Goldman Sachs Predicts Staggering Rise In Jobless Claims

Unemployment

The unemployment claims in the U.S. could surge to a record 37 million by the end of May, according to a Goldman Sachs (NYSE:GS) analysis, Forbes reported on Wednesday.

With businesses shutting down because of the COVID-19 crisis, the investment firm is now predicting that an additional 5.5 million jobless claims will be filed Thursday, bringing the total number of unemployment to 22.3 million over a month. The number of workers applying for unemployment benefits spiked to a record 6.65 million claims in the week ended March 28.

Since the coronavirus-containment efforts began, nearly 17 million people have applied for initial jobless benefits, Labor Department data shows.

Goldman also said that the monthly unemployment rate will rise to at least 15% in the third quarter.

The forecast shouldn’t come as a surprise. According to a Wall Street Journal report, even corporate lawyers are now “seeing jobs dry up”, confirming that the coronavirus pandemic has brought the U.S. economy to a shuddering halt.

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