What Is Jobs Growth?
Let me explain jobs growth directly: in the US, it's measured by the number of employees added to nonfarm payrolls each month, as reported by the Bureau of Labor Statistics (BLS). This metric is a core indicator of how fast the economy is expanding. You'll find nonfarm payrolls in the BLS's Employment Situation Summary, which most people just call the monthly jobs report.
Understanding Jobs Growth
When I talk about jobs growth, I'm referring to the net increase in nonfarm payrolls from the previous month. This figure gets a lot of attention because employment drives economic performance. If you see bigger gains, it points to growth above the usual trend; smaller gains or losses suggest things are slowing down.
Keep in mind, the numbers in the Employment Situation Summary are estimates. They get revised in the next two reports as more survey data comes in. A monthly increase of around 130,000 nonfarm payrolls is what we consider statistically significant.
For example, in August 2025, nonfarm payroll employment rose by 22,000. The unemployment rate, from a separate survey, edged up to 4.3%. Jobs trended up in health care, but that was balanced out by losses in federal government, mining, quarrying, and oil and gas extraction.
How Jobs Growth Is Measured
The BLS gathers this data by surveying about 119,000 businesses and government agencies, which cover roughly 20% of total US nonfarm employment. The Employment Situation Summary pulls from this establishment survey to track nonfarm jobs by industry, plus a household survey for employment status. Together, they deliver the big headlines on job growth and unemployment.
While payrolls are broken down by industry, the number you hear most is the net change from the prior month—it estimates jobs added outside agriculture. Farm jobs are left out because they're highly seasonal and tough to pin down accurately.
Why Jobs Growth Matters for the Economy and Policy
Jobs growth is vital to the economy, so the Federal Reserve watches it closely when adjusting monetary policy. As a broad measure of US employment and one of the first reports out each month, the Employment Situation Summary can shift financial markets. It also includes data on average weekly hours worked, which shows labor demand, and average hourly earnings, an early sign of wage inflation.
Using Jobs Growth in Investing
Traders like you compare these numbers to analysts' forecasts to see if payroll gains beat or missed expectations. But remember, the figures vary month to month and face big revisions, so one report doesn't make a trend. You need to view it alongside other economic indicators. Still, it's a top signal of economic health.
Where to Find Jobs Growth Data
You get jobs growth numbers from the BLS, based on their survey of 119,000 businesses and agencies representing 20% of nonfarm employment.
Jobs with the Highest Growth Rates
According to the BLS, from 2023 to 2033, the fastest-growing jobs include wind turbine service technicians, solar photovoltaic installers, nurse practitioners, data scientists, information security analysts, medical and health services managers, and physician assistants.
US Job Growth Predictions
Looking ahead, total US employment is projected to add about 6.7 million jobs from 2023 to 2033. That's an annual growth of 0.4%, slower than the 1.3% from 2013 to 2023. Much of this slowdown ties to slower population growth and declining labor force participation as baby boomers age.
The Bottom Line
In summary, jobs growth tracks the monthly addition of nonfarm payroll jobs, acting as a leading indicator of economic health. More jobs mean a stronger economy—it's that straightforward.
Key Takeaways
- Jobs growth is the monthly change in nonfarm payrolls from the BLS.
- Figures come out monthly and get revised over the next two months.
- They often influence financial markets as a top economic indicator.
- Farm jobs are excluded from these calculations.
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