Employment Situation

Definition: This report lists the number of payroll jobs at all non-farm business
establishments and government agencies. The unemployment rate, average hourly
and weekly earnings, and the length of the average workweek are also listed in this
report. This release is the single most closely watched economic statistic because
of its timeliness, accuracy and its importance as an indicator of economic activity.
Therefore, it plays a big role in influencing financial market psychology during the
month. 

Importance: Non-farm payroll is a coincident indicator of economic growth. The
greater the increase in employment, the faster the total economic growth.

An increasing unemployment rate is associated with a contracting economy and
declining interest rates. Conversely, a decreasing unemployment rate is associated
with an expanding economy and potentially increasing interest rates. The fear is
that wages will rise if the unemployment rate becomes too low and workers are
hard to find. The economy is considered to be at full employment when
unemployment is between 5.5% and 6.0%.
If the average earnings is rising sharply, it may be an indication of potential
inflation.

When the average workweek is trending higher, it forecasts additional employment
increases.
Source: Bureau of Labor Statistics, U.S. Department of Labor.

Availability: First Friday of the month at 8:30am ET. Data for month prior.

Frequency: Monthly.

Revisions: The data are revised monthly for the prior month. These revisions can
occasionally be substantial. There is also an annual revision in June.
 
Raw Data: http://stats.bls.gov/news.release/empsit.toc.htm

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