Non-Farm Payrolls (NFP)
Quick Definition
Monthly U.S. jobs report measuring employment changes excluding farm workers, government employees, and nonprofit organization employees.
Key Takeaways
- Released on the first Friday of each month by the Bureau of Labor Statistics
- One of the most market-moving economic indicators globally
- Influences Federal Reserve monetary policy decisions
- Excludes farm, government, private household, and nonprofit workers
- Includes average hourly earnings data crucial for inflation assessment
What Is Non-Farm Payrolls (NFP)?
Non-Farm Payrolls (NFP) is a key economic indicator released monthly by the Bureau of Labor Statistics (BLS) that measures the change in the number of employed people in the U.S., excluding farm workers, government employees, private household employees, and employees of nonprofit organizations. NFP is one of the most market-moving economic releases, often causing significant volatility in stocks, bonds, and currencies upon publication. The report includes data on total employment, unemployment rate, average hourly earnings, and average workweek hours, providing a comprehensive snapshot of labor market health.
Non-Farm Payrolls (NFP) Example
- 1A stronger-than-expected NFP report of 300,000 new jobs caused the S&P 500 to rally as investors gained confidence in economic growth.
- 2Forex traders closely watch NFP releases because a weak jobs number can signal potential Fed rate cuts, weakening the dollar.
- 3The NFP miss of only 100,000 jobs versus the 200,000 expected led to a sharp decline in Treasury yields.
Related Terms
Unemployment Rate
The percentage of the labor force that is jobless and actively seeking employment, a key indicator of economic health.
Federal Reserve (The Fed)
The central banking system of the United States, responsible for monetary policy, bank regulation, and financial stability.
GDP (Gross Domestic Product)
The total monetary value of all finished goods and services produced within a country's borders in a specific time period.
Consumer Confidence Index (CCI)
A survey-based economic indicator measuring consumers' optimism about the economy, personal finances, and spending intentions.
Leading Economic Indicators
Statistical measures that tend to change before the overall economy shifts, used to predict future economic activity.
Recession
A significant, widespread, and prolonged decline in economic activity, commonly defined as two consecutive quarters of negative GDP growth.
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