Is 9-10% Unemployment the New Norm?

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Peter Cappelli, professor of Management at The Wharton School, says Americans have a tendency to accept unemployment rates as "normal" when they stay at the same level for a while.  In the 90s, for example, 4% became the accepted norm.  The "new normal" was 8% in 1981.  And now, we may be resigning ourselves to the idea that 9-10% is normal.  What is different now, Cappelli says, is there are more people who believe that "there is nothing that can be done" about high unemployment.  Here is Cappelli speaking about the current debate over what to do about unemployment today in a Knowledge@Wharton interview:


Posted 07-25-2010 5:52 PM by Graham Griffith
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