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in engineering and shipbuilding, were restrained from enticing work- people to their establishments from employers elsewhere, and were prohibited from seeking to engage workmen from a distance of more than 10 m. otherwise than through the employment exchanges. In 1916, arrangements were made to reach agreement between the various departments responsible for production as to the order in which demands for labour should be met. In their fully developed form, these arrangements involved frequent periodical consultation between the producing departments, and the grading of current demands for labour according to their importance. The labour needs of employers in war industries were graded as entitled to " Super-Priority," " First " or " Second Class Priority," or as not deserving special treatment. Decisions of this character were given upon the demands of employers as notified to the employment exchanges. Such demands from the whole kingdom were brought together in the central clearing house of the unemployment depart- ment, and the classified lists of labour demands issued upon this basis were circulated to all employment exchanges. A general list of vacancies was issued by the clearing house in the manner already described, and a special list known as the " Munition Workers' Gazette," relating especially to the most important labour demands in the engineering industry, was issued by the clearing house upon the authority of the Ministry of Munitions. The employment exchanges working upon the information so supplied, were able to influence appreciably the distribution of any local surplus of labour. War Employment of Women. With the development of war pro- duction, the demands for women's labour became far greater than the supply which was available immediately. In order to obtain control of the distribution of the available supplies of women's labour, Government and controlled factories were required to engage all women through the employment exchanges. Further, a large proportion of the women employed in other factories engaged upon war work was supplied through the exchanges. The exchanges carried out a continuous campaign for recruiting women for these purposes, the total number supplied by the exchanges amounting to more than 1,086,000. Recruiting for the Women's Service Corps was also undertaken by the exchanges. Forty-three thousand seven hundred women were recruited by the exchanges for Queen Mary's Army Auxiliary Corps (W.A.A.C.), 5,700 for the Women's Royal Naval Service (W.R.N.S.) and 16,300 for the Women's Royal Air Force (W.R.A.F.).

Labour from Abroad. In order to avoid difficulties with British workmen, employers were compelled to arrange the engagement of alien workpeople required for munition work through the employ- ment exchanges. The principal work in this connexion was find- ing employment for about 65,000 Belgian workpeople.

Release from the Forces. In the early stages of the war, large numbers of workmen, possessing skill which was of great value upon civil war work, joined the army. Arrangements were made subse- quently for the release from the army of a number of these men. The staff of the employment exchanges were largely employed in select- ing such men for release.

Substitution. During 1917 and 1918, the employment exchanges, and the local employment committees from their formation at the end of 1917, were largely occupied upon endeavouring to obtain sub- stitutes for men in civil life who had been certified as available for military service upon the supply of a substitute. This work was one of great difficulty and was carried out with the National Service Department, subsequently the Ministry of National Service.

Work for Demobilization. Before the conclusion of the war, an elaborate scheme for the demobilization of the forces according to industrial requirements had been elaborated (see DEMOBILIZATION AND RESETTLEMENT). The employment exchanges and the local employment committees were responsible for preparing and apply- ing the original scheme of demobilization upon its civil side, and upon the introduction of the " Contract " scheme they continued to assist in the work and were responsible for dealing with the increasing numbers of unemployed ex-service men. The local employment committees performed a very valuable service in pressing upon employers in every area the obligation to reengage the men who had been employed by them before the war.

The employment exchanges assisted in the redistribution of work- people which followed upon the conclusion of war contracts. They endeavoured to arrange with employers for discharges to be regulated with a view to fresh employment which seemed likely to be available. Workpeople about to be discharged from war work were invited to supply the exchanges with particulars of their industrial experience with a view to fresh employment being found for them, and some 130,000 workpeople took advantage of this arrangement. The exchanges also supplied free railway passes_to munition workers who were returning to their homes or were going to fresh employment. Discharges from war work were at their maximum towards the middle of 1919, that is to say at the time when demobilization of the forces was proceeding most rapidly. The effect of this double stream of workpeople seeking employment is to be seen in the particulars of the payment of out-of-work donation.

Throughout the resettlement period, the work of the local employ- ment committees was of the greatest value. In order to strengthen their organization, divisional councils were formed consisting of representatives of the committees in each division.

Out-of-Work Donation. Early in the war it had been decided that members of H.M. forces should be entitled to certain payments during unemployment following their discharge at the conclusion of the war. Proposals to extend compulsory and contributory unemployment insurance to the bulk of workpeople engaged upon civil work had not fructified during the war. When, therefore, the end of hostilities was in view, the Govern- ment decided that the out-of-work donation scheme should apply to civilian workpeople as well as to all non-commissioned members of H.M. forces. The scheme came into operation on Nov. 25 1918.

In the first instance donation was granted to ex-service men at the rate of 293. a week with allowances for dependent children under the age of 15 at the rate of 6s. for the first child and 33. each for other children, for 26 weeks, and at the rate of 2os. a week with unreduced allowances for dependent children for a further period of 13 weeks. The period during which this 39 weeks' donation could be drawn was the period of 12 months following the end of a man's demobiliza- tion furlough. Civilian workers were entitled to donation for a maximum period of 13 weeks in respect of unemployment occurring during the six months ending May 24 1919, and the donation was at the rate applicable to the first 26 weeks of the donation paid to ex- service men. In order to be entitled to donation, civilian workers were required to show that they had become employed contributors under the National Health Insurance scheme at least 3 months prior to Nov. 25 1918, or if they were under 16 or over 70 years of age, to produce equivalent evidence of employment. Donation was paid at half rates to persons under 18. Persons who were entitled to out- of-work donation applied to the local employment exchange upon becoming unemployed, and produced evidence that they were qualified to receive donation under the conditions of the scheme. Thereafter the procedure approximated to that adopted in the administration of unemployment insurance ; that is to say, donation was refused if it appeared that the applicant had left his previous employment without just cause or as the result of misconduct or of a trade dispute, and donation was withdrawn if suitable work was refused. Disputed claims were dealt with by a local court of referees.

The out-of-work donation scheme was modified in respect of civilians in May 1919 by a postponement until Nov. 24 1919 of the date up to which a total of 13 weeks' donation could be drawn. At the same time the rate of donation for civilian workers was reduced to 2os. for men and 153. .for women, together with unaltered allow- ances for dependents, and the conditions for the receipt of donation were made more stringent by requiring the applicant to prove em- ployment in 20 weeks during 1918 and by a review by the local employment committees of all applications for donation with a view to their rejection unless the committee were satisfied that the applicant was (a) normally in employment; (b) genuinely seeking work, and (c) unable to obtain it. The donation to civilian workers was also extended by the grant in March 1919 of donations for a further maximum period of 13 weeks (making 26 weeks in all) at the rates and under the conditions applied in May 1919 to the original grant of donation. Out-of-work donation ceased to be payable to civilian workers on Nov. 24 1919. Out-of-work donation to ex-service men was extended in respect of all ex-service men who had exhausted their rights under the original scheme by the grant of a further maximum of the 12 weeks' donation at the rate of 2Os. a week with- out children's allowances during the period Nov. 25 1919 to March 21 1920, a further 12 weeks' donation between April I 1920 and July 31 1920, and a further 14 weeks' donation between July 31 and Nov. 6

1920. By a further extension, donation was granted to ex-service men up to a maximum of 14 weeks during the period ending March 31

1921. The local employment committees were entrusted with a review of the individual grants of donation upon the occasion of each extension. This review involved very heavy work in all localities, as will be realized from the number of donation policies upon which payment was being made in successive months. There were, for civilians (up to Nov. 1919, when their donation ceased): in 1918, Dec. 356,707; in 1919, Jan. 625,149; Feb. 782,363; March 753,982; April 689,933; May 384,290; June 233,282; July 177,221; Aug. 141,132; Sept. 100,731; Oct. 135,185. For ex-service men the figures were: 1918, Dec. 23,988; 1919, Jan. 53,554! Feb. 166,257; March 306,263; April 403,467; May 386,921; June 372,843; Ju'V 363,663; Aug. 336,952; Sept. 302,272; Oct. 344,242 ; Nov. 358,823; Dec. 370,610; 1920, Jan. 377,116; Feb. 293,144; March 240,508; April 219,226; May 196,508; June 174,224; July 139,866; Aug. 143,186; Sept. 158, 759; Oct. 172,834; Nov. 192,144; Dec. 244,061.

In June 1920, the Minister of Labour appointed an independent committee, under the chairmanship of Mr. G. N. Barnes, M.P., " to examine the working and administration of the employment exchanges in Great Britain and to advise as to their future." The committee presented a report signed by all but one of their number in Nov. 1920 (Cmd. 1054). They found that the employment exchanges are a necessary corollary to the State