Essentially the economy is not creating jobs at a rate that would significantly reduce unemployment. According to a report from The Christian Science Monitor:
““The economy is moving forward but going nowhere really fast,” says Mark Zandi, chief economist at Moody’s Analytics in West Chester, Pa. “It’s frustrating.”
Economists say the less-than-dynamic job market probably means that the Federal Reserve is not likely to taper off its monthly buying of securities, which has helped to buoy the housing market. On Friday, the stock market rallied sharply as traders assessed the jobs numbers with the Fed in mind. The Dow Jones Industrial Average was up 170 points to 15210 by midday.
“The rising unemployment rate makes a huge difference to the Fed,” says John Silvia, chief economist at the Wells Fargo Economics Group in Charlotte, N.C. “The Fed is not going to be tapering anything off in June.”
Behind the lackluster job growth is an economy that has several forces acting on it. Businesses, which had ramped up inventories earlier in the year, are now reducing inventories. This is a negative on economic growth, points out Dan Meckstroth, chief economist at the Manufacturers Alliance for Productivity and Innovation (MAPI) in Arlington, Va.”
Despite the stagnant job growth, there are some glimmers of hope for Latinos. In California, Latinos are the fastest growing group of business owners, and the construction of new homes is up, which is sector where Latinos have been employed.