The unemployment rate is an unrealistic measure of the labor force.
The best measure is the labor participation rate, which measures the percentage of the total population working and is available from the Bureau Labor Statistics. It is currently at a low rate, indicating there is in fact slack in the labor market. This adds to the lack of upward pressure on wages because employers can say to new hires "we can find somebody else" to do the job.
America must continually develop the next wave of high-paying jobs. By developing the next big-thing, US jobs will be somewhat insulated from offshoring because of the degree of sophistication involved.
However, the US must also continually develop the next wave of whatever. It's a never-ending task.
I appreciate your desire to quote Larry Kudlow's flawed logic.
1.) Under Bush the US has lost 2.5 million manufacturing jobs that pay an average of $17/hour and replaced them with service jobs that pay $9-12/hour.
2.) Real Wages are stagnant and have been for about three years (see chart on the front page of www.angrybear.com)
3.) As a result of stagnant wages, consumers have gone into debt to maintain their standard of living. Hence, the 19% compound annual increase in mortage debt from 400-800 billion dollars.
4.) The labor participation rate is still down from Bush's first term. In January 2000 it stood at 67.3 and is currently at 66.1. This statistic indicates the percentage of workers of the total civilian workforce is lower now than it was when Bush took office.