It’s a new month which means the latest Non-Farm Payroll figures will be released this week by the Bureau of Labor Statistics. The data will be released on Friday 7th December at 13:30 PM London time.
Why is the announcement important?
Non-farm payroll is one of the most closely watched indicators and is considered the most wide-ranging measure of job creation in the United States. An increase in the non-farm payrolls would suggest rising employment and potential inflation pressure which would mean a potential rate increase by the Federal Reserve. A decline would suggest a slowing economy which would mean a decline in the interest rates more likely. The measure accounts for around 80% of the workers who contribute to the Gross Domestic Product.
In October, the total non-farm payroll employment increased by 250,000 the U.S. Bureau of Labor Statistics reported today versus the forecast of 193,000. Most significant job gains were in health care, in manufacturing, in construction, and in transportation and warehousing.
Economists are expecting an increase by 199,000 in the month of November. The unemployment rate is expected to remain unchanged at 3.7%. Average hourly earnings are also expected to remain the same as previous at 3.7%.
All eyes on the announcement on Friday.
By Klāvs Valters
This article is written by a GO Markets Analyst and is based on their independent analysis. They remain fully responsible for the views expressed as well as any remaining error or omissions. Trading Forex and Derivatives carries a high level of risk.
Sources: Google, Datawrapper.