Historical Review: The Employment Act of 1946


The Employment Act of 1946 is a federal law in the United States.  President Harry S. Truman signed the bill into law on February 20, 1946.

The act legislated that it is the responsibility of the federal government to: “coordinate and utilize all its plans, functions, and resources… to foster and promote free competitive enterprise and the general welfare; conditions under which there will be afforded useful employment for those able, willing, and seeking to work; and to promote maximum employment, production, and purchasing power.”

Originally, the bill was named the Full Employment Bill of 1945.  The bill was introduced in the House of Representatives as HR 2202 and in the Senate as S. 380.  The Act requires the President to establish an annual economic report within ten days of submitting a national budget that forecasts the future state of the economy.  The Act also created the Council of Economic Advisers – an appointed board that advises the President in creating economic policy.  Additionally, the Employment Act of 1946 authorized the creation of the Joint Economic Committee – a group composed of both representatives and senators who are tasked with reviewing the federal government’s economic policies on an annual basis.

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