 34, 250 14, 250 | 20, 000 | samme 0| 77,200 | 13 | 20,000) 9, 798 | 17,264 | 108, 727 
, 387 May... 10,750 | 3,500 1 - 0| 77,200 14| 3,500} 9, 705 | 11, 059 | 99, 023 
ee June 10, 750 0 2| 2,283 2,200 | 79, 400 | Os | 9, 767 1,202} 91, 540 
14 July. __. 113,350 | 20, 000 | re 0| 79, 400 | 98 | 20,000; 9,640 11,652| 204, 500 
698 August 87,350 | 26, 000 | eee 6,000 | 85, 400 100 | 20,000} 10,313 | 21,338 194, 188 
$54 September 77,350 | 10,000 0 |... é 0 | 85, 400 100 | 10,000} (9,727/ 21,611 | 184, 461 
078 October 2 58, 350 10, 000 7 oe will 0 | 85, 400 | 102 | 10,000} 10,368 | 21, 243 165, 095 
Sl November 48,350 | 10, 000 | RES 0| 85,400 | 105} 10,000 | 9,981 | 21,262) 155, 117 
= December 38,350 | 10, 000 1 |. ae 0| 85,400 | 106 | 10, 000 9,948 | 21,315 | 145,170 
“14, | j | 
706 1941 | 

January 38, 350 38, 350 | 0 >) ae 0 | 85,400 | 106 0; 10,073; 11,241 135, 098 
on February 38, 350 18,350 | 20, 000 ft) ees 0| 85,400 | 107 20,000 | 10,216 21,025 | 124, 882 
«22 , | | 
— 1 Represents total appropriation to date, including transfer to appropria- 1936-37 which were treated as returns to appropriation rather than as addi- 

tion of balance of $5,392,000 from 1935 act deposits with disbursing officer. tions to trust fund. 

Amounts appropriated annually were: 1936-37, $46,620,000; 1937-38, $99,- 4 Includes transfer of $4,000 from 1935 act appropriation. 

880,000; 1938-39, $118,250,000; 1939-40, $120,150,000; 1940-41, $122,600,000. § After transfer to appropriation of $5,392,000 balance from 1935 act deposits 
fer. 2 After transfer of $9 million to prior-service account to provide funds for with disbursing officer and after transfer to 1935 act appropriation of $2,000 
,to collection of individual employee records of service and compensation prior representing cancelations of checks issued against 1935 act deposits. 

to 1937. betas 

4 Includes payments of $10 million made directly to disbursing officer in Source: Railroad Retirement Board, Bureau of General Control, Division 
ry. 1936-37 and not treated as transfer to trust fund, which was not set up until of Finance, 

July 1937. Excludes, however, cancelations and repayments of $2,000 in 
ty Bulletin, April 1941 7 





Table 7.—Status of the unemployment trust fund, by specified period, 1936-41 ' 


{In thousands] 








| | 7 — | State accounts Railroad unemployment insurance account 
nex- ag a SS ett shat é 
oiuiiee Fan pended | tributed 
Period | alance | interest | = a+ | Transfers Balan 
| end of | certificates t i of | at i of Int t | Withdraw Balance at f De Interest Benefit ance 
riod acquired ? at end of | at end o Deposits nteres it idraw- end of rom epos- Interest pay- | Stend 
| Be period | period: | credited als ¢ State its (credited |**- of De- 
period accounts ments 
i | | ' lod 
Cumulative | | 
through Febru- 
ary 1941__. $2, 100, 651 | $2, 087, 300 $13, 351 $12 | $3, 365, 464 | $104,003 | $1, 529,208 | $1,940,259 § $103,174 $74,931 $1,220 $26,444 $160, 38] 
Fiscal year: 
1936-37 . _ .. 312, 389 | 293, 386 Ot 291, 703 2, 737 1, 000 312, 389 
1937-38 S84, 247 559, 705 12, 247 747, 660 15, 172 190, 975 SM4, 247 
1938-39... 1, 280, 539 395, 000 | 13, 539 811, 251 26, 837 441, 795 1, 280, 539 
Se ied 1, 724, 862 443, 000 14, 862 859, 864 37,524 454, 704 1, 693, 164 1, 801 44, 249 202 14, 552 31, 699 
8 months ended: | } 
February 1939_| 1, 201, 885 313, 000 16, 885 | 4 589, 273 11, 987 283, 626 1, 201, S81 
February 1940., 1,655,658 | 373,000 15, 658 | 5 637, 166 17, 339 286,866 1, 648, 179 6783 | 15,362 25 | 8,696 | 77,475 
February 1941_| 2, 100, 651 | 377,300 | 13,351 12 | 636, 128 21, 642 410, 674 1,940,259 4101,373 30, 683 1,018 11,892 | 160,38] 
1940 
February - -....-..| 1,655, = 103,000 | 15, 658 | 5 153, 718 43,176 | 1,648,179 0 86Y 1, 749 7, 475 
a eaictsncosaiesicrces | 1, 638, 578 | —18, 000 | 16, 578 | ....-- 15, 138 135 44,760 1,618, 692 0 14,326 l 1,915 | 19, 887 
April eee ; | 18, 000 | 6, 757 | 138 | 52, 806 43, 104 1, 628, 304 0 15 1,676 | 18, 226 
May... _....| 1,733,220} 81, 000 | 12, 220 | 138 142, 501 | 56,952 | 1,713,943 900 | 1,240 1,317 | 19, 139 
SD cinionare .| 1, 724, 862 — 11, 000 14, 862 |... 12,254 | 20,049 53, O82 1, 693, 164 28 | 13, 305 176 049 | 31,699 
July. ...| 1,727, 044 13,000 | 4, 044 | 20 | 58, 840 56,410 | 1,695, 504 5414 11 692 | 31,432 
August _. ‘ ..| 1,817,015 85, 000 9, 015 20 | 141, 574 51, 741 1, 785, 427 0 1, 062 925 31, 569 
September. - _..} 1, 802, 082 | —18, 000 | 12, 082 |_. | 9, 278 133 80, 414 1, 714, 424 43,549 | 13, 558 3 1,020 | 87, 659 
October. 1,824,962 | 31,000} 3, 962 | 68 56, 741 | 82,904 | 1,688,171 | 50,016 21 73 | 136,723 
November. 1, 939, 111 113, 000 | 5, 111 | 68 143, 023 29, 863 1, 801, 331 1,014 71 806 | «137,712 
December 1, 957, 977 | 11,300 | 12,677 |.. 12,819 | 21,509 30, 826 1, 804, 833 1,452 | 14, 608 1, 016 1,733 153,144 
1941 | | 
pS 1, 995, 108 | 29,000 | 20,808 | 12 68, 204 38, 001 1, 835, 036 2, 462 40 3, ORS =* 160,061 
February... .......| 2, 100, 651 113,000 | 13,351 | 12 | 145, 649 40, 426 1, 940, 259 2, 467 512 2,659 160,38] 
1 Beginning July 1939, contains separate book account for railroad unem- 5 Includes amounts certified to the State of Connecticut. See footnote 6 
ployment insurance account in which are held moneys deposited by the 6 Certified by the Social Security Board to the Secretary of the Treasury, 
Railroad Retirement Board and from which the Secretary of the Treasury in behalf of the State of Connecticut for payment into railroad unemploy- 
makes benefit payments as certified by the Railroad Retirement Board. ment insurance account in accordance with sec. 13 of the Railroad Unem- 
Trust fund maintains separate account for each State agency, in which are ployment Insurance Act. 
held all moneys deposited from State unemployment funds and from which 7 $15 million was advanced by the Treasury to railroad unemployment 
State agencies withdraw amounts as required for benefit payments. insurance account in July 1939 pursuant to sec. 10 (d) of the Railroad Unem- 
? Minus figures represent certificates redeemed. ployment Insurance Act and was repaid in January 1940 
4 Interest on redeemed U. S. Treasury certificates, received by fund at § Includes $7.5 million transferred from railroad unemployment insurance 
time of redemption but credited to separate book accounts only in last month administration fund in accordance with Oct. 10, 1940, amendments to the 
of each quarter. Railroad Unemployment Insurance Act 
‘ Include transfers to railroad unemployment insurance account. ; ‘ : , 
Source: Compiled from data in the Daily Statement of the | l'reasury. 


104 Social Security 





$$ 


count 


lance 
end 

 pe- 

‘lod 


0, 38] 


m- 


Recent Publications in the Field of 
Social Security 


SOCIAL SECURITY BOARD 


Social Security Yearbook (Annual supplement, for the 
calendar year 1939, to the Social Security Bulletin.) 
Washington: U. S. Government Printing Office, 1940. 
271 pp. 450 cents. 

The Yearbook summarizes, on a calendar-year basis, 
socio-economic data arising from or relevant to the social 
security program. This first issue also includes an outline 
of significant events in the development of the program 
since its inception and bibliographic notes on Board pub- 
lications. 

Fifth Annual Report of the Social Security Board. Wash- 
ington: U. S. Government Printing Office, 1941. 208 
pp. 30 cents. 

Report to the Congress for the fiscal year ended June 
30, 1940; with supplementary data for July 1—October 30, 
1940. 

Cash Benefits Under Voluntary Disability Insurance in the 
United States. By Elizabeth L. Otey. Bureau Report 
No. 6. Bureau of Research and Statistics. Washing- 
ton: U. S. Government Printing Office, 1941. 117 pp. 
15 cents 
A survey of voluntary insurance against sickness and 

disability. The report, limited to cash benefits provided 

through commercial insurance and through the coopera- 
tive insurance offered by fraternal and mutual-benefit asso- 
ciations, analyzes the various types of insurance available, 
explains the extent to which they are utilized, and ap- 
praises their effectiveness in compensating the losses and 
costs occasioned by sickness and disability. The book 


contains bibliographical material. 


GENERAL 


BALLANTINE, Artuur A. “Grants in Aid—Possibilities 
and Problems.’’ Legal Notes on Local Government, 
Worcester, Mass., Vol. 6, No. 1 (October 1940), pp. 
11-16. 

Enocus, Evisapetn Sutrtey. “Children of the New 
World.”” Survey Graphic, New York, Vol. 30, No. 3 
(March 1941), pp. 165-166 ff. 

A review of services for children in Latin America. 


GALARZA, Ernesto. ‘“Labor—Leaven of Democracy.’ 
Survey Graphic, New York, Vol. 30, No. 3 (March 1941), 
pp. 169-171 ff. 

The economie background of the labor movement and 
its objectives in Latin America. 

Gorpon, Manya. Workers Before and After Lenin. New 
York: Dutton, 1941. 524 pp. 

A section on social security contains 8 chapters of factual 


Bulletin, April 1941 


data on, and critical evaluation of, the Russian social serv- 
ices. Among the other topics considered are wages, hous- 
ing, factory work, and education. 


LEWAND, Frank. Formulation of a Federal Invalidity In- 
surince Program. Washington: The Author, 1940. 98 pp. 
A study indicating the need for invalidity insurance in 

the United States and the conditions for its successful 
operation. Part I considers the need for invalidity insur- 
ance, the definition of the risk, foreign insurance systems, 
and existing provisions in the United States. Part II de- 
scribes the standards for a program in this country. Chap- 
ters are devoted to coverage, eligibility, contributions, 
benefits, cost factors, administrative problems, and medi- 
cal aspects. A bibliography and a tabular summary of 
total disability provisions under existing special Federal 
schemes are included. 

New York Criry. Monicirpat Civit Service Com- 
MISSION. The Balance Sheet; A Merit System Progress 
Report, 1983-1940. New York, 1940. 16 pp. 

**1941 Flood of Social Security Bills Greater Than Ever.” 
Social Security, New York, Vol. 15, No. 3 (March 1941), 
pp. 1 ff. 

Comment on some of the 1,200 bills submitted to the 

1941 State legislatures in the fields of unemployment 

compensation, old-age security, and medical care. 


“Organization of the Illinois Department of Labor.” 
Illinois Labor Bulletin, Chicago, Vol. 1, No. 5 (Novem- 
ber 1940), pp. 8-11. 

Ropinson, Marcaret. ‘Canadian Social Services and 
the War.”’ Social Work Today, New York, Vol. 8, No. 6 
(March 1941), pp. 7-9 ff. 

SeirMan, Jacosp 8. “Teaching Social Security and Un- 
employment Insurance.”’ Journal of Business Education, 
Wilkes-Barre, Pa., Vol. 16, No. 6 (February 1941), 
pp. 27-28. 

“Social Security Benefits for Persons in Military Service.” 
Lawyers Guild Review, Washington, Vol. 1, No. 2 (De- 
cember 1940), pp. 14-19. 

Includes the text of a proposed bill, by the Committee 
on Social Legislation of the Lawyers Guild. 


U. S. Bureau or Home Economics. Family Income and 
Expenditures, Middle Atlantic, North Central and New 
England Regions. Part 1—Family Income. By Dorothy 
S. Martin, Day Monroe, Dorothy 8. Brady, and Eliza- 
beth Phelps. Washington: U. 8. Government Printing 
Office, 1940. 259 pp. (Consumer Purchases Study: 
Farm Series. U. S. Department of Agriculture Mis- 
cellaneous Publication No. 383.) 


U. S. Bureau or Home Economics. Family Income and 
Expenditures, Southeast Region. Part 1—Family In- 


105 








come. By Dorothy Brady, Day Monroe, Gertrude 
Schmidt Weiss, and Thelma Dreis. Washington: U. 8S. 
Government Printing Office, 1940. 391 pp. (Consumer 
Purchases Study: Urban and Village Series. U.S. De- 
partment of Agriculture Miscellaneous Publication 
No. 375.) 


U. 8. Drvistox or Lasor Stanparps. Reports of Com- 
mittees and Resolutions Adopted by Seventh National 
Conference on Labor Legislation, December 9, 10, and 11, 
1940. Washington: U. 8S. Government Printing Office, 
1941. 26 pp. (Bulletin No. 45-A.) 

The resolutions adopted include recommendations on 

Federal-State cooperation, workmen’s compensation, labor 

supply in national defense, and migratory labor. 


Winant, Joun G. “Social Insurance in South America.” 
Survey Graphic, New York, Vol. 30, No. 3 (March 1941), 
pp. 172-174 ff. 


Wirtz, Epwin E. “What’s Ahead in Social Security.” 
Harvard Business Review, New York, Vol. 19, No. 3 
(Spring 1941), pp. 311-325. 


An evaluation of unemployment compensation and old- 
age security, with emphasis on past and present legislative 
trends. 


OLD-AGE AND SURVIVORS 
INSURANCE 


Cuicaco. Pusiic ScHoot TEACHERS’ PENSION AND RE- 
TIREMENT Funp. Annual Statement .. . for the Year 
Ending December 31, 1939. Chicago, 1940. 56 pp. 


Corson, Joun J. ‘Multiple Pensions or Wider Coverage.” 
American Labor Legislation Review, New York, Vol. 31, 
No. 1 (March 1941), pp. 30-37. 

Advocates the widest possible extension of old-age and 
survivors insurance as a necessary basis for other possible 
general insurance programs, and as an aid in solving the 
problem of multiple benefits through different types of 
protection. 


Corson, Joun J. “Social Security and Municipal Em- 
pi yees.”” Minnesota Municipalities, Minneapolis, Vol. 
26, No. 3 (March 1941), pp. 99-104. 

An outline of existing retirement protection for municipal 
employees and of arguments for and against the inclusion 
of these employees under the Social Security Act. 


Corson, Joun J. “Taking the Headaches Out of Wage 
Reporting.”” Economic Security Bulletin (National As- 
sociation of Manufacturers), New York, Vol. 5, No. 3 
(March 1941), p. 5. : 


Kennecott Copper Corporation Retirement Plan. Place not 
given [1940]. 15 pp. 


A plan for employees earning more than $3,000 per year. 
“Lump-Sum Death Benefit Payments.” Monthly Review 


of the Railroad Retirement Board, Washington, Vol. 2, 
No. 1 (January 1941), pp. 5-7. Processed. 


Data on payments under the Railroad Retirement Act 
of 1937, for the period ended June 30, 1940. 


106 


MonicipaL Finance Orricers ASSOCIATION OF THE 
Unirep States anD Canapa. Summary of Proceedings, 
Informal Conference on Extension of Old Age and Sur- 
vivors Insurance Under the Federal Social Security Aet 
to State and Local Employees, Washington, D. C., Novem- 
ber 25, 1940, Sponsored by Municipal Finance Officers 
Association. Chicago, 1940. 59 pp. Processed. 


“Municipal Finance Officers Outline Pros and Cons of 
Public Employee Inclusion in Social Security Act.” 
Minnesota Municipalities, Minneapolis, Vol. 26, No. 3 
(March 1941), pp. 104-107. 

A summary of discussion at a meeting between members 
of the Municipal Finance Officers Association and mem- 
bers of the staff of the Social Security Board and the 
Federal Security Agency. 


“Old Age and Survivors Insurance Under Federal Social] 
Security Act; A Statement Prepared by the League of 
Kansas Municipalities.” Minnesota Municipalities, 
Minneapolis, Vol. 26, No. 3 (March 1941), pp. 107-108, 


SouTHEeRN Baptist CONVENTION. RELIEF AND ANNUITY 
Boarp. Twenty-Second Annual Report . . . 1940. 
Dallas, 1940. 29 pp. 

Covers the calendar year 1939. 
tions and resolutions concerning social security. 


Includes recommenda- 


Wirtr, Epwin E. “Is the Continued Drive for Universal 
Pensions a Social Menace?’”’ American Labor Legisla- 
tion Review, New York, Vol. 31, No. 1 (March 1941), pp. 
38-46. 

Presents evidence indicating that some form of universal 
old-age pension is probable, and advocates extension of 
old-age and survivors insurance to the entire population 
and improvement of Federal-State old-age assistance as a 
solution. 


EMPLOYMENT SECURITY 


BakKE, E. Wicat. “The Benefit Structure of Unemploy- 
ment Compensation.” Lawyers Guild Review, Wash- 
ington, Vol. 1, No. 2 (December 1940), pp. 1-5. 
Characterizes as “the basic anomaly” of our existing 

unemployment compensation systems the fact that 
amount and duration of benefits are geared “directly to the 
very inadequacies and irregularities we are trying to 
correct,” and that no account is taken in the formulas 
under which benefits are paid to unemployed workers “of 
the principal factor which leads them to the relief office, 
the size of their families.” 


Bakke, E. Wicut. “The Economists and Unemploy- 
ment.’”’ American Economic Review, Menasha, Wis., 
Vol. 30, No. 5 (February 1941), pp. 294-300. (Papers 
and Proceedings of the 53d Annual Meeting of the 
American Economic Association, 1940.) 


“Board Member Bigge Explains His Proposal.’’ Economic 
Security Bulletin Supplement (National Association of 
Manufacturers), New York, Vol. 5, No. 3 (March 1941), 
pp. 3-6. 

Excerpts from an address on “Some Unsolved Problems 
in Connection with Unemployment Compensation.” 


Social Security 





THE 
‘ings, 
Sur- 
| Ael 
wem-~ 
hicers 


S of 
.ct.”? 


0. 3 


bers 
em- 
the 


Cia) 
2 of 
‘ies, 


08, 


ITY 
40. 


da- 





CauirorniA. State DEPARTMENT OF EMPLOYMENT. 
California Employment and Payrolls in 1938; A Study of 
Workers Covered by the California Unemployment Insur- 
ance Act, Classified by Industry and by County. Pre- 
pared by Research and Statistics Section. Place not 
given, June 1940. 77 pp. Processed. (Report 127.) 


CiacuE, Ewan. ‘The Employment Service and National 
Defense.’’ Labor Information Bulletin, Washington, 
Vol. 8, No. 2 (February 1941), pp. 8-10. 


CoLtoraDO. DEPARTMENT OF EMPLOYMENT SECURITY. 
Job Insurance Under the Unemployment Compensation 
Act of Colorado, Amended 1939. Denver, 1940. 6 pp. 


An informational circular. 


Cox, Emery, Jr. ‘Employment Relationships Within the 
Scope of State Unemployment Compensation Statutes.” 
Washington and Lee Law Review, Lexington, Va., Vol. 1, 
No. 2 (Spring 1940), pp. 232-243. 


Eperuina, F. J. “How Adequate is the Unemployment 
Compensation Program?’ Social Security, New York, 
Vol. 15, No. 3 (March 1941), pp. 3-4. 


Data and critical comment on the amount and duration 
of unemployment benefits, provisions regarding wage 
credits and waiting periods, and the general exemption of 
firms with fewer than eight employees, with particular 
reference to several Southern States. 


Hatter, C. P. ‘ ‘Experience Rating’ under the State 
Unemployment Compensation Laws.” John Marshall 
Law Quarterly, Chicago, Vol. 6, No. 2 (December 1940), 
pp. 202-207. 


A favorable evaluation of experience rating, with special 
reference to the Illinois law. 


“Help Stamp Out Fraud in Operation of Unemployment 
Insurance Law.’’ The Monitor (Associated Industries 
of New York State), Buffalo, Vol. 27, No. 9 (February 
1941), pp. 187-190 ff. 


A statement from Milton O. Loysen, Executive Director 
of the New York State Division of Placement and Unem- 
ployment Insurance, and excerpts from a recent report of 
the New York Unemployment Insurance State Advisory 
Council. 


INDIANA. UNEMPLOYMENT COMPENSATION Division. Es- 
timates of the Cost of Extending the Duration of Benefit 
Payments. Prepared by Research and Statistics Sec- 
tion. Indianapolis, October 7, 1941. 15 pp. Proc- 
essed. (Memorandum No. 21.) 


INTERSTATE CONFERENCE OF EMPLOYMENT SECURITY 
AGENCIES. COMMITTEE ON EMPLOYMENT SERVICE 
CoNnTRIBUTION TO NATIONAL Derense. Report: Vo- 
cational Training for National Defense. Washington, 
January 1941. 32 pp. Processed. 


“Labor Requirements for National Defense.’ Labor In- 
formation Bulletin, Washington, Vol. 8, No. 2 (February 
1941), pp. 5-7. 


METROPOLITAN Empitorment Covunsetors. Handbook 


Bulletin, April 1941 


for Young Job Hunters. New York: Metropolitan Em- 
ployment Counselors, 1941. 35 pp. Processed. 


MorGENSTERN, Oskar. “Unemployment: Analysis of 
Factors.”’ American Economic Review, Menasha, Wis., 
Vol. 30, No. 5 (February 1941), pp. 273-293. (Papers 
and Proceedings of the 53d Annual Meeting of the Amer- 
ican Economic Association, 1940.) 


NATIONAL INDUSTRIAL CONFERENCE Boarp, Inc. Prob- 
lems of Industrial Mobilization. New York: National 
Industrial Conference Board, Inec., January 16, 1941. 
20 pp. 

NATIONAL INDUSTRIAL CONFERENCE Boarp, Inc. Reduc- 
ing Fluctuations in Employment; Experience in 31 Indus- 
tries. By F. Beatrice Brower. New York: National 
Industrial Conference Board, Inec., 1940. 60 pp. 
(Studies in Personnel Policy, No. 27.) 


Comment on the general aspects of employment stabili- 
zation programs and description of several such programs 
in different industrial fields. 


Nortu Dakota. WorKMEN’s COMPENSATION BUREAU. 
UNEMPLOYMENT COMPENSATION Division. Seasonal 
Unemployment as a Special Problem in Unemployment 
Compensation. Bismarck, February 1941. 27 pp. 
Processed. 


“A Plan to Revamp Unemployment Compensation. 
Economic Security Bulletin Supplement (National Asso- 
ciation of Manufacturers), New York, Vol. 5, No. 3 
(March 1941), pp. 1-2. 


An explanation of a plan for modifying the unemploy- 
ment compensation program through the introduction of 
minimum Federal benefit standards and Federal reinsur- 
ance. It includes a memorandum by George E. Bigge and 
a quotation from a report made by the Legislative Com- 
mittee of the Interstate Conference of Employment 
Security Agencies respecting proposed financial changes. 


Posty, THomas E. ‘Unemployment Compensation and 
the Coal Industry in West Virginia.” Southern Eco- 
nomic Journal, Chapel Hill, N. C., Vol. 7, No. 3 (January 
1941), pp. 347-361. 


Points out some limitations in the West Virginia act as 
it applies to the coal industry, and offers suggestions for 
establishing ‘‘a liberal progressive unemployment com- 
pensation law’’ in the State. 


‘Repeal of Merit Rating Widely Demanded.” Social 
Security, New York, Vol. 15, No. 3 (March 1941), 
pp. 5-6. 

Steet Workers OrGANIzING Commitrer. Industrial 
Training; Apprentice, Vocational and Industrial Training 
in Relation to the National Defense Program. Pittsburgh: 
Steel Workers Organizing Committee, no date, 18 pp. 
(Publication No. 4.) 


Suter, Ray M. Experience Rating in Ohio. New York, 
Chicago, etc.: Commerce Clearing House, 1941. 19 pp. 


A report prepared by the chief of the benefits depart- 
ment of the Ohio Bureau of Unemployment Compensation 


107 








for H. C. Atkinson, Administrator of the Bureau. Con- 
siders employment security objectives and the Ohio ex- 
perience-rating and benefit plan. 


TENNESSEE. DePraARTMENT OF LasBor. DIVISION OF 
UNEMPLOYMENT CoMPENSATION. The Status of the 
Tennessee Unemployment Trust Fund and Statistical 
Summary of Operations of the Tennessee Unemploy- 
ment Compensation Division, 1937-1939. Prepared by 
E. J. Eberling and Joseph A. Frank. Nashville, Feb- 
ruary 1940. 48 pp. Processed. 


Urau. INDUSTRIAL COMMISSION. DEPARTMENT OF 
PLACEMENT AND UNEMPLOYMENT INSURANCE. Per- 
sonnel Standards Issued October 1, 1940. 
Salt Lake City, 1940. 31 pp. 


VeRMONT. UNEMPLOYMENT COMPENSATION COMMISSION. 
The Adequacy of the Present Duration of Benefit 
Payments. Prepared by Division of Research and 
Statistics. Place not given, January 1941. 26 pp. 
Processed. 


Wacenet, R. G. “Role of California Employment De- 
partment in the Defense Program.’”’ Journal of State 
and Local Government Employees, Madison, Wis., Vol. 
5, No. 3 (March 1941), pp. 3-4. 


WASHINGTON. UNEMPLOYMENT COMPENSATION DivIsIon. 
Merit Rating Report. Place not given, January 20, 
1941. 42pp. Processed. 


Recommends, on the basis of Washington State indus- 
trial data, that no experience-rating plan be adopted at 
present. 


Waaner, Ropert F. “Plan Now For Full Employment 
in Post-Emergency Period.”’ American Labor Legis- 
lation Review, New York, Vol. 31, No. 1 (March 1941), 
pp. 7-8. 


A brief statement by Senator Wagner explaining his 
proposal (S. J. Res. 16) for establishing a post-emergency 
economic advisory commission. 


Wessink, Paci. “Unemployment in the United States, 
1930—40."" American Economic Review, Menasha, Wis., 
Vol. 30, No. 5 (February 1941), pp. 248-272. (Papers 
and Proceedings of the 53d Annual Meeting of the 
American Economic Association, 1940.) 


Includes discussion and evaluation of public measures 
for unemployment relief. 


PUBLIC WELFARE AND RELIEF 


Best, Harry. “Next Steps for the Blind.”’ Suryey Mid- 
monthly, New York, Vol. 77, No. 3 (March 1941), 
pp. 82-83. 


Suggestions for programs to supplement the present 
assistance grants to blind persons. 


Burns, ArtHur E., and Kerr, Peyton. “Recent 
Changes in Work-Relief Wage Policy.’’ American 
Economic Review, Menasha, Wis., Vol. 31, No. 1 (March 
1941), pp. 56-66. 


108 


CHARITABLE Fue. Society, PRovIDENCE. 
January 10, 1941. Providence, 1941. 


Annual Report 
3 pp. 


Cuarnow, Joun. Topics for Research Concerning Public 
Assistance Programs. Washington: Committee on Social] 
Security, Social Science Research Council, February 
1941. 72pp. Processed. (Pamphlet Series, No. 6.) 
Fourteen topical groupings of research questions on the 

three types of public assistance under the Social Security 

Act. Previous issues in this series include Suggestions for 

Research on Problems of Relief and a supplementary 

Selected Bibliography. 


FaMILY WELFARE ASSOCIATION OF AMERICA. The Skills 
of the Beginning Case Worker, as Evaluated by the School, 
the Agency, and the Worker. New York: Family Welfare 
Association of America, 1941. 30 pp. 

Contains the following papers, presented at the 1940 
National Conference of Social Work: A Study of the Case 
Work Performances of Graduates as a Measure of the 
Effectiveness of Professional Training, by Florence Hollis; 
What the Agency Expects of the First-Year Worker, 
by Lucia B. Clow; What the Case Worker Expects From 
His Professional Education and From the Agency Program 
on His First Job, by a Study Committee of First-Year 
Workers. 


Huzar, Evias. Federal Unemployment Relief Policies: 
The First Decade. Princeton, 1940. 15 pp. (Re- 
printed from the Journal of Politics, Vol. 2, No. 3 (1940)), 
pp. 321-335. 


JANSEN, Wituiam. The Social Agencies and Public 
Education in New York City. New York: Teachers 
College, Columbia University, 1940. 136 pp. 

MarqQuetTTe, BLeecker. “Rents and Relief. Survey 
Midmonthly, New York, Vol. 77, No. 3 (March 1941), 


pp. 79-80. 

Martz, HELEN Spirz. 
Pennsylvania Social Work, Harrisburg, Vol. 7 
(January 1941), pp. 72-79. 

Pennsylvania’s attempts to coordinate the categorical 
public assistance grants to meet the needs of families and 
budget units. 


“OAA and the Almshouses in the U.8.”" Welfare Bulletin, 
Springfield, [ll., Vol. 32, Nos. 2 and 3 (February-March 
1941), pp. 14-16. 

Russett, Howarp L. “Public Assistance—How, Why, 
and What.” The Federator, Pittsburgh, Vol. 16, No. 
3 (March 1941), pp. 55-61. 

A discussion of public assistance in Pennsylvania. 

SprinGer, Gertrupe. “Miss Bailey Goes Visiting: 
Time for the Tenth Case.” Survey Midmonthly, New 
York, Vol. 77, No. 3 (March 1941), pp. 84-85. 

An informal narrative illustrating rural child-welfare 
services under the Social Security Act. 


“The Family in Public Assistance.” 
No. 3 


U. 8S. Cattpren’s Bureav. Instructions to Official State 
Agencies With Regard to Plans and Financial Reports for 
Services for Crippled Children Under the Social Security 
Act, as Amended, Fiscal Year July 1, 1940 to June 30, 


Social Security 








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ase 

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Processed. (U.S. 
Information 


Washington, 1940. 
Bureau, Crippled 


32 pp. 


1941. 
Children 


Children’s 
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Pusiic AFFAIRS AND 
County’s Interest in State 
Detroit Bureau of Govern- 
48 pp. Processed. 


WarYNE UNIVERSITY. SCHOOL OF 
SoctaL Work. Wayne 
Grants-in-Aid. Detroit: 
mental Research, Inc., 1940. 
“Papers presented at a conference held May 17, 1940, 

; sponsored by the School of Public Affairs and Social 

Work of Wayne University and the Detroit Bureau of 

Governmental Research.” 


ZIMMERMAN, Epna. ‘The Challenge of the White House 
Conference.”’ Welfare Bulletin, Springfield, Ill., Vol. 
32, Nos. 2 and 3 (February-March 1941), pp. 3-6. 


A survey of child-welfare services in Illinois. 


HEALTH AND MEDICAL CARE 


America Organizes Medicine. New 


Harper, 1941. 335 pp. 


Davis, MicuagBi M. 
York and London: 


Bulletin, April 1941 


O 


A review of the medical-care problem and its recent 
development in the United States, including general 
economic aspects, modern conditions of practice, existing 
and proposed types of health insurance, and legislative 
and research activities. The author emphasizes the wide- 
spread degree of medical organization as developed in 
agencies, methods of service, and methods of payment. 
The concluding section contains recommendations on 
financing medical care, organization of metropolitan and 
rural services, Federal and State policies, and health and 


defense. A bibliography is included. 


“Voluntary Health Insurance.” 


GOLDMANN, FRANz. 
New York, Vol. 77, No. 3 (March 


Survey Midmonthly, 
1941), pp. 80-82. 


Kratz, Jonun A. “Vocational Rehabilitation in the 
United States.” School Life, Washington, Vol. 26, No. 
5 (February 1941), pp. 144-145 ff. 


“Municipal Doctors in Manitoba,” by J. K. L. Canadian 
Welfare, Ottawa, Vol. 16, No. 8 (Feb. 15, 1941), pp. 
40-41. 


109