THE PROBLEM of chronic and persistent unemployment has been a constant specter on the American scene since the depression of the 1930's, except during the period of preparation and industrial mobilization in World War II. While the Full Employment Act of 1946 placed the responsibility of assuring general employment on the federal government, specific action was not taken until 1950, the beginning of the Korean conflict. The threat of a major war forced those responsible for industrial mobilization to make a realistic appraisal of the current utilization of manpower which disclosed large pockets of trained workers in industrial areas without steady employment. The problem was how to utilize their skills without dislocating the industrial production of the economy and placing a heavier burden on housing and schools. The decision finally made was to place more government contracts in the surplus labor sectors. This experience over a decade ago is useful today, since as recently as the spring of 1961 over one hundred out of one hundred and fifty major areas were classified by the Department of Labor in surplus labor groupings. Twenty of these areas have had persistently high unemployment for several years. The same listing gives one hundred and eighty-four smaller areas of substantial labor surplus.' During the Korean military action the new program was launched by the Secretary of Defense, George C. Marshall, in a directive to the secretaries of the military departments to broaden the industrial base.2 This action was strengthened by a presidential directive on manpower mobilization,3 and by the Office of Defense Mobilization Policy No. 1, Implementation of National Mobilization Policy with Respect to Procurement and Production Scheduling.4 Within the National Production Administration, which was created by Congress to mobilize industries for the Korean conflict, was an Office of Labor which was the focal point of pressure from depressed areas. In the summer of 1951 requests for help in channeling contracts to areas of heavy unemployment were re-
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