TODAY   |  October 05, 2012

What does jobs report reveal about economy?

With the release of September's jobs numbers this morning, CNBC’s Jim Cramer discusses what it means for the economy and explains where the signs of strength are coming from.

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This content comes from Closed Captioning that was broadcast along with this program.

>> both campaigns are waited with bated breath for the new jobs report, coming out this morning, a key indicator of where the economy is. cramer is host of cnbc's " mad money ."

>> good morning, dave.

>> what do we expect, more anemic growth like we saw last month?

>> yes. i don't expect a lot of jobs to be created. a lot of industries aren't hiring.

>> why not? why is there still a lack of demand in the economy in.

>> two reasons, one is that washington has this fiscal cliff. people are worried that the two parties can't come together. second, europe very weak and a lot of big manufacturers do export. don't have a lot of good business there.

>> you hear so much, get to the fiscal cliff in a minute. still, the idea of the animal spirits , both on wall street and in corporate america being restrained. what are those spirits and why is that still the case? is it uncertainty about the election outcome in.

>> yes, it really does matter. a lot of companies are happy to stockpile their cash. they have got big profits. they don't feel like expanding. why not wait a few months. why not hire now. hire in january.

>> also interesting you have a lot of corporations acting like their own banks, right, simply holding on to cash because they are worried about the banking sector still.

>> i think that most companies these days want to be self-financed. raised a lot of money. they have gone and issued bonds at a very low rate. they don't need to hire. they can just keep the cash.

>> what's healthy right now, healthy sectors where you see growth?

>> healthiest autos. a remarkable number of autos being sold, almost a boom. some strength in retail, health care . those are all hiring.

>> when we look at the jobs numbers and see the unemployment rate maybe being static, maybe ticking up, what's a jobs number that you look at that would be a sign of a healthier economy of more remand?

>> we need to see under 8% unemployment, need to see north of 120,000 jobs created. we'll know at 8:30. those are both stretch numbers. that would really help the president. i don't know if he can get him.

>> talked about the fiscal cliff a minute ago. this is the end of the year, all these issues being kicked down the road here by congress and by the white house , so you have automatic spending cuts that would come into place. both wall street and i would imagine corporate america are deeply concerned about what the impact of that would be.

>> when you speak to chief executive officers , i do a lot of that, they all say it. it's their excuse. now, maybe some of them should be hiring. everyone says listen, it's washington's fault. you've got to remove that roadblock.

>> stock market through all of this has been performing very well, why?

>> nothing to do with the country or unemployment. the stock market is doing well because the companies have a lot of cash. they are redistributing. they have got some prospects that maybe next year will be better, but right now they are doing better by not hiring instead of hiring.

>> jim cramer , thanks so much. more on the jobs report tonight on " mad money " at 6:00 and 11:00 eastern on cnbc. i'll talk about the impact on the presidential race sunday on "meet the press." newt gingrich joins me and also my interview with arnold