Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-12
Statistics Show Cost of Liv.
ing Has Decreased as
Wages DWindIe.
UP-T0-DATE FIGURES
ON EMPLOYMENT LACKING
New York State Records Give Fair
Indication of Conditions
There.
BY JOHN F. SINCLAIR.

Special Dispatch TO The Star.
NEW YORK, October ll-Are work.
ing employees better off now than they
were year ago? It's doubtful, despite
the drop from 94.4 In October. 1929, TO
1878 in October, 1890, shown in the
Irving Fisher Commodity Price Index.
The United States Department of
Labor issues a report, showing the
average per capita earnings of American
workers. These figures are secured by
dividing the index Of the pay roll totals
by the index Of employment
From August, 1929, to August, 1880,
the department reports a drop Of 1915
per cent in the per capita earnings
1t also shows drop of 10 per cent
IN retail prices and IA per cent in
wholesale prices.
The Labor Bureau of New York uses
the same methods of figuring and has
reached approximately the same con-
illusions
1t figured a 10 per cent drop in the
average per capita earnings in the same
period, but offered no figures on the
subject OF commodity prices.
Government Figures.
Other figures, watched by students of
this question, are those issued by the
Department Of Labor giving the aver
age full-time wor kby employees in oper-
ating establishments. These figures
cover some 10000 establishments in
the United States. In August, 1928, 90
per cent Of the employees in these estab-
lishments were enjoying full-time labor
The finding for August Of this year 10
81 per cent.
This percentage, however, is not as
accurate as the figures dealing with
the average per capita earnings, be-
cause the same 10000 establishments
were not used in both cases. This,
of course makes this particular find
ing interesting but inconclusive.
Wages and Living Costs.
One often hears the comment that
wages and salaries have dropped dur.
| ing the last year, but that the cost Of
| living, as shown in commodity prices,
more than makes up for the drop, and,
therefore, those who are employed are
better of now than ever. In a word
that the dollar viii purchase more now
than 1t did year ago. The figures
| referred to above show that while en-
ployed labor Is no worse of than 1t
was year ago. the dropping price level
has just about kept up with wage re-
duction, plus the part-time labor fac
tor.
An analysis of the declines recorded
in such basic commodities as wheat,
Hour, beef, pork, coffee and refined
sugar at primary markets, as compared
with the average decline in retail food
prices, shows that while these COM
modities declined anywhere from 10
per cent in sugar to AZ per cent in
coffee. Bradstreet's Retail Food Index
for the week which ended October 4,
1Q30 Sh0US q ~
per cent as compared with a year ago.
checking of these six food items
shows an average decrease of Is per
cent in retail prices. But retail food
prices with other commodities included
declined, on the general average, 1924
per cent during the last year. These
figures seem to indicate, likewise, that
even II wage scales had been MAIN
tanned at the level of one year ago, and
earner's dollar would have increased
only 1928 per cent In purchasing power,
In spite Of Is per cent drop in mar
ket prices Of wheat, flour, beef, pork
coffee and Sugar-six of the most i'm
portant food items in modern Hfe.
Estimates on Unemployment.
Many conservative economists esti-
mate that the number of unemployed
in the United States today Is at least
100000. with several more millions
working two to four days a week. Some
industries today are taking on men,
the radio industry, for example. Many
Of the couptry's largest corporations
have announced that they have not re-
duced wages. But this depends on what
Is meant. The rate per hour, or the
amount per day. may not be reduced,
but the total working hours of labor
In fVNIV cfVfa 1oe fRnA
This is what causes reduced purchas-
ing power.
It's a well known fact that some of
these industries are working their stats
on part-tirne basis, and this, of
course, naturally reduces the total
wages paid during that period.
The figures quoted are not conclu-
sive for the whole country, but they in
dictate very decided drop in wage
earners' income through unemploy-
ment and through part-time work.
From all the information available,
I should assume that the total salary
and wage decreases in the United States
are from 20 to 80 per cent under those
existing one year ago. Thus the drop
of 1929 per cent in retail food prices
Is not very comforting to men and
women out Of work or to those who are
working three days a week and suffer-
ing thereby loss of 100 to so per cent
in income.
New York Figures.
The figures in New York State,
thanks largely to the efficiency of Miss
Frances Perkins, industrial commission
er, are as complete as the figures of any
State. The increase of about per cent
in factory employment in New York
from the middle of August to the mid
die of September Is the first gain re-
ported since october of last year. 1t was
In the field of women's headwear and
women's clothing firms that the largest
gain was reported. These results are
based on figures from about LOO fac
tories which report regularly to the
New York State Department Of Labor.
But any one who has had the pa
thence to read thus far in this article
will agree that the most crying need
today Is comprehensive up-to-date labor
statistics dealing with employment and
wages. It's almost impossible to draw
conclusions from the present half
baked data which are available.
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