(Essay 4) Discuss how Europe’s unemployment can be explained in terms of job creation problems
- Employers believe wages are too high:
- § Companies do not wish to create jobs if a worker’s ware is higher thanthe revenue he or she would generate
- § Wages are high because of unions
- § Businesses also have to pay high employer taxes per employee to fund social welfare plans
- Firing restrictions:
- § Reluctant to hire if they can’t fire
- More difficult to create service sector jobs:
- § Restrictions on store hours
- § Restrictions on self employment