Thanks to Doug Henwood for the table comparing OECD rates and the old U-7 rate, "which includes discouraged workers and one-half the unwilling part-timers." Doug says, >The moral - using the broader definition doesn't change much. I'm looking at the same chart and one thing I notice is that the ratio of U-7/U is higher for the US than for most other countries -- Japan, Mexico and Sweden being the major exceptions with Netherlands, Australia, New Zealand and Belgium having ratios close to the US ratio. I can't help but notice that high wage Germany, which seems to have a higher unemployment rate than the US under the OECD standard has a significantly *lower* rate under the U-7 standard. So, although the difference isn't monumental, I'm reluctant to agree with Doug that the broader standard "doesn't change much." Looking at the country by country figures for either rate would seem to undermine the argument that high European wages and high social benefits keep the Euro unemployment rate higher than the US rate. Would any one argue that Spain could reduce its unemployment rate by RAISING wages to the German level? After all, Germany's rate is 1/3 of Spain's. >UNEMPLOYMENT -- OFFICIAL AND EXPANDED DEFINITIONS, 1993 > > unemployment rate U-7 rate U-7/ > level % of US level % of US U >Australia 10.8% 156.5% 15.6% 152.9% 144.4% >Belgium 8.1% 117.4% 11.4% 111.8% 140.7% >Canada 11.3% 163.8% 14.8% 145.1% 131.0% >Denmark 10.8% 156.5% 14.7% 144.1% 136.1% >Finland 19.2% 278.3% 21.9% 214.7% 114.1% >France 11.4% 165.2% 14.0% 137.3% 122.8% >Germany 7.7% 111.6% 8.5% 83.3% 110.4% >Greece 9.6% 139.1% 11.4% 111.8% 118.8% >Ireland 15.3% 221.7% 17.4% 170.6% 113.7% >Italy 10.2% 147.8% 13.6% 133.3% 133.3% >Japan 2.6% 37.7% 5.7% 55.9% 219.2% >Mexico 2.6% 37.7% 6.4% 62.7% 246.2% >Netherlands 7.2% 104.3% 10.6% 103.9% 147.2% >New Zealand 9.6% 139.1% 13.6% 133.3% 141.7% >Norway 6.0% 87.0% 7.1% 69.6% 118.3% >Portugal 5.5% 79.7% 6.5% 63.7% 118.2% >Spain 22.4% 324.6% 23.1% 226.5% 103.1% >Sweden 5.3% 76.8% 10.2% 100.0% 192.5% >UK 10.3% 149.3% 12.5% 122.5% 121.4% >US 6.9% 100.0% 10.2% 100.0% 147.8% ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ "Only in mediocre art does life unfold as fate." -- Michael Ignatieff Tom Walker knoWWare Communications http://mindlink.net/knowware/
