Definition of 'Non-Farm Payroll'
The Non-Farm Payroll is calculated by the Bureau of Labor Statistics (BLS). The BLS surveys businesses across the country to collect data on the number of employees they have. The BLS then uses this data to calculate the change in the number of jobs from one month to the next.
The Non-Farm Payroll is released on the first Friday of each month. It is one of the most anticipated economic releases of the month, as it can provide investors with valuable information about the state of the economy.
A strong Non-Farm Payroll number indicates that the economy is growing and that businesses are hiring. This can lead to higher stock prices and a stronger dollar. A weak Non-Farm Payroll number indicates that the economy is slowing down and that businesses are laying off workers. This can lead to lower stock prices and a weaker dollar.
The Non-Farm Payroll is not without its limitations. One limitation is that it does not include all jobs in the economy. For example, it does not include jobs in the agricultural sector or in the government sector. This means that the Non-Farm Payroll can give a misleading picture of the health of the economy.
Another limitation of the Non-Farm Payroll is that it can be volatile. This means that it can change significantly from one month to the next. This volatility can make it difficult to interpret the Non-Farm Payroll and to use it to make investment decisions.
Despite its limitations, the Non-Farm Payroll is an important economic indicator. It can provide investors with valuable information about the state of the economy and can help them to make informed investment decisions.
Here are some additional details about the Non-Farm Payroll:
* The Non-Farm Payroll is calculated by adding together the number of jobs in the private sector and the number of jobs in the government sector.
* The private sector includes jobs in manufacturing, construction, retail, and services.
* The government sector includes jobs in the federal government, state governments, and local governments.
* The Non-Farm Payroll is released on the first Friday of each month at 8:30 AM Eastern Time.
* The Non-Farm Payroll is one of the most important economic indicators of the month.
* The Non-Farm Payroll can be used to track the health of the economy and to make investment decisions.
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