So if earmarks go to a senators pet institute in his state, and that institute creates jobs with it, that’s not good? Seems like that would be a way for govt to create jobs.
Nope, or at least not as effectively as leaving the money in the hands of people that can invest in something useful instead. Remember, for every dollar the government taxes (steals from the private sector), 10 dollars worth of investment are removed from the economy. That's investment that would not just create jobs but would create goods that people want as well.
If a government-controlled job market were superior to the private sector, the Soviet Union would have been a success and the United States (Prior to its hard turn left) would have been a failure.
Instead of wasting future tax dollars on non-productive "make-work" jobs, it's better to leave those dollars in the private sector where they will be used in a much more beneficial manner.