Nonfarm Payrolls

Who: Bureau of Labor Statistics

When: First Friday of the month for prior month

What: Non-Farm Payrolls is estimated based on a survey of larger businesses measuring the number of paid employees working part-time or full-time in businesses or for the government.

Why: The Non-Farm Payroll data is the top number of the Employment Report, one of the most highly anticipated pieces of economic data. The headline figure is often a major market mover with the labor market a strong predictor of the strength of the economy. The Unemployment Rate is obtained from a different data sample, and together the two reports provide the most comprehensive picture of the labor market. The monthly reports are, however, very volatile and subject to large revisions in future releases. Long term trends in the report's data are a better gauge for the true state of the labor market. Strength in the labor market implies a strong economy and is usually negative for bond markets.