Non-Farm Payrolls (NFP) is the number of jobs added or lost in the U.S. economy during the previous month, excluding farm workers, private household employees, and nonprofit organization employees. Published on the first Friday of each month by the Bureau of Labor Statistics, NFP is one of the most closely watched and market-moving economic indicators in the world.

Why It Matters

Employment is the backbone of the economy. When businesses are hiring, consumers earn income, spend money, and drive economic growth. NFP provides the most timely and comprehensive snapshot of the labor market. A healthy economy typically adds 150,000–250,000 jobs per month.

The Monthly Report

The Employment Situation report includes more than just the headline payroll number:

Two Surveys Behind the Report

The Employment Situation actually combines two separate surveys. The headline payroll count comes from the *establishment survey* of about 120,000 businesses and agencies, while the unemployment rate and participation rate come from the *household survey* of roughly 60,000 homes. The two can diverge sharply in a given month—payrolls rising even as the household survey shows job losses—which is why economists read both. Payrolls are also subject to large revisions: the prior two months are routinely revised, and the BLS applies a "birth-death" model to estimate jobs at newly formed firms, with annual benchmark revisions that can shift the level by hundreds of thousands.

Market Impact

NFP is arguably the single most market-moving data release after FOMC rate decisions. A strong report (more jobs than expected + rising wages) typically strengthens the dollar, raises bond yields, and may pressure rate-sensitive stocks. A weak report suggests economic cooling and increases expectations for Fed rate cuts, which tends to weaken the dollar and boost bonds. Whether "good news" helps or hurts stocks depends on the regime—in an inflation scare, strong jobs can sink equities; in a growth scare, the same number can rally them.

Fed Implications

The Federal Reserve closely monitors NFP as a key input for its dual mandate of maximum employment. Persistently strong payrolls with rising wages may keep the Fed hawkish, while weakening employment gives room for more accommodative policy. The Fed also watches the unemployment rate against the "Sahm rule," a recession signal that triggers when the three-month average jobless rate rises half a percentage point above its 12-month low.