U.S. May jobs data continued to demonstrate the resilience of the labor market, cooling market expectations for a swift interest rate cut by the Federal Reserve. For the crypto market, this report is significant not only for short-term volatility but also for whether the liquidity environment will continue to improve in the second half of the year.
Nonfarm payrolls increased by 172,000 in May.
Data released by the U.S. Bureau of Labor Statistics shows that nonfarm payrolls increased by 172,000 in May, while the unemployment rate remained at 4.3%. Average hourly earnings rose 0.3% month-over-month and 3.4% year-over-year, indicating that wage growth remains relatively robust.
Previously, the market had worried that high interest rates and an economic slowdown would more significantly suppress hiring. However, the latest data was better than many economists expected, easing concerns about a rapid weakening of employment.
The non-farm payroll data for March and April were also revised upward by a total of 93,000, further reinforcing the assessment that the job market remains relatively stable.
- May non-farm payrolls increased by 172,000.
- Unemployment rate: 4.3%
- Average hourly wage growth rate: 3.4% year-on-year.
Healthcare and services drive growth
By industry, the new jobs primarily came from healthcare, leisure and hospitality, and government. Meanwhile, employment in the financial sector decreased by 22,000.
According to reports, the number of employees in the financial industry has decreased by 107,000 since its peak in May 2025, indicating that some industries are still under pressure from the high-interest-rate environment.
The crypto market continues to closely watch the Federal Reserve's path.
In the past two years, as spot Bitcoin ETFs have driven institutional funds into the market, the sensitivity of crypto assets to US macroeconomic data has increased significantly. Stronger-than-expected employment data usually means that the Federal Reserve does not need to rush to cut interest rates.
For risk assets like Bitcoin and tech stocks, lower interest rates often mean a more relaxed liquidity environment, which can reduce the attractiveness of fixed-income assets. Conversely, if employment and inflation remain resilient, interest rates may remain high for a longer period, suppressing risk appetite.
This report is currently more about reducing market bets on rapid rate cuts, but it's not enough to reignite concerns about further tightening. Going forward, inflation data and subsequent Fed meetings will remain the main variables of interest for the crypto market.
