Jobs

Cramer says 'the bond market was right' about Friday's jobs report

Key Points
  • "The bond market has been signaling that this is going to happen," Jim Cramer says.
  • On Friday, the Labor Department said job creation fell sharply in May.
Bond market was right about jobs: Cramer
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Bond market was right about jobs: Cramer

The "bond market was right" about May's disappointing jobs report, CNBC's Jim Cramer said Friday.

Cramer spoke after the Labor Department said job creation fell sharply in May with just 138,000 new positions, well below the 185,000 economists expected according to Thomson Reuters. The unemployment rate decreased to 4.3 percent from 4.4 percent.

"The bond market has been signaling that this is going to happen — we're not going to have the jobs growth," Cramer said on "Squawk on the Street." "The bond market was right. It's hard to quibble with the bond market."

Bond yields were lower before the release of the closely watched monthly employment report. The benchmark 10-year yield was down at around 2.20 percent Friday morning. It extended losses after the report.

Cramer said despite the employment number not being as robust as expected, recent corporate earnings have mitigated what the bond market is saying.

"The stock market is very small, obviously, versus the bond market," he said. "But there is money being made. And there is plenty being made if you don't pay attention to the slight decline in the job market."

— CNBC's Fred Imbert contributed to this report.