Ah, finally a thread where a linguist may relevantly contribute. 
There are two points to note: one of spelling and one of usage.
The spelling note is that the word is spelled Jew, not jew.
The usage note is (quoting from The American Heritage Dictionary):
The American Heritage Dictionary:Some people [...] have become so wary [...] that they have extended the stigma to any use of Jew as a noun, a practice that carries risks of its own. In a sentence such as There are now several Jews on the council, which is unobjectionable, the substitution of a circumlocution like Jewish people or persons of Jewish background may in itself cause offense for seeming to imply that Jew has a negative connotation when used as a noun.
From which it follows that, political correctness may sometimes inadvertently be every bit as offensive as the offence it tries to prevent! 