Walter Hinteler wrote:georgeob1 wrote:So far I don't see any material difference in the definition of the unemployed that you have described, compared to the definition used in the USA.
I'd always thought that the time factor was one of those.
Thanks for clearing that, George.
Same here re: believing the time factor to be an issue. I was one of those who, as
this useful page has it, erroneously believed "that to get these figures on unemployment the [US] Government uses the number of persons filing claims for unemployment insurance (UI) benefits under State or Federal Government programs." Since those benefits are time-limited in a way European benefits are not, that would introduce a huge discrepancy.
However, I am also indebted to Walter here. Because he pointed out how significant a discrepancy - a "material difference", I'd say - there nonetheless remains between the German definition/registration, as example, and the American one. One that would lower German unemployment rates by 1-2%:
Walter Hinteler wrote:In 2004, Germany's unemployment rate using the U.S. measure would have been just under 9.0 percent, with the bulk of the unemployment concentrated in former East Germany. The area that used to West Germany would have an unemployment rate somewhat over 6.0 percent using the U.S. measure, not very different from the current unemployment rate in the United States.
Source
Here my point re-emerges in its most basic appearance. I mean: if West-German unemployment, when using identical criteria, is a mere percentage point higher than US unemployment, what does that then say about the purported failure of the "Old Europe" economic model compared to the purportedly vibrant US model? Since the old West-Germany was pretty much the poster child for the welfare-state-type 'social market economy', and unemployment is generally used as one of the most definining evidences of the failure of that system?
And to take up Thomas's suggestion, the West-German jobs are likely better-paid jobs as well...
I'm guessing Holland's unemployment rate is calculated much the way it is in Germany, rather than how it's done in America - what with EU convergence in definitions and so on. That would mean that since in the Netherlands, the official unemployment rate is
already just at 6-7%, if applying the US definition/calculation would take it down like it does the German one, it'd end up pretty much on par with America's 5%-rate. Despite Holland's obviously more social-democratic economic order.
Again, what does that mean for the use of comparative unemployment rates as evidence for the purported superiority of the US model?