SBE Council Chief Economist on January Jobs Data and Policy Threats

Raymond J. Keating, chief economist for the Small Business & Entrepreneurship Council (SBE Council), issued the following statement on the January jobs data:

"The employment losses indicated by the payroll survey certainly are disappointing. In 24 of the last 25 months, we have suffered job losses, according to this survey.

"However, for the first time since August, the household survey showed an increase in both employment and in the size of the labor force. The household survey is important as it better captures entrepreneurial activity. But it also is quite volatile from month to month. For example, while 3.9 million jobs have been lost over the past year, according to this survey, there have been months showing job gains. So, is the January data another blip or a sign of a turnaround?

"Given the many uncertainties persisting on the policy front - with some shift in focus now from health care and climate change regulatory initiatives to higher taxes and even more government spending - unfortunately there is little reason to expect robust entrepreneurial activity and job creation in the near term. Policy matters, and right now, policy threats and realities are working against entrepreneurship, investment, economic growth and job creation."