Nonfarm Payrolls
Nonfarm payrolls is the monthly count of US jobs added or lost outside of farming, private households and nonprofits, one of the most closely watched economic reports.
The figure comes from the Bureau of Labor Statistics' Employment Situation report, usually released on the first Friday of each month at 8:30 a.m. Eastern. It is based on a survey of employers covering hundreds of thousands of worksites. Farm workers, private household employees and some nonprofit staff are excluded because their numbers are harder to measure or vary seasonally.
Markets focus on the change in payrolls compared with the previous month and with economists' forecasts. The same report includes the unemployment rate, average hourly earnings and revisions to the prior two months, which can be substantial.
Because jobs drive consumer spending and because the Federal Reserve targets maximum employment, a surprise in payrolls can move bond yields, the dollar and stock prices within seconds.
Example: if the report shows 250,000 new jobs when economists expected 150,000, investors may read the economy as stronger than thought and expect the Fed to keep interest rates higher for longer.