Could Be Worse: We Could Have EU's Jobless Rate
BRUSSELS, Belgium: Unemployment in the 13 nations that use the euro fell to a new record low of 7.2% in October, the EU statistics agency Eurostat said Monday, as Europe's recent growth spurt cut jobseeker queues that are the longest in the industrialized world.
The difference between the EU and USA?
In Europe, a 7.2% jobless rate is celebrated as an historical record low (see chart above).
In the U.S., a 6.0% unemployment rate in 2003 was condemned and criticized as a "jobless recovery" during the economic expansion that started at the end of 2001.
Bottom Line: In terms of unemployment rates, the U.S. economy, even during its worst years of recessionary labor market conditions like 2001-2003, is still better than the European economy during its best years.
The difference between the EU and USA?
In Europe, a 7.2% jobless rate is celebrated as an historical record low (see chart above).
In the U.S., a 6.0% unemployment rate in 2003 was condemned and criticized as a "jobless recovery" during the economic expansion that started at the end of 2001.
Bottom Line: In terms of unemployment rates, the U.S. economy, even during its worst years of recessionary labor market conditions like 2001-2003, is still better than the European economy during its best years.
Update: Some comments have suggested that unemployment rates are calculated differently in the U.S. and Europe, making a comparison misleading or invalid. Comparing the official German unemployment rates from EUROSTAT and the adjusted German unemployment rates from the BLS "approximating U.S. concepts," I agree that there might be a difference. But the official German jobless rates are actually LOWER than the rates adjusted to U.S. standards.
For example, the official rates for German unemployment from April-August 2007 are 8.5%, 8.5%, 8.4%, 8.4% and 8.3%, and the adjusted rates approximating U.S. concepts for the same months are 9.0%, 9.0%, 8.9%, 8.8% and 8.7%.
In other words, the German unemployment rates adjusted according to BLS standards are almost .50% HIGHER than the official rates. If that is the case for the rest of EU contries, the adjusted jobless rate for the EU might actually be higher than the official rate of 7.2%.
14 Comments:
Even though the method of measurement is completely different thus making any comparison nefarious.
"Could Be Better: We Could Have Denmark's Jobless Rate AND Socialized Medicine"
Denmark not a part of the EU has a jobless rate of 2.9% that is 40% lower than the U.S. jobless rate of 4.7%.
The Netherlands, part of the EU, has a jobless rate of 3.1%.
What you fail to mention Dr. Mark is that the EU while has a higher jobless rate overall it is not a country and is comprised of 27 nations.
Additionally the EU is a newborn economy compared to the U.S. so while I expect progress to be made I don't expect instant progress.
Let us revisit the jobless rates in June of 2008 and again in April of 2009. The significant events we have coming up are a peak in sub-prime mortgages reseting to higher rates and the aftermath of the U.S. federal election when the Democrats find out just how bad the books really are.
Besides if the U.S. had drug laws that were similar to the EU's we could conceivably see a jobless rate a full percent higher. We wouldn't be locking up a million or so people for non violent drug offenses. As a result the human infrastructure necessary to contain these so-called criminals would not be required and could be laid off.
The unemployment rate is manipulated differently - this is an apples to oranges comparison.
anonymous 10:44
If you had bothered to read the article, you would have seen the following:
Unemployment in the 13 nations that use the euro fell to a new record low of 7.2 percent in October, the EU statistics agency Eurostat said Monday, as Europe's recent growth spurt cut jobseeker queues that are the longest in the industrialized world.
The seasonally adjusted jobless rate across the entire 27-nation European Union held steady from September at 7 percent.
The 7.2% unemployment rate is for 13 very old economies.
The U.S. state of Alabama, not a part of the EU, had a jobless rate of 3.1% in October.
It does not have socialized medicine.
Why is it that so many people want the government to take care of them?
Easy Money,
Dr. Mark's post used the following sentence "The difference between the EU and USA?"
Look at the title of this post "Could Be Worse: We Could Have EU's Jobless Rate"
We are discussing the 27 countries of the European Union not the 13 countries that use the Euro.
Additionally actual jobless rate of the EU is 7.0% not 7.2%. "The seasonally adjusted jobless rate across the entire 27-nation European Union held steady from September at 7 percent."
The countries are old but would you call the economy of Poland old after the transformations it has gone through and is going through?
The economies of all 27 members of the EU have to change to be part of the EU. So they are completely different than pre-EU days.
The EU is a new economy compared to the U.S.
2007 unemployment rates of more non-EU, no-socialized-medicine states:
New Mexico: 3.1%, October
Texas: 4.1%, October
Louisiana: 3.3%, October
Arizona: 3.3%, September
Idaho: 2.3%, September
Since it's Christmas time, and the U.S. government can afford to buy us all what we want, here's what I want the U.S. government to buy for me:
1. A new car.
2. A new home.
3. A vacation home.
4. A big-screen t.v.
5. An Ipod.
6. A new Apple phone.
7. A laptop computer.
After all, why stop at health care?
And the best part: It's all free!
The Netherlands with a 3.1% jobless rate and socialized medicine has a GDP per capita of $32,100 while Alabama with it's 3.1% jobless rate NO SOCIALIZED MEDICINE has a GDP per capita GDP of $29,697.
Remember this isn't free health care it is paid for by taxation.
Easymoney have you bothered to investigate how the jobless rates are arrived at in the U.S. vs the EU?
They use completely different methods and so no direct comparison is possible using the government approved published unemployment rates.
In the U.S. our unemployment rate seems to depend on how many people are arbitrarily determined to be looking for jobs or not.
This means that even though the economy might lose 233,000 jobs and create only 32,000 new jobs in the same period that the unemployment rate can go down.
This is because the government said that 250,000 people have been reclassified as not being unemployed because (for some mysterious reason) they have dropped out of the job market.
Anyone who doesn't believe that interested parties might influence the outcome of published jobless rates should be in Iraq searching diligently for Weapons of Mass Destruction.
Since we can't trust the government to produce reliable economic data, why should I trust them to produce reliable health care?
Do you honestly believe that interested parties might NOT influence the outcome of published health care statistics?
You won't trust them with data but you will trust them with your life?
In the U.S. the employment-population ratio is 62.7 percent.
http://www.bls.gov/news.release/empsit.nr0.htm
In the EU the employment-population ratio is 64.4 percent.
http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1996,39140985&_dad=portal&_schema=PORTAL&screen=detailref&language=en&product=STRIND_EMPLOI&root=STRIND_EMPLOI/emploi/em011
We are amazing here in the U.S.
We have fewer people working percentage wise and lower unemployment rates!
And now for our next trick...
> You won't trust them with data but you will trust them with your life?
Hey, mannnnnn, don't, like, try to confuse the issue by, like, bringin' logic into it, man!!!
Bummer...
Now my buzz is all gone.
:oP
.
Is really they lost their job in Eu Countries?Or working illegal and geting social benifit from government.million of illegal worker are working non stop working in 13 Eu countries but why original people are loss their job?Because many of owner are like to use illegal workers.Why?
1-they don't need to pay text
2-they are using as a force labour
3-many of accountants are protestion
their coustermer and destroyied government mony and they are becoming rich and rich.
normally few thousand os accountant company are involving more than 20 billion black money.
how can we stop that?
very easy but we need good traning for controller.
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