Nonfarm payroll employment is an influential statistic and economic indicator released monthly by the United States Department of Labor as part of a comprehensive report on the state of the labor market.
It is a compiled name for goods-producing, construction and manufacturing companies. The Bureau of Labor Statistics releases preliminary data on the third Friday after the ending of the reference week, i.e., the week which includes the 12th of the month, at 8:30 a.m. Eastern Time; typically this date occurs on the first Friday of the month. Nonfarm payroll is included in the monthly Employment Situation or informally the jobs report and affects the US dollar, the Foreign exchange market, the bond market, and the stock market.
The figure released is the change in nonfarm payrolls (NFP), compared to the previous month, and is usually between +10,000 and +250,000 during non-recessional times. The NFP number is meant to represent the number of jobs added or lost in the economy over the last month, not including jobs relating to the farming industry.
Non-farm payroll is another piece of economic info that really impacts the market. So what does the term non-farm payroll really tell you? Well, as the name suggests, it tells you the amount of payroll that a country has that is not related to the farm. It also includes some other industries that are not farming related, but you get the basic idea. When the non-farm payroll is high, it’s a good thing for the economy.