Preview: Non-Farm Payroll Announcement
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. The measure accounts for around 80% of the workers who contribute to the Gross Domestic Product. It does not include those who work on farms and also excludes private households, non-profit workers, and government employees.
In May, the total Non-Farm payroll employment increased by 559k below analysts expectation of 650k. The unemployment rate decreased by 0.3% to 5.8%. Most significant job gains were in leisure and hospitality, in public and private education, and in health care and social assistance.
Analysts are expecting 690k jobs added in June. The unemployment rate is expected to decrease further to 5.7%.
Non-Farm Payroll numbers since May 2020
The unemployment rates since May 2020
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.
Proud Partner of Chelsea Football ClubFind out more