U.S. job market hits a grim milestone. Global outplacement firm Challenger, Gray & Christmas reported Thursday that American employers have laid off nearly 1.2 million workers in the first 11 months of 2025, marking the worst job-cut total since the 2009 Great Recession. The data may partly explain Bitcoin's recent price weakness.
Layoffs Approach 1.2 Million
CGC stated that in November, 71,321 jobs were cut, a 53% decline from October's 153,074 but still significantly higher than the 57,727 cuts in November 2024. The running total for the year stands at 1,170,821 job losses, compared to 761,358 during the same period in 2024. The report noted: "It is the sixth time since 1993 that job cuts through November have surpassed 1.1 million."
Adding to the gloom, ADP reported on Wednesday that private sector employment dropped by 32,000 in November, surprising economists.
AI Not the Main Culprit
The Department of Government Efficiency accounted for the largest share of layoffs, with nearly 300,000 federal employees axed. "Market and economic conditions" drove another 250,000 job losses. Meanwhile, AI, often blamed for rendering jobs obsolete, has caused only 54,694 layoffs this year (71,683 since 2023).
Bitcoin Market Reaction
Bitcoin traded at $90,146.16 at press time, down 1.57% in 24 hours but up 5.88% for the week. The intraday range was $89,068.19 to $92,267.11. Daily trading volume surged 31% to $57.49 billion, while market cap slipped to $1.79 trillion. Bitcoin dominance edged 0.61% lower to 59.12%.
Total Bitcoin futures open interest inched up 0.09% to $57.95 billion. Liquidations finally fell below $100 million, totaling $90.58 million, with longs losing $53.83 million and shorts $36.75 million.
Analysts warn that a deteriorating labor market fuels recession fears, weighing on risk assets like Bitcoin. However, if the Fed pivots to easing in response, crypto markets could find support.