Goldman Sachs: Unemployment will drop to lowest since 1969

The unemployment rate is likely to tumble to 3.5% by the end of 2019, Goldman Sachs predicted in a report published late Friday.

The last time unemployment was 3.5% was December 1969, according to the Bureau of Labor Statistics.

“Such a scenario would take the U.S. labor market into territory almost never seen outside of a major wartime mobilization,” Goldman Sachs chief economist Jan Hatzius wrote.

It’s a remarkable transformation given the millions of jobs lost and 10% unemployment experienced in the aftermath of the Great Recession.

Hatzius said 3.5% unemployment would symbolize an evolution from the “weakest labor market in postwar U.S. history to one of the tightest.” Read more…

Goldman Sachs: Unemployment will drop to lowest since 1969