Report
Patrick Artus

Has the trade-off between job protection on the one hand, and the level of employment and unemployment and purchasing power on the other, led to a more favourable situation in the United States or the euro zone?

The United States has much weaker job protection than the euro zone. Are the consequences in line with the intention? The unemployment rate is lower in the United States than in the euro zone, and the employment rate is higher; the rise in productivity is very strong in the United States, but not in the euro zone, so the rise in real wages is low in relation to productivity gains in the United States ; employee mobility is higher in the United States than in the euro zone, which allows productivity gains to be higher in the United States. All things considered , the level of job protection essentially corresponds to a trade-off between productivity gains and increased purchasing power for employees and employment, since the employment rate and productivity gains are high in the United States and the increase in real wages is low compared to what is observed in the euro zone.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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