Economists Predict 2026: Inflation, Jobs, and Growth

In 2025, a group of economists, led by Joseph Davis at Vanguard, made predictions that turned out to be quite accurate. They forecasted:

• An unemployment rate of 4.4%
• An average of 97,500 new jobs per month
• A 3% increase in the Consumer Price Index

As the year comes to a close, these numbers are looking pretty spot on.

Looking Ahead to 2026

The economists are expecting some challenges ahead:

• Inflation is likely to stick around, making things more expensive.
• On the bright side, the job market is expected to improve, and the economy should keep growing steadily.
• However, there are some uncertainties, like the impact of President Donald Trump's tariffs and immigration policies, which could affect prices and wages.

Housing Market Struggles

The housing market is struggling with high costs and a lack of supply. President Trump has promised aggressive reforms to address these issues, but the details are still unclear. One thing is for sure: the housing market is in need of some serious help.