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. Economic Growth Rate

    A measure of economic growth from one period to another in percentage ...
  3. Initial Claims

    A measure of the number of jobless claims filed by individuals ...
  4. Index

    A statistical measure of change in an economy or a securities ...
  5. Unemployment Rate

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

    An increase in the capacity of an economy to produce goods and ...
RELATED FAQS
  1. What is GDP and why is it so important to investors?

    The gross domestic product (GDP) is one the primary indicators used to gauge the health of a country's economy. It represents ... Read Full Answer >>
  2. How do the C-suite members work together to make a successful company?

    Corporate managers, typically chosen by a board of directors in large organizations, are ultimately responsible to stakeholders ... Read Full Answer >>
  3. What does a merger or acquisition mean for the target company's employees?

    Suppose one sporting goods manufacturer merges with or acquires another sporting goods manufacturer. Before the merger and ... Read Full Answer >>
  4. What is the difference between CI (competitive intelligence) and competitive analysis?

    The difference between competitive intelligence and competitive analysis is that competitive intelligence refers to the understanding ... Read Full Answer >>
  5. Why is social responsibility important to a business?

    Social responsibility is important to a business because it demonstrates to both consumers and the media that the company ... Read Full Answer >>
  6. Why is it less than ideal for a CEO of a company to also hold the position of COO?

    When it comes to executive-level positions within an organization, assigned titles and the roles associated with each can ... Read Full Answer >>
Related Articles
  1. Economics

    What You Need To Know About The Employment Report

    This widely watched indicator of economic well-being directly influences the market.
  2. Investing Basics

    Economic Indicators That Do-It-Yourself Investors Should Know

    Understanding these investing tools will put the market in your hands.
  3. Options & Futures

    Explaining The World Through Macroeconomic Analysis

    From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone.
  4. Active Trading

    Introduction To Stationary And Non-Stationary Processes

    What to know about stationary and non-stationary processes before you try to model or forecast.
  5. Retirement

    Economic Indicators To Know

    The economy has a large impact on the market. Learn how to interpret the most important reports.
  6. Economics

    Top 10 Cities For Grads To Get Jobs

    A look at latest employment stats.
  7. Investing

    The Labor Market Recovery’s Missing Ingredient

    Job creation is running at the fastest pace since the 90s, and there is some evidence that wage growth is finally starting to accelerate, albeit modestly.
  8. Investing News

    A New Corporate Governance Initiative In Japan

    Expectations are low that Japan can create a corporate governance climate that meets global standards, but a new initiative is aimed at doing just that.
  9. Economics

    What Is The Labor Market Conundrum?

    We are facing a conundrum with investment implications: Why are wages still stagnant, when jobs are being created at the fastest pace since the late 90's?
  10. Personal Finance

    Top U.S. Cities For The College Class of '15

    Look for a city with a low unemployment rate, a high number of job opportunities, a sizable job market and good starting salaries.

You May Also Like

Hot Definitions
  1. Adverse Selection

    1. The tendency of those in dangerous jobs or high risk lifestyles to get life insurance. 2. A situation where sellers have ...
  2. Wash Trading

    The process of buying shares of a company through one broker while selling shares through a different broker. Wash trading ...
  3. Fixed-Income Arbitrage

    An investment strategy that attempts to profit from arbitrage opportunities in interest rate securities. When using a fixed-income ...
  4. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  5. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  6. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
Trading Center