What it is
The labor market describes employment, hiring, wages, unemployment, and the balance between worker demand and supply.
Why it matters
Labor data connects household income, consumer demand, wage pressure, and the Fed's inflation outlook.
How it affects investors
Strong jobs data can support growth expectations, but it can also keep rate expectations elevated if wage pressure remains firm.
Related concepts
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Inflation
Inflation shapes the path of interest rates, consumer purchasing power, corporate margins, and the valuation investors place on risk assets.
Federal Reserve
The Fed influences short-term rates and financial conditions, which flow through bond yields, credit, the dollar, and equity valuations.
How Economic Data Moves Markets
Economic data changes expectations for growth, inflation, earnings, and central-bank policy.
Opposite concepts
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Federal Reserve