Goldman: Unemployment Rate May Reach 10.5% by End of 2010

According to Goldman Sachs Group Inc., the jobless rate in the U.S. will apparently rise to 10.5 percent by the end of 2010, as the greatest economy tries to recover from the worst recession in over sixty years. 

 A Goldman economist in New York said today “It will take a few years to come back to ‘normal,’ mid-single-digit unemployment rates despite the fact that the economic and labor market recovery proves to be very strong” .“The recession and financial crisis have been a disaster for the U.S. labor market.”

 Loss of employment climbed last month to 9.8 percent, the highest level since over two decades. President Obama said earlier this month he’s working to “explore any and all additional measures” to increase growth. Rising job losses also underscore forecasts for the Federal Reserve to keep its benchmark interest rate near zero through next year.

September’s losses bring total jobs lost since the recession commenced in December 2007 to 7.2 million, the greatest fall since the Great Depression.