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US unemployment to remain in double digits until November election, White House predicts

A top economic adviser to Donald Trump has predicted that the unemployment rate could still be in double digits by the 2020 presidential election in November, as the number of unemployed Americans continues to creep upward due to the coronavirus pandemic.

Trump administration officials expect the unemployment rate to eclipse 20 per cent by the end of May, the highest such figure since the Great Depression, senior White House economic adviser Kevin Hassett said in an interview with CNN on Sunday.

"Unemployment will be something that moves back slower," Mr Hassett said.

Mr Hassett said while he expects the unemployment rate to reach an inflection point in the coming weeks and that it could improve more rapidly than current projections, "you're going to be starting at a number in the twenties and working your way down," which will be a slow process.

"If there were a vaccine in July, then I'd be way more optimistic" about getting the unemployment rate back below 10 per cent, Mr Hassett said.

The unemployment rate reached 14.7 per cent in April as businesses continued to shutter over health concerns related to Covid-19.

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