Economic Events

Monthly change in employment excluding the farming sector. Non-farm payrolls is the most closely watched indicator in the Employment Situation, considered the most comprehensive measure of job creation in the US. Such a distinction makes the NFP figure highly significant, given the importance of labor to the US economy. Specifically, political pressures come into play, as the Fed is responsible for keeping employment in a healthy range and utilizes interest rate changes to do so. A surge in new Non-farm Payrolls suggests rising employment and potential inflation pressures, which the Fed often counters with rate increases. On the other hand, a consistent decline in Non-farm Employment suggests a slowing economy, which makes a decline in rates more likely.

The net change in the number of people employed in Canada . Increases in employment are generally accompanied by higher consumption and expenditure levels. At the same time, higher employment, consumption and expenditures may lead to heightened inflationary pressures that encourage central banks to tighten monetary policy. If the Bank of Canada were to raise interest rates, it would put upward pressure on the Canadian dollar. Because this is the main employment report in Canada it tends to have significant impact on the market. The headline figure is the change in employment in thousands