Why does price jump all at once when news drops?

The jobs number prints and, in a second, price covers what normally takes an hour. It's not that "everyone buys at once": it's that liquidity vanishes at that exact instant. It's the same liquidity from the pillar, seen at its most extreme.

What happens to liquidity at the moment of the release?

The people posting the buy and sell orders —the liquidity providers— don't know whether the number will beat or miss. To avoid being caught on the wrong side, they pull their orders seconds before the release. The book, which was full, empties out almost completely right as the data lands.

Why is the jump so sharp?

Because the first orders that come in after the release find an almost-empty book. With no intermediate orders to slow the move, price leaps from one level to the next available one, which can be far away. That gap is the "jump": it isn't speed, it's the absence of liquidity between the old price and the new one.

Why is slippage at its worst right there?

Because it's the worst possible moment of thin liquidity. If you enter at market in that second, your order fills with whatever little is there, however bad. The slippage you suffer overnight is multiplied: here the book isn't thin, it's momentarily hollow.

How do you trade around the news?

With humility. If you aren't trading the release, step aside a couple of minutes before and let liquidity return. If you are, expect wide spreads and slippage, and never use a tight stop expecting it to be honored to the pip. Liquidity comes back in minutes; patience is free.

The news jump doesn't break the rules of liquidity: it takes them to the extreme. Understanding that momentary vacuum is understanding why "price ran away from me" on the big releases.