Summary: Some form of countercyclical job creation program has been enacted during four of the last five recessions. In response to the 1981-82 recession, the Emergency Jobs Act of 1983 provided a $9 billion supplement to 77 existing federal programs to (1) provide productive employment for jobless Americans, (2) hasten or initiate federal projects and construction of lasting value, and (3) provide humanitarian assistance to the indigent. The vast majority of the funds were made available to public works programs to build water systems, sewers, and subsidized housing. GAO testified, however, that the act was neither effective nor timely in relieving the high unemployment caused by the recession. Funds were spent slowly, as is typical for public works programs, and few jobs were created when most needed in the economy. Further, unemployed persons received a relatively small proportion of the jobs provided, and some of the states most severely affected by the recession were among those that received the least assistance.
