H.—llA.

UNEMPLOYMENT POSITION. Since the presentation of the previous report showing registrations of unemployed and numbers of men who are a charge oil the Employment Promotion Fund, there has been a very substantial improvement in the unemployment position. On the 28th August, 1937, the total number of male persons who were wholly or partly dependent on the Fund was 37,316. In August, 1936, the number was 50,847, and in August, 1935, it was 60,806. To show exactly what improvement has taken place in the unemployment position during the past two years, it is necessary to have regard, not only to the reduction in the numbers of persons who are a charge on the Employment Promotion Fund, but also to consider the increase in the numbers of persons who are employed in commerce and industry. The above-quoted figures of registered unemployed as at August, 1935 (when the total number of persons who were a charge on the Fund was 60,806), and as at August, 1937 (when the number was 37,316), disclose a reduction of 23,490, or a reduction of approximately 40 per cent. These figures represent the total number of persons who were a charge on the Fund. Omitting those persons who were engaged in subsidized employment, the reduction over the last two years is 17,422, or just over 40 per cent. An examination of the position in regard to the increased numbers engaged in commerce and industry shows that during the last two years 17,449 additional persons have been engaged in factories as compared with the position existing in 1935. In shops the increase is 10,523. Unfortunately, it is not possible to obtain complete figures of the total number of persons employed under a contract of service at any given date, but the figures available show that at least 45,228 additional persons have been employed as compared with the position existing in 1935. This figure, of course, does not include persons employed in other sections of industry. Briefly summarized, the unemployment figures in the month of August over the past six years appear as follows :— 1932 73,650 1935 60,806 1933 .. .. .. 78.627 1936 .. .. 50,847 1934 .. .. .. 66,516 1937 .. .. .. 37,316 Details of registrations are contained in the Appendices in Tables VII and VIII. Coincident with the publication of the above figures it is convenient to refer to the national increase in wages and other income as revealed by the revenue from the employment charge (or unemployment-tax as it wa,s previously known). The following summaries are a pointed commentary upon the improvement in the unemployment position.

Income as shown by the Employment Charge collected.

Increase in Total Income represented by Wages-tax and Tax on other Income.

ANALYSIS OF UNEMPLOYMENT REGISTRATIONS. In the early years of the depression it was generally believed that unemployment would prove merely a temporary phase and would disappear with the passing of the depression. In common with the experience of other countries in this matter, the expectation proved unfounded. Examination of the problem in older countries and in the Dominion shows that despite prosperity a certain amount of unemployment always exists. A certain measure of unemployment appears inevitable, and its solution is not a single problem arising from merely any one cause. It is not possible in any country

4

Year. Wages. Income. Total. . - - — £ £ £ 1931 - 32 •• •• * 22,837,950 22,837,950 1932-33 .. .. .. .. .. 54,586,800 22,280,460 76,867,260 1933-34 .. .. .. .. .. j 57,332,460 29,072,070 86,404,530 1934-35 | 61,163,550 28,324,350 89,487,900 1935-36 •• •• ■■ ■■ 66,209,280 37,094,910 103,304,190 l936 " 37 •• ■■ •• •• 78,309,960 f49,500,000 127,809,960 * Wages-tax not collected. -j- Based on estimate of collections of tax on income for the year 1937-38.

Wages. Income. Total. Year. j ; •_ Am0Unt | Cent. Amount - | Cent. Amount ' j Cent. £ ! £ Increase of 1933-34 over 1932-33 .. 2,74-5,660 5-03 6,791,610 30-48 9,537,270 12-41 Increase of 1934-35 over 1933-34 .. 3,831,090 6-68 *747,720 2-57| 3,083,370 3-57 Increase of 1935-36 over 1934-35 .. 5,045,730 8-25 8,770,560 30-96 13,816,290 15-44 Increase of 1936-37 over 1935-36 .. 12,100,680 18-28 12,405,090 33-44 24,505,770 23-72 * Decrease.