World News

Goldman Sachs ups weekly U.S. jobless claim estimate to six million

LONDON (Reuters) – Goldman Sachs said on Thursday it expected the U.S. jobless claims to jump to a record 6 million for March 22-28 week as lockdowns of cities would mean there is even less likelihood of hiring than during a recession.

According to a Reuters survey of economists, initial claims for state unemployment benefits probably climbed to a seasonally adjusted 3.5 million for the week ended March 28. Estimates in the survey were as high as 5.25 million.

Goldman said it expected claims to remain very elevated in the coming weeks.

“Jobless claims will be the timeliest hard data point for assessing the depth of the recession and catching the start of the recovery,” Goldman Sachs economists wrote in a note to clients.

(Reporting by Thyagaraju Adinarayan, editing by Maiya Keidan)