In plain English
What Nonfarm payrolls means
In market commentary, nonfarm payrolls usually refers to the monthly U.S. employment change reported in the Bureau of Labor Statistics’ establishment survey. It measures jobs on payrolls, not the number of employed people, so one person with two jobs can be counted twice. The report is closely watched because it can influence interest-rate expectations.
Why it matters
The release is one of the most important U.S. labor-market indicators for forex traders because it can affect expectations for Federal Reserve policy and therefore the dollar. The headline number often moves markets, but revisions and related details also matter.
Example
If payrolls rise by 200,000 and the previous month is revised from 150,000 to 130,000, the market may focus on both the headline beat and the downward revision. That reaction is simplified; actual pricing depends on wages, unemployment, and expectations.
Quick answers
Common questions
What does NFP stand for?+
NFP stands for nonfarm payrolls or nonfarm payroll employment.
Is nonfarm payrolls the same as unemployment?+
No. Nonfarm payrolls count jobs on payrolls, while unemployment measures people without jobs who are actively seeking work.
Sources