Millions Of Americans Set To Lose Their Jobs

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( – On Friday, the Congressional Budget Office (CBO) released a report forecasting an increase in unemployment in the United States from 3.9 to 4.4 by the end of 2024. This could signal possible job losses for millions of people and could lead to the gross domestic product (GDP) contracting.

This forecast could affect as many as 7.4 million Americans who are currently employed. The CBO further stated that this could be the result of changes and adjustments in policy and the economy, in their report titled “Current View of the Economy From 2023 to 2025.”

The nonpartisan office has noted that in the next year, consumer spending and nonresidential investments are expected to contract which could lead to the economy decelerating. It further pointed out that real GDP growth was likely to drop from 2.5 percent to 1.5 percent in 2024.

In early December 202,000 new people filed for unemployment benefits, while another 1.87 million people continued to claim unemployment benefits.

The forecast of the Federal Reserve is closely aligned with the projections of CBO and the economic growth that is anticipated in 2024. The Fed has projected that growth would slow down to 1.4 percent but that in the following years, it is going to increase its pace again. However, the projection has a more optimistic view of unemployment when compared to the CBO, as they have forecasted that the increase by the end of the next year would be 4.1 percent.

In the CBO report, it stated that the Fed would begin to reduce interest rates at some point after March 2024.

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