Techub News, citing CryptoBriefing, reported that U.S. nonfarm payrolls increased by 172,000 in May, coming in above expectations. The unemployment rate remained unchanged at 4.3% during the same period. The employment figures provide a macroeconomic reference point for markets tracking the Federal Reserve’s interest-rate path and the pricing of risk assets.
Americans Wanting Work but Not Actively Looking Rose to 6.2 Million
The report also noted that the number of Americans who want a job but are not actively looking for one rose to 6.2 million, up by 76,000 from April. According to the report, this data indicates that the degree of tightness in the labor market has been underestimated, adding another layer to how the labor supply and demand situation is assessed.
The report said the stronger-than-expected May nonfarm payrolls data may reduce the probability of near-term interest-rate cuts by the Federal Reserve. When interest rates remain elevated, traditional assets such as Treasury bonds become relatively more attractive, which may create selling pressure on risk assets such as Bitcoin and Ethereum.