“This is the first cycle where companies have used capital instead of labor during the recovery,” Wien tells CNBC.
“And the capital spending is good, but it is being used not to build new plants where you hire workers to fill them. It’s been used to buy equipment that allows you to get goods and services out the door with fewer workers,” he says.
“That’s the big change, and that’s probably not going to be altered. Usually when we have 5 percent unemployment in a boom and it goes to 10 percent in a recession and then it goes back to 5 percent. It’s not going back to 5 percent. We may not see 5 percent again. We may see 7 percent or some number in the sevens at best.”
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