Definition: Nonfarm payrolls (NFP) refer to the total number of paid workers in the U.S., excluding those in farming, government, private households, and nonprofit organizations. This key economic indicator is released monthly by the U.S. Bureau of Labor Statistics and provides insights into employment trends and economic health.
Understanding and analyzing nonfarm payrolls is crucial for assessing the state of the U.S. labor market and overall economic conditions. This indicator influences monetary policy decisions, investor sentiment, and financial market movements. By monitoring changes in nonfarm payrolls, businesses, investors, and policymakers can make informed decisions about hiring, investment strategies, and economic policy adjustments.
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