Unemployment rate to hit 50-year low by end of 2022: Goldman Sachs

Goldman Sachs told clients on Sunday that the economic recovery from covid 19 would reaccelerate in the coming quarters, driving the unemployment rate back to a 50-year low by the end of next year.  After slowing down this summer, the economy will see a boost from the reopening of the service sector, consumer spending and inventory restocking. Goldman Sachs said that the job market will likely reach maximum employment by mid-2022 due to the "red-hot demand for workers. The unemployment rate is expected to fall from today's 4.6% to 3.7% by mid-year and 3.5% by the end of the year. At 3.5%, the unemployment rate would match the 50-year low that it reached in 2019 and repeated in early 2020. This would be a dramatic improvement from April 2020 when the pandemic erupted and the unemployment skyrocketed to 14.8%. 

Goldman Sachs is less optimistic about the prospects of luring Americans back into the workforce. The report said, "While labor force participation is likely to remain below its pre-pandemic trend, this looks structural or voluntary in an environment where job opportunities are plentiful."

Source: CNN