Why there are a lot of jobs in spite of rising interest rates

Some people are scratching their heads wondering why there are still so many jobs in spite of high interest rates. I just thought of a reason. Lowering interest rates is a bad way to increase the number of jobs.

Up until the pandemic, low interest has basically gone into inflating home values and other assets; not as much into creating jobs. Now that interest rates are higher, asset values are starting to calm down, but job creation remains strong; so far at least.

Conservatives tend to think private enterprise is better at creating jobs than government. That philosophy has been a big factor behind trying to create jobs via low interest rates. It hasn't worked that well. To a large extent, private entrepreneurs have held onto their money and acted to protect their asset values. This doesn't lead to that much job creation. More recently, there has been a surge in government spending, covid relief, infrastructure and stimulus spending. I think that might be a better way to create jobs; even in the private sector as private companies are often mostly just vendors supplying government contracts.

The true private market has been more sluggish in past years due to many factors; including caution about risking capital on new ventures. There's been some new ventures and innovation in private enterprise, but also a lot of aversion to risk. Conservatives would say that aversion to risk is mostly caused by layers and layers of government regulation. Yes, that's a big factor, but not everyone wants what private enterprise brings to their neighborhood. One example of a restrictive regulation, of course, is single family zoning.

Now that there's more talk about the housing shortage, I am noticing more multi family construction going on in the past 3, or so, years. This, being a factor leading to the boom in construction jobs and a shortage of skilled labor in the carpentry field.

Job creation has been pretty strong during the Biden Presidency. Conservatives are wondering "how can that be?" Some folks are predicting a crash to come soon due, in part, to the rising interest rates. They also don't trust "Bidenomics."

Who knows, but so far, the job picture still looks pretty rosy and I think rising interest rates hasn't detracted much from job creation. Rising interest rates may mean less people making a living by flipping real estate.