Evening star., 1938-11-29

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DISCUSSES JOB INSURANCE.
last night on the National Radi
1T seemed advisable not to include
groups where administration would
be particularly difficult. So in gen.
eral the system, as 1t now stands.
does not apply to farm or domestic
workers, to the self-employed and
few others. That is why, in speak
ing of unemployment compensation
coverage, have repeatedly referred
to industrial and commercial wage
earners.
Another point to keep in mind is
that State laws differ as to the size
of the business concerns covered.
The Federal provisions relating to
unemployment compensation apply
only to employers who have eight or
more employees. About half Of the
State laws similarly cover employees
of eight or more; but the others in
clude smaller businesses, too: Ten
State laws apply to all employers
and thus give maximum coverage,
the remaining State laws set the
number of employees of covered es-
tablishments at either three, four, or
five. In addition, two States will
extend their coverage beginning in
Massachusetts to employers
of four or more and Wisconsin to
those employing six or more.
So much for coverage. Now let's
take an inside view of the program
for moment; let's see how it works
for the millions Of wage earners al
ready covered by these State laws.
OF course, what I have to say will
be only in general terms, because
State laws differ in detail. But the
main lines Of the program every
where follow pretty much the same
pattern.
You've probably noticed that I've
spoken of benefits as paid only in
case Of involuntary unemployment.
And you may have wondered what
that means. Well, it's simply brief
way of describing the situation Of
an able-bodied man or woman. cap
able of working, who wants to work,
but for whom no work is available.
The State job-insurance programs
are SO set up that the administrative
agency can determine these facts,
as part of its routine process Of tax
ing benefit claims and making pay
ments. In general, this is how the
claim and payment procedure works:
AS soon as an insured worker is laid
off or loses his job, he goes to the
nearest State employment service
office. There he makes application
for both work and unemployment
compensation benefits. If there is
time when he makes his application,
placement officer interviews him
about his previous experience and
training, in order to have informa-
ton as to what kind of work the
applicant can do efficiently. If such
a job is open, he will Immediately be
referred to it. And If he gets the job,
he will not, of course, receive out
of-work benefits.
Re-employment Problem.
If the employment ONCE thus re-
fers the worker to q suitable job he
is supposed to take it. But this does
not mean that the worker is obliged
to accept any job. It must be job
that the worker can reasonably be
expected to accept, considering his
training, experience, and the other
opportunities for employment in his
community. Furthermore, the So
cial Security Act definitely protects
the worker by stipulating that no
State may deny man benefits for
refusing a fob where there is labor
dispute; where the pay, or hours, or
working conditions are substantially
below the prevailing wage for such
work in his community: or where he
would be required to join company
union or resign or refrain from join
ing a bona flde labor organization.
But If suitable work, as defined by
Federal and State law, is available,
the worker must take it, or be denied
benefits From this discussion, you
will see that it is necessary for each
State to provide adequate and eff
cient employment services as an in
tegral part Of its job insurance sys-
tenn. The objective is, if possible, to
provide a job: and then, If no job
can be found, to pay out-of-work
benefits.
And right here let me say en-
phatically that the working people
Of this country want work, first, last,
and all the time Any doubts as to
this that may have been felt before
the advent of unemployment COM
pensation have been proved COM
pletely unwarranted. Unemployed
wage earners accept benefits, be-
cause they are entitled to them. But
experience has proved that they
positively do not prefer unemploy-
ment benefits to a Job and a pay
check.
Because of their close tie-up, un-
employment compensation has had q
tremendous effect upon public en-
Dloyment services in this country.
As you probably know, many of the
States had employment services be-
fore the coming of unemployment
compensation. But though these Of
f1ces rendered free service to both
employers and workers, they were
never used as effectively as they
might have been by either group.
With the development of unemploy-
ment compensation. the picture
changed. The fact that all insured
workers who lose their jobs and who
seek work or benefits come to the
employment offices means that more
workers register here than ever be-
fore. Skilled workers, professional
workers-all kinds of people who
never before used the employment
service-come to these onices now
In every State where benefits have
become payable, 1t has therefore
been necessary to increase the num-
Der Of State employment omces, to
take on and train new personnel,
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