Still Picking up Speed

Reflecting the increased pace of the new boom, the Labor Department reported last week that in mid-July, employment reached an alltime record of 67,594,000, rising by 252,000 over June. What pleased Government economists most was the 110,000 drop in long-term unemployment (15 weeks or more) to 817,000 in July.

Since the Labor Department's survey was taken during the first week of the steel strike, it showed few of the strike's effects. As the steel strike started, unemployment was down by 238,000 from June to 3,744,000. But an unusual rise in the number of unemployed farm workers in July because of bad weather, and large numbers of young workers moving in and out of the labor market, raised the rate of unemployment to 5.1% from 4.9% in June. The July rise was caused by "temporary factors," said the Labor Department, which expects unemployment to continue to decline in the fall.

Although employment figures did not show the effects of the steel strike, the Federal Reserve Board's industrial production index did. Some 100,000 workers were laid off in mines and railroads, and carloadings dropped to 532,304 cars, lowest for a comparable week in years. Last week the Steelworkers Union and others called a strike at Kennecott Copper Corp. and Magma Copper Co. that idled another 15,000 workers. As a result, industrial output declined 1% in July to 153% of the 1947-49 average, two points below the record June level of 155%. But activity in most other durable-goods industries increased, and output of nondurable goods reached new highs in July. Last week Radio Corp. of America announced it had cut its usual two-week plant vacations in half to keep up with orders for TV sets, transistor radios and stereo equipment.

Automakers, too, are anxious to keep up the July pace and are expected to complete the changeover to 1960 model production in three to four weeks, one of the shortest periods on record. With the finish of 1959 car production scheduled for the end of this month. 1960 models will roll out in volume by mid-September, a full month ahead of 1958.

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