US jobs in May totaled 139,000 new positions, and this represents a job growth slowdown from April’s 177,000 additions. However, this beat economist forecasts of around 125,000. The unemployment rate held steady at 4.2%, but recession fears are mounting as crypto market reaction shows increased volatility amid broader economic concerns.
JUST IN: 🇺🇸 US economy added 139,000 jobs in May, higher than expectations.
— Watcher.Guru (@WatcherGuru) June 6, 2025
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US Jobs in May Signal Hiring Shift, Crypto & Recession Risks
The US jobs in May data reveals quite a few concerning trends as job growth slowdown becomes more evident across various sectors. Federal job losses hit 22,000 positions just last month. This brings the total cuts to 59,000 since January. These layoffs and hiring trends reflect the Trump administration’s aggressive workforce reduction efforts and also Elon Musk’s efficiency initiatives that are reshaping government employment right now.
Besides the employment growth reported in May, other concerns are emerging in the labor market. As of April, the employment-to-population ratio was at 59.7%, lower than any point since the beginning of the pandemic. An increase in alternative unemployment numbers to 4.5% has economists concerned about a recession.
Political Response Highlights Economic Divisions
President Trump was clear about the fact that:
“Prices are down, income is up, our Border is closed, gasoline is CHEAP, inflation is DEAD — Our Country is BOOMING!”
Senator Ron Wyden, Oregon Democrat and the top Democrat on the Senate Finance Committee, offered a contrasting view:
“It’s clear the job market is slowing amid all the economic chaos Trump is creating, and the worst thing he and Republicans could do right now is shred the safety net and spook markets further by adding trillions to the national debt.”
He also stated:
“Trump was handed the strongest economy in the world, and without anybody around him who can control his worst impulses, he’s tearing it down.”
Market Impact and Future Concerns
Stock futures jumped right after the US jobs in May report exceeded expectations, but crypto market reaction remained mixed as recession fears persist among investors. Economists predict that monthly job additions will fall below 100,000 soon, while layoffs and hiring trends suggest continued cooling in the labor market.
There are few job openings despite the healthy economy and inflation pressures caused by tariffs are rising throughout the country. The Congressional Budget Office believes that trade policies will raise inflation by 0.4 percentage points in 2025 and 2026.
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Mark Zandi, chief economist at Moody’s Analytics, predicts that as demand softens “more palpably,” the economy will “start to see layoffs” with BLS jobs data likely falling consistently below 100,000 in the coming months.