Unemployment will settle at a higher rate. The economy is still falling and falling with no real short term end in sight. The effects of this tremendous collapse will be felt for years in the job market. At 9.4 percent and climbing, the unemployment rate is higher than its been in a quarter century. This follows the most unusual period from 1997 to 2007, when the annual rate averaged 4.9 percent. The new normal will be far, far higher. We better get used to 7 to 8 percent unemployment for many years to come. It may even stagnate at 10% for the next few years. The biggest question we have now is, "When will the economy stop falling?"