What is the NonFarm Payrolls (NFP) Number?

What is the NonFarm Payrolls (NFP) Number?

The Nonfarm Payrolls number is a key economic indicator released as part of the U.S. Employment Situation Summary by the Bureau of Labor Statistics (BLS). It represents the total number of paid U.S. workers in the economy, excluding certain categories such as:

  • Farmworkers
  • Government employees
  • Private household employees
  • Employees of non-profit organizations

The Non-farm Payrolls figure is significant because it provides a snapshot of the overall employment situation and is a crucial indicator of economic health. It helps to measure job creation and is closely watched by:

  • Policymakers: To inform decisions on monetary policy, such as interest rate adjustments by the Federal Reserve.
  • Economists: To analyze trends in the labor market and broader economy.
  • Investors: To gauge economic performance, which can influence stock and bond markets.
  • Businesses: To make informed decisions on hiring, investment, and expansion.

The Nonfarm Payrolls number is released on the first Friday of every month and can have a significant impact on financial markets, as it often influences perceptions of economic strength and future monetary policy actions.