The U.S. unemployment rate would be higher if the government properly accounted for the recent surge in illegal immigration, according to a new analyst note from Goldman Sachs.
The Goldman strategists, led by chief economist Jan Hatzius, projected the immigration spike has actually increased the American labor force by about 1.1 million and household employment by 1 million.
When accounting for those figures, they found the unemployment rate in March would increase to 3.9% from the previously reported 3.8% figure.
The inconsistency in the data stems from the way that immigration is covered.
