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STRATEGIES FOR ASSISTING THE UNEMPLOYED
 
 
December 8, 1982
 
 
Prepared by the Staff of the
Human Resources and Community Development Division
Congressional Budget Office
 
 

This analysis was prepared by the staff of the Human Resources and Community Development Division of the Congressional Budget Office, under the supervision of Nancy M. Gordon. Questions regarding the analysis may be addressed to Martin Levine.
 
 

CONTENTS

SUMMARY

I. INTRODUCTION

II. THE UNEMPLOYMENT SITUATION

III. THE ECONOMIC CONTEXT OF EMPLOYMENT POLICY OPTIONS

IV. OPTIONS FOR ADDRESSING CYCLICAL EMPLOYMENT PROBLEMS

V. OPTIONS FOR ADDRESSING STRUCTURAL EMPLOYMENT PROBLEMS

 
TABLES
 
1.  SELECTED UNEMPLOYMENT RATES BY DEMOGRAPHIC AND OCCUPATIONAL GROUPS
2.  ESTIMATED NUMBER OF DISLOCATED WORKERS IN JANUARY 1983 UNDER ALTERNATIVE ELIGIBILITY STANDARDS AND ECONOMIC ASSUMPTIONS
 
FIGURES
 
1.  UNEMPLOYMENT RATES BY STATE, SEPTEMBER 1982
2.  DISTRIBUTION OF LOCAL PUBLIC WORKS OUTLAYS IN RELATIONSHIP TO NATIONAL UNEMPLOYMENT RATES


 
SUMMARY

With unemployment currently at its highest level since World War II and likely to continue high for some time to come, concern in the Congress has been directed toward creating more jobs. Today's high unemployment is the result of both cyclical and structural causes: the slowdown in economic activity; the persistent job difficulties of disadvantaged low-income groups; and the long-term declines of some manufacturing industries. Because the reasons for the joblessness of different groups of unemployed persons are not the same, options for helping them differ.

Substantial long-term improvement in the overall unemployment picture will not occur without sustained economic growth. A strong economic recovery would directly expand opportunities for persons unemployed because of the recession. Renewed growth is also necessary for the success of programs designed to assist disadvantaged and dislocated workers. But the difficulty of identifying any general economic policy that might lead rapidly to this renewed growth without eventually rekindling inflation, and the perception that some government action is needed quickly, has focused attention on proposals to create jobs directly for a limited number of the unemployed.

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