This is what employment statistics mean!
Employment statistics are statistics that indicate the state of the labor market over a certain period of time.
✅ The main contents are as follows:
* Non-farm payroll employment: the number of employees in sectors other than agriculture
* Unemployment rate: the percentage of the labor force that is actively seeking work but is unable to find it
* Average hourly wage: the wage per hour worked
Employment statistics are one of the important indicators for determining the state of the economy.
In particular, non-farm payroll employment is closely watched as a leading indicator of economic conditions.
If the number of non-farm payroll employees increases, it is considered that the economy is expanding.
Conversely, if the number decreases, it is considered that the economy is contracting.
✅ Impact of employment statistics
Employment statistics also have a significant impact on exchange rates and stocks.
When the number of non-farm payroll employees increases, there is a tendency for expectations of economic expansion to increase, leading to an increase in stock prices and exchange rates.
Conversely, when the number decreases, there is a tendency for concerns about economic recession to increase, leading to a decrease in stock prices and exchange rates.
✅ Additionally, employment statistics also have an impact on the monetary policy of the Federal Reserve.
The Federal Reserve operates its monetary policy with the goal of promoting employment and price stability.
If the number of non-farm payroll employees is not increasing sufficiently, the FRB may consider easing monetary tightening.
Conversely, if the number of employees is increasing too much, the FRB may consider strengthening monetary tightening.
✅ Mission of the FRB
The mission of the FRB is
* Price stability
* Maximizing employment
* Financial system stability
To achieve the mission of "maximizing employment", it will decide on monetary policy.
Financial policy is a policy that uses measures such as interest rates and quantitative easing to influence the economy.
The Federal Reserve Board (FRB) determines its monetary policy based on employment statistics.
Based on the results of employment statistics, the FRB may take one of the following actions:
* If the number of non-farm payroll employees does not increase: ease monetary tightening
* If the number of non-farm payroll employees increases: strengthen monetary tightening
✅ The main contents are as follows:
* Non-farm payroll employment: the number of employees in sectors other than agriculture
* Unemployment rate: the percentage of the labor force that is actively seeking work but is unable to find it
* Average hourly wage: the wage per hour worked
Employment statistics are one of the important indicators for determining the state of the economy.
In particular, non-farm payroll employment is closely watched as a leading indicator of economic conditions.
If the number of non-farm payroll employees increases, it is considered that the economy is expanding.
Conversely, if the number decreases, it is considered that the economy is contracting.
✅ Impact of employment statistics
Employment statistics also have a significant impact on exchange rates and stocks.
When the number of non-farm payroll employees increases, there is a tendency for expectations of economic expansion to increase, leading to an increase in stock prices and exchange rates.
Conversely, when the number decreases, there is a tendency for concerns about economic recession to increase, leading to a decrease in stock prices and exchange rates.
✅ Additionally, employment statistics also have an impact on the monetary policy of the Federal Reserve.
The Federal Reserve operates its monetary policy with the goal of promoting employment and price stability.
If the number of non-farm payroll employees is not increasing sufficiently, the FRB may consider easing monetary tightening.
Conversely, if the number of employees is increasing too much, the FRB may consider strengthening monetary tightening.
✅ Mission of the FRB
The mission of the FRB is
* Price stability
* Maximizing employment
* Financial system stability
To achieve the mission of "maximizing employment", it will decide on monetary policy.
Financial policy is a policy that uses measures such as interest rates and quantitative easing to influence the economy.
The Federal Reserve Board (FRB) determines its monetary policy based on employment statistics.
Based on the results of employment statistics, the FRB may take one of the following actions:
* If the number of non-farm payroll employees does not increase: ease monetary tightening
* If the number of non-farm payroll employees increases: strengthen monetary tightening
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