Gross job creation is probably greater in the US than elsewhere, although it is difficult to judge this from the data sources available. Gross job creation is generally independent of the business cycle, with much of the cyclical variability in net creation coming from the variation of gross job destruction with the output cycle. The US seems to perform better in upswings than the major European economies, with a more rapid decline in gross job destruction. Greater external flexibility enables an economy to deal with certain types of shocks. If industries and areas naturally rise and decline then greater mobility will aid adjustment.
Job turnover is greater, tenures are shorter, and regional mobility is significantly higher.
The chapter attempts to explain why the US exhibits greater external flexibility and, at least for regional mobility, it is clear that differences in housing markets are significant. The fourth chapter looks at the effect of institutions, particularly trade unions, social support safety nets, and job protection legislation, on the labour market. Institutions can affect the rate of job creation and the ability of the economy to respond to changing patterns of demand. This may explain why job turnover is greater in the US than in Europe, and why the US has a more flexible labour market. If these institutions affect the level of employment, then changes in them may also affect the rate of growth of employment.