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Job Loss and Infrastructure Job Creation
During the Recession
Linda Levine
Specialist in Labor Economics
March 17, 2009
Congressional Research Service
7-5700
R40080
CRS Report for Congress
Prepared for Members and Committees of Congress
Job Loss and Infrastructure Job Creation During the Recession
Summary
After the long economic expansion that characterized much of the current decade, the nation
entered its eleventh postwar recession in December 2007. The announcement by the Business
Cycle Dating Committee that a recession had begun preceded by one week the monthly
Employment Situation release for November 2008, in which the U.S. Bureau of Labor Statistics
reported the biggest one-month drop in employment in 34 years. This and other news of
deteriorating conditions in the labor market at the end of 2008 intensified congressional interest in
passage of legislation early in 2009 aimed at encouraging creation of new jobs and warding off
further loss of jobs. (For information on the American Recovery and Reinvestment Act, see CRS
Report R40104, Economic Stimulus: Issues and Policies .)
To mitigate all but one recession since the 1960s, Congress has chosen to increase federal
spending on infrastructure. But, there are a number of issues associated with using expenditures
on public works to quickly create jobs in times of recession. (See CRS Report R40107, The Role
of Public Works Infrastructure in Economic Stimulus).
Public works expenditures traditionally have gone chiefly to construction activities (e.g., building
highways and bridges, dams and flood control structures) which indirectly incr
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