CNBC’s Jim Cramer said Thursday that massive job gains in June indicate confidence in the United States economy despite the coronavirus pandemic.
“There is an optimism in the country that I think is often not shared with people on the air, and that is just because we don’t see the hiring. But people are hiring,” Cramer said in “Squawk Box.” “Frankly, I found it surprising compared to what we heard.”
Nonfarm payrolls increased by 4.8 million in June, as the unemployment rate in the United States fell to 11.1%, according to Labor Department figures released Thursday. Economists surveyed by Dow Jones had anticipated a job gain of just under 3 million and an unemployment rate of 12.4%.
The Dow Jones Industrial Average rose more than 350 points Thursday morning in job earnings. As of Wednesday’s close, the Dow, S&P 500 and Nasdaq were on the way for a positive week. The Nasdaq closed at another record on Wednesday.
Cramer, host of “Mad Money,” said he believes the strength of hiring in June, following the surprising job increases in May, is based on the belief that the reopening of state economies from driven closings For coronavirus would be fine.
“Obviously there have been problems with the opening,” Cramer acknowledged, as some states pause or reverse their plans to reopen as Covid-19 cases increase in the south and west.
However, he said he doesn’t want to put a “negative shine” on June’s job numbers.
“We are not where we thought … we would be, say, eight weeks ago. We had a strong economy before. We are seeing the force again,” Cramer added in “Squawk on the Street.”
New daily cases of coronavirus in the US hit another record, exceeding 50,000 on Wednesday, according to data from Johns Hopkins University. Many states continued to see unprecedented spikes on Wednesday, including Arizona, Texas, and California.
Cramer said he was encouraged by the considerable job gains in leisure and hospitality, with the sector accounting for about 40% of total job growth.
However, he said he anticipates continued difficulties for restaurants, calling it one of the biggest risk factors for continuing the incredible stock recovery from its lows caused by the March virus.
“The only thing that can really stop [this market] it is if restaurant and travel, leisure and sports employment cannot return because we cannot control the pandemic, “he said.
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