‘New Normal’ of 6-7% US Jobless Rate: Get Used To It

The jobless rate in the United States will never go back to where it was before the global financial crisis and people will have to get used to a “new normal” of 6-7 percent even if the economy starts revving up from where it is now, observers tell CNBC.

As the U.S. government prepares to release nonfarm payroll numbers for July on Friday, economists expect about 100,000 jobs created during the month and the unemployment rate   to remain steady at 8.2 percent. 80,000 positions were added in June.

However, some investors say the consensus is too optimistic and higher structural unemployment is here to stay.  “We really have a fundamental change in the workforce,” Michael Yoshikami, Founder and CEO of Destination Wealth Management told CNBC Asia’s “Squawk Box” on Friday.  “We should have realized that the unemployment rate is simply not going to go back where it was and we should start realizing that there is a new normal and the real unemployment rate in the United States will be 6-7 percent, where the recovery is in full steam, rather than 4 percent….”

Get the whole story at http://www.cnbc.com/id/48476500