Employment Data
Labor market indicators and currency impact
Employment Data in Forex
Employment data is one of the most market-moving economic indicators, directly affecting central bank policy decisions and currency strength. Strong job growth signals economic health and potential rate hikes, while weak employment data can lead to dovish policy shifts. Non-Farm Payrolls alone can move USD pairs 150-300+ pips.
Non-Farm Payrolls
EXTREME IMPACT - USD
Monthly US job creation report, most watched employment indicator globally.
Unemployment Rate
HIGH IMPACT - ALL
Percentage of labor force actively seeking employment, key Fed dual mandate indicator.
Average Hourly Earnings
HIGH IMPACT - USD
Wage growth indicator, important for inflation expectations and Fed policy decisions.
Initial Jobless Claims
MEDIUM IMPACT - USD
Weekly unemployment benefit applications, timely indicator of labor market health.
Labor Force Participation
MEDIUM IMPACT
Percentage of working-age population actively participating in labor market.
Job Openings (JOLTS)
MEDIUM IMPACT - USD
Job openings and labor turnover survey, indicates labor demand strength.
Trading Employment Data
Strong Employment Impact
- +High job growth → Currency strength (economic health signal)
- +Rising wages → Inflation expectations → Rate hike probability
- +Low unemployment → Full employment → Hawkish central bank policy
Weak Employment Impact
- -Job losses → Currency weakness (recession fears)
- -Rising unemployment → Economic slowdown → Rate cut expectations
- -Falling wages → Disinflationary pressures → Dovish policy shift