The employment rate is an economic factor investors pay great attention to before buying or selling a particular currency. It is a way of measuring the average productivity of the country within a specific period. Of course, when more people are employed, it suggests improving productivity within the country. To this end, every country releases its employment rate periodically, say monthly or quarterly.
Forex traders often pay significant attention to the US NFP report released every first Friday of the month. NFP, which stands for the Non-Farm Payrolls, is used to measure the total number of newly hired paid workers in the United States except for farm employees, private household employees, government employees, and other non-profit organisations. This report is used to measure the progress of the U.S. economy by demonstrating the increase or decrease in the pace of job creation by a country at the end of each month. As expected, increasing the employment rate by creating more jobs favours an economy. As a result, a country's currency value will appreciate in return. A high unemployment rate would otherwise reduce the country's currency value.