The U.S. jobs report on Friday announced a staggering 252,000 new hires, dropping the unemployment rate to 5.6 percent. Yet, despite the growth in the economy, the average hourly earnings decreased by 5 cents.
Jim Cramer is astounded by the decrease and warned investors to forget what they learned in economics 101. Throw out your textbooks, because high job growth and low wages just doesn't make sense.
The U.S has been creating jobs like crazy, and Cramer anticipates that the country will continue to do so. After all, America is the fastest growing economy in the developed world.
So, with jobs galore, how the heck did the average hourly earnings decrease by 5 cents?
"You can throw out pretty much everything you leaned at Econ 101 with this number, as wages should be increasing by at least that much as the labor pool gets tighter," the "Mad Money" host said.