Employment Situation Report

AAA

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:

  • The unemployment rate - the number of unemployed workers expressed as a percentage of the labor force.
  • Non-farm payroll employment - the number of employees working in U.S. business or government. This includes either full-time or part-time employees.
  • Average workweek - the average number of hours per week worked in the non-farm sector.
  • Average hourly earnings - the average basic hourly rate for major industries.

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.

RELATED TERMS
  1. Pink Slip Party

    A party that brings together professionals and recruiters who ...
  2. Unemployment Rate

    The percentage of the total labor force that is unemployed but ...
  3. Economic Growth Rate

    A measure of economic growth from one period to another in percentage ...
  4. Economic Growth

    An increase in the capacity of an economy to produce goods and ...
  5. Initial Claims

    A measure of the number of jobless claims filed by individuals ...
  6. Economic Indicator

    A piece of economic data, usually of macroeconomic scale, that ...
Related Articles
  1. What You Need To Know About The Employment ...
    Economics

    What You Need To Know About The Employment ...

  2. Economic Indicators That Do-It-Yourself ...
    Investing Basics

    Economic Indicators That Do-It-Yourself ...

  3. Explaining The World Through Macroeconomic ...
    Options & Futures

    Explaining The World Through Macroeconomic ...

  4. Introduction To Stationary And Non-Stationary ...
    Active Trading

    Introduction To Stationary And Non-Stationary ...

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center