Goldman Sees ‘Modest Drag’ on US Jobs From California Wildfires

Firefighters from the California Conservation Corps work to contain the Eaton Fire in Altadena on Jan. 13.

Photographer: Benjamin Fanjoy/Bloomberg
Lock
This article is for subscribers only.

Deadly wildfires in Los Angeles County will likely result in only a “modest drag” on US jobs growth, even as the blazes shape as one of the costliest natural disasters in US history, according to Goldman Sachs Group Inc.

Goldman economists led by Jan Hatzius expect a roughly 15,000-25,000 hit on non-farm payroll growth in the January employment report, in part because only about 0.5% of California’s population is currently under evacuation order or warning, according to a research a note.