1. What is 'Non-Farm'?

'Non-Farm' stands for 'Non-Farm Payrolls', which is a very important economic data released by the United States every month. It refers to the number of jobs added in sectors other than agriculture, such as factories, stores, hospitals, etc. In other words, it indicates how many people in the United States found new jobs in a month (excluding agriculture, military, self-employed, etc.).

People pay attention to this number because:

High number: Indicates an active economy, companies have money to hire, and the economy is healthy.

Low number: Indicates a sluggish economy, companies do not want or cannot hire.

🚨 Non-Farm added 177K, above expectations, wage growth weakens ↓

In April, 177,000 new job opportunities were added (excluding agricultural jobs).

Although this is less than March, it is more than what was originally expected, indicating that the situation is still acceptable.

However, wages did not increase much, showing that while companies are hiring, they are not offering much more money. The U.S. central bank, the Federal Reserve (Fed), will decide whether to adjust interest rates based on economic conditions. Originally, many thought that interest rates might be lowered in June (to make borrowing cheaper and stimulate the economy).

But now, because this Non-Farm report is not too bad, people are starting to doubt whether interest rates will actually be lowered in June, with the probability now being only half. Overall, the number of people looking for jobs has increased, which is good news; however, the lack of wage growth raises concerns about the economy; the Fed may continue to observe and not rush to act; stock and market fluctuations will occur due to uncertainty.