Nonfarm payrolls

Simultaneously, a robust job market could imply that the economy is expanding at a rapid pace, which may result in inflationary pressures, particularly in the form of higher wages.

If the employment numbers are strong, Fed officials might contemplate raising key interest rates as a measure to control inflation.

While the overall number of jobs added or lost in the economy is obviously an important current indicator of what the economic situation is, the report also includes several other pieces of data that can move financial markets: 1.

This is an important part of the report as the number of people out of work is a good indication of the overall health of the economy, and this is a number that is watched by the Fed as when it becomes low (generally anything below 5%) inflation is expected to start to creep up as businesses have to pay up to hire good workers and increase prices as a result.

This initial rise in prices may mean that workers demand higher wages (especially as the economy reaches full employment) causing further inflation.

An important component of the report which can move markets as traders re-price growth expectations based on the revision to the previous number.