Unemployment during the downturn

Underworked

Jun 22nd 2009
From Economist.com

Where unemployment has hit hardest

The world economy’s deepest post-war slump has resulted in higher rates of unemployment in many countries. Spain’s jobless rate has increased by more than 8 percentage points in the past 12 months, much of it attributable to a collapse in the construction industry. The country’s unemployment rate is now the highest in the rich world at 18.1%. The situation is also dire in Russia, where a 4.2 percentage-point rise has left more than one in ten out of work. America’s jobless rate has risen by almost 4 percentage points. The increase in unemployment has been modest so far in Germany, where it is costly to fire workers.

http://www.economist.com/research/articlesBySubject/displaystory.cfm?subjectid=7933596&story_id=13891187

Labour costs

You’re fired

Sep 16th 2008
From Economist.com

What it costs to sack a worker

AFTER years of fat profits and bonuses, cost-cutting is once again at the top of the corporate agenda. For companies wanting to chop out middle-management dead wood or sack factory workers, costs can vary enormously across the world. America, New Zealand and Tonga are among the most company-friendly countries, requiring no penalties or compensation to fire a full-time employee of 20 years. By contrast, a business in Zimbabwe must shell out well over eight years’ worth of pay to sack a worker. But companies in Venezuela and Bolivia are even more tied—workers there cannot be fired at all.

http://www.economist.com/research/articlesBySubject/displaystory.cfm?subjectid=7933596&story_id=12209771