## How Do U.S. Non-Farm Payrolls Data Affect Global Financial Markets? Key Indicators Investors Must Know

Why can non-farm payrolls data shake the global capital markets? This report, released monthly by the U.S. Bureau of Labor Statistics, has become one of the most closely watched economic indicators by investors worldwide. As the release time approaches, markets often experience significant volatility, with stocks, forex, and cryptocurrencies all reacting in a chain after the data is published.

## The True Definition of Non-Farm Payrolls Data

Non-farm payrolls data refers to the employment situation report of the U.S. non-agricultural population, including three core indicators: non-farm employment numbers, employment rate, and unemployment rate. This report covers employment statistics from both private and government sectors and serves as a barometer of the U.S. economy’s health.

Compared to official data, private sector reports also hold reference value. The ADP Research Institute releases a monthly private-sector employment report covering employment dynamics of approximately 35 million workers, providing early signals of market trends.

## Timing and Release Cycle of Major Non-Farm Payrolls Data

**U.S. Non-Farm Payrolls Data** (official version) is released once a month at:
- **First Friday of each month** at 8:30 a.m. Eastern Time (EDT) during daylight saving time or 9:30 a.m. during standard time
- About 8:30 or 9:30 p.m. Taipei time

The private sector version (ADP data) is released earlier:
- **First Wednesday of each month** at 8:00 or 9:00 a.m. Eastern Time
- About 8:00 or 9:00 p.m. Taipei time

Investors often regard the release time of major non-farm payrolls as an important trading milestone, preparing their positions in advance.

## Why Are Global Capital Markets Watching Non-Farm Data?

The productivity of non-farm employment accounts for over 80% of U.S. GDP, making this data a direct reflection of economic activity. When employment rises and unemployment falls, it indicates an expanding economy, increased corporate profitability, and strong consumer demand. Conversely, weak data may signal slowing growth or recession risks.

The Federal Reserve also considers non-farm data crucial when setting interest rate policies. Strong employment figures can boost expectations of rate hikes.

## How to Interpret Data After Major Non-Farm Payrolls Are Released?

After obtaining the data, investors should focus on the trend of unemployment rate changes, but not rely solely on a single month’s figure. A more scientific approach is to observe the 12-month average employment growth trend, combined with other macro indicators like CPI for comprehensive judgment.

When non-farm employment increases, it usually signals consumer expansion and active hiring, supporting dollar appreciation and driving the stock market higher. Conversely, declining data may trigger a chain reaction of dollar depreciation and stock market declines.

## Impact of Non-Farm Data on Various Asset Classes

**Stock Market Impact**: Data exceeding expectations often pushes stock prices higher, as markets anticipate improved corporate earnings; underwhelming data can lead to stock corrections.

**Forex Market Volatility**: Non-farm data is a decisive factor for the dollar’s movement. Strong data attracts international capital inflows into dollar assets, while weak data prompts investors to seek other currencies for safety.

**Cryptocurrency Chain Reactions**: Although non-farm data does not directly impact the crypto space, indirect effects are evident. Strong data may lead investors to reduce high-risk crypto allocations; unexpectedly weak data might cause some investors to turn to cryptocurrencies as alternative assets.

**Index Market Performance**: Major indices are highly sensitive to non-farm data. Optimistic data drives up component stocks, while pessimistic data accelerates index adjustments.

Investors should remember that around the release time of major non-farm payrolls, opportunities abound, but risks are also present. It’s important to assess the magnitude of data deviations from expectations, the current market environment, and other economic signals to avoid being led solely by a single data point.