Dallas Fed President Robert Kaplan expects positive job growth in June
The unemployment rate dropped unexpectedly in May
The U.S. will see positive job growth in June and July, Dallas Federal Reserve Bank President Robert Kaplan said Sunday.
"We're going to get positive job growth in June, July and from here," Kaplan told "Face the Nation." "The issue we have, as I think the chairman talked about a few days ago, is even with that growth, we're going to end the year with an elevated unemployment rate. And that depending on how fast the service sector comes back and people re-engage, we're still going to have an elevated level of unemployment maybe as high, based on my forecast, of 8 percent or more."
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Kaplan had previously predicted that unemployment could soar as high as 20 percent. The U.S. unemployment rate unexpectedly dropped to 13.3 percent in May, although some experts warn the actual rate could be a few points higher because of the way the numbers were categorized.
Robert Kaplan, president and chief executive officer of Federal Reserve Bank of Dallas, speaks during the International Economic Forum of the Americas (IEFA) Toronto Global Forum in Toronto, Ontario, Canada, on Wednesday, Sept. 4, 2019. Photographer:
"We're on our way down right now," Kaplan said, although he cautioned: "Some people won't be able to go back to their old jobs and will have to find new jobs and this is why skill training, helping people find new jobs is going to be also a big part of this effort."
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White House economic adviser Larry Kudlow said Sunday he believed U.S. unemployment would be below 10 percent by the end of the year, in line with Kaplan's forecast.
"A number of forecasters are now talking about that and yes, I think you're going to see huge job gains in each of the next several months, which is certainly going to get us off on the right foot," Kudlow told "Sunday Morning Futures."