European unemployment rates – graphic of the day The euro zone unemployment rate was flat in August after easing in July for the first time in two years, showing the budding economic recovery was starting to have a positive impact on the labor market. Today’s graphic breaks down the unemployment rates for all the European countries.
But notice that the youth unemployment rate in Germany is 7.8 percent, and in Switzerland, it is 8.5 percent. In contrast, youth unemployment is 15.5 percent in the U.S., even though the U.S.’s minimum wage (using Purchasing Power Parities exchange rates) is below that of these Germany’s and Switzerland’s $10 and $9.20 an hour respectively. In other words, both have higher minimum wages, but much lower youth unemployment rates.
via Instapundit//This will explain why the official unemployment rate has fallen. It's not because of more jobs, it's because of demoralized potential workers have given up and left the work force entirely.