A reliable source for recession forecasting is the unemployment rate (UER), which can provide signals for the beginnings and ends of recessions.
The February 2020 UER is 3.5%, signifying that no recession was imminent. However, if the March 2020 UER is 3.9% then a recession will be signaled, according to the model.
According to the Washington Post more than a million workers are expected to lose their jobs by the end of March, a dramatic turnaround from February.
Goldman Sachs estimates that 2.25 million Americans filed for their first week of unemployment benefits in the week ending March 20.
If the number of unemployed rises only by one million than the March UER will be 4.1%, if it rises by 2.25 million it will be 4.9%.
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