What the report contains
Three numbers move the market most.
- →Headline NFP — net jobs added/lost (consensus typically: 100K–300K in expansion)
- →Unemployment rate — % of labour force without a job actively seeking one
- →Average hourly earnings — wage growth, key input to inflation outlook
- →Labour force participation rate — % of working-age population working or seeking work
Why it moves markets so much
NFP is the single most data-rich monthly read on the US economy. It informs:
- →Fed policy path — strong jobs reduce odds of cuts
- →Inflation outlook — wage growth feeds into core inflation
- →Equity valuations — earnings growth ultimately depends on jobs
- →Currency strength — strong jobs typically support the dollar
Revisions matter
Each NFP comes with revisions to the previous two months. Sometimes a 'strong' headline is offset by big downward revisions to prior months. Always read revisions alongside the new number.