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Cramer seeks new signs of recovery

If the recovery is all about jobs, new signs suggest the recovery is gaining momentum.

On Thursday, the latest data showed that the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

Specifically, initial claims for state unemployment benefits declined 10,000 to a seasonally adjusted 311,000, the lowest level since November, the Labor Department said on Thursday.

The four-week moving average for new claims, considered a better measure of underlying labor market conditions as it irons out week-to-week volatility, fell 9,500 to 317,750. That was the lowest level since September.

Because the numbers touched their lowest levels in months, chatter immediately surfaced which suggested that the labor market was getting stronger.

Although the conclusion seems reasonable, Jim Cramer doesn't like to rely on one set of data to draw such an important conclusion. He likes to confirm these kinds of developments elsewhere in the market.

"And if you really want to get a read on new hiring, I always like to turn to Paychex, the second largest payroll processor in the US," said Cramer.

James A. Guilliam | Taxi | Getty Images

Comments made by Paychex CEO Marty Mucci appear to confirm the optimism.

"We are looking at 16 consecutive quarters where checks per payroll are up," he said in an interview on "Mad Money." "Also, consumer confidence showed a nice bump in March and new housing starts are up. We think that will drive more businesses to start up, and also drive business to add more employees."

Recent earnings also appear bullish, with Paychex thriving as more companies create jobs.

Specifically, Paychex said its fiscal third-quarter earnings rose 11% due to higher revenue in both the company's payroll and human resource services businesses. Paychex also raised its earnings outlook for the current fiscal year; it now expects earnings growth between 9% and 10%, up from its previous estimate of 8% to 9% growth.

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Looking at the numbers a little more closely, for the quarter ended Feb. 28, Paychex posted earnings of $160.1 million, or 44 cents a share, up from $144.5 million, or 40 cents a share, a year earlier.

Revenue jumped 7.3% to $636.5 million.

Analysts polled by Thomson Reuters had projected per-share earnings of 42 cents and revenue of $629 million.

"As the economy in the US recovers, I think this stock could have a lot more room to run," said Cramer. And if these metrics are to be believed, the economy is recovering.

Reuters contributed to this report

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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