Germany's economy is among the most troubled in the European Union, yet unemployment has so far risen only modestly. Why the sturdy labor market? In recent years, Berlin has rejiggered benefits and other programs to help ensure jobs don't go unfilled just because there's no one around with the right skills.
The progress may offer lessons for the US. Germany's experience suggests that generous unemployment benefits can make it too comfortable for an out-of-work welder to spend the day watching "Desperate Housewives" reruns rather than learning a new trade, so it helps to establish limits. But without incentives, companies are less likely to offer retraining -- and workers may not see the benefit of trying something new.
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