Incentives provided to employers to hold on to staff during the global downturn may partly explain the significant differences between jobs lost between countries.

This is according to an article for the Financial Times by Daniel Pimlott, in which he explains that the recession resulted in differing unemployment rates and job losses and the reasons behind this are important to nations looking at ways to protect employees in the event of another downturn.

"In the US, unemployment is close to its postwar high. In Germany, it is at its lowest since the early 1990s," he claims, stating that not all the differences can be attributed to varying levels of economic contraction.

Mr Pimlott points to recent analysis by the International Monetary Fund (IMF) indicating that certain factors such as labor market incentives for manufacturers to continue employing staff in Germany have helped to protect jobs, in addition to variations in the amount demand has dropped between nations, in particular in the finance and housing sectors.

The article adds that discrepancies between skills and positions available have also pushed up unemployment in some countries.

In related news, the IMF called in a recent statement for greater reform of the global financial system to ensure it is sustainable and supportive of economic growth.

Posted by Lee Thrace