Goldman Sachs Group Inc. raised its forecast for U.S. payrolls in May to 600,000 from a prior estimate of 500,000, the company’s chief U.S. economist Jan Hatzius wrote in a note today to clients.
The government probably hired 450,000 temporary workers to conduct the census, 100,000 more than the firm’s previous estimate, Hatzius said. Goldman’s estimate for private sector hiring held at 150,000. It also forecasts the unemployment rate will fall to 9.7 percent from 9.9 percent.
Economists surveyed by Bloomberg News forecast the Labor Department will report tomorrow that payrolls climbed by 523,000 in May, boosted by census hiring. Estimates ranged from 220,000 to 750,000.
Private payrolls probably rose 178,000 after a gain of 231,000 in April, according to the survey median. The unemployment rate fell to 9.8 percent, the survey showed.