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Preview: Non-Farm Payroll Announcement

7 May 2021 By Klavs Valters

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It’s the beginning of a new month which means that the Non-Farm Payroll figures will be released this week by the US Bureau of Labor Statistics. The latest US jobs data will be released at 1:30 PM London time on Friday.

Why is the announcement important?

Non-Farm Payroll is one of the most closely watched indicators. It is considered the most wide-ranging measure of job creation in the United States. An increase in the non-farm payrolls would suggest rising employment and potential inflation pressure – which would mean a possible rate increase by the Federal Reserve. A decline would indicate a slowing economy – which would mean a possible interest rate cut.

Expectations

In March, the total Non-Farm payroll employment increased by 916k way above analysts’ expectations of 647k. The unemployment rate decreased to 6%. Most significant job gains were in leisure and hospitality, public and private education, and construction.

Analysts are expecting 978k jobs added in April as the US economy recovers from the COVID-19 pandemic. The unemployment rate is expected to decrease further to 5.8%.

Non-Farm Payroll numbers since March 2020

2021 March: 916k

2021 February: 379k

2021 January: 49k

December: -140k

November: 245k

October: 638k

September: 661k

August: 1,371k

July: 1,763k

June: 4,800k

May: 2,509k

April: -20,500k

March: -701k

The unemployment rates since March 2020

2021 March: 6%

2021 February: 6.2%

2021 January: 6.3%

December: 6.7%

November: 6.7%

October: 6.9%

September: 7.9%

August: 8.4%

July: 10.2%

June: 11.1%

May: 13.3%

April: 14.7%

March: 4.4%

Source: US Bureau of Labor Statistics

You can keep up to date with economic announcements and events by clicking here for our GO Markets Economic Calendar.

 

Disclaimer: Articles are from GO Markets analysts and contributors and are based on their independent analysis or personal experiences. Views, opinions or trading styles expressed are their own, and should not be taken as either representative of or shared by GO Markets. Advice, if any, is of a ‘general’ nature and not based on your personal objectives, financial situation or needs. Consider how appropriate the advice, if any, is to your objectives, financial situation and needs, before acting on the advice. If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.

#Economy #Economics #Finance #Markets
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