There are two things here (1) A lot of people involuntarily dropped out of the workforce which not captured by simple unemployment rate (2) What's important is

There are two things here (1) A lot of people involuntarily dropped out of the workforce which not captured by simple unemployment rate (2) What's important is quality of jobs which is what you can buy with your income. We may have an abundance of food and LCD TVs at the moment -- goods that may have faced inflation before their production was less mechanized/automated but these efficiency gains have been more than eaten up by inflation in housing, education and healthcare which all are associated with competition for a scarce, less elastic, resource.