2025-12-25 02:43:20

The labor market just flashed a red warning light. The U-6 unemployment rate—the broader measure that includes underemployed and discouraged workers—jumped 0.7 percentage points from September and hit 8.7% in November. That's the worst reading we've seen since August 2021.

Why should you care? This isn't just another data point. A rising U-6 typically signals recession conditions are tightening, and it tends to correlate with risk-off sentiment across asset classes, including crypto. When employment stress builds, capital often rotates toward safety—or volatility picks up as markets recalibrate expectations.

The trajectory matters too. We're not seeing stabilization; we're seeing deterioration. This data suggests economic headwinds are intensifying, and traders should be watching how this unfolds in the months ahead.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

15 Likes

Reward
15
6
Repost
Share

Comment

0/400

MEVHunterNoLoss

· 7h ago

Wow, U-6 suddenly skyrocketed to 8.7%, something really might be going wrong. --- Are we starting risk-off again? The crypto market always drops first every time. --- Wait, this data shows actual unemployment plus hidden unemployment, much scarier than the numbers we usually see. --- The market is recalibrating. I bet there will be a sharp drop next week for five cents. --- Funds are moving into safe assets. Should I reduce my positions? --- Worst since August 21? That was just before the bull market. This time is different. --- That's why I only do short-term trading. The overall environment is so bad, and you still want to buy the dip? Dream on. --- Volatility is rising, everyone. Are you ready with your stop-loss orders?

View OriginalReply0

BetterLuckyThanSmart

· 7h ago

Damn, U-6 is directly at 8.7%? The worst since 2021, this time really is different --- Here we go again, every time this kind of data comes out, the crypto circle has to tremble along, so annoying --- Recession is coming, everyone, money is flowing into safe assets, how can crypto possibly rise --- No way, I already said deterioration is not stabilization, how are there still people optimistic --- Now it's good, employment stress is coming together with capital looking for an exit, crypto will definitely take a hit this time --- 8.7% brother, we need to be prepared... really hard to say how it will go next --- Risk appetite is shifting, in simple terms, retail investors are about to be harvested again

View OriginalReply0

NFTragedy

· 7h ago

Here we go again. Every time economic data doesn't meet expectations, they say it's time to dump the market. Alright, let's see.

View OriginalReply0

RektButStillHere

· 8h ago

Another wave of recession signals, U-6 is at 8.7. This time really feels different.

View OriginalReply0

RunWhenCut

· 8h ago

Damn, U-6 is already at 8.7? We need to verify if this data is accurate. --- Another piece of bad news, the crypto market still has to take more hits. --- The recession signals are becoming more obvious... Should I reduce my holdings? --- If this really worsens, crypto assets are likely to plunge along with it. Risk-off environment means no good outcomes. --- Why do these data always come out at such times? The market is going to suffer again this month. --- Breaking 8.7 on U-6 is no small matter; the next few months could be very interesting. --- Capital is flowing into safe assets, and us small investors will probably be left in the dust. --- If it's that serious, won't the coin prices just plunge dramatically? --- It's just one data point, don't panic unnecessarily. --- No stabilization, only deterioration? Wake up, this is the market.

View OriginalReply0

SmartMoneyWallet