As a comprehensive measure of U.S. employment and one of the earliest economic reports for a given month, the Employment Situation Summary often moves financial markets. In addition to tallying nonfarm payrolls, the establishment survey estimates average weekly hours worked—a measure of labor demand—as well as average hourly earnings, an early indicator of labor cost inflation.
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Because of the report’s importance to investors and policymakers, traders compare the numbers in it to the consensus of analysts’ forecasts to get an early sense of whether, for example, nonfarm payroll gains in the latest month exceeded or trailed market expectations.
Since the numbers fluctuate from month to month and are subject to significant revisions, it takes more than a single report to establish a trend. Investors must also consider jobs growth in the context of other economic indicators. Despite those limitations, the monthly jobs growth remains a key indicator of how the economy was faring very recently.
Where Do You Get Jobs Growth Numbers?
The Bureau of Labor Statistics gets job growth data from a survey of 122,000 businesses and government agencies, which account for about 20% of the total U.S. nonfarm employment.
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What Jobs Have the Highest Growth Rate?
According to the Bureau of Labor Statistics, the fastest-growing jobs from 2021 to 2031 will be nurse practitioners, wind turbine service technicians, ushers, lobby attendants, ticket takers, motion picture projectionists, and restaurant cooks.
How Many Jobs Are Needed for Growth in the U.S.?
A monthly increase of between 50,000 and 110,000 nonfarm payrolls is considered to be the steady-state jobs growth rate that is in line with the gradual expansion of the labor force as determined by a 2016 analysis by the Federal Reserve Bank of San Francisco.
The Bottom Line
Jobs growth refers to the number of nonfarm payroll jobs added to the economy in a month. It is a leading indicator of the health of the economy. The more jobs added indicate a healthier economy. Between 50,000 and 110,000 nonfarm payrolls is considered to be a steady job growth rate that represents a gradual expansion of the labor force.
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