What is Employment Act Of 1946?

Legal Definition
The Employment Act of 1946 ch. 33, section 2, 60 Stat. 23, codified as 15 U.S.C. § 1021, is a United States federal law. Its main purpose was to lay the responsibility of economic stability of inflation and unemployment onto the federal government. The Act stated: it was the "continuing policy and responsibility" of the federal government to:

coordinate and utilize all its plans, functions, and resources . . . to foster and promote free competitive enterprise and the general welfare; conditions under which there will be afforded useful employment for those able, willing, and seeking to work; and to promote maximum employment, production, and purchasing power.

Liberals wanted an emphasis on "full employment" but conservatives were in control and they did not get it. Stein (1969) notes, "The failure to pass a 'Full Employment Act' is as significant as the decision to pass the Employment Act." The Act also created the Council of Economic Advisers, attached to the White House, which provides analysis and recommendations, as well as the Joint Economic Committee. In practice, the government has relied on automatic stabilizers and Federal Reserve policy for macroeconomic management, while the Council of Economic Advisers has focused primarily on discussions of microeconomic issues.
-- Wikipedia