formation, issues benefit checks to local offices, reviews benefit pay-
ments to determine if any were improperly made, recovers improper
payments, and pays benefits to individuals who formerly worked
in Maryland, but who reside in other states, as provided by a re-
ciprocal interstate agreement. The law provides for an experience.
rating system under which employers who maintain steady employ-
ment are eligible for reduction in the rate of contributions. All
funds collected under the law are deposited with the Federal Treas-
ury for the credit of the Unemployment Trust Fund of Maryland
and may be used only for the payment of benefits.

Employment Service Division

This Division supervises the Employment Service program car-
ried out by the Local Office Operations Division. The Employment
Service Division also cooperates with the Governor's Committee to
Promote Employment of the Physically Handicapped, the State Vet-
erans Service Committee, the Baltimore City Committee on Aging
and the Problems of the Aged, the Committee on Employment and
Economic Problems of the Aging of the Maryland State Conference
of Social Welfare, the Baltimore Council of Social Agencies, and
the Maryland Commission for the Prevention and Treatment of
Juvenile Delinquency.

Research and Analysis Division

This Division reports to the Federal Bureau of Employment Se-
curity on the operations of the Department's Employment Service
and Unemployment Insurance programs. The Division obtains its
information from the operating records of the local offices and the
various units in the central office. This information is also used
in preparing reports for officials of the agency and the Annual
Report to the Governor. As part of a cooperative program to pub-
lish labor market data, the Division also furnishes to the U. S.
Bureau of Labor Statistics monthly estimates of employment, hours
and earnings, and labor turnover in Maryland and in the Baltimore
Metropolitan Area. It compiles this information from monthly re-
ports made by a representative sample of Maryland employers. In
addition, the Division publishes bi-monthly newsletters covering
labor market conditions in Maryland and the Baltimore Metropoli-
tan Area, prepares reports on the labor market upon request, and
conducts statistical research studies on specialized topics.

Appeals Division

This Division, under the supervision of a director responsible to
the Board of Appeals, conducts hearings on all appeals filed by
claimants or employers from the determinations of claims exam-
iners in the Department's local offices. Claimants may appeal from
determinations disqualifying them for benefits, or employers from
determinations allowing benefits, as the case may be. An Appeals
Referee hears all such appeals. Any aggrieved party may further
appeal to the Board of Appeals. Final appellate recourse is to the
Courts of Maryland.

Personnel and Training Division

This Division provides staff for the Department and trains em-
ployees in all phases of the Department's operations, many of which
are highly specialized. When the Department in 1957 integrated
its unemployment insurance and employment services, the Person-