Fundamental | Macro
NFP (Non-Farm Payrolls)
"The monthly report on American employment outside the agricultural sector — one of the most impactful economic events on global financial markets."
In-Depth Definition
Non-Farm Payrolls (NFP) are published on the first Friday of each month by the US Bureau of Labor Statistics. This report measures the net number of jobs created or destroyed in the United States (excluding agricultural, domestic government, and non-profit sectors) in the previous month. It is accompanied by the unemployment rate and wage growth. An NFP above expectations is generally interpreted as bullish for USD and bearish for bonds, and vice versa. The market impact is immediate and violent: spreads widen sharply in the minutes before publication. Experienced traders often avoid trading the 15 minutes before and after publication, waiting for price stabilization.
StarQuant Insight
StarQuant analyzes NFP in its broader macro context (12-month employment trend, previous month revisions, participation rate) to assess the real market impact, beyond the simple gap between actual and forecast figures.
Pro Tip
Don't just compare the actual figure to forecasts. Also analyze revisions of previous months and the labor force participation rate, which give a more complete picture of the health of the US labor market.