Economics
Unemployment Likely to Remain High Through 2021, Fed Study Says
- Quick return to low levels would require historic hiring pace
- San Francisco Fed economists outline three scenarios
A cyclist rides past shops temporarily closed in New Orleans on May 16.
Photographer: Bryan Tarnowski/BloombergThis article is for subscribers only.
While uncertainty abounds in economic forecasting, U.S. unemployment will likely stay “severely” elevated well into next year, according to a report by two economists at the Federal Reserve Bank of San Francisco.
The jobless rate has already climbed to historic levels in just two months following the onset of the coronavirus-induced economic lockdown. A return to low unemployment will depend on how quickly and successfully the virus is contained, Nicolas Petrosky-Nadeau and Robert Valletta wrote in a letter posted Monday on the bank’s website.