Employment policy: Passing the stress test
Employment policies worldwide are under severe stress to weather the impact of the global economic downturn, warranting government intervention through effective policies. The Organization for Economic Co-operation and Development (OECD) study reveals that 28 countries surveyed have undertaken numerous initiatives to fill the gaps in the safety net for job losers and consolidate the assistance to assist the unemployed in finding new jobs. These countries have strengthened unemployment benefits or other forms of income support available to unemployed. Greece and Poland have raised the level of unemployment benefits paid, while Canada, Japan, and Portugal have expanded the maximum period during which benefits can be paid, with Finland and the US having opted to do both. The success of these policies will depend on the crisis and the effectiveness of other policies to end it. The OECD is coordinating closely with governments to watch changes in labor market conditions.