The new job numbers released today may not be great — fewer jobs were created than expected, 113,000 in December while the economy needs 120,000 per month just to keep up with new entries into the job market — but there is a silver lining.
All the jobs created were in the private sector, while state and local governments continue to shed jobs. The decline in public employment is obviously painful for government workers who lose their jobs, but it’s good for everyone else. After years of profligate growth in the public sector, which required higher taxes and drained economic resources from the private sector, we’re finally seeing some enforced restraint. And a smaller government workforce will mean less in the coffers of public-employee unions and thus less support for candidates who favor bigger government.