Event

NFP day dashboard

The US Non-Farm Payrolls report is released the first Friday of each month at 8:30 AM ET. The signal is rarely in the headline number - it is in the prior-month revisions, the average hourly earnings (AHE) wage growth, and the unemployment-rate composition (especially participation). The reaction chain is similar to CPI but with bigger gaps: 2Y first, USD second, equities third, with sector rotation across banks, defensives, and growth.

  • Headline NFP - Net jobs. Noisy - watch the 3M average instead.
  • Revisions - Last 2 months - often more important than the new print.
  • AHE - Wage growth - Fed-relevant inflation channel.
  • U-rate composition - Participation rate matters as much as headline U.

What's released

Establishment survey:

  • Non-farm payrolls (headline)
  • Average hourly earnings (AHE)
  • Average weekly hours
  • Sectoral breakdown

Household survey:

  • Unemployment rate (U-3)
  • Labor-force participation rate
  • U-6 underemployment

Pre-print checklist

  • Consensus headline payrolls
  • Consensus U-rate
  • Consensus AHE MoM and YoY
  • Recent ADP print (often diverges)
  • Initial claims trend (4-week MA)

Reaction chain

  1. Headline - first reaction
  2. Revisions - often reverses the headline
  3. AHE - wage-growth channel matters for Fed
  4. U-rate + participation - composition story

Cross-asset:

  • 2Y Treasury - within seconds
  • USD - within minutes
  • SPX, sectors - within 30 minutes
  • HY OAS, vol - into the close

What usually traps people

Trading the headline beat/miss. NFP is too revised, too noisy, and too multi-dimensional for a one-number reaction. Read all five components in order.

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