Lousy jobs report coming out on Friday showing the United States lost more than 300,000 jobs in January 2022. Hello, America! Not good.
The White House is working overtime trying to come up with some explanation as to why the “fastest economic growth in nearly four decades” misses the mark by more than 500,000 jobs in a single month [expected 200,000+ new jobs and will show a loss of 300,000+ jobs resulting in a 500,000 + jobs miss, ouch!]. This is a huuuuuuuuuuuuge miss.
In a storm of record inflation the Biden jobs record — primarily a dead cat bounce by all indications — was the only actual bright spot on the big picture.
A dead cat bounce has nothing to do with Catwoman, who is very much alive and contemplating a remake of her iconic movie. It is a technical term of financial art meaning that even a cat dropped from a great height bounces upward when it hits rock bottom. [It is presumed the cat dies from the fall.]
But, that is not the story I want to tell you today.
What’s the story, Big Red Car?
The story today, the Big Tell, is that Governors of individual states by their philosophy of governance are impacting the jobs market in their states big time!
1. Texas, Arizona, Utah, and Idaho have all regained their pre-Pandemic level of jobs and have exceeded that level.
These states have more folks working today than they had before the China Virus Pandemic hit. Boom!
2. New York, California, Michigan, the District of Columbia, and Vermont are still struggling to replace jobs.
New York – minus 8% as compared to pre-Pandemic jobs level
Vermont – minus 5.9%
District of Columbia – minus 5.7%
Michigan – minus 4.8%
California – minus 4.7%
Why, Big Red Car?
The “why” is simple — the winners are all governed by Republican Governors who have unleashed their people from mask mandates and lockdowns.
The losers are all governed by Democrat Governors.
Bottom line it, Big Red Car
State economies are controlled by Governors.
If your Governor frees the state from mask mandates and lockdowns that don’t bloody work, then job growth will accelerate resulting in jobs, jobs, jobs.
In the case of Texas, there is also a meaningful migratory influx of folks moving to the Lone Star State.
But, hey, what the Hell do I really know anyway? I’m just a Big Red Car.
