Research Briefing
| Apr 20, 2021
US | Biden’s American Jobs Plan will provide a structural lift
After spending over $5tn in cumulative cyclical fiscal relief, Congress is now contemplating President Joe Biden’s structural stimulus package worth $2.7tn in infrastructure, manufacturing, and health care outlays, as well as tax credits for housing and green energy investments.
What you will learn:
- The structural nature of this plan would generate a more gradual fiscal impulse than prior coronavirus relief packages and would lift long-term potential output by 0.1%.
- In the short term, the impetus from stronger government outlays will be tempered by higher taxes on corporations.
- We estimate the AJP would create 1 million additional jobs in 2022 and 2 million by the end of 2024.
Tags:
Related Services

Post
Employment nowcast suggests limited impact from NICs rise
Our sentiment data-based nowcast, developed with Penta, suggests UK employment growth has continued to slow in recent months.
Find Out More
Post
No shocks from 2025/26 Victorian Budget in Australia
The 2025/26 Victorian Budget offers little to change the near-term outlook for construction activity, as high debt levels constrain the state’s ability to fund new projects.
Find Out More