Show Re Recovery overy in in Wages By FREDERIC J. J HASKIN WASHINGTON To V To what extent ex ix- ix tent the national recovery administration admin and whatever natural f forces havo have been at work since the tho low point the depression in 1933 nave Have lifted tho American wage level has been determined by an elaborate stud study made mado bythe by bythe the consumers consumers' advisory board under the tho direction of ot Thomas C. C Blaisdell Jr After depressions there is usually a lag In wage re re rc covery Profits of ot Industry aro expected to recover first with wages following and dividends lagging behind Due to the N RA R RA RA A codes establishing minimum wages It would appear that the tho wage recovery has has' been more moro rapid this time than after previous previous previous pre pre- major depressions For the manufacturing Industries Industries Industries Indus Indus- tries grouped together it is found that the low point of average hourly hourly hourly hour hour- ly earnings of oe all employed was reached in January of oC 1933 The figure for that month was cents To show the measure of decline de de- de- de dine cline in earnings from the high highpoint highpoint highpoint point of 1929 which is regarded as representing it is reported that the index for March 1933 was as only Production however howe r had declined still more for on the same basis the January 1933 production index was only 52 Wa Wage e earnings remained hi higher her be because aw a grea great ma many p employing corporations con con- con con- tined to employ and pay wages in order to keep their organizations together and their plants going coing al although al though they were losing money More lore Oat Out Than Ihan In It is shown for example that in 1932 the wage share of the Income in in- come com of ot the mining industry was pc per par cent of the manufacturing ing lag industry per cent and of the construction industry per percent percent percent cent That means mains that the employing era cm- companies paid out those excess percentages over and above what they took in In every field fieldin in spite of ot lowered wage wafe rates labors labor's share of ot the Income of the employers was materially Increased increased in in- creased d amounting in some cases as noted to more than the total the excess being paid out of oC previously previously accumulated surpluses or out of borrowings That situations accounts accounts ac ac- ac counts for maintenance o of oC wag payments on an index of while production was vas down to only 52 This study has carried the figures figures fig fig- ig- ig ures up to the the end o of 1934 The rhe highest figure for average hourly earnings is given for September 1934 when a p point paint in t of 55 cen cents cents' ts was reached By De December this had sagged d to 54 5 9 cents due presumably presumably pre pre- to the seasonal wint winter r falling off The index of ot per capita earnings earnings' up was up to at th the end of 1934 while the production index index in in- dex had risen to I. G-I. Here then was a gain of 12 cents an hour in earnings a gain in the index o of weekly earnings of at 17 1 points and anda a gain in the production index of 12 points the whole being accomplished in less than two years Fluctuation in Specific Industries An examination of ot some of orthe the figures f of specific Industries gives va a picture of how the various groups of workers have shared in the benefits rec received ived The Thelow low point of hourly earnings in the automobile automobile automobile automo automo- bile industry came in February 1933 The amount then was 57 cents an nn hour It will be recalled that there was was' the nearest approach to a boom in that industry of any and andy in October 1934 a peak of hourly earnings of or cents was reached Employment was on a amore amore amore more generous scale in this particular particular par par- industry than for the aggregate aggregate ag ag- ag of ot manufacturing industries industries indus indus- tries fo for it is shown that the index index in in- dex of weekly earnings rose from froma a low of 1307 in February 1933 to in December 1934 Meantime Meantime Mean Mean- time production had risen from a alow alow alow low of only 24 4 in March 1933 to toa toa toa a peak of or 73 in May ta 1934 At the end of at the YC year lr the production Index Index In In- dex was down to 43 but is understood under under-J- stood Jo o be rising again now Steel and Textiles Textile I IThe The basic steel el st l industry is re regarded regarded regarded re- re as especially important In assessing recover recovery April 1933 1033 was the nadir of hourly earnings when only 47 9 cents was received This has been bean rising steadily and at the close clos of the hourly earnings earn ings of workers were 60 1362 2 cents The weekly earnings low came In March 1933 when au an all Index of on a 1929 base of or wa was shown The peak peal came ame in n n June 1934 when was was' reached and the figure at the end of ot the year was Meantime the Index of production of a a bare 19 for March 1933 rose roseto roseto roseto to 70 for May 1934 and in December Decem December ber bar 1934 stood at 43 still still far faz belov below be be- low low- 1929 but more than per percent percent cent over the low point of oC the de de- de- de The very first N N NR R A code dealt with the textile industry It was was was' the first because e the ir Industry had been working working out a code for it itself itself it- it self prior to the advent of the theN theN theN N R A A. A The industry on its it own initiative had decided it needed a code so it w was s not difficult to adapt the work already done to the N R A purposes Standing of ot Textile Industry In March 1933 the hourly wages in the cotton textile industry were only cents They advanced steadily almost doubling by May 1934 when the figure touched cents At the close of ot the year It was down to cents but that was a tremendous im Ira- provement pro The spread of work made the average weekly earnIngs earnings earn earn- ings boom especially in the south In March 1933 this index had stood at only 62 1 and in December December December Decem Decem- ber 1934 it had reached This industry is s especially lly notable in demonstrating how a tremendous lift in wages was made possible with no striking increase in pro pro- In March 1933 the production pro pro- index stood at 80 In June 1933 it reached but that was due to a short lived spurt caused by an effort of ot the mills milIs to accumulate accumulate accumulate heavy stocks in anticipation t ton tion on of the processing tax which went into effect August 1 The production Index fell back to the theold theold theold old old figure and even in some months dropped below it and at atthe atthe the end of ot 1934 stood at 74 For woolens and worsteds the thel thelow l low w point of ot hourly wages was in March 1933 when a figure of only 34 cents was shown A peal peak of ot 50 c cents Was reached in S September 1934 with earnings still sUll up to cents at the close of ot the year The index of weekly earnings had been in March 1933 and has steadily steadily steadily stead stead- ily advanced until in December 1934 it stood at 80 2 Meantime the production Index rose from a alow alow alow low of 48 in March 1933 through the processing ante-processing tax rush of the summer of 1933 to a peak of and at the end of oe 1934 stood at 86 a tremendous gain In Meat Industries In slaughtering and meat packing packing pack paek- ing the low point of hourly wages was not reached until July 1933 when hen only cents cents' were paid The packers have never come Under under under un un- der a code but the general wage rise over the country affected them and there has been a steady rise In De December ember 1934 hourly earnings earnings earn earn- ings lags were up to cen cents l The index of weekly earnings rose from froma a low of 69 in March 1933 to a peak of ot at the close of 1934 The production index had been 87 7 in March 1933 and md at the end of 1934 stood at These figures it will be noted have all had to do with some branch of manufacturing What has happened in th the retail trade field is equally interesting In July 1933 a low point of cents had been touched in hourly earnings This reach reached d a h high gh of in October October Oc Dc Oc- Oc tober 1934 1 and at the end of the year stood at Weekly card carri- ings lags had been at a low of in April 1933 They climbed to a high of in July 1934 but at atthe atthe atthe the end of the year were down downto to only There are still probably ons out of ot work in the United States but those who have jobs are experiencing a rise in the wage level To be sure there has been a rise in prices coincident with these wage increases and should d inflation be resorted to even such increases ases as have been paid would be set at naught |