Understanding Nonfarm Payrolls
While the name nonfarm payrolls insinuates that farm workers be excluded from the statistic, there are also several other categories that the BLS does not count when compiling nonfarm payrolls data. According to the BLS, nonfarm employee classifications account for approximately 80% of U.S. business sectors contributing to gross domestic product (GDP). While this represents a significant majority of the U.S. labor force there are some notable exclusions in addition to farm workers:
Government workers: Government is a key part of the “Employment Situation” report each month but there are some government workers who are excluded. The government category covers civilian employees. However, it excludes military employees and employees of government-appointed officials. Employees of the Central Intelligence Agency, National Security Agency, National Imagery and Mapping Agency, and the Defense Intelligence Agency are also excluded.
Private households: Private household employees and domestic household workers are excluded.
Proprietors: Proprietors are generally unincorporated business owners. This includes sole proprietors and self-employed workers that operate without a registered business incorporation (e.g., without limited liability corporation or partnership status).
Non-profit employees: Though quite large, the non-profit sector is not included for consideration in the nonfarm payroll statistics.
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