In the United States, a figure compiled by the Bureau of Labor Statistics representing the total number of working-age persons working in all professions, except the following: government employees, household employees, many nonprofit employees, and farm employees. At any given time, this number represents approximately 80% of the American workforce currently employed. The non-farm payroll statistic is reported monthly, on the first Friday of the month, and is used to assist government policy makers and economists determine the current state of the economy and predict future levels of economic activity. Economists use the non-farm payroll to help gauge the state of the overall economy. Increases in employment means both that businesses are hiring which means they are growing and that those newly employed people have money to spend on goods and services, further fueling growth. The opposite of this is true for decreases in employment.
While the overall number of jobs added or lost in the economy is obviously an important current indicator of what the economic situation is, the report also includes several other pieces of data that can move financial markets:
While the overall number of jobs added or lost in the economy is obviously an important current indicator of what the economic situation is, the report also includes several other pieces of data that can move financial markets:
- What the unemployment rate is in the economy as a percentage of the overall workforce.
- What sectors the increase or decrease in jobs came from.
- Average hourly earnings.
- Revisions of previous nonfarm payrolls releases
This indicator is important enough to be considered when initiating Forex.Jika Investment Non-Farm Payroll to rise, the USD will strengthen, due to the increase in the amount paid to the workers, reflecting the number of jobs available to residents. By increasing the number of jobs available, it will create economic instability in that country. Stabilizing the economy will make the value of the respective country's currency will rise. Thus, if the Non Farm increases, the USD will rise. The opposite is true for an unexpectedly high NFP. NFP is released at 8:30am EST on the first Friday of every month and tends to cause an average move of 124 pips in the EUR/USD
