Recipients report that about 640,000 jobs were created or retained with ARRA funding through September 2009. However, such reports do not provide a comprehensive estimate of the law’s impact on employment in the United States. That impact may be higher or lower than the reported number for several reasons (in addition to any issues about the quality of the data in the reports). First, it is impossible to determine how many of the reported jobs would have existed in the absence of the stimulus package. Second, the reports filed by recipients measure only the jobs created by employers who received ARRA funding directly or by their immediate subcontractors (so-called primary and secondary recipients), not by lower-level subcontractors. Third, the reports do not attempt to measure the number of jobs that may have been created or retained indirectly as greater income for recipients and their employees boosted demand for products and services. Fourth, the recipients’ reports cover only certain appropriations made under ARRA, which encompass only about one-quarter of the total amount spent by the government or conveyed through tax reductions in ARRA through September 2009. The reports do not measure the effects of other provisions of the stimulus package, such as tax cuts and transfer payments to individuals.
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