Goldman Sachs: Wednesday's U.S. employment report may exaggerate the degree of economic weakness

The U.S. Bureau of Labor Statistics will release preliminary estimates for the benchmark revision of non-farm employment data from April 2023 to March 2024 on Wednesday. Morgan Stanley predicts that employment may be reduced by 600,000, with a monthly decrease of 50,000 people. However, Goldman Sachs believes this downward revision may overstate the degree of economic weakness.

Goldman Sachs' economic research team stated that although the revision might reduce monthly job growth from 250,000 to between 165,000 and 200,000 jobs, "real" growth could be closer to between 200,000 and 240,000 jobs. They pointed out that the data does not include illegal immigrants who contribute to job growth. This data release could trigger market volatility; Goldman advises Bitcoin short sellers to remain cautious.