But there are two sides to the story - supply (productivity), and demand (consumption, investment, exports, government spending).

If aggregate demand keeps up with productivity growth, you don't have an unemployment problem.

Part of the joint problems both the U.S. and European economy face is global industrial overcapacity -- productivity in the global economy is outrunning global demand.

In the U. S. this (along with political factors) shows up as a redistribution of income from wages to profits, slow-growing wages, and rising inequality. In Europe it shows up more as unemployment and insider/outsider problems.

That's why any left economic program has to have reform of international trade and financial institutions as part of it.