Nonfarm payroll is a term used in the U. Proprietors are also excluded. The headline figure, the change in the total number of nonfarm payrolls compared to the previous month, is used as a gauge of economic health.
In February , preliminary data shows that nonfarm payrolls rose by a seasonally adjusted , to The change marks the 77th straight month of job growth. Nonfarm payrolls rose by , in January also preliminary and , in February Nonfarm payrolls are reported on the first Friday of the following month, with occasional exceptions, at 8: The data are used to assist policymakers and economists with determining the current state of the economy and predicting future levels of economic activity.
The major statistic reported from the nonfarm payroll report is the number of additional jobs added from the previous month. The report also contains many valuable insights into the labor force that have a direct impact on the stock market , the value of the U. The nonfarm payroll report is a major tool used to determine the overall health of the economy. The nonfarm payroll report shows statistics of unemployment for the U. This is communicated through an overall unemployment rate , a long term unemployment rate and a youth unemployment rate.
The labor force participation rate is also a key statistic used to determine the true unemployment rate of the country. Statistics from the nonfarm payroll also show which sectors are generating the most employment additions. The report shows large gains and losses among the sectors. The list of sectors from the report include professional and business services, health care, financial activities, mining, construction, manufacturing, wholesale trade , retail trade, transportation and warehousing , information, and leisure and hospitality.
This breakdown by sector is often used by stock analysts to predict which stocks and sectors have strong earnings reports. The report also contains additional items such as the average work week and average hourly earnings. Wage growth is communicated with the report.
The best month for wage growth is usually May with an average of , additional jobs. August is the worst month with an average of 69, additional jobs. The year was the best on record with 3. That year saw gains reported in every monthly nonfarm payroll report. In , the job force lost 5. Dictionary Term Of The Day. Broker Reviews Find the best broker for your trading or investing needs See Reviews. Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education.
A celebration of the most influential advisors and their contributions to critical conversations on finance. Become a day trader. What is the 'Nonfarm Payroll' Nonfarm payroll is a term used in the U. Why the Nonfarm Payroll Report Matters The major statistic reported from the nonfarm payroll report is the number of additional jobs added from the previous month. What the Nonfarm Payroll Reports Statistics from the nonfarm payroll also show which sectors are generating the most employment additions.
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