Discover what the non-farm payrolls report is, when it’s next released and how the announcement influences financial markets.
CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.
The non-farms payroll report (NFP) is the monthly release of data on the 80% of the US workforce employed in manufacturing, construction and goods.
As the name suggests, it does not include those who work on farms, and also excludes private households, non-profit workers and government employees.
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The non-farm payroll release gives an invaluable insight into the state of the world’s biggest economy, showing how US business is performing and offering an indication of where the Federal Reserve might take interest rates in the near future.
The overall number of jobs added or subtracted is an indicator of the health of the economy as a whole, and are part of the Federal Reserve’s mandate on employment – so the FOMC will pay attention to NFP figures when deciding whether to raise or lower rates.
For example, a high number of jobs can be taken as a sign of inflationary pressures, which may lead to an interest rate hike. A fall in the number, meanwhile, may indicate a declining economy, increasing the chances of a rate cut.
Interest rates have a major part to play in the movements of forex, stocks and commodities, so the non-farms report can reverberate across global markets in a big way. Find out more about how to trade NFP.
While you’ll usually see the headline NFP number used in reports, there are plenty of other components that can be just as important to follow. Here’s a quick rundown of what else to watch out for:
Trading non-farms payrolls can present the opportunity for increased profits on a variety of markets, but the announcement can cause volatility, increasing risk.
Prior to the release, economists will attempt to predict what the headline NFP number will be, usually arriving at a consensus estimate. The market fallout from the release can then be magnified depending on the closeness of the estimate to the actual figure.
Some of the markets that are likely to be most affected are:
|Reference month||Date||Time (UTC +8 during Dalight Savings Time)|
|January 2022||7 January 2022||8:30pm|
|February 2022||4 February 2022||8:30pm|
|March 2022||4 March 2022||8:30pm|
|April 2022||1 April 2022||8:30pm|
|May 2022||6 May 2022||8:30pm|
|June 2022||3 June 2022||8:30pm|
|July 2022||8 July 2022||8:30pm|
|August 2022||5 August 2022||8:30pm|
|September 2022||2 September 2022||8:30pm|
|October 2022||7 October 2022||8:30pm|
|November 2022||4 November 2022||8:30pm|
|December 2022||2 December 2022||8:30pm|
*IG Group's total markets