The stakes of passing Biden’s agenda are 4 million jobs a year, study says

joe biden
U.S. President Joe Biden.
  • A new analysis from the Economic Policy Institute looked at just how many jobs Biden and the Democrats' agenda would support.
  • The agenda would support 4 million jobs a year, with 1.1 million jobs supported in caregiving.
  • This includes 545,598 jobs a year from investments in long-term care.
  • See more stories on Insider's business page.

The Democrats are currently negotiating a pair of bills that together could add $4.5 trillion in new spending on infrastructure, family care, and other long-sought priorities. And the ambitious program could add 4 million new jobs a year, according to a new analysis.

A new report from the left-leaning Economic Policy Institute (EPI), breaks down just how many jobs would be supported by the Build Back Better agenda.

According to EPI, the $1.2 trillion bipartisan infrastructure bill, which includes $548 billion in new spending per EPI, would support around 772,400 a year. The reconciliation bill, which would include spending on social programs like child care, would support over 3.2 million a year.

EPI examined the different parts of the two bills and used Department of Labor data to see just how many jobs would be supported a year over a 10-year period.

The Build Back Better agenda would support more than 4 million jobs per year "on average, over the course of the 10-year budgeting window, through direct spending and increased indirect demand in related industries," according to the report.

This chart shows the parts of the agenda that would support the most jobs a year per EPI's analysis:

Almost all of the top 10 are from spending under the reconciliation bill with the exception of spending for "roads, bridges, major projects." That falls under the Infrastructure Investment and Jobs Act, where $110 billion of the $548 billion in new funding would be used for this.

EPI finds different types of jobs would be supported as the infrastructure bill and budget reconciliation package include things like investing in clean energy, physical infrastructure, child care, and health care. The agenda would support 763,000 green jobs, 556,000 manufacturing jobs, and 312,000 construction jobs a year. Additionally, it would support 1.1 million caregiving jobs a year over a 10-year period.

A large chunk of the 1.1 million caregiving jobs supported comes from long-term care. Investing in the nation's childcare and caregiving, including universal pre-k and affordable childcare, is one key component of the spending. According to EPI's report, universal pre-K would support 197,659 jobs a year and child care would support 341,711 jobs a year.

"Such investments in universal pre-K, child care, and long-term care would not only disproportionately provide jobs for women - and particularly for women of color - but would also enable millions to participate more fully in the workforce at higher productivity and to earn higher compensation," The report's author Adam Hersh, a visiting economist at EPI, wrote.

These different investments would not only provide support for many jobs but could help the US as it makes its way back from the pandemic's devastating impact on employment and the economy overall.

"​​Supporting more than 4.0 million in employment annually, the proposed Infrastructure Investment and Jobs Act, combined with Congress's anticipated budget reconciliation, would provide a significant boost to America's job market as it recovers from the pandemic economic shock and would sustain high-pressure labor markets critical to broadly rising wages," EPI wrote.

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