The U.S. job market is sending alarm bells. Employers announced over 1.17 million job cuts throughout 2025—marking the second-highest annual total in the past 16 years.

What makes this number significant? It suggests economic pressure is building. When layoffs accelerate at this scale, consumer spending typically contracts. Less spending means weaker economic growth. Weaker growth often translates into broader market volatility.

For those tracking macro trends and risk sentiment, this data point matters. Historical precedent shows that periods of elevated unemployment correlate with flight-to-safety dynamics across asset classes. Whether traditional equities, commodities, or digital assets—everything feels the ripple when labor markets deteriorate.

The comparison to financial crisis-era levels adds perspective. We're not quite there yet, but the trajectory bears watching. Asset managers and traders increasingly factor employment health into their positioning. It's a reminder that macro headwinds don't stay contained in one corner of the market—they spread.