Each month the current employment statistics (CES) programme of the Bureau of Labour Statistics surveys about 140,000 nonagricultural business entities, including government agencies. It provides data related with employment, hours, and earnings of workers on non-farm payrolls.
This report is important not only for employees and employers, as it gives a baseline for wage negotiations, but for economists providing grounds for public policy analysis, industry studies and other uses. This report is closely followed by traders, investors and analysts.
The release of the non-farm payroll data is one of the events that bring the highest volatility to the financial market.
The formula of the report excludes the agricultural jobs. However, as agriculture relates to only 1% of the US GDP, the report may be considered to reflect the overall shape of the whole employment market. An increase in non-farm payrolls may indicate an improvement in the situation of companies, and so the financial level of individuals, that would have a direct effect on the financial market (stock market, banking, etc.) and may lead to the appreciation of the US dollar.
On the other hand, a healthy condition of the employment market positively influences the spending power of individual households, and consequently the level of consumption of the goods and services provided by companies and investments of US citizens in instruments of the financial market, which may lead to a rise in price of such assets.
Periodicity of publication
The Bureau of Labour Statistics releases data usually on the first Friday of each month, related to the previous month.