Many economists consider an unemployment rate of between 3% and 4% to be "full employment." I live in San Diego and I have seen "help wanted" signs stay up for a month.
San Diego County Unemployment Rate Nearly Unchanged in February
03-24-2006 (San Diego, CA) -- San Diego County's unemployment rate was barely changed last month, at 4.1 percent, from 4 percent even in January, but considerably below the 4.7 percent rate in February last year. The California Department of Employment Development says the statewide jobless rate was 5.5 percent, while the rate nationally was 5.1 percent. In San Diego, gains in government jobs were offset by post Christmas layoffs in the retail trade sector of the local economy. San Diego County added a total of 26,500 jobs over the past 12 months, with the largest increase -- 7400 jobs -- in the leisure and hospitality segments. The construction industry added 6100 jobs.
No one on welfare would take a $10/hr job, they would lose over 2/3 of their income!