This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Employment Situation Report Definition

Dictionary of Financial Terms

Official name: Employment Situation

What exactly? A measure of net new jobs created. Also measures the unemployment rate, average hourly earnings and the length of the average workweek.

Source: Labor Department

Frequency: Monthly

Released when? First Friday of the month at 8:30 a.m. Eastern. Data for prior month.

Market importance: High. Almost always moves markets. Very timely. Contains information about both job and wage growth and is considered the single best measure of the health of the economy. The tone of the employment report generally sets the tone for the other economic indicators that are released throughout the month.

Other notes: (a) Two key pieces of this report -- the unemployment rate and average hourly earnings -- appear in many inflation models. And various pieces of this report are used to help predict a host of other economic indicators. Average hourly earnings are used to help predict both personal income and the wages and salaries component of the Employment Cost Index. The index of aggregate manufacturing hours is used to help predict industrial production. The change in construction jobs is used to help predict both housing starts and construction spending. (b) For average hourly earnings, the headline number is the percent change from the prior month, but we also graph the year-on-year change. That way you can see the rate at which earnings are increasing or decreasing.

Definitions of Financial Terms

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%
Top Rated Stocks Top Rated Funds Top Rated ETFs