The US has fallen behind other major countries in terms of giving back jobs lost during last year’s global recession, said a Wall Street Journal report on Saturday.
An analysis done by Wall Street Journal showing employment rates in 11 countries revealed that job restoration lies mostly in the ability to manage debt burdens and maintain a healthy banking system, two areas the US isn’t particularly good at.
According to information released by the International Labor Organization and the Organization for Economic Cooperation and Development, Chile and Brazil, two countries who have not gone through crises in the banking industry, posted the biggest job rate growth since the start of the recession.
In April, Job rates in Chile have risen by 6.8 percent while Brazil noted a 4.5 percent increase in employment.
It is believed that the two countries’ proximity to developing Asian countries has bolstered their respective Job Growth percentages. Australia was able to increase its employment rate by 3.7 in May due to the country’s commodity trade with Asian countries who were unaffected by the recession.
Contrary to other countries included in the analysis, the us employment decreased by 4.8 percent in June from December 2007. Businesses remain hesitant to hire due to difficulties in securing loans from banks who were dragged down by the recession. Job recall has also been delayed due to worries that US consumers might not have the capacity to pay off large debt loads.
US household debt was at a staggering 122 percent of income after tax, higher than the 100 percent economic analysts see as acceptable.
