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Non Farm Payrolls - 9 March 2012

 Friday sees the release of the US jobs data (Non-farm payrolls). This represents unemployment data in the US and is the most prominent and probably the most important economic data release across the financial markets.
Definition: Nonfarm payroll employment

The number gives an estimate of all jobs created at non-farm business establishments and state agencies. Other data, such as the unemployment number, average hours worked, average weekly earnings and average hourly earnings are also measured. The figure is released on the first Friday of the calendar month, with the data representing the previous month’s figures. The non-farm payrolls is the headline number, with the unemployment figure the other key number.

Market Consеnsus:

Previous		Expected
Non – Farm payrolls	243,000	215,000
Unemployment Rate	8.3%	8.3%

Significance of the data

The jobs data provides a comprehensive look at the health of the world’s leading economy, with job creation a key catalyst for increased consumer confidence and consumer spending. Trends in earnings and hours worked provide key information about the strength or weakness of the labour market in the US.

Market Moving

The release of such important data can result in significant market movements on the financial markets across an array of asset classes. Major currency pairs such as Eur/Usd can see swings of 100-150 pips over short periods of time. This can provide ample opportunities for traders to profit from such swings, however such volatility can also create significant risk for novice and experienced traders alike.