Jim Cramer: Jobless Claims Matter Less Than Finding a Vaccine
For the tenth week in a row, jobless claims last week came in lower than the week preceding it, as the labor fallout from the pandemic appears to be slowing. Applications for unemployment benefits have eased up as many states across the U.S. reopen following months of strict stay-at-home orders.
According to the Labor Department, for the week ending June 6, 1.54 million Americans filed jobless claims. The week earlier, 1.88 million claims were filed. In April, the U.S. was seeing weekly claims of over 4 million. However, overall, more than 47 million claims have been filed since the beginning of the deadly virus outbreak in March, surpassing figures seen during the Great Depression.
Last Friday, the Bureau of Labor Statistics reported that a net 2.51 million jobs were created in May, significantly lower than estimates of 9 million losses. Leisure and hospitality saw the biggest gain in jobs, adding back 1.2 million after a loss of 7.5 million in April. Much of that was driven by jobs in bars and restaurants as many opened back up slowly in May.
The unemployment rate in May fell to 13.3%.
On Wednesday, the Federal Reserve said an economic recovery will take a long time, estimating the unemployment rate will be at 9.3% by the end of the year.
Jobless claims for the week ending June 6 may show signs of easing, but it’s still over 1.5 million claims. Jim Cramer weighed in on whether investors should be worried.
“I'm not worried,” he said. "The news that you gave me from Fauci is more important," he added, citing TheStreet's interview with Dr. Fauci Thursday morning. "If you have enough antibodies that you're in good shape, then you're gonna make it. The economy will make it," said Cramer.