American economy adds 172,000 jobs in May as unemployment holds at 4.3%

The US economy added 172,000 nonfarm jobs in May, roughly double what economists had predicted. The unemployment rate held steady at 4.3%, according to the Bureau of Labor Statistics report released on June 5.

Wall Street had been bracing for something closer to 85,000 new jobs. Bitcoin slid to approximately $61,900-$62,000 in the wake of the release.

Where the jobs landed

Leisure and hospitality, local government, and healthcare drove the bulk of the gains. Financial activities, meanwhile, moved in the opposite direction, shedding jobs during the month.

March and April payroll figures were revised upward by a combined 93,000 jobs.

Average hourly earnings climbed 0.3% in May.

What this means for crypto investors

Bitcoin’s immediate reaction to the jobs report was instructive. The largest cryptocurrency by market cap dropped to the $61,900-$62,000 range.

Strong jobs data reduces the likelihood of rate cuts. Higher-for-longer interest rates make yield-bearing assets like bonds more attractive relative to non-yielding assets like Bitcoin.

The upward revisions to March and April data add another layer of concern for crypto bulls. It’s not just that May was strong. The entire spring hiring picture was materially better than previously understood.

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