Previous : -80 Thousand
Forecast : -78 Thousand

Definition :
A statistic researched, recorded and reported by the U.S. Bureau of Labor Statistics intended to represent the total number of paid U.S. workers of any business, excluding the following employees:
-general government employees
-private household employees
-employees of nonprofit organizations that provide assistance to individuals
-farm employees

This monthly report also includes estimates on the average work week and the average weekly earnings of all non-farm employees.
The total non-farm payroll accounts for approximately 80% of the workers who produce the entire gross domestic product of the United States.

The non-farm payroll statistic is reported monthly, on the first Friday of the month, and is used to assist government policy makers and economists determine the current state of the economy and predict future levels of economic activity.

Why is it useful?
The cyclic motion of the production wheel is the result of increased demand in the market, therefore if the Nonfarm payrolls are the numbers of jobs added in the economy for a certain time then that number reflects the necessities of the market as the level of demand that requires a specified number of jobs to be added in the economy.

In this cycle we can say that the increase in the number of Nonfarm payroll has a positive effect on the currency, for the added jobs means stronger production levels hinting hire demand levels and that same added number also help to add spending in the economy so a healthier stronger economy means also a stronger currency.

As for the equity market jobs added means more production meaning that the industries are functioning right therefore higher earnings consequently higher stock value which is as well considered a positive effect, and the opposite is as well applicable in both cases.

The unemployment rate is a very important measure to the capacity of employment the economy can handle. Now as simple this number seams but its yet widely governing more than the number reflected in the Nonfarm payrolls and reflects a more focused picture.

Now in any normal measure this is simple the decrease in the percentage in unemployment is better for the economy noting that the normal range of unemployment is 5% therefore expecting very low readings is highly unlikely and if so it is merely a reflection of high levels of inflation that the economy is trying hard to produce more that it can handle.

The effect is simple taking into consideration the above mentioned information, a decrease in the reading of the unemployment rate has a positive effect on the currency and the equity market that as mentioned above implies production prosperity and a revitalized economy, and the opposite is applicable in both cases as well.

The reason why it is the nonfarm payrolls numbers that grab all the attention, is the level of volatility this numbers has, while the unemployment rate is more steady and easy to measure.