The labour market works better in the euro zone than in the United States

It is traditionally thought that the labour market works better in the United States than in the euro zone, thanks to more flexible wages and weaker job protection in the United States. The unemployment rate is not a pertinent indicator of the situation of the labour market, because it is skewed by the withdrawal of people from the labour market and by unemployment benefit rules. When we compare: The employment rate and the participation rate; Inequality and poverty, we see that in reality, the labour market works better in the euro zone than in the United States. This may be due to: A decline in the geographical mobility of Americans; Concentration in the labour market; The larger loss of human capital in recessions in the United States than in the euro zone. The fact that the u nfavourable income distribution for wage earners in the United States does not have the flipside of a high employment rate shows the inefficiency of the situation in the United States.