European Job Creation in the Wake of Plant Closings and Layoffs

As industrial closings have resulted in massive layoffs, different approaches to worker relocation and job training have evolved in the US and Europe. The US response consists of limited employer aid and massive but insufficient federal funds for retraining. US firms could learn from the achievements and limitations of the nontraditional approaches to alleviating the problems of economic dislocation that have been undertaken by European corporations and governments. Efforts in the UK, France, and Italy to increase corporate jobs include: 1. corporate partnerships with local and regional governments and voluntary organizations, 2. the promotion of industrial diversification, 3. the provision of alternative employment for laid-off employees, and 4. assistance for small- and medium-sized new firms. Most of the job creating tools, including incubators and technical and financial assistance, already are in place in the US. US leaders must determine how to utilize these tools in ameliorating the effects of layoffs and shutdowns.