Economics
Europe’s Aversion to Hiring-and-Firing Suddenly Seems Smart Idea
- U.S. may see spike in jobless that Europe will avoid
- Virus pandemic has led to lockdowns across the continent
Photographer: Kena Betancur/AFP via Getty Images
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Continental Europe’s labor-market model is experiencing rare praise from economists because it may help prevent massive job losses during the coronavirus pandemic.
While widespread layoffs are feared in the U.S., analysts don’t expect the same fallout in euro-area employment, where rules often make it harder for companies to fire workers, and also encourage their retention during a crisis. Such regulations are sometimes cited as a brake on growth, but the outbreak is suddenly revealing their virtues.