“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.”
Nonetheless, he expects job growth to be positive albeit “very sluggish” going forward.
Patrick O’Keefe, Director of Economic Research with consulting firm J.H. Cohn, agrees that job growth is simply not as robust as it should be and that unemployment will be higher than normal. He estimates that 65,000 positions were added in July and that the public sector will also continue to shrink as municipal governments cut workers.