Unemployment in The U.S. is Higher than Europe, but There is a Catch


On the other hand, Canadian and American governments count citizens as unemployed the moment they stop working. This occurs even if the furlough is only temporary. The way statisticians count unemployment in the two groups explains the different rates in the two continents Europe and America.

The methodologies for counting and maintaining this information create stark differences in data reported. For instance, Australia’s unemployment rate was 6%. If counted the using the same formula as the U.S. then it would have been 12%. However, Australia’s GDP fell by 7% in the 2nd quarter of 2020 compared to the United States 34.4% plunge in GDP in the 2nd quarter of the same year.

No matter the way unemployment is counted, governments’ efforts to provide more jobs will follow conventions and measures. Unfortunately, Europe will be facing continued difficulty in ending the furlough schemes set up amid the Covid-19 pandemic.