👷‍♂️ Employment Data — The Hidden Driver of Central Bank Decisions – Trading Systems – 12 November 2025

👷‍♂️ Employment Data — The Hidden Driver of Central Bank Decisions

💡 The Lesson

When you hear “Non-Farm Payrolls” or “Unemployment Rate,” don’t scroll past — those numbers can move the entire forex market in seconds.
Why? Because jobs create spending, and spending drives growth and inflation — the two things central banks care about most.

📊 What Is Employment Data?

Employment reports measure how many people are working, how many are looking for work, and how much they’re earning.
The main indicators are:

• Unemployment Rate — % of people jobless but seeking work

• Non-Farm Payrolls (NFP) — number of jobs added or lost in the U.S. economy

• Average Hourly Earnings — shows wage inflation

🏦 Why It Matters

A strong labor market = strong economy.
When more people have jobs, they spend more → inflation can rise → central banks may hike rates → currency strengthens.

A weak labor market = slowing economy.
Less spending → lower inflation → rate cuts possible → currency weakens.

⚡ Example:

U.S. NFP expected: +150K
Actual: +300K → job growth doubled expectations → USD spikes.

Next month: NFP expected: +200K
Actual: +70K → big miss → USD falls sharply.

Traders watch these releases like hawks — they often cause the biggest single-day moves in major pairs like EURUSD or GBPUSD.

⚙️ Pro Tip — Don’t Just Watch Jobs, Watch Wages

If job growth is strong and wages are rising, inflation risk increases fast.
That’s when central banks turn hawkish — and currencies rally.

🚀 Takeaway

Jobs numbers aren’t just data — they’re signals.
They reveal how healthy an economy truly is and whether central banks will tighten or ease.
Learn to read employment trends, and you’ll start catching market moves before they hit the chart.

📢 Join my MQL5 channel for more forex fundamentals and trading insights:
👉 https://www.mql5.com/en/channels/issam_kassas