There is a dual mandate with two key goals that the Federal Reserve keeps in mind: stable prices and maximum employment. The main difference between the GDP and non-farm payrolls is that the latter are released on a monthly basis, while the former comes out only quarterly and typically with a delay.Īnother reason that this report is so popular among traders is the fact that it has a lot of impact on monetary policy, which makes it more or less impossible to ignore. Historically, any changes in the non-farm payrolls have moved very closely with quarterly GDP changes, meaning that, essentially, non-farm payrolls can be used as a sort of proxy for the GDP. One reason for this is the timing of the report, because the business cycle and employment levels are closely related. Non-Farm Payrolls are released in line with the Employment Situation Report by the Bureau of Labor Statistics (BLS), so this report has a lot of power behind it. Released on the first Friday of every month, this indicator is one of the most important reports on the calendar for a lot of forex traders.
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