Non-Farm Payrolls

Non-Farm Payrolls (NFP) is a key economic indicator released monthly by the U.S. Bureau of Labor Statistics. It measures the total number of paid workers in the U.S., excluding employees in farming, government, private households, and nonprofit organizations. NFP data provides a snapshot of employment trends. It is considered a strong indicator of overall economic health.

Traders closely watch the NFP release each month because it often causes volatility in financial markets. This includes the U.S. dollar, equities, and bonds. A higher-than-expected NFP figure generally signals economic strength, which may lead to interest rate hikes. Conversely, a lower-than-expected figure could indicate weakness and potential rate cuts.

Because of its broad influence on policy decisions and market sentiment, NFP is one of the most anticipated news events in the trading world.

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