Definition of job creation

The term "job creation" originated in the 1960s during President John F. Kennedy's administration as part of his New Frontier policy. Kennedy's goal was to address the high levels of unemployment in the United States through a program called the National Fund for Communities, which aimed to fund infrastructure projects that would, in turn, create new jobs. The phrase "job creation" became a central part of economic development policy during President Lyndon B. Johnson's administration with the passage of the Economic Opportunity Act of 1964, commonly known as the War on Poverty. The act established the Job Corps, a program for low-income youth that provided job training and education, with the aim of providing participants with the skills they needed to secure employment and, therefore, contribute to job creation in their communities. The concept of "job creation" gained wider currency during President Bill Clinton's administration with the passage of the North American Free Trade Agreement (NAFTA) in 1994. While NAFTA was contentious, with critics arguing that it would lead to job losses, proponents of the agreement emphasized that it would also generate new economic opportunities and, therefore, create jobs. Today, the phrase "job creation" is commonly used in political and business circles as a shorthand for policies or initiatives that aim to stimulate economic growth and create new employment opportunities. Critics, however, argue that the term ignores the fact that job creation is often tied to automation, outsourcing, and other trends that may ultimately lead to job displacement, as well as the fact that many new jobs may be low-wage and lack benefits.