Greenspan: Increasing Hours, Decreasing Productivity Rate Bad Long-Term for U.S.
According to The Bureau of Labor Statistics' September jobs report, U.S. employers added 248,000 new jobs in September, dropping the national unemployment rate to 5.9% and hitting a six-year low.
Not all the data is positive, however, as the labor participation rate declined a tenth of a point to 62.7% and wages remained stagnant at an average of $24.53/hourly in the private sector.
Former Chairman of the Federal Reserve Alan Greenspan joined Maria Bartiromo on Sunday Morning Futures and said that the key issue in the intermediate and long-term economic future of our country is productivity.
A significant increase in hours worked - which is essentially what happened to create the good news in this most recent report - is indeed good news, but the downside is that it reveals a decrease in our productivity rate.
Greenspan explained that is what's causing the slow growth in wages and a lot of our economy's long-term problems.
"What concerns me most is that until we can rectify that problem, our economy's long-term outlook is not very propitious," Greenspan said.
Watch the clip from Sunday Morning Futures above.