×

People going back to work is part of market's 'animal spirits,' Cramer says

The closely watched labor force participation rate edged higher in February thanks to a new spark in consumer confidence, CNBC's Jim Cramer said on Friday.

"I think people coming back to the labor force is really important because we've been absent. I think that is part of the animal spirits," Cramer said on "Squawk on the Street."

The term "animal spirits" was used by economist John Maynard Keynes to describe how human emotion drives consumer confidence.

On Friday, the Bureau of Labor Statistics reported nonfarm payrolls increased by 235,000 jobs in February, as the construction sector recorded its largest gain in nearly 10 years. The labor force participation rate hit 63 percent, its best showing since March 2016.

The jobs report covers the first full month of President Donald Trump's term. Federal Reserve Chair Janet Yellen signaled last week that the central bank would likely hike rates at its March 14-15 policy meeting. Job gains have averaged 209,000 per month over the past three months.

U.S. stocks opened higher on Friday after the stronger-than-expected report.

Watch: The Trump rally comes down to one key phrase

—CNBC's Jeff Cox and Reuters contributed to this report.