DEFINITION of 'Employment Act Of 1946'
An act of legislation enacted by the United States Congress that charged the government with the responsibility of maintaining a high employment level of labor and price stability. These two goals are in direct conflict with each other, because as full employment is achieved consistently over time, demand-pull inflation will result.
BREAKING DOWN 'Employment Act Of 1946'
The employment act of 1946, which was enacted under President Truman, resulted in the Council of Economic Advisors. The council is charged with assisting the President in preparing the annual economic report, advising the President on certain policies, and collect economic data and report on the economic growth and trends within the U.S. economy.