More Output = More Jobs

THE ECONOMY

Automation entered the language during a conference of Ford Motor Co. engineers in 1946--and it has been influencing society ever since. On the one hand, it has made possible the vast growth and technological advances of the U.S. economy in recent years; on the other, it has been a source of worry and perplexity to millions of people. One of the big worries of labor leaders and economists has been that automation gains might enable a strong economic advance--like the present one--to surge forward without creating any new jobs. Last week that worry was at least partially dispelled by two new statistics operating in tandem.

In the sharpest gain in almost a year, U.S. industrial production in April rose a full point, to 129.2% of the 1957-59 base; in all of last year's final six months, it had risen only four-tenths of a point, and this year it had been rising by only half a point or less each month. That was good news, but the Labor Department had some new figures that made it even better. While production was surging ahead, nearly 500,000 new, nonfarm jobs were created in April, far more than is normally expected for the month. The new figures reduced unemployment among adult male workers to 3.8%, the lowest figure in more than six years.

Rising output and job levels are getting a big boost from the nation's two most basic industries: steel and autos.

Steel's output last week rose to the highest level in eleven months, and the industry is clearly headed for a record production year. Steel's wellbeing, of course, stems chiefly from the buoyant state of the auto industry, whose daily sales so far in May are running 1.5% ahead of last year's near-record rate. Ford is pacing the pack, has sold 20,454 Mustangs in the four weeks since the sports car's introduction. The other automakers also notice that their best-selling models are those that were either all new or sharply restyled for 1964. That gives them good reason to hope that the completely restyled 1965 models will keep the auto industry moving forward in high sales gear.

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