ing up of production and the stoppage of the
workman's wages. If it had not been possible to restart the machinery of
exchange, starvation would have walked through the land, and the industries
dependent on foreign raw material would have closed down altogether. As it
was, the inevitable dislocation increased the amount of unemployment.[1]
Whereas the trade union percentage[2] of unemployment amongst their members
was only 2.8 at the end of July, it had reached 7.1 by the end of August.
This figure, however, is considerably below the percentage of unemployed
during many periods of trade depression; the average for the whole of 1908
was 7.8 and for 1909, 7.7, whilst during the month of March 1912 it rose to
11.3 as a result of the coal strike.

[Footnote 1: Note that unemployment prior to the war was showing a tendency
to increase.]

[Footnote 2: It should be observed that these figures relate only to about
a million trade unionists, no non-unionists being included. Further, they
ignore short time.]

The volume of unemployment during August varied considerably from trade to
trade. In the cotton industry, which, however, appeared to be in for a bad
time anyhow, 17.7 per cent of the trade union members were returned as
unemployed during August 1914, whilst in coal mining the percentage was
1.3. As compared with the previous month of July, there was a general
decline in all industries except shipbuilding, which benefited by increased
activity on Government work. The contraction in the volume of employment
was specially marked in the case of tin-plate works and in the textile,
furnishing and woodworking, and pottery trades. Again, in the trades where
the Government scheme of compulsory unemployment insurance applies, the
volume of unemployment at the end of July was 3.6 per cent, but at the end
of August it had reached 6.2 per cent or double the volume recorded in
August 1913.[1] Beyond this, there was during the month of August, an
enormous amount of short time; in several industries for which particulars
are available, thousands of workpeople were working half-time or less.[2]
The rise which took place in the price of certain food-stuffs especially
during the first part of August intensified the evil by reducing "real"
wages.

[Footnote 1: The gradual increase during the month may be observed from the
weekly returns:--Aug. 7, 4.0 per cent; Aug. 14, 5.1 per cent; Aug. 21, 5.8
per cent; Aug. 28, 6.2 per cent.]

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