According to Bloomberg: Economists forecast that the economy added 226,000 jobs in May, down from 223,000 in April, and unemployment rate is expected to stay unchanged at 5.4%.
But Goldman Sachs' Kris Dawsey breaks down the firm's expectations for the jobs report:
- The four-week moving average of initial jobless claims between the April
and May reference periods for the jobs report fell by 19,000.
- Mining sector job losses may persist and continue to be a drag. That's even though the oil rig count is slowly balancing out.
- The consensus forecast has overestimated jobs growth in May for the last few years. Specifically, the average consensus error in May over the past five years has been -56,000.
- ADP report showed that private payrolls expanded by 201,000 in May, beating forecasts by 1,000.
