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Despite economic growth, unemployment has been high in Western Europe for the past 15 years compared to both the United States and to Europe's own employment rates following World War II.
Among the causes of Europe's persistent unemployment are overly generous welfare state benefits, the high marginal cost of employing each additional worker and the power of unions. To reduce unemployment, critics recommend:
Researchers have found that large-scale government training programs for unemployed workers don't significantly increase the rate at which they find jobs, because there isn't a shortage of skilled, experienced workers. However, programs such as Restart in the United Kingdom, which gives job-search and placement assistance, are successful because the jobs unemployed workers are most likely to fill depend more on motivation and personal skills than training. Source: J.R. Shackleton, editor, "Symposium: Labor Markets," Economic Affairs, Spring 1996, Institute for Economic Affairs, 2 Lord North Street, London SW1P 3LB, U.K., (0171) 799-3745. |
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