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New US unemployment claims lowest in 52 years: ‘Strongest economy perhaps I have ever seen’

CNBC host Jim Cramer hails jobs numbers

Oliver O'Connell
New York
Thursday 09 December 2021 17:22 EST
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Jim Cramer says US economy strongest he's ever seen

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Weekly jobless claims in the US fell to a new 52-year low last week as the jobs market climbs back up from its Covid-19 pandemic-era collapse

Labor Department data released on Thursday show that initial filings for unemployment insurance totalled 184,000 for the week ending 4 December.

The last time they were that low was on 6 September 1969 when 182,000 people filed for unemployment — just six weeks after man landed on the moon.

Coming in under a Dow Jones economist survey prediction of 211,000, the number represents more progress for the labour market, despite continued shortages of workers in many sectors as the economy continues to right itself as the pandemic recedes.

While a correction is likely when the figures are adjusted, there is still an evident trend of a continuing rapid drop in claims.

CNBC host Jim Cramer appeared ecstatic about the new data and the outlook for the economy as a whole.

Delivering his 2022 Investing Club Game Plan on Thursday afternoon, Cramer said: “So what do I see for 2022? What’s my outlook? Right, first of all, to me, we have the strongest economy, perhaps I have ever seen.

“See that number this morning, that unemployment number? It’s the best in years, best since ’69,” he added. “We have all spotted the endless help wanted signs, the housing and apartment shortages, the tremendous demand for goods and services. A marvel to behold.

“Oh, people are confident about their jobs. I say fantastic, and the ability to even get better ones if they want to,” he continued.

“They’re spending more than I’ve ever seen, but they’re doing it with cash, not on credit. They’re doing so in roaring ‘20s style, but there’s nothing to feel guilty about, we’ve been through Hell as a people.”

Acknowledging the continued threat of inflation from supply chain issues caused by port delays and truck driver shortages, he said that only having one type of inflation was “tremendous news”.

He explained that it will make the Federal Reserve’s job easier, allowing the central bank to space out rate hikes making them more “palatable” so they do not harm investment portfolios.

Cramer noted that Covid-19 variants will continue to be a factor, slowing the economic recovery and denting confidence, but argued that he has “trust in science” and that pharmaceutical companies have not yet let us down and will not in the future.

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