The U.S. labor market showed surprising weakness in 2025, adding only 584,000 jobs throughout the year despite expectations for stronger growth. This slowdown came amid multiple headwinds: increased immigration enforcement and visa restrictions coupled with federal workforce cuts created structural headwinds for employment gains. The combined effect of these policy shifts alongside natural economic cycles painted a complex picture for how macro conditions might influence risk asset valuations and investor appetite for alternative markets.
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The U.S. labor market showed surprising weakness in 2025, adding only 584,000 jobs throughout the year despite expectations for stronger growth. This slowdown came amid multiple headwinds: increased immigration enforcement and visa restrictions coupled with federal workforce cuts created structural headwinds for employment gains. The combined effect of these policy shifts alongside natural economic cycles painted a complex picture for how macro conditions might influence risk asset valuations and investor appetite for alternative markets.