GOldman Sachs NFP preview

Analysts at Goldman Sachs have prepared their preview of US Non-farm Payrolls if the Friday shindig, with the investment bank calling for a slightly improved reading in the 

Key highlights

Headline change expected +198K, prior +157K.

Unemployment rate expected 3.8%, prior 3.9%.

Average hourly earnings expected +0.2% m/m, prior +0.3%.

Average hourly earnings expected +2.7% y/y, prior +2.7%

"While continued strength in employment surveys and jobless claims data suggest underlying labor demand remains solid, we expect a Drag of around 40k from negative residual seasonality
We estimate the unemployment rate fell one tenth to 3.8%
We expect average hourly earnings to increase 0.2% month over month and 2.7% year over year "