What is the "U.S. Employment Report"?
Today was the important "U.S. Employment Report"
So, what is it & why does it influence Wall Street and the economy?
Last month (October, 2024) the U.S. added 12,000 Jobs in October as recent storms sidelined workers. A gain of 100,000 was expected! The jobless rate held steady at 4.1%.
The U.S. Bureau of Labor Statistics (BLS) releases the Employment Situation Summary, better known as the employment, or jobs report, at 8:30 a.m. ET on the first Friday of every month. The jobs report is among the most important and comprehensive economic releases and the earliest to provide data for the prior month. Its numbers are hotly anticipated and closely reviewed as a result.
Many investment firms issue estimates ahead of the report for the monthly change in nonfarm payrolls and the unemployment rate, as well as hours worked and hourly earnings. The report often moves financial markets and is used among other data by the Federal Reserve to assess the state of the economy in setting monetary policy.
Key Takeaways
The monthly jobs report estimates the U.S. unemployment rate and the monthly change in nonfarm payrolls as well as average earnings and hours worked.
Released on the first Friday of every month for the prior month, the jobs report gives investors one of the most comprehensive views into the recent state of the U.S. economy.
Earnings data is used to assess labor cost pressures, while hours worked can be a leading indicator of labor demand.
The Bottom Line
Though the monthly jobs numbers can be volatile and subject to subsequent revisions, they are a crucial economic indicator. Understanding what the Employment Situation Summary measures, and why, is a must for investors and policymakers seeking to assess the state of the U.S. economy.
