In the clouds around the silver lining department, the reported downside of yesterday's otherwise pleasing employment report was the relatively strong wage growth in January, a development that presumably brings with it renewed fears of inflation. That story is covered by the Capital Spectator, and by Barry Ritholtz, but here is the basic idea, from MarketWatch:
[Al Goldman, chief market strategist at AG Edwards] said a tight labor market worries the central bank as companies have to offer higher salaries to attract workers, which leads to wage inflation: "And the Fed is in business for one reason only, and that is to try and control inflation."
I highly recommend Tim Duy's take on this, posted at Economist's View. Here are my own words of warning: It is unit labor costs -- labor compensation adjusted for productivity growth -- that reflect the measure of labor payments important for detemining price-level growth. Better to not jump to conclusions until we actually see the data that matters.