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What is NFP?

The Non-Farm Payrolls (NFP) report is the monthly US employment report from the Bureau of Labor Statistics, released the first Friday of each month at 8:30 AM ET. It includes the headline payrolls number (net jobs added or lost), the unemployment rate, average hourly earnings, average weekly hours, and labor-force participation. The headline is noisy month-to-month - the signal is in the 3-month moving average, prior-month revisions, and the wage growth trend.

  • Headline NFP - Net jobs added (millions). Noisy.
  • Unemployment rate - Survey-based, watch participation alongside.
  • AHE - Average hourly earnings - wage growth, Fed-relevant.
  • Revisions - Last 2 months often revised, sometimes more than current print.

What's in the NFP report

The release covers two surveys:

Establishment survey:

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

Household survey:

  • Unemployment rate (U-3)
  • Labor-force participation rate
  • Employment-to-population ratio
  • U-6 underemployment rate

How to read it

  1. Headline payrolls - vs consensus, but noisy
  2. Revisions to last 2 months - often the bigger story
  3. 3-month moving average - better trend signal
  4. AHE YoY and MoM - wage growth, drives Fed reaction
  5. U-rate vs participation - composition matters

Market reaction

NFP day moves: 2Y first, USD second, equities third. Wage growth is often more market-moving than the headline.

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