According to @KobeissiLetter, US job cut announcements rose 58% year over year in 2025 to 1,206,374, the highest total since 2020 and the second-highest annual reading since 2009 based on Challenger, Gray & Christmas tracking since 1989, source: @KobeissiLetter citing Challenger, Gray & Christmas. The average monthly pace of job cuts exceeded 100,000 for the first time in five years, source: @KobeissiLetter. The government sector led with 308,167 job cuts, followed by technology with 154,445 and warehousing with 95,317, highlighting where traders may focus sector risk and rotation, source: @KobeissiLetter. The author summarized 2025 as a rough year for the US job market, source: @KobeissiLetter.

According to The Kobeissi Letter, US employers announced 93,816 job cuts in May 2025, marking a 47% year-over-year increase and the highest level for any May since 2020. The services sector led with 22,492 layoffs, its highest in five years, followed by retail and technology at 11,483 and 10,598 cuts respectively (source: The Kobeissi Letter). Such widespread layoffs in key sectors can add pressure to traditional financial markets, often increasing volatility and risk-off sentiment among investors. Historically, labor market weakness has driven increased interest in alternative assets like Bitcoin and Ethereum as traders seek non-correlated opportunities. Short-term, traders should expect heightened volatility and potential inflows into crypto assets as macroeconomic uncertainty rises.