X. UNEMPLOYMENT AND INSURANCE. 90

The greatest problem in modern industry as well as the

greatest curse to the laboring classes, is unemployment. While

unemployment has always existed under all systems of labor, it assumed

added significance when the introduction of the wage system threw

every worker upon his own resources and made him responsible for the

care of himself and his family. Modern industry is sensitive and

unstable and its delicate mechanism, very likely to get out of order;

credit and fashion, to mention no others, are factors that make for

instability, and these are essentially modern. Professor Marshall is

of the opinion that the factory system has not increased inconstancy

of employment, but has simply rendered it plainer by localizing it.

But whether more or fewer than in earlier times, the number of the

unemployed in modern industry is appallingly great. It is not easy to

estimate correctly the extent and amount of this evil and we

accordingly find considerable variations in the statistical

presentations of fact. In 1885 two investigations of the amount of

employment were made, one by Carroll D. Wright, in his report as

United States Commissioner of Labor for 1886, and the other by the

Massachusetts Bureau of Labor in its report for 1887. Mr. Wright

defines the unemployed very narrowly as “those who under prosperous

times would be fully employed, and who, during the time mentioned,

were seeking employment”; using the term in this restricted sense he

concluded that 7½ per cent of the working population engaged in

manufacturing and mechanical pursuits, and trade and transportation

were idle during the year, which moreover he considered one of extreme

depression. The Massachusetts statistics, on the other hand, were

presented as indicative of general conditions in normal years and may

safely be regarded as such. According to this report, 30 per cent of

the total number of breadwinners in the state had been unemployed at 91

their principal occupations on an average of 4.11 months in the year

covered; some of these found work at other or secondary occupations.

But the net result of the investigation was well put in the terse

statement of the report, that “about one-third of the total persons

engaged in remunerative labor were unemployed at their principal

occupation for about one-third of the working time.” At the lowest

estimate the whole working population lost on the average almost

one-tenth of their working time. The loss of such a proportion of the

community’s productive force, with all the demoralization attendant

upon irregular or no labor, is evidence of a problem of grave import.

Unemployment is such a broad term and covers so many different ideas

that it will be well to classify the unemployed before proceeding

further. They may be logically divided into the following classes: I.

The temporarily unemployed, who comprise (a) those certain of work

again, as efficient workmen who are temporarily out of work owing to

seasonal variations, shut downs, etc.; (b) those without such

prospect, a group which again divides into two groups, namely, (1)

efficient and industrious workmen who have been thrown out of work by

a change in fashion, the introduction of new machinery, foreign

competition, a prolonged depression, etc., and (2) those whose work is

essentially fluctuating and casual in its nature, as casual day

laborers, charwomen, etc. II. The permanently unemployed, consisting

in turn of (a) the “won’t-works,” as tramps, and (b) the

“can’t-works,” or the defective and dependent classes generally. Such

a classification renders much easier the analysis both of the causes

and of the cure of unemployment.

The first question that presents itself in any discussion of the

causes of unemployment is whether it is due primarily to personal

causes, as inefficiency or intemperance, or to industrial causes over

which the individual has no control. “Personal causes are those 92

mental, moral, and physical defects which show themselves either in

the inability and inefficiency of the workman or in his unwillingness

to work. Here are included all the varieties of personal inaptitude,

ranging from idiocy, intemperance, and vice to old age, sickness, and

accident.”[25] Such a comprehensive definition includes many cases, of

course, where no blame can be attached to the individual, and yet each

one of these causes is personal, that is, it does not affect at the

same time a whole group, as an industrial depression would do. Persons

included in this group are always on the margin of employment; in bad

times the first to be discharged, in good times they are the last to

be employed. Nor is the cause of their lack of employment always easy

to give; it may be itself the result of industrial accident or

unhealthful occupation, or the result of heredity, evil habits and

associations, and defective education. We may present two tables

giving briefly the causes of poverty and unemployment. The first gives

the causes of poverty ascribed by the charity organization societies

of New York, Boston, and Baltimore to applicants for relief:

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