Goldman’s Hatzius Says US Payroll Gains Overstate Job Growth

Recent gains in US payrolls, including a stronger-than-expected June advance, probably exaggerate current employment growth, according to Goldman Sachs Group Inc.

US payrolls climbed 372,000 last month, the Labor Department’s establishment survey showed Friday, and averaged 375,000 from April through June. The June reading beat expectations and helped alleviate concerns of an imminent recession.

However, the department’s separate survey of households showed a 315,000 drop in June employment. And that source of data showed employment has fallen by about 116,000 on average over the past three months.

“While the household survey is much noisier than the establishment survey on a ...