Employment and Wages of Workers Covered by State Unemployment Compensation Laws, 1940

THE YEAR 1 9 4 0 was characterized by sharp employment increases in industries producing such durable goods as automobiles, aircraft, ships, machinery, and other ferrous metal products, and by an expansion in construction, arising out of the Nation's need for cantonments, shipways, airports, and armament plants. Industries covered by State unemployment compensation laws participated to a greater extent than all nonagricultural industry in the general economic improvement. By December 1 9 4 0 , covered employment1 totaled 24.4 million, 2 . 4 million more than in December 1939 and 4 . 3 million above December 1 9 3 8 . In manufacturing, the increase from December 1 9 3 9 to December 1 9 4 0 in the number of covered workers employed in the production of durable goods was more than three times the increase in the number producing nondurable goods. Average monthly covered employment increased 8 percent over 1 9 3 9 , to 2 3 . 1 million, as against a gain of only 4 percent in total nonagricultural employment.2 Similarly, total wages in covered employment rose 1 2 percent above 1 9 3 9 , to $ 3 2 . 4 billion, as against a rise of less than 1 1 percent in all nonagricultural salaries and wages.3 About two-thirds of wages and salaries in all industries in 1 9 4 0 were for covered employment, a slightly higher proportion than in 1 9 3 9 . The increase was due partly to extension of coverage