Goldman Sachs economists forecast unemployment rate will reach 25 percent

Economists from Goldman Sachs are now forecasting that the U.S. unemployment rate during the coronavirus crisis after jumping to 14.7 percent in April will peak at 25 percent, on par with the Great Depression.

Goldman Sachs released a report Wednesday projecting this jaw-dropping peak unemployment rate after in March predicting it would peak at 15 percent, CNN reports. During the Great Depression, the unemployment rate peaked at 24.9 percent. But when it comes to the "real jobless rate" that takes into account those who have given up looking for work, Goldman Sachs projected this will peak at 35 percent, up from 22.8 percent in April. Goldman Sachs had previously been projecting this rate would peak at 29 percent.

"Prolonged weakness could cause severe scarring effects such as permanent layoffs and business closures that delay the recovery," the report said.

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Last week's Labor Department report showing that the unemployment rate reached 14.7 percent in April came following data showing that more than 33 million Americans filed initial unemployment claims over the course of seven weeks, as businesses around the country closed their doors during the pandemic. By the end of 2020, Goldman said it projects the unemployment rate will end up being about 10 percent, per CBS News, and the economists warned, "A return to the pre-virus rate is likely years away."