This study argues for the use of public service employment (PSE) as a portion of an anti-recessionary fiscal policy package to include public works and tax cuts. Keynesian economics, deficit spending in this case, serves as the study's underpinnings. Chapter 1 reviews public service employment's current low status as an anti-recessionary measure. Selected positive and negative comments on the efficacy of PSE are included. In the second chapter, the key arguments for and against intervention in a recession are analyzed. Comparison of deficit spending to personal finances and a view of the economy as self-equalizing are dismissed. In the third chapter, public works, tax cuts, and public service employment are reviewed for their attributes and drawbacks as part of an economic recovery program. Since tax cuts are widely accepted and public works has fairly broad support, little time is spent in developing justification for their use. The public service employment section includes more detail, which is intended to outline PSE's advantages and its drawbacks: significantly more jobs are created per $1 billion of public service expenditure than for either tax cuts or public works. The final chapter, while emphasizing the attractiveness of PSE as part of an anti-recessionary response, stresses that no single program is a panacea to the economic dislocation of a recession. A policy package using various mixes of the fiscal programs known to be effective when used in combination is needed to combat recession. (KC)