NFP (Non-Farm Payrolls): definition

The monthly US employment report

Non-Farm Payrolls are the number of jobs created or lost in a month in the United States, excluding agriculture. The figure is part of the employment report (Employment Situation) published by the Bureau of Labor Statistics, usually on the first Friday of the month at 8:30 am New York time, 2:30 pm in Paris for most of the year.

The same report contains the unemployment rate, drawn from a household survey, and average hourly earnings, drawn from the business survey that also gives NFP.

How to read it

The figure is compared with the economists' consensus. But the market looks at the whole picture: revisions to the previous two months, sometimes larger than the day's surprise, the unemployment rate, and hourly earnings, which inform on inflationary pressure.

A strong report, with dynamic wages, pushes Fed rate cuts further away and generally supports the dollar. A weak report brings them closer. As the Fed has a dual mandate, inflation and employment, this report weighs more on its policy than on the ECB's.

The trader and NFP

The minutes after the release are among the most volatile of the month: spreads widen, price can jump several levels, and a stop order can be filled far from its price. Many trading plans forbid holding an open position at that moment, or reduce size.

Frequently asked questions

What time is NFP released?

At 8:30 am New York time, 2:30 pm in Paris, except for the two or three weeks at the end of March and end of October when the United States and Europe haven't changed clocks at the same time yet: it then comes out at 1:30 pm Paris time.

Why is NFP revised?

Not all firms in the sample have responded by the release date. Late responses are incorporated over the next two months, and an annual revision realigns the figures with administrative data.