Mr. WILLIAMS. I am not familiar with this.

The CHAIRMAN. I understand the Labor Department once contributed some staff to that center, but pulled out their representatives?

Mr. WILLIAMS. Mr. Chairman, I am not familiar with that situation. I am told that we did not have sufficient staff at that time but I will be glad to check into that specific question and provide an answer to you for the record.

The CHAIRMAN. Fine. Thank you, Mr. Williams.

Mr. WILLIAMS. Thank you very much, Mr. Chairman. (Mr. William's prepared statement follows:)

PREPARED STATEMENT OF DAVID O. WILLIAMS, DIRECTOR, SPECIAL REVIEW STAFF, MANPOWER ADMINISTRATION, U.S. DEPARTMENT OF LABOR

Mr. Chairman, I am pleased to have this opportunity to meet with you and discuss employment opportunities for Vietnam-era veterans. I would like to begin by describing the current nationwide employment and unemployment situation for these young veterans, and then comment briefly on the President's recent directives for additional action.

EMPLOYMENT AND UNEMPLOYMENT AMONG VIETNAM-ERA VETERANS

The Department of Labor is fully aware, as is the Committee, that our veterans are sharing in the Nation's overall increase in unemployment.

About 3.7 million Vietnam Era veterans 20 to 29 years old were in the civilian labor force in June 1971, according to the U.S. Department of Labor's Bureau of Labor Statistics. Some 3.4 million of these men held jobs, an increase of 390,000, or 13 percent, since June 1970. During the same period the number of veterans in the labor force increased by a half million. Unemployed veterans numbered 300,000 and their unemployment rate was 8.1 percent compared with 6.1 percent a year ago (See attachment A-Data not seasonally adjusted.)

Unlike earlier months this year, the unemployment rate for veterans in June was not significantly higher than the rate of 7.8 percent for nonveterans of the same age. The nonveteran unemployment rate rose in June as it did in earlier years, largely as a result of end-of-semester increases in jobseeking among students and recent graduates. The increased summer job activity, which mostly affects the nonveteran group, also raised the labor force participation rate of nonveterans closer to the rate of veterans.

Since the winter months of 1971, the unemployment rates for veterans and nonveterans have declined, but because the series are new, it is not yet possible to compute seasonal adjustment factors, which would measure how much of each month's change is due to usual seasonal patterns.

We can, however, examine the insured unemployment, where we have some firm data to indicate a trend. These data indicate that as the volume of State insured unemployment (UI) increases, so does that of unemployment compensation for veterans (UCX). Data for the UCX claimant can be compared with that for the State UI claimant to indicate the relative experience of the Vietnam-era veteran. The UCX claimant is, by definition, a recently separated ex-serviceman and, therefore, tends to be predominantly the Vietnam veteran who is in the younger age group of 20 to 29 years.

During periods of lower nationwide unemployment, ex-servicemen experienced a lower incidence of unemployment than State UI claimants as a whole. As national unemployment began to rise, ex-servicemen experienced a greater increase of unemployment than had the State UI claimants. However, workers in the younger age group generally experience a higher incidence of unemployment than workers in the over 30-year age group, particularly in periods of rising unemployment.

The substantial increase in the numbers of ex-servicemen receiving UCX benefits began shortly before January 1970 (see attachment B). The number during the first half of FY 1970, as indicated by first payments, was only 12 percent higher than that during the same period in FY 1969. The corresponding increase for State UI beneficiaries was 7 percent. However, the number of UCX beneficiaries during the first three quarters of FY 1971 (latest data available)

was 72 percent higher than the number during the same period in FY 1970. The corresponding increase for State UI beneficiaries was 36 percent.

It appears that the main reasons for the greater increase among ex-servicemen, as compared with the increase among State UI beneficiaries, may be due to the following factors. Ex-servicemen are a much younger group of claimants than the total number of State UI claimants, are relatively inexperienced in the private employment sector, have lost contacts with the private sectors during their tours of duty in the services, and are considered by some employers as new entrants. These factors could tend to result in ex-servicemen being among those last to be hired and first to be unemployed, having no seniority. Recently, the duration of unemployment benefits payments among ex-servicemen has also increased. The average duration of benefits of ex-servicemen was considerably lower than that of State UI claimants during FY's 1969 and 1970, averaging 9.3 and 9.7 weeks, respectively, for ex-servicemen compared to 11.4 and 11.1 weeks for State UI claimants. However, recent trends indicate that the average duration of benefits for ex-servicemen is approaching that for State UI claimants. For example, for the January-March 1971 quarter, the average duration of UCX benefits was 12.5 weeks and 13.1 weeks for State UI benefits.

PRESIDENTIAL DIRECTIVES AND THEIR IMPLEMENTATION

President Nixon has taken personal direction of a nationwide effort to provide employment opportunities for the returning veteran. On June 11, 1971, the President directed the Secretary of Labor to assume leadership of an intensive effort to place unemployed Vietnam-era veterans in jobs or training and to establish procedures which will provide employment for veterans as we continue phasing down the war in Vietnam.

The President directed that the following six actions be included among those which should get underway immediately:

1. Draw upon the resources of the National Alliance of Businessmen. 2. Work with the Secretary of Defense to expand substantially the Transition Program for separating servicemen in order to increase the opportunities for improving job counselling, job training, and placement.

3. Immediately augment the number of training opportunities for returning veterans and encourage veteran and employer participation.

4. Require listing of all job openings with the U.S. Employment Service by all agencies and contractors funded by the Federal Government.

5. Greatly increase the effectiveness of the U.S. Training and Employment Service in finding and opening jobs and job-training opportunities for returning veterans.

6. Provide special Labor/VA services for Vietnam-era veterans who have been drawing unemployment compensation for three months or longer. With respect to action No. 4, above, the President, on June 16, 1971, issued Executive Order No. 11598, to provide for the listing of certain job vacancies by Federal agencies and government contractors and subcontractors (see attachment C and attachment D). The Secretary of Labor on July 24, 1971, issued a notice of proposed rule making for the mandatory listing of job vacancies with the Federal-State employment service system, and interested persons may submit their views on the proposal within 30 days (see attachment E).

This, Mr. Chairman, briefly describes the directives which have just been issued to assure that the returning veteran receives as much employment assistance as possible. However, I would like to note that we will be building our new efforts on a well-founded base of services which are available to all veterans on a continuing basis. Beginning in 1970, the Department of Labor accelerated its ongoing efforts to provide additional assistance to the ex-servicemen. Our efforts can be effective, however, only if we can keep in touch with the veteran. Toward this goal, a number of directives have been sent to the State agencies focusing attention on the needs of the veteran and improving procedures whereby his employment needs can be met more effectively.

The new six actions outlined by the President reemphasize the dual functions necessary to match workers with jobs. On the one hand, we will try to open up opportunities of employment and training for the Vietnam-era veterans, and on the other hand, we will be personally contacting the veteran and apprising him of available opportunities.

Personnel within appropriate Federal agencies have been given special assignments to implement various aspects of the President's directive, with the De

partment of Labor taking the role of leadership and coordination. The first month's activity has centered around necessary planning activities. We are currently engaged in

identifying programs available for special emphasis,

developing various methodologies, including that for linking programs, developing appropriate directives, and

-establishing required data and reporting systems.

Staff work to assure that special efforts are made to assist Vietnam-era veterans in finding appropriate opportunities has been given the highest priority by the President and all cooperating Federal agencies. We will be reporting from time-to-time on our progress.

Mr. Chairman, may I thank you again for this opportunity to meet with you. I will be pleased to respond to any questions which the Committtee may have.

Attachments:

A-Tables on Employment Situation of Vietnam-Era Veterans

B-Selected Data for UCX and State UI Programs

C-The President's Letter to Secretary of Labor Dated June 11, 1971

D-Executive Order 11598, June 16, 1971

E-Notice of Proposed Rule Making, July 24, 1971

ATTACHMENT A

TABLE 1.-EMPLOYMENT STATUS OF MALE VIETNAM ERA VETERANS AND NONVETERANS 20 TO 29 YEARS OLD,

ATTACHMENT A

TABLE 1.-EMPLOYMENT STATUS OF MALE VIETNAM ERA VETERANS AND NONVETERANS 20 TO 29 YEARS OLD JANUARY 1969 TO JUNE 1971-Continued

1 War veterans are defined by the dates of their service in the U.S. Armed Forces. War veterans 20 to 29 years old are all veterans of the Vietnam era (service at any time after Aug. 4, 1964), and they account for about 85 percent of the Vietnam era veterans of all ages. About 700,000 post- Korean-peacetime veterans 20 to 29 years old are not included in this table.

Note: Data are subject to sampling variability which may be relatively large in cases where numbers are small. Therefore, differences between numbers or percents based on them may not be significant. Because of rounding, sums of individual items may not equal totals. Rates are based on unrounded numbers.

Source: U.S. Department of Labor, Bureau of Labor Statistics, and Veterans' Administration, Office of Controller, July 1971

TABLE 2.-EMPLOYMENT STATUS OF MALE VIETNAM ERA VETERANS AND NONVETERANS 20 to 29 YEARS OLD, BY AGE AND RACE, 2D QUARTER AVERAGES, 1970 AND 1971

1 War veterans are defined by the dates of their service in the U.S. Armed Forces. War veterans 20 to 29 years old are veterans of the Vietnam era (service at any time after Aug. 4, 1964), and they account for about 85 percent of the Vietnam era veterans of all ages. About 700,000 post- Korean-peacetime veterans 20 to 29 years old are not included in this table. Note: Data are subject to sampling variability which may be relatively large in cases where numbers are small. Therefore, differences between numbers or percents based on them may not be significant. Because of rounding, sums of individual items may not equal totals. Rates are based on unrounded numbers.

Source: U.S. Department of Labor, Bureau of Labor Statistics, and Veterans' Administration, Office of Controller.