Yesterday,
the U.S. Department of Labor released the job and unemployment report for
January. According to the report,
nonfarm payrolls (jobs) increased by 517,000.
Economic analysts had estimated a growth of only 187,000 prior to the
official numbers. Additionally, the
unemployment rate fell to 3.4% versus the estimate for 3.6%. This is the lowest
jobless level since May 1969.
Silly
me. I have always thought that adding
jobs was good news. This is not so. Upon hearing the news of more jobs than
anticipated, the U.S. stock indexes dropped dramatically.
Adding
jobs is bad.
At
present, central banks are elevating interest rates in an effort to tame
inflation. In this scheme, slowing the
economy and not putting money in worker’s pockets is a good thing.
Apparently,
the last thing we need right now is a good economy, as indicated by more jobs. Wall Street is fearful good job numbers will
trigger another interest rate hike.
High
interest is bad for investments.
As I
think about this, I recall a construction superintendent I worked with on several
jobs. As a joke, he would often walk up
to me on the jobsite, stand beside me for a moment, then say, “I get so
confused,” and walk away again without saying another word.
I believe
this is how the economy works.
So,
in the end, none of it makes sense to me and I am going to go watch more
documentaries about serial killers.
—Mitchell
Hegman