A recovery package that focused on job creation through infrastructure investment could help reduce the severity and length of the job market downturn. A broad-based rescue package should be at least as large as the package passed in January, and should include infrastructure investments, aid to states, and consumer supports. The infrastructure investment component should include $75 billion in new investments that would focus on “ready-to-go” and “fix-it-first” projects that could begin immediately and employ over 1 million people. This recovery package would provide a boost to the overall economy and stimulate jobs across industries and across the nation.
This testimony gives some background context for understanding the length and depth of a downturn in the labor market, and discusses the job market implications–in terms of timing and industry impact–of investments in infrastructure projects.