The "normal peak" in unemployment is 15 to 18 months after the end of major recessions. Before long, we will get the official notice that this recession ended at the end of June. So, we have about 12 more months of greater job losses than job gains. This is not a nice problem to face, but let's not engage in "economic pornography", let's not make the problem bigger than it really is.
We are in the middle of a great readjustment. Manufacturing jobs, now less than 10% of all American jobs, are going to continue to "go away" and to never come back. This is a good thing not a bad thing. In the past, had we been successful in holding back the hands of time, there would still be millions of Americans grubbing the earth with hoes and spreading animal manure on farm land.
Yes, new jobs are being created. The new jobs range from authors to research scientists, sales representatives to data line installers. Yes, unemployment insurance must ultimately be allowed to expire. Germany got itself into a heck of a bind when it allowed unemployment insurance to run 5 years and more. Many people need a little incentive to get serious about accepting a new line of work. The brick layer may not be able to make as much loading trucks as he once made laying bricks, but it may take another couple of years before there is much demand for brick layers.
"The jobless claims report shows businesses are still laying off workers at a rapid rate, and finding a replacement job is extremely difficult for those who've lost work. The unemployment rate rose to a 26-year high of 9.8% in September."
- Initial jobless claims drop to 521,000, off 33,000 - MarketWatch (view on Google Sidewiki)