Skip Navigation

Close and don't show again.

Your browser is out of date.

You may not get the full experience here on National Journal.

Please upgrade your browser to any of the following supported browsers:

Looking Overseas for Job-Creation Inspiration Looking Overseas for Job-Creation Inspiration

NEXT :
This ad will end in seconds
 
Close X

Not a member? Learn More »

Forget Your Password?

Don't have an account? Register »

Reveal Navigation
 

 

Economy

ECONOMY

Looking Overseas for Job-Creation Inspiration

+

German Chancellor Angela Merkel appear before the press French President Nichola Sarkozy.(Steffi Loos/dapd)

The U.S. job market has shown lackluster growth recently, to put it mildly.

The September employment report, released on Friday, revealed that nonfarm payrolls added just 103,000 jobs last month—not horrific, but still under the threshold economists say they need to cross in order to dent unemployment. The Senate is likely to vote on the job-creation proposals in President Obama’s $447 billion American Jobs Act this week, but the bill’s passage is a long shot.

 

(RELATED: Markets Close Up on News From Europe)

As they consider the legislation, lawmakers may want to reflect on their counterparts across the Atlantic.

(RELATED: Obama Calls for Decisive Action to Solve Eurozone Crisis)

 

While each economy faces unique obstacles to growth, fellow developed countries like Germany, Denmark, and France have implemented programs analogous to some found in Obama’s jobs bill with success. These include job-search programs accompanying unemployment benefits and stepped-up apprenticeship programs.

 

Unemployment in Europe

While each economy faces unique obstacles, some of the job-creation measures that have been deployed in Europe might be worth considering in the United States.

LOADING...
*Through August, Source: OECD

Other countries have developed programs not found in the president’s legislation, such as mechanisms to certify workers who have gained skills on the job rather than in the classroom.

 

Unemployment insurance programs vary widely from country to country. As of 2007, the most recent year for which data was available, the U.S. paid employees 13.6 percent of their previous earnings on average, compared with 24.7 percent in the Organization for Economic Co-operation and Development as a whole, which counts the U.S. and 33 other wealthy countries as members.

From National Journal:
PICTURES: Snapshots from America's Working Class


Huntsman Dismisses Mormon Controversy

PSA Tests Show Difficulty of Weighing Evidence

Cain and Ubeki-beki-stan

For GOP Candidates, a Weekend of Tightrope Walking

The U.S. also has short-lasting unemployment benefits compared with most of the other OECD members. By itself, this provides a “powerful incentive” for the unemployed to look for their next job, according to Gary Burtless, an economist at the Brookings Institution.

DON'T MISS TODAY'S TOP STORIES
Sign up form for the newsletter

But other OECD countries have deployed different incentives to get recipients of unemployment benefits back to work. Many low-paying jobs in the U.S. pay around the same as the benefits. Other countries have ensured work earnings are higher than unemployment benefits, incentivizing recipients to look for a job, according to Stefano Scarpetta, the OECD’s Deputy Director for Employment, Labour, and Social Affairs. 

DON'T MISS TODAY'S TOP STORIES

Sign up form for the newsletter
Comments
comments powered by Disqus
 
MORE NATIONAL JOURNAL