Economists Project Tight US Labor Market

Economists at the University of Michigan say in an annual forecast that they think the U.S. unemployment rate will stay below 5 percent next year. Five researchers at the university’s Department of Economics put out the report Thursday. They say they found a tightening U.S. labor market with a national economy forecast to add 3.7 million more jobs over the next two years. That’s a slower pace than over the last two years. But they say the predicted falling unemployment rate should help part-time workers who want full-time jobs. The researchers say they believe new light vehicle sales may have peaked and will slow gradually. They say that’s because their analysis found young adults own fewer vehicles because they can’t afford to own detached single-family homes.