 | What is the definition of Non-Farm Payrolls?
The Non-Farm Payroll report (NFP) is a statistic that measures the total number of paid workers in the US, that work in the private sector, that is, any business that excludes general government workers, private household employees, employees of non-profit organizations and farm employees. This repo
|  | TradersLaboratory decodes Non-Farm Payrolls
The Non-Farm Payrolls (NFP) report is a part of the employment data released by the US Bureau of Labour Statistics on the first Friday of every month. It is a highly-watched economic indicator as it provides very strong information about the state of a nation’s economy. If more people are employed in the private sector, it shows that the economy of the nation is strong. Bad employment figures are a direct consequence of a weak economy. When the global financial crisis hit as a result of the collapse of the US sub-prime mortgage market in the US, the multiplier effect hit home and caused many businesses to lay off workers and reduce wages, resulting in poor NFP figures for many months at a stretch.
The NFP represents about 80% of workers whose output brings about the total GDP of the US, and it helps policy makers evaluate the state of the nation’s economy and decide on economic policy. |
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