A New Approach… follow this blog post

posted by Luigi Lupo on July 23, 2009

Germany's may be on to something. The active labor market policy in Germany has been able to stabilize unemployment.  All the while unemployment in the rest of the global markets is still on the rise. 

Germany, which usually runs a higher unemployment rate than the United States, has been able to currently stabilize its labor market challenges - at least for the time being.  The German government has implemented a "short work" program that encourages employers not to lay off employees. If an employer's production falls by 10% or more, the government will pay the employer up to 67% of a worker's salary as long as the employer keeps the worker on payroll.

This innovative approach - although in its early stages show promise...

 

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•  Kathrin Schrickel

  1 point 3 months ago

  I am living and working in Germany and I have appreciated that the German government has encouraged companies lately to ask their workers what they prefer: about 20% of the employees dismissed or have the employees about one day a week at home without paying them. Most of the companies/employees decided they would rather want to stay at home and get a little less of their wage.

  The economy will be on the rise soon and then companies can quickly adjust to the needs and do not have to search for new employees who will not be productive for quite a while...

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•  Gregg Sprague

  1 point 3 months ago

  Another government entitlement is not the answer.  In the end they would just raise the taxes on the business they are "helping" to get the money back.  As soon as everyone realizes that the government does not have or make money to do these things they are doing (they take it from us) maybe they will quit standing in lines for handouts. 

  Getting government out of our businesses will help bring jobs back faster than anything else. 

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•  Thomas Gray

  1 point 3 months ago

  Or...

  We could all just go to work for the government and cut out the middleman.

  When the tax well runs dry we'll launch a global domination campaign that we will surely lose but then 50 years later when we have a new economy being reborn people will point to us and say what a great thing we have done.

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