Former CBO director and American Action Forum president Douglas Holtz-Eakin said Thursday in “Mornings with Maria” that the job market is “heated up” amid inflation and Americans are leaving their employment at “record rates”.
WITH HOT INFLATION, NEW TEACHER SALARIES ARE 11% LOWER THAN 30 YEARS AGO: REPORT
DOUGLAS HOLTZ-EAKIN: The job market is hot. It’s an all-time low number of initial claims, there’s no doubt about it, and we’ve seen other indicators of a hot job market… People are quitting at a record rate. Why? That’s 1.7 jobs for anyone looking for a job. The gap between actual employment and listed openings is five million greater than the labor force. There is no doubt that there is huge competition for manpower.
What I would remember is that it was the other side of the coin that gave us inflation. The only way to get the six percentage point increase in CPI inflation was to overstimulate the economy, it shows up in the labor market like those kind of numbers, but it shows up every day…d year to year. 25% increases in energy prices year over year, 8.4% increases in basic food, energy and housing that people have to spend…we are seeing that inflation is showing real legs because we see that the labor market remains so tight.
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