The non farm payroll employment series is published monthly by the Bureau of Labor Statistics and is used by the Federal Reserve to gauge the state of the economy. The series consists of detailed data about the number of workers employed in a wide range of industries. It helps economists to compare business and labor market conditions across different regions.
Establishment Survey
The nonfarm payroll series is released by the Bureau of Labor Statistics every month and contains important information on the country’s labor market. The survey is based on a survey of 400,000 business establishments and accounts for about one-third of all jobs in the country. Nonfarm payroll statistics show which sectors are growing and which are contracting. This information is used by economists and other economic analysts to determine how the economy is faring. The Establishment Survey of Non Farm Payrolls includes data on employment, wages, hours worked, and industry growth. The survey also tracks the number of people in each industry, including the average earnings per hour. These data are used to calculate the total nonfarm payroll for the United States every month. Another important aspect of the survey is its demographic breakdown. It tracks employment by race, gender, age, and education. This data is also used to calculate the unemployment rate.
A recent report from the Bureau of Labor Statistics shows that the number of people employed by non-farm businesses increased by 372,000 in June. This increase is larger than the decrease in employment seen in June by households.
Impact On The Canadian Dollar
The Canadian dollar is awaiting the release of the Non-farm payroll report later today. The Canadian economy is expected to have created 20.0 thousand new jobs in July, compared with 43.2 thousand losses in May. A strong reading will boost the currency. However, if it is below expectations, then the Canadian dollar may lose ground. The Ivey PMI for July is expected to decline slightly from 62.3 in June. That would have a negative impact on USD/CAD in the North American session.
Traders are always closely watching the US non farm payroll. This report provides a variety of data about employment in the United States. If it shows a rise in the number of workers in the US, this could boost the Canadian dollar. It is also closely tied to the US economy, which means more orders for Canadian companies and a higher value of exports. Despite this, other job-related indicators will also be closely watched by traders and could cause greater volatility. The US Federal Reserve closely follows the labour market when it changes interest rates. This data can be used to determine whether or not to raise or cut rates.
Impact On The US Dollar
Non-farm payroll numbers can have an impact on the US dollar, especially when they are strong. The US economy is a huge importer of goods from many different countries, so any increase in the number of people employed can impact foreign currency rates. However, if this news is weak, it can have the opposite effect.
The non-farm payroll report is released by the Bureau of Labor Statistics every month and contains several important figures. The most important for traders is the nonfarm payroll number, which represents the total number of people paid in the U.S., excluding household employees, nonprofits, and general government workers. This data is important because it provides a foundation for determining potential rates of inflation and economic growth.
Impact On Stock Prices
Nonfarm payrolls affect the stock market in several ways. A high jobs report can signal an improving economy, which will likely boost stocks. However, a weak jobs report can signal a slowing economy and declining profits for companies. Those negative effects can also cause stock prices to fall. Because nonfarm payroll figures change constantly, investors closely follow the report, and reassess their portfolios as a result. If the number is lower than expected, investors often sell stocks. Despite the volatility in the stock market, some stocks 52av ended higher. The NFP figures are released at 8:30 AM EST, and the impact on stock prices depends on the strength of the data.
When the numbers are out, traders must be disciplined in stopping trades if they suspect they are receiving false signals. As the effect of the news release will be over by the following Monday, traders who choose to stay in a position must have compelling reasons for doing so.
