Definition of 'Employment Situation'
There are two surveys that makeup this report:
- Household Survey (of 60,000 households)
- Unemployment rate
- Labor supply
- Discouraged workers
- Establishment Survey (of 400,000 businesses)
- Nonfarm payroll
A weakness in the employment situation will usually cause the bond market to rally (anticipation of lower interest rates) and the stock market to fall. The opposite is true of strength in the employment situation.
This report is also sometimes called the NFP report which stands for Non Farm Payroll.
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