Don't get taken in by the absolutist lead in on labor markets. He is not really saying that labor is not subject to market forces, rather that labor is subject to a lot more social, political and historical forces that often outweigh simple market forces.
He is a bit too harsh on the economic impact of infrastructure, education and other social programs. He seems to mistake the difficulty of measuring impact and the short sighted nature of business planners for a lack of impact.
His over all point that government should be considering social policy as much as economic policy when it comes to jobs is a good one though. Job markets are simply too bad of markets. Factors other then simple economics are far too often the real drivers of wages and jobs.
Jay