By Mark 
Non-Farm Payrolls (NFP) is a key economic indicator in the United States that measures the total number of paid U.S. workers excluding farm employees, government workers, private household employees, and employees of nonprofit organizations.
It is released monthly by the U.S. Bureau of Labor Statistics (BLS), typically on the first Friday of each month.
Non-Farm Payrolls Code (get API key)
import requests
import matplotlib.pyplot as plt
url = f'https://www.alphavantage.co/query?function=NONFARM_PAYROLL&apikey={Your Token}'
r = requests.get(url)
data = r.json()
print(data)
month=[]
value=[]
count = 0
for item in data['data']:
month.append(item['date'][:-3])
value.append(float(item['value']))
if 120 == count:
break
count += 1
month.reverse()
value.reverse()
plt.plot(month, value, 'bo', label="Month")
plt.xlabel('NoFarm Payroll')
plt.xticks(ticks=month, labels=month, rotation=45)
plt.locator_params(axis='x', nbins=len(month))
plt.ylabel('Value')
plt.legend()
plt.show()Output
NFP is important because it reflects the strength of the labor market and overall economic activity.
Therefore, a higher-than-expected NFP figure usually indicates strong job growth and a healthy economy.
As a result, it can influence financial markets, interest rate decisions by the Federal Reserve, and investor confidence.
Why Is It Excluding Farm Workers?
Farm employment is highly seasonal and volatile, making it less useful for tracking general economic trends. The same applies to certain other excluded categories.
Related Indicators
- Unemployment Rate: Released alongside NFP, showing the percentage of jobless individuals.
- Average Hourly Earnings: Tracks wage growth, giving insight into inflationary pressures.
- Labor Force Participation Rate: Shows how many people are actively working or seeking work.
Impact on Markets
NFP is closely watched by investors and economists. A strong report can boost stock prices and strengthen the U.S. dollar, while a weak report may lead to fears of an economic slowdown.