how jobs growth is used in investing
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 6because 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 this metric in the context of other economic indicators despite those limitations the monthly jobs growth figure remains a key indicator of how the economy is faring 