Employment Report on Forex
In
the US, the employment report, also known as the labor report, is regarded as
the most important among all economic indicators. Usually released on the first
Friday of the month, the report provides the first comprehensive look at the
economy, covering nine economic categories. Here are the 3 main components of
the report: Payroll Employment: Measures the change in number of workers in a
given month. It is important to compare this figure to a monthly moving average
(6 or 9 months) so as to capture a true perspective of the trend in labor
market strength. Equally important are the frequent revisions for the prior
months, which are often significant.
UnemploymentRate: The percentage of the civilian labor force actively looking for
employment but unable to find jobs. Although it is a highly proclaimed figure
(due to simplicity of the number and its political implications ), the
unemployment rate gets relatively less importance in the markets because it is
known to be a lagging indicator-It usually falls behind economic turns. Average
Hourly Earnings Growth: The growth rate between one month's average hourly rate
and another's sheds light on wage growth and, hence, assesses the potential of
wage-push inflation. The year-on-year rate is also important in capturing the
longer-term trend.