Evening star., 1953-03-08
Donohue Sees
TemporarYFa Fall
In Employment
Urges 81 Increase
To SIS in Average
Benefit Payments

DeneTIC F0ymentS
Washington is in temporary
employment slump, in the
opinion Of Commissioner F.
Joseph Donohue.
He told a Station WWDC radio
audience last night that unem-
ployment benefit payments have
jumped from $4,000 a week
three months ago to $4,000
weekly now.
Urges Benefit Increase.
He recommended an increase
in the amount of benefits. The
average check in 1852 was $18.06.
Mr.. Donohue said this should be
Increased to $25.
Mr.. Donohue also is chairman
of the District Unemployment
Compensation Board. In its
annual report last week, this
board recommended an increase
in benefits, but did not specify
what the increase should be.
The present maximum benefit
is $40 a week. There have been
suggestions that the maximum
should be raised to $50.
Mr.. Donohue said the present
small payments create hard
ships.
The Commissioner said the
current increase in unemploy-
ment compensation claims is
partly due to seasonal unemploy-
ment in the building trades and
service organizations. He said
there also has developed a fear
psychology due to the new ad-
ministration's employment poll
cies and Federal employees
uncertainties over their jobs.
Mr.. Donohue said his appear
ance on the radio program may
have been his last as Commis-
sioner. He has resigned and ap-
pointment of his successor is
expected almost momentarily.
Sees Rise Temporarily.
He made it clear he does not
consider the jump in the num-
ber of unemployed as perma-
nent. In the long run, he said,
the number of unemployed here
will remain pretty much the
same. People are just not spend
ing as much as they did, he eX-
planned. until they see how Fed
eral Government employment
policies affect them.
The Unemployment Compen-
Sation Boards recommendation
for increased benefits said only
that they should be brought in
line with current wages, higher
cost of living and the level OF
payments made by most Of the
States.
While the maximum in the
District now is $40, it actually
is less, for it may not amount
to more than half the weekly
wage which had been received
by a worker in covered industry.
Government workers and house.
hold employees, for example, are
not covered. r..
While it has been suggested
that the maximum be increased
to $50, some would go higher.
Clement F. Preller, president of
the AFL Central Labor Union,
said he would recommend $35.
He also is a member of the Com
penSation Board.
Nicely Proposed Rise.
A maximum $30-a-Week pay
ment-actually $33 for an unem-
ployed worker with three or more
dependents - was proposed in
1850. It was contained in a bill
introduced by Senator Nicely,
Democrat, of West Virginia. then
chairman of the Senate District
Committee.
There was opposition, some of
it on the basis that graduated
benefits would yield the unem-
ployed worker more than half
Of his customary weekly salary.
At hearings. witnesses contended
that the man drawing compensa-
tion would be better off than
many workers in his bracket
since he would be relieved Of
withholding taxes and other ex-
penseS.
Since the $40 maximum was
set, wages have increased sub
Stantially. The average weekly
wage of District workers in COW
cred employment stood at $62.05
in 1851. It is believed to be more
now. The benefit provisions of
the local law have not been
amended since 1943. For the
country as a whole, the average
weekly wage in covered employ
ment was $4125 in 1943 and
$65.51 in 1851.
The cost of living likewise has
gone up. The budget for an
unemployed workers family of
four in Washington has been
estimated at $7423. This ap-
piled to December, 1851.
The Bureau of Employment
Security in the Labor Depart
ment has issued figures for maxi
mum weekly benefits in the 48
States, the District. Hawaii and
Alaska Initially. in 49 jurisdic-
tions, the weekly maximum was
SIS. Now. the smallest maxi
mum is $40. paid in six juris-
dictions including the District.
Thirty y-eight in the list of 81
now pay $25 or more week, and
IS pay $50 or more.
Extension of Payments.
Also involved is the duration
of the payments. In the District,
the payments may not run longer
than 20 weeks. The Nicely bill
proposed to extend this to 26
weeks. Opposition developed to
this.
According to the Bureau OF
Employment Security report. six
of the 81 Jurisdictions make pay
ments for fewer than 20 weeks,
In 16, the 20-week period ap-
plies. In 81, the period is more