America’s unemployment rate is already very low. Goldman Sachs says it will go even lower.
The Wall Street investment bank says the unemployment rate is likely to fall to 3.5 percent by the end of 2019.
In a report issued last week, Goldman’s economists predicted that unemployment would keep falling because of increasing optimism helped along by tax cuts. Wage growth should also pick up, the bank said.
“Such a scenario would take the U.S. labor market into territory almost never seen outside of a major wartime mobilization.
The U.S. would have undergone a transformation from the “weakest labor market in postwar U.S. history” in the early years of the Obama administration to “one of the tightest.”
Goldman sees U.S. growth in the next couple of years as the highest among developed nations.