The Trump administration has proposed investing an extra $1 trillion in infrastructure to create millions of new jobs. To maximize the impact of such investment on employment, planners need to adopt a new jobs-centric approach that prioritizes investments in infrastructure projects on the basis of their job creation potential.
Analyzing the Potential
The number, quality, and sustainability of jobs vary greatly across infrastructure sectors. Without a highly prioritized investment focus, $1 trillion in infrastructure spending could create as few as 1.6 million jobs. If government planners direct investments to projects on the basis of their job creation potential, however, the choices they make might help create 2.9 million or more incremental jobs.
Success Factors for Job Creation
To achieve their objectives, policy makers must position infrastructure as an engine of job creation and economic growth; create incentives for new projects in sectors (such as seaports, hospitals, and airports) that deliver high-quality or long-lasting jobs; fast-track projects to accelerate job creation; develop a scoring methodology to account for job creation impacts; make reporting on job creation a condition for funding; and track, monitor, and report job creation at the project and portfolio levels.