G7 Economies Recover at Different Paces Due to Labor Market Flexibility Differences During Pandemic
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G7 economies recovering at varying paces due to differences in fiscal spending and labor market structure during pandemic.
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North American economies with flexible labor markets saw sharp but temporary spikes in unemployment rates.
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European G7 economies have more rigid labor markets so unemployment didn't spike as much.
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Flexible labor markets enable workers to transfer to more productive jobs, fueling economic recovery.
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Flexible markets benefit companies through easier hiring and workers through easier job searching.
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Korean government trying to increase labor flexibility but facing resistance over lacking social safety net.