Nonfarm Payrolls

Nonfarm payrolls mean the number of paid jobs in the economy, excluding farm workers and some other categories. In simple terms, nonfarm payrolls show how many jobs were added or lost in most parts of the economy. Nonfarm payrolls are important because they are one of the most closely watched job market indicators in the United States. Strong nonfarm payroll growth can suggest a healthy labor market, while weak growth can suggest the economy is slowing. For example, if nonfarm payrolls rise by 180,000 in a month, it means employers added 180,000 jobs outside the excluded categories. Nonfarm payrolls are not the same as total employment. They do not include every type of worker, and they measure jobs rather than every person’s full employment situation.