Nonfarm payrolls are an important report on employment and employment conditions in the United States. It is presented monthly and is published on the first Friday of each month. It is used by economists and politicians to determine the current state of the economy and to predict future levels of economic activity.
Non-farm payroll is a monthly report generated and presented by the US Bureau of Labor Statistics and represents the total number of paid workers for any business in the United States. The report does not include government workers, private household jobs, nonprofit employees, and farm workers.
One of the most important aspects reported in Non-Farm Payrolls is the number of jobs added with respect to the previous month. The report also contains important information regarding the labor market that usually has a direct impact on the share market, the value of the dollar and the price of gold. Payrolls are an important tool to measure the current economic situation since the report includes about 80% of workers who produce almost the entire GDP of the United States.
The report also includes information regarding unemployment in the United States, which is presented through another indicator called the Unemployment Rate.
Non-Farm Payrolls show which sectors are generating the highest amount of employment, likewise, it shows the highest gains and losses of the different sectors.
The sectors that are taken into account in the Payroll include the services, health, financial activities, mining, construction, manufacturing, wholesale, retail, transportation, storage, information and hospital sectors.
Segmentation in Payroll sectors is often used by analysts to make predictions about which sectors or shares will have a rise.
Other important aspects of the report are the average working time per week and the hourly wage. Salary increases are also included in the report.
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