Evening star., 1952-01-13
U. 5. Plans 10 Shift
Defense Contracts 10
Cut Unemployment

WI OHSlitStVYinV
The Government is making
plans to shift as many defense
production contracts as possible
to areas where civilian production
cutbacks are causing serious un-
employment.
Defense Production Admins
traitor Many Fleischmann an
nounced this yesterday. He said
the first area in which efforts
would be made to relieve unem-
ployment will be Detroit.
AS the result of cutbacks in the
automobile industry unemploy-
ment in the Detroit area has been
estimated at 125.ooo and may
reach 145.000 by June. affecting
one out Of every 10 workers.
Industry estimates put the pros
pective total unemployed higher.
Wilson Sets Up Task Force.
Mr.. Fleischmann said Detroit
would get new contracts even
where some additional costs may
be involved.
Defense Mobilizer Charles E.
Wilson is setting up a task force
to handle the problem of distressed
areas. It will include officials from
nine agencies.
The shortage Of structural steel
is expected to cause serious unem-
ployment in the building trades
and in industries-railroad car
building. for example-where that
type Of steel is essential.
MIR. Fleischmann last week cited
New York and Baltimore as cities
hard hit by the reduction in COM
mercial construction. With addi-
tional reductions in home e-building
the National Association of Home
Builders estimated at least 400,-
600 building trades workers would
be unemployed.
An AFL spokesman said this
figure was about right" He
added there are Is, 900 unemployed
in the building trades in New York,
and that the number may rise to
$4,000.
Glen r. Preller, president of the
Washington Building and Con-
struction Trades Council, AFL,
warned that serious unemploy-
ment in the construction trades
may be ahead here.
In New York unemployment was
described In report to the State
Industrial Commissioner as rising
90 fast that the State could be ex-
pected to have a fourth Of the
Nations jobless by July !.
A drop in unemployment was
predicted in the second half of the
year because Of expected increased
defense production upstate and
the expectation also that defense
wages paid in other States would
be reflected by q revival Of con-
sumer industries in the New York
City area.
Costume Jewelry Hit.
Another industry hit nv c1It.'
backs has been the costume
jewelry industry. This has been
felt seriously at Providence. r. L.
the center of this industry. Cos
tune jewelry was cut back earlier
and more steeply than some other
products.
In the auto industry, the De-
fense Manpower Administration
report, just issued but applying to
November conditions, said Detroit,
Flint and Lansing were the cities
hardest hit.
It said layoffs in the automobile
industry = in Buffalo, Los Angeles
and Milwaukee were more that off,
set by expansion in other employ
ment. In Fort Wayne and Toledo
1t said the industry's employment
actually increased as the result Of
defense orders. In Indianapolis,
another auto production center,
there was a labor shortage.
Certain industries not par
ticularly affected by the defense
program likewise are depressed.
This applies to. the needle trades
in New York and other centers,
and to textile production centers
IN New ENGLAND and fha Coi,f1o