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American employers rely heavily on layoffs to reduce the size of their work force during downturns. While layoffs are unavoidable in any competitive economy, they are far more common in the United States than in other industrialized countries. But can US workers be offered more secure employment without burdening the companies that employ them?.

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CHOICE Review

Unemployment in the US continues to be a serious political issue. Current policy debates over job growth and economic expansion focus heavily on the state's role in regulating labor markets. This informative study compares government strategies for stabilizing employment in Germany and the US. Generally, the authors conclude, German workers enjoy a much greater degree of job security than do their American counterparts. German law discourages mass layoffs of employees during economic downturns; employers rely instead on reduced hours, reassignment of employees, and voluntary separations. Conversely, the American unemployment insurance system offers employers positive incentives to dismiss workers and to increase working hours in response to business fluctuations. The authors reject the notion that the German approach results in higher comparable unemployment rates or lower productivity. In their words: "Our analysis of the German and US manufacturing sectors indicates that even stringent restrictions on layoffs have not had serious adverse effects on German business." The book concludes with a number of recommendations for strengthening US labor market policies and reducing American employers' preference for laying off employees to adjust to economic cycles. Advanced undergraduate through faculty. R. L. Hogler Colorado State University