"Had anyone here ever seen "discouraged workers" mentioned in connection to unemployment figures prior to this past year? "

Yes, I believe I have. During growth of economy during Clinton's first term, there was much of same question regarding unemployment- and the rich keep on getting richer, etc. But I don't recall anyone trying to attach a percentage to this "discouraged workers".

As far as the "problem" goes. I think the Fed described it pretty good [a few month ago]. Coming off the bubble, companies shed jobs. This is typical. But because of the increased productivity due to technology, when economy recovered, jobs trailed because the increase in capacity needs was met with less workforce.

Therefore what we have now, is a "lean, mean fighting machine", which is what you need for a new bull market. I imagine what you are going to have upward pressure for higher wages- because despite what the Dems are saying this is a tight labor market at least in certain job sectors. But I don't neccesarily think this will especially mean that your traditional labor unions are going to benefit from this upward pressure because these aren't the sectors which have tight labor markets. But average non union wages should rise significantly and union wages may rise somewhat as economy picks up further.