Friday, November 2, 2007

Jobs Report

The last series of Labour Force Surveys have been strong, (see here for today's release) I remain leery of just how good the news purportedly is.

Specifically, because of the runup in employment over the last month, 60% of it is government jobs. In my mind, these don't stand on equal footing with jobs created in the private market. Government hiring is, to a certain degree, exogenous from the state of the economy. When employment growth relies to that extent on government hiring, it rings hollow.

No comments: