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A1229 x^^es\ern Uf"ii^S
June 20, 1940 /V
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APR 14 1941
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S U M M A R Y
Effects of the 18-ivIonths Provision (Section 16(b))
"2: of the 1939 Relief Act £V* H '
By September 1, 1939,when the requirement became fully effective,
approximately 783,000 certified project workers had been dismissed from WPA
in accordance with Section 16 (b) of the 1939 Relief Act, requiring termi¬
nation after 18 months of continuous WPA employment. To determine the
economic, status of the dismissed workers and their families, the WPA Divi¬
sion of Research conducted a survey in 23 large and representative cities,
overing more than 138,000 of the dismissed project employees. The separated
rkers were interviewed in September and November 1939 and again in Febru-
y 1940. .
The survey showed that an increasing proportion were again becom¬
ing dependent upon public assistance. By February 1, 5 to 7 months a.fter
dismissal, 54.1 percent of the dismissed workers had been reassigned to
WPA; and an additional 11.6 percent were receiving direct relief. The
proportion with private employment at the time of the February interview
was 12.7 percent; this proportion had not increased since November.
Almost one-half of these workers with private jobs were earning less
than their former WFA wage. Those without WPA or private jobs and with¬
out relief constituted about one-fifth of all the separated workers.
Their average weekly family income was $5.85; almost one-third of them
had no income for the two weeks prior to the February interview.
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The age of the separated workers proved a handicap in finding
work. The average age of those with private employment was 36.3 years;
as compared with an average age of 43.3 years for those unemployed when
interviewed. Of workers 45 years of age and older, considerably less
than one-tenth were employed when interviewed in February, compared to
nearly one-fifth of those who were under 30 years of age.
FEDERAL WORKS AGENCY
Work Projects Administration
Division of Research
A1229
June 20, 1940
Effects of the 18-Months Provision (Section 16(b))
of the 1939 Relief Act
Prom July 1, 1939 to February 1, 1940, 1,089,000 certified
project v/orkers 'v&re dropped from their WPA jobs in accordance with
Section 16 (b) of the 1939 Relief Act, which requires dismissal after
18 months continuous V/PA employment. Of these, 783,000 were dismissed
before September 1, 1939, at which time this provision of the Act be¬
came fully effective. An additional 306,000 were released between
September 1 and February 1, or, on the average, about 61,000 workers
per month. The latest figures show that less than 40,000 per month
are now being dismissed because of this rule.
In some areas the July and August dismissals amounted to
40 percent of all those employed on July 1. For the country as a
whole the oroportion was nearly one-third. This high turnover in
the working load resulted in operating difficulties. State admin¬
istrators have reported that the immediate effect was an increase
in administrative costs and a reduction in project efficiency. In
some areas the loss of skilled key personnel caused the suspension
of some types of projects and badly hampered the operation of others.
Most of these difficulties of operation have since been overcome.
In the period since September 1 a very large proportion of
the workers laid off for this reason in July and August have been re¬
ferred by local agencies to WPA for recertification and reassignment.
Rec.ertification proceeded slowly in some areas owing to difficulties
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in. handling the large numbers reapplying and reassignment was for some
time delayed by the fact that the decrease in WPA appropriations necessi¬
tated reductions in employment quotas at the time these layoffs were made.
During the winter, however, as quotas were revised upward, the number re¬
assigned rose rapidly. Figures from representative areas indicate that
by March 1, 1940, 77.3 percent of all those dismissed during July and
August had been recertified for WPA employment, and 57.8 percent had
been reassigned to WPA projects.
To ascertain the effect upon the economic situation of the
workers dismissed in July and August, the WPA Division of Research con¬
ducted surveys in 23 large and representative cities. The ?/orkers were
first interviewed about three weeks after the layoff; those not reassigned
to WPA within 60 to 90 days were again interviewed in November; and those
still not reassigned 6 to 7 months after sepa.ration were reintervie7/ed in
February 1940. This survey covered more than 138,000 workers, or nearly
one-fifth of all those separated in July and August for this reason. The
data obtained in all three interviews are summarized below.
Proportion Currently Employed
Three weeks after layoff, 7.6 percent xvere employed in private
industry, and less than half of these were earning as much as their former
WPA wage. At that time, almost half of all those laid off reported no
cash income for the two weeks prior to interview; and 90 percent received
less total income than their previous WPA wage. Three weeks after dismissal
one-fifth of those dismissed had been granted direct relief.
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Each, of the two subsequent interviews, conducted in November and
February, showed that the same proportion, 12.7 percent, of these separated
workers had private jobs. In none of the 23 cities covered by the survey
did the proportion found to be employed at either interview rise above
one-sixth of those separated (tables 1 and 2), By February nearly two-
thirds of those separated were again dependent either on WrA or on local
relief.
The workers interviewed had made persistent efforts to find jobs,
but in the vast majority of instances no work was available. When 8 to
10 million persons are seeking work, the employers have their nick of
workers. The principle of "last fired, first hired" usually applies;
hence the most recent unemployed are the first to get jobs.
Younger Workers More Successful in Finding Private Jobs
The age of the dismissed workers proved a handicap in seeking
I/Ork. Employment opportunities were scarcer for the older workers than for
the younger. Those found to be employed when interviewed in February av¬
eraged 36.3 years old, or seven years younger than those who were unemployed
(43.3 years) (table 3). Of the workers 45 years of age or older, 7.4 percent
had private jobs when interviewed in February, whereas of those who were
under 30 years of age, 18.9 percent were employed (table 3).
Character of the Jobs
Both the November and February interviews showed that almost one-
half of those with orivate jobs were earning less than their former TYPA
oroject wage. Most of those who were earning a,s much as or more than their
A1229
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former WPA wage would, have been included in the normal WPA turnover to
private employment since large numbers of '7PA workers leave voluntarily
each month to accept private jobs at wages permitting a minimum standard
of living (table 4).
Weekly earnings of those employed in February averaged $17.62;
more than one-sixth were earning less than $10.00 a week. This represents
very little change from the situation in November, when the average wage
was $17.22 and more than one-fifth were earning a wage of less than $10.00
(table 4).
Those Dependent Upon Public Assistance
Since they were unable to find jobs of any kind, most of the dis¬
missed workers again sought public aid, either by attempting to get back
on ':7PA or trying to obtain local direct relief. Inadequate local relief
in many areas and reduced WPA quotas prevented many from obtaining public
assistance. In November, 26.7 percent had been reassigned to WPA and an
additional 28,4 percent were receiving local relief (table l).
Thus, 55.1 percent were again dependent on public assistance
within a few months after layoff. Others, particularly in areas of in¬
adequate local relief, were receiving Federal surplus commodities and
were awaiting opportunity for assignment to WPA.
As WPA employment quotas were increased to meet winter needs
many cases on relief were assigned to WPA. By February 1, 1940, consider¬
ably more than one-half of the dismissed workers (54.1 percent) had been
reassigned to WPA (table 2), and by March 1, as indicated earlier, almost
three-fifths had been reassigned^ The proportion on direct relief drooped
A1329
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accordingly from 23.4 percent in November to 11.6 percent in February
(tables 1 and 2)- All told, by February 1, almost two-thirds of all
those dismissed in July and August were again on 77PA or on direct re¬
lief. More than tnree-fourths of the workers were dependent on public
aid in 11 of the 23 cities, and in New Haven, Milwaukee and Denver,
four-fifths or more of those dismissed were receiving public assistance.
Those Without Private or W?A Jobs and Not on Local Relief Rolls
It has sometimes been assumed that those separated workers who
have not been reassigned to TP A or who are not receiving relief are self-
supporting. The survey shows, however, that in November over 70 percent,
and in February mo re than 60 percent, of those without any oublic aid
(except surplus commodities) were unemployed. '.Then interviewed in
February, the average weekly income of these workers without jobs and
without public assistance was $5.85 from all sources (table 5). In «11
cities the average was less than $4.00 and in 4 cities it was less than
$3.00 a week.
In February, this group who were jobless and without public aid
included more than one-fifth of all those separated (table 2). Three out
of ten of these families received no income during the two weeks before
they were interviewed (table 5). The others were dependent upon the small
earnings from private, CCC or NYA jobs of secondary members of the family,
on categorical aid granted to other family members, on aid from friends
and relatives, or on surplus commodities.
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Effects on Living Levels
Responsibility for support of many of the families with no in¬
come fell on other members of the community—merchants and landlords wno
extended credit, friends and relatives who shared incomes, homes, and
food. Lowered standards of living were reflected in the sale of personal
property, doubling up, and "breaking up of family groups.
Children of IPA workers laid off under the 13-months provision
were frequently kept out of school for lack of shoes, clothes, books or
adequate food. Though no precise information is available concerning
the effects of the layoffs on health, reports indicate that in many in¬
stances when illnesses occurred daring the separation period medical
care was not available because of lack of funds. In other instances
medical care was secured at the expense of other necessary budget items.
Comparison with Previous Separations Surveys
The findings of the present survey are consistent with those
of separations surveys conducted in 1937 and earlier in 1939 during
periods of sharp reduction in project employment. These studies showed
that the workers who were separated because of administrative curtail¬
ment fared markedly worse than those who left of their own accord. In
each of the years, 1937 and 1339, a considerably smaller proportion of
those who were dropped because of employment reductions found private
employment than of those who left voluntarily. Those who failed
to find private employment, the great bulk of those forced off the
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Program, returned, to relief or were dependent unon a variety of minor
sources of income. Average family incomes of tnose unable to find em¬
ployment were sharoly lower than the amounts the separated workers had
earned while working at 7PA project jobs.
Current reports from the field indicate that workers who are
being dropped from WPA because of the necessity of keeping employment
within the limits necessitated by present aporopriations face a situa¬
tion greatly similar to that revealed by these surveys. Job onportunities
are available for relatively few of them; relief is difficult to obtain,
particularly for single persons; and in a large proportion of cases
families are dependent on surplus foods, small earnings of secondary
members, aid from friends and relatives or credit extended by grocers
and other tradesmen.
F3DERAL VfOHSS AG5SNCY
Work Projects Administration
Division of Research
L229
November Interview
Table 1.—Proportion of Workers Separated, in July and August in Accordance with
the 18-1'onths Provision, Who by November were Employed in Private
Industry, He-assigned, to WPA, Receiving Direct Relief,
or were Without Jobs or Public Assistance -
Twenty-three Cities
Total workers Without private
separated Currently Re-as- Receiving or WPA jobs and
23 cities employed l/ signed relief 1/ not on direct
July and August to WPA relief
Number Percent Percent Percent Percent Percent
Total
138,0742/
100.0
12.7
26.7
28.4
32.2
egion I
Boston
5,480
100.0
8.7
25.9
22.0
43.4
New Haven
1,332
100.0
11.9
60.4
11.1
16.6
legion II
Buffalo
2,739
100.0
13.2
63.3
20.0
New York City
58,698
100.0
13.3
31. 1
23 • 6
32.0
Philadelphia
6,074
100.0
9.2
26.3
46.2
18.3
Region III
Richmond
961
100.0
9.6
47.8
15.6
27.0
lasnington, D.C
. 3,188
100.0
10.5
26.1
1.8
61.6
Region IV
Cincinnati
3,619
100.0
15.5
16.9
38.2
29.4-
Cleveland
7,023
100.0
16.0
38.1
25.2
20.7
Detroit
8,962
100.0
17.0
16.5
46.4
20.1
Indianapolis
3,497
100.0
13.5
19.0
48.5
19.0
St. Louis
7,612
100.0
10,2
27.3
1.7
60.8
Region V
Birmingham
2,287
100.0
15.7
6.6
0.1
77.6
Charleston
1,006
100.0
14.4-
26.8
0
53.8
Jacksonville
1,118
100.0
6.7
25.9
0.2
67.2
Louisville
1,541
100.0
13.2
19.2
0.9
66.7
Nashville
1,028
100.0
14.8
12.5
0.7
72.0
Region VI
Port North
983
100.0
11.1
14.9
25.9
43.1
Region VII
Milwaukee
6,803
100.0
8.9
37.1
42.1
11.9
Omaha
2,646
100.0
13.2
18.3
9.4
59.1
Region VIII
Denver
2,074
100.0 .
3.9
58.1
17.7
15.3
Region IX
Los Angeles
6,939
100.0
12.3
*
69.6
18.1
Seattle
1,416
100.0
11.0
19.5
47.3
22.2
y The Currently Employed include a small proportion (0.8 percent) who were members
of families receiving direct relief. These workers were excluded from the column
"Receiving Relief."
2/ In 11 cities all workers separated were interviewed; in each of the remaining
cities a random sample, including at least one-third of the separated workers,
were interviewed. The total number of workers interviewed was 69,001. All
percentages are based on cases actually interviewed.
* Less than 0.05 percent.
^29
February Interview
.fable 2.—Proportion of Workers Separated in July and August in Accordance with the
18-Months Provision, Tno by February 1, 1940 were Smoloyed in Private
Industry, Re-assigned to WPA, Receiving Direct Relief, or Were
without Jobs or Public Assistance - Twenty-three Cities
(Preliminary)
Total
workers
Vithout urivate
separated
Currently
Re-as-
Receiving
or 77PA jobs and
23 cities
enroloyed l/ signed
relief l/
not on direct
July and August
to 77PA
relief
Number
Percent
Percent
Percent
Percent
Percent
Total
138,0742/
100.0
12.7
54.1
11.6
21.6
Region I
Boston
6,480
100.0
7.9
71.2
5.4
15.5
New Haven
1,332
100.0
9.3
76.9
3.1
10.7
Region II
Buffalo
2,739
100.0
16.5
33.8
32.4
17.3
New York City
58,696
100.0
14.3
43.6
9.1
28.0
Philadelphia
6,074
100.0
12.5
36.6
29.9
21.0
Region III
Richmond
961
100.0
7.1
74.6
4.5
13.8
fashington, D.C.
3,188
100.0
7.9
76.5
1.8
13.8
Region IV
Cincinnati
3,619
100.0
15.1
46.0
20.3
13.6
Cleveland
7,023
100.0
12.7
70.2
6.2
10.9
Detroit
8,962
100.0
15.3
65.2
7.0
12.0
Indianapolis
3,497
100.0
10.8
49.1
28.4
11.7
St. Louis
7,612
100.0
13.9
50.3
6.1
29.7
Region V
Birmingham
2,287
100.0
10.9
41.7
0.1
47.3
Charleston
1,006
100.0
11.8
71.1
0
17.1
Jacksonville
1,113
100.0
5.9
73.5
0
15.6
Louisville
1,541
100.0
11.3
74.8
2.7
11.2
Nashville
1,028
100.0
9.1
57.2
12.7
21.0
Region VI
Fort Torth
983
100.0
7.4
60.1
8.1
24.4
Region VII
Milwaukee
6,803
100.0
7.5
65.5
19.0
8.0
Omaha
2,646
100.0
10.2
60.4
6.0
23.4
Region VIII
Denver
2,074
100.0
7.3
30.7
1.6
10.4
Region IX
Los Angeles
6,989
100.0
11.7
39.1
33.5
15.7
Seattle
1,416
100.0
11.2
61.6
14.6
12.6
yThe Currently Employed include a small proportion (0.4 percent) who were members
of families receiving direct relief. These workers were excluded from the column
"Receiving Relief."
2/ In 11 cities all workers separated were interviewed; in each of the remaining
cities a random sample, including at least one-third of the separated workers,
were interviewed. The total number of workers interviewed was 69,001. All
percentages are based on cases actually interviewed.
Table 3.—Proportion of Separated ?/orkers in Each
Age Group Employed in Private Job,
At Time of Interview
In February 1940
Age
group
Percent employed
in private job
All age groups
12.7 percent
18 - 29 years
18.9 percent
30 - 44 years
14.3 -percent
45 years and over
7.4 percent
Average l/ age
Employed at interview
Unemployed at interview
36.3 years
43.3 years
!_/ The average used is the median.
.229
able 4.—-Weekly Earnings from Private Job of Workers Separated in Accordance with
the lS-Months Provision Who in November 1939, and February 1940,
Were Employed in Private Industry - Twenty-three Cities 1/
Percent with week-
City and Employed in Average weekly Percent lower ly earnings from
WPA region private job earnings 2/ than WPA private jobs of
project wage less than $10
Nov. Feb. Nov. Feb. Nov. Feb. Nov. Feb.
Total
17,620
17,551
$17.22
$17.62
47.1
46.1
21.2
17.9
Region I
Boston
564
512
16.34
17.24
33.3
47.5
7.7
11.4
Nev? Haven
158
124
16.90
17.40
44.7
38.8
17.0
17.3
Region II
Buffalo
443
453
22.52
22.01
24.2
27.8
7.4
9.9
New York City
7,808
8,397
16.73
16.87
58.2
57.9
20.1
18.6
Philadelphia
560
761
12.76
15.00
66.6
60.8
31.6
24.8
Region III
Richmond
92
68
12.19
13.33
51.3
45.1
31.5
32.6
Washington,D.C.
335
252
16.10
17.70
33.1
21.1
25.0
14.4
Region IV
Cincinnati
561
546
16.78
17.23
45.7
43.5
21.0
17,4
Cleveland
1,126
894
21.29
21.59
28.2
23.4
14.7
8.5
Detroit
1,523
1,417
28,93
28.49
17.6
17.3
9.0
7.9
Indianapolis
472
383
15.15
16.79
51.0
40.5
32.7
19.7
St. Louis
781
1,054
15.00
16.03
45.5
40.5
27.6
21.5
Region V
Birmingham
359
250
8.82
11.25
61.5
51.6
52,6
45.5
Charleston
145
119
'9.79
11.39
61.8
47.1
50.7
35.6
Jacksonville
76
66
12.50
16.00
43.3
31.8
36.8
18.1
Louisville
203
175
13.36
12.99
41.2
41.5
20.6
26.6
Nashville
152
93
7.27
11.06
67.6
53.0
58.9
43.3
Region VI
Fort Worth
109
73
6.00
7.81
74,4
58.5
67.8
55.5
Region VII
Milwaukee
605
513
20.00
19.93
36.4
35.2
17.5
12.1
Omaha
349
269
14.58
15.52
51.4
50.3
31.8
24.5
Region VIII
Denver
184
152
15.42
17.23
43.3
35.8
28.0
15.7
Region IX
Los Angeles
859
822
17.14
17.25
47.9
45,9
22.9
18.8
Seattle
156
158
19.50
24.46
41.0
26.1
26.0
19.2
ly All averages and percentages are based on cases actually interviewed.
2/ The average used is the median.
A1229
Table 5.—Average Weekly Family Income in February 1940 of Workers
Without Private or WPA Jobs, and Not on Relief;
Workers Separated in Accordance with the
18~Months Provision - Twenty-three Cities !_/
Without private
Average weekly
Prooortion
City and
or WPA jobs and
family income 2/
with no
WPA region
not on relief
February
income.
Number
Dollars
Percent
Total
29.788
$5.85
31.2
Region I
Boston
1,005
7.65
23.4
New Haven
142
8.98
33.1
Region II
Buffalo
473
5.30
41.0
New York City
16,417
7.50
35.7
Philadelphia
1,276
9.55
19.0
Region III
Richmond
133
3.70
35.2
Washington, B.C.
440
3.53
22.8
Region IV
Cincinnati
673
4.57
25.4
Cleveland
767
6.54
37.0
Detroit
1,077
7.45
33.7
Indianapolis
417
3.19
27.7
St. Louis
2,261
2.48
32.7
Region V
Birmingham
1,081
3.17
3.9
Charleston
172
2.68
28.9
Jacksonville
174
2.36
24.6
Louisville
172
3.46
30.8
Nashville
216
3.10
18.8
Region VI
Fort Worth
240
3.93
10.6
Region VII
Milwaukee
541
8.39
33.9
Omaha
620
2.39
28.9
Region VIII
Denver
216
9.08
28.3
Region IX
Los Angeles
1,096
9.01
27.0
Seattle
179
9.00
22.7
1/ Income information
was secured for the
two-week period nrior
to interview
in February 1940.
All percentages and
averages are based on
cases
actually interviewed.
2/ The average used is the median.