Jobs are Bad

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