NFP means NON FARM PAYROLL
Non Farm Payroll is one of the biggest news that every trader awaits on every first Friday of the month
It's a news that contains various data and statistics released by the US Bureau of Labor and Statistics
It's very influential as an indicator of US Economy because of the US Federal Reserve makes monetary policy decisions based on this data
1). Non Farm Payroll increase
This is the number of new jobs added in the US labor sector in the previous month. These data includes employment in the manufacturing sector, Construction sector, Goods sector etc. Excluding farm workers (hence the name), Also excluding Private Household employees and non profit organizations. It is usually compared to the previous data
NFP also includes
2) Unemployment rate of the US
3) Which sectors of the economy, these jobs were added mostly
It gives investors and traders where are the possible sectors to invest in as the sector that added more jobs would be most likely to have experienced growth
4). It also includes the Average hourly earnings of the workers in the US
This is also an Economic indicator because even if the number of workers didn't change, but however their earnings increased, it would have the same effect as if their number increased. Same also could be interpreted in reverse, if their earnings reduced
5.) Then lastly the data includes a revision of previous non farm payroll. Because investors compare these values together, whether there has been an improvement or reduction. This also gives you an idea if the economy is growing or reducing