Employment Situation Report
Definition of 'Employment Situation Report'
A monthly report compiling a set of surveys in an attempt to monitor the labor market. The Employment Situation Report, released by the Bureau of Labor Statistics, by the U.S. Department of Labor, consists of:
Investopedia explains 'Employment Situation Report'
The reaction in the market to this indicator is dramatic, which makes this information invaluable for investors. The data provides investors with knowledge beyond the headline unemployment rate, and let's them know what the workers in the nation are making and how long they are working.
These statistics provide insight into the direction of wage and employment trends. Both can have an effect on wage inflation, which will cause the Fed to raise rates to curtail. Raising interest rates will have a negative effect on bond and equity markets. Alternatively, if wage inflation seems to be decreasing, the Fed may lower rates, which would have positive effects in the markets.