(Bloomberg) — The Obama administration is predicting that the unemployment rate will fall this year to the lowest level since 2007 as stronger economic growth boosts hiring.

The jobless rate will average 5.4 percent in 2015, according to an administration official, citing projections in President Barack Obama's budget proposal. That's lower than the 5.7 percent the Obama administration predicted in July and down from an average of 6.2 percent last year.

The world's largest economy will grow 3.1 percent in 2015 from a year earlier, said the official, up from a 2.4 percent expansion last year and slower than the 3.5 percent expansion projected in July. Yields on 10-year Treasury notes, which were at 1.64 percent late last week, will average 2.8 percent this year, compared with 3.3 percent projected for 2015 in July, said the official, who briefed reporters on condition of anonymity.