Structure, cost, and performance of the Job Opportunities Program

Created in Dec., 1974, the Job Opportunities Program (JOP) was intended to ameliorate recessionary unemployment problems. Intended to focus on the long-term unemployed, characteristics of the program are: 1. It is project-based. 2. It involves subcontracts to the private sector. 3. It has made heavy investments in nonmetropolitan areas. 4. It has improved physical assets which may have long-term value. Rehabilitation activities have been undertaken most often as they usually involve discrete, labor-intensive work which can be completed relatively quickly. Although the JOP fell short of planned performance, it came closer than prior Economic Development Administration employment-generating programs. The $758 million spent on JOP overstates the true cost to taxpayers as governments get back some of the initial investment in increased taxes and decreased transfer payments. The JOP was beneficial, and the real cost was much less than that initially appropriated. The program is thought to have worked well in terms of countercyclical aid to the areas that needed help the most.