Definition:
This report lists the number of payroll jobs at all non-farm business establishments and government agencies. The unemployment rate, average hourly and weekly earnings, and the length of the average workweek are also listed in this report. This release is the single most closely watched economic statistic because of its timeliness, accuracy and its importance as an indicator of economic activity. Therefore, it plays a big role in influencing financial market psychology during the month.
Importance:
Non-farm payroll is a coincident indicator of economic growth. The greater the increase in employment, the faster the total economic growth. An increasing unemployment rate is associated with a contracting economy and declining interest rates. Conversely, a decreasing unemployment rate is associated with an expanding economy and potentially increasing interest rates. The fear is that wages will rise if the unemployment rate becomes too low and workers are hard to find. The economy is considered to be at full employment when unemployment is between 5.5% and 6.0%. If the average earnings is rising sharply, it may be an indication of potential inflation.When the average workweek is trending higher, it forecasts additional employment increases.
Source:
Bureau of Labor
Availability:
First Friday of the month at
Frequency:
Monthly.
Revisions:
The data are revised monthly for the prior month. These revisions can occasionally be substantial. There is also an annual revision in June.
Raw Data:
http://stats.bls.gov/news.release/empsit.toc.htm
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