The Importance of Non Farm Payroll in Forex Market

PAMM Investments Round Table Forex

The Non Farm Payroll is an important indicator which is needed to be considered about when you start investing forex. This indicator is one of the most wanted data chased by traders. Many of them even take profit when this report is being released.

So, what is exactly Non Farm Payroll all about? Non Farm Payroll report is a data which shows salary or cost that is paid to US employees excluded:

  • Government Employee
  • Housings Employee
  • Non Profit Organizations or Social Organizations Employee
  • Farm Labors

Non Farm Payroll report is performed by US Bureau of Labor Statistics in monthly basis. It’s published in the first Friday at 07.30 P.M. (Western Indonesia Time). This report is a comparison between weekly salary which is paid to Non Farm Payroll components and total wages which are paid to all employees. The total wages paid to the Non Farm Payroll components contributes about 80% from the US GDP and usually used by US Government to determine economic policies and predict the future economy activities.

This indicator is treated as grade A indicator since the report has a very significant role in making a big shock to USD. In simple words, it’s said that if Non Farm Payroll report rises up, the US Dollar will be stronger because the rising of salary paid to all employees reflects the number of available working fields within the population.  At the end, this will generate economic stability in the US and it means USD will get stronger.

The report consists of below data:

Working Age Status:

1. Citizens within the Productive Age/ Two Periods of Working

1.1 Working

1.2 Non Working

2. Non-Working-Age Citizens

Percentage of  Non Working Citizens:

3. Non Working Citizens Composition Percentage

3.1 Adult Men

3.2 Adult Women

3.3 Teenagers

3.4 White People

3.5 Black People (Africa-American)

3.6 Hispanic and Latinas Citizens

Details of Working Citizens:

4. Composition of Working Citizens includes Non Farm Payroll Components:

4.1 Commodities Production Sector

4.1.1 Construction

4.1.2 Manufacture

4.2 Service Supplier Sector

4.2.1 Retail Trading

4.2.2 Professional and Business Service

4.2.3 Health and Education Service

4.2.4 Hospital and other services

4.3 Government

5. Working Hours

5.1 Total Working Hours

5.2 Industry

5.3 Overtime

Wages/salary to be paid:

  • Average Hourly Basis Salary (total)
  • Average Weekly Basis Salary (total)

Happy trading in PAMM Investments !

Don’t forget to read this important article for PAMM trader

1. How to become a PAMM Trader

2. Understanding your Forex Trader Level as PAMM Trader