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What is the employment statistics that investors are paying attention to?

Announced at 21:30
What is employment statistics?

Employment statistics are statistics that indicate the labor market conditions during a certain period.

✅The main contents are as follows:

* Non-farm payroll: The number of employees in sectors other than agriculture
* Unemployment rate: The percentage of people in the labor force who are actively seeking employment but are unable to find a job
* Average hourly wage: The wage per hour

Employment statistics are an important indicator for determining the economic situation.

In particular, the number of non-farm payrolls is closely watched as a leading indicator of economic activity.

If the number of non-agricultural employees increases, it is considered that the economy is expanding.

Conversely, if it decreases, it is considered that the economy is shrinking.



✅ Impact of Employment Statistics

Employment statistics also have a significant impact on exchange rates and stocks.

When the number of non-agricultural employees increases, there is a tendency for expectations of economic expansion to rise, and stock prices and exchange rates to increase.

Conversely, a decrease leads to increased concerns about economic recession, and a tendency for stock prices and exchange rates to decline.



✅ Additionally, employment statistics also influence the Federal Reserve's monetary policy.

The Federal Reserve operates monetary policy with the goal of stabilizing employment and prices.

If the number of non-farm employees is not increasing sufficiently, the FRB may consider loosening 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
* Stability of the financial system

In order to achieve the mission of "maximizing employment," it is responsible for determining monetary policy.

Financial policy is a policy that uses measures such as interest rates and quantitative easing to influence the economy.

The FRB determines its monetary policy with reference to 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: relax monetary policy.
* If the number of non-farm payroll employees increases: tighten monetary policy.
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