Description
The U.S. Nonfarm Payrolls report, published by the Bureau of Labor Statistics (BLS), measures the total number of jobs in non-agricultural industries, including manufacturing, construction, and services. It excludes employment in agriculture, military personnel, self-employed individuals, and household employees. This report is a key indicator of labor market health and economic activity. An increase in nonfarm payrolls typically signals strong economic growth, with businesses expanding hiring to meet demand. Conversely, a decrease may indicate economic slowdown or business contraction.
The BLS collects data for the employment report through two primary surveys: the Household Survey and the Establishment Survey. These surveys differ in their methodology, coverage, and scope. The Household Survey focuses on individuals aged 16 and over, assessing labor force metrics such as the unemployment rate and labor force participation rate. The Establishment Survey, on the other hand, focuses on payroll data, primarily covering employees of businesses and excluding groups such as the self-employed and household workers, without any age restriction. While the Household Survey counts each person's main job only once, the Establishment Survey may account for multiple jobs held by an individual. These differences can lead to variations in the results of the two surveys (e.g., the unemployment rate and nonfarm payroll numbers may both rise simultaneously).
The nonfarm payroll data is released monthly, providing insights into the changes in employment within the U.S. nonfarm sectors for the previous month.