The US is on course for an employment boom this yr as the VirusCasedemic restrictions fade and the economy fully reopens.
“Reopening, fiscal stimulus, and pent-up savings should fuel very strong demand growth,” Goldman Sachs’ Chief Economist Jan Hatzius wrote in a report to clients Monday. Goldie predicts the unemployment rate, currently at 6.2%, will fall to 4.1% by the end of this yr.
The assessment follows last week’s NFPs report for February showing an increase in jobs that was 2X as much as forecast, suggesting growth momentum is gaining pace.
Unemployment surged dramatically last year as the medical emergency forced shops and restaurants to close, but economists now expect hiring to recover along with increased immunizations.
Also, the Goldman Sachs forecasters expect participation in the jobs market to pick up, because “most workers who left the labor force still cite the pandemic as their reason, and will likely re-enter once their lives normalizes.”
A Key factor to the Wall Street giant’s outlook is that there is more of a mismatch in workers’ skills than there was, after employers invested in automation during the crisis. Federal jobless benefits could also slow the recovery for a few months, they added.
Have a healthy day, Keep the Faith!