On average, unemployed U.S. citizens remain jobless for much less time than their European counterparts do. The relatively low level of unemployment in the United States is attributable to two factors: a social protection system that offers far less protection than those in Western Europe do and a broad range of job openings. The fact that employment growth in the United States has far exceeded that in Germany cannot be explained by superior economic growth. The recent employment growth in the United States has not resulted in an increase in national income; rather, the national income is being divided among more people. Average wages have stagnated, and the wage differential between the upper and lower income brackets has increased. Most growth in employment in the United States has been concentrated in the services sector, where income is often either low or well above average. Policymakers seeking to stimulate employment in Germany must not ignore the high costs of the recent positive employment trend in the United States: increasing wage disparities, social inequality, and high levels of poverty. General wage restraint, redistribution and greater flexibility of working hours, and (possibly) a negative income tax for low earners can also stimulate employment. (Contains 71 references.) (MN)