ECONOMIC

qualitative conclusions. For example, they find that increased coverage of thework force and a longer duration of benefits tend to increase the unemploymentrate and lengthen the duration of unemployment. In addition, thelarger the unemployment compensation benefits relative to earnings net oftaxes, the longer the duration of unemployment is likely to be. The requirementthat recipients actively search for, be available for, and accept suitableemployment appears to be unevenly administered. Some research suggeststhat more stringent enforcement of these requirements results in a lower Stateunemployment rate.Reduction of the implicit subsidies currently built into the unemploymentcompensation system would lead to a more efficient utilization of laborresources. This may be accomplished by greater use of experience-rating ofall employers in the payroll tax and by taxing benefits as if they were earnings.These changes would not reduce the effectiveness of unemploymentcompensation as an automatic stabilizer. These and other issues concerningthe unemployment compensation system are to be studied by the NationalCommission on Unemployment Compensation, due to be established inaccordance with legislation enacted in 1976.STRUCTURAL UNEMPLOYMENTEven after the economy has returned to full employment some groupsin the population may still have considerable difficulty finding and retainingemployment. Unemployment among such groups may arise from the lackor obsolescence of skills, from regional mismatching of workers' skills andjob requirements, and from wage rigidities. The mobility of workers andenterprises makes it likely that the decline in unemployment in the comingyears will be fairly widespread across the country. Although regional growthrates of employment will differ, it is not likely that large depressed areas, likeAppalachia in the 1950s, will emerge as a serious problem. The long-durationunemployment rate—the number unemployed 15 weeks or longer as a percentageof the labor force—was 2.5 percent in 1976. However with the approachto full employment, it can be expected to decline toward the prerecessionlevel of about 0.9 percent.A number of groups, however, including youths with little schooling, andin particular black youths, and older workers laid off during the recessionwho have had a long period of unemployment, may continue to encountersubstantial problems in finding work. Policies that reduce the barriersthat are chiefly reponsible for structural unemployment would do muchto promote equality of employment opportunities. It is therefore usefulto review current and proposed policies designed to expand job opportunitiesfor persons with difficulties in finding and retaining employment. Thesepolicies include public service employment, job training programs, and anemployment tax credit.139