Later On

A blog written for those whose interests more or less match mine.

Europe’s Economy Was Hit Hard Too, But Jobs Didn’t Disappear As In The U.S.

leave a comment »

Jim Zarroli reports at NPR:

When the British economy ground to a halt a few weeks ago, Reda Maher suddenly found himself among the ranks of the unemployed, alongside untold millions of other people around the world.

But unlike many others, Maher can rest easy, knowing that money will keep flowing into his bank account until he’s called back to work.

“I woke up a couple of hours later than I normally would. I won’t lie,” Maher said one afternoon earlier this month. “I took a nice long masked and gloved walk. I’ve got a remote personal training like fitness session in about 20 minutes.”

The United Kingdom recently began paying 80% of the salaries of workers laid off because of the coronavirus pandemic. The government caps the pay at about $3,000 a month, but many employers, including the London-based video streaming service where Maher works, add to what the government hands out.

Maher also doesn’t need to worry about being left without health care coverage, thanks to Britain’s National Health Service.

Across Europe and in Canada, governments are easing the plight of workers idled because of the coronavirus pandemic by essentially paying part of their salaries, says Gabriel Zucman, a professor of economics at the University of California, Berkeley.

“What it means is that people remain on the books. … They keep receiving their salaries,” Zucman says. “And when social distancing ends, they will just return to work, as if they had been on a long, government-paid leave.” [similar, it strikes me, to the paid administrative leave a US police officer gets for shooting someone – LG]

It’s much more humane than in the United States, where some 26 million workers have lost their jobs over the past five weeks, Zucman says. Under the American system, workers are typically fired. They file for unemployment benefits and have to look for new work, he says. Many risk losing their health insurance benefits altogether.

Even if they are eventually rehired — and there’s no guarantee of that — the experience is brutal and anxiety-ridden, Zucman and fellow Berkeley economist Emmanuel Saez wrote in a recent op-ed in The New York Times.

The European systems are also less disruptive for businesses, who know that when the current crisis ends, they can simply call their employees back to work right away, picking up where they left off.

“It basically means we will survive and we will be able to keep the workforce on board. So that’s a pretty powerful tool actually for us,” says Alexander Kranki, who runs a software development company near Düsseldorf that employs 130 people.

Under Germany’s Kurzarbeit system, the government pays much of the salaries to laid-off workers for up to 12 months during economic crises. That means Kranki doesn’t have to worry that employees he’s recruited and trained over the years will defect to other companies.

In the United States, . . .

Continue reading.

Written by Leisureguy

23 April 2020 at 1:01 pm

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: