Former Federal Reserve Chairman Alan Greenspan says America now has the tightest labor market he's ever seen.
"That means if rates go up, ultimately prices take hold," Greenspan told CNBC.
"But concurrently, we have a very slow productivity increase," he said.
To be sure, U.S. filings for unemployment benefits fell last week and continuing claims dropped to the lowest level since 1973, indicating the job market remains solid, Labor Department figures showed Thursday.
As a result, that is having a significant impact on GDP growth.
"And, therefore, it's ultimately the source of populism, which has infected the United States," he said.
U.S. employers posted the most jobs in two decades in August, and hiring also reached a record high, fresh evidence that companies are desperate to staff up amid solid economic growth.
To be sure, job openings rose a slight 0.8 percent to 7.14 million, the highest on records dating back to December 2000, the Labor Department said Tuesday. That is also far more than the 6.2 million of people who were unemployed that month.
U.S. employers posted the most jobs in two decades in August, and hiring also reached a record high, fresh evidence that companies are desperate to staff up amid solid economic growth, the Associated Press reported.
The number of available jobs has swamped the number of unemployed for five straight months. Hiring has been solid, which has pushed down the unemployment rate to a nearly five-decade low of 3.7 percent. Strong demand for workers when so few are out of work may force more companies to raise pay in the coming months.
President Donald Trump celebrated the report on Twitter, tweeting: “Incredible number just out... Astonishing! It’s all working!” Trump added that the stock market was “up big” and referenced “Strong Profits.”
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