Public service employment is a cost-effective fiscal remedy in terms of jobs created within the first 12 months. Its effectiveness is enhanced if participants come from welfare or unemployment compensation programs. Other positive attributes are low inflationary impact and ability to be targeted to areas or groups. (SK)

The National Commission for Manpower Policy assesses the effectiveness of public service employment (PSE) programs. Reports on numbers of jobs created, types of PSE workers, and the amount and effects of job displacement caused by the policy of "fiscal substitution" in local jurisdictions. Recommendations include strengthening PSE…

Compares federal job creation efforts of the 1970s to the Work Project Administration (WPA) program in the 1930s. Traces the development of the Comprehensive Employment and Training Act (CETA) and stresses the need to unite public and private resources to achieve both balanced economic growth and full employment. (SK)

Authors assert that public service employment (PSE) is one form of macroeconomic policy and compare PSE to tax reduction, federal subsidies, and other forms. They propose a design for an ongoing federal employment program and conclude that a PSE program aimed at the structurally unemployed creates more jobs per GNP dollar than other policies. (SK)