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 5^th October at 1.30 PM London time (22:30 PM Melbourne).

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.

Expectations

In August, we saw the non-farm employment increase by 201,000 which was above the forecast of 190,000. The unemployment rate remained unchanged at 3.9%. Job gains occurred in professional and business services, health care, wholesale trade, transportation and warehousing, and mining.

Economists are expecting an increase by 185,000 in the month of September. The unemployment rate is expected drop from 3.9% to 3.8%, its lowest since May. Average hourly earnings are expected to drop from 2.9% to 2.8%.

 

 

All eyes on the announcement on Friday.

This article is written by a Emmett Trades 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.