Philadelphia Fed Employment Index measures labor market conditions in the Philadelphia Federal Reserve zone. This region includes Pennsylvania, New Jersey and Delaware, i.e. states with high economic activity. The index provides an indirect outlook of the economic development of the entire country.
The index is included in the overall Philadelphia Fed business activity index. Readings above zero indicate an improvement in employment during the reported month.
A higher than expected reading is seen as positive for the US dollar, because it is an indication of growing economic activity in the region.