Nonfarm Payrolls (NFP)

Nonfarm Payrolls (NFP) is a monthly report showing how many jobs the U.S. economy added or lost, excluding farm workers. It's released on the first Friday of each month and is one of the most closely watched economic indicators because job growth signals whether the economy is strengthening or weakening. When NFP numbers come in stronger than expected, stock and bond markets often react sharply—investors get optimistic about consumer spending, but the Federal Reserve might raise interest rates to cool inflation. Conversely, weak job numbers can trigger market sell-offs as investors worry about a slowdown. For retail investors, NFP day is worth watching because it typically causes significant market volatility.