After Goldman Sachs (NYSE:GS) seeing a report contradicting their original projections of U.S. payrolls adding 275,000 jobs for March, Goldman Sachs revised their numbers down 75,000 to 200,000.
Job payrolls plunged in February by 36,000, but economists on average looked for a more realistic number of 190,000 jobs added to the payrolls; a much lower figure that Goldman had thrown out there.
Goldman did recently say in a report that their U.S. payroll estimates did have some downside risks to them, and of course now that’s been confirmed with the revision.
The payroll report for March will be released Friday morning at 8:30 a.m. EST, and is the most anticipated source of economic data, as it reflects not just jobs added by the government, which in this case are temporary, but the private sector as well.
We’ll of course hear the drums roll over the number of jobs added to the economy, but we pretty much have to eliminate the temporary jobs of the census workers as being irrelevant over the long term, and adding nothing to the economy but a temporary surge that comes around once a decade.
What’s more important and essential is the numbers of jobs added in the private sector, which is unknown at this time and hard to gauge. The report yesterday from ADP Employer Services revealed 23,000 jobs had been shed in the private sector, underscoring the ongoing recessionary pressures we remain under.
If all we have is government bloating from hiring to make it look like there’s an economic recovery, and the private sector continues to shrink, there are less taxes to pay for it all, and the fundamentals of the economy have yet to change. In other words, we’re still in a recession, as there’s no such thing as a jobless recovery no matter how that concept is attempted to be spun.
