Tags: Cramer | employment | data | economy

Jim Cramer: 'Don't Ignore' Weak Employment Data

By    |   Friday, 10 January 2014 12:08 PM

Friday's weak December jobs report may be out of synch with employment statistics from previous months, but that doesn't mean the December data should be jettisoned, says CNBC commentator Jim Cramer.

Non-farm payrolls gained only 74,000 last month, compared with a median forecast of a 197,000 increase in Bloomberg's survey of economists. Payrolls were revised to 241,000 in November

"It [the December figure] is an outlier," Cramer explains. "But when you get an outlier the market still trades on it. We can say dismiss it, but bonds are soaring."

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The 10-year Treasury yield stood at 2.88 percent Friday midday, down 8 basis points from Thursday.

"If we dismiss this number, then we should dismiss the 300,000 numbers," Cramer argues. "You can't play that game. You can't just decide this number I'll throw away. It's a real number and a bad number."

Job growth has been "good," but it's not "robust," he notes. The December report confirms his concern about weakness in the economy. "Don't ignore this number."

As for the Federal Reserve, incoming Chair Janet Yellen will probably look at the jobs report as another justification for sticking to the Fed's policy of accommodation, Cramer states.

The bad weather, which kept 273,000 workers home during December, may account for much of the weakness, economists say.

"Given the disappointing jobs report flies in the face of nearly every other labor market metric of late, all of which point to a strengthening trend, we would put most of the surprise down to bad weather rather than a bad economy," Jennifer Lee, a senior economist at BMO Capital Markets, tells Reuters.

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Economy
Friday's weak December jobs report may be out of synch with employment statistics from previous months, but that doesn't mean the December data should be jettisoned, says CNBC commentator Jim Cramer.
Cramer,employment,data,economy
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2014-08-10
Friday, 10 January 2014 12:08 PM
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