University of Michigan economists predict higher wages, more jobs in US
In 2016, the U.S. economy will grow at the fastest pace in 10 years, according to the University of Michigan's annual economic forecast.
They're also predicting annual unemployment will drop below 5% next year, for the first time since 2007.
The forecasters say nearly five million new jobs will be added over the next couple of years, which could be especially good news for part-time workers seeking full-time jobs.
“If you’re working double jobs at different establishments, you may be able to switch to a single job or get more hours at one place that pays more,” says Daniil Manaenkov, a University of Michigan economist.
Some workers should see their wages go up, too.
“Wage growth has really been a disappointing aspect of the recovery so far,” says economist Gabriel Ehrlich. “As the labor market continues to tighten, we see workers regaining some of that bargaining power that they haven’t had for the last several years. So we are forecasting wages to start to increase more rapidly than they have been.”
The forecasters also predict the Fed will raise interest rates next month, for the first time in nearly a decade.