Unemployment rate could reach 25%, rivaling the Great Depression, says Goldman Sachs


Economists expect relatively rapid recovery as many U.S. states prepare to reopen businesses closed by COVID-19[female[feminine. But the historic slump that put some 30 million unemployed Americans is likely to get worse – much worse – before it gets better, according to Goldman Sachs.

The investment bank predicts in a new report that unemployment, which jumped to nearly 15% in April, could rise to 25% this year. This would be equivalent to the maximum unemployment rate during the Great Depression. More than a third of American workers could be unemployed, including those who are too discouraged to look for work and those who can only find part-time work.

” [P]Prolonged weakness could lead to serious after-effects such as permanent layoffs and business closings that delay recovery, “said economists at Goldman Sachs.


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