U.S. Job Creation Lackluster: Sterne Agee's Piegza

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May 15 (Bloomberg) –- Sterne Agee & Leach's Lindsey Piegza discusses the state of the U.S. economy and labor market with Mark Crumpton on Bloomberg Television's "Bottom Line." (Source: Bloomberg)

The u.s. economy is starting to gain momentum.

It is hard to make a clear-cut statement.

We are seeing one half of the labor equation continuing to perform -- continuing to improve.

We have not necessarily see that translate into the second part of the equation we have seen improvement as of late.

When we take back and look at employment on the longer-term average, we continue to seek lackluster job creation.

They're waiting to see a sustained pickup in consumer spending.

Is the caution warranted?

Are headwinds out there as far as you can see?

I think they are.

You have to look no further than the april sales report.

We did see a nice rebound in february and march, counteracting the disturbing 2013. but the rebound has been very short-lived.

The consumers have pulled back in april to a much more stagnant level.

Employers are very cautious right now to take on full-time employees.

Instead, they are supplementing with low cost weighed jerk -- workers which means temporary and part-time workers accounting for a big torsion that we have seen.

Wall street does not seem too impressed with the news.

Around midday the dow fell 200 points.

Now at 100 77. what has investors concerned.

Lex i think what the market is concerned about is the position between the strength and week mess in the very same report.

Look at the employment report as of late.

The headline number was quite impressive him up 200 88 thousand.

The gain was offset by 800,000 dropping out of the labor force.

We continue to see this position where investors can cherry pick the data and find plenty of reasons to be optimistic, but in the very same report we point to a plethora of indicators that suggest a lack of momentum or support the pessimistic view of the market.

How concerned are you about the labor force participation rate?

I am very concerned.

I think this concern throw the committee members decision to move away from the target of 6.5% on the unemployment rate to a more qualitative broad-based assessment of the labor market.

Janet yellen attempt -- championing the idea that not just the unemployment rate determines the health of the labor market but we need to look at the participation rate.

Average hourly earnings rate, which are stagnant and the participation rate, which has followed to a three decade low.

All of the indicators suggest much less improvement than the market decline in the unemployment rate.

Lex what -- what will fed policymakers make of the latest data?

I think the fed is very comfortable in the accommodative stance and will air on the side of caution.

Airing on the side of waiting and making sure the expert nation of further growth comes to fruition before changing monetary policy and expectation of further growth.

Meaning the fed is much more likely to wait until the end of 2016 to begin to raise rates.

Chief economist at stern agee joining us from nashville,

This text has been automatically generated. It may not be 100% accurate.

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