TNAG-0147-FCO40-183-Exports-of-textiles-to-United-States-of-America-1969 — Page 78

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CONFIDENTIAL

Enclosure 2

Remarks by Mr. H. Blackuan. U.S.. Department of Labour regarding the employment situation in the U.S. textile and apparel industry

I should like to begin by putting the labor situation in textiles and apparel in perspective.

The United States economy in recent years has experienced a strong rate of growth some of it inflationary. Total employment has continued to rise and unemployment by our standards has been comparatively low.

Our civilian labor force in August of 1969 was over 82 million persons.

Little less than 3 million were unemployed

over 80 million were employed

Despite this level of prosperity there are serious problems within the economy which effect the work force.

Too many people are under-employed or have substandard income.

We are spending over $2 billion dollars a year in manpower programs designed to bring more people into the work force and lift them from the level of poverty in which we find them. These problems are most serious with respect to certain minority groups:

Negroes

Mexican Americans Spanish Americans

Puerto Ricans, etc.

A good many of the problems related to poverty, unemployment and minorities are concentrated in the urban centers where the levels of unemployment or underemployment have created very serious social problems. The textile and apparel industries are important factors in dealing with these problems of poverty and the dis- advantaged.

Let me illustrate:

In August 1969, the overall unemployment in the United States was 3.5% (compared with the Japan rate of 1% or less). The unemployment rate in the U.S., by certain population groups differed markedly from the 3.5% overall unemployment rate. For example the un- employment rate:

among whites was

among Negroes

among teenagers (16-20)

among Negro teenagers

3.2%

6.5%

12.5%

25.0%

Many of our social problems arise from these groups.

Employment in textiles and apparel has not kept pace with the growth of overall employment. Employment in all-manufacturing in August 1969 was 20.3 million; an increase of 120,000 from July and about 700,000 above the January 1968 level.

/By

CONFIDENTIAL