Goldman Sachs economists David Mericle and Ronnie Walker estimate that the US jobless rate will peak at 25% versus the previous forecast of 15%, according to Bloomberg.
The forecast for the peak jobless rate has been revised higher following last Friday’s Nonfarm Payrolls report, which showed a record contraction in job growth in April and a rise in the jobless rate to 14.7% – the highest since the Great Depression era.
Key quotes
More workers will lose their jobs and a larger share of them will be classified as unemployed.
The rate would then remain near 10% at year-end, near the highs of the last recession.
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