Employment Act

Employment Act (1946)

1) Link to the Text of the Act
Read the statute (15 U.S.C. §§ 1021–1022)

2) Why It Was Done
Passed after World War II to ensure economic stability, the Act declared it the policy of the federal government to promote maximum employment, production, and purchasing power. It aimed to prevent another depression and manage the postwar economic transition.

3) Pre-existing Law or Constitutional Rights
Before this Act, there was no statutory requirement for the federal government to pursue full employment or economic growth. The Act was based on Congress’s powers under the Commerce Clause.

Acts

Full Employment and Balanced Growth Act (Humphrey–Hawkins Act)

Full Employment and Balanced Growth Act (Humphrey–Hawkins Act, 1978)

1) Link to the Text of the Act
Read the statute (15 U.S.C. §§ 3101–3151)

2) Why It Was Done
Enacted during the economic turmoil of the 1970s (stagflation, high unemployment, and inflation), the Act built on the Employment Act of 1946 by setting explicit goals for reducing unemployment and inflation, while requiring the Federal Reserve to coordinate with Congress.

3) Pre-existing Law or Constitutional Rights
The Employment Act of 1946 established a general commitment to economic stability. Humphrey–Hawkins expanded this by imposing numerical targets and mandatory reporting, grounded in Congress’s Commerce Clause powers.